12:50 PM EDT, 07/15/2025 (MT Newswires) -- National Fuel Gas ( NFG ) is estimated to earn $9.12 per share in fiscal 2026, exceeding the Wall Street consensus of $8.62, driven by stronger well productivity and favorable pricing, BofA Securities said in a note Tuesday.

The firm attributed the earnings outlook to improving productivity from National Fuel Gas' ( NFG ) Tioga Utica acreage, which is expected to support a 5% production compounded annual growth rate.

BofA said this increased efficiency will enable a more capital-efficient program through the end of the decade, forecasting drilling and completion capital expenditures to decline by 10% by 2027.

"Our review of recent data shows production tracking 2.6 billion cubic feet per thousand feet, 16% ahead of management expectations," according to the note. This higher productivity is also expected to lower breakeven costs and improve free cash flow generation.

The brokerage said National Fuel Gas ( NFG ) is well-positioned to benefit from potential new pipeline projects into the Northeast, supported by the company's investment-grade credit rating and long-duration drilling inventory. The analysts estimate the company has nearly 20 years of drilling locations in Northern Pennsylvania, which compares favorably to peers.

The firm double upgraded the stock to buy from underperform and raised its price objective to $107 from $85, citing the stronger earnings profile and strategic advantage in expanding access to Northeast markets.

While the report noted "some regulatory risk" and "operational risk in growing production," BofA concluded that "recent well data, the upstream development outlook, and federal regulatory support for new pipelines have tipped the risk/reward balance, creating an attractive entry point."

Shares of National Fuel Gas ( NFG ) were up more than 6% in recent Tuesday trading.

Price: 89.18, Change: +5.11, Percent Change: +6.08