National Fuel

Situation

As National Fuel Gas Company was nearing the end of its 2005 fiscal year, its management decided it was time to take a different approach to its annual report. Having used a relatively small design firm for several years, the company elected instead to partner with Travers Collins & Company, a marketing communications agency with expertise in investor relations.

We reviewed numerous annual reports from competitors and peers within National Fuel's industry, not only to get the agency up to speed on the key players in this market, but also to understand how they positioned themselves. This provided us with some good examples and ideas, allowing us to evaluate how we could differentiate National Fuel from the pack.

Execution

For the 2005 report, we considered various potential themes, ultimately landing on three key adjectives that summed up National Fuel as an investment: "Strong. Balanced. Reliable." That said it all, as the company was large and financially healthy; its revenue and earnings sources were highly diversified; and its track record of consistent performance was clearly impressive. This translated nicely to the inside, allowing us to assign each theme word to metaphorically and visually represent the company's three largest segments. We added an introductory paragraph to the first spread, which allowed us to "pay off" the cover by explaining the theme, and provided a preview of what the reader could expect to learn about National Fuel in this book.

We also decided to adjust the way the 2005 edition would be organized. We shortened the Letter to Shareholders, which previously was too long to hold most readers' attention. The new, shorter letter gave a company-wide overview of operating strategies and major developments. We followed that with a Review of Operations in which each segment was highlighted and segment-specific tactics and initiatives were discussed.

An online version of the annual report was also created and posted for free download from the company's website, and push emails were used to notify those people contained within its investor database.

Results

This piece, a key component in the company's strategic efforts to reach the financial community, provided clear and compelling evidence of the financial strength and long-term success National Fuel represents. And while an annual report can never take total credit (or blame) for a stock's price, NFG shares reached seven record highs during fiscal 2006 - despite a nearly one-million-share increase in weighted average shares outstanding from 2005 to 2006. Its average daily trading volume reached a record as well, climbing more than 38% to 445,000 shares, up from the previous record of 323,000 shares the year prior. 

In addition, The League of American Communication Professionals (LACP) judged this book to be among the top 15% of the nearly 2,000 entries its 2006 annual report competition received. National Fuel also earned an Honors award within its industry, ranking 5th out of 57 in a competition in which less than one out of five entries earned honors of any kind.