Shares of diversified energy company National Fuel Gas Co. (NFG) have surged 49.4% over the past 12 months. Notably, the exploration and production segment of NFG, Seneca Resources, received a 100% certification of its Appalachian natural gas production under Equitable Origin’s EO100 Standard for Responsible Energy Development. The certification validates over 1 billion cubic feet of daily gross production from Seneca’s Appalachian operations.
The company expects this certification will differentiate its “responsibly sourced, low methane-intensity production with end-users and commercial markets.” With these developments in mind, let us take a look at the changes in NFG’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, National Fuel Gas’ top risk category is Finance & Corporate, contributing 35% to the total 23 risks identified.
In its recent annual report, the company has added one key risk factor under the Macro & Political risk category. Compared to a sector average of 11%, NFG’s Macro & Political risk factor is at 17%.
NFG noted that the physical risks related to climate change could have a negative impact on its operations and financials. More and more frequent and severe weather events could disrupt NFG’s gas infrastructure, production facilities as well as supply chain systems. Warmer weather could also mean a fluctuation in demand for NFG’s products.
Keeping a tab on insiders stocks can provide timely insights for retail investors. According to TipRanks data on Insider Activity, insiders have sold Natural Fuel Gas shares worth $1.1 million in the last three months, indicating a negative insider confidence signal for the stock based on three insider transactions in the last 3 months.
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