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

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8-K - 8-K - NATIONAL FUEL GAS CO	d390567d8k.htm

Exhibit 99

LOGO

Release Date:

Immediate August 2, 2012

6363 Main Street/Williamsville, NY 14221

Timothy Silverstein

Investor Relations

716-857-6987

David P. Bauer

Treasurer

716-857-7318

NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS

WILLIAMSVILLE, NY: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the third quarter of fiscal 2012 and for the nine months ended June 30, 2012.

HIGHLIGHTS

•

Earnings for the third quarter were $43.2 million or $0.52 per share. This compares to earnings of $46.9 million or $0.56 per share in the prior year’s third quarter. The decrease in earnings in the Exploration and Production segment is due to lower commodity prices, and the decrease in earnings in the Utility and Energy Marketing segments is due to warmer weather.

•

In the Pipeline and Storage segment, third quarter earnings of $12.6 million, or $0.15 per share, increased $8.1 million, or $0.10 per share, compared to the prior year’s third quarter, largely driven by the impact of the Line N Expansion and Tioga County Extension projects that were placed in service during the first quarter.

•

Seneca’s production of crude oil and natural gas in the current quarter was 22.1 billion cubic feet equivalent (“Bcfe”), a 30.7% increase over the 16.9 Bcfe in the third quarter of 2011. Appalachian production increased 38.4% to 16.8 Bcfe, including 15.0 Bcfe of production from the Marcellus Shale wells, an increase of 45.6% over the prior year’s third quarter. California crude oil production increased 7.4%. Production for the entire 2012 fiscal year is projected to be between 81 and 85 Bcfe.

•

National Fuel Gas Midstream Corporation’s Trout Run Gathering System located in Lycoming County, Pa., was completed and placed in service on May 30, 2012.

•

The Company’s preliminary GAAP earnings guidance for fiscal 2013 is in the range of $2.45 to $2.75 per share. The 2013 preliminary guidance includes oil and gas production for the Exploration and Production segment in the range of 92 to 105 Bcfe and is based on an assumed flat NYMEX price of $3.25 per MMBtu for natural gas and $85 per Bbl for crude oil.

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•

A conference call is scheduled for Friday, August 3, 2012, at 11 a.m. Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas Company, stated: “In our fiscal third quarter, we were very pleased with our operational performance. Seneca’s Marcellus production continues to grow rapidly, increasing nearly 50 percent over last year’s quarter, with favorable hedging helping to offset lower natural gas prices. In addition, we continue to see great success in California, where crude oil production was up 7.4 percent. In our midstream businesses, the Trout Run Gathering System was placed in service this May, and our Northern Access and Line N 2012 expansion projects are on track for completion this fall.

“In short, even though earnings this quarter were impacted by the lowest natural gas prices in more than a decade, our ongoing accomplishments in all of our businesses make us well positioned for long-term growth.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended June 30, 2012, of $43.2 million, or $0.52 per share, compared to the prior year’s third quarter earnings of $46.9 million, or $0.56 per share, a decrease of $3.7 million or $0.04 per share. The decrease is mainly due to lower earnings in the Exploration and Production, Utility and Energy Marketing segments, offset by higher earnings in the Pipeline and Storage segment and the All Other category. (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 nine months ended June 30, 2012, of $171.3 million, or $2.05 per share, decreased $49.7 million, or $0.59 per share, from the same period in the prior year, where earnings were $221.0 million or $2.64 per share.

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	Three Months				Nine Months
	Ended June 30,				Ended June 30,
	2012		2011		2012		2011
(in thousands except per share amounts)
Reported GAAP earnings	$	43,184	$	46,891	$	171,275	$	221,045
Items impacting comparability¹:
Pennsylvania impact fee		1,661				8,061
Gain on sale of landfill gas electric generation investments								(31,418	)

Operating Results	$	44,845	$	46,891	$	179,336	$	189,627

Reported GAAP earnings per share	$	0.52	$	0.56	$	2.05	$	2.64
Items impacting comparability¹:
Pennsylvania impact fee		0.02				0.10
Gain on sale of landfill gas electric generation investments								(0.37	)

Operating Results	$	0.54	$	0.56	$	2.15	$	2.27

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 nine months ended June 30, 2012, to the comparable periods in fiscal 2011. Excluding these items, Operating Results for the current quarter of $44.8 million, or $0.54 per share, decreased $2.1 million, or $0.02 per share, from the prior year’s third quarter where Operating Results were $46.9 million or $0.56 per share. Excluding these items, Operating Results for the nine months ended June 30, 2012, of $179.3 million, or $2.15 per share, decreased $10.3 million, or $0.12 per share, from the same period in the prior year, where Operating Results were $189.6 million or $2.27 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.

The Exploration and Production segment’s earnings in the third quarter of fiscal 2012 of $21.9 million, or $0.26 per share, decreased $10.9 million, or $0.13 per share, when compared with the prior year’s third quarter.

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In February 2012, the Commonwealth of Pennsylvania passed legislation that includes 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 15 years on each well drilled. The per well 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 applied 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 third quarter by $2.6 million (pre-tax).

Excluding the impact fee, the Exploration and Production segment’s Operating Results in the third quarter of fiscal 2012 were $23.6 million, or $0.28 per share, a decrease of $9.2 million, or $0.11 per share, when compared with the prior year’s third quarter.

Overall production of natural gas and crude oil for the current quarter of 22.1 Bcfe increased approximately 5.2 Bcfe compared to the prior year’s third quarter. Production from Seneca’s Appalachia properties increased 38.4 percent, mainly due to a 4.7 Bcfe, or 45.6 percent increase, in production from Marcellus wells. Crude oil production in California increased 7.4 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 June 30, 2012, was $3.93 per thousand cubic feet (“Mcf”), a decrease of $1.55 per Mcf compared to the prior year’s third quarter. Higher crude oil prices realized after hedging increased earnings. The weighted average oil price received by Seneca (after hedging) for the quarter ended June 30, 2012, was $89.70 per Barrel (“Bbl”), an increase of $5.33 per Bbl.

Depletion, lease operating expenses (“LOE”) and general and administrative expenses (“G&A”) for the current year’s third quarter increased over last year’s third quarter. On a per unit basis, depletion increased $0.19 per thousand cubic feet equivalent (“Mcfe”) due to higher capital spending in the East. LOE decreased $0.12 per Mcfe and G&A decreased $0.08 per Mcfe, largely due to the increase in Marcellus production.

The Exploration and Production segment’s earnings of $74.4 million, or $0.89 per share, for the nine months ended June 30, 2012, decreased $19.0 million, or $0.23 per share, when compared with the nine months ended June 30, 2011. The impact fee, described above, recorded in the current nine-month period was $12.4 million (pre-tax) of which $6.3 million (pre-tax) related to prior fiscal years. Excluding the impact fee, the Exploration and Production segment’s Operating Results for the nine months ended June 30, 2012, were $82.5 million, or $0.99 per share, a decrease of $11.0 million, or $0.13 per share, when compared with the prior year’s nine month period.

Overall production for the nine months ended June 30, 2012, increased 15.7 percent. Excluding fiscal 2011 Gulf of Mexico production of 5.2 Bcfe due to the April 2011 sale of Seneca’s offshore Gulf of Mexico assets, production increased 28.9 percent or 13.2 Bcfe. Production from Seneca’s Appalachia properties increased 38.6 percent, mainly due to a 12.6 Bcfe or 50 percent increase in production from Marcellus wells. Crude oil production in California increased 9.1 percent.

Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the nine-month period ended June

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30, 2012, was $4.40 per Mcf, a decrease of $0.96 per Mcf. Higher crude oil prices realized after hedging increased earnings. The weighted average crude oil price received by Seneca (after hedging) for the nine-month period ended June 30, 2012, was $91.50 per Bbl, an increase of $10.72 per Bbl.

Depletion, LOE and G&A for the nine months ended June 30, 2012, increased compared to the prior year’s nine-month period due in part to the higher production activity discussed above. On a per unit basis, depletion increased $0.14 per Mcfe, LOE decreased $0.04 per Mcfe and G&A per Mcfe was unchanged.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“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 $12.6 million, or $0.15 per share, for the quarter ended June 30, 2012, increased $8.1 million, or $0.10 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 fiscal year’s first quarter, and lower operating expenses.

The Pipeline and Storage segment’s earnings of $35.4 million, or $0.42 per share, for the nine months ended June 30, 2012, increased $11.4 million, or $0.13 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 and lower operating expenses noted above. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and higher depreciation expense.

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.

The Utility segment’s earnings of $5.1 million, or $0.06 per share, for the quarter ended June 30, 2012, decreased $1.2 million, or $0.02 per share, when compared with the same period in the prior fiscal year due mainly to weather in Pennsylvania that was 7.7 percent warmer in the current year’s third quarter than the third 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. Higher depreciation expense and higher income taxes also reduced earnings. Lower operating expenses and higher normalized usage in Pennsylvania partially offset the impact of the above items.

The Utility segment’s earnings of $52.7 million, or $0.63 per share, for the nine months ended June 30, 2012, decreased from earnings of $62.4 million, or $0.74 per share, for the nine months

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ended June 30, 2011. Warmer weather in Pennsylvania was the main reason for the decrease in earnings. Temperatures in Pennsylvania were 22.4 percent warmer in the nine-month period ended June 30, 2012, than the prior year’s nine-month period. Higher depreciation expense, higher income taxes and the impact of certain regulatory adjustments also decreased earnings. Lower operating expenses, lower interest expense and higher normalized usage in Pennsylvania partially offset the above items.

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 June 30, 2012, of $0.9 million, or $0.01 per share, decreased $1.0 million, or $0.01 per share, from the prior year’s third quarter earnings of $1.9 million or $0.02 per share. Earnings for the nine months ended June 30, 2012, of $4.7 million, or $0.06 per share, decreased $4.5 million, or $0.05 per share, from the prior year’s nine-month period. The decrease in earnings in both the current year’s third quarter and nine-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 June 30, 2012, were $2.6 million, or $0.04 per share, an increase of $1.2 million, or $0.02 per share, compared to the prior year’s third quarter earnings. The increase in earnings is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations, lower Corporate operating expenses and lower state franchise taxes.

Earnings in the Corporate and All Other category for the nine months ended June 30, 2012, were $4.0 million, or $0.05 per share, a decrease of $28.0 million, or $0.33 per share, when compared to the earnings for the nine months ended June 30, 2011. The comparability of the results for the quarters ended June 30, 2012, and June 30, 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 electric generation assets powered by landfill gas.

Excluding this item, Operating Results of $4.0 million, or $0.05 per share, for the nine-month period ended June 30, 2012, increased $3.4 million, or $0.04 per share, when compared with the prior year’s nine-month period. The increase in Operating Results is mainly due to higher earnings

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from Midstream’s pipeline gathering and natural gas processing operations, lower Corporate operating expenses and lower state franchise taxes.

EARNINGS GUIDANCE

The Company is updating and narrowing its GAAP earnings guidance range for fiscal 2012 to reflect actual results for the nine months ended June 30, 2012. The revised GAAP earnings range is $2.38 to $2.48 per share, excluding any period end regulatory adjustments. The previous guidance range had been $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 85 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential of $3.00 per MMBtu for natural gas and $85 per Bbl for crude oil.

The Company’s preliminary GAAP earnings guidance for fiscal 2013 is in the range of $2.45 to $2.75. This includes oil and gas production for the Exploration and Production segment in the range of 92 to 105 Bcfe and is based on an assumed flat NYMEX price of $3.25 per MMBTU for natural gas and $85 per Bbl for crude oil.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, August 3, 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) 1-866-578-5788, and using the passcode “62532693.” 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 “85783979.” Both the webcast and telephonic replay will be available until the close of business on Friday, August 10, 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.


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,

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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; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; 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; 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 laws, 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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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS

QUARTER ENDED JUNE 30, 2012


	Exploration &			Pipeline &						Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Utility			Marketing			All Other			Consolidated*
Third quarter 2011 GAAP earnings	$	32,784		$	4,503		$	6,328		$	1,891		$	1,385		$	46,891

Drivers of operating results
Higher (lower) crude oil prices		2,495															2,495
Higher (lower) natural gas prices		(17,904	)														(17,904	)
Higher (lower) natural gas production		17,315															17,315
Higher (lower) crude oil production		3,098															3,098
Lower (higher) lease operating expenses		(2,029	)														(2,029	)
Lower (higher) depreciation / depletion		(10,059	)					(698	)					(244	)		(11,001	)

Higher (lower) transportation revenues					5,766												5,766
Higher (lower) efficiency gas revenues					(766	)											(766	)
Higher (lower) gathering and processing revenues														1,140			1,140
Lower (higher) operating expenses		(1,395	)		2,052			796						321			1,774
Lower (higher) property, franchise and other taxes								323						713			1,036

Warmer weather								(2,311	)								(2,311	)
Usage								733									733

Higher (lower) margins											(876	)		(652	)		(1,528	)

(Higher) lower interest expense		(2,879	)					358									(2,521	)

Lower (higher) income tax expense / effective tax rate		1,585			762			(779	)								1,568

All other / rounding		565			310			346			(92	)		(40	)		1,089

Third quarter 2012 operating results		23,576			12,627			5,096			923			2,623			44,845
Items impacting comparability:
Pennsylvania impact fee		(1,661	)														(1,661	)

Third quarter 2012 GAAP earnings	$	21,915		$	12,627		$	5,096		$	923		$	2,623		$	43,184

*	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 JUNE 30, 2012


	Exploration &			Pipeline &						Energy			Corporate /
	Production			Storage			Utility			Marketing			All Other			Consolidated*
Third quarter 2011 GAAP earnings	$	0.39		$	0.05		$	0.08		$	0.02		$	0.02		$	0.56

Drivers of operating results
Higher (lower) crude oil prices		0.03															0.03
Higher (lower) natural gas prices		(0.21	)														(0.21	)
Higher (lower) natural gas production		0.21															0.21
Higher (lower) crude oil production		0.04															0.04
Lower (higher) lease operating expenses		(0.02	)														(0.02	)
Lower (higher) depreciation / depletion		(0.12	)					(0.01	)					—			(0.13	)

Higher (lower) transportation revenues					0.07												0.07
Higher (lower) efficiency gas revenues					(0.01	)											(0.01	)
Higher (lower) gathering and processing revenues														0.01			0.01
Lower (higher) operating expenses		(0.02	)		0.02			0.01						—			0.01
Lower (higher) property, franchise and other taxes								—						0.01			0.01

Warmer weather								(0.03	)								(0.03	)
Usage								0.01									0.01

Higher (lower) margins											(0.01	)		(0.01	)		(0.02	)

(Higher) lower interest expense		(0.03	)					—									(0.03	)

Lower (higher) income tax expense / effective tax rate		0.02			0.01			(0.01	)								0.02

All other / rounding		(0.01	)		0.01			0.01			—			0.01			0.02

Third quarter 2012 operating results		0.28			0.15			0.06			0.01			0.04			0.54
Items impacting comparability:
Pennsylvania impact fee		(0.02	)														(0.02	)

Third quarter 2012 GAAP earnings	$	0.26		$	0.15		$	0.06		$	0.01		$	0.04		$	0.52

*	Amounts do not reflect intercompany eliminations

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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS

NINE MONTHS ENDED JUNE 30, 2012


	Exploration &			Pipeline &						Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Utility			Marketing			All Other			Consolidated**
Nine months ended June 30, 2011 GAAP earnings	$	93,455		$	24,036		$	62,399		$	9,122		$	32,033		$	221,045
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														(31,418	)		(31,418	)

Nine months ended June 30, 2011 operating results		93,455			24,036			62,399			9,122			615			189,627

Drivers of operating results
Higher (lower) Appalachian and West Coast crude oil prices		16,045															16,045
Higher (lower) Appalachian and West Coast natural gas prices		(28,237	)														(28,237	)
Higher (lower) Appalachian and West Coast natural gas production		41,531															41,531
Higher (lower) Appalachian and West Coast crude oil production		9,147															9,147
Lower Gulf Coast natural gas and crude oil revenues		(24,506	)														(24,506	)
Lower (higher) lease operating expenses		(4,153	)														(4,153	)
Lower (higher) depreciation / depletion		(16,670	)		(1,138	)		(987	)					(230	)		(19,025	)
Higher (lower) processing plant revenues		992															992

Higher (lower) transportation revenues					13,506												13,506
Higher (lower) efficiency gas revenues					(4,431	)											(4,431	)
Higher (lower) gathering and processing revenues														2,401			2,401
Lower (higher) operating expenses		(3,636	)		2,013									465			(1,158	)
Lower (higher) property, franchise and other taxes		1,975						727						722			3,424

Warmer weather								(10,002	)								(10,002	)
Usage								930									930
Regulatory true-up adjustments								(873	)								(873	)

Higher (lower) income from unconsolidated subsidiaries														305			305

Higher (lower) margins											(4,340	)		261			(4,079	)

Higher AFUDC *					707												707
Higher (lower) interest income		480															480
Lower (higher) interest expense		(4,354	)					1,130									(3,224	)

(Higher) lower income tax expense					1,022			(1,432	)								(410	)

All other / rounding		414			(287	)		833			(120	)		(501	)		339

Nine months ended June 30, 2012 operating results		82,483			35,428			52,725			4,662			4,038			179,336
Items impacting comparability:
Pennsylvania impact fee		(8,061	)														(8,061	)

Nine months ended June 30, 2012 GAAP earnings	$	74,422		$	35,428		$	52,725		$	4,662		$	4,038		$	171,275

*	AFUDC = Allowance for Funds Used During Construction

**	Amounts do not reflect intercompany eliminations

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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE

NINE MONTHS ENDED JUNE 30, 2012


	Exploration &			Pipeline &						Energy			Corporate /
	Production			Storage			Utility			Marketing			All Other			Consolidated**
Nine months ended June 30, 2011 GAAP earnings	$	1.12		$	0.29		$	0.74		$	0.11		$	0.38		$	2.64
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														(0.37	)		(0.37	)

Nine months ended June 30, 2011 operating results		1.12			0.29			0.74			0.11			0.01			2.27

Drivers of operating results
Higher (lower) Appalachian and West Coast crude oil prices		0.19															0.19
Higher (lower) Appalachian and West Coast natural gas prices		(0.34	)														(0.34	)
Higher (lower) Appalachian and West Coast natural gas production		0.50															0.50
Higher (lower) Appalachian and West Coast crude oil production		0.11															0.11
Lower Gulf Coast natural gas and crude oil revenues		(0.29	)														(0.29	)
Lower (higher) lease operating expenses		(0.05	)														(0.05	)
Lower (higher) depreciation / depletion		(0.20	)		(0.01	)		(0.01	)					—			(0.22	)
Higher (lower) processing plant revenues		0.01															0.01

Higher (lower) transportation revenues					0.16												0.16
Higher (lower) efficiency gas revenues					(0.05	)											(0.05	)
Higher (lower) gathering and processing revenues														0.03			0.03
Lower (higher) operating expenses		(0.04	)		0.02									0.01			(0.01	)
Lower (higher) property, franchise and other taxes		0.02						0.01						0.01			0.04

Warmer weather								(0.12	)								(0.12	)
Usage								0.01									0.01
Regulatory true-up adjustments								(0.01	)								(0.01	)

Higher (lower) income from unconsolidated subsidiaries														—			—

Higher (lower) margins											(0.05	)		—			(0.05	)

Higher AFUDC *					0.01												0.01
Higher (lower) interest income		0.01															0.01
Lower (higher) interest expense		(0.05	)					0.01									(0.04	)

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

All other / rounding		—			(0.01	)		0.02			—			(0.01	)		—

Nine months ended June 30, 2012 operating results		0.99			0.42			0.63			0.06			0.05			2.15
Items impacting comparability:
Pennsylvania impact fee		(0.10	)														(0.10	)

Nine months ended June 30, 2012 GAAP earnings	$	0.89		$	0.42		$	0.63		$	0.06		$	0.05		$	2.05

*	AFUDC = Allowance for Funds Used During Construction

**	Amounts do not reflect intercompany eliminations

Page 13

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	(Unaudited)						(Unaudited)
(Thousands of Dollars, except per share amounts)	2012			2011			2012			2011
SUMMARY OF OPERATIONS
Operating Revenues	$	328,861		$	380,979		$	1,313,593		$	1,492,808

Operating Expenses:
Purchased Gas		50,160			112,725			390,889			582,358
Operation and Maintenance		93,749			95,977			311,857			310,148
Property, Franchise and Other Taxes		20,432			20,179			70,138			63,714
Depreciation, Depletion and Amortization		74,227			57,293			199,925			170,617

		238,568			286,174			972,809			1,126,837
Operating Income		90,293			94,805			340,784			365,971

Other Income (Expense):
Gain on Sale of Unconsolidated Subsidiaries		—			—			—			50,879
Interest Income		390			325			1,686			1,277
Other Income		1,086			1,813			4,076			4,130
Interest Expense on Long-Term Debt		(21,529	)		(17,876	)		(60,594	)		(55,994	)
Other Interest Expense		(828	)		(1,159	)		(2,851	)		(4,014	)

Income Before Income Taxes		69,412			77,908			283,101			362,249

Income Tax Expense		26,228			31,017			111,826			141,204

Net Income Available for Common Stock	$	43,184		$	46,891		$	171,275		$	221,045

Earnings Per Common Share:
Basic	$	0.52		$	0.57		$	2.06		$	2.68

Diluted	$	0.52		$	0.56		$	2.05		$	2.64

Weighted Average Common Shares:
Used in Basic Calculation		83,227,602			82,687,467			83,068,083			82,436,603

Used in Diluted Calculation		83,674,823			83,782,493			83,690,436			83,649,498

Page 14

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30,			September 30,
(Thousands of Dollars)	2012			2011
ASSETS
Property, Plant and Equipment	$	6,438,525		$	5,646,918
Less—Accumulated Depreciation, Depletion and Amortization		1,817,655			1,646,394

Net Property, Plant and Equipment		4,620,870			4,000,524

Current Assets:
Cash and Temporary Cash Investments		140,815			80,428
Hedging Collateral Deposits		3,392			19,701
Receivables—Net		113,949			131,885
Unbilled Utility Revenue		12,212			17,284
Gas Stored Underground		24,787			54,325
Materials and Supplies—at average cost		28,137			27,932
Unrecovered Purchased Gas Costs		2,100			—
Other Current Assets		48,246			64,923
Deferred Income Taxes		14,727			15,423

Total Current Assets		388,365			411,901

Other Assets:
Recoverable Future Taxes		147,652			144,377
Unamortized Debt Expense		13,991			10,571
Other Regulatory Assets		481,900			484,397
Deferred Charges		5,781			5,552
Other Investments		84,495			79,365
Goodwill		5,476			5,476
Fair Value of Derivative Financial Instruments		85,905			76,085
Other		2,418			2,836

Total Other Assets		827,618			808,659

Total Assets	$	5,836,853		$	5,221,084

CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized—200,000,000 Shares; Issued and Outstanding—83,270,363 Shares and 82,812,677 Shares, Respectively	$	83,270		$	82,813
Paid in Capital		666,012			650,749
Earnings Reinvested in the Business		1,287,898			1,206,022

Total Common Shareholders’ Equity Before Items of Other Comprehensive Loss		2,037,180			1,939,584
Accumulated Other Comprehensive Loss		(47,940	)		(47,699	)

Total Comprehensive Shareholders’ Equity		1,989,240			1,891,885
Long-Term Debt, Net of Current Portion		1,149,000			899,000

Total Capitalization		3,138,240			2,790,885

Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		70,200			40,000
Current Portion of Long-Term Debt		250,000			150,000
Accounts Payable		88,119			126,709
Amounts Payable to Customers		17,761			15,519
Dividends Payable		30,393			29,399
Interest Payable on Long-Term Debt		16,320			25,512
Customer Advances		315			19,643
Customer Security Deposits		16,847			17,321
Other Accruals and Current Liabilities		160,899			108,636
Fair Value of Derivative Financial Instruments		16,193			9,728

Total Current and Accrued Liabilities		667,047			542,467

Deferred Credits:
Deferred Income Taxes		1,062,824			955,384
Taxes Refundable to Customers		65,554			65,543
Unamortized Investment Tax Credit		2,150			2,586
Cost of Removal Regulatory Liability		148,668			135,940
Other Regulatory Liabilities		39,657			17,177
Pension and Other Post-Retirement Liabilities		481,331			481,520
Asset Retirement Obligations		78,232			75,731
Other Deferred Credits		153,150			153,851

Total Deferred Credits		2,031,566			1,887,732

Commitments and Contingencies		—			—

Total Capitalization and Liabilities	$	5,836,853		$	5,221,084

Page 15

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended June 30,
(Thousands of Dollars)	2012			2011
Operating Activities:
Net Income Available for Common Stock	$	171,275		$	221,045
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Gain on Sale of Unconsolidated Subsidiaries		—			(50,879	)
Depreciation, Depletion and Amortization		199,925			170,617
Deferred Income Taxes		104,948			140,326
Excess Tax Costs (Benefits) Associated with Stock-Based Compensation Awards		(1,511	)		1,224
Other		6,618			7,351
Change in:
Hedging Collateral Deposits		16,309			(26,850	)
Receivables and Unbilled Utility Revenue		23,008			(25,919	)
Gas Stored Underground and Materials and Supplies		30,853			22,387
Unrecovered Purchased Gas Costs		(2,100	)		—
Prepayments and Other Current Assets		18,190			83,541
Accounts Payable		(38,590	)		5,506
Amounts Payable to Customers		2,242			(12,448	)
Customer Advances		(19,328	)		(26,617	)
Customer Security Deposits		(474	)		(648	)
Other Accruals and Current Liabilities		17,083			36,446
Other Assets		(12,796	)		8,582
Other Liabilities		25,338			(17,382	)

Net Cash Provided by Operating Activities	$	540,990		$	536,282

Investing Activities:
Capital Expenditures	$	(776,896	)	$	(583,739	)
Net Proceeds from Sale of Unconsolidated Subsidiaries		—			59,365
Net Proceeds from Sale of Oil and Gas Producing Properties		—			69,435
Other		(1,267	)		(2,908	)

Net Cash Used in Investing Activities	$	(778,163	)	$	(457,847	)

Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper	$	30,200		$	—
Excess Tax Benefits (Costs) Associated with Stock-Based Compensation Awards		1,511			(1,224	)
Reduction of Long-Term Debt		(150,000	)		(200,000	)
Net Proceeds From Issuance of Long-Term Debt		496,085			—
Dividends Paid on Common Stock		(88,404	)		(85,201	)
Net Proceeds From Issuance (Repurchase) of Common Stock		8,168			(4,471	)

Net Cash Provided By (Used in) Financing Activities	$	297,560		$	(290,896	)

Net Increase (Decrease) in Cash and Temporary Cash Investments		60,387			(212,461	)
Cash and Temporary Cash Investments at Beginning of Period		80,428			397,171

Cash and Temporary Cash Investments at June 30	$	140,815		$	184,710

Page 16

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2012			2011			Variance			2012			2011			Variance
EXPLORATION AND PRODUCTION SEGMENT
Total Operating Revenues	$	138,549		$	130,974		$	7,575		$	411,449		$	388,571		$	22,878

Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		12,952			11,342			1,610			41,253			35,330			5,923
Lease Operating Expense		20,238			17,421			2,817			59,821			53,736			6,085
All Other Operation and Maintenance Expense		1,790			1,252			538			4,865			5,196			(331	)
Property, Franchise and Other Taxes		4,264			2,114			2,150			18,998			9,634			9,364
Depreciation, Depletion and Amortization		52,440			36,964			15,476			136,262			110,615			25,647

		91,684			69,093			22,591			261,199			214,511			46,688

Operating Income		46,865			61,881			(15,016	)		150,250			174,060			(23,810	)

Other Income (Expense):
Interest Income		403			(10	)		413			1,070			(11	)		1,081
Other Income		—			1			(1	)		—			1			(1	)
Other Interest Expense		(8,372	)		(3,817	)		(4,555	)		(20,864	)		(13,825	)		(7,039	)

Income Before Income Taxes		38,896			58,055			(19,159	)		130,456			160,225			(29,769	)
Income Tax Expense		16,981			25,271			(8,290	)		56,034			66,770			(10,736	)

Net Income	$	21,915		$	32,784		$	(10,869	)	$	74,422		$	93,455		$	(19,033	)

Net Income Per Share (Diluted)	$	0.26		$	0.39		$	(0.13	)	$	0.89		$	1.12		$	(0.23	)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	2012			2011			Variance			2012			2011			Variance
PIPELINE AND STORAGE SEGMENT
Revenues from External Customers	$	36,631		$	29,933		$	6,698		$	113,976		$	103,115		$	10,861
Intersegment Revenues		22,076			20,324			1,752			64,434			60,838			3,596

Total Operating Revenues		58,707			50,257			8,450			178,410			163,953			14,457

Operating Expenses:
Purchased Gas		65			11			54			193			(14	)		207
Operation and Maintenance		18,486			21,643			(3,157	)		58,529			61,627			(3,098	)
Property, Franchise and Other Taxes		5,319			5,173			146			16,232			15,781			451
Depreciation, Depletion and Amortization		9,563			9,567			(4	)		29,546			27,796			1,750

		33,433			36,394			(2,961	)		104,500			105,190			(690	)

Operating Income		25,274			13,863			11,411			73,910			58,763			15,147

Other Income (Expense):
Interest Income		46			73			(27	)		137			252			(115	)
Other Income		524			621			(97	)		2,031			1,336			695
Other Interest Expense		(6,381	)		(6,423	)		42			(19,279	)		(19,505	)		226

Income Before Income Taxes		19,463			8,134			11,329			56,799			40,846			15,953
Income Tax Expense		6,836			3,631			3,205			21,371			16,810			4,561

Net Income	$	12,627		$	4,503		$	8,124		$	35,428		$	24,036		$	11,392

Net Income Per Share (Diluted)	$	0.15		$	0.05		$	0.10		$	0.42		$	0.29		$	0.13

Page 17

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2012			2011			Variance			2012			2011			Variance
UTILITY SEGMENT
Revenues from External Customers	$	117,240		$	146,215		$	(28,975	)	$	622,836		$	750,802		$	(127,966	)
Intersegment Revenues		2,703			3,475			(772	)		12,643			14,680			(2,037	)

Total Operating Revenues		119,943			149,690			(29,747	)		635,479			765,482			(130,003	)

Operating Expenses:
Purchased Gas		41,628			68,667			(27,039	)		316,877			429,716			(112,839	)
Operation and Maintenance		40,719			42,524			(1,805	)		144,701			146,549			(1,848	)
Property, Franchise and Other Taxes		10,057			11,031			(974	)		32,627			34,933			(2,306	)
Depreciation, Depletion and Amortization		11,437			10,363			1,074			32,503			30,986			1,517

		103,841			132,585			(28,744	)		526,708			642,184			(115,476	)

Operating Income		16,102			17,105			(1,003	)		108,771			123,298			(14,527	)

Other Income (Expense):
Interest Income		99			38			61			820			485			335
Other Income		(5	)		300			(305	)		671			897			(226	)
Other Interest Expense		(8,110	)		(8,659	)		549			(24,509	)		(26,247	)		1,738

Income Before Income Taxes		8,086			8,784			(698	)		85,753			98,433			(12,680	)
Income Tax Expense		2,990			2,456			534			33,028			36,034			(3,006	)

Net Income	$	5,096		$	6,328		$	(1,232	)	$	52,725		$	62,399		$	(9,674	)

Net Income Per Share (Diluted)	$	0.06		$	0.08		$	(0.02	)	$	0.63		$	0.74		$	(0.11	)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	2012			2011			Variance			2012			2011			Variance
ENERGY MARKETING SEGMENT
Revenues from External Customers	$	35,377		$	71,746		$	(36,369	)	$	161,822		$	246,719		$	(84,897	)
Intersegment Revenues		579			156			423			1,135			156			979

Total Operating Revenues		35,956			71,902			(35,946	)		162,957			246,875			(83,918	)

Operating Expenses:
Purchased Gas		33,114			67,711			(34,597	)		150,475			227,716			(77,241	)
Operation and Maintenance		1,347			1,415			(68	)		4,920			4,553			367
Property, Franchise and Other Taxes		36			8			28			60			34			26
Depreciation, Depletion and Amortization		22			9			13			69			28			41

		34,519			69,143			(34,624	)		155,524			232,331			(76,807	)

Operating Income		1,437			2,759			(1,322	)		7,433			14,544			(7,111	)

Other Income (Expense):
Interest Income		59			36			23			127			72			55
Other Income		25			27			(2	)		88			61			27
Other Interest Expense		(9	)		(4	)		(5	)		(17	)		(15	)		(2	)

Income Before Income Taxes		1,512			2,818			(1,306	)		7,631			14,662			(7,031	)
Income Tax Expense		589			927			(338	)		2,969			5,540			(2,571	)

Net Income	$	923		$	1,891		$	(968	)	$	4,662		$	9,122		$	(4,460	)

Net Income Per Share (Diluted)	$	0.01		$	0.02		$	(0.01	)	$	0.06		$	0.11		$	(0.05	)

Page 18

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2012			2011			Variance			2012			2011			Variance
ALL OTHER
Revenues from External Customers	$	824		$	1,873		$	(1,049	)	$	2,784		$	2,895		$	(111	)
Intersegment Revenues		4,307			2,810			1,497			10,828			7,026			3,802

Total Operating Revenues		5,131			4,683			448			13,612			9,921			3,691

Operating Expenses:
Purchased Gas		—			—			—			—			48			(48	)
Operation and Maintenance		876			944			(68	)		2,794			3,130			(336	)
Property, Franchise and Other Taxes		205			90			115			569			490			79
Depreciation, Depletion and Amortization		567			203			364			959			630			329

		1,648			1,237			411			4,322			4,298			24

Operating Income		3,483			3,446			37			9,290			5,623			3,667

Other Income (Expense):
Gain on Sale of Unconsolidated Subsidiaries		—			—			—			—			50,879			(50,879	)
Interest Income		38			48			(10	)		136			197			(61	)
Other Income		(70	)		177			(247	)		(220	)		(409	)		189
Other Interest Expense		(427	)		(541	)		114			(1,290	)		(1,637	)		347

Income Before Income Taxes		3,024			3,130			(106	)		7,916			54,653			(46,737	)
Income Tax Expense		209			417			(208	)		2,359			20,333			(17,974	)

Net Income	$	2,815		$	2,713		$	102		$	5,557		$	34,320		$	(28,763	)

Net Income Per Share (Diluted)	$	0.04		$	0.03		$	0.01		$	0.07		$	0.41		$	(0.34	)

Page 19

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2012			2011			Variance			2012			2011			Variance
CORPORATE
Revenues from External Customers	$	240		$	238		$	2		$	726		$	706		$	20
Intersegment Revenues		780			1,028			(248	)		2,837			2,955			(118	)

Total Operating Revenues		1,020			1,266			(246	)		3,563			3,661			(98	)

Operating Expenses:
Operation and Maintenance		3,139			3,565			(426	)		10,195			10,574			(379	)
Property, Franchise and Other Taxes		551			1,763			(1,212	)		1,652			2,842			(1,190	)
Depreciation, Depletion and Amortization		198			187			11			586			562			24

		3,888			5,515			(1,627	)		12,433			13,978			(1,545	)

Operating Loss		(2,868	)		(4,249	)		1,381			(8,870	)		(10,317	)		1,447

Other Income (Expense):
Interest Income		22,799			18,897			3,902			65,568			58,717			6,851
Other Income		612			687			(75	)		1,506			2,244			(738	)
Interest Expense on Long-Term Debt		(21,529	)		(17,876	)		(3,653	)		(60,594	)		(55,994	)		(4,600	)
Other Interest Expense		(583	)		(472	)		(111	)		(3,064	)		(1,220	)		(1,844	)

Loss Before Income Taxes		(1,569	)		(3,013	)		1,444			(5,454	)		(6,570	)		1,116
Income Tax Benefit		(1,377	)		(1,685	)		308			(3,935	)		(4,283	)		348

Net Loss	$	(192	)	$	(1,328	)	$	1,136		$	(1,519	)	$	(2,287	)	$	768

Net Loss Per Share (Diluted)	$	—		$	(0.01	)	$	0.01		$	(0.02	)	$	(0.03	)	$	0.01


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	2012			2011			Variance			2012			2011			Variance
INTERSEGMENT ELIMINATIONS
Intersegment Revenues	$	(30,445	)	$	(27,793	)	$	(2,652	)	$	(91,877	)	$	(85,655	)	$	(6,222	)

Operating Expenses:
Purchased Gas		(24,647	)		(23,664	)		(983	)		(76,656	)		(75,108	)		(1,548	)
Operation and Maintenance		(5,798	)		(4,129	)		(1,669	)		(15,221	)		(10,547	)		(4,674	)

		(30,445	)		(27,793	)		(2,652	)		(91,877	)		(85,655	)		(6,222	)

Operating Income		—			—			—			—			—			—

Other Income (Expense):
Interest Income		(23,054	)		(18,757	)		(4,297	)		(66,172	)		(58,435	)		(7,737	)
Other Interest Expense		23,054			18,757			4,297			66,172			58,435			7,737

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

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

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NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)

(Thousands of Dollars)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	(Unaudited)									(Unaudited)
	2012			2011			Increase (Decrease)			2012			2011			Increase (Decrease)
Capital Expenditures:
Exploration and Production	$	189,429	(1)(2)	$	158,321	(3)(4)	$	31,108		$	598,560	(1)(2)	$	473,515	(3)(4)	$	125,045
Pipeline and Storage		34,032	(1)(2)		35,471	(3)		(1,439	)		97,253	(1)(2)		74,969	(3)		22,284
Utility		14,518			13,994			524			39,858			39,429			429
Energy Marketing		154			68			86			420			329			91

Total Reportable Segments		238,133			207,854			30,279			736,091			588,242			147,849
All Other		23,151	(1)(2)		4,018			19,133			66,788	(1)(2)		6,287			60,501
Corporate		121			193			(72	)		291			208			83

Total Capital Expenditures	$	261,405		$	212,065		$	49,340		$	803,170		$	594,737		$	208,433

⁽¹⁾

Capital expenditures for the quarter and nine months ended June 30, 2012 include $74.2 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $8.0 million of accrued capital expenditures in the Pipeline and Storage segment, and $16.2 million of accrued capital expenditures in the All Other category. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2012 since they represent non-cash investing activities at that date.

⁽²⁾

Capital expenditures for the nine months ended June 30, 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 nine months ended June 30, 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 June 30, 2012.

⁽³⁾

Capital expenditures for the quarter and nine months ended June 30, 2011 include $60.7 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, and $5.9 million of accrued capital expenditures in the Pipeline and Storage segment. These amounts were excluded from the Consolidated Statement of Cash Flows at June 30, 2011 since they represented non-cash investing activities at that date.

⁽⁴⁾

Capital expenditures for the Exploration and Production segment for the nine months ended June 30, 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 nine months ended June 30, 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 June 30, 2011.

DEGREE DAYS


							Percent Colder
							(Warmer) Than:
	Normal		2012		2011		Normal ⁽¹⁾			Last Year ⁽¹⁾
Three Months Ended June 30

Buffalo, NY		927		751		848		(19.0	)		(11.4	)
Erie, PA		885		751		814		(15.1	)		(7.7	)

Nine Months Ended June 30

Buffalo, NY		6,551		5,171		6,674		(21.1	)		(22.5	)
Erie, PA		6,142		4,875		6,286		(20.6	)		(22.4	)

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

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NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION


	Three Months Ended								Nine Months Ended
	June 30,								June 30,
						Increase							Increase
	2012		2011			(Decrease)			2012		2011		(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia		16,778		12,090			4,688			43,125		31,020		12,105
West Coast		1,025		826			199			2,670		2,616		54
Gulf Coast		—		22			(22	)		—		4,092		(4,092	)

Total Production		17,803		12,938			4,865			45,795		37,728		8,067

Average Prices (Per Mcf)
Appalachia	$	2.14	$	4.55		$	(2.41	)	$	2.70	$	4.36	$	(1.66	)
West Coast		2.97		4.87			(1.90	)		3.74		4.40		(0.66	)
Gulf Coast		N/M		N/M			N/M			N/M		5.02		N/M
Weighted Average		2.19		4.67			(2.48	)		2.76		4.44		(1.68	)
Weighted Average after Hedging		3.93		5.48			(1.55	)		4.40		5.36		(0.96	)

Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia		11		13			(2	)		29		35		(6	)
West Coast		710		661			49			2,136		1,958		178
Gulf Coast		—		(9	)⁽¹⁾		9			—		187		(187	)

Total Production		721		665			56			2,165		2,180		(15	)

Average Prices (Per Barrel)
Appalachia	$	95.43	$	92.89		$	2.54		$	94.24	$	87.36	$	6.88
West Coast		104.24		108.30			(4.06	)		108.56		94.74		13.82
Gulf Coast		N/M		N/M			N/M			N/M		88.57		N/M
Weighted Average		104.11		107.97			(3.86	)		108.37		94.10		14.27
Weighted Average after Hedging		89.70		84.37			5.33			91.50		80.78		10.72

Total Production (Mmcfe)		22,129		16,928			5,201			58,785		50,808		7,977

Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe ⁽²⁾	$	0.59	$	0.67		$	(0.08	)	$	0.70	$	0.70	$	—
Lease Operating Expense per Mcfe ⁽²⁾	$	0.91	$	1.03		$	(0.12	)	$	1.02	$	1.06	$	(0.04	)
Depreciation, Depletion & Amortization per Mcfe ⁽²⁾	$	2.37	$	2.18		$	0.19		$	2.32	$	2.18	$	0.14

⁽¹⁾	The sale of Gulf Coast properties in April 2011 and various adjustments to prior months' production resulted in negative oil production.

⁽²⁾	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

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NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for the Remaining Three Months of Fiscal 2012


SWAPS	Volume		Average Hedge Price
Oil		0.4 MMBBL	$	77.03 / BBL
Gas		12.4 BCF	$	4.99 / MCF

Hedging Summary for Fiscal 2013


SWAPS	Volume		Average Hedge Price
Oil		1.5 MMBBL	$	92.52 / BBL
Gas		46.7 BCF	$	4.82 / MCF

Hedging Summary for Fiscal 2014


SWAPS	Volume		Average Hedge Price
Oil		0.6 MMBBL	$	95.68 / BBL
Gas		27.4 BCF	$	4.26 / MCF

Hedging Summary for Fiscal 2015


SWAPS	Volume		Average Hedge Price
Gas		17.8 BCF	$	4.07 / MCF

Hedging Summary for Fiscal 2016


SWAPS	Volume		Average Hedge Price
Gas		17.9 BCF	$	4.07 / MCF

Hedging Summary for Fiscal 2017


SWAPS	Volume		Average Hedge Price
Gas		17.9 BCF	$	4.07 / MCF

Gross Wells in Process of Drilling

Nine Months Ended June 30, 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		50.00			57.00		107.00
Wells Completed
Exploratory		7.00			0.00		7.00
Developmental		55.00			56.00		111.00
Wells Plugged & Abandoned
Exploratory		0.00			0.00		0.00
Developmental		2.00			0.00		2.00
Wells in Process—End of Period
Exploratory		1.00			0.00		1.00
Developmental		94.00			1.00		95.00

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

Net Wells in Process of Drilling

Nine Months Ended June 30, 2012


						Total
	East			West		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		40.00			56.99		96.99
Wells Completed
Exploratory		7.00			0.00		7.00
Developmental		38.50			55.99		94.49
Wells Plugged & Abandoned
Exploratory		0.00			0.00		0.00
Developmental		2.00			0.00		2.00
Wells in Process—End of Period
Exploratory		1.00			0.00		1.00
Developmental		67.50			1.00		68.50

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

Page 23

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Updated Fiscal 2013 Financial & Operating Guidance


		Guidance
Total Production (Bcfe)		92 - 105

Production by Division (Bcfe)
East		72 - 83
West		20 - 22

Cost and Expenses $ per Mcfe
Lease Operating Expenses		$0.90 - $1.10
Depreciation, Depletion and Amortization		$2.30 - $2.40
Other Taxes		$0.15 - $0.25

Other Operating Expenses (in millions)		$7 - $9
General and Administrative (in millions)		$59 - $63

Capital Investment by Division (in millions)

East Division		$340 - $425
West Division		$60 - $75
Exploration & Production Segment Total		$400 - $500

Updated Pricing Guidance for Fiscal 2013

Guidance Based on Crude Oil Average 2012 NYMEX Price ($/Bbl) (without hedges) of $85.00


Forecast price differentials
West	+$	5.00 to +$10.00

Guidance Based on Natural Gas Average 2012 NYMEX Price ($/MMBtu) (without hedges) of $3.25


Forecast price differentials
East	-$	0.10 to -$0.20
West	+$	0.10 to +$0.20

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

$0.50 change per MMBtu gas

$5 change per Bbl oil

Increase

Decrease

Increase

Decrease

+$0.13

-$0.13

0.05

*	Please refer to forward looking statement footnote beginning at page 7 of this document.

This sensitivity table is current as of August 2, 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 2013 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $3.25 per MMBtu for natural gas and $85 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 24

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

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


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2012		2011		(Decrease)			2012		2011		(Decrease)
Firm Transportation—Affiliated		17,507		17,538		(31	)		81,174		95,884		(14,710	)
Firm Transportation—Non-Affiliated		62,414		35,788		26,626			200,405		170,661		29,744
Interruptible Transportation		247		489		(242	)		1,511		1,709		(198	)

		80,168		53,815		26,353			283,090		268,254		14,836

Utility Throughput—(MMcf)


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2012		2011		(Decrease)			2012		2011		(Decrease)
Retail Sales:
Residential Sales		7,543		8,867		(1,324	)		43,476		54,075		(10,599	)
Commercial Sales		954		1,203		(249	)		6,109		8,044		(1,935	)
Industrial Sales		168		79		89			456		618		(162	)

		8,665		10,149		(1,484	)		50,041		62,737		(12,696	)
Off-System Sales		—		867		(867	)		9,544		6,188		3,356
Transportation		12,016		12,335		(319	)		51,663		57,916		(6,253	)

		20,681		23,351		(2,670	)		111,248		126,841		(15,593	)

Energy Marketing Volumes


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2012		2011		(Decrease)			2012		2011		(Decrease)
Natural Gas (MMcf)		10,818		13,508		(2,690	)		38,857		45,863		(7,006	)

Page 25

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES


	2012		2011
Quarter Ended June 30 (unaudited)

Operating Revenues	$	328,861,000	$	380,979,000

Net Income Available for Common Stock	$	43,184,000	$	46,891,000

Earnings Per Common Share:
Basic	$	0.52	$	0.57

Diluted	$	0.52	$	0.56

Weighted Average Common Shares:
Used in Basic Calculation		83,227,602		82,687,467

Used in Diluted Calculation		83,674,823		83,782,493

Nine Months Ended June 30 (unaudited)

Operating Revenues	$	1,313,593,000	$	1,492,808,000

Net Income Available for Common Stock	$	171,275,000	$	221,045,000

Earnings Per Common Share:
Basic	$	2.06	$	2.68

Diluted	$	2.05	$	2.64

Weighted Average Common Shares:
Used in Basic Calculation		83,068,083		82,436,603

Used in Diluted Calculation		83,690,436		83,649,498

Twelve Months Ended June 30 (unaudited)

Operating Revenues	$	1,599,626,000	$	1,779,205,000

Income from Continuing Operations	$	208,631,000	$	253,438,000
Income from Discontinued Operations, Net of Tax		—		6,009,000

Net Income Available for Common Stock	$	208,631,000	$	259,447,000

Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	2.51	$	3.08
Income from Discontinued Operations		—		0.07

Net Income Available for Common Stock	$	2.51	$	3.15

Diluted:
Income from Continuing Operations	$	2.49	$	3.04
Income from Discontinued Operations		—		0.07

Net Income Available for Common Stock	$	2.49	$	3.11

Weighted Average Common Shares:
Used in Basic Calculation		82,986,564		82,321,791

Used in Diluted Calculation		83,717,869		83,508,416

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