Item 2. Properties
Item 2 Properties
General Information on Facilities
The net investment of the Company in property, plant and equipment was $7.7 billion at September 30, 2025. The Integrated Upstream and Gathering segment constitutes 46.0% of this investment, and is primarily located in the Appalachian region of the United States. Approximately 53.9% of the Company’s investment in
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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 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 integrated upstream 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 $1.7 billion, or 28.6%, s ince September 30, 2020. The five-year increase is net of impairments of assets recorded in 2021, 2024 and 2025 (pre-tax amounts of $76 million, $519 million and $142 million, respectively).
The Integrated Upstream and Gathering segment had a net investment in property, plant and equipment of $3.5 billion at September 30, 2025. 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, represent 69% of this segments total net investment. Gathering lines and related compressor stations represent 23% of this segment’s total net investment and includes 401 miles of pipelines utilized to move Appalachian production (including Marcellus and Utica shales) to various transmission pipeline receipt points as well as 24 compressor stations with 128,286 installed horsepower.
The Pipeline and Storage segment had a net investment o f $2.2 billion in property, plant and eq uipment at September 30, 2025. Transmission pipeline represents 35% 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. Storage facilities represent 15% of this segment’s total net investment and consist of 382 miles of pipeline, as well as 28 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 $80.7 million of gas stored underground, representing the cost of base 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 30 compressor stations with 259,038 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 Corp oration’s 2025 peak day sendout for transportation service of 2,371 MMcf, which occurred on January 21, 2025. Withdrawals from storage of 563 MMcf provided approximately 24% of the requirements on that day.
The Utility segment had a net investment in property, plant and equipment of $2.0 billion at September 30, 2025. The net investment in its gas distribution networ k (including 15,112 miles of distribution pipeline) and its service connections to customers represent approximately 51% and 31%, res pectively, of the Utility segment’s net investment in property, plant and equipment at September 30, 2025.
Company maps are included in Exhibit 99.2 of this Form 10-K and are incorporated herein by reference.
Exploration and Production Activities
Seneca, which is part of the Company’s Integrated Upstream and Gathering segment, is engaged in the exploration for and the development of natural gas reserves in the Appalachian region of the United States. Seneca’s development activities in the Appalachian region are focused primarily in the Marcellus and Utica shales. 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, 2025, 2024 and 2023 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 Seneca’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 4,752 Bcf at September 30, 2024 to 4,980 Bcf at September 30, 2025. This increase is attributed to extensions and discoveries of 632
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Bcf and revisions of previous estimates of 22 Bcf, partially offset by production of 426 Bcf. Upward revisions of 69 Bcf are mainly attributed to positive performance improvements and price revisions. The additions and upward revisions were partially offset by downward revisions of 47 Bcf from changes to development layout, the removal of one PUD location and operating expense-related revisions. The Company has no near term plans to develop the reserves at this PUD location.
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.
At September 30, 2025, Seneca had delivery commitments for natural gas production of 2,055 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.
Production
For The Year Ended September 30
2025 2024 2023
United States
Appalachian Region
Average Sales Price per Mcf of Gas $ 2.59 (1) $ 1.88 (1) $ 2.78 (1)
Average Sales Price per Mcf of Gas (after hedging) $ 2.70 $ 2.44 $ 2.55
Average Production (Lifting) Cost per Mcf Equivalent of Gas and Oil Produced $ 0.67 (1) $ 0.69 (1) $ 0.68 (1)
Average Production per Day (in MMcf Equivalent of Gas and Oil Produced) 1,169 (1) 1,072 (1) 1,020 (1)
(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, 2025, 2024 and 2023) contributed 574 MMcfe, 645 MMcfe and 521 MMcfe of daily production in 2025, 2024 and 2023, respectively. The average lifting costs (per Mcfe) were $0.72 in 2025, $0.72 in 2024 and $0.73 in 2023. The Utica Shale fields (which exceed 15% of total reserves at September 30, 2025, 2024 and 2023) contributed 591 MMcfe, 423 MMcfe and 495 MMcfe of daily production in 2025, 2024 and 2023, respectively. The average lifting costs (per Mcfe) were $0.61 in 2025, $0.64 in 2024 and $0.62 in 2023.
Productive Wells
Appalachian
Region
At September 30, 2025 Gas
Productive Wells — Gross 1,084
Productive Wells — Net 964
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Developed and Undeveloped Acreage
At September 30, 2025 Appalachian
Region
Developed Acreage
— Gross 671,791
— Net 659,913
Undeveloped Acreage
— Gross 688,591
— Net 641,455
Total Developed and Undeveloped Acreage
— Gross 1,360,382
— Net 1,301,368 (1)
(1) Of the 1,301,368 Total Developed and Undeveloped Net Acreage in the Appalachian region as of September 30, 2025, there are a total of 1,229,682 net acres in Pennsylvania. Of the 1,229,682 total net acres in Pennsylvania, shale development in the Marcellus, Utica or Geneseo shales has occurred on approximately 153,105 net acres, or 12% of Seneca’s total net acres in Pennsylvania. 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, 2025, the aggregate amounts of gross undeveloped acreage expiring under lease in the next three years and thereafter are as follows: 18,458 acres in 2026 (16,150 net acres), 14,698 acres in 2027 (12,679 net acres), 7,248 acres in 2028 (6,558 net acres) and 177,270 acres thereafter (169,102 net acres). The remaining 470,917 gross acres (436,966 net acres) represent non-expiring oil and gas rights owned by the Company. Of the acreage that is currently scheduled to expire in 2026, 2027 and 2028, Seneca has 814.7 Bcf of associated proved undeveloped gas reserves. As a part of its management approved development plan, Seneca generally commences development of these reserves prior to the expiration of the leases and/or proactively extends/renews these leases.
Drilling Activity
Productive Dry
For the Year Ended September 30 2025 2024 2023 2025 2024 2023
United States
Appalachian Region
Net Wells Completed
— Exploratory — — — — — —
— Development(1) 31.25 34.00 34.25 1.50 — 0.50
(1) Fiscal 2025 and 2023 Appalachian region dry wells include 1.5 and 0.5 net wells, respectively, drilled prior to 2013 that were never completed under a joint venture in which Seneca was the nonoperator. Seneca became the operator of the properties in 2017 and plugged and abandoned the wells in 2025 and 2023 after Seneca determined it would not continue development activities.
Present Activities
At September 30, 2025 Appalachian
Region
Wells in Process of Drilling(1)
— Gross 52.00
— Net 51.50
(1) Includes wells awaiting completion.
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