What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2022-11-18 compared with 2021-11-19 · 35 added, 33 removed, 106 unchanged (39% of the section changed)

2 unchanged sentences

The net investment of the Company in property, plant and equipment was $6.6 billion at September 30, 2022.

The Exploration and Production segment constitutes 31.0% of this investment, and is primarily located in the Appalachian region of the United States and in California.

The Exploration and Production segment constitutes 31.2% of this investment, and is primarily located in the Appalachian region of the United States.

Approximately 56.1% of the Company's investment in net property, plant and equipment was in the Utility and Pipeline and Storage segments, whose operations are located primarily in western and central New York and western Pennsylvania.

The Gathering

segment constitutes 12.6% of the Company’s investment in net property, plant and equipment, and is located in northwestern and central Pennsylvania.

During the past five years, the Company has made significant additions to property, plant and equipment in order to expand its exploration and production and gathering operations in the Appalachian region of the United States and to expand and improve transmission and distribution facilities for customers in New York and Pennsylvania.

The Gathering segment constitutes 12.6% of the Company’s investment in net property, plant and equipment, and is located in northwestern and central Pennsylvania.

The remaining 0.1% of the Company's net investment in property, plant and equipment falls within All Other and Corporate operations.

During the past five years, the Company has made significant additions to property, plant and equipment in order to expand its exploration and production and gathering operations in the Appalachian region of the United States and to expand and modernize transmission and distribution facilities for customers in New York and Pennsylvania.

Net property, plant and equipment has increased $1.9 billion, or 40.5%, since September 30, 2017.

2 unchanged sentences

The Pipeline and Storage segment had a net investment of $2.0 billion in property, plant and equipment at September 30, 2022.

Transmission pipeline represents 32% of this segment’s total net investment and includes 2,264 miles of pipeline utilized to move large volumes of gas throughout its service area.

Storage facilities represent 13% of this segment’s total net investment and consist of 30 storage fields operating at a combined working gas level of 77.2 Bcf, three of which are jointly owned and operated with other interstate gas pipeline companies, and 388 miles of pipeline.

Transmission pipeline represents 37% o f this segment’s total net investment and includes 2,301 miles of pipeline utilized to move large volumes of gas throughout its service area.

Storage facilities represent 13% of this segment’s total net investment and consist of 387 miles of pipeline, as well as 30 storage fields operating at a combined working gas level of 77.2 Bcf, three of which are jointly owned and operated with other interstate gas pipeline companies.

Net investment in storage facilities includes $79.7 million of gas stored underground-noncurrent , representing the cost of the gas utilized to maintain pressure levels for normal operating purposes as well as gas maintained for system balancing and other purposes, including that needed for no-notice transportation service.

The Pipeline and Storage segment has 34 compressor stations with 262,393 installed horsepower that represent 32% of this segment’s total net investment in property, plant and equipment.

The Pipeline and Storage segments’ facilities provided the capacity to meet Supply Corporation’s 2021 peak day sendout for transportation service of 2,133 MMcf, which occurred on February 7, 2021.

The Pipeline and Storage segment's facilities provided the capacity to meet Supply Corporation’s 2022 peak day sendout for transportation service of 2,092 MMcf, which occurred on January 10, 2022.

Withdrawals from storage of 718 MMcf provided approximately 34% of the requirements on that day.

The Gathering segment had a net investment of $0.8 billion in property, plant and equipment at September 30, 2021.

The Gathering segment had a net investment of $0.8 billion i n property, plant and equipment at September 30, 2022.

Gathering lines and related compressor stations represent substantially all of this segment’s total net investment, including 368 miles of pipelines utilized to move Appalachian production (including Marcellus and Utica shales) to various transmission pipeline receipt points.

1 unchanged sentence

The Utility segment had a net investment in property, plant and equipment of $1.7 billion at September 30, 2022.

The net investment in its gas distribution network (including 15,008 miles of distribution pipeline) and its service connections to customers represent approximately 49% and 32%, respectively, of the Utility segment’s net investment in property, plant and equipment at September 30, 2021.

The net investment in its gas distribution networ k (including 15,040 miles of distribution pipeline) and its service connections to customers represent approximately 49% and 32%, respectively, of the Utility segment’s net investment in property, plant and equipment at September 30, 2022.

Company maps are included in Exhibit 99.2 of this Form 10-K and are incorporated herein by reference.

Exploration and Production Activities

The Company is engaged in the exploration for and the development of natural gas and oil reserves in the Appalachian region of the United States and in California.

The Company's development activities in the Appalachian region are focused primarily in the Marcellus and Utica shales.

The Company is engaged in the exploration for and the development of natural gas reserves i n the Appalachian region of the United States.

The Company's development activities in the Appalachian region are

focused primarily in the Marcellus and Utica shales.

Further discussion of oil and gas producing activities is included in Item 8, Note N — Supplementary Information for Oil and Gas Producing Activities.

3 unchanged sentences

Note N discusses the qualifications of the Company's petroleum engineers, internal controls over the reserve estimation process and audit of the reserve estimates and changes in proved developed and undeveloped oil and natural gas reserves year over year.

Seneca's proved developed and undeveloped natural gas reserves increased from 3,325 Bcf at September 30, 2020 to 3,723 Bcf at September 30, 2021.

Seneca's proved developed and undeveloped natural gas reserves increased fr om 3,723 Bcf at September 30, 2021 to 4,171 Bcf at September 30, 2022.

This increase is attributed to extensions and discoveries of 838 Bcf and revisions of previous estimates of 3 Bcf, partially offset by production of 343 Bcf.

Upward revisions

included 74 Bcf of price-related revisions and 29 Bcf of revisions related to positive performance improvements including reduced operating expenses.

Downward revisions of 80 Bcf from the removal of 8 PUD locations were due to continued integration of the recently acquired Tioga assets, as well as other operational optimizations that resulted in pad layout and development schedule changes.

Upward revisions included 3 Bcf of price-related revisions and 13 Bcf of revisions related to positive performance improvements including reduced operating expenses.

The additions and upward revisions were partially offset by divestures of 50 Bcf as well as downward revisions of 13 Bcf from the removal of 1 PUD location related to pad layout changes.

The Company has no near term plans to develop the reserves at this PUD location.

Seneca’s proved developed and undeveloped oil reserves decreased from 21,537 Mbbl at September 30, 2021 to 250 Mbbl at September 30, 2022.

The decrease of 563 Mbbl is attributed to production of 2,235 Mbbl and downward revisions of previous estimates of 579 Mbbl, partially offset by positive price-related revisions of 1,210 Mbbl and extensions and discoveries of 1,041 Mbbl, primarily occurring in the West Coast region.

On a Bcfe basis, Seneca’s proved developed and undeveloped reserves increased from 3,458 Bcfe at September 30, 2020 to 3,853 Bcfe at September 30, 2021.

This increase is attributed to extensions and discoveries of 696 Bcfe and upward revisions of previous estimates of 26 Bcfe, partially offset by production of 327 Bcfe.

The decrease of 21,287 Mbbl is attributed to production of 1,604 Mbbl and the sale of Seneca's West Coast region (i.e., California assets) of 20,766 Mbbl.

These decreases were partially offset by positive performance revisions of 787 Mbbl and extensions and discoveries of 296 Mbbl.

On a Bcfe basis, Seneca’s proved developed and u ndeveloped reserves increased from 3,853 Bcfe at September 30, 2021 to 4,172 Bcfe at September 30, 2022.

This increase is attributed to extensions and discoveries of 839 Bcfe and upward revisions of previous estimates of 8 Bcfe, partially offset by production of 353 Bcfe and divestures, primarily from the sale of the West Coast region (i.e., California assets), of 175 Bcfe.

Seneca's proved developed and undeveloped natural gas reserves increased from 3,325 Bcf at September 30, 2020 to 3,723 Bcf at September 30, 2021.

This increase was attributed to extensions and discoveries of 7 Bcf and acquisitions of 684 Bcf partially offset by downward revisions of 88 Bcf and production of 227 Bcf.

Of the total net downward gas revisions of 88 Bcf, 8 Bcf were a result of negative price-related revisions and 179 Bcf were from 17 Pennsylvania PUD locations (two in the Marcellus Shale and 15 in the Utica Shale) removed due to the Company having no near-term plans to develop these reserves.

These were offset in part by upward revisions of 48 Bcf for five PUD locations added back to proved reserves in 2020 (after removing one in 2016 and four in 2017 due to scheduling delays beyond five year rule expirations) and 51 Bcf due to positive performance improvements on producing wells combined with longer laterals on certain wells .

This increase was attributed to extensions and discoveries of 689 Bcf and revisions of previous estimates of 23 Bcf, partially offset by production of 314 Bcf.

Upward revisions included 74 Bcf of price-related revisions and 29 Bcf of revisions related to positive performance improvements including reduced operating expenses.

Downward revisions of 80 Bcf from the removal of 8 PUD locations were due to continued integration of the Tioga assets acquired in July 2020, as well as other operational optimizations that resulted in pad layout and development schedule changes.

Seneca’s proved developed and undeveloped oil reserves decreased from 22,100 Mbbl at September 30, 2020 to 21,537 Mbbl at September 30, 2021.

The decrease of 2,773 Mbbl was attributed to production of 2,348 Mbbl and downward revisions of previous estimates of 713 Mbbl, partially offset by extensions and discoveries of 288 Mbbl, primarily occurring in the West Coast region.

Downward revisions were mainly a result of lower oil prices of 1,818 Mbbl partially offset by positive revisions of 1,105 Mbbl, which were a combination of 688 Mbbl due to operational cost efficiencies and 417 Mbbl due to field performance.

The decrease of 563 Mbbl was attributed to production of 2,235 Mbbl and downward revisions of previous estimates of 579 Mbbl, partially offset by positive price-related revisions of 1,210 Mbbl and extensions and discoveries of 1,041 Mbbl, primarily occurring in the West Coast region.

On a Bcfe basis, Seneca’s proved developed and undeveloped reserves increased from 3,458 Bcfe at September 30, 2020 to 3,853 Bcfe at September 30, 2021.

This increase was attributed to acquisitions of 684 Bcfe and extensions and discoveries of 9 Bcfe, partially offset by production of 241 Bcfe and downward revisions of previous estimates of 93 Bcfe.

At September 30, 2021, the Company’s Exploration and Production segment had delivery commitments for production of 2,170 Bcfe (mostly natural gas as commitments for crude oil were insignificant).

This increase was attributed to extensions and discoveries of 696 Bcfe and upward revisions of previous estimates of 26 Bcfe, partially offset by production of 327 Bcfe.

At September 30, 2022 , the Company’s Exploration and Production segment had delivery commitments for natural gas production of 2,390 Bcf.

The Company expects to meet those commitments through the future production of reserves that are currently classified as proved reserves and future extensions and discoveries.

30 unchanged sentences

(1) Average sales prices per Mcf of gas reflect sales of gas in the Marcellus and Utica Shale fields.

The Marcellus Shale fields (which exceed 15% of total reserves at September 30, 2021, 2020 and 2019) contributed 597 MMcfe, 463 MMcfe and 447 MMcfe of daily production in 2021, 2020 and 2019, respectively.

The average lifting costs (per Mcfe) were $0.70 in 2021, $0.70 in 2020 and $0.68 in 2019.

The Utica Shale fields (which exceed 15% of total reserves at September 30, 2021, 2020 and 2019) contributed 255 MMcfe, 151 MMcfe and 88 MMcfe of daily production in 2021, 2020 and 2019, respectively.

The average lifting costs (per Mcfe) were $0.62 in 2021, $0.62 in 2020 and $0.63 in 2019.

The Marcellus Shale fields (which exceed 15% of total reserves at September 30, 2022, 2021 and 2020) contribut ed 574 MMcfe, 5 97 MMcfe and 463 MMcfe of daily production in 2022, 2021 and 2020, respectively.

The average lifting costs (per Mcfe) w ere $0.71 in 2022, $0.70 in 2021 and $0.70 in 2020.

The Utica Shale fiel ds (which exceed 15% of total reserves at September 30, 2022, 2021 and 2020) contributed 357 MMcfe, 255 MMcfe and 151 MMcfe of daily production in 2022, 2021 and 2020, respectively.

The average lifting costs (per Mcfe) were $0.63 i n 2022, $0.62 in 2021 and $0.62 in 2020.

(2) West Coast region properties were sold at June 30, 2022.

Productive Wells

19 unchanged sentences

Developed Acreage in the table reflects previous development activities in the Upper Devonian formation, but does not include the potential for development beneath this formation in areas of previous development, which includes the Marcellus, Utica and Geneseo shales.

As of September 30, 2021, the aggregate amount of gross undeveloped acreage expiring in the next three years and thereafter are as follows:

As of September 30, 2022, the aggregate amo unts of gross undeveloped acreage expiring in the next three years and thereafter are as follows:

2,569 acres in 2023 (2,368 net acres), 15,203 acres in 2024 (14,310 net acres), 1,547 acres in 2025 (1,388 net acres) and 192,105 acres thereafter (187,765 net acres).

18 unchanged sentences

— Development 66.00 57.83 73.84 2.50 2.00 6.50

(1) Fiscal 2021, 2020 and 2019 Appalachian region dry wells include 2, 4.5 and 3 net wells, respectively, drilled in 2011 that were never completed under a joint venture in which the Company was the nonoperator.

The Company became the operator of the properties in 2017 and plugged and abandoned the wells in 2021, 2020 and 2019 after the Company determined it would not continue development

The remaining 2 dry wells in fiscal 2020 and 4 dry wells in 2019 relate to plugged and abandoned well locations where preparatory top-hole drilling operations had commenced but further development activities (e.g., vertical and horizontal drilling, hydraulic fracturing, etc.) did not proceed as a result of changes to the Company’s development plans.

(1) Fiscal 2022, 2021 and 2020 Appalachian region dry wells include 2.5, 2 and 4.5 net wells, respectively, drilled prior to 2012 that were never completed under a joint venture in which the Company was the nonoperator.

The Company became the operator of the properties in 2017 and plugged and abandoned the wells in 2022, 2021 and 2020 after the Company determined it would not continue development activities.

The remaining 2 dry wells in fiscal 2020 relate to plugged and abandoned well locations where preparatory top-hole drilling operations had commenced but further development activities (e.g., vertical and horizontal drilling, hydraulic fracturing, etc.) did not proceed as a result of changes to the Company's development plans.

Present Activities

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties