National Fuel Sets 2027 Target for Upstream Business Spin-Off
The planned separation would give shareholders stakes in both National Fuel and a new Appalachian natural gas company.
Key takeaways
- National Fuel plans to separate its Integrated Upstream and Gathering business in the second half of 2027.
- Shareholders are expected to receive at least 80.1% of IUG shares through a tax-free distribution.
National Fuel Gas plans to separate its Integrated Upstream and Gathering business into a second publicly traded company, with completion expected in the second half of 2027. Shareholders would receive at least 80.1% of IUG shares through a tax-free distribution and retain their National Fuel shares.
After the separation, National Fuel expects to operate as a fully regulated natural gas company, while IUG would focus on Appalachian production and gathering. IUG has approximately 1.2 million net acres and produces about 1.1 billion cubic feet of natural gas per day, according to the company.
National Fuel may retain up to 19.9% of IUG after the spin-off and intends to dispose of that stake in a tax-efficient manner. The separation remains subject to customary conditions, including regulatory filings and final board approval.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
