NFG: A Mildly Interesting Investment

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It has come to our attention – and, frankly, it’s rather difficult to ignore – that GAMCO Investors recently acquired an additional 37,056 shares of National Fuel Gas Company (NFG +0.64%). This equates to roughly $3.05 million, calculated using the predictably unpredictable average pricing of the last quarter. One wonders, of course, if they consulted a reliable soothsayer, or simply flipped a coin. (The coin, naturally, being a particularly complex one involving multiple alloys and a statistically improbable distribution of weight.)

What Actually Happened

According to a filing with the Securities and Exchange Commission – a body dedicated to the meticulous documentation of financial transactions, which, when viewed from a sufficiently distant perspective, appears remarkably similar to a very elaborate game of solitaire – GAMCO increased its position in NFG during the fourth quarter of 2025. The transaction, valued at approximately $3.05 million, brings their total stake to $115.73 million. Which, incidentally, is a sum large enough to buy a rather impressive collection of rubber ducks. (Though not, sadly, enough to solve all of the world’s problems. We checked.) It’s worth noting, however, that this represents a decrease of $14.37 million from the previous period. A temporary fluctuation, perhaps? Or a subtle commentary on the inherent chaos of the universe? We suspect the latter.

Further Observations

This purchase now constitutes 1.11% of GAMCO’s $10.41 billion portfolio – a figure that, when considered in relation to the total global financial market, is, statistically speaking, almost entirely insignificant. But let’s not dwell on existential dread, shall we? Instead, let’s consider their top holdings:

  • NYSE:MLI: $214.36 million (2.1% of AUM)
  • NYSE:GATX: $203.12 million (2.0% of AUM)
  • NYSE:CR: $196.42 million (1.9% of AUM)
  • NYSE:MSGS: $158.65 million (1.5% of AUM)
  • NYSE:HRI: $158.28 million (1.5% of AUM)

As of February 4th, NFG shares were trading at $84.16, a 19.1% increase over the past year. This outperforms the S&P 500 by roughly 5.11 percentage points. Which, in the grand scheme of things, is a bit like winning a particularly small lottery. Still, a win is a win. (Unless, of course, you lose the ticket. Then it’s just a profound disappointment.)

Company Profile: A Brief Overview

Metric Value
Revenue (TTM) $2.38 billion
Net income (TTM) $655.16 million
Dividend yield 2.50%
Price (as of 2/4/26) $84.16

A Closer Look

  • National Fuel Gas operates across exploration and production, pipeline and storage, gathering, and utility sectors, primarily dealing in natural gas and oil.
  • Their business model integrates upstream and midstream operations, generating revenue through sales, transportation fees, and regulated utility services.
  • Their customer base includes industrial, wholesale, commercial, public authority, and residential clients, largely located in western and central New York and northwestern Pennsylvania.

National Fuel Gas is, in essence, a vertically integrated energy company, spanning the entire process from extracting resources to delivering them to end-users. They leverage their assets in the Appalachian region and California to serve a diverse range of customers. This integrated approach, while not entirely unique, does provide a degree of resilience in a notoriously volatile industry. (It’s a bit like building a very elaborate sandcastle. It will eventually succumb to the tide, but you can at least enjoy it for a while.)

What Does This Mean for Investors?

The fact that GAMCO is adding to an existing position, even while the overall value fluctuates, suggests a level of conviction. They aren’t chasing performance; they’re seemingly comfortable with the long-term prospects. Operationally, the company delivered adjusted earnings of $2.06 per share in its fiscal first quarter, a 24% year-over-year increase. This was driven by higher natural gas production, stronger prices, and growth in their regulated utility segment. Management reaffirmed full-year adjusted EPS guidance of $7.60 to $8.10, indicating confidence despite commodity price volatility. Production rose 12% year-over-year, and the utility business benefited from rate increases and system modernization investments.

This isn’t a simple bet on commodity prices. The integrated structure – spanning production, pipelines, and a regulated utility – helps smooth cash flows. This stability explains why the stock has held up relatively well compared to many peers. (It’s not immune to market forces, of course. Just slightly less susceptible. Like a slightly more durable teacup in a hurricane.)

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2026-02-06 13:13