On October 14, 2026, National Fuel Gas Company (NYSE: NFG) announced that its Board of Directors has approved a plan to separate the company into two independent, publicly traded entities. The transaction involves a tax-free spin-off of the company’s Integrated Upstream and Gathering business, referred to as IUG.
Under the proposed plan, National Fuel shareholders will receive shares in both National Fuel and IUG. The separation is expected to be completed in the second half of calendar year 2027, subject to customary conditions, including the filing and effectiveness of applicable SEC filings and final Board approval.
Post-separation, National Fuel will operate as a 100% rate-regulated natural gas company. The company will maintain a nearly $5 billion rate base and serve approximately 1.1 million customers across Ohio, New York, and Pennsylvania. Its FERC-regulated pipeline and storage business is expected to provide nearly 5 billion cubic feet per day of contracted transportation capacity and 77 billion cubic feet of storage services. The company intends to maintain an investment-grade credit profile and plans to provide formal guidance for fiscal 2027 in November 2026.
IUG will become an independent public company focused on its Appalachian upstream and gathering assets. The business is expected to have approximately 1.2 million total net acres in Appalachia and a net natural gas production of approximately 1.1 billion cubic feet per day. IUG is projected to have approximately 5 trillion cubic feet of proved natural gas reserves and more than 25 years of development inventory. The company expects to retain an ownership stake of up to 19.9% in IUG after the spin-off, which it intends to dispose of in a tax-efficient manner.
Goldman Sachs & Co. LLC is serving as the financial advisor, and Veriten LLC is serving as the independent strategic advisor. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
