U.S. Energy Company Reviews Major Corporate Separation

National Fuel Gas Company is evaluating a plan to separate its business into two independent publicly traded companies, the Western New York-based energy company announced this week.

The proposed separation would divide National Fuel's integrated upstream and gathering operations from its regulated natural gas utility, pipeline and storage businesses. The company said its board expects to complete the evaluation by October 15, 2026.

Two Companies With Different Energy Businesses

Under the proposal, one company would focus on Appalachian natural gas production and gathering, while the other would operate as a regulated natural gas utility and infrastructure business.

National Fuel said the upstream and gathering business has approximately 1.2 million net acres in Appalachia, about 1.1 billion cubic feet per day of net natural gas production and approximately 5 trillion cubic feet of natural gas reserves.

The regulated business would serve about 1.1 million customers across Ohio, New York and Pennsylvania, alongside interstate pipeline and storage operations.

Board Evaluation Expected by October

The company said the proposed transaction would be structured as a distribution of shares to existing National Fuel shareholders, with shareholders potentially receiving ownership in both businesses.

National Fuel said the separation could give each business greater flexibility over capital allocation, investment priorities and financial strategy. However, the company emphasized that the plan remains under evaluation and has not yet been finalized.

The development comes as U.S. energy companies continue to assess how changing natural gas demand, infrastructure investment and capital-market conditions could shape their long-term strategies.