Seneca Resources Achieves Peer-Leading “A” Grade under Equitable Origin’s EO100™ Standard for 100% of Appalachian Natural Gas Production

Rhea-AI Summary

Seneca Resources Company, the Exploration and Production segment of National Fuel Gas Company (NYSE: NFG), has achieved an 'A' letter grade under Equitable Origin's EO100™ Standard for Responsible Energy Development certification, covering 100% of its natural gas production, approximately 1 billion cubic feet of natural gas per day. This certification was achieved through annual verification audits demonstrating scores of 98% or higher across all five principles of the EO100™ Standard. Seneca's focus on improving its performance each year and working collaboratively with key stakeholders has delivered one of the top scores yet attained under the system.

Environmental Compliance Officer

An 'A' letter grade under the EO100™ Standard signifies a company's commitment to environmental stewardship and social responsibility, which can have a positive impact on its reputation among investors and consumers. In the context of Seneca Resources, this certification can lead to enhanced marketability of their natural gas and potentially secure premium pricing, as there is a growing segment of the market that values cleaner and more ethically sourced energy.

From a compliance perspective, Seneca's achievement indicates a robust management system capable of maintaining high standards across various dimensions, including health, safety and environmental impact. This can translate into reduced regulatory risks and potentially lower insurance premiums due to a demonstrably lower risk profile.

Moreover, the adherence to such standards may provide Seneca with a competitive advantage in securing contracts, particularly with government and large corporate clients that have strict vendor selection criteria regarding sustainability performance.

Energy Sector Analyst

The energy sector is increasingly under pressure to demonstrate environmental and social governance (ESG) compliance. Seneca's certification could be a strategic move to attract ESG-focused investment, which has been growing in importance in the investment community. This high grade could serve as a differentiator in a crowded market, potentially leading to a more favorable view among investors, which could positively influence the stock price of National Fuel Gas Company.

Long-term, the commitment to ESG principles can lower operational risks, contribute to operational efficiencies and improve the company's license to operate. However, it is critical to assess whether the costs associated with maintaining such high standards are offset by the benefits received, such as improved access to capital and market differentiation.

Investors should also be aware that while ESG ratings like the EO100™ are important, they should be considered alongside other financial metrics and risk factors when evaluating a company's overall performance and potential for growth.

Sustainability Consultant

Seneca's continuous improvement in ESG performance, as demonstrated by the EO100™ Standard, can be seen as part of a broader trend where companies are not only looking to minimize their negative impact but also actively contribute to sustainable development. The integration of innovative technologies and processes signifies a forward-thinking approach that can lead to increased operational efficiency and the reduction of greenhouse gas emissions.

It is also indicative of a proactive engagement with stakeholders, including Indigenous Peoples and local communities, which is essential for the social license to operate. This can mitigate the risk of protests, legal challenges and project delays, which are increasingly common in the energy sector due to environmental and social concerns.

However, it is important to monitor the actual implementation of these ESG initiatives to ensure that they are not just a form of 'greenwashing'. Authenticity in these practices is critical for maintaining credibility with stakeholders and realizing the long-term benefits of sustainable business practices.

WILLIAMSVILLE, N.Y., Jan. 10, 2024 (GLOBE NEWSWIRE) -- Today, Seneca Resources Company, LLC (Seneca), the Exploration and Production segment of National Fuel Gas Company (NYSE: NFG) (National Fuel), announced that it has attained an "A" letter grade under Equitable Origin's EO100™ Standard for Responsible Energy Development certification, covering 100% of its natural gas production, approximately 1 billion cubic feet of natural gas per day. To achieve this "A" grade, Seneca, as part of an annual verification audit, demonstrated scores of 98% or higher across all five principles of the EO100™ Standard, including corporate governance and ethics; social impacts, human rights and community engagement; Indigenous Peoples' rights; occupational health, safety and fair labor standards; and environmental impacts, biodiversity, and climate change.

Seneca has been certified under the EO100™ Standard since December 2021, following annual independent, third-party audits of Seneca's Pennsylvania operations by Geosyntec Consultants.

"We are thrilled to recognize the superb ESG performance Seneca has achieved as assessed by the expert team at Geosyntec. Three years in, Seneca's focus on improving its performance each year and on working collaboratively with key stakeholders has delivered one of the top scores yet attained under our system," said Jason Switzer, CEO of Equitable Origin.

"These accomplishments highlight Seneca’s dedication to ongoing improvement through the use of innovative technologies and processes, aimed at ensuring long-term sustainability and responsible energy production,” said Justin Loweth, President of Seneca. “Seneca is proud to provide safe, reliable, affordable, and sustainable energy for the benefit of Appalachia and beyond."

About National Fuel Gas Company:
National Fuel is a diversified energy company headquartered in Western New York that operates an integrated collection of natural gas assets across four business segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

About Equitable Origin:
Equitable Origin is a non-profit organization that was founded with a vision to create a market-based mechanism to recognize and reward responsible energy producers and to empower energy purchasers through independent, site-level certification. The EO100™ Standard for Responsible Energy Development is grounded in a set of comprehensive, globally applicable ESG indicators developed with extensive stakeholder input. Certification against the EO100™ Standard promotes best practices and drives improvements in ESG performance while enabling a market for certified responsible energy with a premium price for differentiated production.

Cautionary Statements
Certain statements contained herein, including statements identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “believes,” “will,” “may,” and similar expressions, and statements other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. While National Fuel’s expectations, beliefs, and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: (1) National Fuel’s ability to estimate accurately the time and resources necessary to implement new practices; (2) governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; and (3) the other risks and uncertainties described in (i) National Fuel’s most recent Annual Report on Form 10-K at Item 7, MD&A, and Quarterly Reports on Form 10-Q at Item 2, MD&A, under the heading “Safe Harbor for Forward-Looking Statements,” and (ii) the “Risk Factors” included in National Fuel’s most recent Annual Report on Form 10-K at Item 1A. National Fuel disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements or use them for anything other than their intended purpose.

What is the company name and ticker symbol mentioned in the press release?

The company mentioned in the press release is Seneca Resources Company, LLC, and its ticker symbol is NFG.

What certification did Seneca achieve and what does it cover?

Seneca achieved an 'A' letter grade under Equitable Origin's EO100™ Standard for Responsible Energy Development certification, covering 100% of its natural gas production, approximately 1 billion cubic feet of natural gas per day.

What are the principles covered by the EO100™ Standard certification?

The EO100™ Standard certification covers five principles, including corporate governance and ethics; social impacts, human rights and community engagement; Indigenous Peoples' rights; occupational health, safety and fair labor standards; and environmental impacts, biodiversity, and climate change.

Who conducted the annual independent, third-party audits of Seneca's Pennsylvania operations?

The annual independent, third-party audits of Seneca's Pennsylvania operations were conducted by Geosyntec Consultants.

What is the CEO's statement regarding Seneca's ESG performance?

Jason Switzer, CEO of Equitable Origin, stated, 'We are thrilled to recognize the superb ESG performance Seneca has achieved as assessed by the expert team at Geosyntec. Three years in, Seneca's focus on improving its performance each year and on working collaboratively with key stakeholders has delivered one of the top scores yet attained under our system.'

What is the President of Seneca's statement regarding the company's dedication to sustainability and responsible energy production?

Justin Loweth, President of Seneca, said, 'Seneca is proud to provide safe, reliable, affordable, and sustainable energy for the benefit of Appalachia and beyond.'