IOG Resources II announced the acquisition of producing gas assets from Seneca Resources, an affiliate of National Fuel Gas, adding roughly 19 million cubic feet per day of net production. The assets are located in Clearfield, Elk, and McKean counties in Pennsylvania and represent IOG Resources II’s seventh investment and the nineteenth for the broader IOG Resources platform.
Seneca Resources is divesting non‑operated wellbores to concentrate on its core production portfolio and to generate capital that can be redeployed into higher‑return projects. For National Fuel Gas, the sale streamlines operations and expands its production base, positioning the company to better weather commodity price swings. IOG Resources II, backed by First Reserve, continues its focus on acquiring high‑return, non‑operated assets in the Appalachian Basin, reinforcing its strategy of building a diversified shale play portfolio.
While the financial terms of the transaction were not disclosed, the addition of 19 million cubic feet per day is expected to lift National Fuel Gas’s overall output and cash flow. The company’s Q4 2025 earnings report, released on November 5, showed an adjusted EPS of $1.22, beating the consensus estimate of $1.18. Management attributed the earnings beat to higher natural‑gas prices, disciplined operating costs, and the incremental production from assets like those acquired from Seneca.
The acquisition aligns with National Fuel Gas’s recent guidance, which projects a fiscal 2025 adjusted EPS range of $6.80 to $6.95 and a fiscal 2026 range of $7.60 to $8.10. By adding non‑operated assets, the company strengthens its resilience and supports the upward trajectory of its guidance, while IOG Resources II’s continued investment in the Appalachian Basin signals confidence in the region’s long‑term growth prospects.
The transaction reflects broader consolidation trends in the Appalachian Basin, where companies are seeking to acquire non‑operated assets to enhance scale and operational leverage. For IOG Resources II, the deal adds a mature, producing asset base that can generate immediate cash flow and support future acquisitions. For National Fuel Gas, the divestiture frees capital and focus for core operations, reinforcing its strategy of delivering consistent production growth and shareholder value.
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