What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2024-11-22 compared with 2023-11-17 · 33 added, 41 removed, 96 unchanged (44% of the section changed)

5 unchanged sentences

The Gathering segment constitutes 13.1% 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, 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 $2.6 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.

Net property, plant and equipment has increased $1.8 billion, or 33.2%, s ince September 30, 2019.

The five-year increase is net of impairments of assets recorded in 2020, 2021 and 2024 (pre-tax amounts of $449 million, $76 million and $519 million, respectively).

The Exploration and Production segment had a net investment in property, plant and equipment of $2.4 billion at Se ptember 30, 2024 consisting primarily of capitalized costs relating to exploration and production activities, the components of which are disclosed in Item 8, Note N — Supplementary Information for Exploration and Production Activities.

The Pipeline and Storage segment had a net investment o f $2.1 billion in property, plant and eq uipment at September 30, 2024.

Transmission pipeline represents 36% of this segment’s total net investment and includes 2,233 miles of pipeline utilized to move large volumes of gas throughout its service area.

2 unchanged sentences

The Pipeline and Storage segment has 31 compressor stations with 260,088 installed horsepower that represent 32% 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 2023 peak day sendout for transportation service of 2,360 MMcf, which occurred on February 3, 2023.

The Pipeline and Storage segment ’ s facilities provided the capacity to meet Supply Corporation’s 2024 peak day sendout f or transportation service of 2,304 MMcf, which occurred on January 14, 2024.

Withdrawals from storage of 590 MMcf provided approximately 26% of the requirements on that day.

The Gathering segment had a net investment of $1.0 billion i n property, plant and equipment at September 30, 2024.

Gathering lines and related compressor stations represent substantially all of this segment’s total net investment, including 376 miles of pipelines utilized to move Appalachian production (including Marcellus and Utica shales) to various transmission pipeline receipt points.

Gathering lines and related compressor stations represent substantially all of this segment’s total net investment, including 390 miles of pipelines utilized to move Appalachian production

(including Marcellus and Utica shales) to various transmission pipeline receipt points.

The Gathering segment has 23 compressor stations with 122,406 installed horsepower.

The Utility segment had a net investment in property, plant and equipment of $1.8 billion at September 30, 2024.

The net investment in its gas distribution networ k (including 15,052 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, 2023.

The net investment in its gas distribution networ k (including 15,090 miles of distribution pipeline) and its service connections to customers represent approximately 50% and 31%, res pectively, of the Utility segment’s net investment in property, plant and equipment at September 30, 2024.

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

2 unchanged sentences

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.

Further discussion of exploration and production activities is included in Item 8, Note N — Supplementary Information for Exploration and Production Activities.

Note N sets forth proved developed and undeveloped reserve information for Seneca.

The September 30, 2023, 2022 and 2021 reserves shown in Note N are valued using an unweighted arithmetic average of the first day of the month oil and gas prices for each month within the twelve-month period prior to the end of the reporting period.

The September 30, 2024, 2023 and 2022 reserves shown in Note N are valued using an unweighted arithmetic average of first day of the month commodity price for each month within the twelve-month period prior to the end of the reporting period.

The reserves were estimated by Seneca’s petroleum engineers and were audited by independent petroleum engineers from Netherland, Sewell & Associates, Inc.

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 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 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.

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 gas reserves year over year.

Seneca’s proved developed and undeveloped natural gas reserves increased from 4,535 Bcf at September 30, 2023 to 4,752 Bcf at September 30, 2024.

This increase is attributed to extensions and discoveries of 602 Bcf and revisions of previous estimates of 7 Bcf, partially offset by production of 392 Bcf.

Upward revisions of 145 Bcf are mainly attributed to positive performance improvements, changes to the booked lateral length and optimized development layout.

The additions and upward revisions were partially offset by downward revisions of 138 Bcf from the removal of nine PUD locations related to schedule 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 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 4,171 Bcf at September 30, 2022 to 4,535 Bcf at September 30, 2023.

This increase was 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 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 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.

This increase was 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 were 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.

At September 30, 2024, the Company’s Exploration and Production segment had delivery commitments for natural gas production of 1,896 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.

5 unchanged sentences

Average Sales Price per Mcf of Gas $ 1.88 (1) $ 2.78 (1) $ 5.03 (1)

Average Sales Price per Barrel of Oil $ 75.64 $ 97.82 $ 48.02

Average Sales Price per Barrel of Oil N/M N/M N/M

Average Sales Price per Mcf of Gas (after hedging) $ 2.44 $ 2.55 $ 2.69

Average Sales Price per Barrel of Oil (after hedging) $ 75.64 $ 97.82 $ 48.02

Average Sales Price per Barrel of Oil (after hedging) N/M N/M N/M

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

3 unchanged sentences

West Coast Region (2)

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 Sales Price per Mcf of Gas N/A N/A $ 10.03

Average Sales Price per Barrel of Oil N/A N/A $ 94.06

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

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

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

N/A (2) $ 4.83 $ 3.74

N/A N/A $ 4.83

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

N/A (2) 39 (2) 41

Total Company

Average Sales Price per Mcf of Gas $ 1.88 $ 2.78 $ 5.05

Average Sales Price per Barrel of Oil $ 75.64 $ 94.10 $ 60.49

Average Sales Price per Barrel of Oil N/M N/M $ 94.10

Average Sales Price per Mcf of Gas (after hedging) $ 2.44 $ 2.55 $ 2.71

Average Sales Price per Barrel of Oil (after hedging) $ 75.64 $ 70.80 $ 56.54

Average Sales Price per Barrel of Oil (after hedging) N/M N/M $ 70.80

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

2 unchanged sentences

1,072 1,020 966

N/M Sales price amounts are considered not meaningful as oil production is insignificant.

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

4 unchanged sentences

(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.

Information for the years ended September 30, 2023 and 2024 is not applicable (N/A) as a result of the sale.

Productive Wells

At September 30, 2023 Gas Oil

At September 30, 2024 Gas

Productive Wells — Gross 1,043

43 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