National Fuel to Separately Spin Off Appalachian Upstream and Gathering Units

The board of National Fuel Gas Co. has sanctioned a strategy to separate its Appalachian integrated upstream and gathering operations into a standalone, publicly traded entity. Following the split, National Fuel will operate exclusively as a regulated natural gas utility and pipeline enterprise. Planned for completion in the latter half of 2027, the tax-free spin-off will distribute a minimum of 80.1% of the newly formed entity’s stock to current National Fuel investors.

The E&P and midstream unit encompasses roughly 1.2 million net acres across the Appalachian basin, generating approximately 1.1 Bcf/d in net output alongside 5 Tcf in proved reserves. According to leadership, the asset base includes over a quarter-century of drilling inventory, with its proprietary gathering network handling the majority of produced volumes. Capital efficiency has reportedly risen by roughly 25% following a strategic shift to its Eastern Development Area in 2023. Justin Loweth, who currently heads Seneca Resources and NFG Midstream, is slated to step in as chief executive officer of the spun-off firm.