UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2011

NATIONAL FUEL GAS COMPANY
(Exact name of registrant as specified in its charter)

 
					
New Jersey	 	1-3880	 	13-1086010	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
		
6363 Main Street, Williamsville, New York	 	14221	
(Address of principal executive offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (716) 857-7000
Former name or former address, if changed since last report: Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02	Results of Operations and Financial Condition.	
On August 4, 2011, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter and nine months ended June 30, 2011. A copy of the press release is furnished as part of this Current Report as Exhibit 99.
Neither the furnishing of the press release as an exhibit to this Current Report nor the inclusion in such press release of any reference to the Company’s internet address shall, under any circumstances, be deemed to incorporate the information available at such internet address into this Current Report. The information available at the Company’s internet address is not part of this Current Report or any other report filed or furnished by the Company with the Securities and Exchange Commission.
In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), the press release furnished as part of this Current Report as Exhibit 99 contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures prepared in accordance with GAAP.
Certain statements contained herein or in the press release furnished as part of this Current Report, including statements 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” and “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There can be no assurance that the Company’s projections will in fact be achieved nor do these projections reflect any acquisitions or divestitures that may occur in the future. While the Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. Furthermore, each forward-looking statement speaks only as of the date on which it is made. 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: 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 terrorist activities, acts of war, major accidents, fires, severe weather, pest infestation or natural disasters; 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, 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 and regulations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, and exploration and production activities such as hydraulic fracturing; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; significant changes in market dynamics or competitive factors affecting the Company’s ability to retain existing customers or obtain new customers; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or cost of derivative financial instruments; changes in the 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 or geographic location; changes in the projected profitability of pending or potential projects, investments or transactions; significant differences between the Company’s projected and actual capital expenditures and operating expenses; 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; governmental/regulatory actions, initiatives and proceedings, including those involving derivatives, acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; 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; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; 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.

Item 9.01	Financial Statements and Exhibits.	
 
 	(d)	Exhibits	

Exhibit 99	  	Press release furnished regarding earnings for the quarter and nine months ended June 30, 2011	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NATIONAL FUEL GAS COMPANY	
		
By:	 	    /s/ James R. Peterson	
	 	    James R. Peterson	
	 	    Assistant Secretary	
Dated: August 5, 2011

EXHIBIT INDEX

Exhibit
Number	  	Description	
		
99	  	Press release furnished regarding earnings for the quarter and nine months ended June 30, 2011	

Exhibit 99

	  	National Fuel Gas Company	  	Financial
News	

Release Date:         Immediate August 4, 2011	  	6363 Main Street/Williamsville, NY 14221
 
Timothy J. Silverstein
Investor Relations
716-857-6987
 
David P. Bauer
Treasurer
716-857-7318	
NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS
WILLIAMSVILLE, N.Y. – National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the third quarter of fiscal 2011 and for the nine months ended June 30, 2011.
HIGHLIGHTS
 
•	 	Earnings for the third quarter were $46.9 million or $0.56 per share, an increase of $4.3 million, or $0.05 per share, compared to the prior year’s third quarter earnings of $42.6 million, or $0.51 per share. The increase is mainly due to higher earnings in the Exploration and Production, Utility, and Energy Marketing segments and the All Other category.	
 
•	 	Compared to the prior year’s third quarter, production of crude oil and natural gas increased approximately 3.6 billion cubic feet equivalent (“Bcfe”), or 27.5%, to 16.9 Bcfe. Appalachian production increased 152.5% to 12.2 Bcfe, including production from the Marcellus Shale of 10.3 Bcfe. The Company’s production for the entire 2011 fiscal year is expected to be between 68 and 71 Bcfe.	
 
•	 	The Company is increasing and narrowing its GAAP earnings guidance range for fiscal 2011 to a range of $3.00 to $3.10 per share. The previous earnings guidance had been a range between $2.83 to $2.98 per share, (inclusive of the $0.37 per share gain on the sale of the Company’s landfill gas electric generation assets) and had assumed flat NYMEX pricing of $4.00 per (“MMBtu”) for natural gas and $80.00 per barrel (“Bbl”) for crude oil. The revised guidance assumes flat NYMEX pricing of $4.00 per MMBtu for natural gas and $90.00 per Bbl for crude oil for unhedged production for the remainder of the fiscal year.	
 
•	 	The Company’s preliminary GAAP earnings guidance for fiscal 2012 is in the range of $2.85 to $3.15 per share. The 2012 preliminary guidance includes oil and gas production for the Exploration and Production segment in the range of 87 to 101 Bcfe and is based on an assumed flat NYMEX price of $4.50 per MMBtu for natural gas and $95.00 per Bbl for crude oil.	
 
•	 	A conference call is scheduled for Friday, August 5, 2011, 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 third quarter was another great quarter for National Fuel. Even with the sale of our offshore Gulf of Mexico properties, consolidated production grew by more than 27 percent from the prior year largely due to the continuing growth of Seneca’s Marcellus operations. In July, we added a fifth Seneca-operated rig, which should increase the pace of our drilling even further.
“In the Pipeline and Storage segment, our expansion initiatives are moving along as planned. Construction is under way on the Supply Corporation Line N Expansion and the Empire Pipeline Tioga County Extension projects, both of which will go in service this fall. These projects, along with several other upcoming expansions, will make National Fuel one of the preeminent infrastructure companies serving shippers and producers throughout the region.
“Combining our rapid growth in Marcellus production with significant pipeline expansion opportunities and the earnings stability provided by our Utility segment, we are well positioned to deliver long-term value for all of our stakeholders.”
SUMMARY OF RESULTS
National Fuel had consolidated earnings for the quarter ended June 30, 2011, of $46.9 million, or $0.56 per share, compared to the prior year’s third quarter earnings of $42.6 million, or $0.51 per share, an increase of $4.3 million or $0.05 per share.
Consolidated earnings for the nine months ended June 30, 2011, of $221.0 million, or $2.64 per share, increased $33.5 million, or $0.37 per share, from the same period in the prior year, where earnings were $187.5 million or $2.27 per share. (Note: All references to earnings per share are to diluted earnings per share. All amounts are stated in U.S. dollars, and all amounts used in the discussion of earnings and operating results before items impacting comparability (“Operating Results”) are after tax unless otherwise noted.)
 
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 	  	Three Months	 	  	Nine Months	 	
 	  	Ended June 30,	 	  	Ended June 30,	 	
 	  	2011	 	  	2010	 	  	2011	 	 	2010	 	
(in thousands except per share amounts)	  	 	 	  	 	 	  	 	 	 	 	 	
Reported GAAP earnings	  	$	46,891	  	  	$	42,585	  	  	$	221,045	  	 	$	187,512	  	
Items impacting comparability 1 :	  				  				  				 				
Gain on sale of landfill gas electric generation investments	  				  				  	 	(31,418	) 	 				
(Income) Loss from discontinued operations	  				  	 	57	  	  				 	 	(771	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Operating Results	  	$	46,891	  	  	$	42,642	  	  	$	189,627	  	 	$	186,741	  	

Reported GAAP earnings per share	  	$	0.56	  	  	$	0.51	  	  	$	2.64	  	 	$	2.27	  	
Items impacting comparability 1 : 	  				  				  				 				
Gain on sale of landfill gas electric generation investments	  				  				  	 	(0.37	) 	 				
(Income) Loss from discontinued operations	  				  	 	0.00	  	  				 	 	(0.01	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Operating Results	  	$	0.56	  	  	$	0.51	  	  	$	2.27	  	 	$	2.26	  	

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, 2011, to the comparable periods in 2010. Excluding these items, Operating Results for the current quarter of $46.9 million or $0.56 per share increased $4.2 million, or $0.05 per share, from the prior year’s third quarter where Operating Results were $42.6 million or $0.51 per share. Excluding these items, Operating Results for the nine months ended June 30, 2011, of $189.6 million, or $2.27 per share, compared to Operating Results of $186.7 million or $2.26 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 earnings for each segment is summarized in a tabular form at pages 10 through 13 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 Gulf of Mexico assets in April 2011.
 
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The Exploration and Production segment’s earnings in the third quarter of fiscal 2011 of $32.8 million, or $0.39 per share, increased $4.9 million, or $0.06 per share, when compared with the prior year’s third quarter. The increase was mainly due to natural gas production that was 4.5 Bcf higher than the third quarter of fiscal 2010.
Overall production of natural gas and crude oil for the current quarter of 16.9 Bcfe increased approximately 3.6 Bcfe, or 27.5 percent, compared to the prior year’s third quarter. Production from Seneca’s Appalachia properties increased approximately 153 percent to 12.2 Bcfe, mainly due to a 7.8 Bcfe increase in production from Marcellus wells. Gulf of Mexico production decreased 3.6 Bcfe due to the April 2011 sale of Seneca’s offshore assets. Production in California was relatively flat.
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, 2011, was $5.48 per thousand cubic feet (“Mcf”), a decrease of $0.26 per Mcf compared to the prior year’s third quarter. Higher crude oil prices realized after hedging contributed to the increase in earnings. The weighted average crude oil price received by Seneca (after hedging) for the quarter ended June 30, 2011, was $84.37 per Bbl, an increase of $9.14 per Bbl.
Depletion, lease operating expenses (“LOE”), and general and administrative (“G&A”) expenses for the current year’s third quarter increased over last year’s third quarter due to the higher production activity discussed above. However on a per unit basis, LOE decreased $0.17 per thousand cubic feet equivalent (“Mcfe”) largely due to the increase in Marcellus production which has a lower LOE rate than our Upper Devonian or California production. Depletion was unchanged. G&A increased $0.04 per Mcfe due to higher labor expenses, including additional staffing and relocation costs related to the opening of the Pittsburgh office in the East division during the quarter.
The Exploration and Production segment’s earnings of $93.5 million, or $1.12 per share, for the nine months ended June 30, 2011, increased $8.4 million, or $0.09 per share, when compared with the nine months ended June 30, 2010. The increase was primarily due to natural gas production that was 15.7 Bcf higher than the prior year’s nine-month period.
Overall production for the nine months ended June 30, 2011, increased 38.8 percent to 50.8 Bcfe, an increase of 14.2 Bcfe compared to the prior year’s nine-month period. Production from Seneca’s Appalachia properties increased approximately 177 percent to 31.2 Bcfe, mainly due to a 20.9 Bcfe increase in production from Marcellus wells. In the Gulf of Mexico, production decreased by 5.2 Bcfe due to the April sale of Seneca’s offshore assets. Production in California was relatively flat.
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 30, 2011, was $5.36 per Mcf, a decrease of $0.80 per Mcf from last year’s third quarter. Higher crude oil prices realized after hedging contributed to the increase in earnings. The weighted average crude oil price received by Seneca (after hedging) for the nine-month period ended June 30, 2011, was $80.78 per Bbl, an increase of $5.13 per Bbl.
 
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Depletion, LOE and G&A expenses for the nine months ended June 30, 2011, increased compared to the prior year’s nine-month period due to the higher production activity discussed above. However, on a per unit basis, LOE decreased $0.14 per Mcfe for the reason described above and G&A expense was unchanged. Depletion increased $0.03 per Mcfe.
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. (“Empire”). 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 $4.5 million, or $0.05 per share, for the quarter ended June 30, 2011, decreased $2.7 million, or $0.04 per share, when compared with the same period in the prior fiscal year. The decrease was mostly due to increased operating expenses mainly due to increased pension expense, compressor station maintenance and preliminary survey costs associated with expansion projects and lower firm transportation revenues due to the continued impact of capacity turnbacks at Niagara. Although more volumes of natural gas were transported for shippers under their firm transportation contracts, largely due to colder weather, the impact to revenues was minimal given Supply and Empire’s straight-fixed variable rate design. A higher allowance for funds used during construction (“AFUDC”) associated with the Line N and Tioga expansion projects partially offset the decrease in earnings.
The Pipeline and Storage segment’s earnings of $24.0 million, or $0.29 per share, for the nine months ended June 30, 2011, decreased $6.0 million, or $0.08 per share, when compared with the nine months ended June 30, 2010. The decrease in earnings for the current nine-month period was due to higher operating expenses and lower firm transportation revenues for the reasons described above. Higher depreciation expense and higher property taxes also reduced earnings in the current nine-month period. Higher AFUDC associated with expansion projects had a positive impact on earnings.
Utility Segment
The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.
The Utility segment’s earnings of $6.3 million, or $0.08 per share, for the quarter ended June 30, 2011, increased $0.4 million, or $0.01 per share, compared to the quarter ended June 30, 2010. Colder weather and higher customer usage in Pennsylvania and lower operating expenses in both the New York and Pennsylvania divisions had a positive impact on earnings. The impact of weather variations on earnings in New York is mitigated by that jurisdiction’s weather normalization clause. Higher property taxes, the impact of a change in the calculation of certain regulatory expenses and higher income taxes partially offset the positive impact of the above items.
 
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The Utility segment’s earnings of $62.4 million, or $0.74 per share, for the nine months ended June 30, 2011, were consistent with earnings of $62.3 million, or $0.75 per share, for the nine months ended June 30, 2010. Colder weather and higher customer usage in Pennsylvania was offset by the impact of a New York regulatory adjustment regarding the timing of collection of certain regulatory expenses. Depreciation expense, property taxes, and income taxes in both jurisdictions were higher than the previous year.
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, 2011, of $1.9 million increased $0.5 million compared to the third quarter of the prior year primarily due to lower operating expenses. Earnings for the nine months ended June 30, 2011, in the Energy Marketing segment of $9.1 million increased $0.7 million compared to the prior year’s nine-month period. The increase is due to higher volumes sold to retail customers, improved average margins per Mcf, and lower operating expenses compared to the same period in fiscal 2010.
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 the Northeast division of Seneca Resources Corporation that markets high quality hardwoods from Appalachian land holdings.
Earnings in the Corporate and All Other category for the quarter ended June 30, 2011, were $1.4 million compared to the prior year’s third quarter earnings of $0.1 million. The comparability of the results for the quarters ended June 30, 2011, and June 30, 2010, was impacted by the following item. On September 1, 2010, the Company completed the sale of its landfill gas operations. As a result of this transaction, the Company is presenting the landfill gas operations as discontinued operations. Earnings in the third quarter of fiscal 2010 include a loss from discontinued operations of $0.1 million.
Excluding discontinued operations, Operating Results in the Corporate and All Other category of $1.4 million in the current year third quarter increased $1.2 million from the prior year’s third quarter. Higher earnings from Midstream’s pipeline gathering and natural gas processing operations and sales of standing timber resulted in increased Operating Results. Corporate operating expenses and state franchise taxes were higher than the previous year.
Earnings in the Corporate and All Other category for the nine months ended June 30, 2011, were $32.0 million, an increase of $30.3 million compared to earnings of $1.7 million in the prior year nine-month period. The comparability of the results for the nine months ended June 30, 2011, and the prior year’s nine-month period was impacted by $0.8 million of income from discontinued operations as a result of the sale of the Company’s landfill gas operations described
 
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above and a $31.4 million gain realized on the of February 2011 Horizon Power, Inc. sale of its interest in certain entities that owned landfill gas electric generation assets.
Excluding these items, Operating Results for the nine months ended June 30, 2011, of $0.6 million decreased $0.3 million from the prior year’s nine-month period. Lower earnings from timber sales (due to the sale of the sawmill operations), lower income from unconsolidated subsidiaries (due to the sale of landfill gas electric generation assets described above), higher corporate operating expenses and higher state franchise taxes more than offset higher earnings from Midstream’s pipeline gathering and natural gas processing operations.
EARNINGS GUIDANCE
The Company is increasing and narrowing its GAAP earnings guidance range for fiscal 2011 to a range of $3.00 to $3.10 per share. The previous guidance range had been $2.83 to $2.98 per share, (inclusive of the $0.37 per share gain on the sale of the Company’s landfill gas electric generation assets) and had assumed flat NYMEX pricing of $4.00 per MMBtu for natural gas and $80.00 per Bbl for crude oil. The revised guidance includes oil and gas production for fiscal 2011 for the Exploration and Production segment in a range between 68 and 71 Bcfe, hedges currently in place, and flat NYMEX commodity pricing on unhedged volumes of $4.00 per MMBtu for natural gas and $90.00 per Bbl for crude oil.
The Company’s preliminary GAAP earnings guidance for fiscal 2012 is in the range of $2.85 to $3.15 per share. This includes oil and gas production for the Exploration and Production segment in the range of 87 to 101 Bcfe and is based on an assumed flat NYMEX price of $4.50 per MMBtu for natural gas and $95.00 per Bbl for crude oil.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, August 5, 2011, 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 on National Fuel’s website at investor.nationalfuelgas.com . For those without Internet access, access is also provided by dialing (toll-free) 1-800-901-5259, using the passcode “63064116.” 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 “46229014.” Both the webcast and telephonic replay will be available until the close of business on Friday, August 12, 2011.
National Fuel is an integrated energy company with $5.1 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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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: 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 terrorist activities, acts of war, major accidents, fires, severe weather, pest infestation or natural disasters; 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, 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 and regulations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, and exploration and production activities such as hydraulic fracturing; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; significant changes in market dynamics or competitive factors affecting the Company’s ability to retain existing customers or obtain new customers; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or cost of derivative financial instruments; changes in the 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 or geographic location; changes in the projected profitability of pending or potential projects, investments or transactions; significant differences between the Company’s projected and actual capital expenditures and operating expenses; 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; governmental/regulatory actions, initiatives and proceedings, including those involving derivatives, acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; 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; significant
 
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changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; 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, 2011

(Thousands of Dollars)	  	Exploration &
Production	 	 	Pipeline &
Storage	 	 	Utility	 	 	Energy
Marketing	 	  	Corporate /
All Other **	 	 	Consolidated***	 	
							
Third quarter 2010 GAAP earnings	  	$	27,883	  	 	$	7,234	  	 	$	5,969	  	 	$	1,411	  	  	$	88	  	 	$	42,585	  	
Items impacting comparability:	  				 				 				 				  				 				
Loss from discontinued operations	  				 				 				 				  	 	57	  	 	$	57	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Third quarter 2010 operating results	  	 	27,883	  	 	 	7,234	  	 	 	5,969	  	 	 	1,411	  	  	 	145	  	 	 	42,642	  	
							
Drivers of operating results	  				 				 				 				  				 				
Higher (lower) crude oil prices	  	 	3,950	  	 				 				 				  				 	 	3,950	  	
Higher (lower) natural gas prices	  	 	(2,234	) 	 				 				 				  				 	 	(2,234	) 	
Higher (lower) natural gas production	  	 	16,838	  	 				 				 				  				 	 	16,838	  	
Higher (lower) crude oil production	  	 	(7,091	) 	 				 				 				  				 	 	(7,091	) 	
Lower (higher) lease operating expenses	  	 	(947	) 	 				 				 				  				 	 	(947	) 	
Lower (higher) depreciation / depletion	  	 	(5,203	) 	 	 	(436	) 	 				 				  	 	1,324	  	 	 	(4,315	) 	
Higher (lower) processing plant revenues	  	 	272	  	 				 				 				  				 	 	272	  	
							
Higher (lower) transportation revenues	  				 	 	(852	) 	 				 				  				 	 	(852	) 	
Higher (lower) gathering and processing revenues	  				 	 	—  	  	 				 				  	 	1,182	  	 	 	1,182	  	
Lower (higher) operating expenses	  	 	(1,212	) 	 	 	(2,105	) 	 	 	506	  	 	 	282	  	  	 	(292	) 	 	 	(2,821	) 	
Lower (higher) property, franchise and other taxes	  	 	497	  	 	 	—  	  	 	 	(358	) 	 				  	 	(912	) 	 	 	(773	) 	
							
Usage	  				 				 	 	600	  	 				  				 	 	600	  	
Colder weather in Pennsylvania	  				 				 	 	1,355	  	 				  				 	 	1,355	  	
Regulatory true-up adjustments	  				 				 	 	(580	) 	 				  				 	 	(580	) 	
							
Higher (lower) income from unconsolidated subsidiaries	  				 				 				 				  	 	(455	) 	 	 	(455	) 	
							
Higher (lower) margins	  				 				 				 				  	 	(684	) 	 	 	(684	) 	
							
Higher AFUDC *	  				 	 	502	  	 				 				  				 	 	502	  	
Higher (lower) interest income	  				 	 	—  	  	 				 				  	 	(2,353	) 	 	 	(2,353	) 	
Lower (higher) interest expense	  	 	2,156	  	 				 	 	—  	  	 				  	 	2,439	  	 	 	4,595	  	
							
Lower (higher) income tax expense/effective tax rate	  	 	(2,169	) 	 	 	264	  	 	 	(905	) 	 	 	131	  	  	 	647	  	 	 	(2,032	) 	
							
All other / rounding	  	 	44	  	 	 	(104	) 	 	 	(259	) 	 	 	67	  	  	 	344	  	 	 	92	  	

Third quarter 2011 GAAP earnings	  	$	32,784	  	 	$	4,503	  	 	$	6,328	  	 	$	1,891	  	  	$	1,385	  	 	$	46,891	  	

*	AFUDC = Allowance for Funds Used During Construction	
**	Includes discontinued operations	
***	Amounts do not reflect intercompany eliminations	
 
Page 10

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2011

 	  	Exploration &
Production	 	 	Pipeline &
Storage	 	 	Utility	 	 	Energy
Marketing	 	  	Corporate /
All Other **	 	 	Consolidated***	 	
							
Third quarter 2010 GAAP earnings	  	$	0.33	  	 	$	0.09	  	 	$	0.07	  	 	$	0.02	  	  	$	—  	  	 	$	0.51	  	
Items impacting comparability:	  				 				 				 				  				 				
Loss from discontinued operations	  				 				 				 				  	 	—  	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Third quarter 2010 operating results	  	 	0.33	  	 	 	0.09	  	 	 	0.07	  	 	 	0.02	  	  	 	—  	  	 	 	0.51	  	
							
Drivers of operating results	  				 				 				 				  				 				
Higher (lower) crude oil prices	  	 	0.05	  	 				 				 				  				 	 	0.05	  	
Higher (lower) natural gas prices	  	 	(0.03	) 	 				 				 				  				 	 	(0.03	) 	
Higher (lower) natural gas production	  	 	0.20	  	 				 				 				  				 	 	0.20	  	
Higher (lower) crude oil production	  	 	(0.08	) 	 				 				 				  				 	 	(0.08	) 	
Lower (higher) lease operating expenses	  	 	(0.01	) 	 				 				 				  				 	 	(0.01	) 	
Lower (higher) depreciation / depletion	  	 	(0.06	) 	 	 	(0.01	) 	 				 				  	 	0.02	  	 	 	(0.05	) 	
Higher (lower) processing plant revenues	  	 	—  	  	 				 				 				  				 	 	—  	  	
							
Higher (lower) transportation revenues	  				 	 	(0.01	) 	 				 				  				 	 	(0.01	) 	
Higher (lower) gathering and processing revenues	  				 	 	—  	  	 				 				  	 	0.01	  	 	 	0.01	  	
Lower (higher) operating expenses	  	 	(0.01	) 	 	 	(0.03	) 	 	 	0.01	  	 	 	—  	  	  	 	—  	  	 	 	(0.03	) 	
Lower (higher) property, franchise and other taxes	  	 	0.01	  	 	 	—  	  	 	 	—  	  	 				  	 	(0.01	) 	 	 	—  	  	
							
Usage	  				 				 	 	0.01	  	 				  				 	 	0.01	  	
Colder weather in Pennsylvania	  				 				 	 	0.02	  	 				  				 	 	0.02	  	
Regulatory true-up adjustments	  				 				 	 	(0.01	) 	 				  				 	 	(0.01	) 	
							
Higher (lower) income from unconsolidated subsidiaries	  				 				 				 				  	 	(0.01	) 	 	 	(0.01	) 	
							
Higher (lower) margins	  				 				 				 				  	 	(0.01	) 	 	 	(0.01	) 	
							
Higher AFUDC *	  				 	 	0.01	  	 				 				  				 	 	0.01	  	
Higher (lower) interest income	  				 	 	—  	  	 				 				  	 	(0.03	) 	 	 	(0.03	) 	
Lower (higher) interest expense	  	 	0.03	  	 				 	 	—  	  	 				  	 	0.03	  	 	 	0.06	  	
							
Lower (higher) income tax expense/effective tax rate	  	 	(0.03	) 	 	 	—  	  	 	 	(0.01	) 	 	 	—  	  	  	 	0.01	  	 	 	(0.03	) 	
							
All other / rounding	  	 	(0.01	) 	 	 	—  	  	 	 	(0.01	) 	 	 	—  	  	  	 	0.01	  	 	 	(0.01	) 	

Third quarter 2011 GAAP earnings	  	$	0.39	  	 	$	0.05	  	 	$	0.08	  	 	$	0.02	  	  	$	0.02	  	 	$	0.56	  	

*	AFUDC = Allowance for Funds Used During Construction	
**	Includes discontinued operations	
***	Amounts do not reflect intercompany eliminations	
 
Page 11

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2011

(Thousands of Dollars)	  	Exploration &
Production	 	 	Pipeline &
Storage	 	 	Utility	 	 	Energy
Marketing	 	  	Corporate /
All Other **	 	 	Consolidated***	 	
							
Nine months ended June 30, 2010 GAAP earnings	  	$	85,046	  	 	$	30,036	  	 	$	62,254	  	 	$	8,472	  	  	$	1,704	  	 	$	187,512	  	
Items impacting comparability:	  				 				 				 				  				 				
Income from discontinued operations	  				 				 				 				  	 	(771	) 	 	 	(771	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Nine months ended June 30, 2010 operating results	  	 	85,046	  	 	 	30,036	  	 	 	62,254	  	 	 	8,472	  	  	 	933	  	 	 	186,741	  	
							
Drivers of operating results	  				 				 				 				  				 				
Higher (lower) crude oil prices	  	 	7,278	  	 				 				 				  				 	 	7,278	  	
Higher (lower) natural gas prices	  	 	(19,755	) 	 				 				 				  				 	 	(19,755	) 	
Higher (lower) natural gas production	  	 	62,885	  	 				 				 				  				 	 	62,885	  	
Higher (lower) crude oil production	  	 	(12,292	) 	 				 				 				  				 	 	(12,292	) 	
Lower (higher) lease operating expenses	  	 	(6,397	) 	 				 				 				  				 	 	(6,397	) 	
Lower (higher) depreciation / depletion	  	 	(20,705	) 	 	 	(766	) 	 	 	(559	) 	 				  	 	3,384	  	 	 	(18,646	) 	
Higher (lower) processing plant revenues	  	 	1,127	  	 				 				 				  				 	 	1,127	  	
							
Higher (lower) transportation revenues	  				 	 	(2,536	) 	 				 				  				 	 	(2,536	) 	
Higher (lower) gathering and processing revenues	  				 	 	—  	  	 				 				  	 	3,805	  	 	 	3,805	  	
Lower (higher) operating costs	  	 	(5,272	) 	 	 	(3,939	) 	 	 	—  	  	 	 	110	  	  	 	(988	) 	 	 	(10,089	) 	
Lower (higher) property, franchise and other taxes	  	 	(1,139	) 	 	 	(367	) 	 	 	(892	) 	 				  	 	(1,243	) 	 	 	(3,641	) 	
							
Usage	  				 				 	 	2,100	  	 				  				 	 	2,100	  	
Colder weather in Pennsylvania	  				 				 	 	2,365	  	 				  				 	 	2,365	  	
Regulatory true-up adjustments	  				 				 	 	(2,019	) 	 				  				 	 	(2,019	) 	
							
Higher (lower) income from unconsolidated subsidiaries	  				 				 				 				  	 	(1,556	) 	 	 	(1,556	) 	
							
Higher (lower) margins	  				 				 				 	 	345	  	  	 	(5,682	) 	 	 	(5,337	) 	
							
Higher AFUDC *	  				 	 	973	  	 				 				  				 	 	973	  	
Higher (lower) interest income	  	 	—  	  	 	 	—  	  	 				 				  	 	(5,699	) 	 	 	(5,699	) 	
Lower (higher) interest expense	  	 	5,750	  	 	 	—  	  	 	 	524	  	 				  	 	5,952	  	 	 	12,226	  	
							
Lower (higher) income tax expense/effective tax rate	  	 	(2,899	) 	 	 	670	  	 	 	(1,568	) 	 	 	166	  	  	 	552	  	 	 	(3,079	) 	
							
All other / rounding	  	 	(172	) 	 	 	(35	) 	 	 	194	  	 	 	29	  	  	 	1,157	  	 	 	1,173	  	

Nine months ended June 30, 2011 operating results	  	 	93,455	  	 	 	24,036	  	 	 	62,399	  	 	 	9,122	  	  	 	615	  	 	 	189,627	  	
Items impacting comparability:	  				 				 				 				  				 				
Gain on sale of unconsolidated subsidiaries	  				 				 				 				  	 	31,418	  	 	 	31,418	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Nine months ended June 30, 2011 GAAP earnings	  	$	93,455	  	 	$	24,036	  	 	$	62,399	  	 	$	9,122	  	  	$	32,033	  	 	$	221,045	  	

*	AFUDC = Allowance for Funds Used During Construction	
**	Includes discontinued operations	
***	Amounts do not reflect intercompany eliminations	
 
Page 12

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2011

 	  	Exploration &
Production	 	 	Pipeline &
Storage	 	 	Utility	 	 	Energy
Marketing	 	  	Corporate /
All Other **	 	 	Consolidated***	 	
							
Nine months ended June 30, 2010 GAAP earnings	  	$	1.03	  	 	$	0.37	  	 	$	0.75	  	 	$	0.10	  	  	$	0.02	  	 	$	2.27	  	
Items impacting comparability:	  				 				 				 				  				 				
Income from discontinued operations	  				 				 				 				  	 	(0.01	) 	 	 	(0.01	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Nine months ended June 30, 2010 operating results	  	 	1.03	  	 	 	0.37	  	 	 	0.75	  	 	 	0.10	  	  	 	0.01	  	 	 	2.26	  	
							
Drivers of operating results	  				 				 				 				  				 				
Higher (lower) crude oil prices	  	 	0.09	  	 				 				 				  				 	 	0.09	  	
Higher (lower) natural gas prices	  	 	(0.24	) 	 				 				 				  				 	 	(0.24	) 	
Higher (lower) natural gas production	  	 	0.75	  	 				 				 				  				 	 	0.75	  	
Higher (lower) crude oil production	  	 	(0.15	) 	 				 				 				  				 	 	(0.15	) 	
Lower (higher) lease operating expenses	  	 	(0.08	) 	 				 				 				  				 	 	(0.08	) 	
Lower (higher) depreciation / depletion	  	 	(0.25	) 	 	 	(0.01	) 	 	 	(0.01	) 	 				  	 	0.04	  	 	 	(0.23	) 	
Higher (lower) processing plant revenues	  	 	0.01	  	 				 				 				  				 	 	0.01	  	
							
Higher (lower) transportation revenues	  				 	 	(0.03	) 	 				 				  				 	 	(0.03	) 	
Higher (lower) gathering and processing revenues	  				 	 	—  	  	 				 				  	 	0.05	  	 	 	0.05	  	
Lower (higher) operating costs	  	 	(0.06	) 	 	 	(0.05	) 	 	 	—  	  	 	 	—  	  	  	 	(0.01	) 	 	 	(0.12	) 	
Lower (higher) property, franchise and other taxes	  	 	(0.01	) 	 	 	—  	  	 	 	(0.01	) 	 				  	 	(0.01	) 	 	 	(0.03	) 	
							
Usage	  				 				 	 	0.03	  	 				  				 	 	0.03	  	
Colder weather in Pennsylvania	  				 				 	 	0.03	  	 				  				 	 	0.03	  	
Regulatory true-up adjustments	  				 				 	 	(0.02	) 	 				  				 	 	(0.02	) 	
							
Higher (lower) income from unconsolidated subsidiaries	  				 				 				 				  	 	(0.02	) 	 	 	(0.02	) 	
							
Higher (lower) margins	  				 				 				 	 	—  	  	  	 	(0.07	) 	 	 	(0.07	) 	
							
Higher AFUDC *	  				 	 	0.01	  	 				 				  				 	 	0.01	  	
Higher (lower) interest income	  	 	—  	  	 	 	—  	  	 				 				  	 	(0.07	) 	 	 	(0.07	) 	
Lower (higher) interest expense	  	 	0.07	  	 	 	—  	  	 	 	0.01	  	 				  	 	0.07	  	 	 	0.15	  	
							
Lower (higher) income tax expense/effective tax rate	  	 	(0.03	) 	 	 	0.01	  	 	 	(0.02	) 	 	 	—  	  	  	 	0.01	  	 	 	(0.03	) 	
							
All other / rounding	  	 	(0.01	) 	 	 	(0.01	) 	 	 	(0.02	) 	 	 	0.01	  	  	 	0.01	  	 	 	(0.02	) 	

Nine months ended June 30, 2011 operating results	  	 	1.12	  	 	 	0.29	  	 	 	0.74	  	 	 	0.11	  	  	 	0.01	  	 	 	2.27	  	
Items impacting comparability:	  				 				 				 				  				 				
Gain on sale of unconsolidated subsidiaries	  				 				 				 				  	 	0.37	  	 	 	0.37	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Nine months ended June 30, 2011 GAAP earnings	  	$	1.12	  	 	$	0.29	  	 	$	0.74	  	 	$	0.11	  	  	$	0.38	  	 	$	2.64	  	

*	AFUDC = Allowance for Funds Used During Construction	
**	Includes discontinued operations	
***	Amounts do not reflect intercompany eliminations	
 
Page 13

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

																	
(Thousands of Dollars, except per share amounts)	  	Three Months Ended
June 30,
(Unaudited)	 	 	Nine Months Ended
June 30,
(Unaudited)	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
SUMMARY OF OPERATIONS	  				 				 				 				
Operating Revenues	  	$	380,979	  	 	$	351,992	  	 	$	1,492,808	  	 	$	1,474,107	  	

Operating Expenses:	  				 				 				 				
Purchased Gas	  	 	112,725	  	 	 	97,195	  	 	 	582,358	  	 	 	601,408	  	
Operation and Maintenance	  	 	95,977	  	 	 	96,593	  	 	 	310,148	  	 	 	306,624	  	
Property, Franchise and Other Taxes	  	 	20,179	  	 	 	18,594	  	 	 	63,714	  	 	 	57,684	  	
Depreciation, Depletion and Amortization	  	 	57,293	  	 	 	50,422	  	 	 	170,617	  	 	 	141,935	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	286,174	  	 	 	262,804	  	 	 	1,126,837	  	 	 	1,107,651	  	
					
Operating Income	  	 	94,805	  	 	 	89,188	  	 	 	365,971	  	 	 	366,456	  	
					
Other Income (Expense):	  				 				 				 				
Income (Loss) from Unconsolidated Subsidiaries	  	 	(77	) 	 	 	624	  	 	 	(698	) 	 	 	1,696	  	
Gain on Sale of Unconsolidated Subsidiaries	  	 	—  	  	 	 	—  	  	 	 	50,879	  	 	 	—  	  	
Other Income	  	 	1,890	  	 	 	851	  	 	 	4,828	  	 	 	2,473	  	
Interest Income	  	 	325	  	 	 	568	  	 	 	1,277	  	 	 	2,048	  	
Interest Expense on Long-Term Debt	  	 	(17,876	) 	 	 	(21,115	) 	 	 	(55,994	) 	 	 	(65,238	) 	
Other Interest Expense	  	 	(1,159	) 	 	 	(1,866	) 	 	 	(4,014	) 	 	 	(5,245	) 	

Income from Continuing Operations Before Income Taxes	  	 	77,908	  	 	 	68,250	  	 	 	362,249	  	 	 	302,190	  	
					
Income Tax Expense	  	 	31,017	  	 	 	25,608	  	 	 	141,204	  	 	 	115,449	  	

Income from Continuing Operations	  	 	46,891	  	 	 	42,642	  	 	 	221,045	  	 	 	186,741	  	
					
Income (Loss) from Discontinued Operations, Net of Tax	  	 	—  	  	 	 	(57	) 	 	 	—  	  	 	 	771	  	

Net Income Available for Common Stock	  	$	46,891	  	 	$	42,585	  	 	$	221,045	  	 	$	187,512	  	

Earnings Per Common Share:	  				 				 				 				
Basic:	  				 				 				 				
Income from Continuing Operations	  	$	0.57	  	 	$	0.52	  	 	$	2.68	  	 	$	2.30	  	
Income (Loss) from Discontinued Operations	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	0.01	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Available for Common Stock	  	$	0.57	  	 	$	0.52	  	 	$	2.68	  	 	$	2.31	  	

Diluted:	  				 				 				 				
Income from Continuing Operations	  	$	0.56	  	 	$	0.51	  	 	$	2.64	  	 	$	2.26	  	
Income (Loss) from Discontinued Operations	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	0.01	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Available for Common Stock	  	$	0.56	  	 	$	0.51	  	 	$	2.64	  	 	$	2.27	  	

Weighted Average Common Shares:	  				 				 				 				
Used in Basic Calculation	  	 	82,687,467	  	 	 	81,801,377	  	 	 	82,436,603	  	 	 	81,178,000	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Used in Diluted Calculation	  	 	83,782,493	  	 	 	82,970,921	  	 	 	83,649,498	  	 	 	82,556,730	  	

Page 14

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

(Thousands of Dollars)	  	June 30,
2011	 	 	September 30,
2010	 	
			
ASSETS	  				 				
Property, Plant and Equipment	  	$	5,392,065	  	 	$	5,637,498	  	
Less - Accumulated Depreciation, Depletion and Amortization	  	 	1,607,088	  	 	 	2,187,269	  	
	  	 	 	 	 	 	 	 	
Net Property, Plant and Equipment	  	 	3,784,977	  	 	 	3,450,229	  	

Current Assets:	  				 				
Cash and Temporary Cash Investments	  	 	184,710	  	 	 	397,171	  	
Hedging Collateral Deposits	  	 	37,984	  	 	 	11,134	  	
Receivables - Net	  	 	165,576	  	 	 	132,136	  	
Unbilled Utility Revenue	  	 	13,399	  	 	 	20,920	  	
Gas Stored Underground	  	 	22,525	  	 	 	48,584	  	
Materials and Supplies - at average cost	  	 	28,923	  	 	 	24,987	  	
Other Current Assets	  	 	44,786	  	 	 	115,969	  	
Deferred Income Taxes	  	 	22,885	  	 	 	24,476	  	
	  	 	 	 	 	 	 	 	
Total Current Assets	  	 	520,788	  	 	 	775,377	  	

Other Assets:	  				 				
Recoverable Future Taxes	  	 	151,142	  	 	 	149,712	  	
Unamortized Debt Expense	  	 	11,058	  	 	 	12,550	  	
Other Regulatory Assets	  	 	524,355	  	 	 	542,801	  	
Deferred Charges	  	 	4,989	  	 	 	9,646	  	
Other Investments	  	 	84,118	  	 	 	77,839	  	
Investments in Unconsolidated Subsidiaries	  	 	1,367	  	 	 	14,828	  	
Goodwill	  	 	5,476	  	 	 	5,476	  	
Fair Value of Derivative Financial Instruments	  	 	43,347	  	 	 	65,184	  	
Other	  	 	1,648	  	 	 	1,983	  	
	  	 	 	 	 	 	 	 	
Total Other Assets	  	 	827,500	  	 	 	880,019	  	
	  	 	 	 	 	 	 	 	
Total Assets	  	$	5,133,265	  	 	$	5,105,625	  	

CAPITALIZATION AND LIABILITIES	  				 				
Capitalization:	  				 				
Comprehensive Shareholders’ Equity	  				 				
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 82,700,177 Shares and 82,075,470 Shares, Respectively	  	$	82,700	  	 	$	82,075	  	
Paid in Capital	  	 	644,945	  	 	 	645,619	  	
Earnings Reinvested in the Business	  	 	1,198,064	  	 	 	1,063,262	  	
	  	 	 	 	 	 	 	 	
Total Common Shareholders’ Equity Before Items of Other Comprehensive Loss	  	 	1,925,709	  	 	 	1,790,956	  	
Accumulated Other Comprehensive Loss	  	 	(75,098	) 	 	 	(44,985	) 	
	  	 	 	 	 	 	 	 	
Total Comprehensive Shareholders’ Equity	  	 	1,850,611	  	 	 	1,745,971	  	
Long-Term Debt, Net of Current Portion	  	 	899,000	  	 	 	1,049,000	  	
	  	 	 	 	 	 	 	 	
Total Capitalization	  	 	2,749,611	  	 	 	2,794,971	  	

Current and Accrued Liabilities:	  				 				
Notes Payable to Banks and Commercial Paper	  	 	—  	  	 	 	—  	  	
Current Portion of Long-Term Debt	  	 	150,000	  	 	 	200,000	  	
Accounts Payable	  	 	95,182	  	 	 	89,677	  	
Amounts Payable to Customers	  	 	25,661	  	 	 	38,109	  	
Dividends Payable	  	 	29,358	  	 	 	28,316	  	
Interest Payable on Long-Term Debt	  	 	15,953	  	 	 	30,512	  	
Customer Advances	  	 	1,021	  	 	 	27,638	  	
Customer Security Deposits	  	 	17,672	  	 	 	18,320	  	
Other Accruals and Current Liabilities	  	 	133,856	  	 	 	71,592	  	
Fair Value of Derivative Financial Instruments	  	 	44,607	  	 	 	20,160	  	
	  	 	 	 	 	 	 	 	
Total Current and Accrued Liabilities	  	 	513,310	  	 	 	524,324	  	

Deferred Credits:	  				 				
Deferred Income Taxes	  	 	919,145	  	 	 	800,758	  	
Taxes Refundable to Customers	  	 	70,343	  	 	 	69,585	  	
Unamortized Investment Tax Credit	  	 	2,761	  	 	 	3,288	  	
Cost of Removal Regulatory Liability	  	 	133,759	  	 	 	124,032	  	
Other Regulatory Liabilities	  	 	92,811	  	 	 	89,334	  	
Pension and Other Post-Retirement Liabilities	  	 	435,517	  	 	 	446,082	  	
Asset Retirement Obligations	  	 	65,583	  	 	 	101,618	  	
Other Deferred Credits	  	 	150,425	  	 	 	151,633	  	
	  	 	 	 	 	 	 	 	
Total Deferred Credits	  	 	1,870,344	  	 	 	1,786,330	  	
	  	 	 	 	 	 	 	 	
Commitments and Contingencies	  	 	—  	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	
Total Capitalization and Liabilities	  	 	5,133,265	  	 	$	5,105,625	  	

Page 15

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 	  	Nine Months Ended
June 30,	 	
(Thousands of Dollars)	  	2011	 	 	2010	 	
			
Operating Activities:	  				 				
Net Income Available for Common Stock	  	$	221,045	  	 	$	187,512	  	
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:	  				 				
Gain on Sale of Unconsolidated Subsidiaries	  	 	(50,879	) 	 	 	—  	  	
Depreciation, Depletion and Amortization	  	 	170,617	  	 	 	142,433	  	
Deferred Income Taxes	  	 	140,326	  	 	 	63,813	  	
(Income) Loss from Unconsolidated Subsidiaries, Net of Cash Distributions	  	 	4,976	  	 	 	904	  	
Excess Tax Costs (Benefits) Associated with Stock-Based Compensation Awards	  	 	1,224	  	 	 	(13,207	) 	
Other	  	 	2,375	  	 	 	7,884	  	
Change in:	  				 				
Hedging Collateral Deposits	  	 	(26,850	) 	 	 	(7,374	) 	
Receivables and Unbilled Utility Revenue	  	 	(25,919	) 	 	 	6,676	  	
Gas Stored Underground and Materials and Supplies	  	 	22,387	  	 	 	20,384	  	
Prepayments and Other Current Assets	  	 	69,960	  	 	 	39,043	  	
Accounts Payable	  	 	5,506	  	 	 	127	  	
Amounts Payable to Customers	  	 	(12,448	) 	 	 	(54,764	) 	
Customer Advances	  	 	(26,617	) 	 	 	(23,526	) 	
Customer Security Deposits	  	 	(648	) 	 	 	1,188	  	
Other Accruals and Current Liabilities	  	 	36,743	  	 	 	30,961	  	
Other Assets	  	 	20,255	  	 	 	29,197	  	
Other Liabilities	  	 	(15,771	) 	 	 	(11,358	) 	
	  	 	 	 	 	 	 	 	
Net Cash Provided by Operating Activities	  	$	536,282	  	 	$	419,893	  	

Investing Activities:	  				 				
Capital Expenditures	  	($	583,739	) 	 	($	327,513	) 	
Net Proceeds from Sale of Unconsolidated Subsidiaries	  	 	59,365	  	 	 	—  	  	
Net Proceeds from Sale of Oil and Gas Producing Properties	  	 	69,435	  	 	 	—  	  	
Other	  	 	(2,908	) 	 	 	(273	) 	
	  	 	 	 	 	 	 	 	
Net Cash Used in Investing Activities	  	($	457,847	) 	 	($	327,786	) 	

Financing Activities:	  				 				
Excess Tax (Costs) Benefits Associated with Stock-Based Compensation Awards	  	($	1,224	) 	 	$	13,207	  	
Reduction of Long-Term Debt	  	 	(200,000	) 	 	 	—  	  	
Dividends Paid on Common Stock	  	 	(85,201	) 	 	 	(81,318	) 	
Net Proceeds From Issuance (Repurchase) of Common Stock	  	 	(4,471	) 	 	 	26,798	  	
	  	 	 	 	 	 	 	 	
Net Cash Used in Financing Activities	  	($	290,896	) 	 	($	41,313	) 	
	  	 	 	 	 	 	 	 	
Net Increase (Decrease) in Cash and Temporary Cash Investments	  	 	(212,461	) 	 	 	50,794	  	
Cash and Temporary Cash Investments at October 1	  	 	397,171	  	 	 	408,053	  	
	  	 	 	 	 	 	 	 	
Cash and Temporary Cash Investments at June 30	  	$	184,710	  	 	$	458,847	  	

Page 16

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
(Thousands of Dollars, except per share amounts)	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
EXPLORATION AND PRODUCTION SEGMENT	  				 				 				 				 				 				
Operating Revenues	  	$	130,974	  	 	$	112,802	  	 	$	18,172	  	 	$	388,571	  	 	$	328,312	  	 	$	60,259	  	

Operating Expenses:	  				 				 				 				 				 				
Operation and Maintenance:	  				 				 				 				 				 				
General and Administrative Expense	  	 	11,342	  	 	 	8,353	  	 	 	2,989	  	 	 	35,330	  	 	 	25,700	  	 	 	9,630	  	
Lease Operating Expense	  	 	17,421	  	 	 	15,964	  	 	 	1,457	  	 	 	53,736	  	 	 	43,895	  	 	 	9,841	  	
All Other Operation and Maintenance Expense	  	 	1,252	  	 	 	2,400	  	 	 	(1,148	) 	 	 	5,196	  	 	 	6,734	  	 	 	(1,538	) 	
Property, Franchise and Other Taxes	  	 	2,114	  	 	 	2,878	  	 	 	(764	) 	 	 	9,634	  	 	 	7,881	  	 	 	1,753	  	
Depreciation, Depletion and Amortization	  	 	36,964	  	 	 	28,959	  	 	 	8,005	  	 	 	110,615	  	 	 	78,762	  	 	 	31,853	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	69,093	  	 	 	58,554	  	 	 	10,539	  	 	 	214,511	  	 	 	162,972	  	 	 	51,539	  	

Operating Income	  	 	61,881	  	 	 	54,248	  	 	 	7,633	  	 	 	174,060	  	 	 	165,340	  	 	 	8,720	  	
							
Other Income (Expense):	  				 				 				 				 				 				
Interest Income	  	 	(10	) 	 	 	190	  	 	 	(200	) 	 	 	(11	) 	 	 	500	  	 	 	(511	) 	
Other Income	  	 	1	  	 	 	—  	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	1	  	
Other Interest Expense	  	 	(3,817	) 	 	 	(7,259	) 	 	 	3,442	  	 	 	(13,825	) 	 	 	(23,013	) 	 	 	9,188	  	

Income Before Income Taxes	  	 	58,055	  	 	 	47,179	  	 	 	10,876	  	 	 	160,225	  	 	 	142,827	  	 	 	17,398	  	
Income Tax Expense	  	 	25,271	  	 	 	19,296	  	 	 	5,975	  	 	 	66,770	  	 	 	57,781	  	 	 	8,989	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	32,784	  	 	$	27,883	  	 	$	4,901	  	 	$	93,455	  	 	$	85,046	  	 	$	8,409	  	

Net Income Per Share (Diluted)	  	$	0.39	  	 	$	0.33	  	 	$	0.06	  	 	$	1.12	  	 	$	1.03	  	 	$	0.09	  	

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
PIPELINE AND STORAGE SEGMENT	  				 				 				 				 				 				
Revenues from External Customers	  	$	29,933	  	 	$	32,086	  	 	$	(2,153	) 	 	$	103,115	  	 	$	107,560	  	 	$	(4,445	) 	
Intersegment Revenues	  	 	20,324	  	 	 	19,466	  	 	 	858	  	 	 	60,838	  	 	 	60,289	  	 	 	549	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Revenues	  	 	50,257	  	 	 	51,552	  	 	 	(1,295	) 	 	 	163,953	  	 	 	167,849	  	 	 	(3,896	) 	

Operating Expenses:	  				 				 				 				 				 				
Purchased Gas	  	 	11	  	 	 	67	  	 	 	(56	) 	 	 	(14	) 	 	 	139	  	 	 	(153	) 	
Operation and Maintenance	  	 	21,643	  	 	 	18,404	  	 	 	3,239	  	 	 	61,627	  	 	 	55,566	  	 	 	6,061	  	
Property, Franchise and Other Taxes	  	 	5,173	  	 	 	5,119	  	 	 	54	  	 	 	15,781	  	 	 	15,216	  	 	 	565	  	
Depreciation, Depletion and Amortization	  	 	9,567	  	 	 	8,895	  	 	 	672	  	 	 	27,796	  	 	 	26,617	  	 	 	1,179	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	36,394	  	 	 	32,485	  	 	 	3,909	  	 	 	105,190	  	 	 	97,538	  	 	 	7,652	  	

Operating Income	  	 	13,863	  	 	 	19,067	  	 	 	(5,204	) 	 	 	58,763	  	 	 	70,311	  	 	 	(11,548	) 	
							
Other Income (Expense):	  				 				 				 				 				 				
Interest Income	  	 	73	  	 	 	65	  	 	 	8	  	 	 	252	  	 	 	117	  	 	 	135	  	
Other Income	  	 	621	  	 	 	119	  	 	 	502	  	 	 	1,336	  	 	 	365	  	 	 	971	  	
Other Interest Expense	  	 	(6,423	) 	 	 	(6,507	) 	 	 	84	  	 	 	(19,505	) 	 	 	(19,684	) 	 	 	179	  	

Income Before Income Taxes	  	 	8,134	  	 	 	12,744	  	 	 	(4,610	) 	 	 	40,846	  	 	 	51,109	  	 	 	(10,263	) 	
Income Tax Expense	  	 	3,631	  	 	 	5,510	  	 	 	(1,879	) 	 	 	16,810	  	 	 	21,073	  	 	 	(4,263	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	4,503	  	 	$	7,234	  	 	$	(2,731	) 	 	$	24,036	  	 	$	30,036	  	 	$	(6,000	) 	

Net Income Per Share (Diluted)	  	$	0.05	  	 	$	0.09	  	 	$	(0.04	) 	 	$	0.29	  	 	$	0.37	  	 	$	(0.08	) 	

Page 17

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
(Thousands of Dollars, except per share amounts)	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
UTILITY SEGMENT	  				 				 				 				 				 				
Revenues from External Customers	  	$	146,215	  	 	$	126,326	  	 	$	19,889	  	 	$	750,802	  	 	$	707,323	  	 	$	43,479	  	
Intersegment Revenues	  	 	3,475	  	 	 	2,653	  	 	 	822	  	 	 	14,680	  	 	 	13,315	  	 	 	1,365	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Revenues	  	 	149,690	  	 	 	128,979	  	 	 	20,711	  	 	 	765,482	  	 	 	720,638	  	 	 	44,844	  	

Operating Expenses:	  				 				 				 				 				 				
Purchased Gas	  	 	68,667	  	 	 	50,404	  	 	 	18,263	  	 	 	429,716	  	 	 	389,992	  	 	 	39,724	  	
Operation and Maintenance	  	 	42,524	  	 	 	42,899	  	 	 	(375	) 	 	 	146,549	  	 	 	146,327	  	 	 	222	  	
Property, Franchise and Other Taxes	  	 	11,031	  	 	 	10,140	  	 	 	891	  	 	 	34,933	  	 	 	33,142	  	 	 	1,791	  	
Depreciation, Depletion and Amortization	  	 	10,363	  	 	 	10,129	  	 	 	234	  	 	 	30,986	  	 	 	30,125	  	 	 	861	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	132,585	  	 	 	113,572	  	 	 	19,013	  	 	 	642,184	  	 	 	599,586	  	 	 	42,598	  	

Operating Income	  	 	17,105	  	 	 	15,407	  	 	 	1,698	  	 	 	123,298	  	 	 	121,052	  	 	 	2,246	  	
							
Other Income (Expense):	  				 				 				 				 				 				
Interest Income	  	 	38	  	 	 	164	  	 	 	(126	) 	 	 	485	  	 	 	1,018	  	 	 	(533	) 	
Other Income	  	 	300	  	 	 	267	  	 	 	33	  	 	 	897	  	 	 	780	  	 	 	117	  	
Other Interest Expense	  	 	(8,659	) 	 	 	(8,998	) 	 	 	339	  	 	 	(26,247	) 	 	 	(27,053	) 	 	 	806	  	

Income Before Income Taxes	  	 	8,784	  	 	 	6,840	  	 	 	1,944	  	 	 	98,433	  	 	 	95,797	  	 	 	2,636	  	
Income Tax Expense	  	 	2,456	  	 	 	871	  	 	 	1,585	  	 	 	36,034	  	 	 	33,543	  	 	 	2,491	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	6,328	  	 	$	5,969	  	 	$	359	  	 	$	62,399	  	 	$	62,254	  	 	$	145	  	

Net Income Per Share (Diluted)	  	$	0.08	  	 	$	0.07	  	 	$	0.01	  	 	$	0.74	  	 	$	0.75	  	 	$	(0.01	) 	

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
ENERGY MARKETING SEGMENT	  				 				 				 				 				 				
Revenues from External Customers	  	$	71,746	  	 	$	72,830	  	 	$	(1,084	) 	 	$	246,719	  	 	$	303,103	  	 	$	(56,384	) 	
Intersegment Revenues	  	 	156	  	 	 	—  	  	 	 	156	  	 	 	156	  	 	 	—  	  	 	 	156	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Revenues	  	 	71,902	  	 	 	72,830	  	 	 	(928	) 	 	 	246,875	  	 	 	303,103	  	 	 	(56,228	) 	

Operating Expenses:	  				 				 				 				 				 				
Purchased Gas	  	 	67,711	  	 	 	68,704	  	 	 	(993	) 	 	 	227,716	  	 	 	284,473	  	 	 	(56,757	) 	
Operation and Maintenance	  	 	1,415	  	 	 	1,847	  	 	 	(432	) 	 	 	4,553	  	 	 	4,723	  	 	 	(170	) 	
Property, Franchise and Other Taxes	  	 	8	  	 	 	7	  	 	 	1	  	 	 	34	  	 	 	24	  	 	 	10	  	
Depreciation, Depletion and Amortization	  	 	9	  	 	 	11	  	 	 	(2	) 	 	 	28	  	 	 	32	  	 	 	(4	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	69,143	  	 	 	70,569	  	 	 	(1,426	) 	 	 	232,331	  	 	 	289,252	  	 	 	(56,921	) 	

Operating Income	  	 	2,759	  	 	 	2,261	  	 	 	498	  	 	 	14,544	  	 	 	13,851	  	 	 	693	  	
							
Other Income (Expense):	  				 				 				 				 				 				
Interest Income	  	 	36	  	 	 	15	  	 	 	21	  	 	 	72	  	 	 	28	  	 	 	44	  	
Other Income	  	 	27	  	 	 	12	  	 	 	15	  	 	 	61	  	 	 	58	  	 	 	3	  	
Other Interest Expense	  	 	(4	) 	 	 	(6	) 	 	 	2	  	 	 	(15	) 	 	 	(21	) 	 	 	6	  	

Income Before Income Taxes	  	 	2,818	  	 	 	2,282	  	 	 	536	  	 	 	14,662	  	 	 	13,916	  	 	 	746	  	
Income Tax Expense	  	 	927	  	 	 	871	  	 	 	56	  	 	 	5,540	  	 	 	5,444	  	 	 	96	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	1,891	  	 	$	1,411	  	 	$	480	  	 	$	9,122	  	 	$	8,472	  	 	$	650	  	

Net Income Per Share (Diluted)	  	$	0.02	  	 	$	0.02	  	 	$	—  	  	 	$	0.11	  	 	$	0.10	  	 	$	0.01	  	

Page 18

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
(Thousands of Dollars, except per share amounts)	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
ALL OTHER	  				 				 				 				 				 				
Revenues from External Customers	  	$	1,873	  	 	$	7,724	  	 	$	(5,851	) 	 	$	2,895	  	 	$	27,157	  	 	$	(24,262	) 	
Intersegment Revenues	  	 	2,810	  	 	 	1,418	  	 	 	1,392	  	 	 	7,026	  	 	 	1,418	  	 	 	5,608	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Revenues	  	 	4,683	  	 	 	9,142	  	 	 	(4,459	) 	 	 	9,921	  	 	 	28,575	  	 	 	(18,654	) 	

Operating Expenses:	  				 				 				 				 				 				
Purchased Gas	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	48	  	 	 	—  	  	 	 	48	  	
Operation and Maintenance	  	 	944	  	 	 	6,316	  	 	 	(5,372	) 	 	 	3,130	  	 	 	18,413	  	 	 	(15,283	) 	
Property, Franchise and Other Taxes	  	 	90	  	 	 	381	  	 	 	(291	) 	 	 	490	  	 	 	1,211	  	 	 	(721	) 	
Depreciation, Depletion and Amortization	  	 	203	  	 	 	2,250	  	 	 	(2,047	) 	 	 	630	  	 	 	5,872	  	 	 	(5,242	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	1,237	  	 	 	8,947	  	 	 	(7,710	) 	 	 	4,298	  	 	 	25,496	  	 	 	(21,198	) 	

Operating Income (Loss)	  	 	3,446	  	 	 	195	  	 	 	3,251	  	 	 	5,623	  	 	 	3,079	  	 	 	2,544	  	
							
Other Income (Expense):	  				 				 				 				 				 				
Income (Loss) from Unconsolidated Subsidiaries	  	 	(77	) 	 	 	624	  	 	 	(701	) 	 	 	(698	) 	 	 	1,696	  	 	 	(2,394	) 	
Gain on Sale of Unconsolidated Subsidiaries	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	50,879	  	 	 	—  	  	 	 	50,879	  	
Interest Income	  	 	48	  	 	 	39	  	 	 	9	  	 	 	197	  	 	 	95	  	 	 	102	  	
Other Income	  	 	254	  	 	 	(7	) 	 	 	261	  	 	 	289	  	 	 	32	  	 	 	257	  	
Other Interest Expense	  	 	(541	) 	 	 	(541	) 	 	 	—  	  	 	 	(1,637	) 	 	 	(1,610	) 	 	 	(27	) 	

Income from Continuing Operations Before Income Taxes	  	 	3,130	  	 	 	310	  	 	 	2,820	  	 	 	54,653	  	 	 	3,292	  	 	 	51,361	  	
Income Tax Expense	  	 	417	  	 	 	67	  	 	 	350	  	 	 	20,333	  	 	 	1,138	  	 	 	19,195	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from Continuing Operations	  	 	2,713	  	 	 	243	  	 	 	2,470	  	 	 	34,320	  	 	 	2,154	  	 	 	32,166	  	
							
Income (Loss) from Discontinued Operations, Net of Tax	  	 	—  	  	 	 	(57	) 	 	 	57	  	 	 	—  	  	 	 	771	  	 	 	(771	) 	

Net Income	  	$	2,713	  	 	$	186	  	 	$	2,527	  	 	$	34,320	  	 	$	2,925	  	 	$	31,395	  	

Income from Continuing Operations Per Share (Diluted)	  	$	0.03	  	 	$	—  	  	 	$	0.03	  	 	$	0.41	  	 	$	0.03	  	 	$	0.38	  	
Income (Loss) from Discontinued Operations, Net of Tax, Per Share (Diluted)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	0.01	  	 	 	(0.01	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	  	$	0.03	  	 	$	—  	  	 	$	0.03	  	 	$	0.41	  	 	$	0.04	  	 	$	0.37	  	

Page 19

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

 	  	Three Months Ended	 	 	Nine Months Ended	 	
(Thousands of Dollars, except per share amounts)	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
CORPORATE	  				 				 				 				 				 				
Revenues from External Customers	  	$	238	  	 	$	224	  	 	$	14	  	 	$	706	  	 	$	652	  	 	$	54	  	
Intersegment Revenues	  	 	1,028	  	 	 	1,003	  	 	 	25	  	 	 	2,955	  	 	 	2,545	  	 	 	410	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Operating Revenues	  	 	1,266	  	 	 	1,227	  	 	 	39	  	 	 	3,661	  	 	 	3,197	  	 	 	464	  	

Operating Expenses:	  				 				 				 				 				 				
Operation and Maintenance	  	 	3,565	  	 	 	2,970	  	 	 	595	  	 	 	10,574	  	 	 	9,637	  	 	 	937	  	
Property, Franchise and Other Taxes	  	 	1,763	  	 	 	69	  	 	 	1,694	  	 	 	2,842	  	 	 	210	  	 	 	2,632	  	
Depreciation, Depletion and Amortization	  	 	187	  	 	 	178	  	 	 	9	  	 	 	562	  	 	 	527	  	 	 	35	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	5,515	  	 	 	3,217	  	 	 	2,298	  	 	 	13,978	  	 	 	10,374	  	 	 	3,604	  	

Operating Loss	  	 	(4,249	) 	 	 	(1,990	) 	 	 	(2,259	) 	 	 	(10,317	) 	 	 	(7,177	) 	 	 	(3,140	) 	
							
Other Income (Expense):	  				 				 				 				 				 				
Interest Income	  	 	18,897	  	 	 	22,525	  	 	 	(3,628	) 	 	 	58,717	  	 	 	67,587	  	 	 	(8,870	) 	
Other Income	  	 	687	  	 	 	460	  	 	 	227	  	 	 	2,244	  	 	 	1,238	  	 	 	1,006	  	
Interest Expense on Long-Term Debt	  	 	(17,876	) 	 	 	(21,115	) 	 	 	3,239	  	 	 	(55,994	) 	 	 	(65,238	) 	 	 	9,244	  	
Other Interest Expense	  	 	(472	) 	 	 	(985	) 	 	 	513	  	 	 	(1,220	) 	 	 	(1,161	) 	 	 	(59	) 	

Loss Before Income Taxes	  	 	(3,013	) 	 	 	(1,105	) 	 	 	(1,908	) 	 	 	(6,570	) 	 	 	(4,751	) 	 	 	(1,819	) 	
Income Tax Benefit	  	 	(1,685	) 	 	 	(1,007	) 	 	 	(678	) 	 	 	(4,283	) 	 	 	(3,530	) 	 	 	(753	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Loss	  	$	(1,328	) 	 	$	(98	) 	 	$	(1,230	) 	 	$	(2,287	) 	 	$	(1,221	) 	 	$	(1,066	) 	

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

 	  	Three Months Ended
June 30,	 	 	Nine Months Ended
June 30,	 	
 	  	2011	 	 	2010	 	 	Variance	 	 	2011	 	 	2010	 	 	Variance	 	
INTERSEGMENT ELIMINATIONS	  				 				 				 				 				 				
Intersegment Revenues	  	$	(27,793	) 	 	$	(24,540	) 	 	$	(3,253	) 	 	$	(85,655	) 	 	$	(77,567	) 	 	$	(8,088	) 	

Operating Expenses:	  				 				 				 				 				 				
Purchased Gas	  	 	(23,664	) 	 	 	(21,980	) 	 	 	(1,684	) 	 	 	(75,108	) 	 	 	(73,196	) 	 	 	(1,912	) 	
Operation and Maintenance	  	 	(4,129	) 	 	 	(2,560	) 	 	 	(1,569	) 	 	 	(10,547	) 	 	 	(4,371	) 	 	 	(6,176	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	(27,793	) 	 	 	(24,540	) 	 	 	(3,253	) 	 	 	(85,655	) 	 	 	(77,567	) 	 	 	(8,088	) 	

Operating Income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
							
Other Income (Expense):	  				 				 				 				 				 				
Interest Income	  	 	(18,757	) 	 	 	(22,430	) 	 	 	3,673	  	 	 	(58,435	) 	 	 	(67,297	) 	 	 	8,862	  	
Other Interest Expense	  	 	18,757	  	 	 	22,430	  	 	 	(3,673	) 	 	 	58,435	  	 	 	67,297	  	 	 	(8,862	) 	

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

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

Page 20

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)

 	  	Three Months Ended
June 30,
(Unaudited)	 	 	Nine Months Ended
June 30,
(Unaudited)	 	
 	  	2011	 	 	2010	 	 	Increase
(Decrease)	 	 	2011	 	 	2010	 	 	Increase
(Decrease)	 	
							
Capital Expenditures:	  				 				 				 				 				 				
Exploration and Production	  	$	158,321	(1)  	 	$	82,863	(4)  	 	$	75,458	  	 	$	473,515	(1)(2)  	 	$	273,849	(4)(5)  	 	$	199,666	  	
Pipeline and Storage	  	 	35,471	(3)  	 	 	6,765	  	 	 	28,706	  	 	 	74,969	(3)  	 	 	22,243	  	 	 	52,726	  	
Utility	  	 	13,994	  	 	 	13,988	  	 	 	6	  	 	 	39,429	  	 	 	39,513	  	 	 	(84	) 	
Energy Marketing	  	 	68	  	 	 	140	  	 	 	(72	) 	 	 	329	  	 	 	239	  	 	 	90	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Reportable Segments	  	 	207,854	  	 	 	103,756	  	 	 	104,098	  	 	 	588,242	  	 	 	335,844	  	 	 	252,398	  	
All Other	  	 	4,018	  	 	 	2,083	  	 	 	1,935	  	 	 	6,287	  	 	 	5,866	(5)  	 	 	421	  	
Corporate	  	 	193	  	 	 	68	  	 	 	125	  	 	 	208	  	 	 	202	  	 	 	6	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Expenditures from Continuing Operations	  	 	212,065	  	 	 	105,907	  	 	 	106,158	  	 	 	594,737	  	 	 	341,912	  	 	 	252,825	  	
Discontinued Operations	  	 	—  	  	 	 	68	  	 	 	(68	) 	 	 	—  	  	 	 	122	  	 	 	(122	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Capital Expenditures	  	$	212,065	  	 	$	105,975	  	 	$	106,090	  	 	$	594,737	  	 	$	342,034	  	 	$	252,703	  	

(1)  	Amount for the quarter and nine months ended June 30, 2011 includes $60.7 million of accrued capital expenditures, the majority of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at June 30, 2011 since it represents a non-cash investing activity at that date.	
(2)  	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.	
(3)  	Amount for the quarter and nine months ended June 30, 2011 includes $5.9 million of accrued capital expenditures. This amount has been excluded from the Consolidated Statement of Cash Flows at June 30, 2011 since it represents a non-cash investing activity at that date.	
(4)  	Amount for the quarter and nine months ended June 30, 2010 includes $24.3 million of accrued capital expenditures, the majority of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at June 30, 2010 since it represents a non-cash investing activity at that date.	
(5)  	Capital expenditures for the Exploration and Production segment for the nine months ended June 30, 2010 exclude $9.1 million of capital expenditures, the majority of which was in the Appalachian region. Capital expenditures for All Other for the nine months ended June 30, 2010 exclude $0.7 million of capital expenditures related to the construction of the Midstream Covington Gathering System. Both of these amounts were accrued at September 30, 2009 and paid during the nine months ended June 30, 2010. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2009 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, 2010.	
DEGREE DAYS

 	  	 	 	  	 	 	  	 	 	  	Percent Colder
(Warmer) Than:	 	
 	  	Normal	 	  	2011	 	  	2010	 	  	Normal  (1)	 	 	Last Year  (1)	 	
						
Three Months Ended June 30	  				  				  				  				 				
						
Buffalo, NY	  	 	927	  	  	 	848	  	  	 	665	  	  	 	(8.5	) 	 	 	27.5	  	
Erie, PA	  	 	885	  	  	 	812	  	  	 	631	  	  	 	(8.2	) 	 	 	28.7	  	
						
Nine Months Ended June 30	  				  				  				  				 				
						
Buffalo, NY	  	 	6,514	  	  	 	6,674	  	  	 	6,152	  	  	 	2.5	  	 	 	8.5	  	
Erie, PA	  	 	6,108	  	  	 	6,284	  	  	 	5,842	  	  	 	2.9	  	 	 	7.6	  	
 
(1)	Percents compare actual 2011 degree days to normal degree days and actual 2011 degree days to actual 2010 degree days.	
 
Page 21

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	June 30,	 	 	June 30,	 	
 	  	2011	 	 	2010	 	  	Increase
(Decrease)	 	 	2011	 	  	2010	 	  	Increase
(Decrease)	 	
							
Gas Production/Prices:	  				 				  				 				  				  				
Production (MMcf)	  				 				  				 				  				  				
Gulf Coast	  	 	22	  	 	 	2,745	  	  	 	(2,723	) 	 	 	4,092	  	  	 	8,079	  	  	 	(3,987	) 	
West Coast	  	 	826	  	 	 	940	  	  	 	(114	) 	 	 	2,616	  	  	 	2,866	  	  	 	(250	) 	
Appalachia	  	 	12,090	  	 	 	4,741	  	  	 	7,349	  	 	 	31,020	  	  	 	11,084	  	  	 	19,936	  	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total Production	  	 	12,938	  	 	 	8,426	  	  	 	4,512	  	 	 	37,728	  	  	 	22,029	  	  	 	15,699	  	

Average Prices (Per Mcf)	  				 				  				 				  				  				
Gulf Coast	  	 	N/M	  	 	$	4.95	  	  	 	N/M	  	 	$	5.02	  	  	$	5.26	  	  	$	(0.24	) 	
West Coast	  	$	4.87	  	 	 	4.38	  	  	$	0.49	  	 	 	4.40	  	  	 	4.92	  	  	 	(0.52	) 	
Appalachia	  	 	4.55	  	 	 	4.45	  	  	 	0.10	  	 	 	4.36	  	  	 	5.10	  	  	 	(0.74	) 	
Weighted Average	  	 	4.67	  	 	 	4.61	  	  	 	0.06	  	 	 	4.44	  	  	 	5.13	  	  	 	(0.69	) 	
Weighted Average after Hedging	  	 	5.48	  	 	 	5.74	  	  	 	(0.26	) 	 	 	5.36	  	  	 	6.16	  	  	 	(0.80	) 	
							
Oil Production/Prices:	  				 				  				 				  				  				
Production (Thousands of Barrels)	  				 				  				 				  				  				
Gulf Coast	  	 	(9	) (1)  	 	 	135	  	  	 	(144	) 	 	 	187	  	  	 	389	  	  	 	(202	) 	
West Coast	  	 	661	  	 	 	661	  	  	 	—  	  	 	 	1,958	  	  	 	2,007	  	  	 	(49	) 	
Appalachia	  	 	13	  	 	 	13	  	  	 	—  	  	 	 	35	  	  	 	34	  	  	 	1	  	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total Production	  	 	665	  	 	 	809	  	  	 	(144	) 	 	 	2,180	  	  	 	2,430	  	  	 	(250	) 	

Average Prices (Per Barrel)	  				 				  				 				  				  				
Gulf Coast	  	 	N/M	  	 	$	76.42	  	  	 	N/M	  	 	$	88.57	  	  	$	78.64	  	  	$	9.93	  	
West Coast	  	$	108.30	  	 	 	71.92	  	  	$	36.38	  	 	 	94.74	  	  	 	71.79	  	  	 	22.95	  	
Appalachia	  	 	92.89	  	 	 	74.90	  	  	 	17.99	  	 	 	87.36	  	  	 	77.77	  	  	 	9.59	  	
Weighted Average	  	 	107.97	  	 	 	72.72	  	  	 	35.25	  	 	 	94.10	  	  	 	72.97	  	  	 	21.13	  	
Weighted Average after Hedging	  	 	84.37	  	 	 	75.23	  	  	 	9.14	  	 	 	80.78	  	  	 	75.65	  	  	 	5.13	  	
							
Total Production (Mmcfe)	  	 	16,928	  	 	 	13,280	  	  	 	3,648	  	 	 	50,808	  	  	 	36,609	  	  	 	14,199	  	

Selected Operating Performance Statistics:	  				 				  				 				  				  				
General & Administrative Expense per Mcfe (2)	  	$	0.67	  	 	$	0.63	  	  	$	0.04	  	 	$	0.70	  	  	$	0.70	  	  	$	—  	  	
Lease Operating Expense per Mcfe (2)	  	$	1.03	  	 	$	1.20	  	  	$	(0.17	) 	 	$	1.06	  	  	$	1.20	  	  	$	(0.14	) 	
Depreciation, Depletion & Amortization per Mcfe (2)	  	$	2.18	  	 	$	2.18	  	  	$	—  	  	 	$	2.18	  	  	$	2.15	  	  	$	0.03	  	
 
(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 17 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 22

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Three Months of Fiscal 2011

SWAPS	  	Volume	  	Average Hedge Price	 	
Oil	  	0.4 MMBBL	  	$	70.93 / BBL	  	
Gas	  	10.6 BCF	  	$	 5.77/ MCF	  	
Hedging Summary for Fiscal 2012

SWAPS	  	Volume	  	Average Hedge Price	 	
Oil	  	1.6 MMBBL	  	$	77.03 / BBL	  	
Gas	  	35.0 BCF	  	$	5.89 / MCF	  	
Hedging Summary for Fiscal 2013

SWAPS	  	Volume	  	Average Hedge Price	 	
Oil	  	0.9 MMBBL	  	$	86.21 / BBL	  	
Gas	  	23.9 BCF	  	$	5.67 / MCF	  	
Hedging Summary for Fiscal 2014

SWAPS	  	Volume	  	Average Hedge Price	 	
Oil	  	0.2 MMBBL	  	$	94.90 / BBL	  	
Gas	  	4.6 BCF	  	$	5.89 / MCF	  	
Gross Wells in Process of Drilling
Nine Months Ended June 30, 2011

 	  	 	 	  	 	 	  	East	 	  	 	 	
 	  	Gulf	 	  	West	 	  	Marcellus
Shale	 	 	Upper
Devonian	 	  	Total
Company	 	
						
Wells in Process - Beginning Period	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.00	  	  	 	4.00	  	 	 	23.00	  	  	 	27.00	  	
Developmental	  	 	1.00	  	  	 	0.00	  	  	 	58.00	(1)  	 	 	19.00	  	  	 	78.00	  	
Wells Commenced	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	1.00	  	  	 	7.00	  	 	 	0.00	  	  	 	8.00	  	
Developmental	  	 	1.00	  	  	 	43.00	  	  	 	64.00	  	 	 	3.00	  	  	 	111.00	  	
Wells Completed	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	1.00	  	  	 	8.00	  	 	 	3.00	  	  	 	12.00	  	
Developmental	  	 	2.00	  	  	 	41.00	  	  	 	38.00	  	 	 	3.00	  	  	 	84.00	  	
Wells Plugged & Abandoned	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.00	  	  	 	0.00	  	 	 	5.00	  	  	 	5.00	  	
Developmental	  	 	0.00	  	  	 	1.00	  	  	 	0.00	  	 	 	7.00	  	  	 	8.00	  	
Wells in Process - End of Period	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.00	  	  	 	3.00	  	 	 	15.00	  	  	 	18.00	  	
Developmental	  	 	0.00	  	  	 	1.00	  	  	 	84.00	  	 	 	12.00	  	  	 	97.00	  	
 
(1)  	Amount increased by 19 for wells overlooked in the prior year.	
Net Wells in Process of Drilling
Nine Months Ended June 30, 2011

 	  	 	 	  	 	 	  	East	 	  	 	 	
 	  	Gulf	 	  	West	 	  	Marcellus
Shale	 	 	Upper
Devonian	 	  	Total
Company	 	
Wells in Process - Beginning Period	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.00	  	  	 	4.00	  	 	 	22.00	  	  	 	26.00	  	
Developmental	  	 	0.20	  	  	 	0.00	  	  	 	36.50	(2)  	 	 	18.00	  	  	 	54.70	  	
Wells Commenced	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.13	  	  	 	7.00	  	 	 	0.00	  	  	 	7.13	  	
Developmental	  	 	0.20	  	  	 	42.31	  	  	 	49.16	  	 	 	2.60	  	  	 	94.27	  	
Wells Completed	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.13	  	  	 	8.00	  	 	 	3.00	  	  	 	11.13	  	
Developmental	  	 	0.40	  	  	 	40.31	  	  	 	30.16	  	 	 	2.60	  	  	 	73.47	  	
Wells Plugged & Abandoned	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.00	  	  	 	0.00	  	 	 	5.00	  	  	 	5.00	  	
Developmental	  	 	0.00	  	  	 	1.00	  	  	 	0.00	  	 	 	7.00	  	  	 	8.00	  	
Wells in Process - End of Period	  				  				  				 				  				
Exploratory	  	 	0.00	  	  	 	0.00	  	  	 	3.00	  	 	 	14.00	  	  	 	17.00	  	
Developmental	  	 	0.00	  	  	 	1.00	  	  	 	55.50	  	 	 	11.00	  	  	 	67.50	  	
 
(2)  	Marcellus Shale net developmental wells were increased by 1.88 due to the acquisition of a joint venture partner’s working interest in seven wells, which totaled 1.88 net wells. In addition, this amount increased by 12 for wells overlooked in the prior year.	
 
Page 23

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Fiscal 2012 Financial & Operating Guidance

Total Production (Bcfe)	  	 	87 - 101	  	
		
Production by Division (Bcfe)	  				
East	  	 	68 - 80	  	
West	  	 	19 - 21	  	
Guidance Based on Crude Oil Average 2011 NYMEX Price ($/Bbl) (without hedges) of $95.00

Forecast price differentials	  				
West	  	 	-$3.00 to +$3.00	  	
Guidance Based on Natural Gas Average 2011 NYMEX Price ($/MMBtu) (without hedges) of $4.50

Forecast price differentials	  		
East	  	-$0.10 to +$0.10	
West	  	-$0.10 to -$0.30	
		
Cost and Expenses $ per Mcfe	  		
Lease Operating Expenses	  	$0.85 - $1.00	
Depreciation, Depletion and Amortization	  	$2.20 - $2.30	
Other Taxes	  	$0.10 - $0.20	
		
Other Operating Expenses	  	$7MM - $9MM	
General and Administrative	  	$54MM - $58MM	
Capital Investment by Division

 	  	 	  	Number of Gross Wells to be Drilled	
 	  	 	  	Horizontal	  	Vertical	
East	  	$740MM - $820MM	  	115 - 140	  	10 - 20	
West	  	$45MM - $55MM	  		  	55 - 80	
Total	  	$785MM - $875MM	  		  		
Earnings per share sensitivity to changes from prices used in guidance* ^

$1 change per MMBtu gas	  	$5 change per Bbl oil	
Increase	  	Decrease	  	Increase	  	Decrease	
				
+ $0.31	  	- $0.31	  	+ $0.04	  	- $0.04	
 
*	Please refer to forward looking statement footnote beginning at page 8 of this document.	
^	This sensitivity table is current as of August 4, 2011 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 $4.50 per MMBtu for natural gas and $95 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,	 	
 	  	2011	 	  	2010	 	  	Increase
(Decrease)	 	 	2011	 	  	2010	 	  	Increase
(Decrease)	 	
Firm Transportation - Affiliated	  	 	17,538	  	  	 	15,438	  	  	 	2,100	  	 	 	95,884	  	  	 	89,201	  	  	 	6,683	  	
Firm Transportation - Non-Affiliated	  	 	35,788	  	  	 	37,010	  	  	 	(1,222	) 	 	 	170,661	  	  	 	156,032	  	  	 	14,629	  	
Interruptible Transportation	  	 	489	  	  	 	1,016	  	  	 	(527	) 	 	 	1,709	  	  	 	3,575	  	  	 	(1,866	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
	  	 	53,815	  	  	 	53,464	  	  	 	351	  	 	 	268,254	  	  	 	248,808	  	  	 	19,446	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Utility Throughput - (MMcf)

 	  	Three Months Ended
June 30,	 	 	Nine Months Ended
June 30,	 	
 	  	2011	 	  	2010	 	  	Increase
(Decrease)	 	 	2011	 	  	2010	 	  	Increase
(Decrease)	 	
Retail Sales:	  				  				  				 				  				  				
Residential Sales	  	 	8,867	  	  	 	7,055	  	  	 	1,812	  	 	 	54,075	  	  	 	50,292	  	  	 	3,783	  	
Commercial Sales	  	 	1,203	  	  	 	920	  	  	 	283	  	 	 	8,044	  	  	 	7,666	  	  	 	378	  	
Industrial Sales	  	 	79	  	  	 	66	  	  	 	13	  	 	 	618	  	  	 	512	  	  	 	106	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
	  	 	10,149	  	  	 	8,041	  	  	 	2,108	  	 	 	62,737	  	  	 	58,470	  	  	 	4,267	  	
Off-System Sales	  	 	867	  	  	 	1,124	  	  	 	(257	) 	 	 	6,188	  	  	 	4,034	  	  	 	2,154	  	
Transportation	  	 	12,335	  	  	 	10,530	  	  	 	1,805	  	 	 	57,916	  	  	 	51,957	  	  	 	5,959	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
	  	 	23,351	  	  	 	19,695	  	  	 	3,656	  	 	 	126,841	  	  	 	114,461	  	  	 	12,380	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Energy Marketing Volumes

 	  	Three Months Ended
June 30,	 	  	Nine Months Ended
June 30,	 	
 	  	2011	 	  	2010	 	  	Increase
(Decrease)	 	  	2011	 	  	2010	 	  	Increase
(Decrease)	 	
Natural Gas (MMcf)	  	 	13,508	  	  	 	13,047	  	  	 	461	  	  	 	45,863	  	  	 	51,144	  	  	 	(5,281	) 	

Page 25

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

 	  	2011	 	  	2010	 	
Quarter Ended June 30 (unaudited)	  				  				
			
Operating Revenues	  	$	380,979,000	  	  	$	351,992,000	  	

Income from Continuing Operations	  	$	46,891,000	  	  	$	42,642,000	  	
Loss from Discontinued Operations, Net of Tax	  	 	—  	  	  	 	(57,000	) 	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	46,891,000	  	  	$	42,585,000	  	

Earnings Per Common Share:	  				  				
Basic:	  				  				
Income from Continuing Operations	  	$	0.57	  	  	$	0.52	  	
Loss from Discontinued Operations	  	 	—  	  	  	 	—  	  	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	0.57	  	  	$	0.52	  	

Diluted:	  				  				
Income from Continuing Operations	  	$	0.56	  	  	$	0.51	  	
Loss from Discontinued Operations	  	 	—  	  	  	 	—  	  	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	0.56	  	  	$	0.51	  	

Weighted Average Common Shares:	  				  				
Used in Basic Calculation	  	 	82,687,467	  	  	 	81,801,377	  	
	  	 	 	 	  	 	 	 	
Used in Diluted Calculation	  	 	83,782,493	  	  	 	82,970,921	  	

Nine Months Ended June 30 (unaudited)	  				  				
			
Operating Revenues	  	$	1,492,808,000	  	  	$	1,474,107,000	  	

Income from Continuing Operations	  	$	221,045,000	  	  	$	186,741,000	  	
Income from Discontinued Operations, Net of Tax	  	 	—  	  	  	 	771,000	  	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	221,045,000	  	  	$	187,512,000	  	

Earnings Per Common Share:	  				  				
Basic:	  				  				
Income from Continuing Operations	  	$	2.68	  	  	$	2.30	  	
Income from Discontinued Operations	  	 	—  	  	  	 	0.01	  	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	2.68	  	  	$	2.31	  	

Diluted:	  				  				
Income from Continuing Operations	  	$	2.64	  	  	$	2.26	  	
Income from Discontinued Operations	  	 	—  	  	  	 	0.01	  	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	2.64	  	  	$	2.27	  	

Weighted Average Common Shares:	  				  				
Used in Basic Calculation	  	 	82,436,603	  	  	 	81,178,000	  	
	  	 	 	 	  	 	 	 	
Used in Diluted Calculation	  	 	83,649,498	  	  	 	82,556,730	  	

Twelve Months Ended June 30 (unaudited)	  				  				
			
Operating Revenues	  	$	1,779,205,000	  	  	$	1,750,902,000	  	

Income from Continuing Operations	  	$	253,438,000	  	  	$	216,684,000	  	
Income (Loss) from Discontinued Operations, Net of Tax	  	 	6,009,000	  	  	 	(2,174,000	) 	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	 	259,447,000	  	  	$	214,510,000	  	

Earnings Per Common Share:	  				  				
Basic:	  				  				
Income from Continuing Operations	  	$	3.08	  	  	$	2.68	  	
Income (Loss) from Discontinued Operations	  	 	0.07	  	  	 	(0.03	) 	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	3.15	  	  	$	2.65	  	

Diluted:	  				  				
Income from Continuing Operations	  	$	3.04	  	  	$	2.63	  	
Income (Loss) from Discontinued Operations	  	 	0.07	  	  	 	(0.02	) 	
	  	 	 	 	  	 	 	 	
Net Income Available for Common Stock	  	$	3.11	  	  	$	2.61	  	

Weighted Average Common Shares:	  				  				
Used in Basic Calculation	  	 	82,321,791	  	  	 	80,941,793	  	
	  	 	 	 	  	 	 	 	
Used in Diluted Calculation	  	 	83,508,416	  	  	 	82,335,561	  	

Page 26