What changed in this filing

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Item 2. Properties

2023-11-17 compared with 2022-11-18 · 34 added, 38 removed, 103 unchanged (41% of the section changed)

5 unchanged sentences

The Gathering segment constitutes 12.2% 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.

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, storage, and distribution facilities for customers in New York and Pennsylvania.

Net property, plant and equipment has increased $2.3 billion, or 46.7%, since September 30, 2018.

The five year increase is net of impairments of oil and gas producing properties recorded in 2020 and 2021 ($449 million and $76 million, respectively).

The Exploration and Production segment had a net investment in property, plant and equipment of $2.1 billion at September 30, 2022.

The Exploration and Production segment had a net investment in property, plant and equipment of $2.6 billion at Se ptember 30, 2023 consisting primarily of capitalized costs relating to oil and gas producing

activities, the components of which are disclosed in Item 8, Note N — Supplementary Information for Oil and Gas Producing Activities.

The Pipeline and Storage segment had a net investment of $2.1 billion in property, plant and equipment at September 30, 2023.

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.

Transmission pipeline represents 35% of this segment’s total net investment and includes 2,246 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 385 miles of pipeline, as well as 29 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.

1 unchanged sentence

The Pipeline and Storage segment has 31 compressor stations with 260,008 installed horsepower that represent 31% of this segment’s total net investment in property, plant and equipment.

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.

The Pipeline and Storage segment's facilities provided the capacity to meet Supply Corporation’s 2023 peak day sendout for transportation service of 2,360 MMcf, which occurred on February 3, 2023.

Withdrawals from storage of 505 MMcf provided approximately 21% of the requirements on that day.

7 unchanged sentences

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.

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.

4 unchanged sentences

Seneca's proved developed and undeveloped natural gas reserves increased fr om 4,171 Bcf at September 30, 2022 to 4,535 Bcf at September 30, 2023.

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 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.

This increase is attributed to extensions and discoveries of 670 Bcf, purchases of minerals in place of 34 Bcf, and revisions of previous estimates of 32 Bcf, partially offset by production of 372 Bcf.

Upward revisions of 94 Bcf are mainly attributed to positive performance improvements and adding back one PUD location.

The additions and upward revisions were partially offset by downward revisions of 62 Bcf from the removal of seven PUD locations related to pad layout changes and price-related revisions.

The Company has no near term plans to develop the reserves at these PUD locations.

Seneca’s proved developed and undeveloped oil reserves decreased from 250 Mbbl at September 30, 2022 to 216 Mbbl at September 30, 2023.

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.

The decrease was attributed to current year production of 30 Mbbl and downward revisions of previous estimates of 4 Mbbl.

On a Bcfe basis, Seneca’s proved developed and undeveloped reserves increased from 4,172 Bcfe at September 30, 2022 to 4,536 Bcfe at September 30, 2023.

This increase is attributed to extensions and discoveries of 670 Bcfe, purchases of minerals in place of 34 Bcfe and net upward revisions of previous estimates of 32 Bcfe, partially offset by production of 372 Bcfe.

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

1 unchanged sentence

Upward revisions included 3 Bcf of price-related revisions and 13 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 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.

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 one 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 unde veloped oil reserves decreased from 21,537 Mbbl at September 30, 2021 to 250 Mbbl at September 30, 2022.

The decrease of 21,287 Mbbl was 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 undeveloped reserves increased from 3,853 Bcfe at September 30, 2021 to 4,172 Bcfe at September 30, 2022.

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.

This increase was 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.

At September 30, 2023 , the Company’s Exploration and Production segment had delivery commitments for natural gas productio n of 2,147 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.

The following is a summary of certain oil and gas information taken from Seneca’s records.

All monetary amounts are expressed in U.S.

For The Year Ended September 30

11 unchanged sentences

West Coast Region

Average Sales Price per Mcf of Gas $ 10.03 $ 6.34 $ 3.82

Average Sales Price per Barrel of Oil $ 94.06 $ 60.50 $ 45.94

Average Sales Price per Mcf of Gas (after hedging) $ 10.03 $ 6.34 $ 3.82

Average Sales Price per Barrel of Oil (after hedging) $ 70.53 $ 56.55 $ 56.97

Average Sales Price per Mcf of Gas N/A (2) $ 10.03 $ 6.34

Average Sales Price per Barrel of Oil N/A (2) $ 94.06 $ 60.50

Average Sales Price per Mcf of Gas (after hedging) N/A (2) $ 10.03 $ 6.34

Average Sales Price per Barrel of Oil (after hedging) N/A (2) $ 70.53 $ 56.55

Average Production (Lifting) Cost per Mcf Equivalent of Gas and Oil Produced

$ 4.83 $ 3.74 $ 3.14

N/A (2) $ 4.83 $ 3.74

Average Production per Day (in MMcf Equivalent of Gas and Oil Produced)

N/A (2) 39 (2) 41

Total Company

6 unchanged sentences

Average Production per Day (in MMcf Equivalent of Gas and Oil Produced)

1,020 966 897

(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, 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.

The Marcellus Shale fields (which exceed 15% of total reserves at September 30, 2023, 2022 and 2021) contributed 521 MMcfe, 574 MMcfe and 597 MMcfe of daily production in 2023, 2022 and 2021, respectively.

The average lifting costs (per Mcfe) were $0.73 in 2023, $0.71 in 2022 and $0.70 in 2021.

The Utica Shale fields (which exceed 15% of total reserves at September 30, 2023, 2022 and 2021) contributed 495 MMcfe, 357 MMcfe and 255 MMcfe of daily production in 2023, 2022 and 2021, respectively.

The average lifting costs (per Mcfe) were $0.62 in 2023, $0.63 in 2022 and $0.62 in 2021.

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

Information for the year ended September 30, 2023 is not applicable (N/A) as a result of the sale.

Productive Wells

Region West Coast

Region Total Company

At September 30, 2022 Gas Oil Gas Oil Gas Oil

At September 30, 2023 Gas Oil

Productive Wells — Gross 1,006 —

2 unchanged sentences

At September 30, 2023 Appalachian

Region West Coast

Developed Acreage

10 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, 2022, the aggregate amo unts of gross undeveloped acreage expiring in the next three years and thereafter are as follows:

As of September 30, 2023, the aggregate amounts of gross undeveloped acreage expiring under lease in the next three years and thereafter are as follows:

20,858 acres in 2024 (19,108 net acres), 11,176 acres in 2025 (10,180 net acres), 15,389 acres in 2026 (14,219 net acres) and 211,719 acres thereafter (193,090 net acres).

20 unchanged sentences

The Company became the operator of the properties in 2017 and plugged and abandoned the wells in 2023, 2022 and 2021 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

At September 30, 2023 Appalachian

Region West Coast Region Total Company

Wells in Process of Drilling(1)

— Gross 54.00

— Net 46.50 — 46.50

(1) Includes wells awaiting completion.

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