Is NFG a good stock to buy? We came across a bullish thesis on National Fuel Gas Company on MaxDividends by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on NFG. National Fuel Gas Company’s share was trading at $76.63 as of June 24th. NFG’s trailing and forward P/E were 10.36 and 8.49 respectively according to Yahoo Finance.
National Fuel Gas Company operates as a diversified energy company. NFG is presented as a high-quality integrated energy compounder combining Appalachian upstream gas production with regulated utility and pipeline assets, creating a rare hybrid that blends commodity upside with defensive cash flow. With operations spanning the Marcellus and Utica shales alongside a utility serving 1.3 million customers in New York and a Northeast pipeline network, the company leverages both drilling-led growth and regulated earnings stability.
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NFG supports a 2.39% dividend yield backed by a $2.14 annual payout and a conservative 29.85% payout ratio, reinforcing its 56 consecutive years of dividend increases and 20% dividend growth over five years, underscoring a durable dividend compounding story. In fiscal Q1 2026, the company delivered strong operating momentum with GAAP EPS of $1.98, adjusted EPS of $2.06 versus $1.91 expected, revenue of $651.5 million, and adjusted EBITDA up 29% to $370.8 million, driven by 12% production growth to 109 Bcf and higher realized prices.
Fiscal 2025 production reached 427 Bcf, reflecting disciplined drilling in the Tioga Utica basin. Growth visibility is reinforced by fiscal 2026 guidance of $7.60–$8.10 adjusted EPS, up 14%, alongside $300–$350 million free cash flow and continued production expansion to 440–455 Bcfe.
A major catalyst is the $2.62 billion acquisition of CenterPoint’s Ohio utility, expected to double the regulated rate base and materially enhance earnings stability. Despite commodity exposure, the integrated model smooths volatility, while upside remains significant from production efficiency gains and utility expansion, supporting rerating potential.
Previously, we covered a bullish thesis on National Fuel Gas Company (NFG) by Overall_Sport_7693 in March 2025, which highlighted undervaluation, integrated upstream and utility operations, and a potential 33% upside driven by valuation normalization and steady production growth. NFG’s stock price has appreciated by approximately 4.17% since our coverage. Serhio MaxDividends shares a similar view but emphasizes stronger earnings momentum, improved guidance, and the Ohio utility acquisition as a key catalyst.
National Fuel Gas Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held NFG at the end of the first quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of NFG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
