National Fuel Gas (NFG) has updated its financing toolkit by entering an Amended and Restated Credit Agreement that provides a US$1.3 billion unsecured revolving credit facility, extending liquidity coverage for routine needs and potential acquisitions.

That expanded credit facility arrives at a time when momentum in National Fuel Gas’s shares has been firm, with a 90-day share price return of 21.26% and a 1-year total shareholder return of 31.69%. This points to steadily improving sentiment across both shorter and longer horizons as investors weigh liquidity, earnings updates and the extended credit agreement.

If this kind of balance sheet story interests you, it can be worth widening the lens and checking out 30 power grid technology and infrastructure stocks

With shares already up strongly over the past year and the stock trading about 7% below one set of analyst price targets, the key question is whether National Fuel Gas is still undervalued or if the market is already pricing in future growth.

Most Popular Narrative: 6.8% Undervalued

With National Fuel Gas last closing at $95.03 against a narrative fair value of $102, the story centers on whether its integrated model can support that gap.

Vertical integration across E&P, Midstream, and Utility segments allows National Fuel Gas to capture cost synergies and maximize returns from each development dollar. This supports ongoing margin expansion and steady long-term earnings growth. Favorable regulatory mechanisms (modernization trackers, rate settlements) and a strong balance sheet enable reinvestment and capital return. Robust hedging and firm sales portfolios provide insulation from commodity volatility, helping to stabilize cash flow, support the dividend, and potentially rerate the stock's valuation.

Want to see what sits behind that confidence in cash flows and margins? The fair value hinges on specific revenue growth, profit margin shifts and a future earnings multiple that may surprise you.

Result: Fair Value of $102 (UNDERVALUED)

However, there is still the risk that tighter decarbonization policies or rising system and environmental capex could pressure margins and challenge the current fair value story.

Another View: Cash Flows Point The Other Way

While the narrative fair value suggests National Fuel Gas is 6.8% undervalued, our DCF model tells a different story. On that framework, the shares trade above an estimated future cash flow value of $78.44, which leans toward overvaluation. So which lens do you trust more: cash flows or earnings multiples?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out National Fuel Gas for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 62 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment mixed across fair value and cash flow views, this is a good time to look through the numbers yourself and move quickly to form your own judgment by weighing the 4 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.