NATIONAL FUEL GAS CO - FORM 8-K - EX-99

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8-K - 8-K - NATIONAL FUEL GAS CO	d346719d8k.htm

Exhibit 99

LOGO

Release Date:

National Fuel Gas Company

Financial

News

Immediate May 3, 2012

6363 Main Street/Williamsville, NY 14221

Timothy Silverstein

Investor Relations

716-857-6987

David P. Bauer

Treasurer

716-857-7318

NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS

WILLIAMSVILLE, NY: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the second quarter of fiscal 2012 and for the six months ended March 31, 2012.

HIGHLIGHTS

•

Earnings for the second quarter were $67.4 million or $0.81 per share. During the quarter Seneca Resources Corporation (“Seneca”) recorded the effect of the new Pennsylvania impact fee. The fee, which applies to all Marcellus Shale wells drilled in Pennsylvania both prior to and subsequent to passage of the bill, reduced current quarter earnings by $6.4 million or $0.08 per share. Excluding the impact fee, operating results before items impacting comparability (“Operating Results”) for the second quarter of fiscal 2012 were $73.8 million or $0.89 per share.

•

In the Pipeline and Storage segment, second quarter earnings increased $1.9 million, or $0.02 per share, largely driven by the impact of the Line N Expansion and Tioga County Extension projects that were placed in service during the first quarter. Also, as part of the ongoing expansion of the Company’s pipeline and gathering infrastructure, construction of National Fuel Gas Midstream Corporation’s Trout Run Gathering System is nearing completion and is expected to be in service during the third quarter of fiscal 2012.

•

Seneca’s production of crude oil and natural gas in the current quarter was 18.4 billion cubic feet equivalent (“Bcfe”) compared to 18.2 Bcfe in the second quarter of 2011. Excluding 2011 production from the Gulf of Mexico assets that Seneca sold in April, 2011, Seneca’s production increased approximately 18%. Appalachian production increased approximately 22% to 13.3 Bcfe, including production from the Marcellus Shale of 11.5 Bcfe. California crude oil production increased approximately 11.5%. Production for the entire 2012 fiscal year is projected to be between 81 and 90 Bcfe.

•

A conference call is scheduled for Friday, May 4, 2012, at 11 a.m. Eastern Time.

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MANAGEMENT COMMENTS

David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas Company, stated: “The combined effects of declining natural gas prices realized by our Exploration and Production segment, and the warmest winter on record in our Utility segment’s Pennsylvania service territory, were evident in our second quarter results. Since these factors are beyond our control, our focus instead remains on the ongoing financial and operational strength of National Fuel.

“We continue to make strategic decisions intended to maximize the long-term value of our asset base. During the quarter, Seneca reduced its rig count in Appalachia by one-third to four rigs, and plans to drop an additional rig in the third quarter. At that time, there will be two development rigs and one rig dedicated to the ongoing delineation of Seneca’s prospects in the Utica Shale and rich-gas regions of the Marcellus. With no near-term lease expiration concerns, our primary objective is to safeguard both the long-term value of these assets and the overall strength of our balance sheet.

“At the same time, we continue to invest capital in our California oil assets, where we saw an 11.5 percent increase in crude oil production over last year’s quarter. We also remain focused on the expansion of our pipeline network, completing two projects last fall which contributed to the increase in the Pipeline and Storage segment’s earnings. Progress is continuing on several additional projects expected to be in service in the coming year, providing additional growth within our pipeline businesses.

“As we’ve said in the past, we believe our integrated business model creates long-term value for our shareholders through all economic cycles. The low natural gas price environment will be difficult for independent producers, but our diverse asset base and strong balance sheet positions us well to meet any challenges that we may encounter.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended March 31, 2012, of $67.4 million, or $0.81 per share, compared to the prior year’s second quarter earnings of $115.6 million, or $1.38 per share, a decrease of $48.2 million or $0.57 per share. The decrease is mainly due to the 2011 gain of $31.4 million, or $0.38 per share, on the sale of Horizon Power Inc’s interest in certain entities that owned landfill gas electric generation assets in the All Other category. Lower earnings in the Exploration and Production, Utility and Energy Marketing segments also contributed to the decrease in earnings. (Note: All references to earnings per share are to diluted earnings per share, and all amounts used in the discussion of earnings and operating results before items impacting comparability (“Operating Results”) are after tax unless otherwise noted.)

Consolidated earnings for the six months ended March 31, 2012, of $128.1 million, or $1.53 per share, decreased $46.1 million, or $0.55 per share, from the same period in the prior year, where earnings were $174.2 million or $2.08 per share.

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Page 2.


	Three Months Ended March 31,					Six Months Ended March 31,
	2012		2011			2012		2011
(in thousands except per share amounts)
Reported GAAP earnings	$	67,392	$	115,611		$	128,091	$	174,154
Items impacting comparability¹:
Pennsylvania impact fee		6,400					6,400
Gain on sale of landfill gas electric generation investments				(31,418	)				(31,418	)

Operating Results	$	73,792	$	84,193		$	134,491	$	142,736

Reported GAAP earnings per share	$	0.81	$	1.38		$	1.53	$	2.08
Items impacting comparability¹:
Pennsylvania impact fee		0.08					0.08
Gain on sale of landfill gas electric generation investments				(0.38	)				(0.38	)

Operating Results	$	0.89	$	1.00		$	1.61	$	1.70

¹	See discussion of these individual items below.

As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s financial results when comparing the quarter and six months ended March 31, 2012, to the comparable periods in fiscal 2011. Excluding these items, Operating Results for the current quarter of $73.8 million, or $0.89 per share, decreased $10.4 million, or $0.11 per share, from the prior year’s second quarter where Operating Results were $84.2 million or $1.00 per share. Excluding these items, Operating Results for the six months ended March 31, 2012, of $134.5 million, or $1.61 per share, decreased $8.2 million, or $0.09 per share, from the same period in the prior year, where Operating Results were $142.7 million or $1.70 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form at pages 9 and 10 of this report. It may be helpful to refer to those tables while reviewing this discussion.

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves in California and Appalachia. Seneca completed the sale of its offshore Gulf of Mexico assets in April 2011.

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Page 3.

The Exploration and Production segment’s earnings in the second quarter of fiscal 2012 of $22.2 million, or $0.27 per share, decreased $11.1 million, or $0.13 per share, when compared with the prior year’s second quarter.

In February 2012, the Commonwealth of Pennsylvania passed a natural gas impact fee. The legislation, which covers essentially all of Seneca’s Marcellus Shale wells, imposes an annual fee for a period of fifteen years on each well drilled. The impact fee is adjusted annually based on three factors: the age of the well, changes in the Consumer Price Index, and the average monthly NYMEX price for natural gas. The fee is retroactive and applies to wells drilled in the current fiscal year, and in all previous years. The impact fee increased property, franchise and other taxes in the current year’s second quarter by $9.8 million (pre-tax). Of this amount $1.9 million (pre-tax) relates to the second quarter of fiscal 2012, $2.0 million (pre-tax) to the first quarter of fiscal 2012 and $5.9 million (pre-tax) to prior fiscal years.

Excluding the impact fee, the Exploration and Production segment’s Operating Results in the second quarter of fiscal 2012 were $28.6 million, or $0.35 per share, a decrease of $4.7 million, or $0.05 per share when compared with the prior year’s second quarter.

Overall production of natural gas and crude oil for the current quarter of 18.4 Bcfe increased approximately 0.2 Bcfe compared to the prior year’s second quarter. Excluding Gulf of Mexico production of 2.6 Bcfe due to the sale of Seneca’s offshore Gulf of Mexico assets, production increased approximately 17.8 percent or 2.8 Bcfe. Production from Seneca’s Appalachia properties increased approximately 21.7 percent, mainly due to a 2.5 Bcfe, or 27.8 percent increase, in production from Marcellus wells. Crude oil production in California increased 11.5 percent due to additional wells drilled at the Sespe and Midway Sunset fields.

Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2012, was $4.64 per thousand cubic feet (“Mcf”), a decrease of $0.68 per Mcf compared to the prior year’s second quarter. Higher crude oil prices realized after hedging increased earnings. The weighted average oil price received by Seneca (after hedging) for the quarter ended March 31, 2012, was $93.40 per Barrel (“Bbl”), an increase of $11.12 per Bbl.

Depletion, lease operating expenses (“LOE”) and general and administrative expenses (“G&A”) for the current year’s second quarter increased over last year’s second quarter. On a per unit basis, depletion increased $0.11 per thousand cubic feet equivalent (“Mcfe”) due to higher capital spending in the East. LOE increased $0.10 per Mcfe largely due to higher transportation and compression costs and an increase in costs on non-operated joint venture wells. G&A increased $0.08 per Mcfe due to higher labor expenses including increased staffing, mainly in the East.

The Exploration and Production segment’s earnings of $52.5 million, or $0.63 per share, for the six months ended March 31, 2012, decreased $8.2 million, or $0.10 per share, when compared with the six months ended March 31, 2011. Excluding the impact fee discussed above, the Exploration and Production segment’s Operating Results for the six months ended March 31, 2012, were $58.9 million, or $0.71 per share, a decrease of $1.8 million, or $0.02 per share, when compared with the prior year’s six month period.

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Page 4.

Overall production for the six months ended March 31, 2012, increased approximately 8.2 percent. Excluding Gulf of Mexico production of 5.3 Bcfe due to the April 2011 sale of Seneca’s offshore Gulf of Mexico assets, production increased approximately 28.0 percent or 8.0 Bcfe. Production from Seneca’s Appalachia properties increased approximately 38.8 percent, mainly due to a 7.9 Bcfe or 53.0 percent increase in production from Marcellus wells. Crude oil production in California increased 9.9 percent.

Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the six-month period ended March 31, 2012, was $4.71 per Mcf, a decrease of $0.59 per Mcf. Higher crude oil prices realized after hedging increased earnings. The weighted average crude oil price received by Seneca (after hedging) for the six-month period ended March 31, 2012, was $92.39 per Bbl, an increase of $13.18 per Bbl.

Depletion, LOE and G&A for the six months ended March 31, 2012 increased compared to the prior year’s six-month period due in part to the higher production activity discussed above. On a per unit basis, depletion increased $0.12 per Mcfe, LOE increased $0.01 per Mcfe and G&A increased $0.06 per Mcfe primarily due to the reasons described above for the quarter.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation and Empire Pipeline, Inc. The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and western Pennsylvania.

The Pipeline and Storage segment’s earnings of $12.8 million, or $0.15 per share, for the quarter ended March 31, 2012, increased $1.9 million, or $0.02 per share, when compared with the same period in the prior fiscal year. The increase in earnings is mainly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects, which were completed and placed in service in the current year’s first quarter and offset a decrease in revenue due to the turnback of other pipeline capacity at Niagara. Lower operating expenses also contributed to the increase in earnings for the quarter. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and higher depreciation expense.

The Pipeline and Storage segment’s earnings of $22.8 million, or $0.27 per share, for the six months ended March 31, 2012, increased $3.3 million, or $0.04 per share, when compared with the same period in the prior fiscal year. The increase was mostly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects noted above. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and higher depreciation.

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation, which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

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Page 5.

The Utility segment’s earnings of $28.3 million, or $0.34 per share, for the quarter ended March 31, 2012, decreased $4.8 million, or $0.06 per share, when compared with the same period in the prior fiscal year. Warmer weather in Pennsylvania was the main reason for the decrease in earnings in the current year’s second quarter. Temperatures in Pennsylvania were 27.4 percent warmer in the current year’s second quarter than the second quarter of 2011. In New York, the warmer weather did not have a significant impact on earnings for the quarter. The impact of weather variations on earnings in New York is mitigated by that jurisdiction’s weather normalization clause.

The Utility segment’s earnings of $47.6 million, or $0.57 per share, for the six months ended March 31, 2012, decreased from earnings of $56.1 million, or $0.67 per share, for the six months ended March 31, 2011. Warmer weather in Pennsylvania and the impact of certain regulatory adjustments were the main reasons for the decrease in earnings. Higher operating expenses also reduced earnings.

Energy Marketing

National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy Marketing segment. NFR markets natural gas to industrial, wholesale, commercial, public authority and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.

The Energy Marketing segment’s earnings for the quarter ended March 31, 2012, of $3.3 million, or $0.04 per share decreased $3.0 million, or $0.03 per share, from the prior year’s second quarter earnings of $6.3 million or $0.07 per share. Earnings for the six months ended March 31, 2012, of $3.7 million, or $0.04 per share, decreased $3.5 million, or $0.05 per share, from the prior year’s six-month period. The decrease in earnings in both the current year’s second quarter and six-month period was mainly due to lower average margins and lower retail sales volumes. The decrease in margins was primarily driven by a lower benefit derived from the Energy Marketing segment’s contracts for storage capacity. The lower sales volumes were largely a result of warmer weather.

Corporate and All Other

The Corporate and All Other category includes the following active, wholly owned subsidiaries of the Company: National Fuel Gas Midstream Corporation (“Midstream”), formed to build, own and operate natural gas processing and pipeline gathering facilities in the Appalachian region; and Seneca’s Northeast division, which markets high quality hardwoods from Appalachian land holdings.

Earnings in the Corporate and All Other category for the quarter ended March 31, 2012, were $0.8 million, or $0.01 per share, a decrease of $31.2 million, or $0.37 per share, compared to the prior year’s second quarter earnings. The comparability of the results for the quarters ended March 31, 2012, and March 31, 2011, was impacted by a $31.4 million gain realized on the February 2011 Horizon Power, Inc. sale of its interest in certain entities that owned landfill gas electric generation assets.

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Page 6.

Excluding the item noted above, Operating Results in the Corporate and All Other category of $0.8 million, or $0.01 per share, for the quarter ended March 31, 2012, increased from Operating Results of $0.6 million, or less than $0.01 per share in the prior year’s second quarter. The increase in earnings is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations and Seneca’s increased sales of standing timber.

Earnings in the Corporate and All Other category for the six months ended March 31, 2012, were $1.4 million, or $0.02 per share, a decrease of $29.2 million, or $0.34 per share, when compared to the earnings for the six months ended March 31, 2011. The comparability of the results for the six months ended March 31, 2012, and the prior year’s six-month period was impacted by the $31.4 million gain on the sale of landfill gas electric generation assets described above.

Excluding this item, Operating Results of $1.4 million, or $0.02 per share, for the six-month period ended March 31, 2012, compares to a loss of $0.8 million, or $0.02 per share, in the prior year’s six-month period. The increase in Operating Results is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations and Seneca’s increased sales of standing timber.

EARNINGS GUIDANCE

The Company is updating its earnings guidance for fiscal 2012 to reflect actual results for the six months ended March 31, 2012, and a change in assumed natural gas prices for the second half of fiscal 2012. The revised GAAP earnings range is $2.30 to $2.45 per share. This includes forecast oil and gas production for fiscal 2012 for the Exploration and Production segment in the range between 81 and 90 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential of $2.25 per MMBtu for natural gas and $100 per Bbl for crude oil.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 4, 2012, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-831-6162, and using the passcode “73317573.” For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. (Eastern Time) at the same website link and by phone at (toll-free) 1-888-286-8010 using passcode “11631131.” Both the webcast and telephonic replay will be available until the close of business on Friday, May 11, 2012.

National Fuel is an integrated energy company with $5.8 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available at: www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

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Page 7.


Analyst Contact:	Timothy J. Silverstein	(716) 857-6987
Media Contact:	Donna L. DeCarolis	(716) 857-7872

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; changes in the price of natural gas or oil; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability, price or accounting treatment of derivative financial instruments; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; changes in price differential between similar quantities of natural gas at different geographic locations, and the effect of such changes on the demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of oil or natural gas having different quality, heating value, geographic location or delivery date; significant differences between the Company’s projected and actual capital expenditures and operating expenses; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

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Page 8.

NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS

QUARTER ENDED MARCH 31, 2012


	Exploration &			Pipeline &						Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Utility			Marketing			All Other			Consolidated*
Second quarter 2011 GAAP earnings	$	33,299		$	10,955		$	33,081		$	6,299		$	31,977		$	115,611
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														(31,418	)		(31,418	)

Second quarter 2011 operating results		33,299			10,955			33,081			6,299			559			84,193

Drivers of operating results
Higher (lower) Appalachian and West Coast crude oil prices		6,151															6,151
Higher (lower) Appalachian and West Coast natural gas prices		(6,644	)														(6,644	)
Higher (lower) Appalachian and West Coast natural gas production		8,230															8,230
Higher (lower) Appalachian and West Coast crude oil production		3,700															3,700
Lower Gulf Coast natural gas and crude oil revenues		(12,524	)														(12,524	)
Lower (higher) lease operating expenses		(1,308	)														(1,308	)
Lower (higher) depreciation / depletion		(1,530	)		(423	)											(1,953	)
Higher (lower) processing plant revenues		664															664

Higher (lower) transportation revenues					4,964												4,964
Higher (lower) efficiency gas revenues					(2,887	)											(2,887	)
Higher (lower) gathering and processing revenues														242			242
Lower (higher) operating expenses		(838	)		606			(433	)								(665	)
Lower (higher) property, franchise and other taxes		1,526															1,526

Warmer weather								(4,379	)								(4,379	)

Higher (lower) income from unconsolidated subsidiaries														(361	)		(361	)

Higher (lower) margins											(3,026	)		519			(2,507	)

Higher (lower) interest income														2,390			2,390
(Higher) lower interest expense		(2,038	)					398						(2,276	)		(3,916	)

Lower (higher) income tax expense / effective tax rate		(337	)											(170	)		(507	)

All other / rounding		241			(374	)		(392	)		37			(129	)		(617	)


Second quarter 2012 operating results		28,592			12,841			28,275			3,310			774			73,792
Items impacting comparability:
Pennsylvania impact fee		(6,400	)														(6,400	)

Second quarter 2012 GAAP earnings	$	22,192		$	12,841		$	28,275		$	3,310		$	774		$	67,392

*	Amounts do not reflect intercompany eliminations

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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE

QUARTER ENDED MARCH 31, 2012



	Exploration &			Pipeline &						Energy			Corporate /
	Production			Storage			Utility			Marketing			All Other			Consolidated*
Second quarter 2011 GAAP earnings	$	0.40		$	0.13		$	0.40		$	0.07		$	0.38		$	1.38
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														(0.38	)		(0.38	)

Second quarter 2011 operating results		0.40			0.13			0.40			0.07			—			1.00

Drivers of operating results
Higher (lower) Appalachian and West Coast crude oil prices		0.07															0.07
Higher (lower) Appalachian and West Coast natural gas prices		(0.08	)														(0.08	)
Higher (lower) Appalachian and West Coast natural gas production		0.10															0.10
Higher (lower) Appalachian and West Coast crude oil production		0.04															0.04
Lower Gulf Coast natural gas and crude oil revenues		(0.15	)														(0.15	)
Lower (higher) lease operating expenses		(0.02	)														(0.02	)
Lower (higher) depreciation / depletion		(0.02	)		(0.01	)											(0.03	)
Higher (lower) processing plant revenues		0.01															0.01

Higher (lower) transportation revenues					0.06												0.06
Higher (lower) efficiency gas revenues					(0.03	)											(0.03	)
Higher (lower) gathering and processing revenues														—			—
Lower (higher) operating expenses		(0.01	)		0.01			(0.01	)								(0.01	)
Lower (higher) property, franchise and other taxes		0.02															0.02

Warmer weather								(0.05	)								(0.05	)

Higher (lower) income from unconsolidated subsidiaries														—			—

Higher (lower) margins											(0.04	)		0.01			(0.03	)

Higher (lower) interest income														0.03			0.03
(Higher) lower interest expense		(0.02	)					—						(0.03	)		(0.05	)

Lower (higher) income tax expense / effective tax rate														—			—

All other / rounding		0.01			(0.01	)		—			0.01			—			0.01


Second quarter 2012 operating results		0.35			0.15			0.34			0.04			0.01			0.89
Items impacting comparability:
Pennsylvania impact fee		(0.08	)														(0.08	)

Second quarter 2012 GAAP earnings	$	0.27		$	0.15		$	0.34		$	0.04		$	0.01		$	0.81

*	Amounts do not reflect intercompany eliminations

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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS

SIX MONTHS ENDED MARCH 31, 2012


	Exploration &			Pipeline &						Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Utility			Marketing			All Other			Consolidated**
Six months ended March 31, 2011 GAAP earnings	$	60,672		$	19,533		$	56,071		$	7,231		$	30,647		$	174,154
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														(31,418	)		(31,418	)

Six months ended March 31, 2011 operating results		60,672			19,533			56,071			7,231			(771	)		142,736

Drivers of operating results
Higher (lower) crude oil prices		13,827															13,827
Higher (lower) natural gas prices		(11,863	)														(11,863	)
Higher (lower) natural gas production		25,324															25,324
Higher (lower) crude oil production		6,311															6,311
Lower Gulf Coast natural gas and crude oil revenues		(24,624	)														(24,624	)
Lower (higher) lease operating expenses		(2,124	)														(2,124	)
Lower (higher) depreciation / depletion		(6,611	)		(1,141	)											(7,752	)
Higher (lower) processing plant revenues		822															822

Higher (lower) transportation revenues					7,741												7,741
Higher (lower) efficiency gas revenues					(3,665	)											(3,665	)
Higher (lower) gathering and processing revenues														1,260			1,260
Lower (higher) operating expenses		(2,242	)					(755	)								(2,997	)
Lower (higher) property, franchise and other taxes		1,711															1,711

Warmer weather in Pennsylvania								(6,646	)								(6,646	)
Regulatory true-up adjustments								(873	)								(873	)

Higher (lower) income from unconsolidated subsidiaries														302			302

Higher (lower) margins											(3,465	)		913			(2,552	)

Higher AFUDC *					612												612
Higher (lower) interest income														1,884			1,884
Lower (higher) interest expense		(1,476	)					772						(1,590	)		(2,294	)

(Higher) lower income tax expense		(1,267	)					(652	)					(363	)		(2,282	)

All other / rounding		447			(279	)		(289	)		(27	)		(219	)		(367	)


Six months ended March 31, 2012 operating results		58,907			22,801			47,628			3,739			1,416			134,491
Items impacting comparability:
Pennsylvania impact fee		(6,400	)														(6,400	)

Six months ended March 31, 2012 GAAP earnings	$	52,507		$	22,801		$	47,628		$	3,739		$	1,416		$	128,091

*	AFUDC = Allowance for Funds Used During Construction

**	Amounts do not reflect intercompany eliminations

Page 11

NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE

SIX MONTHS ENDED MARCH 31, 2012


	Exploration &			Pipeline &						Energy			Corporate /
	Production			Storage			Utility			Marketing			All Other			Consolidated**
Six months ended March 31, 2011 GAAP earnings	$	0.73		$	0.23		$	0.67		$	0.09		$	0.36		$	2.08
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														(0.38	)		(0.38	)

Six months ended March 31, 2011 operating results		0.73			0.23			0.67			0.09			(0.02	)		1.70

Drivers of operating results
Higher (lower) crude oil prices		0.17															0.17
Higher (lower) natural gas prices		(0.14	)														(0.14	)
Higher (lower) natural gas production		0.30															0.30
Higher (lower) crude oil production		0.08															0.08
Lower Gulf Coast natural gas and crude oil revenues		(0.29	)														(0.29	)
Lower (higher) lease operating expenses		(0.03	)														(0.03	)
Lower (higher) depreciation / depletion		(0.08	)		(0.01	)											(0.09	)
Higher (lower) processing plant revenues		0.01															0.01

Higher (lower) transportation revenues					0.09												0.09
Higher (lower) efficiency gas revenues					(0.04	)											(0.04	)
Higher (lower) gathering and processing revenues														0.02			0.02
Lower (higher) operating expenses		(0.03	)					(0.01	)								(0.04	)
Lower (higher) property, franchise and other taxes		0.02															0.02

Warmer weather in Pennsylvania								(0.08	)								(0.08	)
Regulatory true-up adjustments								(0.01	)								(0.01	)

Higher (lower) income from unconsolidated subsidiaries														—			—

Higher (lower) margins											(0.04	)		0.01			(0.03	)

Higher AFUDC *					0.01												0.01
Higher (lower) interest income														0.02			0.02
Lower (higher) interest expense		(0.02	)					0.01						(0.02	)		(0.03	)

(Higher) lower income tax expense		(0.02	)					(0.01	)					—			(0.03	)

All other / rounding		0.01			(0.01	)		—			(0.01	)		0.01			—


Six months ended March 31, 2012 operating results		0.71			0.27			0.57			0.04			0.02			1.61
Items impacting comparability:
Pennsylvania impact fee		(0.08	)														(0.08	)

Six months ended March 31, 2012 GAAP earnings	$	0.63		$	0.27		$	0.57		$	0.04		$	0.02		$	1.53

*	AFUDC = Allowance for Funds Used During Construction

**	Amounts do not reflect intercompany eliminations

Page 12

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES



(Thousands of Dollars, except per share amounts)	Three Months Ended March 31, (Unaudited)						Six Months Ended March 31, (Unaudited)
SUMMARY OF OPERATIONS	2012			2011			2012			2011
Operating Revenues	$	552,309		$	660,881		$	984,732		$	1,111,829

Operating Expenses:
Purchased Gas		208,537			306,595			340,730			469,633
Operation and Maintenance		118,047			116,721			218,106			214,171
Property, Franchise and Other Taxes		30,477			23,798			49,707			43,534
Depreciation, Depletion and Amortization		63,151			60,011			125,698			113,324

		420,212			507,125			734,241			840,662

Operating Income		132,097			153,756			250,491			271,167
Other Income (Expense):
Gain on Sale of Unconsolidated Subsidiaries		—			50,879			—			50,879
Interest Income		192			68			1,297			951
Other Income		1,654			2,424			2,990			2,317
Interest Expense on Long-Term Debt		(20,425	)		(17,926	)		(39,066	)		(38,118	)
Other Interest Expense		(1,253	)		(1,454	)		(2,023	)		(2,855	)

Income Before Income Taxes		112,265			187,747			213,689			284,341
Income Tax Expense		44,873			72,136			85,598			110,187

Net Income Available for Common Stock	$	67,392		$	115,611		$	128,091		$	174,154

Earnings Per Common Share:
Basic	$	0.81		$	1.40		$	1.54		$	2.12

Diluted	$	0.81		$	1.38		$	1.53		$	2.08

Weighted Average Common Shares:
Used in Basic Calculation		83,107,884			82,400,851			82,988,750			82,311,162

Used in Diluted Calculation		83,678,261			83,673,977			83,712,681			83,561,775

Page 13

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Thousands of Dollars)	March 31, 2012			September 30, 2011
ASSETS
Property, Plant and Equipment	$	6,180,827		$	5,646,918
Less - Accumulated Depreciation, Depletion and Amortization		1,750,636			1,646,394

Net Property, Plant and Equipment		4,430,191			4,000,524

Current Assets:
Cash and Temporary Cash Investments		192,243			80,428
Hedging Collateral Deposits		18,872			19,701
Receivables - Net		168,757			131,885
Unbilled Utility Revenue		31,318			17,284
Gas Stored Underground		16,195			54,325
Materials and Supplies - at average cost		28,395			27,932
Other Current Assets		40,354			38,334
Deferred Income Taxes		20,281			15,423

Total Current Assets		516,415			385,312

Other Assets:
Recoverable Future Taxes		146,561			144,377
Unamortized Debt Expense		14,552			10,571
Other Regulatory Assets		504,399			510,986
Deferred Charges		7,993			5,552
Other Investments		85,555			79,365
Goodwill		5,476			5,476
Fair Value of Derivative Financial Instruments		121,760			76,085
Other		2,594			2,836

Total Other Assets		888,890			835,248

Total Assets	$	5,835,496		$	5,221,084

CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 83,173,850 Shares and 82,812,677 Shares, Respectively	$	83,174		$	82,813
Paid in Capital		660,495			650,749
Earnings Reinvested in the Business		1,275,107			1,206,022

Total Common Shareholders' Equity Before Items of Other Comprehensive Loss		2,018,776			1,939,584
Accumulated Other Comprehensive Loss		(51,889	)		(47,699	)

Total Comprehensive Shareholders’ Equity		1,966,887			1,891,885
Long-Term Debt, Net of Current Portion		1,149,000			899,000

Total Capitalization		3,115,887			2,790,885

Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		20,000			40,000
Current Portion of Long-Term Debt		250,000			150,000
Accounts Payable		98,053			126,709
Amounts Payable to Customers		17,327			15,519
Dividends Payable		29,527			29,399
Interest Payable on Long-Term Debt		29,491			25,512
Customer Advances		204			19,643
Customer Security Deposits		17,021			17,321
Other Accruals and Current Liabilities		197,952			94,787
Fair Value of Derivative Financial Instruments		66,887			9,728

Total Current and Accrued Liabilities		726,462			528,618

Deferred Credits:
Deferred Income Taxes		1,040,789			955,384
Taxes Refundable to Customers		65,550			65,543
Unamortized Investment Tax Credit		2,296			2,586
Cost of Removal Regulatory Liability		146,771			135,940
Other Regulatory Liabilities		37,327			31,026
Pension and Other Post-Retirement Liabilities		472,717			481,520
Asset Retirement Obligations		77,230			75,731
Other Deferred Credits		150,467			153,851

Total Deferred Credits		1,993,147			1,901,581

Commitments and Contingencies		—			—

Total Capitalization and Liabilities	$	5,835,496		$	5,221,084

Page 14

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six Months Ended March 31,
(Thousands of Dollars)	2012			2011
Operating Activities:
Net Income Available for Common Stock	$	128,091		$	174,154
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Gain on Sale of Unconsolidated Subsidiaries		—			(50,879	)
Depreciation, Depletion and Amortization		125,698			113,324
Deferred Income Taxes		81,696			106,510
Excess Tax Benefits Associated with Stock-Based Compensation Awards		(1,076	)		—
Other		4,269			5,703
Change in:
Hedging Collateral Deposits		829			(50,692	)
Receivables and Unbilled Utility Revenue		(50,906	)		(123,393	)
Gas Stored Underground and Materials and Supplies		37,156			30,144
Prepayments and Other Current Assets		(943	)		57,447
Accounts Payable		(28,656	)		33,234
Amounts Payable to Customers		1,808			(12,634	)
Customer Advances		(19,439	)		(24,938	)
Customer Security Deposits		(300	)		(256	)
Other Accruals and Current Liabilities		65,039			93,473
Other Assets		(48,692	)		15,239
Other Liabilities		44,323			(23,214	)

Net Cash Provided by Operating Activities	$	338,897		$	343,222

Investing Activities:
Capital Expenditures	$	(499,607	)	$	(392,338	)
Net Proceeds from Sale of Unconsolidated Subsidiaries		—			59,365
Other		(789	)		(3,097	)

Net Cash Used in Investing Activities	$	(500,396	)	$	(336,070	)

Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper	$	(20,000	)	$	—
Excess Tax Benefits Associated with Stock-Based Compensation Awards		1,076			—
Reduction of Long-Term Debt		(150,000	)		(200,000	)
Net Proceeds From Issuance of Long-Term Debt		496,085			—
Dividends Paid on Common Stock		(58,877	)		(56,723	)
Net Proceeds From Issuance (Repurchase) of Common Stock		5,030			(2,833	)

Net Cash Provided By (Used in) Financing Activities	$	273,314		$	(259,556	)

Net Increase (Decrease) in Cash and Temporary Cash Investments		111,815			(252,404	)
Cash and Temporary Cash Investments at Beginning of Period		80,428			397,171

Cash and Temporary Cash Investments at March 31	$	192,243		$	144,767

Page 15

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

		00000000			00000000			00000000			00000000			00000000			00000000
(Thousands of Dollars, except per share amounts)	Three Months Ended March 31,									Six Months Ended March 31,
EXPLORATION AND PRODUCTION SEGMENT	2012			2011			Variance			2012			2011			Variance
Total Operating Revenues	$	136,926		$	137,430		$	(504	)	$	272,899		$	257,598		$	15,301

Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		14,441			12,798			1,643			28,301			23,988			4,313
Lease Operating Expense		20,978			18,966			2,012			39,583			36,315			3,268
All Other Operation and Maintenance Expense		1,542			1,900			(358	)		3,074			3,942			(868	)
Property, Franchise and Other Taxes		12,188			4,690			7,498			14,734			7,520			7,214
Depreciation, Depletion and Amortization		42,339			39,984			2,355			83,822			73,652			10,170

		91,488			78,338			13,150			169,514			145,417			24,097

Operating Income		45,438			59,092			(13,654	)		103,385			112,181			(8,796	)
Other Income (Expense):
Interest Income		320			(51	)		371			668			(1	)		669
Other Interest Expense		(7,189	)		(3,906	)		(3,283	)		(12,493	)		(10,008	)		(2,485	)

Income Before Income Taxes		38,569			55,135			(16,566	)		91,560			102,172			(10,612	)
Income Tax Expense		16,377			21,836			(5,459	)		39,053			41,500			(2,447	)

Net Income	$	22,192		$	33,299		$	(11,107	)	$	52,507		$	60,672		$	(8,165	)

Net Income Per Share (Diluted)	$	0.27		$	0.40		$	(0.13	)	$	0.63		$	0.73		$	(0.10	)


	Three Months Ended March 31,									Six Months Ended March 31,
PIPELINE AND STORAGE SEGMENT	2012			2011			Variance			2012			2011			Variance
Revenues from External Customers	$	42,120		$	39,669		$	2,451		$	77,345		$	73,182		$	4,163
Intersegment Revenues		21,294			20,632			662			42,359			40,514			1,845

Total Operating Revenues		63,414			60,301			3,113			119,704			113,696			6,008

Operating Expenses:
Purchased Gas		127			8			119			128			(25	)		153
Operation and Maintenance		20,529			21,462			(933	)		40,042			39,983			59
Property, Franchise and Other Taxes		5,505			5,397			108			10,913			10,608			305
Depreciation, Depletion and Amortization		9,892			9,242			650			19,983			18,229			1,754

		36,053			36,109			(56	)		71,066			68,795			2,271

Operating Income		27,361			24,192			3,169			48,638			44,901			3,737
Other Income (Expense):
Interest Income		34			103			(69	)		90			178			(88	)
Other Income		481			449			32			1,507			715			792
Other Interest Expense		(6,566	)		(6,505	)		(61	)		(12,899	)		(13,082	)		183

Income Before Income Taxes		21,310			18,239			3,071			37,336			32,712			4,624
Income Tax Expense		8,469			7,284			1,185			14,535			13,179			1,356

Net Income	$	12,841		$	10,955		$	1,886		$	22,801		$	19,533		$	3,268

Net Income Per Share (Diluted)	$	0.15		$	0.13		$	0.02		$	0.27		$	0.23		$	0.04

Page 16

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

		000000000000			000000000000			000000000000			000000000000			000000000000			000000000000
(Thousands of Dollars, except per share amounts)	Three Months Ended March 31,									Six Months Ended March 31,
UTILITY SEGMENT	2012			2011			Variance			2012			2011			Variance
Revenues from External Customers	$	296,786		$	361,745		$	(64,959	)	$	505,596		$	604,587		$	(98,991	)
Intersegment Revenues		5,551			6,635			(1,084	)		9,940			11,205			(1,265	)

Total Operating Revenues		302,337			368,380			(66,043	)		515,536			615,792			(100,256	)

Operating Expenses:
Purchased Gas		166,845			224,274			(57,429	)		275,250			361,049			(85,799	)
Operation and Maintenance		58,649			58,808			(159	)		103,982			104,025			(43	)
Property, Franchise and Other Taxes		12,024			12,960			(936	)		22,571			23,901			(1,330	)
Depreciation, Depletion and Amortization		10,505			10,382			123			21,066			20,623			443

		248,023			306,424			(58,401	)		422,869			509,598			(86,729	)

Operating Income		54,314			61,956			(7,642	)		92,667			106,194			(13,527	)
Other Income (Expense):
Interest Income		75			3			72			721			447			274
Other Income		435			279			156			677			596			81
Other Interest Expense		(8,240	)		(8,852	)		612			(16,400	)		(17,589	)		1,189

Income Before Income Taxes		46,584			53,386			(6,802	)		77,665			89,648			(11,983	)
Income Tax Expense		18,309			20,305			(1,996	)		30,037			33,577			(3,540	)

Net Income	$	28,275		$	33,081		$	(4,806	)	$	47,628		$	56,071		$	(8,443	)

Net Income Per Share (Diluted)	$	0.34		$	0.40		$	(0.06	)	$	0.57		$	0.67		$	(0.10	)


	Three Months Ended March 31,									Six Months Ended March 31,
ENERGY MARKETING SEGMENT	2012			2011			Variance			2012			2011			Variance
Revenues from External Customers	$	75,223		$	121,321		$	(46,098	)	$	126,445		$	174,973		$	(48,528	)
Intersegment Revenues		269			—			269			556			—			556

Total Operating Revenues		75,492			121,321			(45,829	)		127,001			174,973			(47,972	)

Operating Expenses:
Purchased Gas		68,271			109,445			(41,174	)		117,361			160,003			(42,642	)
Operation and Maintenance		1,826			1,582			244			3,572			3,140			432
Property, Franchise and Other Taxes		14			18			(4	)		23			26			(3	)
Depreciation, Depletion and Amortization		23			9			14			47			18			29

		70,134			111,054			(40,920	)		121,003			163,187			(42,184	)

Operating Income		5,358			10,267			(4,909	)		5,998			11,786			(5,788	)
Other Income (Expense):
Interest Income		33			26			7			69			35			34
Other Income		27			25			2			62			33			29
Other Interest Expense		(4	)		(5	)		1			(8	)		(10	)		2

Income Before Income Taxes		5,414			10,313			(4,899	)		6,121			11,844			(5,723	)
Income Tax Expense		2,104			4,014			(1,910	)		2,382			4,613			(2,231	)

Net Income	$	3,310		$	6,299		$	(2,989	)	$	3,739		$	7,231		$	(3,492	)

Net Income Per Share (Diluted)	$	0.04		$	0.07		$	(0.03	)	$	0.04		$	0.09		$	(0.05	)

Page 17

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

		00000000			00000000			00000000			00000000			00000000			00000000
(Thousands of Dollars, except per share amounts)	Three Months Ended March 31,									Six Months Ended March 31,
ALL OTHER	2012			2011			Variance			2012			2011			Variance
Revenues from External Customers	$	1,023		$	472		$	551		$	1,960		$	1,021		$	939
Intersegment Revenues		3,159			2,538			621			6,520			4,216			2,304

Total Operating Revenues		4,182			3,010			1,172			8,480			5,237			3,243

Operating Expenses:
Purchased Gas		—			—			—			—			49			(49	)
Operation and Maintenance		969			1,129			(160	)		1,918			2,187			(269	)
Property, Franchise and Other Taxes		193			183			10			364			400			(36	)
Depreciation, Depletion and Amortization		198			207			(9	)		393			427			(34	)

		1,360			1,519			(159	)		2,675			3,063			(388	)

Operating Income		2,822			1,491			1,331			5,805			2,174			3,631
Other Income (Expense):
Gain on Sale of Unconsolidated Subsidiaries		—			50,879			(50,879	)		—			50,879			(50,879	)
Interest Income		37			85			(48	)		99			150			(51	)
Other Income		(74	)		509			(583	)		(149	)		(586	)		437
Other Interest Expense		(408	)		(550	)		142			(862	)		(1,095	)		233

Income Before Income Taxes		2,377			52,414			(50,037	)		4,893			51,522			(46,629	)
Income Tax Expense		1,038			20,233			(19,195	)		2,150			19,916			(17,766	)

Net Income	$	1,339		$	32,181		$	(30,842	)	$	2,743		$	31,606		$	(28,863	)

Net Income Per Share (Diluted)	$	0.02		$	0.38		$	(0.36	)	$	0.03		$	0.37		$	(0.34	)

Page 18

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

		1234567890			1234567890			1234567890			1234567890			1234567890			1234567890
(Thousands of Dollars, except per share amounts)	Three Months Ended March 31,									Six Months Ended March 31,
CORPORATE	2012			2011			Variance			2012			2011			Variance
Revenues from External Customers	$	231		$	244		$	(13	)	$	487		$	468		$	19
Intersegment Revenues		1,028			899			129			2,056			1,927			129

Total Operating Revenues		1,259			1,143			116			2,543			2,395			148

Operating Expenses:
Operation and Maintenance		3,708			3,648			60			7,056			7,010			46
Property, Franchise and Other Taxes		553			550			3			1,102			1,079			23
Depreciation, Depletion and Amortization		194			187			7			387			375			12

		4,455			4,385			70			8,545			8,464			81

Operating Loss		(3,196	)		(3,242	)		46			(6,002	)		(6,069	)		67
Other Income (Expense):
Interest Income		22,463			18,739			3,724			42,769			39,820			2,949
Other Income		785			1,162			(377	)		893			1,559			(666	)
Interest Expense on Long-Term Debt		(20,425	)		(17,926	)		(2,499	)		(39,066	)		(38,118	)		(948	)
Other Interest Expense		(1,616	)		(473	)		(1,143	)		(2,480	)		(749	)		(1,731	)

Loss Before Income Taxes		(1,989	)		(1,740	)		(249	)		(3,886	)		(3,557	)		(329	)
Income Tax Benefit		(1,424	)		(1,536	)		112			(2,559	)		(2,598	)		39

Net Loss	$	(565	)	$	(204	)	$	(361	)	$	(1,327	)	$	(959	)	$	(368	)

Net Loss Per Share (Diluted)	$	(0.01	)	$	—		$	(0.01	)	$	(0.01	)	$	(0.01	)	$	—

		1234567890			1234567890			1234567890			1234567890			1234567890			1234567890
	Three Months Ended March 31,									Six Months Ended March 31,
INTERSEGMENT ELIMINATIONS	2012			2011			Variance			2012			2011			Variance
Intersegment Revenues	$	(31,301	)	$	(30,704	)	$	(597	)	$	(61,431	)	$	(57,862	)	$	(3,569	)

Operating Expenses:
Purchased Gas		(26,706	)		(27,132	)		426			(52,009	)		(51,443	)		(566	)
Operation and Maintenance		(4,595	)		(3,572	)		(1,023	)		(9,422	)		(6,419	)		(3,003	)

		(31,301	)		(30,704	)		(597	)		(61,431	)		(57,862	)		(3,569	)

Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest Income		(22,770	)		(18,837	)		(3,933	)		(43,119	)		(39,678	)		(3,441	)
Other Interest Expense		22,770			18,837			3,933			43,119			39,678			3,441

Net Income	$	—		$	—		$	—		$	—		$	—		$	—

Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—

Page 19

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)

(Thousands of Dollars)

		0000000000			0000000000			0000000000			0000000000			0000000000			0000000000
	Three Months Ended March 31, (Unaudited)									Six Months Ended March 31, (Unaudited)
	2012			2011			Increase (Decrease)			2012			2011			Increase (Decrease)
Capital Expenditures:
Exploration and Production	$	217,254	⁽¹⁾⁽²⁾	$	135,364	⁽³⁾⁽⁴⁾	$	81,890		$	409,131	⁽¹⁾⁽²⁾	$	315,194	⁽³⁾⁽⁴⁾	$	93,937
Pipeline and Storage		19,031	⁽¹⁾⁽²⁾		30,279	⁽³⁾		(11,248	)		63,221	⁽¹⁾⁽²⁾		39,498	⁽³⁾		23,723
Utility		14,076			14,514			(438	)		25,340			25,435			(95	)
Energy Marketing		126			174			(48	)		266			261			5

Total Reportable Segments		250,487			180,331			70,156			497,958			380,388			117,570
All Other		12,233	⁽¹⁾⁽²⁾		1,440			10,793			43,637	⁽¹⁾⁽²⁾		2,269			41,368
Corporate		94			4			90			170			15			155

Total Capital Expenditures	$	262,814		$	181,775		$	81,039		$	541,765		$	382,672		$	159,093

⁽¹⁾

Capital expenditures for the quarter and six months ended March 31, 2012 include $93.6 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $12.9 million of accrued capital expenditures in the Pipeline and Storage segment, and $7.9 million of accrued capital expenditures in the All Other category. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2012 since they represent non-cash investing activities at that date.

⁽²⁾

Capital expenditures for the six months ended March 31, 2012 exclude $63.5 million of capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $7.3 million of capital expenditures in the Pipeline and Storage segment, and $1.4 million of capital expenditures in the All Other category. These amounts were accrued at September 30, 2011 and paid during the six months ended March 31, 2012. These amounts were excluded from the Consolidated Statements of Cash Flows at September 30, 2011 since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2012.

⁽³⁾

Capital expenditures for the quarter and six months ended March 31, 2011 include $43.9 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, and $2.0 million of accrued capital expenditures in the Pipeline and Storage segment. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2011 since they represented non-cash investing activities at that date.

⁽⁴⁾

Capital expenditures for the Exploration and Production segment for the six months ended March 31, 2011 exclude $55.5 million of capital expenditures, the majority of which was in the Appalachian region. This amount was accrued at September 30, 2010 and paid during the six months ended March 31, 2011. This amount was excluded from the Consolidated Statements of Cash Flows at September 30, 2010 since it represented a non-cash investing activity at that date. This amount has been included in the Consolidated Statement of Cash Flows at March 31, 2011.

DEGREE DAYS


							Percent Colder (Warmer) Than:
	Normal		2012		2011		Normal ⁽¹⁾			Last Year ⁽¹⁾
Three Months Ended March 31
Buffalo, NY		3,364		2,572		3,494		(23.5	)		(26.4	)
Erie, PA		3,176		2,403		3,312		(24.3	)		(27.4	)

Six Months Ended March 31
Buffalo, NY		5,624		4,420		5,826		(21.4	)		(24.1	)
Erie, PA		5,257		4,124		5,472		(21.6	)		(24.6	)

⁽¹⁾	Percents compare actual 2012 degree days to normal degree days and actual 2012 degree days to actual 2011 degree days.

Page 20

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION


	Three Months Ended March 31,							Six Months Ended March 31,
	2012		2011		Increase (Decrease)			2012		2011		Increase (Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia		13,236		10,848		2,388			26,347		18,930		7,417
West Coast		828		855		(27	)		1,645		1,790		(145	)
Gulf Coast		—		2,056		(2,056	)		—		4,070		(4,070	)

Total Production		14,064		13,759		305			27,992		24,790		3,202

Average Prices (Per Mcf)
Appalachia	$	2.74	$	4.40	$	(1.66	)	$	3.06	$	4.24	$	(1.18	)
West Coast		3.49		4.46		(0.97	)		4.22		4.18		0.04
Gulf Coast		N/M		4.87		N/M			N/M		4.71		N/M
Weighted Average		2.78		4.48		(1.70	)		3.13		4.31		(1.18	)
Weighted Average after Hedging		4.64		5.32		(0.68	)		4.71		5.30		(0.59	)

Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia		8		11		(3	)		18		21		(3	)
West Coast		717		643		74			1,426		1,297		129
Gulf Coast		—		92		(92	)		—		197		(197	)

Total Production		725		746		(21	)		1,444		1,515		(71	)

Average Prices (Per Barrel)
Appalachia	$	100.35	$	86.53	$	13.82		$	93.54	$	84.07	$	9.47
West Coast		112.17		95.35		16.82			110.71		87.84		22.87
Gulf Coast		N/M		96.12		N/M			N/M		89.61		N/M
Weighted Average		112.05		95.31		16.74			110.50		88.01		22.49
Weighted Average after Hedging		93.40		82.28		11.12			92.39		79.21		13.18

Total Production (Mmcfe)		18,414		18,235		179			36,656		33,880		2,776

Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe ⁽¹⁾	$	0.78	$	0.70	$	0.08		$	0.77	$	0.71	$	0.06
Lease Operating Expense per Mcfe ⁽¹⁾	$	1.14	$	1.04	$	0.10		$	1.08	$	1.07	$	0.01
Depreciation, Depletion & Amortization per Mcfe ⁽¹⁾	$	2.30	$	2.19	$	0.11		$	2.29	$	2.17	$	0.12

⁽¹⁾	Refer to page 16 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

N/M Not Meaningful

Page 21

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for the Remaining Six Months of Fiscal 2012


SWAPS	Volume	Average Hedge Price
Oil	0.8 MMBBL	$	77.03 / BBL
Gas	17.5 BCF	$	5.89 / MCF

Hedging Summary for Fiscal 2013

SWAPS	Volume	Average Hedge Price
Oil	1.5 MMBBL	$	92.52 / BBL
Gas	38.9 BCF	$	4.97 / MCF

Hedging Summary for Fiscal 2014

SWAPS	Volume	Average Hedge Price
Oil	0.6 MMBBL	$	95.68 / BBL
Gas	19.5 BCF	$	4.34 / MCF

Hedging Summary for Fiscal 2015

SWAPS	Volume	Average Hedge Price
Gas	4.1 BCF	$	4.04 / MCF

Hedging Summary for Fiscal 2016

SWAPS	Volume	Average Hedge Price
Gas	4.1 BCF	$	4.04 / MCF

Hedging Summary for Fiscal 2017

SWAPS	Volume	Average Hedge Price
Gas	4.2 BCF	$	4.04 / MCF

Gross Wells in Process of Drilling

Six Months Ended March 31, 2012


	East			West		Total Company
Wells in Process - Beginning of Period
Exploratory		5.00			0.00		5.00
Developmental		101.00	⁽¹⁾		0.00		101.00
Wells Commenced
Exploratory		3.00			0.00		3.00
Developmental		29.00			37.00		66.00
Wells Completed
Exploratory		6.00			0.00		6.00
Developmental		31.00			35.00		66.00
Wells Plugged & Abandoned
Exploratory		0.00			0.00		0.00
Developmental		0.00			0.00		0.00
Wells in Process - End of Period
Exploratory		2.00			0.00		2.00
Developmental		99.00			2.00		101.00

⁽¹⁾	Beginning of year number has been adjusted to remove one developmental well.

Net Wells in Process of Drilling

Six Months Ended March 31, 2012


	East			West		Total Company
Wells in Process - Beginning of Period
Exploratory		5.00			0.00		5.00
Developmental		68.00	⁽²⁾		0.00		68.00
Wells Commenced
Exploratory		3.00			0.00		3.00
Developmental		23.00			36.99		59.99
Wells Completed
Exploratory		6.00			0.00		6.00
Developmental		23.50			34.99		58.49
Wells Plugged & Abandoned
Exploratory		0.00			0.00		0.00
Developmental		0.00			0.00		0.00
Wells in Process - End of Period
Exploratory		2.00			0.00		2.00
Developmental		67.50			2.00		69.50

⁽²⁾	Beginning of year number has been adjusted to remove one developmental well.

Page 22

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

FISCAL 2012 EARNINGS GUIDANCE AND SENSITIVITIES

000000000000000

Fiscal 2012 (Diluted earnings per share guidance*)

Earnings per share sensitivity to changes
from NYMEX prices used in guidance* ^

$0.25 change per MMBtu gas

$5 change per Bbl oil

Range

Increase

Decrease

Increase

Decrease

Consolidated Earnings

$2.30 - $2.45

+ $0.04

- $0.04

+ $0.02

- $0.02

*	Please refer to forward looking statement footnote beginning at page 8 of this document.

This sensitivity table is current as of May 3, 2012 and only considers revenue from the Exploration and Production segment's crude oil and natural gas sales. This revenue is based upon pricing used in the Company's earnings forecast. For its fiscal 2012 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $2.25 per MMBtu for natural gas and $100 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca's production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity.

Page 23

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

Pipeline & Storage Throughput - (millions of cubic feet - MMcf)

		00000000		00000000		00000000			00000000		00000000		00000000
	Three Months Ended March 31,							Six Months Ended March 31,
	2012		2011		Increase (Decrease)			2012		2011		Increase (Decrease)
Firm Transportation - Affiliated		37,490		46,277		(8,787	)		63,668		78,345		(14,677	)
Firm Transportation - Non-Affiliated		80,560		77,692		2,868			137,990		134,873		3,117
Interruptible Transportation		456		1,095		(639	)		1,264		1,220		44

		118,506		125,064		(6,558	)		202,922		214,438		(11,516	)

Utility Throughput - (MMcf)

		000000000		000000000		000000000			000000000		000000000		000000000
	Three Months Ended March 31,							Six Months Ended March 31,
	2012		2011		Increase (Decrease)			2012		2011		Increase (Decrease)
Retail Sales:
Residential Sales		21,384		28,048		(6,664	)		35,933		45,207		(9,274	)
Commercial Sales		3,161		4,372		(1,211	)		5,155		6,842		(1,687	)
Industrial Sales		187		393		(206	)		288		539		(251	)

		24,732		32,813		(8,081	)		41,376		52,588		(11,212	)
Off-System Sales		6,799		3,458		3,341			9,544		5,321		4,223
Transportation		22,719		27,472		(4,753	)		39,647		45,581		(5,934	)

		54,250		63,743		(9,493	)		90,567		103,490		(12,923	)

Energy Marketing Volumes

		000000000		000000000		000000000			000000000		000000000		000000000
	Three Months Ended March 31,							Six Months Ended March 31,
	2012		2011		Increase (Decrease)			2012		2011		Increase (Decrease)
Natural Gas (MMcf)		17,727		21,609		(3,882	)		28,039		32,355		(4,316	)

Page 24

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES


	2012		2011
Quarter Ended March 31 (unaudited)
Operating Revenues	$	552,309,000	$	660,881,000

Net Income Available for Common Stock	$	67,392,000	$	115,611,000

Earnings Per Common Share:
Basic	$	0.81	$	1.40

Diluted	$	0.81	$	1.38

Weighted Average Common Shares:
Used in Basic Calculation		83,107,884		82,400,851

Used in Diluted Calculation		83,678,261		83,673,977

Six Months Ended March 31 (unaudited)
Operating Revenues	$	984,732,000	$	1,111,829,000

Net Income Available for Common Stock	$	128,091,000	$	174,154,000

Earnings Per Common Share:
Basic	$	1.54	$	2.12

Diluted	$	1.53	$	2.08

Weighted Average Common Shares:
Used in Basic Calculation		82,988,750		82,311,162

Used in Diluted Calculation		83,712,681		83,561,775

Twelve Months Ended March 31 (unaudited)
Operating Revenues	$	1,651,745,000	$	1,750,217,000

Income from Continuing Operations	$	212,338,000	$	249,189,000
Income from Discontinued Operations, Net of Tax		—		5,952,000

Net Income Available for Common Stock	$	212,338,000	$	255,141,000

Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	2.56	$	3.04
Income from Discontinued Operations		—		0.07

Net Income Available for Common Stock	$	2.56	$	3.11

Diluted:
Income from Continuing Operations	$	2.54	$	2.99
Income from Discontinued Operations		—		0.07

Net Income Available for Common Stock	$	2.54	$	3.06

Weighted Average Common Shares:
Used in Basic Calculation		82,852,270		82,100,883

Used in Diluted Calculation		83,747,858		83,283,900

Page 25

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