National Fuel Gas plans upstream business spin-off

• National Fuel Gas (NYSE:NFG) approved a plan to separate its Integrated Upstream and Gathering business into an independent publicly traded company.
• The transaction is expected to occur in the second half of 2027, with at least 80.1% of IUG shares distributed to existing National Fuel shareholders.
• National Fuel said the separation would create a fully rate-regulated utility company while allowing IUG to operate as a standalone Appalachian natural gas producer and gatherer.

National Fuel Gas (NYSE:NFG) announced that its board of directors approved a plan to spin off its Integrated Upstream and Gathering (IUG) business into a separate public company.

The separation is expected in the second half of 2027 and is intended to be structured as a tax-free transaction for U.S. federal income tax purposes for both National Fuel and its shareholders.

Under the proposed structure, National Fuel shareholders would receive at least 80.1% of IUG shares on a pro rata basis.

National Fuel expects to retain up to 19.9% ownership in IUG initially and plans to dispose of that stake through tax-efficient transactions to support its investment-grade balance sheet.

After the separation, National Fuel would operate as a fully rate-regulated energy company with nearly $5 billion in rate base.

IUG would hold Appalachian natural gas production and gathering assets with approximately 1.1 billion cubic feet per day of net production.

Completion of the transaction remains subject to regulatory filings, financing arrangements, and final board approval.

National Fuel Gas operates regulated utility and energy businesses, including natural gas distribution, storage, production, and gathering operations.