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 2, 2007
NATIONAL FUEL GAS COMPANY
(Exact name of registrant as specified in its charter)
 	 	 	 	 	
New Jersey
(State or other jurisdiction
of incorporation)	 	1-3880
(Commission File Number)	 	13-1086010
(IRS Employer
Identification No.)	
 	 	 	
6363 Main Street, Williamsville, New York
(Address of principal executive offices)	 	14221
(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):
      o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
      o 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 2, 2007, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter ended June 30, 2007. A copy of the press release is hereby incorporated by reference into this Item 2.02 and 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 incorporated by reference from the press release, including statements regarding earnings projections, statements designated with an asterisk (“*”) and statements identified by the use of the words “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There is 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 in the forward-looking statement. 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: changes in laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations; changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents; changes in demographic patterns and weather conditions, including the occurrence of severe weather such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment or valuation of derivative financial instruments or the Company’s natural gas and oil reserves; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing

 

ones; significant changes in competitive factors affecting the Company; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; occurrences affecting the Company’s ability to obtain funds from operations or from issuances of short-term notes or debt or equity securities to finance needed capital expenditures and other investments, including any downgrades in the Company’s credit ratings; uncertainty of oil and gas reserve estimates; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves; significant changes from expectations in the Company’s actual production levels for natural gas or oil; regarding foreign operations, changes in trade and monetary policies, inflation and exchange rates, taxes, operating conditions, laws and regulations related to foreign operations, and political and governmental changes; 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; changes in actuarial assumptions and the return on assets with respect to the Company’s retirement plan and post-retirement benefit plans; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide 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 hereof.
Item 9.01 Financial Statements and Exhibits
     (c) Exhibits

Exhibit 99	 	Press Release issued August 2, 2007 regarding earnings for the quarter ended June 30, 2007	

 
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 3, 2007

 
EXHIBIT INDEX
 	 	 	
Exhibit Number	 	Description	
 	 	 	
99	 	Press Release issued August 2, 2007 regarding earnings for the quarter ended June 30, 2007	

 

 	 	 	
 National Fuel Gas Company	 	Financial
News	
 	 	 	
 	 	6363 Main Street/Williamsville, NY 14221	
 	 	 	
 	 	James C. Welch	
 	 	Investor Relations	
 	 	716-857-6987	
Release Date: Immediate August 2, 2007	 	 	
 	 	Ronald J. Tanski	
 	 	Treasurer	
 	 	716-857-6981	
NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS
Williamsville, New York: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the quarter ended June 30, 2007.
HIGHLIGHTS

•	 	Reported GAAP earnings for the third quarter were $46.8 million or $0.55 per share. This is an increase of $46.7 million or $0.55 per share from the prior year’s quarter. With the exception of the Timber segment, earnings for the quarter increased in all segments compared to the prior year.	

•	 	Quarterly operating results before items impacting comparability were $42.0 million or $0.49 per share, an increase of $8.5 million or $0.10 per share from the prior year’s third quarter.	

•	 	The Company is increasing and narrowing its GAAP guidance range for fiscal 2007 earnings to a range of $2.38 to $2.46 per share.* This guidance excludes any effects from a sale by the Company’s Exploration and Production segment of its Canadian operations. The Company’s preliminary GAAP guidance for fiscal 2008 is in the range of $2.45 to $2.65 per share.* This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 billion cubic feet equivalent (“Bcfe”) but excludes any Canadian production.*	

•	 	A conference call is scheduled for Friday, August 3, 2007 at 11:00 am Eastern Time.	
MANAGEMENT COMMENTS
     Philip C. Ackerman, Chairman and Chief Executive Officer of National Fuel Gas Company stated: “This was another solid quarter and a record third quarter for the Company. Our GAAP earnings increased in all segments, with the exception of the Timber segment. Both our GAAP earnings of $0.55 per share and operating results of $0.49 per share exceed market estimates, and are the highest achieved in the third quarter in our history. Our business model of participating in all areas of the natural gas industry, coupled with our employees’ continued dedication to operating our assets in an efficient and safe manner, made these results attainable.”
     “We are also pleased to announce significant milestones toward achieving an in-service date of November 2008 for the Empire Connector pipeline.* At this time, all major regulatory approvals have been received, a service agreement has been signed with KeySpan Gas East
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Corporation, our anchor shipper, and we have finalized the contracts for two crucial components of the project; at present the pipe and compression equipment is being manufactured. In an effort to accelerate our construction schedule, we will begin contacting landowners next week to coordinate construction activities for at least 20 miles of the pipeline by calendar-year end.* This project demonstrates our strong commitment to the Pipeline and Storage segment, and our pursuit of projects that add critical infrastructure to serve the growing markets in the New England and the Mid-Atlantic regions.”*
SUMMARY OF RESULTS
     National Fuel had consolidated earnings for the quarter ended June 30, 2007, of $46.8 million, an increase of $46.7 million, or $0.55 per share, from the prior year’s third quarter of $0.1 million or less than $0.01 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 earnings and operating results discussions are after tax unless otherwise noted).
     Consolidated earnings for the nine months ended June 30, 2007, of $179.8 million, or $2.11 per share, increased $43.6 million, or $0.53 per share, from the same period in the prior year, where earnings were $136.1 million, or $1.58 per share.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months	 	 	Nine Months	 	
 	 	Ended June 30,	 	 	Ended June 30,	 	
(in thousands except per share amounts)	 	2007	 	 	2006	 	 	2007	 	 	2006	 	
Reported GAAP earnings	 	$	46,798	 	 	$	111	 	 	$	179,765	 	 	$	136,123	 	
Items impacting comparability 1 :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reversal of reserve for preliminary project costs	 	 	(4,787	)	 	 	 	 	 	 	(4,787	)	 	 	 	 	
Resolution of purchased gas contingency	 	 	 	 	 	 	 	 	 	 	(2,344	)	 	 	 	 	
Discontinuation of hedge accounting	 	 	 	 	 	 	 	 	 	 	(1,888	)	 	 	 	 	
Impairment of Canadian oil and gas producing properties	 	 	 	 	 	 	39,502	 	 	 	 	 	 	 	39,502	 	
Income tax adjustments	 	 	 	 	 	 	(6,122	)	 	 	 	 	 	 	(11,202	)	
Out-of-period symmetrical sharing adjustment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(2,551	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating results	 	$	42,011	 	 	$	33,491	 	 	$	170,746	 	 	$	161,872	 	

Reported GAAP earnings per share	 	$	0.55	 	 	$	0.00	 	 	$	2.11	 	 	$	1.58	 	
Items impacting comparability 1 :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reversal of reserve for preliminary project costs	 	 	(0.06	)	 	 	 	 	 	 	(0.06	)	 	 	 	 	
Resolution of purchased gas contingency	 	 	 	 	 	 	 	 	 	 	(0.03	)	 	 	 	 	
Discontinuation of hedge accounting	 	 	 	 	 	 	 	 	 	 	(0.02	)	 	 	 	 	
Impairment of Canadian oil and gas producing properties	 	 	 	 	 	 	0.46	 	 	 	 	 	 	 	0.46	 	
Income tax adjustments	 	 	 	 	 	 	(0.07	)	 	 	 	 	 	 	(0.13	)	
Out-of-period symmetrical sharing adjustment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.03	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings excluding these items	 	$	0.49	 	 	$	0.39	 	 	$	2.00	 	 	$	1.88	 	

			
1	 	See discussion of these individual items below.	
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     As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s operating results when comparing the third quarter and nine months ended June 30, 2007 to the comparable periods in fiscal 2006. Excluding these items, operating results for the current third quarter of $42.0 million or $0.49 per share increased $8.5 million or $0.10 per share. Excluding these items, operating results for the nine months ended June 30, 2007 of $170.7 million or $2.00 per share increased $8.9 million or $0.12 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 9 through 12 of this report. It may be helpful to refer to those tables while reviewing this discussion.)
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 approximately $3.7 million, or $0.04 per share for the quarter ended June 30, 2007, increased $2.9 million, or $0.03 per share, compared to the prior year’s third quarter. In the New York Division, earnings increased $0.9 million mainly due to higher customer usage per account, partially offset by higher operating expenses, a higher effective tax rate and higher interest expense. In the Pennsylvania division, earnings increased $1.9 million compared to the prior year’s third quarter, mainly due to the impact of an increase in base rates. On January 1, 2007, Distribution implemented the Settlement Agreement approved by the Pennsylvania Public Utility Commission, which, among other things, provided for a $14.3 million (before tax) annual base rate increase. Colder weather in April and higher customer usage per account also contributed to the increase. The increase was partially offset by slightly higher operating expenses and interest expense.
     The Utility segment’s earnings of $54.3 million, or $0.64 per share, for the nine months ended June 30, 2007, increased $3.1 million, or $0.05 per share, compared to the nine months ended June 30, 2006. Earnings in Distribution’s New York Division for the nine months ended June 30, 2007, of $36.0 million decreased $4.7 million compared to the prior year. The comparability of the nine month results is impacted by a $2.6 million out-of-period adjustment recorded in the first quarter of fiscal 2006 to correct Distribution’s calculation of the symmetrical sharing component of the New York Division’s gas adjustment rate. Excluding this item, operating results in the New York Division decreased $2.1 million, or $0.03 per share. This decrease is mainly due to higher bad debt and other operating expenses and higher property taxes. Increased customer usage per account partially offset the decrease.
     For the nine months ended June 30, 2007, earnings in Distribution’s Pennsylvania Division of $18.3 million, or $0.22 per share, increased $7.8 million, or $0.09 per share, compared to the prior year. Earnings increased primarily due to the impact of weather that was 6.6 percent colder than the prior year and the annual $14.3 million (before tax) increase in base rates described above. A lower effective tax rate also contributed to the increase. Partially offsetting the increase was higher interest expense.
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Pipeline and Storage Segment
     The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire State Pipeline (“Empire”). These companies provide 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 $15.5 million, or $0.18 per share, for the quarter ended June 30, 2007, increased $2.8 million, or $0.03 per share, when compared with the same period in the prior fiscal year. The comparability of the quarterly results is impacted by the reversal of a $4.8 million reserve for preliminary project costs on the Empire Connector project. Empire recorded a reserve against any project development costs until such time that it was probable that the project was likely to be built and placed in service. In June 2007, Empire and KeySpan Gas East Corporation signed a firm transportation service agreement that obligates Empire to perform transportation services, requiring Empire to construct and operate the Empire Connector. Excluding this item, operating results for the Pipeline and Storage segment decreased $2.0 million. The decrease is primarily due to lower efficiency gas revenue resulting from lower retained volumes compared to the prior year’s third quarter. The lower volumes of efficiency gas result from a FERC-approved settlement of a complaint filed by various parties against Supply Corporation under Sections 5(a) and 13 of the Natural Gas Act (the “FERC settlement”) that was generally effective as of December 1, 2006. The FERC settlement also increased Supply Corporation’s expense for post-retirement benefits, which resulted in higher operating expenses for the quarter. Partially offsetting these items, the FERC settlement lowered Supply Corporation’s depreciation rates, which resulted in lower depreciation expense for the quarter. Higher interest expense and a higher effective tax rate in the quarter also contributed to the decrease in operating results for the quarter.
     Earnings of $43.1 million, or $0.51 per share, for the nine months ended June 30, 2007, decreased $2.3 million, or $0.02 per share, when compared with the nine months ended June 30, 2006. The comparability of the results for the nine months ended June 30, 2007, is impacted by the $4.8 million reversal of the reserve for preliminary project costs on the Empire Connector project described above, and a $1.9 million gain associated with the prepayment in the first quarter of 2007 of the project financing debt for the Empire State Pipeline. Upon the payment of that debt, the corresponding interest rate collar no longer qualified for hedge accounting, and gains and losses could no longer be deferred. Excluding these items, operating results decreased $9.0 million, or $0.10 per share, for the nine months ended June 30, 2007, mainly due to lower efficiency gas revenue resulting from lower natural gas prices and lower retained volumes due to the FERC settlement discussed above, as well as a gain on sales of efficiency gas that was recorded in the nine months ended June 30, 2006, that did not recur in the nine months ended June 30, 2007. An increase in post-retirement benefits expense, also due to the FERC settlement, and higher interest expense, contributed to the decline in operating results. The decrease was partially offset by lower depreciation expense, resulting from the FERC settlement.
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Exploration and Production Segment
     The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and purchases natural gas and oil reserves in California, the Appalachian region, and in the Gulf Coast regions of Texas, Louisiana and Alabama. Seneca is currently negotiating the sale of its assets in the western provinces of Canada and expects that it may complete a sale by September 30, 2007.*
     The Exploration and Production segment’s earnings in the third quarter of fiscal 2007 of $24.4 million or $0.29 per share increased $39.6 million or $0.47 per share when compared with the prior year’s third quarter. The comparability of the quarterly results is impacted by a non-cash charge of $39.5 million recorded in the third quarter of fiscal 2006 to write down the value of Seneca’s Canadian oil and natural gas producing properties that did not recur this year. Seneca uses the full cost method of accounting for determining the book value of its oil and natural gas properties. This method requires that Seneca perform a quarterly “ceiling test” to compare, on a country-by-country basis, the present value of future revenues from its oil and natural gas reserves based on current market prices (“the ceiling”) with the book value of those reserves at the balance sheet date. If the book value of the reserves in any country exceeds the ceiling, a non-cash charge must be recorded to reduce the book value of the reserves to the calculated ceiling. In addition, in the third quarter of fiscal 2006, Seneca recognized a $6.1 million benefit to earnings related to income taxes. The Company reversed a valuation allowance associated with the capital loss carryforward that resulted from the 2003 sale of certain Seneca oil properties and also recognized a tax benefit related to the favorable resolution of certain open tax issues.
     Excluding these items, operating results in the Exploration and Production segment increased $6.2 million, or $0.08 per share, for the third quarter of fiscal 2007. The increase was mainly due to higher crude oil and natural gas prices realized after hedging. For the quarter ended June 30, 2007, the weighted average oil price received by Seneca (after hedging) was $53.40 per barrel (“Bbl”), an increase of $8.27 per Bbl, or 18.3 percent from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended June 30, 2007, was $7.33 per thousand cubic feet (“Mcf”), an increase of $0.76 per Mcf, or 11.6 percent from the prior year’s quarter. The increase in commodity prices more than offset a 0.6 Bcfe decrease in production. Operating expenses for the quarter, were up slightly compared to the prior year quarter. Lower depletion expense, which on a per unit basis, decreased $0.25 per thousand cubic feet equivalent (“Mcfe”) to $1.92 per Mcfe was offset by higher lease operating expenses (“LOE”). The decrease in depletion expense is mainly due to the lower book value of the Canadian oil and gas properties as a result of the write down described above. The increase in LOE is due primarily to escalating service costs. A lower effective tax rate also contributed to the increase in operating results.
     The Exploration and Productions segment’s earnings of $65.0 million, or $0.76 per share, for the nine months ended June 30, 2007, increased $36.8 million, or $0.43 per share, when compared with the nine months ended June 30, 2006. The comparability of the nine-month results is impacted by the charge to write down the value of Seneca’s Canadian oil and natural gas producing properties and the tax adjustment described above. Also impacting comparability is an adjustment to the deferred income tax balance recorded in the second quarter of fiscal 2006.
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     Excluding these items, operating results for the nine months ended June 30, 2007, in the Exploration and Production segment increased $8.5 million, or $0.10 per share, from the prior year. This increase is mainly due to higher crude oil prices realized after hedging, combined with a 0.3 Bcfe increase in production. A decrease in oil production was offset by an increase in gas production, while a drop in gas prices realized after hedging was more than offset by an increase in oil prices realized after hedging. For the nine months ended June 30, 2007, the weighted average oil price received by Seneca (after hedging) was $48.37 per Bbl, an increase of $8.81 per Bbl, or 22.3 percent, from the prior year. The weighted average natural gas price received by Seneca (after hedging) was $7.04 per Mcf, a decrease of $0.39 per Mcf, or 5.2 percent, from the prior year. Operating expenses for the nine months ended June 30, 2007 were slightly higher than the prior year. Lower depletion expense was more than offset by the increase in LOE. The increase in LOE was mostly in the Gulf of Mexico due to the hurricane related shut-ins experienced in fiscal year 2006 and new producing fields coming on line in fiscal 2007. Operating results were also impacted by a higher effective tax rate.
Energy Marketing
     National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy Marketing segment. NFR markets natural gas to industrial, commercial, public authority and residential customers in western and central New York and northwestern Pennsylvania, offering competitively priced energy and energy management services to its customers.
     The Energy Marketing segment’s net income for the third quarter of fiscal 2007 of $1.2 million or $0.01 per share, increased $0.2 million compared to the third quarter last year. Earnings for the nine months ended June 30, 2007, of $8.4 million, or $0.10 per share, increased $2.5 million, or $0.03 per share, compared to the nine months ended June 30, 2006. The comparability of the nine month results is impacted by a $2.3 million reversal of an accrual for purchased gas expense for which a contingency was resolved during the second quarter. Excluding this item, operating results for the Energy Marketing segment for the nine month ended June 30, 2007 were flat compared to the nine months ended June 30, 2006.
Timber Segment
     The Timber segment operations are carried out by Highland Forest Resources, Inc. (“Highland”) and Seneca’s Northeast Division. This segment markets high quality hardwoods from its New York and Pennsylvania land holdings, and owns two sawmill/dry kiln operations in northwestern Pennsylvania.
     The Timber segment’s net loss for the quarter ended June 30, 2007, of $0.4 million or less than $0.01 per share, is a decrease of $1.9 million from earnings of $1.5 million in the prior year’s third quarter. The decrease is due to lower margins primarily on logs, green lumber and kiln-dried lumber. The decreased margins are due to a combination of lower sales volumes and prices received mainly for kiln-dried cherry lumber and soft and hard maple green lumber.
     Earnings for the nine months ended June 30, 2007, of $3.1 million decreased $2.2 million from the prior year’s earnings. The decrease is due to lower margins on logs, green lumber and kiln-dried lumber. The decreased margins are due to a combination of lower sales volumes and prices. The wet weather early in the year resulted in lower harvest volumes. This, combined
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Page 7.
with lower unit prices, resulted in lower revenues for kiln-dried cherry lumber and soft and hard maple green lumber. The mix of lumber grades also contributed to the decrease.
Corporate and All Other
     Other direct, wholly-owned subsidiaries of the Company include: Horizon Energy Development, Inc., a corporation formerly engaged in the development of international power projects; Horizon LFG, Inc., a corporation engaged through subsidiaries in the purchase, processing, transportation and sale of landfill gas; and Horizon Power, Inc., a corporation that develops and owns independent electric generation facilities which are fueled with natural gas or landfill gas.
     Earnings in the Corporate and All Other category for the quarter ended June 30, 2007, were $2.3 million, an increase of $3.1 million when compared to the prior year’s third quarter loss of $0.8 million. The increase is due to higher margins in Horizon LFG, Inc., higher income from unconsolidated subsidiaries in Horizon Power Inc., higher intercompany interest income, lower operating costs and a lower effective tax rate.
     Earnings in the Corporate and All Other category for the nine months ended June 30, 2007, were $5.9 million, an increase of $5.7 million when compared to the prior year’s earnings. The increase is mainly due to higher margins in Horizon LFG, Inc., higher income from unconsolidated subsidiaries in Horizon Power, Inc., higher intercompany interest income and a lower effective tax rate.
EARNINGS GUIDANCE
     The Company is increasing and narrowing its GAAP guidance range for fiscal 2007 earnings to a range of $2.38 to $2.46 per share.* This guidance excludes any effects from a sale by Seneca of its Canadian operations. The Company’s preliminary GAAP guidance for fiscal 2008 is in the range of $2.45 to $2.65 per share.* This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 Bcfe.* The Company is not including any forecast with respect to production volumes in Canada. Further details regarding the production guidance are included on page 23 of this document.
EARNINGS TELECONFERENCE
     The Company will host a conference call on Friday, August 3, 2007 at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit National Fuel’s Web site at nationalfuelgas.com and click on the “For Investors” link at the top of the homepage. For those without Internet access, access is also provided by dialing (toll-free) 1-800-237-9752, and using the passcode “86158770.” For those unable to listen to the live conference call, a replay will be available approximately one hour after the conclusion of the call at the same Web site link and by phone at (toll free) 888-286-8010 using passcode “27159393.” Both the webcast and telephonic replay will be available until the close of business on Friday, August 10, 2007.
     National Fuel is an integrated energy company with $3.8 billion in assets comprised of the following five operating segments: Utility, Pipeline and Storage, Exploration and Production,
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Energy Marketing, and Timber. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.
 	 	 	 	 	
Analyst Contact:	 	James C. Welch	 	(716) 857-6987	
Media Contact:	 	Julie Coppola Cox	 	(716) 857-7079	

*	 	Certain statements contained herein, including those which are designated with an asterisk (“*”) and those which use words such as “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” 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: changes in laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations; changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents; changes in demographic patterns and weather conditions, including the occurrence of severe weather, such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment or valuation of derivative financial instruments or the Company’s natural gas and oil reserves; impairments under the Securities and Exchange Commission’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans, including changes in the plans of the sponsors of the proposed Millennium Pipeline with respect to that project; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; occurrences affecting the Company’s ability to obtain funds from operations or from issuances of short-term notes or debt or equity securities to finance needed capital expenditures and other investments, including any downgrades in the Company’s credit ratings; uncertainty of oil and gas reserve estimates; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves; significant changes from expectations in the Company’s actual production levels for natural gas or oil; regarding foreign operations, changes in trade and monetary policies, inflation and exchange rates, taxes, operating conditions, laws and regulations related to foreign operations, and political and governmental changes; 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; changes in actuarial assumptions and the return on assets with respect to the Company’s retirement plan and post-retirement benefit plans; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide 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 hereof or to reflect the occurrence of unanticipated events.	
-more-

 

Page 9
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Pipeline &	 	Exploration &	 	Energy	 	 	 	 	 	Corporate /	 	 	
(Thousands of Dollars)	 	Utility	 	Storage	 	Production	 	Marketing	 	Timber	 	All Other	 	Consolidated	
 	 	 	
Third quarter 2006 GAAP earnings	 	$	827	 	 	$	12,642	 	 	$	(15,127	)	 	$	1,045	 	 	$	1,529	 	 	$	(805	)	 	$	111	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax adjustments	 	 	 	 	 	 	 	 	 	 	(6,122	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(6,122	)	
Impairment of oil and gas properties	 	 	 	 	 	 	 	 	 	 	39,502	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	39,502	 	
 	 	 	
Third quarter 2006 operating results	 	 	827	 	 	 	12,642	 	 	 	18,253	 	 	 	1,045	 	 	 	1,529	 	 	 	(805	)	 	 	33,491	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Base rate increase in Pennsylvania	 	 	1,826	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,826	 	
Usage	 	 	2,855	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,855	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower efficiency gas revenues	 	 	 	 	 	 	(1,175	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,175	)	
Lower (higher) operating costs	 	 	(674	)	 	 	(794	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	326	 	 	 	(1,142	)	
Lower depreciation / depletion	 	 	 	 	 	 	844	 	 	 	2,707	 	 	 	 	 	 	 	281	 	 	 	 	 	 	 	3,832	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher crude oil prices	 	 	 	 	 	 	 	 	 	 	4,588	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,588	 	
Higher natural gas prices	 	 	 	 	 	 	 	 	 	 	3,110	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,110	 	
Lower natural gas production	 	 	 	 	 	 	 	 	 	 	(1,177	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,177	)	
Lower crude oil production	 	 	 	 	 	 	 	 	 	 	(1,792	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,792	)	
Higher lease operating expenses	 	 	 	 	 	 	 	 	 	 	(2,598	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(2,598	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) effective tax rate	 	 	(556	)	 	 	(486	)	 	 	1,575	 	 	 	 	 	 	 	 	 	 	 	620	 	 	 	1,153	 	
Income from unconsolidated subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	462	 	 	 	462	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) margins	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(2,047	)	 	 	209	 	 	 	(1,838	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher interest income (expense)	 	 	(590	)	 	 	(1,007	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,351	 	 	 	(246	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	 	 	17	 	 	 	640	 	 	 	(231	)	 	 	188	 	 	 	(127	)	 	 	175	 	 	 	662	 	

Third quarter 2007 operating results	 	 	3,705	 	 	 	10,664	 	 	 	24,435	 	 	 	1,233	 	 	 	(364	)	 	 	2,338	 	 	 	42,011	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reversal of reserve for preliminary project costs	 	 	 	 	 	 	4,787	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,787	 	
 	 	 	
Third quarter 2007 GAAP earnings	 	$	3,705	 	 	$	15,451	 	 	$	24,435	 	 	$	1,233	 	 	$	(364	)	 	$	2,338	 	 	$	46,798	 	

 

Page 10
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Pipeline &	 	Exploration &	 	Energy	 	 	 	 	 	Corporate /	 	 	
 	 	Utility	 	Storage	 	Production	 	Marketing	 	Timber	 	All Other	 	Consolidated	
 	 	 	
Third quarter 2006 GAAP earnings	 	$	0.01	 	 	$	0.15	 	 	$	(0.18	)	 	$	0.01	 	 	$	0.02	 	 	$	(0.01	)	 	$	—	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax adjustment	 	 	 	 	 	 	 	 	 	 	(0.07	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.07	)	
Impairment of oil and gas properties	 	 	 	 	 	 	 	 	 	 	0.46	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.46	 	
 	 	 	
Third quarter 2006 operating results	 	 	0.01	 	 	 	0.15	 	 	 	0.21	 	 	 	0.01	 	 	 	0.02	 	 	 	(0.01	)	 	 	0.39	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Base rate increase in Pennsylvania	 	 	0.02	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.02	 	
Usage	 	 	0.03	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower efficiency gas revenues	 	 	 	 	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	
Lower (higher) operating costs	 	 	(0.01	)	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(0.02	)	
Lower depreciation / depletion	 	 	 	 	 	 	0.01	 	 	 	0.03	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	0.04	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher crude oil prices	 	 	 	 	 	 	 	 	 	 	0.05	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.05	 	
Higher natural gas prices	 	 	 	 	 	 	 	 	 	 	0.04	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.04	 	
Lower natural gas production	 	 	 	 	 	 	 	 	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	
Lower crude oil production	 	 	 	 	 	 	 	 	 	 	(0.02	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.02	)	
Higher lease operating expenses	 	 	 	 	 	 	 	 	 	 	(0.03	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.03	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) effective tax rate	 	 	(0.01	)	 	 	(0.01	)	 	 	0.02	 	 	 	 	 	 	 	 	 	 	 	0.01	 	 	 	0.01	 	
Income from unconsolidated subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.01	 	 	 	0.01	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) margins	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher interest income (expense)	 	 	(0.01	)	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.02	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	 	 	0.01	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.01	 	

Third quarter 2007 operating results	 	 	0.04	 	 	 	0.12	 	 	 	0.29	 	 	 	0.01	 	 	 	—	 	 	 	0.03	 	 	 	0.49	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reversal of reserve for preliminary project costs	 	 	 	 	 	 	0.06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.06	 	
 	 	 	
Third quarter 2007 GAAP earnings	 	$	0.04	 	 	$	0.18	 	 	$	0.29	 	 	$	0.01	 	 	$	—	 	 	$	0.03	 	 	$	0.55	 	

 

Page 11
NATIONAL FUEL GAS COMPANY
RECON CILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Pipeline &	 	Exploration &	 	Energy	 	 	 	 	 	Corporate /	 	 	
(Thousands of Dollars)	 	Utility	 	Storage	 	Production	 	Marketing	 	Timber	 	All Other	 	Consolidated	
 	 	 	
Nine months ended June 30, 2006 GAAP earnings	 	$	51,234	 	 	$	45,384	 	 	$	28,152	 	 	$	5,909	 	 	$	5,235	 	 	$	209	 	 	$	136,123	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Out-of-period adjustment to symmetrical sharing	 	 	(2,551	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(2,551	)	
Income tax adjustments	 	 	 	 	 	 	 	 	 	 	(11,202	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(11,202	)	
Impairment of oil and gas properties	 	 	 	 	 	 	 	 	 	 	39,502	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	39,502	 	
 	 	 	
Nine months ended June 30, 2006 operating results	 	 	48,683	 	 	 	45,384	 	 	 	56,452	 	 	 	5,909	 	 	 	5,235	 	 	 	209	 	 	 	161,872	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Colder weather in Pennsylvania	 	 	2,272	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,272	 	
Base rate increase in Pennsylvania	 	 	4,859	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,859	 	
Lower (higher) operating costs	 	 	(3,073	)	 	 	(1,041	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(260	)	 	 	(4,374	)	
Higher property taxes	 	 	(863	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(863	)	
Usage	 	 	2,575	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,575	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower efficiency gas revenues	 	 	 	 	 	 	(6,998	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(6,998	)	
Lower depreciation / depletion	 	 	 	 	 	 	1,830	 	 	 	2,536	 	 	 	 	 	 	 	1,183	 	 	 	 	 	 	 	5,549	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher crude oil prices	 	 	 	 	 	 	 	 	 	 	14,866	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	14,866	 	
Lower natural gas prices	 	 	 	 	 	 	 	 	 	 	(5,108	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(5,108	)	
Higher natural gas production	 	 	 	 	 	 	 	 	 	 	4,699	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,699	 	
Lower crude oil production	 	 	 	 	 	 	 	 	 	 	(2,796	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(2,796	)	
Higher lease operating expenses	 	 	 	 	 	 	 	 	 	 	(3,483	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(3,483	)	
Lower (higher) effective tax rate	 	 	1,342	 	 	 	 	 	 	 	(2,527	)	 	 	 	 	 	 	 	 	 	 	1,282	 	 	 	97	 	
Income from unconsolidated subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	585	 	 	 	585	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) margins	 	 	 	 	 	 	 	 	 	 	 	 	 	 	264	 	 	 	(3,080	)	 	 	936	 	 	 	(1,880	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher interest income (expense)	 	 	(1,268	)	 	 	(2,376	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,369	 	 	 	(275	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	 	 	(205	)	 	 	(399	)	 	 	319	 	 	 	(86	) 	 	 	(285	)	 	 	(195	)	 	 	(851	)	

Nine months ended June 30, 2007 operating results	 	 	54,322	 	 	 	36,400	 	 	 	64,958	 	 	 	6,087	 	 	 	3,053	 	 	 	5,926	 	 	 	170,746	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reversal of reserve for preliminary project costs	 	 	 	 	 	 	4,787	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,787	 	
Resolution of a purchased gas contingency	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,344	 	 	 	 	 	 	 	 	 	 	 	2,344	 	
Discontinuance of hedge accounting	 	 	 	 	 	 	1,888	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,888	 	
 	 	   	
Nine months ended June 30, 2007 GAAP earnings	 	$	54,322	 	 	$	43,075	 	 	$	64,958	 	 	$	8,431	 	 	$	3,053	 	 	$	5,926	 	 	$	179,765	 	

 

Page 12
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Pipeline &	 	Exploration &	 	Energy	 	 	 	 	 	Corporate /	 	 	
 	 	Utility	 	Storage	 	Production	 	Marketing	 	Timber	 	All Other	 	Consolidated	
 	 	 	
Nine months ended June 30, 2006 GAAP earnings	 	$	0.59	 	 	$	0.53	 	 	$	0.33	 	 	$	0.07	 	 	$	0.06	 	 	$	—	 	 	$	1.58	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Out-of-period adjustment to symmetrical sharing	 	 	(0.03	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.03	)	
Income tax adjustments	 	 	 	 	 	 	 	 	 	 	(0.13	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.13	)	
Impairment of oil and gas properties	 	 	 	 	 	 	 	 	 	 	0.46	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.46	 	
 	 	 	
Nine months ended June 30, 2006 operating results	 	 	0.56	 	 	 	0.53	 	 	 	0.66	 	 	 	0.07	 	 	 	0.06	 	 	 	—	 	 	 	1.88	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Colder weather in Pennsylvania	 	 	0.03	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.03	 	
Base rate increase in Pennsylvania	 	 	0.06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.06	 	
Lower (higher) operating costs	 	 	(0.04	)	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(0.05	)	
Higher property taxes	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	
Usage	 	 	0.03	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower efficiency gas revenues	 	 	 	 	 	 	(0.08	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.08	)	
Lower depreciation / depletion	 	 	 	 	 	 	0.02	 	 	 	0.03	 	 	 	 	 	 	 	0.01	 	 	 	 	 	 	 	0.06	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher crude oil prices	 	 	 	 	 	 	 	 	 	 	0.17	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.17	 	
Lower natural gas prices	 	 	 	 	 	 	 	 	 	 	(0.06	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.06	)	
Higher natural gas production	 	 	 	 	 	 	 	 	 	 	0.06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.06	 	
Lower crude oil production	 	 	 	 	 	 	 	 	 	 	(0.03	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.03	)	
Higher lease operating expenses	 	 	 	 	 	 	 	 	 	 	(0.04	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.04	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) effective tax rate	 	 	0.02	 	 	 	 	 	 	 	(0.03	)	 	 	 	 	 	 	 	 	 	 	0.01	 	 	 	—	 	
Income from unconsolidated subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.01	 	 	 	0.01	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) margins	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.04	)	 	 	0.01	 	 	 	(0.03	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher interest income (expense)	 	 	(0.01	)	 	 	(0.03	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.04	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.01	 	 	 	(0.01	)	 	 	—	 	

Nine months ended June 30, 2007 operating results	 	 	0.64	 	 	 	0.43	 	 	 	0.76	 	 	 	0.07	 	 	 	0.04	 	 	 	0.06	 	 	 	2.00	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reversal of reserve for preliminary project costs	 	 	 	 	 	 	0.06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.06	 	
Resolution of a purchased gas contingency	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.03	 	 	 	 	 	 	 	 	 	 	 	0.03	 	
Discontinuance of hedge accounting	 	 	 	 	 	 	0.02	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.02	 	
 	 	 	
Nine months ended June 30, 2007 GAAP earnings	 	$	0.64	 	 	$	0.51	 	 	$	0.76	 	 	$	0.10	 	 	$	0.04	 	 	$	0.06	 	 	$	2.11	 	

 

Page 13
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	(Unaudited)	 	 	(Unaudited)	 	
(Thousands of Dollars, except per share amounts)	 	2007	 	 	2006	 	 	2007	 	 	2006	 	
SUMMARY OF OPERATIONS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Revenues	 	$	463,145	 	 	$	415,452	 	 	$	1,779,541	 	 	$	2,017,189	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased Gas	 	 	219,075	 	 	 	184,635	 	 	 	938,918	 	 	 	1,187,952	 	
Operation and Maintenance	 	 	96,782	 	 	 	96,117	 	 	 	321,695	 	 	 	320,821	 	
Property, Franchise and Other Taxes	 	 	17,804	 	 	 	16,845	 	 	 	55,149	 	 	 	54,147	 	
Depreciation, Depletion and Amortization	 	 	41,100	 	 	 	46,943	 	 	 	125,986	 	 	 	134,267	 	
Impairment of Oil and Gas Producing Properties	 	 	—	 	 	 	62,371	 	 	 	—	 	 	 	62,371	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	374,761	 	 	 	406,911	 	 	 	1,441,748	 	 	 	1,759,558	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income	 	 	88,384	 	 	 	8,541	 	 	 	337,793	 	 	 	257,631	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from Unconsolidated Subsidiaries	 	 	926	 	 	 	215	 	 	 	3,099	 	 	 	2,199	 	
Interest Income	 	 	1,649	 	 	 	2,203	 	 	 	3,897	 	 	 	4,301	 	
Other Income	 	 	787	 	 	 	546	 	 	 	4,028	 	 	 	1,535	 	
Interest Expense on Long-Term Debt	 	 	(18,226	)	 	 	(18,135	)	 	 	(52,158	)	 	 	(54,502	)	
Other Interest Expense	 	 	(1,512	)	 	 	(1,026	)	 	 	(4,877	)	 	 	(4,266	)	

Income (Loss) Before Income Taxes	 	 	72,008	 	 	 	(7,656	)	 	 	291,782	 	 	 	206,898	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Tax Expense (Benefit)	 	 	25,210	 	 	 	(7,767	)	 	 	112,017	 	 	 	70,775	 	

Net Income Available for Common Stock	 	$	46,798	 	 	$	111	 	 	$	179,765	 	 	$	136,123	 	

Earnings Per Common Share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	$	0.56	 	 	$	—	 	 	$	2.17	 	 	$	1.62	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	 	$	0.55	 	 	$	—	 	 	$	2.11	 	 	$	1.58	 	

Weighted Average Common Shares:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Used in Basic Calculation	 	 	83,483,718	 	 	 	84,013,556	 	 	 	83,018,583	 	 	 	84,231,490	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Used in Diluted Calculation	 	 	85,668,055	 	 	 	86,016,131	 	 	 	85,192,777	 	 	 	86,150,927	 	

 

Page 14
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	June 30,	 	September 30,	
(Thousands of Dollars)	 	2007	 	2006	
 	 	 	
ASSETS	 	 	 	 	 	 	 	 	
Property, Plant and Equipment	 	$	4,928,627	 	 	$	4,703,040	 	
Less - Accumulated Depreciation, Depletion and Amortization	 	 	1,960,265	 	 	 	1,825,314	 	
 	 	 	
Net Property, Plant and Equipment	 	 	2,968,362	 	 	 	2,877,726	 	

Current Assets:	 	 	 	 	 	 	 	 	
Cash and Temporary Cash Investments	 	 	62,530	 	 	 	69,611	 	
Hedging Collateral Deposits	 	 	3,400	 	 	 	19,676	 	
Receivables - Net	 	 	222,249	 	 	 	144,254	 	
Unbilled Utility Revenue	 	 	20,569	 	 	 	25,538	 	
Gas Stored Underground	 	 	30,829	 	 	 	59,461	 	
Materials and Supplies — at average cost	 	 	30,621	 	 	 	36,693	 	
Unrecovered Purchased Gas Costs	 	 	—	 	 	 	12,970	 	
Prepaid Pension and Post-Retirement Benefit Costs	 	 	70,858	 	 	 	64,125	 	
Other Current Assets	 	 	26,324	 	 	 	63,723	 	
Deferred Income Taxes	 	 	21,271	 	 	 	23,402	 	
 	 	 	
Total Current Assets	 	 	488,651	 	 	 	519,453	 	

Other Assets:	 	 	 	 	 	 	 	 	
Recoverable Future Taxes	 	 	79,010	 	 	 	79,511	 	
Unamortized Debt Expense	 	 	12,555	 	 	 	15,492	 	
Other Regulatory Assets	 	 	84,325	 	 	 	76,917	 	
Deferred Charges	 	 	5,861	 	 	 	3,558	 	
Other Investments	 	 	83,444	 	 	 	88,414	 	
Investments in Unconsolidated Subsidiaries	 	 	16,377	 	 	 	11,590	 	
Goodwill	 	 	5,476	 	 	 	5,476	 	
Intangible Assets	 	 	29,757	 	 	 	31,498	 	
Fair Value of Derivative Financial Instruments	 	 	6,170	 	 	 	11,305	 	
Deferred Income Taxes	 	 	5,421	 	 	 	9,003	 	
Other	 	 	7,716	 	 	 	4,388	 	
 	 	 	
Total Other Assets	 	 	336,112	 	 	 	337,152	 	
 	 	 	
Total Assets	 	$	3,793,125	 	 	$	3,734,331	 	

CAPITALIZATION AND LIABILITIES	 	 	 	 	 	 	 	 	
Capitalization:	 	 	 	 	 	 	 	 	
Comprehensive Shareholders’ Equity	 	 	 	 	 	 	 	 	
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 83,536,549 Shares and 83,402,670 Shares, Respectively	 	$	83,537	 	 	$	83,403	 	
Paid in Capital	 	 	568,537	 	 	 	543,730	 	
Earnings Reinvested in the Business	 	 	855,803	 	 	 	786,013	 	
 	 	 	
Total Common Shareholder Equity Before Items of Other Comprehensive Income	 	 	1,507,877	 	 	 	1,413,146	 	
Accumulated Other Comprehensive Income	 	 	43,984	 	 	 	30,416	 	
 	 	 	
Total Comprehensive Shareholders’ Equity	 	 	1,551,861	 	 	 	1,443,562	 	
Long-Term Debt, Net of Current Portion	 	 	799,000	 	 	 	1,095,675	 	
 	 	 	
Total Capitalization	 	 	2,350,861	 	 	 	2,539,237	 	

Current and Accrued Liabilities:	 	 	 	 	 	 	 	 	
Notes Payable to Banks and Commercial Paper	 	 	—	 	 	 	—	 	
Current Portion of Long-Term Debt	 	 	200,050	 	 	 	22,925	 	
Accounts Payable	 	 	120,978	 	 	 	133,034	 	
Amounts Payable to Customers	 	 	19,197	 	 	 	23,935	 	
Dividends Payable	 	 	25,897	 	 	 	25,008	 	
Interest Payable on Long-Term Debt	 	 	13,541	 	 	 	18,420	 	
Other Accruals and Current Liabilities	 	 	96,587	 	 	 	27,040	 	
Fair Value of Derivative Financial Instruments	 	 	17,133	 	 	 	39,983	 	
 	 	 	
Total Current and Accrued Liabilities	 	 	493,383	 	 	 	290,345	 	
 	 	 	
Deferred Credits:	 	 	 	 	 	 	 	 	
Deferred Income Taxes	 	 	566,133	 	 	 	544,502	 	
Taxes Refundable to Customers	 	 	10,437	 	 	 	10,426	 	
Unamortized Investment Tax Credit	 	 	5,568	 	 	 	6,094	 	
Cost of Removal Regulatory Liability	 	 	88,949	 	 	 	85,076	 	
Other Regulatory Liabilities	 	 	73,212	 	 	 	75,456	 	
Post-Retirement Liabilities	 	 	24,310	 	 	 	32,918	 	
Asset Retirement Obligations	 	 	80,739	 	 	 	77,392	 	
Other Deferred Credits	 	 	99,533	 	 	 	72,885	 	
 	 	 	
Total Deferred Credits	 	 	948,881	 	 	 	904,749	 	
 	 	 	
Commitments and Contingencies	 	 	—	 	 	 	—	 	
 	 	 	
Total Capitalization and Liabilities	 	$	3,793,125	 	 	$	3,734,331	 	

 

Page 15
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	Nine Months Ended	
 	 	June 30,	
(Thousands of Dollars)	 	2007	 	2006	
 	
Operating Activities:	 	 	 	 	 	 	 	 	
Net Income Available for Common Stock	 	$	179,765	 	 	$	136,123	 	
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:	 	 	 	 	 	 	 	 	
Impairment of Oil and Gas Producing Properties	 	 	—	 	 	 	62,371	 	
Depreciation, Depletion and Amortization	 	 	125,986	 	 	 	134,267	 	
Deferred Income Taxes	 	 	27,107	 	 	 	(17,430	)	
Income from Unconsolidated Subsidiaries, Net of Cash Distributions	 	 	(1,486	)	 	 	2,452	 	
Excess Tax Benefits Associated with Stock-Based Compensation Awards	 	 	(13,689	)	 	 	(6,515	)	
Other	 	 	4,722	 	 	 	(6,493	)	
Change in:	 	 	 	 	 	 	 	 	
Hedging Collateral Deposits	 	 	16,276	 	 	 	63,100	 	
Receivables and Unbilled Utility Revenue	 	 	(73,150	)	 	 	(72,496	)	
Gas Stored Underground and Materials and Supplies	 	 	34,725	 	 	 	21,098	 	
Unrecovered Purchased Gas Costs	 	 	12,970	 	 	 	14,817	 	
Prepayments and Other Current Assets	 	 	30,685	 	 	 	21,800	 	
Accounts Payable	 	 	(12,560	)	 	 	(24,650	)	
Amounts Payable to Customers	 	 	(4,738	)	 	 	30,418	 	
Other Accruals and Current Liabilities	 	 	77,842	 	 	 	49,950	 	
Other Assets	 	 	918	 	 	 	(15,753	)	
Other Liabilities	 	 	(821	)	 	 	16,855	 	
 	
Net Cash Provided by Operating Activities	 	$	404,552	 	 	$	409,914	 	

Investing Activities:	 	 	 	 	 	 	 	 	
Capital Expenditures	 	 	($206,509	)	 	 	($218,658	)	
Investment in Partnership	 	 	(3,300	)	 	 	—	 	
Net Proceeds from Sale of Oil and Gas Producing Properties	 	 	5,137	 	 	 	4	 	
Other	 	 	(1,072	)	 	 	(1,578	)	
 	
Net Cash Used in Investing Activities	 	 	($205,744	)	 	 	($220,232	)	
 	
Financing Activities:	 	 	 	 	 	 	 	 	
Excess Tax Benefits Associated with Stock-Based Compensation Awards	 	$	13,689	 	 	$	6,515	 	
Shares Repurchased under Repurchase Plan	 	 	(43,344	)	 	 	(76,540	)	
Reduction of Long-Term Debt	 	 	(119,550	)	 	 	(7,157	)	
Dividends Paid on Common Stock	 	 	(74,748	)	 	 	(73,275	)	
Proceeds From Issuance of Common Stock	 	 	16,819	 	 	 	23,399	 	
 	
Net Cash Used In Financing Activities	 	 	($207,134	)	 	 	($127,058	)	
 	
Effect of Exchange Rates on Cash	 	 	1,245	 	 	 	1,395	 	
 	
Net Increase (Decrease) in Cash and Temporary Cash Investments	 	 	(7,081	)	 	 	64,019	 	
Cash and Temporary Cash Investments at Beginning of Period	 	 	69,611	 	 	 	57,607	 	
 	
Cash and Temporary Cash Investments at June 30	 	$	62,530	 	 	$	121,626	 	

 

Page 16
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
(Thousands of Dollars, except per share amounts)	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
UTILITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues from External Customers	 	$	210,604	 	 	$	186,661	 	 	$	23,943	 	 	$	1,000,860	 	 	$	1,154,375	 	 	$	(153,515	)	
Intersegment Revenues	 	 	2,586	 	 	 	2,514	 	 	 	72	 	 	 	12,556	 	 	 	12,317	 	 	 	239	 	
 	 	 	 	 	
Total Operating Revenues	 	 	213,190	 	 	 	189,175	 	 	 	24,015	 	 	 	1,013,416	 	 	 	1,166,692	 	 	 	(153,276	)	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased Gas	 	 	131,469	 	 	 	115,463	 	 	 	16,006	 	 	 	670,694	 	 	 	830,823	 	 	 	(160,129	)	
Operation and Maintenance	 	 	47,231	 	 	 	45,889	 	 	 	1,342	 	 	 	165,446	 	 	 	163,098	 	 	 	2,348	 	
Property, Franchise and Other Taxes	 	 	11,688	 	 	 	11,106	 	 	 	582	 	 	 	36,986	 	 	 	36,878	 	 	 	108	 	
Depreciation, Depletion and Amortization	 	 	10,053	 	 	 	10,054	 	 	 	(1	)	 	 	30,153	 	 	 	30,058	 	 	 	95	 	
 	 	 	 	 	
 	 	 	200,441	 	 	 	182,512	 	 	 	17,929	 	 	 	903,279	 	 	 	1,060,857	 	 	 	(157,578	)	

Operating Income	 	 	12,749	 	 	 	6,663	 	 	 	6,086	 	 	 	110,137	 	 	 	105,835	 	 	 	4,302	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	100	 	 	 	162	 	 	 	(62	)	 	 	562	 	 	 	542	 	 	 	20	 	
Other Income	 	 	273	 	 	 	205	 	 	 	68	 	 	 	926	 	 	 	609	 	 	 	317	 	
Other Interest Expense	 	 	(6,697	)	 	 	(5,789	)	 	 	(908	)	 	 	(21,343	)	 	 	(19,392	)	 	 	(1,951	)	
 	 	 	 	 	
Income Before Income Taxes	 	 	6,425	 	 	 	1,241	 	 	 	5,184	 	 	 	90,282	 	 	 	87,594	 	 	 	2,688	 	
Income Tax Expense	 	 	2,720	 	 	 	414	 	 	 	2,306	 	 	 	35,960	 	 	 	36,360	 	 	 	(400	)	
 	 	 	 	 	
Net Income	 	$	3,705	 	 	$	827	 	 	$	2,878	 	 	$	54,322	 	 	$	51,234	 	 	$	3,088	 	
 	 	 	 	 -	
Net Income Per Share (Diluted)	 	$	0.04	 	 	$	0.01	 	 	$	0.03	 	 	$	0.64	 	 	$	0.59	 	 	$	0.05	 	
 	 	 	 	 -	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
PIPELINE AND STORAGE SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues from External Customers	 	$	30,128	 	 	$	30,750	 	 	$	(622	)	 	$	94,889	 	 	$	104,835	 	 	$	(9,946	)	
Intersegment Revenues	 	 	20,332	 	 	 	20,298	 	 	 	34	 	 	 	61,585	 	 	 	61,304	 	 	 	281	 	
 	 	 	 	 	
Total Operating Revenues	 	 	50,460	 	 	 	51,048	 	 	 	(588	)	 	 	156,474	 	 	 	166,139	 	 	 	(9,665	)	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased Gas	 	 	—	 	 	 	(80	)	 	 	80	 	 	 	(11	)	 	 	(18	)	 	 	7	 	
Operation and Maintenance	 	 	9,471	 	 	 	15,613	 	 	 	(6,142	)	 	 	42,118	 	 	 	47,878	 	 	 	(5,760	)	
Property, Franchise and Other Taxes	 	 	4,182	 	 	 	4,012	 	 	 	170	 	 	 	12,795	 	 	 	11,979	 	 	 	816	 	
Depreciation, Depletion and Amortization	 	 	7,995	 	 	 	9,290	 	 	 	(1,295	)	 	 	24,851	 	 	 	27,649	 	 	 	(2,798	)	
 	 	 	 	 	
 	 	 	21,648	 	 	 	28,835	 	 	 	(7,187	)	 	 	79,753	 	 	 	87,488	 	 	 	(7,735	)	

Operating Income	 	 	28,812	 	 	 	22,213	 	 	 	6,599	 	 	 	76,721	 	 	 	78,651	 	 	 	(1,930	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	100	 	 	 	120	 	 	 	(20	)	 	 	224	 	 	 	316	 	 	 	(92	)	
Other Income	 	 	154	 	 	 	116	 	 	 	38	 	 	 	418	 	 	 	384	 	 	 	34	 	
Interest Expense on Long-Term Debt	 	 	(21	)	 	 	(245	)	 	 	224	 	 	 	1,807	 	 	 	(837	)	 	 	2,644	 	
Other Interest Expense	 	 	(3,112	)	 	 	(1,339	)	 	 	(1,773	)	 	 	(8,140	)	 	 	(3,728	)	 	 	(4,412	)	

Income Before Income Taxes	 	 	25,933	 	 	 	20,865	 	 	 	5,068	 	 	 	71,030	 	 	 	74,786	 	 	 	(3,756	)	
Income Tax Expense	 	 	10,482	 	 	 	8,223	 	 	 	2,259	 	 	 	27,955	 	 	 	29,402	 	 	 	(1,447	)	
 	 	 	 	 	
Net Income	 	$	15,451	 	 	$	12,642	 	 	$	2,809	 	 	$	43,075	 	 	$	45,384	 	 	$	(2,309	)	

Net Income Per Share (Diluted)	 	$	0.18	 	 	$	0.15	 	 	$	0.03	 	 	$	0.51	 	 	$	0.53	 	 	$	(0.02	)	

 

Page 17
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
(Thousands of Dollars, except per share amounts)	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
EXPLORATION AND PRODUCTION SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Revenues	 	$	94,394	 	 	$	86,600	 	 	$	7,794	 	 	$	275,712	 	 	$	257,406	 	 	$	18,306	 	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased Gas	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	98	 	 	 	(98	)	
Operation and Maintenance:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General and Administrative Expense	 	 	6,860	 	 	 	5,783	 	 	 	1,077	 	 	 	18,379	 	 	 	18,465	 	 	 	(86	)	
Lease Operating Expense	 	 	15,248	 	 	 	11,485	 	 	 	3,763	 	 	 	43,649	 	 	 	38,179	 	 	 	5,470	 	
All Other Operation and Maintenance Expense	 	 	2,397	 	 	 	1,976	 	 	 	421	 	 	 	7,108	 	 	 	5,968	 	 	 	1,140	 	
Property, Franchise and Other Taxes (Lease Operating Expense)	 	 	1,470	 	 	 	1,236	 	 	 	234	 	 	 	3,861	 	 	 	3,972	 	 	 	(111	)	
Depreciation, Depletion and Amortization	 	 	21,832	 	 	 	25,997	 	 	 	(4,165	)	 	 	66,755	 	 	 	70,655	 	 	 	(3,900	)	
Impairment of Oil and Gas Producing Properties	 	 	—	 	 	 	62,371	 	 	 	(62,371	)	 	 	—	 	 	 	62,371	 	 	 	(62,371	)	
 	 	 	 	 	
 	 	 	47,807	 	 	 	108,848	 	 	 	(61,041	)	 	 	139,752	 	 	 	199,708	 	 	 	(59,956	)	

Operating Income (Loss)	 	 	46,587	 	 	 	(22,248	)	 	 	68,835	 	 	 	135,960	 	 	 	57,698	 	 	 	78,262	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	2,383	 	 	 	2,332	 	 	 	51	 	 	 	7,570	 	 	 	6,113	 	 	 	1,457	 	
Interest Expense on Long-Term Debt	 	 	(1,188	)	 	 	—	 	 	 	(1,188	)	 	 	(1,188	)	 	 	—	 	 	 	(1,188	)	
Other Interest Expense	 	 	(12,510	)	 	 	(12,671	)	 	 	161	 	 	 	(38,406	)	 	 	(37,622	)	 	 	(784	)	

Income (Loss) Before Income Taxes	 	 	35,272	 	 	 	(32,587	)	 	 	67,859	 	 	 	103,936	 	 	 	26,189	 	 	 	77,747	 	
Income Tax Expense (Benefit)	 	 	10,837	 	 	 	(17,460	)	 	 	28,297	 	 	 	38,978	 	 	 	(1,963	)	 	 	40,941	 	
 	 	 	 	 	
Net Income (Loss)	 	$	24,435	 	 	$	(15,127	)	 	$	39,562	 	 	$	64,958	 	 	$	28,152	 	 	$	36,806	 	
 	 	 	 	 	
Net Income (Loss) Per Share (Diluted)	 	$	0.29	 	 	$	(0.18	)	 	$	0.47	 	 	$	0.76	 	 	$	0.33	 	 	$	0.43	 	

 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
ENERGY MARKETING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Revenues	 	$	113,380	 	 	$	94,747	 	 	$	18,633	 	 	$	360,036	 	 	$	446,367	 	 	$	(86,331	)	
Operating Expenses:	 	 	 	 	
Purchased Gas	 	 	110,765	 	 	 	91,920	 	 	 	18,845	 	 	 	343,047	 	 	 	433,311	 	 	 	(90,264	)	
Operation and Maintenance	 	 	1,199	 	 	 	1,404	 	 	 	(205	)	 	 	3,711	 	 	 	3,894	 	 	 	(183	)	
Property, Franchise and Other Taxes	 	 	11	 	 	 	8	 	 	 	3	 	 	 	46	 	 	 	(232	)	 	 	278	 	
Depreciation, Depletion and Amortization	 	 	9	 	 	 	10	 	 	 	(1	)	 	 	23	 	 	 	46	 	 	 	(23	)	
 	 	 	 	 	
 	 	 	111,984	 	 	 	93,342	 	 	 	18,642	 	 	 	346,827	 	 	 	437,019	 	 	 	(90,192	)	

Operating Income	 	 	1,396	 	 	 	1,405	 	 	 	(9	)	 	 	13,209	 	 	 	9,348	 	 	 	3,861	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	359	 	 	 	132	 	 	 	227	 	 	 	498	 	 	 	301	 	 	 	197	 	
Other Income	 	 	273	 	 	 	143	 	 	 	130	 	 	 	590	 	 	 	363	 	 	 	227	 	
Other Interest Expense	 	 	(2	)	 	 	(16	)	 	 	14	 	 	 	(253	)	 	 	(207	)	 	 	(46	)	

Income Before Income Taxes	 	 	2,026	 	 	 	1,664	 	 	 	362	 	 	 	14,044	 	 	 	9,805	 	 	 	4,239	 	
Income Tax Expense	 	 	793	 	 	 	619	 	 	 	174	 	 	 	5,613	 	 	 	3,896	 	 	 	1,717	 	
 	 	 	 	 	
Net Income	 	$	1,233	 	 	$	1,045	 	 	$	188	 	 	$	8,431	 	 	$	5,909	 	 	$	2,522	 	

Net Income Per Share (Diluted)	 	$	0.01	 	 	$	0.01	 	 	$	—	 	 	$	0.10	 	 	$	0.07	 	 	$	0.03	 	

 

Page 18
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
(Thousands of Dollars, except per share amounts)	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
TIMBER SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues from External Customers	 	$	13,131	 	 	$	15,311	 	 	$	(2,180	)	 	$	43,079	 	 	$	51,377	 	 	$	(8,298	)	
 	 	 	 	 	
Intersegment Revenues	 	 	—	 	 	 	4	 	 	 	(4	)	 	 	—	 	 	 	4	 	 	 	(4	)	
 	 	 	 	 	
Total Operating Revenues	 	 	13,131	 	 	 	15,315	 	 	 	(2,184	)	 	 	43,079	 	 	 	51,381	 	 	 	(8,302	)	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operation and Maintenance	 	 	11,919	 	 	 	10,898	 	 	 	1,021	 	 	 	32,031	 	 	 	35,328	 	 	 	(3,297	)	
Property, Franchise and Other Taxes	 	 	363	 	 	 	382	 	 	 	(19	)	 	 	1,183	 	 	 	1,241	 	 	 	(58	)	
Depreciation, Depletion and Amortization	 	 	843	 	 	 	1,275	 	 	 	(432	)	 	 	3,093	 	 	 	4,913	 	 	 	(1,820	)	
 	 	 	 	 	
 	 	 	13,125	 	 	 	12,555	 	 	 	570	 	 	 	36,307	 	 	 	41,482	 	 	 	(5,175	)	

Operating Income	 	 	6	 	 	 	2,760	 	 	 	(2,754	)	 	 	6,772	 	 	 	9,899	 	 	 	(3,127	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	310	 	 	 	217	 	 	 	93	 	 	 	923	 	 	 	518	 	 	 	405	 	
Other Income	 	 	—	 	 	 	—	 	 	 	—	 	 	 	21	 	 	 	52	 	 	 	(31	)	
Other Interest Expense	 	 	(808	)	 	 	(778	)	 	 	(30	)	 	 	(2,403	)	 	 	(2,299	)	 	 	(104	)	

Income (Loss) Before Income Taxes	 	 	(492	)	 	 	2,199	 	 	 	(2,691	)	 	 	5,313	 	 	 	8,170	 	 	 	(2,857	)	
Income Tax Expense (Benefit)	 	 	(128	)	 	 	670	 	 	 	(798	)	 	 	2,260	 	 	 	2,935	 	 	 	(675	)	
 	 	 	 	 	
Net Income (Loss)	 	$	(364	)	 	$	1,529	 	 	$	(1,893	)	 	$	3,053	 	 	$	5,235	 	 	$	(2,182	)	

Net Income (Loss) Per Share (Diluted)	 	$	—	 	 	$	0.02	 	 	$	(0.02	)	 	$	0.04	 	 	$	0.06	 	 	$	(0.02	)	

 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
ALL OTHER	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues from External Customers	 	$	1,308	 	 	$	1,192	 	 	$	116	 	 	$	4,387	 	 	$	2,250	 	 	$	2,137	 	
Intersegment Revenues	 	 	2,253	 	 	 	1,354	 	 	 	899	 	 	 	6,540	 	 	 	7,938	 	 	 	(1,398	)	
 	 	 	 	 	
Total Operating Revenues	 	 	3,561	 	 	 	2,546	 	 	 	1,015	 	 	 	10,927	 	 	 	10,188	 	 	 	739	 	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased Gas	 	 	1,910	 	 	 	1,395	 	 	 	515	 	 	 	5,560	 	 	 	6,366	 	 	 	(806	)	
Operation and Maintenance	 	 	1,007	 	 	 	803	 	 	 	204	 	 	 	2,763	 	 	 	2,598	 	 	 	165	 	
Property, Franchise and Other Taxes	 	 	22	 	 	 	33	 	 	 	(11	)	 	 	69	 	 	 	75	 	 	 	(6	)	
Depreciation, Depletion and Amortization	 	 	196	 	 	 	196	 	 	 	—	 	 	 	589	 	 	 	593	 	 	 	(4	)	
 	 	 	 	 	
 	 	 	3,135	 	 	 	2,427	 	 	 	708	 	 	 	8,981	 	 	 	9,632	 	 	 	(651	)	

Operating Income	 	 	426	 	 	 	119	 	 	 	307	 	 	 	1,946	 	 	 	556	 	 	 	1,390	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from Unconsolidated Subsidiaries	 	 	926	 	 	 	215	 	 	 	711	 	 	 	3,099	 	 	 	2,199	 	 	 	900	 	
Interest Income	 	 	4	 	 	 	7	 	 	 	(3	)	 	 	11	 	 	 	20	 	 	 	(9	)	
Other Income	 	 	12	 	 	 	27	 	 	 	(15	)	 	 	37	 	 	 	42	 	 	 	(5	)	
Other Interest Expense	 	 	(662	)	 	 	(668	)	 	 	6	 	 	 	(1,999	)	 	 	(1,874	)	 	 	(125	)	

Income (Loss) Before Income Taxes	 	 	706	 	 	 	(300	)	 	 	1,006	 	 	 	3,094	 	 	 	943	 	 	 	2,151	 	
Income Tax Expense (Benefit)	 	 	248	 	 	 	(88	)	 	 	336	 	 	 	1,183	 	 	 	539	 	 	 	644	 	
 	 	 	 	 	
Net Income (Loss)	 	$	458	 	 	$	(212	)	 	$	670	 	 	$	1,911	 	 	$	404	 	 	$	1,507	 	

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

 

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,	
CORPORATE	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
Revenues from External Customers	 	$	200	 	 	$	191	 	 	$	9	 	 	$	578	 	 	$	579	 	 	$	(1	)	
Intersegment Revenues	 	 	853	 	 	 	737	 	 	 	116	 	 	 	2,616	 	 	 	2,212	 	 	 	404	 	
 	 	 	 	 	
Total Operating Revenues	 	 	1,053	 	 	 	928	 	 	 	125	 	 	 	3,194	 	 	 	2,791	 	 	 	403	 	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operation and Maintenance	 	 	2,405	 	 	 	3,110	 	 	 	(705	)	 	 	9,415	 	 	 	6,560	 	 	 	2,855	 	
Property, Franchise and Other Taxes	 	 	68	 	 	 	68	 	 	 	—	 	 	 	209	 	 	 	234	 	 	 	(25	)	
Depreciation, Depletion and Amortization	 	 	172	 	 	 	121	 	 	 	51	 	 	 	522	 	 	 	353	 	 	 	169	 	
 	 	 	 	 	
 	 	 	2,645	 	 	 	3,299	 	 	 	(654	)	 	 	10,146	 	 	 	7,147	 	 	 	2,999	 	

Operating Income (Loss)	 	 	(1,592	)	 	 	(2,371	)	 	 	779	 	 	 	(6,952	)	 	 	(4,356	)	 	 	(2,596	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	21,711	 	 	 	20,424	 	 	 	1,287	 	 	 	65,778	 	 	 	60,127	 	 	 	5,651	 	
Other Income	 	 	75	 	 	 	55	 	 	 	20	 	 	 	2,036	 	 	 	85	 	 	 	1,951	 	
Interest Expense on Long-Term Debt	 	 	(17,017	)	 	 	(17,890	)	 	 	873	 	 	 	(52,777	)	 	 	(53,665	)	 	 	888	 	
Other Interest Expense	 	 	(1,039	)	 	 	(956	)	 	 	(83	)	 	 	(4,002	)	 	 	(2,780	)	 	 	(1,222	)	

Income (Loss) Before Income Taxes	 	 	2,138	 	 	 	(738	)	 	 	2,876	 	 	 	4,083	 	 	 	(589	)	 	 	4,672	 	
Income Tax Expense (Benefit)	 	 	258	 	 	 	(145	)	 	 	403	 	 	 	68	 	 	 	(394	)	 	 	462	 	
 	 	 	 	 	
Net Income (Loss)	 	$	1,880	 	 	$	(593	)	 	$	2,473	 	 	$	4,015	 	 	$	(195	)	 	$	4,210	 	

Net Income (Loss) Per Share (Diluted)	 	$	0.02	 	 	$	(0.01	)	 	$	0.03	 	 	$	0.04	 	 	$	—	 	 	$	0.04	 	

 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
INTERSEGMENT ELIMINATIONS	 	2007	 	2006	 	Variance	 	2007	 	2006	 	Variance	
 	 	 	 	 	
Intersegment Revenues	 	$	(26,024	)	 	$	(24,907	)	 	$	(1,117	)	 	$	(83,297	)	 	$	(83,775	)	 	$	478	 	

Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased Gas	 	 	(25,069	)	 	 	(24,063	)	 	 	(1,006	)	 	 	(80,372	)	 	 	(82,628	)	 	 	2,256	 	
Operation and Maintenance	 	 	(955	)	 	 	(844	)	 	 	(111	)	 	 	(2,925	)	 	 	(1,147	)	 	 	(1,778	)	
 	 	 	 	 	
 	 	 	(26,024	)	 	 	(24,907	)	 	 	(1,117	)	 	 	(83,297	)	 	 	(83,775	)	 	 	478	 	

Operating Income	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	(23,318	)	 	 	(21,191	)	 	 	(2,127	)	 	 	(71,669	)	 	 	(63,636	)	 	 	(8,033	)	
Other Interest Expense	 	 	23,318	 	 	 	21,191	 	 	 	2,127	 	 	 	71,669	 	 	 	63,636	 	 	 	8,033	 	

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

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

 

Page 20
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	(Unaudited)	 	 	(Unaudited)	 	
 	 	 	 	 	 	 	 	 	 	Increase	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	2007	 	 	2006	 	 	(Decrease)	 	 	2007	 	 	2006	 	 	(Decrease)	 	
Capital Expenditures:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Utility	 	$	14,387	 	 	$	14,012	 	 	$	375	 	 	$	39,945	 	 	$	39,372	 	 	$	573	 	
Pipeline and Storage	 	 	16,255	 	 	 	5,033	 	 	 	11,222	 	 	 	26,408	 	 	 	15,361	 	 	 	11,047	 	
Exploration and Production	 	 	42,421	 	 	 	63,999	 	 	 	(21,578	)	 	 	138,287	 	 	 	160,323	 	 	 	(22,036	)	
Energy Marketing	 	 	41	 	 	 	—	 	 	 	41	 	 	 	57	 	 	 	6	 	 	 	51	 	
Timber	 	 	1,056	 	 	 	378	 	 	 	678	 	 	 	2,263	 	 	 	1,130	 	 	 	1,133	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Reportable Segments	 	 	74,160	 	 	 	83,422	 	 	 	(9,262	)	 	 	206,960	 	 	 	216,192	 	 	 	(9,232	)	
All Other	 	 	3	 	 	 	22	 	 	 	(19	)	 	 	87	 	 	 	78	 	 	 	9	 	
Corporate	 	 	33	 	 	 	253	 	 	 	(220	)	 	 	(538	)	 	 	2,388	 	 	 	(2,926	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Consolidated	 	$	74,196	 	 	$	83,697	 	 	$	(9,501	)	 	$	206,509	 	 	$	218,658	 	 	$	(12,149	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
      DEGREE DAYS
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percent Colder	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Warmer) Than:	
 	 	Normal	 	2007	 	2006	 	Normal	 	Last Year	
Three Months Ended June 30	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Buffalo, NY	 	 	927	 	 	 	921	 	 	 	731	 	 	 	(0.6	)	 	 	26.0	 	
Erie, PA	 	 	885	 	 	 	900	 	 	 	812	 	 	 	1.7	 	 	 	10.8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended June 30	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Buffalo, NY	 	 	6,514	 	 	 	6,195	 	 	 	5,816	 	 	 	(4.9	)	 	 	6.5	 	
Erie, PA	 	 	6,108	 	 	 	5,930	 	 	 	5,565	 	 	 	(2.9	)	 	 	6.6	 	

 

Page 21
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	 	 	 	 	 	 	 	 	Increase	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	2007	 	 	2006	 	 	(Decrease)	 	 	2007	 	 	2006	 	 	(Decrease)	 	
Gas Production/Prices:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	2,317	 	 	 	2,109	 	 	 	208	 	 	 	7,934	 	 	 	6,529	 	 	 	1,405	 	
West Coast	 	 	1,019	 	 	 	983	 	 	 	36	 	 	 	2,883	 	 	 	2,933	 	 	 	(50	)	
Appalachia	 	 	1,266	 	 	 	1,267	 	 	 	(1	)	 	 	3,998	 	 	 	3,766	 	 	 	232	 	
Canada	 	 	1,639	 	 	 	2,158	 	 	 	(519	)	 	 	5,216	 	 	 	5,830	 	 	 	(614	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	6,241	 	 	 	6,517	 	 	 	(276	)	 	 	20,031	 	 	 	19,058	 	 	 	973	 	

Average Prices (Per Mcf)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	$	7.37	 	 	$	6.97	 	 	$	0.40	 	 	$	6.74	 	 	$	8.56	 	 	$	(1.82	)	
West Coast	 	 	7.20	 	 	 	6.06	 	 	 	1.14	 	 	 	6.76	 	 	 	8.42	 	 	 	(1.66	)	
Appalachia	 	 	8.59	 	 	 	7.26	 	 	 	1.33	 	 	 	7.71	 	 	 	10.29	 	 	 	(2.58	)	
Canada	 	 	6.82	 	 	 	5.54	 	 	 	1.28	 	 	 	6.34	 	 	 	7.75	 	 	 	(1.41	)	
Weighted Average	 	 	7.45	 	 	 	6.41	 	 	 	1.04	 	 	 	6.83	 	 	 	8.64	 	 	 	(1.81	)	
Weighted Average after Hedging	 	 	7.33	 	 	 	6.57	 	 	 	0.76	 	 	 	7.04	 	 	 	7.43	 	 	 	(0.39	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil Production/Prices:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Production (Thousands of Barrels)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	165	 	 	 	192	 	 	 	(27	)	 	 	540	 	 	 	479	 	 	 	61	 	
West Coast	 	 	599	 	 	 	638	 	 	 	(39	)	 	 	1,789	 	 	 	1,962	 	 	 	(173	)	
Appalachia	 	 	32	 	 	 	19	 	 	 	13	 	 	 	91	 	 	 	41	 	 	 	50	 	
Canada	 	 	58	 	 	 	66	 	 	 	(8	)	 	 	175	 	 	 	221	 	 	 	(46	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	854	 	 	 	915	 	 	 	(61	)	 	 	2,595	 	 	 	2,703	 	 	 	(108	)	

Average Prices (Per Barrel)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	$	65.17	 	 	$	67.52	 	 	$	(2.35	)	 	$	59.37	 	 	$	62.04	 	 	$	(2.67	)	
West Coast	 	 	57.77	 	 	 	61.51	 	 	 	(3.74	)	 	 	52.96	 	 	 	55.40	 	 	 	(2.44	)	
Appalachia	 	 	60.43	 	 	 	63.15	 	 	 	(2.72	)	 	 	59.35	 	 	 	61.92	 	 	 	(2.57	)	
Canada	 	 	51.58	 	 	 	57.88	 	 	 	(6.30	)	 	 	48.16	 	 	 	49.25	 	 	 	(1.09	)	
Weighted Average	 	 	58.87	 	 	 	62.54	 	 	 	(3.67	)	 	 	54.20	 	 	 	56.17	 	 	 	(1.97	)	
Weighted Average after Hedging	 	 	53.40	 	 	 	45.13	 	 	 	8.27	 	 	 	48.37	 	 	 	39.56	 	 	 	8.81	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Production (Mmcfe)	 	 	11,365	 	 	 	12,007	 	 	 	(642	)	 	 	35,601	 	 	 	35,276	 	 	 	325	 	

Selected Operating Performance Statistics:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General & Administrative Expense per Mcfe (1)	 	$	0.60	 	 	$	0.48	 	 	$	0.12	 	 	$	0.52	 	 	$	0.52	 	 	$	—	 	
Lease Operating Expense per Mcfe (1)	 	$	1.47	 	 	$	1.06	 	 	$	0.41	 	 	$	1.33	 	 	$	1.19	 	 	$	0.14	 	
Depreciation, Depletion & Amortization per Mcfe (1)	 	$	1.92	 	 	$	2.17	 	 	$	(0.25	)	 	$	1.88	 	 	$	2.00	 	 	$	(0.12	)	

(1)	 	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.	

 

Page 22
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Three Months of Fiscal 2007
 	 	 	 	 	
SWAPS	 	Volume	 	Average Hedge Price	
Oil	 	0.2 MMBBL	 	$37.86 / BBL	
Gas	 	3.3 BCF	 	$7.41 / MCF	
 	 	 	 	 	 	 	
No-cost Collars	 	Volume	 	Floor Price	 	Ceiling Price	
Gas	 	1.3 BCF	 	$7.42 / MCF	 	$16.42 / MCF	
Hedging Summary for Fiscal 2008
 	 	 	 	 	
SWAPS	 	Volume	 	Average Hedge Price	
Oil
Gas	 	0.8 MMBBL
7.9 BCF	 	$54.27 / BBL
$8.38 / MCF	
 	 	 	 	 	 	 	
No-cost Collars	 	Volume	 	Floor Price	 	Ceiling Price	
Gas	 	1.4 BCF	 	$8.83/MCF	 	$16.45/MCF	
Hedging Summary for Fiscal 2009
 	 	 	 	 	
SWAPS	 	Volume	 	Average Hedge Price	
Oil	 	0.2 MMBBL	 	$54.70 / BBL	
Gross Wells in Process of Drilling
Nine Months Ended June 30, 2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	 	 	 	Total	
 	 	Gulf	 	West	 	East	 	U.S.	 	Canada	 	Company	
Wells in Process - Beginning Period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	4.00	 	 	 	1.00	 	 	 	10.00	 	 	 	15.00	 	 	 	5.00	 	 	 	20.00	 	
Developmental	 	 	1.00	 	 	 	5.00	 	 	 	44.00	 	 	 	50.00	 	 	 	0.00	 	 	 	50.00	 	
Wells Commenced	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	5.00	 	 	 	0.00	 	 	 	15.00	 	 	 	20.00	 	 	 	8.00	 	 	 	28.00	 	
Developmental	 	 	2.00	 	 	 	60.00	 	 	 	127.00	 	 	 	189.00	 	 	 	3.00	 	 	 	192.00	 	
Wells Completed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	3.00	 	 	 	1.00	 	 	 	3.00	 	 	 	7.00	 	 	 	10.00	 	 	 	17.00	 	
Developmental	 	 	2.00	 	 	 	59.00	 	 	 	115.00	 	 	 	176.00	 	 	 	3.00	 	 	 	179.00	 	
Wells Plugged & Abandoned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	3.00	 	 	 	0.00	 	 	 	0.00	 	 	 	3.00	 	 	 	0.00	 	 	 	3.00	 	
Developmental	 	 	0.00	 	 	 	2.00	 	 	 	2.00	 	 	 	4.00	 	 	 	0.00	 	 	 	4.00	 	
Wells in Process - End of Period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	3.00	 	 	 	0.00	 	 	 	22.00	 	 	 	25.00	 	 	 	3.00	 	 	 	28.00	 	
Developmental	 	 	1.00	 	 	 	4.00	 	 	 	54.00	 	 	 	59.00	 	 	 	0.00	 	 	 	59.00	 	
Net Wells in Process of Drilling
Nine Months Ended June 30, 2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	 	 	 	Total	
 	 	Gulf	 	West	 	East	 	U.S.	 	Canada	 	Company	
Wells in Process - Beginning Period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	2.02	 	 	 	0.50	 	 	 	10.00	 	 	 	12.52	 	 	 	2.13	 	 	 	14.65	 	
Developmental	 	 	0.67	 	 	 	5.00	 	 	 	44.00	 	 	 	49.67	 	 	 	0.00	 	 	 	49.67	 	
Wells Commenced	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	2.01	 	 	 	0.00	 	 	 	13.60	 	 	 	15.61	 	 	 	4.54	 	 	 	20.15	 	
Developmental	 	 	1.00	 	 	 	59.99	 	 	 	124.00	 	 	 	184.99	 	 	 	1.80	 	 	 	186.79	 	
Wells Completed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	1.20	 	 	 	0.50	 	 	 	2.60	 	 	 	4.30	 	 	 	5.88	 	 	 	10.18	 	
Developmental	 	 	1.00	 	 	 	58.99	 	 	 	113.00	 	 	 	172.99	 	 	 	1.80	 	 	 	174.79	 	
Wells Plugged & Abandoned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	1.42	 	 	 	0.00	 	 	 	0.00	 	 	 	1.42	 	 	 	0.00	 	 	 	1.42	 	
Developmental	 	 	0.00	 	 	 	2.00	 	 	 	2.00	 	 	 	4.00	 	 	 	0.00	 	 	 	4.00	 	
Wells in Process - End of Period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exploratory	 	 	1.41	 	 	 	0.00	 	 	 	21.00	 	 	 	22.41	 	 	 	0.79	 	 	 	23.20	 	
Developmental	 	 	0.67	 	 	 	4.00	 	 	 	53.00	 	 	 	57.67	 	 	 	0.00	 	 	 	57.67	 	

 

Page 23
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Fiscal 2008 Financial & Operating Guidance
 	 	 	 	 	 	 	 	 	
Total Production (Bcfe)	 	 	38 - 44	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Production by Division (Bcfe)	 	 	 	 	
Gulf	 	 	14.5 - 17.5	 	 	 	 	 	
East	 	 	6.5 - 7.5	 	 	 	 	 	
West	 	 	17 - 19	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Crude Oil Average 2008 NYMEX ($/Bbl) as of July 24, 2007 (without hedges):	 	$	72.69	 	
 	 	 	 	 	 	 	 	 	
Forecast price differentials	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Gulf	 	-$2.00 to -$5.00	 	 	 	 	
East	 	-$3.00 to -$5.00	 	 	 	 	
West	 	-$9.00 to -$13.00	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Natural Gas Average 2008 NYMEX ($/Mmbtu) as of July 24, 2007 (without hedges):	 	$	7.79	 	
 	 	 	 	 	 	 	 	 	
Forecast price differentials	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Gulf	 	-$0.25 to -$0.75	 	 	 	 	
East	 	-$0.25 to +$0.25	 	 	 	 	
West	 	-$1.00 to -$1.50	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Cost and Expenses $  per Mcfe	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Lease Operating Expenses	 	$	1.10 - $1.25	 	 	 	 	 	
Depreciation, Depletion and Amortization	 	$	2.20 - $2.30	 	 	 	 	 	
Other Taxes (% of Revenue)	 	$	0.20 - $0.25	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Other Operating Expenses	 	$	6M - $7M	 	 	 	 	 	
General and Administrative	 	$	20M - $22M	 	 	 	 	 	
 	 	 	 	 	
 	 	Capital Investment by Division	 	Number of Wells to be Drilled	
Gulf	 	$50M — $52M	 	4 — 8	
East	 	$57M — $60M	 	230 — 270	
West	 	$44M — $47M	 	75 — 90	
Total	 	$151M — $159M	 	 	

 

Page 24
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Utility Throughput — (millions of cubic feet — MMcf)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	 	 	 	 	 	 	 	 	Increase	 	 	 	 	 	 	 	 	 	Increase	
 	 	2007	 	2006	 	(Decrease)	 	2007	 	2006	 	(Decrease)	
Retail Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Residential Sales	 	 	10,679	 	 	 	8,740	 	 	 	1,939	 	 	 	56,729	 	 	 	55,071	 	 	 	1,658	 	
Commercial Sales	 	 	1,836	 	 	 	1,459	 	 	 	377	 	 	 	10,132	 	 	 	9,940	 	 	 	192	 	
Industrial Sales	 	 	113	 	 	 	114	 	 	 	(1	)	 	 	628	 	 	 	900	 	 	 	(272	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	12,628	 	 	 	10,313	 	 	 	2,315	 	 	 	67,489	 	 	 	65,911	 	 	 	1,578	 	
Off-System Sales	 	 	467	 	 	 	—	 	 	 	467	 	 	 	467	 	 	 	—	 	 	 	467	 	
Transportation	 	 	12,981	 	 	 	12,185	 	 	 	796	 	 	 	53,556	 	 	 	48,646	 	 	 	4,910	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	26,076	 	 	 	22,498	 	 	 	3,578	 	 	 	121,512	 	 	 	114,557	 	 	 	6,955	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pipeline & Storage Throughput- (MMcf)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	 	 	 	 	 	 	 	 	Increase	 	 	 	 	 	 	 	 	 	Increase	
 	 	2007	 	2006	 	(Decrease)	 	2007	 	2006	 	(Decrease)	
Firm Transportation - Affiliated	 	 	19,817	 	 	 	15,753	 	 	 	4,064	 	 	 	100,563	 	 	 	92,615	 	 	 	7,948	 	
Firm Transportation - Non-Affiliated	 	 	58,638	 	 	 	54,867	 	 	 	3,771	 	 	 	172,950	 	 	 	195,655	 	 	 	(22,705	)	
Interruptible Transportation	 	 	1,670	 	 	 	2,220	 	 	 	(550	)	 	 	3,597	 	 	 	7,774	 	 	 	(4,177	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	80,125	 	 	 	72,840	 	 	 	7,285	 	 	 	277,110	 	 	 	296,044	 	 	 	(18,934	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Energy Marketing Volumes
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	 	 	 	 	 	 	 	 	Increase	 	 	 	 	 	 	 	 	 	Increase	
 	 	2007	 	2006	 	(Decrease)	 	2007	 	2006	 	(Decrease)	
Natural Gas (MMcf)	 	 	13,014	 	 	 	11,190	 	 	 	1,824	 	 	 	44,063	 	 	 	38,496	 	 	 	5,567	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Timber Board Feet (Thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	
 	 	June 30,	 	June 30,	
 	 	 	 	 	 	 	 	 	 	Increase	 	 	 	 	 	 	 	 	 	Increase	
 	 	2007	 	2006	 	(Decrease)	 	2007	 	2006	 	(Decrease)	
Log Sales	 	 	1,724	 	 	 	1,767	 	 	 	(43	)	 	 	6,458	 	 	 	7,540	 	 	 	(1,082	)	
Green Lumber Sales	 	 	2,709	 	 	 	3,126	 	 	 	(417	)	 	 	6,619	 	 	 	8,082	 	 	 	(1,463	)	
Kiln-dried Lumber Sales	 	 	4,001	 	 	 	4,240	 	 	 	(239	)	 	 	10,953	 	 	 	13,239	 	 	 	(2,286	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	8,434	 	 	 	9,133	 	 	 	(699	)	 	 	24,030	 	 	 	28,861	 	 	 	(4,831	)	

 

Page 25
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2008 EARNINGS GUIDANCE AND SENSITIVITY
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	Earnings per share sensitivity to changes	
Fiscal 2008 (Diluted earnings per share guidance*)	 	 	 	 	 	from NYMEX prices used in guidance* ^	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	$1 change per MMBtu gas	 	$5 change per Bbl oil	
 	 	Range	 	Increase	 	Decrease	 	Increase	 	Decrease	
Consolidated Earnings	 	$	2.45	 	 	 	-	 	 	$	2.65	 	 	 	+ $0.09	 	 	 	- $0.09	 	 	 	+ $0.08	 	 	 	- $0.08	 	
 	 	 	 	 	 	 	 	 	
NYMEX Settlement Prices at July 24, 2007	
  	 	Natural Gas	 	Oil	
 	 	($ per MMBtu)	 	($ per Bbl)	
Oct-07	 	$	6.128	 	 	$	73.39	 	
Nov-07	 	$	7.078	 	 	$	73.25	 	
Dec-07	 	$	8.028	 	 	$	73.10	 	
Jan-08	 	$	8.468	 	 	$	72.95	 	
Feb-08	 	$	8.488	 	 	$	72.82	 	
Mar-08	 	$	8.338	 	 	$	72.70	 	
Apr-08	 	$	7.713	 	 	$	72.59	 	
May-08	 	$	7.678	 	 	$	72.48	 	
Jun-08	 	$	7.768	 	 	$	72.39	 	
Jul-08	 	$	7.866	 	 	$	72.29	 	
Aug-08	 	$	7.939	 	 	$	72.19	 	
Sep-08	 	$	7.994	 	 	$	72.09	 	
 	 	 	 	 	 	 	 	 	
Average	 	$	7.791	 	 	$	72.69	 	

*	 	Please refer to forward looking statement footnote at page 8 of this document.	
 		
^	 	This sensitivity table is current as of August 1, 2007 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. 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 NYMEX hedge contracts at their maturity.	

 

Page 26
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
 	 	 	 	 	 	 	 	 	
Quarter Ended June 30 (unaudited)	 	2007	 	 	2006	 	
Operating Revenues	 	$	463,145,000	 	 	$	415,452,000	 	

Net Income Available for Common Stock	 	$	46,798,000	 	 	$	111,000	 	

Earnings Per Common Share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.56	 	 	$	—	 	
 	 	 	 	 	 	 	
Diluted	 	$	0.55	 	 	$	—	 	

Weighted Average Common Shares:	 	 	 	 	 	 	 	 	
Used in Basic Calculation	 	 	83,483,718	 	 	 	84,013,556	 	
 	 	 	 	 	 	 	
Used in Diluted Calculation	 	 	85,668,055	 	 	 	86,016,131	 	

Nine Months Ended June 30 (unaudited)	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Operating Revenues	 	$	1,779,541,000	 	 	$	2,017,189,000	 	

Net Income Available for Common Stock	 	$	179,765,000	 	 	$	136,123,000	 	

Earnings Per Common Share:	 	 	 	 	 	 	 	 	
Basic	 	$	2.17	 	 	$	1.62	 	
 	 	 	 	 	 	 	
Diluted	 	$	2.11	 	 	$	1.58	 	

Weighted Average Common Shares:	 	 	 	 	 	 	 	 	
Used in Basic Calculation	 	 	83,018,583	 	 	 	84,231,490	 	
 	 	 	 	 	 	 	
Used in Diluted Calculation	 	 	85,192,777	 	 	 	86,150,927	 	

Twelve Months Ended June 30 (unaudited)	 	 	 	 	 	 	 	 	
Operating Revenues	 	$	2,074,010,000	 	 	$	2,304,253,000	 	

Income from Continuing Operations	 	$	181,733,000	 	 	$	154,435,000	 	
Income from Discontinued Operations, Net of Tax	 	 	—	 	 	 	30,900,000	 	
 	 	 	 	 	 	 	
Net Income Available for Common Stock	 	$	181,733,000	 	 	$	185,335,000	 	

Earnings Per Common Share:	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	
Income from Continuing Operations	 	$	2.19	 	 	$	1.83	 	
Income from Discontinued Operations	 	 	—	 	 	 	0.37	 	
 	 	 	 	 	 	 	
Net Income Available for Common Stock	 	$	2.19	 	 	$	2.20	 	

Diluted:	 	 	 	 	 	 	 	 	
Income from Continuing Operations	 	$	2.13	 	 	$	1.79	 	
Income from Discontinued Operations	 	 	—	 	 	 	0.36	 	
 	 	 	 	 	 	 	
Net Income Available for Common Stock	 	$	2.13	 	 	$	2.15	 	

Weighted Average Common Shares:	 	 	 	 	 	 	 	 	
Used in Basic Calculation	 	 	83,122,932	 	 	 	84,205,652	 	
 	 	 	 	 	 	 	
Used in Diluted Calculation	 	 	85,290,812	 	 	 	86,063,076