National Fuel Gas Company completed a private placement of common stock on December 15, 2025, raising $350 million in gross proceeds from the sale of approximately 4.4 million shares at $79.50 each. The placement is intended to finance a portion of the company’s $2.62 billion acquisition of CenterPoint’s Ohio regulated gas utility business, a move that will double National Fuel’s regulated rate base and add more than 500,000 customers in a gas‑supportive state.
The Ohio acquisition is a key element of National Fuel’s strategy to expand its regulated utility footprint. By adding CenterPoint’s Ohio operations, the company will broaden its geographic reach, diversify its customer base, and increase its exposure to stable, regulated earnings. The deal also aligns with the company’s goal of recycling upstream free cash flow into regulated assets, thereby improving long‑term cash‑flow stability.
National Fuel’s most recent quarterly results provide context for the financing. In the fourth quarter of fiscal 2025, the company reported adjusted earnings per share of $1.22, beating the consensus estimate of $1.08 by $0.14 (12.9%). Revenue for the quarter was $456.4 million, missing the consensus estimate of $517.6 million. Operating margins remained strong at 41.9%, and the company’s net margin was 22.8%. The company’s investment‑grade credit rating was affirmed at BBB‑ with a stable outlook by S&P in October 2025, underscoring its ability to support the acquisition without compromising credit quality.
President and CEO David P. Bauer emphasized the strategic fit of the Ohio acquisition and the role of the private placement. “Our acquisition of CNP Ohio aligns with National Fuel’s strategic objective to increase the scale of our regulated operations through the addition of high‑quality assets in a favorable regulatory and political jurisdiction,” Bauer said. “Reinvesting free cash flow from our integrated upstream and gathering operations into regulated growth is a great opportunity to enhance the long‑term outlook for regulated earnings.”
The private placement strengthens National Fuel’s balance sheet and preserves its investment‑grade rating, allowing the company to pursue the Ohio acquisition while maintaining access to low‑cost debt. The financing also signals confidence in the company’s ability to generate sufficient cash flow from its upstream and gathering segments to support the acquisition and future growth initiatives. By expanding its regulated utility portfolio, National Fuel positions itself to benefit from stable, long‑term revenue streams and to balance the cyclical nature of its upstream operations.
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