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): November 5, 2015

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

	
			
New Jersey	1-3880	13-1086010	
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)	

6363 Main Street, Williamsville, New York         14221
(Address of principal executive offices)        (Zip Code)

Registrant’s telephone number, including area code: (716) 857-7000

Former name or former address, if changed since last report: Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

	

□	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
□	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
□	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
□	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 
Item 2.02    Results of Operations and Financial Condition.

On November 5, 2015, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter and fiscal year ended September 30, 2015. A copy of the press release is furnished as part of this Current Report as Exhibit 99.

Neither the furnishing of the press release as an exhibit to this Current Report nor the inclusion in such press release of any reference to the Company’s internet address shall, under any circumstances, be deemed to incorporate the information available at such internet address into this Current Report. The information available at the Company’s internet address is not part of this Current Report or any other report filed or furnished by the Company with the Securities and Exchange Commission.

In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), the press release furnished as part of this Current Report as Exhibit 99 contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures prepared in accordance with GAAP.

Certain statements contained herein or in the press release furnished as part of this Current Report, including statements regarding estimated future earnings and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will” and “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There can be no assurance that the Company’s projections will in fact be achieved nor do these projections reflect any acquisitions or divestitures that may occur in the future. While the Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. Furthermore, each forward-looking statement speaks only as of the date on which it is made. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the price of natural gas or oil; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real

property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit 99	Press release furnished regarding earnings for the quarter and fiscal year ended September 30, 2015	

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: November 6, 2015

EXHIBIT INDEX

	

	 	
Exhibit Number
	Description
	
99	Press release furnished regarding earnings for the quarter and fiscal year ended September 30, 2015	

Exhibit 99

	

 	 	6363 Main Street/Williamsville, NY 14221	
 	 	 	
Release Date:	Immediate November 5, 2015	Brian M. Welsch
Investor Relations
716-857-7875	
 	 	 	
 	 	David P. Bauer
Treasurer
716-857-7318	

NATIONAL FUEL REPORTS 2015 EARNINGS

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the fourth quarter and fiscal year ended September 30, 2015.

National Fuel had a consolidated loss for the quarter ended September 30, 2015, of $187.7 million, or $2.22 per share, compared to the prior year’s fourth quarter earnings of $57.4 million, or $0.68 per share, a decrease of $245.1 million, or $2.90 per share. The decrease is largely due to a $240.8 million non-cash charge to writedown the value of Seneca Resources Corporation’s (“Seneca”) oil and natural gas reserves. Consolidated earnings for the fourth quarter, exclusive of Seneca’s writedown and other items impacting comparability (“Operating Results”), were $34.9 million, or $0.41 per share, compared to $50.4 million, or $0.59 per share, in the prior year’s fourth quarter. (Note: All references to earnings per share are to diluted earnings per share, and all amounts used in the discussion of earnings are after tax unless otherwise noted.)

For the fiscal year ended September 30, 2015, National Fuel had a consolidated loss of $379.4 million, or $4.50 per share, compared to earnings of $299.4 million, or $3.52 per share, from the prior year. The decrease is largely due to $650.2 million of non-cash charges to write down the value of Seneca’s oil and natural gas reserves. Excluding Seneca’s writedown and the other items impacting comparability, Operating Results for the fiscal year were $252.5 million, or $2.97 per share, compared to $291.8 million, or $3.43 per share, in the prior fiscal year.

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OPERATING RESULTS

	
																	
 	 	Three Months Ended	 	Fiscal Year Ended	
 	 	September 30,	 	September 30,	
 	 	2015	 	2014	 	2015	 	2014	
(in thousands except per share amounts)	 	 	 	 	 	 	 	 	
Reported GAAP earnings (loss)	 	$	(187,703	)	 	$	57,431		 	$	(379,427	)	 	$	299,413		
Items impacting comparability 1 :	 	 	 	 	 	 	 	 	
Impairment of oil and gas properties	 	240,837		 	 	 	650,160		 	 	
Deferred income tax adjustments	 	(13,206	)	 	(7,000	)	 	(13,206	)	 	(4,000	)	
Reversal of stock-based compensation	 	(5,054	)	 	 	 	(5,054	)	 	 	
Gain on life insurance policies	 	 	 	 	 	 	 	(3,635	)	
 	 	 	 	 	 	 	 	 	
Operating Results	 	$	34,874		 	$	50,431		 	$	252,473		 	$	291,778		
 	 	 	 	 	 	 	 	 	
Reported GAAP earnings (loss) per share	 	$	(2.22	)	 	$	0.68		 	$	(4.50	)	 	$	3.52		
Items impacting comparability 1 :	 	 	 	 	 	 	 	 	
Impairment of oil and gas properties	 	2.83		 	 	 	7.64		 	 	
Deferred income tax adjustments	 	(0.15	)	 	(0.08	)	 	(0.15	)	 	(0.05	)	
Reversal of stock-based compensation	 	(0.06	)	 	 	 	(0.06	)	 	 	
Gain on life insurance policies	 	 	 	 	 	 	 	(0.04	)	
EPS impact of dilutive shares	 	0.01		 	 	 	0.04		 	 	
Rounding	 	 	 	(0.01	)	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Operating Results	 	$	0.41		 	$	0.59		 	$	2.97		 	$	3.43		

1     See discussion of the individual items impacting comparability in segment earnings below.

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “The continuation of low oil and natural gas commodity prices required us to write down the balance sheet value of our 2.3 trillion cubic feet equivalent of oil and natural gas reserves. This large adjustment distracts from an otherwise solid quarter and fiscal year of operations across all our segments.

“We continued to grow our midstream business, where three more interstate pipeline projects are going into service in November, and we’ve expanded our gathering pipelines to reach new production locations being developed by Seneca.

“Seneca continues to drive down its drilling and completion costs in its development program and maintain a constant focus on seeking markets for its production.

“Customers of our downstream utility and energy marketing segments continue to benefit from the low prices we are experiencing during this low point in the commodity price cycle.

“Our integrated business model and balance among operations across the natural gas value chain allow us to maintain our operations with a longer term view. We have a strong

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base of assets, a large base of reserves, and the financial strength that will allow us to continue to achieve meaningful growth.”

OPERATIONS UPDATE

Seneca's total fourth quarter fiscal 2015 production was 37.6 billion cubic feet equivalent ("Bcfe"), a decrease of 8.3 Bcfe, or 18 percent, from the prior fiscal year's fourth quarter, and an increase of 1.4 Bcfe, or 4 percent, versus the third quarter of fiscal 2015. Natural gas and crude oil production for the quarter was 33.0 billion cubic feet (“Bcf”) and 778 thousand barrels ("Bbls"), respectively. As a result of persistently low local spot prices in the Appalachian basin, Seneca voluntarily curtailed approximately 13.0 Bcf of natural gas production during the quarter. Absent price-related curtailments, Seneca's fourth quarter fiscal 2015 natural gas production would have been approximately 46.0 Bcf, or nearly 500 million cubic feet ("MMcf") per day.

During fiscal year 2015, Seneca replaced 373 percent of production to reach a total of 2.344 trillion cubic feet equivalent (“Tcfe”) of proved crude oil and natural gas reserves as of September 30, 2015. Seneca’s continued success through the drill bit in the Marcellus and Utica shales led to a 459 Bcf, or 27 percent increase in natural gas reserves, which totaled 2.142 Tcf at fiscal year end. Crude oil reserves, which decreased by 12 percent largely due to production, totaled 33.7 million Bbls at September 30, 2015. Consolidated finding and development costs for the year were $0.96 per thousand cubic feet equivalent (“Mcfe”), down from fiscal 2014’s $1.15 per Mcfe. In the Marcellus Shale, Seneca's finding and development costs in fiscal 2015 were $0.79 per Mcf, down from $1.00 per Mcf in fiscal 2014.

Seneca's average realized natural gas price, after the impact of hedging, for the fourth quarter was $3.35 per Mcf, reflecting $1.11 per Mcf of uplift from financial hedges settled during the quarter. Seneca continued to strengthen and protect its future cash flows during the fourth quarter, adding approximately 6 Bcf of fixed-price physical natural gas sales and 156 thousand barrels ("MBbl") of NYMEX oil swaps to its hedge book for fiscal 2016. Seneca's fiscal 2016 natural gas production is now 67 percent hedged at the midpoint of production guidance, with 119.9 Bcf of gas production locked-in at an average net realized price of $3.45 per Mcf. In California, Seneca's fiscal 2016 oil production is now 48 percent hedged at an average hedge price of $88.24 per Bbl.

As of November 1, 2015, National Fuel's Pipeline and Storage segment had placed the Westside Expansion & Modernization and Tuscarora Lateral projects into service. The Westside Expansion & Modernization project along National Fuel Gas Supply Corporation's Line N corridor was built on budget at a total capital cost of $86 million and will transport 175,000 Dth per day of natural gas for producers, including Seneca. The Tuscarora Lateral, a project designed to sell storage services for the first time to utility customers along National Fuel's Empire Pipeline, also came in on budget at a capital cost of $58.5 million and added an incremental 49,000 Dth per day of transportation capacity. Combined, these two projects will generate approximately $20 million in incremental annual demand revenues.

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National Fuel is also nearing completion of compression facilities for the Northern Access 2015 expansion project, a joint project with Tennessee Gas Pipeline's Niagara Expansion. The Northern Access 2015 project provides capacity to transport 140,000 Dth per day of Seneca's WDA production from a TGP interconnect with National Fuel's Clermont Gathering System to the Canadian border at Niagara. National Fuel began service on 40,000 Dth per day of capacity on November 1, 2015, and expects the remaining 100,000 Dth per day to go in-service by December 1, 2015. At an estimated capital cost of $67.5 million, Northern Access 2015 will generate approximately $13 million in annual demand revenues for National Fuel's Pipeline and Storage segment.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form at pages 11 through 14 of this report. It may be helpful to refer to those tables while reviewing this discussion.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania and California.

The Exploration and Production segment’s loss in the fourth quarter of fiscal 2015 of $207.0 million, or $2.45 per share, compares to earnings of $33.7 million, or $0.40 per share, in the prior year’s fourth quarter, a decrease of $240.7 million or $2.85 per share. The decrease was mainly due to a non-cash charge of $240.8 million to write down the value of Seneca’s oil and natural gas reserves.

Seneca uses the full cost method of accounting for determining the book value of its oil and natural gas properties. This accounting method requires that Seneca perform a quarterly “ceiling test” to compare the present value of future revenues from its oil and natural gas reserves based on an unweighted arithmetic average of the first day of the month oil and gas prices for each month within the 12-month period prior to the end of the reporting period (“the ceiling”) with the book value of those reserves at the balance sheet date. If the book value of the reserves exceeds the ceiling, a non-cash impairment charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling. Unless oil and gas prices improve significantly, Seneca expects one or more additional impairment charges for the fiscal year ending September 30, 2016.

In the fourth quarter of both fiscal 2015 and 2014, Seneca reduced its deferred income tax liability $13.2 million and $7.0 million, respectively. The adjustment was largely due to an anticipated increase in firm transportation of natural gas to Canadian delivery points, which decreased the effective tax rate used in the calculation of deferred tax expense. Also, as a result of the Company’s net loss in fiscal 2015, Seneca reversed $1.8 million of long-term, performance-based executive stock compensation in the current year’s fourth quarter.

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Excluding these items, Operating Results in the Exploration and Production segment in the current year’s fourth quarter were $18.8 million, or $0.22 per share, compared to $26.7 million, or $0.31 per share, in the prior year’s fourth quarter, a decrease of $7.9 million or $0.09 per share. The decrease in Operating Results is mainly due to lower natural gas production and lower crude oil prices. The weighted average crude oil price received by Seneca (after hedging) for the quarter ended September 30, 2015, was $66.40 per barrel (“Bbl”), a decrease of $27.30 per Bbl compared to the prior year’s fourth quarter. Higher natural gas prices realized after hedging increased operating results. The weighted average natural gas price realized after hedging for the quarter ended September 30, 2015, was $3.35 per thousand cubic feet ("Mcf"), an increase of $0.16 per Mcf compared to the prior year’s fourth quarter. That increase was largely the result of the decrease in spot volumes quarter over quarter. In the fourth quarter of fiscal 2014, Seneca had 9.1 Bcf of spot volumes that were sold at an average price of $2.39 per Mcf. Seneca did not have any spot volumes during the fourth quarter of fiscal 2015.

Overall production of natural gas and crude oil for the current quarter of 37.6 Bcfe decreased approximately 8.3 Bcfe, compared to the prior year’s fourth quarter. The decrease in production was from Seneca’s Appalachia properties and was largely due to approximately 13.0 Bcfe of voluntary pricing related curtailments in the current year’s fourth quarter. California production of 5.4 Bcfe was consistent with the prior year’s fourth quarter.

On a per unit basis, quarterly depletion expense of $1.23 per Mcfe decreased $0.53 per Mcfe due to higher natural gas reserve balances at September 30, 2015, and the ceiling test impairment charges recorded in the current year’s second and third quarters. On a per unit basis, lease operating and transportation expenses (“LOE”) at $1.07 per Mcfe increased $0.05 per Mcfe compared to the prior year’s fourth quarter largely due to the pricing related curtailments discussed above (which increased the relative proportion of higher cost California oil production to the total), and higher transportation costs in Appalachia. Lower overall production, due to curtailments, also caused per unit general and administrative expenses (“G&A”) to increase by $0.07 to $0.41 per Mcfe.

The Exploration and Production segment’s loss for the fiscal year ended September 30, 2015, of $557.0 million, or $6.60 per share, compares to earnings of $121.6 million, or $1.43 per share, in the prior fiscal year, a decrease of $678.6 million or $8.03 per share. The decrease was mainly due to non-cash charges totaling $650.2 million recorded in the current fiscal year to write down the value of Seneca’s oil and natural gas reserves.

In addition to the ceiling test charges, other items impacted the comparability of fiscal 2015 and 2014 results. Seneca reduced its deferred tax liability by a total of $13.2 million in fiscal 2015, and adjusted G&A for the year by $1.8 million as described above. The net adjustment to reduce deferred taxes in 2014 was $4.0 million. Excluding these items from the respective fiscal years, Operating Results in the Exploration and Production segment were $78.2 million, or $0.92 per share, compared to $117.6 million, or $1.38 per share in the prior year, a decrease of $39.4 million or $0.46 per share. The decrease in Operating Results is mainly due to lower commodity prices realized after hedging. The weighted average natural gas price received by Seneca (after hedging) for the fiscal year ended

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September 30, 2015, was $3.38 per Mcf, a decrease of $0.18 per Mcf compared to the prior year. The weighted average crude oil price realized after hedging for the current fiscal year was $70.36 per Bbl, a decrease of $25.19 per Bbl compared to the prior year.

Overall production of natural gas and crude oil for the fiscal year ended September 30, 2015, of 157.8 Bcfe decreased approximately 2.8 Bcfe compared to the prior year, due to pricing related curtailments in Appalachia in the current year.

On a per unit basis for the fiscal year ended September 30, 2015, depletion expense of $1.52 per Mcfe decreased $0.33 per Mcfe due to higher natural gas reserve balances at September 30, 2015, and the ceiling test impairment charges recorded in the current year’s second and third quarters. On a per unit basis, LOE at $1.06 per Mcfe increased $0.03 per Mcfe and G&A at $0.42 per Mcfe increased $0.02 per Mcfe. The per unit increases in LOE and G&A are due to the reasons noted above for the quarter.

Midstream Businesses

Pipeline and Storage Segment

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

As a result of the ongoing pricing basis differentials in the Appalachian region, the Pipeline and Storage segment continues to see increased demand for transportation services from producers and marketers to move natural gas supplies to higher priced markets.

The Pipeline and Storage segment’s earnings of $18.5 million, or $0.22 per share, for the quarter ended September 30, 2015, decreased $0.6 million, or less than $0.01 per share when compared with the same period in the prior fiscal year. In the fourth quarter, Supply and Empire reversed a combined $1.2 million of long-term, performance-based executive stock compensation. Excluding this item, Operating Results in the Pipeline and Storage segment of $17.3 million, or $0.20 per share, decreased $1.9 million, or $0.02 per share. Higher transportation revenues from the Mercer Expansion project, which was placed in service in the current year’s first quarter were more than offset by higher operation and maintenance expense as well as increased interest expense related to an incremental long-term debt issuance in the quarter ended June 30, 2015.

The Pipeline and Storage segment’s earnings of $80.4 million, or $0.95 per share, for the fiscal year ended September 30, 2015, increased $2.8 million, or $0.04 per share, when compared with the same period in the prior fiscal year. Excluding the $1.2 million reversal mentioned above, Operating Results in the Pipeline and Storage segment were $79.1 million, or $0.93 per share, an increase of $1.6 million or $0.02 per share for the fiscal year. The increase in earnings is due to higher non-affiliated revenues from the Mercer Expansion project and higher transportation revenues from additional new short-term firm

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transportation contracts on both the Supply Corporation and Empire systems. Earnings also benefited from a higher allowance for funds used during construction (AFUDC) associated with various pipeline expansion projects. Earnings were reduced by higher operation and maintenance expense, higher depreciation expense and higher property taxes due to the completion of various expansion projects, as well as increased interest expense related to an incremental long-term debt issuance in the quarter ended June 30, 2015.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Corporation’s (“Midstream”) subsidiary limited liability companies. The Gathering segment constructs, owns and operates natural gas pipeline gathering facilities in the Appalachian region and currently provides the gathering infrastructure for transporting Seneca’s Marcellus Shale production to the interstate pipeline system.
    
The Gathering segment’s earnings of $7.6 million, or $0.09 per share, for the quarter ended September 30, 2015, decreased $2.9 million, or $0.03 per share, when compared with the same period in the prior fiscal year. The decrease in earnings is primarily due to lower gathering revenues resulting from Seneca’s lower production volumes in Appalachia compared to the prior year’s fourth quarter.

The Gathering segment’s earnings of $31.8 million, or $0.38 per share, for the fiscal years ended September 30, 2015 compares to earnings of $32.7 million, or $0.39 per share, in the prior fiscal year. The decrease in earnings is mainly due to higher depreciation, operating expenses and income taxes. Higher gathering revenues, mostly due to a change in the mix of Seneca’s production among Midstream's three major gathering systems and a 0.9 Bcf increase in gathered volumes, largely offset the higher expenses in the current fiscal year.

Downstream Businesses

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 loss of $3.3 million, or $0.04 per share, for the quarter ended September 30, 2015, compared to a loss of $0.5 million, or $0.01 per share, in the prior year’s fourth quarter. In the fourth quarter of fiscal 2015, Distribution reversed $1.1 million of long-term, performance-based executive stock compensation. Excluding this item, Operating Results in the Utility segment, a loss of $4.4 million, or $0.05 per share, compares to a loss of $0.5 million, or $0.01 per share. The increased loss is mainly due to higher pension and other operation and maintenance expense.

The Utility segment’s earnings of $63.3 million, or $0.75 per share, for the fiscal year ended September 30, 2015, decreased $0.8 million, or less than $0.01 per share, when compared with the prior year. Excluding the $1.1 million reversal noted above, Operating

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Results in the Utility segment of $62.2 million, or $0.73 per share, decreased $1.9 million or $0.02 per share, The decrease in earnings was due to higher depreciation expense, higher pension expense and other operation and maintenance expense mainly associated with the replacement of Distribution’s customer billing system. The impact of regulatory true-up adjustments and higher capacity release revenues partially offset the higher expenses.

Energy Marketing Segment

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

The Energy Marketing segment’s earnings for the quarter ended September 30, 2015, of $0.03 million compared to earnings of $0.7 million in the prior year’s fourth quarter. The decrease in earnings was due to lower margins. Earnings for the fiscal year ended September 30, 2015, of $7.8 million, or $0.09 per share, increased $1.1 million, or $0.01 per share, compared to the prior year primarily due to higher per unit margins, which benefited from the weak pricing basis in the Northeast.

Corporate and All Other

The Corporate and All Other category primarily includes corporate operations. The category also includes the remaining operations of Seneca’s Northeast division that markets high quality hardwoods from Appalachian land holdings.

The Corporate and All Other category loss of $3.5 million in the quarter ended September 30, 2015, compares to a loss of $6.0 million in the prior year’s fourth quarter. In the fourth quarter, the Corporate and All Other category reversed $0.9 million of long-term, performance-based executive stock compensation. Excluding this item, Operating Results in the Corporate and All category, a loss or $4.4 million compares to a loss of $6.0 million in the prior year’s fourth quarter. The decreased loss is due to lower income tax expense.

The Corporate and All Other category loss of $5.7 million in the fiscal year ended September 30, 2015, compares to a loss of $3.1 million in the prior year. The comparability of the fiscal year results is impacted by a $3.6 million gain recognized on corporate-owned executive life insurance policies recorded in the prior year’s second quarter and the $0.9 million reversal noted above. Excluding these items, Operating Results for the fiscal year ended September 30, 2015, a loss of $6.6 million is largely unchanged from a loss of $6.7 million in the prior year.

EARNINGS GUIDANCE

The Company is updating its earnings guidance for fiscal 2016 to a range of $2.85 to $3.15 per share (exclusive of any ceiling test impairment charges) at the midpoint a $0.15 per share decrease from the Company’s previous guidance of $3.00 to $3.30. That decrease

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is attributable to a reduction in Seneca’s commodity price assumptions. For fiscal 2016, NYMEX natural gas prices are now assumed to average $2.75 per MMBtu, down $0.50 from the previous forecast. NYMEX crude oil prices are now assumed to average $50.00 per Bbl, down $5.00 from the previous forecast.

Seneca’s forecast oil and gas production for fiscal 2016 is now a range of 161 to 232 Bcfe (previous range was 158 to 232 Bcfe).

While the Company currently expects one or more ceiling test impairment charges in fiscal 2016, the amount of these charges is not reasonably determinable at this time. The amount of any ceiling test charge is determined at the end of the applicable quarter and will depend on many factors, including additions to or subtractions from proved reserves, fluctuations in oil and gas prices, and income tax effects related to the differences between the book and tax basis of the Company’s oil and gas properties. Some or all of these factors are likely to be significant. Because the amount of the expected ceiling test impairment charges is not reasonably determinable at this time, the Company is unable to provide earnings guidance other than on a non-GAAP basis that excludes those charges.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 6, 2015, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-877-280-4960, using passcode “33941524.” For those unable to listen to the live conference call, a replay will be available at approximately 3 p.m. Eastern Time at the same website link and by phone at (toll-free) 1-888-286-8010, using passcode “17759908.” Both the webcast and telephonic replay will be available until the close of business on Friday, November 13, 2015.

National Fuel is an integrated energy company reporting financial results for five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.

	

 	 	 	
Analyst Contact:	Brian M. Welsch	716-857-7875	
Media Contact:	Karen L. Merkel	716-857-7654	

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, 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

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Page 10.

that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the price of natural gas or oil; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

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Page 11.

 

	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS	
QUARTER ENDED SEPTEMBER 30, 2015	
(Unaudited)	

 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
(Thousands of Dollars)	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fourth quarter 2014 GAAP earnings	$	33,661		 	$	19,115		 	$	10,521		 	$	(527	)	 	$	661		 	$	(6,000	)	 	$	57,431		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deferred state income tax adjustment	(7,000	)	 	 	 	 	 	 	 	 	 	 	 	(7,000	)	
Fourth quarter 2014 operating results	26,661		 	19,115		 	10,521		 	(527	)	 	661		 	(6,000	)	 	50,431		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) crude oil prices	(13,808	)	 	 	 	 	 	 	 	 	 	 	 	(13,808	)	
Higher (lower) natural gas prices	3,328		 	 	 	 	 	 	 	 	 	 	 	3,328		
Higher (lower) natural gas production	(17,218	)	 	 	 	 	 	 	 	 	 	 	 	(17,218	)	
Higher (lower) crude oil production	(230	)	 	 	 	 	 	 	 	 	 	 	 	(230	)	
Derivative mark to market adjustments	(1,929	)	 	 	 	 	 	 	 	 	 	 	 	(1,929	)	
Lower (higher) lease operating and transportation expenses	4,223		 	 	 	 	 	 	 	 	 	 	 	4,223		
Lower (higher) depreciation / depletion	22,589		 	 	 	(520	)	 	(348	)	 	 	 	 	 	21,721		
 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) transportation and storage service revenues	 	 	1,420		 	 	 	 	 	 	 	 	 	1,420		
Higher (lower) gathering and processing revenues	 	 	 	 	(1,944	)	 	 	 	 	 	 	 	(1,944	)	
Lower (higher) operating expenses	(1,323	)	 	(3,352	)	 	 	 	(4,624	)	 	 	 	(251	)	 	(9,550	)	
 	 	 	 	 	 	 	 	 	 	 	 	 		
Regulatory true-up adjustments	 	 	 	 	 	 	2,101		 	 	 	 	 	2,101		
Warmer weather	 	 	 	 	 	 	(1,006	)	 	 	 	 	 	(1,006	)	
 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) margins	 	 	 	 	 	 	 	 	(487	)	 	 	 	(487	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) AFUDC**	 	 	1,012		 	 	 	 	 	 	 	 	 	1,012		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) interest expense	(2,335	)	 	(865	)	 	(590	)	 	 	 	 	 	 	 	(3,790	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) income tax expense / effective tax rate	(1,336	)	 	 	 	 	 	 	 	 	 	2,167		 	831		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	191		 	(80	)	 	127		 	21		 	(140	)	 	(350	)	 	(231	)	
Fourth quarter 2015 operating results	18,813			17,250			7,594			(4,383	)		34			(4,434	)		34,874		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment of oil and gas producing properties	(240,837	)	 	 	 	 	 	 	 	 	 	 	 	(240,837	)	
Deferred income tax adjustments	13,206		 	 	 	 	 	 	 	 	 	 	 	13,206		
Reversal of stock-based compensation	1,799		 	1,235		 	—		 	1,095		 	—		 	925		 	5,054		
Fourth quarter 2015 GAAP earnings	$	(207,019	)	 	$	18,485		 	$	7,594		 	$	(3,288	)	 	$	34		 	$	(3,509	)	 	$	(187,703	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	
** AFUDC = Allowance for Funds Used During Construction	 	 	 	 	 	 	 	 	 	 	 	 	

Page 12.

	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE	
QUARTER ENDED SEPTEMBER 30, 2015	
(Unaudited)	

 	 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
 	 	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fourth quarter 2014 GAAP earnings	 	$	0.40		 	$	0.22		 	$	0.12		 	$	(0.01	)	 	$	0.01		 	$	(0.06	)	 	$	0.68		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deferred state income tax adjustment	 	(0.08	)	 	 	 	 	 	 	 	 	 	 	 	(0.08	)	
Rounding	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	
Fourth quarter 2014 operating results	 	0.31		 	0.22		 	0.12		 	(0.01	)	 	0.01		 	(0.06	)	 	0.59		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) crude oil prices	 	(0.16	)	 	 	 	 	 	 	 	 	 	 	 	(0.16	)	
Higher (lower) natural gas prices	 	0.04		 	 	 	 	 	 	 	 	 	 	 	0.04		
Higher (lower) natural gas production	 	(0.20	)	 	 	 	 	 	 	 	 	 	 	 	(0.20	)	
Higher (lower) crude oil production	 	—		 	 	 	 	 	 	 	 	 	 	 	—		
Derivative mark to market adjustments	 	(0.02	)	 	 	 	 	 	 	 	 	 	 	 	(0.02	)	
Lower (higher) lease operating and transportation expenses	 	0.05		 	 	 	 	 	 	 	 	 	 	 	0.05		
Lower (higher) depreciation / depletion	 	0.27		 	 	 	(0.01	)	 	—		 	 	 	 	 	0.26		
 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) transportation and storage service revenues	 	 	 	0.02		 	 	 	 	 	 	 	 	 	0.02		
Higher (lower) gathering and processing revenues	 	 	 	 	 	(0.02	)	 	 	 	 	 	 	 	(0.02	)	
Lower (higher) operating expenses	 	(0.02	)	 	(0.04	)	 	 	 	(0.05	)	 	 	 	—		 	(0.11	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Regulatory true-up adjustments	 	 	 	 	 	 	 	0.02		 	 	 	 	 	0.02		
Warmer weather	 	 	 	 	 	 	 	(0.01	)	 	 	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) margins	 	 	 	 	 	 	 	 	 	(0.01	)	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) AFUDC**	 	 	 	0.01		 	 	 	 	 	 	 	 	 	0.01		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) interest expense	 	(0.03	)	 	(0.01	)	 	(0.01	)	 	 	 	 	 	 	 	(0.05	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) income tax expense / effective tax rate	 	(0.02	)										0.03			0.01		
 	 	 	 	 	 	 	 	 	 	 	 	 	 		
All other / rounding	 	—		 	—		 	0.01		 	—		 	—		 	(0.02	)	 	(0.01	)	
Fourth quarter 2015 operating results	 	0.22		 	0.20		 	0.09		 	(0.05	)	 	—		 	(0.05	)	 	0.41		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment of oil and gas producing properties	 	(2.83	)	 	 	 	 	 	 	 	 	 	 	 	(2.83	)	
Deferred income tax adjustments	 	0.15		 	 	 	 	 	 	 	 	 	 	 	0.15		
Reversal of stock-based compensation	 	0.02		 	0.02		 	—		 	0.01		 	—		 	0.01		 	0.06		
Earnings per share impact of diluted shares	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	$	(0.01	)	
Fourth quarter 2015 GAAP earnings	 	$	(2.45	)	 	$	0.22		 	$	0.09		 	$	(0.04	)	 	$	—		 	$	(0.04	)	 	$	(2.22	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
** AFUDC = Allowance for Funds Used During Construction	 	 	 	 	 	 	 	 	 	 	 	 	

Page 13.

	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS	
TWELVE MONTHS ENDED SEPTEMBER 30, 2015	
(Unaudited)	

 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
(Thousands of Dollars)	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fiscal 2014 GAAP earnings	$	121,569		 	$	77,559		 	$	32,709		 	$	64,059		 	$	6,631		 	$	(3,114	)	 	$	299,413		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on life insurance proceeds	 	 	 	 	 	 	 	 	 	 	(3,635	)	 	(3,635	)	
Deferred state income tax adjustment	(4,000	)	 	 	 	 	 	 	 	 	 	 	 	(4,000	)	
Fiscal 2014 operating results	117,569		 	77,559		 	32,709		 	64,059		 	6,631		 	(6,749	)	 	291,778		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) crude oil prices	(49,674	)	 	 	 	 	 	 	 	 	 	 	 	(49,674	)	
Higher (lower) natural gas prices	(16,295	)	 	 	 	 	 	 	 	 	 	 	 	(16,295	)	
Higher (lower) natural gas production	(6,347	)	 	 	 	 	 	 	 	 	 	 	 	(6,347	)	
Higher (lower) crude oil production	(78	)	 	 	 	 	 	 	 	 	 	 	 	(78	)	
Derivative mark to market adjustments	2,404		 	 	 	 	 	 	 	 	 	 	 	2,404		
Insurance settlement proceeds adjustment	(1,261	)	 	 	 	 	 	 	 	 	 	 	 	(1,261	)	
Lower (higher) lease operating and transportation expenses	(1,473	)	 	 	 	 	 	 	 	 	 	 	 	(1,473	)	
Lower (higher) depreciation / depletion	36,655		 	(998	)	 	(3,063	)	 	(1,316	)	 	 	 	 	 	31,278		
 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) transportation and storage service revenues	 	 	5,114		 	 	 	 	 	 	 	 	 	5,114		
Higher (lower) gathering and processing revenues	 	 	 	 	4,288		 	 	 	 	 	 	 	4,288		
Lower (higher) operating expenses	(3,159	)	 	(3,261	)	 	(1,147	)	 	(6,938	)	 	 	 	145		 	(14,360	)	
Lower (higher) property, franchise and other taxes	 	 	(852	)	 	 	 	 	 	 	 	 	 	(852	)	
 	 	 	 	 	 	 	 	 	 	 	 	 		
Regulatory true-up adjustments	 	 	 	 	 	 	6,228		 	 	 	 	 	6,228		
Higher (lower) capacity release revenues	 	 	 	 	 	 	941		 	 	 	 	 	941		
Warmer weather	 	 	 	 	 	 	(571	)	 	 	 	 	 	(571	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) margins	 	 	 	 	 	 	 	 	1,372		 	(767	)	 	605		
 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) AFUDC**	 	 	2,473		 	 	 	 	 	 	 	 	 	2,473		
 	 	 	 	 	 	 	 	 	 	 	 	 		
Lower (higher) interest expense	(2,922	)	 	(800	)	 	 	 	 	 	 	 	 	 	(3,722	)	
 	 	 	 	 	 	 	 	 	 	 	 	 		
Lower (higher) income tax expense / effective tax rate	2,628		 		 	(1,006	)	 		 		 	1,197		 	2,819		
 	 	 	 	 	 	 	 	 	 	 	 	 		
All other / rounding	134		 	(116	)	 	68		 	(227	)	 	(237	)	 	(444	)	 	(822	)	
Fiscal 2015 operating results	78,181		 	79,119		 	31,849		 	62,176		 	7,766		 	(6,618	)	 	252,473		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment of oil and gas producing properties	(650,160	)	 	 	 	 	 	 	 	 	 	 	 	(650,160	)	
Deferred income tax adjustments	13,206		 	 	 	 	 	 	 	 	 	 	 	13,206		
Reversal of stock-based compensation	1,799		 	1,235		 	—		 	1,095		 	—		 	925		 	5,054		
Fiscal 2015 GAAP earnings	$	(556,974	)	 	$	80,354		 	$	31,849		 	$	63,271		 	$	7,766		 	$	(5,693	)	 	$	(379,427	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	
** AFUDC = Allowance for Funds Used During Construction	 	 	 	 	 	 	 	 	 	 	 	 	

Page 14.

	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE	
TWELVE MONTHS ENDED SEPTEMBER 30, 2015	
(Unaudited)	

 	 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
 	 	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fiscal 2014 GAAP earnings	 	$	1.43		 	$	0.91		 	$	0.39		 	$	0.75		 	$	0.08		 	$	(0.04	)	 	$	3.52		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on life insurance proceeds	 	 	 	 	 	 	 	 	 	 	 	(0.04	)	 	(0.04	)	
Deferred state income tax adjustment	 	(0.05	)	 	 	 	 	 	 	 	 	 	 	 	(0.05	)	
Fiscal 2014 operating results	 	1.38		 	0.91		 	0.39		 	0.75		 	0.08		 	(0.08	)	 	3.43		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of operating results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) crude oil prices	 	(0.58	)	 	 	 	 	 	 	 	 	 	 	 	(0.58	)	
Higher (lower) natural gas prices	 	(0.19	)	 	 	 	 	 	 	 	 	 	 	 	(0.19	)	
Higher (lower) natural gas production	 	(0.07	)	 	 	 	 	 	 	 	 	 	 	 	(0.07	)	
Higher (lower) crude oil production	 	—		 	 	 	 	 	 	 	 	 	 	 	—		
Derivative mark to market adjustments	 	0.03		 	 	 	 	 	 	 	 	 	 	 	0.03		
Insurance settlement proceeds adjustment	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	
Lower (higher) lease operating and transportation expenses	 	(0.02	)	 	 	 	 	 	 	 	 	 	 	 	(0.02	)	
Lower (higher) depreciation / depletion	 	0.43		 	(0.01	)	 	(0.04	)	 	(0.02	)	 	 	 	 	 	0.36		
 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Higher (lower) transportation and storage service revenues	 	 	 	0.06		 	 	 	 	 	 	 	 	 	0.06		
Higher (lower) gathering and processing revenues	 	 	 	 	 	0.05		 	 	 	 	 	 	 	0.05		
Lower (higher) operating expenses	 	(0.04	)	 	(0.04	)	 	(0.01	)	 	(0.08	)	 	 	 	—		 	(0.17	)	
Lower (higher) property, franchise and other taxes	 	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 		
Regulatory true-up adjustments	 	 	 	 	 	 	 	0.07		 	 	 	 	 	0.07		
Higher (lower) capacity release revenues	 	 	 	 	 	 	 	0.01		 	 	 	 	 	0.01		
Warmer weather	 	 	 	 	 	 	 	(0.01	)	 	 	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) margins	 	 	 	 	 	 	 	 	 	0.01		 	(0.01	)	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) AFUDC**	 	 	 	0.03		 	 	 	 	 	 	 	 	 	0.03		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) interest expense	 	(0.03	)	 	(0.01	)	 	 	 	 	 	 	 	 	 	(0.04	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) income tax expense / effective tax rate	 	0.03		 	 	 	(0.01	)	 	 	 	 	 	0.01		 	0.03		
 	 		 		 		 		 		 		 		
All other / rounding	 	(0.01	)	 	—		 	—		 	0.01		 	—		 	—		 	—		
Fiscal 2015 operating results	 	0.92		 	0.93		 	0.38		 	0.73		 	0.09		 	(0.08	)	 	2.97		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment of oil and gas producing properties	 	(7.64	)	 	 	 	 	 	 	 	 	 	 	 	(7.64	)	
Deferred income tax adjustments	 	0.15		 	 	 	 	 	 	 	 	 	 	 	0.15		
Reversal of stock-based compensation	 	0.02		 	0.02		 	—		 	0.01		 	—		 	0.01		 	0.06		
Earnings per share impact of diluted shares	 	(0.04	)	 	 	 	 	 	 	 	 	 	 	 	(0.04	)	
Rounding	 	(0.01	)	 	 	 	 	 	0.01		 	 	 	 	 	—		
Fiscal 2015 GAAP earnings	 	$	(6.60	)	 	$	0.95		 	$	0.38		 	$	0.75		 	$	0.09		 	$	(0.07	)	 	$	(4.50	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
** AFUDC = Allowance for Funds Used During Construction	 	 	 	 	 	 	 	 	 	 	 	 	

Page 15.

	

 	 	 	 	 				 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 				 	
(Thousands of Dollars, except per share amounts)	 	 	 	 				 	
 	Three Months Ended	 	Twelve Months Ended	 	
 	September 30,	 	September 30,	 	
 	(Unaudited)	 	(Unaudited)	 	
SUMMARY OF OPERATIONS	2015	 	2014	 	2015		2014	 	
Operating Revenues	$	301,062		 	$	366,623		 	$	1,760,913			$	2,113,081		 	
 	 	 	 	 						 	
Operating Expenses:	 	 	 	 						 	
Purchased Gas	5,256		 	28,833		 	349,984			605,838		 	
Operation and Maintenance	113,478		 	110,284		 	470,003			463,078		 	
Property, Franchise and Other Taxes	21,002		 	21,597		 	89,564			90,711		 	
Depreciation, Depletion and Amortization	70,860		 	103,905		 	336,158			383,781		 	
Impairment of Oil and Gas Producing Properties	417,197		 	—		 	1,126,257		 	—		 	
 	627,793		 	264,619		 	2,371,966			1,543,408		 	
 	 	 	 	 						 	
Operating Income (Loss)	(326,731	)	 	102,004		 	(611,053	)		569,673		 	
 	 	 	 	 						 	
Other Income (Expense):	 	 	 	 						 	
Interest Income	2,291		 	2,849		 	3,922			4,170		 	
Other Income	3,401		 	2,615		 	8,039			9,461		 	
Interest Expense on Long-Term Debt	(29,016	)	 	(22,427	)	 	(95,916	)		(90,194	)	 	
Other Interest Expense	(173	)	 	(623	)	 	(3,555	)		(4,083	)	 	
 	 	 	 	 						 	
Income (Loss) Before Income Taxes	(350,228	)	 	84,418		 	(698,563	)		489,027		 	
 	 	 	 	 						 	
Income Tax Expense (Benefit)	(162,525	)	 	26,987		 	(319,136	)		189,614		 	
 	 	 	 	 						 	
Net Income (Loss) Available for Common Stock	$	(187,703	)	 	$	57,431		 	$	(379,427	)		$	299,413		 	
 	 	 	 	 				 	
Earnings (Loss) Per Common Share:	 	 	 	 				 	
Basic	$	(2.22	)	 	$	0.68		 	$	(4.50	)		$	3.57		 	
Diluted	$	(2.22	)	 	$	0.68		 	$	(4.50	)		$	3.52		 	
 	 	 	 	 				 	
Weighted Average Common Shares:	 	 	 	 				 	
Used in Basic Calculation	84,570,432		 	84,126,542		 	84,387,755			83,929,989		 	
Used in Diluted Calculation	84,570,432		 	85,062,410		 	84,387,755			84,952,347		 	

Page 16.

	
								
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
CONSOLIDATED BALANCE SHEETS	
(Unaudited)	
 	 	
 	September 30,	 	September 30,	
(Thousands of Dollars)	2015	 	2014	
 	 	 	 	
ASSETS	 	 	 	
Property, Plant and Equipment		$9,261,323		 		$8,245,791		
Less - Accumulated Depreciation, Depletion and Amortization	3,929,428		 	2,502,700		
Net Property, Plant and Equipment	5,331,895		 	5,743,091		
 	 	 	 	
Current Assets:	 	 	 	
Cash and Temporary Cash Investments	113,596		 	36,886		
Hedging Collateral Deposits	11,124		 	2,734		
Receivables - Net	105,004		 	149,735		
Unbilled Revenue	20,746		 	25,663		
Gas Stored Underground	34,252		 	39,422		
Materials and Supplies - at average cost	30,414		 	27,817		
Other Current Assets	60,665		 	54,752		
Deferred Income Taxes	137,200		 	40,323		
Total Current Assets	513,001		 	377,332		
 	 	 	 	
Other Assets:	 	 	 	
Recoverable Future Taxes	168,214		 	163,485		
Unamortized Debt Expense	17,208		 	14,304		
Other Regulatory Assets	278,227		 	224,436		
Deferred Charges	15,129		 	14,212		
Other Investments	92,990		 	86,788		
Goodwill	5,476		 	5,476		
Prepaid Post-Retirement Benefit Costs	24,459		 	36,512		
Fair Value of Derivative Financial Instruments	270,363		 	72,606		
Other	168		 	1,355		
Total Other Assets	872,234		 	619,174		
Total Assets		$6,717,130		 		$6,739,597		
 	 	 	 	
CAPITALIZATION AND LIABILITIES	 	 	 	
Capitalization:	 	 	 	
Comprehensive Shareholders' Equity	 	 	 	
Common Stock, $1 Par Value Authorized - 200,000,000	 	 	 	
Shares; Issued and Outstanding - 84,594,383 Shares	 	 	 	
and 84,157,220 Shares, Respectively		$84,594		 		$84,157		
Paid in Capital	744,274		 	716,144		
Earnings Reinvested in the Business	1,103,200		 	1,614,361		
Accumulated Other Comprehensive Income (Loss)	93,372		 	(3,979	)	
Total Comprehensive Shareholders' Equity	2,025,440		 	2,410,683		
Long-Term Debt, Net of Current Portion	2,099,000		 	1,649,000		
Total Capitalization	4,124,440		 	4,059,683		
 	 	 	 	
Current and Accrued Liabilities:	 	 	 	
Notes Payable to Banks and Commercial Paper	—		 	85,600		
Current Portion of Long-Term Debt	—		 	—		
Accounts Payable	180,388		 	136,674		
Amounts Payable to Customers	56,778		 	33,745		
Dividends Payable	33,415		 	32,400		
Interest Payable on Long-Term Debt	36,200		 	29,960		
Customer Advances	16,236		 	19,005		
Customer Security Deposits	16,490		 	15,761		
Other Accruals and Current Liabilities	96,557		 	136,672		
Fair Value of Derivative Financial Instruments	10,076		 	759		
Total Current and Accrued Liabilities	446,140		 	490,576		
 	 	 	 	
Deferred Credits:	 	 	 	
Deferred Income Taxes	1,275,162		 	1,456,283		
Taxes Refundable to Customers	89,448		 	91,736		
Unamortized Investment Tax Credit	731		 	1,145		
Cost of Removal Regulatory Liability	184,907		 	173,199		
Other Regulatory Liabilities	108,617		 	81,152		
Pension and Other Post-Retirement Liabilities	202,807		 	134,202		
Asset Retirement Obligations	156,805		 	117,713		
Other Deferred Credits	128,073		 	133,908		
Total Deferred Credits	2,146,550		 	2,189,338		
Commitments and Contingencies	—		 	—		
Total Capitalization and Liabilities		$6,717,130		 		$6,739,597		

Page 17.

	

 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
CONSOLIDATED STATEMENTS OF CASH FLOWS	
(Unaudited)	
 	 	Twelve Months Ended	
 	 	September 30,	
(Thousands of Dollars)	 	2015	 	2014	
 	 	 	 	 	
Operating Activities:	 	 	 	 	
Net Income (Loss) Available for Common Stock	 	$	(379,427	)	 	$	299,413		
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:	 	 	 	 	
Impairment of Oil and Gas Producing Properties	 	1,126,257		 	—		
Depreciation, Depletion and Amortization	 	336,158		 	383,781		
Deferred Income Taxes	 	(357,587	)	 	142,415		
Excess Tax Benefits Associated with Stock-Based Compensation Awards	 	(9,064	)	 	(4,641	)	
Stock-Based Compensation	 	3,208		 	11,763		
Other	 	9,823		 	14,063		
Change in:	 	 	 	 	
Hedging Collateral Deposits	 	(8,390	)	 	(1,640	)	
Receivables and Unbilled Revenue	 	51,638		 	(22,781	)	
Gas Stored Underground and Materials and Supplies	 	3,438		 	13,285		
Unrecovered Purchased Gas Costs	 	—		 	12,408		
Other Current Assets	 	3,150		 	(3,630	)	
Accounts Payable	 	34,687		 	15,149		
Amounts Payable to Customers	 	23,033		 	20,917		
Customer Advances	 	(2,769	)	 	(2,954	)	
Customer Security Deposits	 	729		 	(422	)	
Other Accruals and Current Liabilities	 	(7,173	)	 	6,872		
Other Assets	 	1,669		 	18,513		
Other Liabilities	 	23,173		 	6,879		
Net Cash Provided by Operating Activities	 	$	852,553		 	$	909,390		
 	 	 	 	 	
Investing Activities:	 	 	 	 	
Capital Expenditures	 	$	(1,018,179	)	 	$	(914,417	)	
Other	 	(6,611	)	 	5,982		
Net Cash Used in Investing Activities	 	$	(1,024,790	)	 	$	(908,435	)	
 	 	 	 	 	
Financing Activities:	 	 	 	 	
Changes in Notes Payable to Banks and Commercial Paper	 	$	(85,600	)	 	$	85,600		
Excess Tax Benefits Associated with Stock-Based Compensation Awards	 	9,064		 	4,641		
Net Proceeds From Issuance of Long-Term Debt	 	445,662		 	—		
Dividends Paid on Common Stock	 	(130,719	)	 	(126,642	)	
Net Proceeds From Issuance of Common Stock	 	10,540		 	7,474		
Net Cash Provided by (Used) in Financing Activities	 	$	248,947		 	$	(28,927	)	
 	 	 	 	 	
Net Increase (Decrease) in Cash and Temporary Cash Investments	 	76,710		 	(27,972	)	
Cash and Temporary Cash Investments at Beginning of Period	 	36,886		 	64,858		
Cash and Temporary Cash Investments at September 30	 	$	113,596		 	$	36,886		

Page 18.

	

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

 	Three Months Ended	 	Twelve Months Ended	
(Thousands of Dollars, except per share amounts)	September 30,	 	September 30,	
EXPLORATION AND PRODUCTION SEGMENT	2015	2014	Variance	 	2015	2014	Variance	
Total Operating Revenues	$	163,851		$	209,967		$	(46,116	)	 	$	693,441		$	804,096		$	(110,655	)	
 	 	 	 	 							
Operating Expenses:	 	 	 	 							
Operation and Maintenance:	 	 	 	 							
General and Administrative Expense	15,321		15,783		(462	)	 	66,114		63,804		2,310		
Lease Operating and Transportation Expense	40,186		46,684		(6,498	)	 	167,800		165,534		2,266		
All Other Operation and Maintenance Expense	3,189		3,459		(270	)	 	14,304		14,521		(217	)	
Property, Franchise and Other Taxes	4,806		5,223		(417	)	 	20,167		20,765		(598	)	
Depreciation, Depletion and Amortization	46,277		81,031		(34,754	)	 	239,818		296,210		(56,392	)	
Impairment of Oil and Gas Producing Properties	417,197		—		417,197		 	1,126,257		—		1,126,257		
 	526,976		152,180		374,796		 	1,634,460		560,834		1,073,626		
 	 	 	 	 							
Operating Income (Loss)	(363,125	)	57,787		(420,912	)	 	(941,019	)	243,262		(1,184,281	)	
 	 	 	 	 							
Other Income (Expense):	 	 	 	 							
Interest Income	661		604		57		 	2,554		1,909		645		
Other Interest Expense	(14,176	)	(10,584	)	(3,592)		 	(46,726	)	(42,232	)	(4,494	)	
 	 	 	 	 							
Income (Loss) Before Income Taxes	(376,640	)	47,807		(424,447	)	 	(985,191	)	202,939		(1,188,130	)	
Income Tax Expense (Benefit)	(169,621	)	14,146		(183,767	)	 	(428,217	)	81,370		(509,587	)	
Net Income (Loss)	$	(207,019	)	$	33,661		$	(240,680	)	 	$	(556,974	)	$	121,569		$	(678,543	)	
 	 	 	 	 							
Net Income (Loss) Per Share (Diluted)	$	(2.45	)	$	0.40		$	(2.85	)	 	$	(6.60	)	$	1.43		$	(8.03	)	

Page 19.

	

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

 	Three Months Ended	 	Twelve Months Ended	
(Thousands of Dollars, except per share amounts)	September 30,	 	September 30,	
PIPELINE AND STORAGE SEGMENT	2015	2014	Variance	 	2015	2014	Variance	
Revenues from External Customers	$	48,573		$	47,835		$	738		 	$	203,089		$	200,664		$	2,425		
Intersegment Revenues	21,903		20,280		1,623		 	88,251		83,744		4,507		
Total Operating Revenues	70,476		68,115		2,361		 	291,340		284,408		6,932		
 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	
Purchased Gas	(32	)	596		(628	)	 	462		1,878		(1,416	)	
Operation and Maintenance	21,971		18,714		3,257		 	75,741		72,624		3,117		
Property, Franchise and Other Taxes	6,340		6,232		108		 	25,195		23,884		1,311		
Depreciation, Depletion and Amortization	9,726		9,469		257		 	38,178		36,642		1,536		
 	38,005		35,011		2,994		 	139,576		135,028		4,548		
 	 	 	 	 	 	 	 	
Operating Income	32,471		33,104		(633	)	 	151,764		149,380		2,384		
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	
Interest Income	124		96		28		 	474		284		190		
Other Income	1,999		988		1,011		 	3,887		1,423		2,464		
Other Interest Expense	(7,745	)	(6,414	)	(1,331	)	 	(27,658	)	(26,428	)	(1,230	)	
 	 	 	 	 	 	 	 	
Income Before Income Taxes	26,849		27,774		(925	)	 	128,467		124,659		3,808		
Income Tax Expense	8,364		8,659		(295	)	 	48,113		47,100		1,013		
Net Income	$	18,485		$	19,115		$	(630	)	 	$	80,354		$	77,559		$	2,795		
 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	0.22		$	0.22		$	—		 	$	0.95		$	0.91		$	0.04		

 	Three Months Ended	 	Twelve Months Ended	
 	September 30,	 	September 30,	
GATHERING SEGMENT	2015	2014	Variance	 	2015	2014	Variance	
Revenues from External Customers	$	136		$	(100	)	$	236		 	$	497		$	673		$	(176	)	
Intersegment Revenues	18,169		21,396		(3,227	)	 	76,709		69,937		6,772		
Total Operating Revenues	18,305		21,296		(2,991	)	 	77,206		70,610		6,596		
 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	
Operation and Maintenance	1,831		1,784		47		 	8,147		6,383		1,764		
Property, Franchise and Other Taxes	48		43		5		 	178		167		11		
Depreciation, Depletion and Amortization	2,804		2,004		800		 	10,829		6,116		4,713		
 	4,683		3,831		852		 	19,154		12,666		6,488		
 	 	 	 	 	 	 	 	
Operating Income	13,622		17,465		(3,843	)	 	58,052		57,944		108		
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 		 	 	 		
Interest Income	46		34		12		 	140		120		20		
Other Income	1		2		(1	)	 	5		7		(2	)	
Other Interest Expense	(1,413	)	(506	)	(907	)	 	(1,627	)	(1,726	)	99		
 	 	 	 	 	 	 	 	
Income Before Income Taxes	12,256		16,995		(4,739	)	 	56,570		56,345		225		
Income Tax Expense	4,662		6,474		(1,812	)	 	24,721		23,636		1,085		
Net Income	$	7,594		$	10,521		$	(2,927	)	 	$	31,849		$	32,709		$	(860	)	
 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	0.09		$	0.12		$	(0.03	)	 	$	0.38		$	0.39		$	(0.01	)	

Page 20.

	

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

 	Three Months Ended	 	Twelve Months Ended	
(Thousands of Dollars, except per share amounts)	September 30,	 	September 30,	
UTILITY SEGMENT	2015	2014	Variance	 	2015	2014	Variance	
Revenues from External Customers	$	70,712		$	79,295		$	(8,583	)	 	$	700,761		$	831,156		$	(130,395	)	
Intersegment Revenues	1,836		1,897		(61	)	 	15,506		18,462		(2,956	)	
Total Operating Revenues	72,548		81,192		(8,644	)	 	716,267		849,618		(133,351	)	
 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	
Purchased Gas	12,164		22,893		(10,729	)	 	307,653		446,883		(139,230	)	
Operation and Maintenance	45,899		40,628		5,271		 	200,023		193,354		6,669		
Property, Franchise and Other Taxes	9,490		9,795		(305	)	 	42,870		44,738		(1,868	)	
Depreciation, Depletion and Amortization	11,635		11,099		536		 	45,616		43,594		2,022		
 	79,188		84,415		(5,227	)	 	596,162		728,569		(132,407	)	
 	 	 	 	 	 	 	 	
Operating Income (Loss)	(6,640	)	(3,223	)	(3,417	)	 	120,105		121,049		(944	)	
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	
Interest Income	2,178		2,805		(627	)	 	2,220		3,010		(790	)	
Other Income	662		510		152		 	2,265		1,611		654		
Other Interest Expense	(7,030	)	(6,710	)	(320	)	 	(28,176	)	(27,693	)	(483	)	
 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	(10,830	)	(6,618	)	(4,212	)	 	96,414		97,977		(1,563	)	
Income Tax Expense (Benefit)	(7,542	)	(6,091	)	(1,451	)	 	33,143		33,918		(775	)	
Net Income (Loss)	$	(3,288	)	$	(527	)	$	(2,761	)	 	$	63,271		$	64,059		$	(788	)	
 	 	 	 	 	 	 	 	
Net Income (Loss) Per Share (Diluted)	$	(0.04	)	$	(0.01	)	$	(0.03	)	 	$	0.75		$	0.75		$	—		

 	Three Months Ended	 	Twelve Months Ended	
 	September 30,	 	September 30,	
ENERGY MARKETING SEGMENT	2015	2014	Variance	 	2015	2014	Variance	
Revenues from External Customers	$	17,104		$	28,658		$	(11,554	)	 	$	159,857		$	271,993		$	(112,136	)	
Intersegment Revenues	53		221		(168	)	 	849		1,159		(310	)	
Total Operating Revenues	17,157		28,879		(11,722	)	 	160,706		273,152		(112,446	)	
 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	
Purchased Gas	15,743		26,717		(10,974	)	 	142,068		256,625		(114,557	)	
Operation and Maintenance	1,583		1,526		57		 	6,386		6,176		210		
Property, Franchise and Other Taxes	7		5		2		 	15		16		(1	)	
Depreciation, Depletion and Amortization	57		51		6		 	209		197		12		
 	17,390		28,299		(10,909	)	 	148,678		263,014		(114,336	)	
 	 	 	 	 	 	 	 	
Operating Income (Loss)	(233	)	580		(813	)	 	12,028		10,138		1,890		
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	
Interest Income	54		59		(5	)	 	195		173		22		
Other Income	21		26		(5	)	 	117		112		5		
Other Interest Expense	(7	)	(8	)	1		 	(27	)	(31	)	4		
 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	(165	)	657		(822	)	 	12,313		10,392		1,921		
Income Tax Expense (Benefit)	(199	)	(4	)	(195	)	 	4,547		3,761		786		
Net Income	$	34		$	661		$	(627	)	 	$	7,766		$	6,631		$	1,135		
 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	—		$	0.01		$	(0.01	)	 	$	0.09		$	0.08		$	0.01		

Page 21.

	
																				
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	
SEGMENT OPERATING RESULTS AND STATISTICS	
(UNAUDITED)	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
(Thousands of Dollars, except per share amounts)	September 30,	 	September 30,	
ALL OTHER	2015	2014	Variance	 	2015	2014	Variance	
Total Operating Revenues	$	446		$	738		$	(292	)	 	$	2,352		$	3,532		$	(1,180	)	
Operating Expenses:	 	 	 	 	 	 	 	
Operation and Maintenance	226		223		3		 	936		1,098		(162	)	
Property, Franchise and Other Taxes	182		175		7		 	644		656		(12	)	
Depreciation, Depletion and Amortization	187		84		103		 	832		344		488		
 	595		482		113		 	2,412		2,098		314		
 	 	 	 	 	 	 	 	
Operating Income (Loss)	(149	)	256		(405	)	 	(60	)	1,434		(1,494	)	
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	
Interest Income	18		26		(8	)	 	66		106		(40	)	
Other Income	1		42		(41	)	 	5		448		(443	)	
Other Interest Expense	—		(4	)	4		 	—		(6	)	6		
 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	(130	)	320		(450	)	 	11		1,982		(1,971	)	
Income Tax Expense (Benefit)	(63	)	137		(200	)	 	13		822		(809	)	
Net Income (Loss)	$	(67	)	$	183		$	(250	)	 	$	(2	)	$	1,160		$	(1,162	)	
 	 	 	 	 	 	 	 	
Net Income (Loss) Per Share (Diluted)	$	—		$	0.01		$	(0.01	)	 	$	—		$	0.01		$	(0.01	)	

 	Three Months Ended	 	Twelve Months Ended	
 	September 30,	 	September 30,	
CORPORATE	2015	2014	Variance	 	2015	2014	Variance	
Revenues from External Customers	$	240		$	230		$	10		 	$	916		$	967		$	(51	)	
Intersegment Revenues	1,195		946		249		 	3,987		3,799		188		
Total Operating Revenues	1,435		1,176		259		 	4,903		4,766		137		
Operating Expenses:	 	 	 	 	 	 	 	
Operation and Maintenance	3,809		4,850		(1,041	)	 	15,655		17,137		(1,482	)	
Property, Franchise and Other Taxes	129		124		5		 	495		485		10		
Depreciation, Depletion and Amortization	174		167		7		 	676		678		(2	)	
 	4,112		5,141		(1,029	)	 	16,826		18,300		(1,474	)	
 	 	 	 	 	 	 	 	
Operating Loss	(2,677	)	(3,965	)	1,288		 	(11,923	)	(13,534	)	1,611		
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	
Interest Income	29,999		24,074		5,925		 	104,477		96,838		7,639		
Other Income	717		1,047		(330	)	 	1,760		5,860		(4,100	)	
Interest Expense on Long-Term Debt	(29,016	)	(22,427	)	(6,589	)	 	(95,916	)	(90,194	)	(5,722	)	
Other Interest Expense	(591	)	(1,246	)	655		 	(5,545	)	(4,237	)	(1,308	)	
 	 	 	 	 	 	 	 	
Loss Before Income Taxes	(1,568	)	(2,517	)	949		 	(7,147	)	(5,267	)	(1,880	)	
Income Tax Expense (Benefit)	1,874		3,666		(1,792	)	 	(1,456	)	(993	)	(463	)	
Net Loss	$	(3,442	)	$	(6,183	)	$	2,741		 	$	(5,691	)	$	(4,274	)	$	(1,417	)	
 	 	 	 	 	 	 	 	
Net Loss Per Share (Diluted)	$	(0.04	)	$	(0.07	)	$	0.03		 	$	(0.07	)	$	(0.05	)	$	(0.02	)	

 	Three Months Ended	 	Twelve Months Ended	
 	September 30,	 	September 30,	
INTERSEGMENT ELIMINATIONS	2015	2014	Variance	 	2015	2014	Variance	
Intersegment Revenues	$	(43,156	)	$	(44,740	)	$	1,584		 	$	(185,302	)	$	(177,101	)	$	(8,201	)	
Operating Expenses:	 	 	 	 	 	 	 	
Purchased Gas	(22,619	)	(21,373	)	(1,246	)	 	(100,199	)	(99,548	)	(651	)	
Operation and Maintenance	(20,537	)	(23,367	)	2,830		 	(85,103	)	(77,553	)	(7,550	)	
 	(43,156	)	(44,740	)	1,584		 	(185,302	)	(177,101	)	(8,201	)	
 	 	 	 	 	 	 	 	
Operating Income	—		—		—		 	—		—		—		
 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	
Interest Income	(30,789	)	(24,849	)	(5,940	)	 	(106,204	)	(98,270	)	(7,934	)	
Other Interest Expense	30,789		24,849		5,940		 	106,204		98,270		7,934		
Net Income	$	—		$	—		$	—		 	$	—		$	—		$	—		
 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	—		$	—		$	—		 	$	—		$	—		$	—		

Page 22.

	

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

 	Three Months Ended	 	Twelve Months Ended	
 	September 30,	 	September 30,	
 	(Unaudited)	 	(Unaudited)	
 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	2015	 	2014	 	(Decrease)	 	2015	 	2014	 	(Decrease)	
 	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures:	 	 	 	 	 	 	 	 	 	 	 	
Exploration and Production  	$	119,863		(1)  	$	158,340		(2)  	$	(38,477	)	 	$	557,313		(1)(2)  	$	602,705		(2)(3)  	$	(45,392	)	
Pipeline and Storage	115,528		(1)  	74,884		(2)  	40,644		 	230,192		(1)(2)  	139,821		(2)(3)  	90,371		
Gathering	30,952		(1)  	44,561		(2)  	(13,609	)	 	118,166		(1)(2)  	137,799		(2)(3)  	(19,633	)	
Utility	29,034		(1)  	27,895		(2)  	1,139		 	94,371		(1)(2)  	88,810		(2)(3)  	5,561		
Energy Marketing	4		 	71		 	(67	)	 	128		 	264		 	(136	)	
Total Reportable Segments	295,381			305,751			(10,370	)		1,000,170			969,399			30,771		
All Other	—		 	101		 	(101	)	 	—		 	274		 	(274	)	
Corporate	205		 	19		 	186		 	339		 	234		 	105		
Total Capital Expenditures	$	295,586		 	$	305,871		 	$	(10,285	)	 	$	1,000,509		 	$	969,907		 	$	30,602		

		
(1)  	Capital expenditures for the quarter and year ended September 30, 2015, include accounts payable and accrued liabilities related to capital expenditures of $46.2 million, $33.9 million, $22.4 million, and $16.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at September 30, 2015, since they represent non-cash investing activities at that date.	

(2)  	Capital expenditures for the year ended September 30, 2015, exclude capital expenditures of $80.1 million, $28.1 million, $20.1 million and $8.3 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2014 and paid during the year ended September 30, 2015. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2014, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2015.	

(3)  	Capital expenditures for the year ended September 30, 2014, exclude capital expenditures of $58.5 million, $5.6 million, $6.7 million and $10.3 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2013 and paid during the year ended September 30, 2014. These amounts were excluded from the Consolidated Statements of Cash Flows at September 30, 2013, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2014.	

	

DEGREE DAYS	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	Percent Colder	
 	 	 	 	 	 	 	(Warmer) Than:	
Three Months Ended September 30	Normal	 	2015	 	2014	 	  Normal (1)	 	Last Year (1)	
 	 	 	 	 	 	 	 	 	 	
Buffalo, NY	162	 	70	 	130	 	(56.8)	 	(46.2)	
Erie, PA	124	 	51	 	117	 	(58.9)	 	(56.4)	
 	 	 	 	 	 	 	 	 	 	
Twelve Months Ended September 30	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Buffalo, NY	6,617	 	6,968	 	7,087	 	5.3	 	(1.7)	
Erie, PA	6,147	 	6,586	 	6,742	 	7.1	 	(2.3)	

		
(1)  	Percents compare actual 2015 degree days to normal degree days and actual 2015 degree days to actual 2014 degree days.	

Page 23.

	

 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPLORATION AND PRODUCTION INFORMATION	

 	 	Three Months Ended	 	Twelve Months Ended	
 	 	September 30,	 	September 30,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2015	 	2014	 	(Decrease)	 	2015	 	2014	 	(Decrease)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gas Production/Prices:	 	 	 	 	 	 	 	 	 	 	 	 	
Production (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	32,183		 	40,456		 	(8,273	)	 	136,404		 	139,097		 	(2,693	)	
West Coast	 	785		 	808		 	(23	)	 	3,159		 	3,210		 	(51	)	
Total Production	 	32,968		 	41,264		 	(8,296	)	 	139,563		 	142,307		 	(2,744	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Prices (Per Mcf)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	$	2.21		 	$	2.84		 	$	(0.63	)	 	$	2.48		 	$	3.55		 	$	(1.07	)	
West Coast	 	3.54		 	6.42		 	(2.88	)	 	4.11		 	6.75		 	(2.64	)	
Weighted Average	 	2.24		 	2.91		 	(0.67	)	 	2.51		 	3.62		 	(1.11	)	
Weighted Average after Hedging	 	3.35		 	3.19		 	0.16		 	3.38		 	3.56		 	(0.18	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil Production/Prices:	 	 	 	 	 	 	 	 	 	 	 	 	
Production (Thousands of Barrels)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	8	 	8	 	—		 	30	 	31	 	(1)	
West Coast	 	770	 	774	 	(4)	 	3,004	 	3,005	 	(1)	
Total Production	 	778	 	782	 	(4)	 	3,034	 	3,036	 	(2)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Prices (Per Barrel)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	$	44.93		 	$	95.06		 	$	(50.13	)	 	$	57.44		 	$	96.34		 	$	(38.90	)	
West Coast	 	42.33		 	93.72		 	(51.39	)	 	51.37		 	98.25		 	(46.88	)	
Weighted Average	 	42.36		 	93.73		 	(51.37	)	 	51.43		 	98.23		 	(46.80	)	
Weighted Average after Hedging	 	66.40		 	93.70		 	(27.30	)	 	70.36		 	95.55		 	(25.19	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Production (Mmcfe)	 	37,636	 	45,956	 	(8,320)	 	157,767	 	160,523	 	(2,756)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Selected Operating Performance Statistics:	 	 	 	 	 	 	 	 	 	 	 	 	
General & Administrative Expense per Mcfe (1)	 	$	0.41		 	$	0.34		 	$	0.07		 	$	0.42		 	$	0.40		 	$	0.02		
Lease Operating and Transportation Expense per Mcfe (1)(2)	 	$	1.07		 	$	1.02		 	$	0.05		 	$	1.06		 	$	1.03		 	$	0.03		
Depreciation, Depletion & Amortization per Mcfe (1)	 	$	1.23		 	$	1.76		 	$	(0.53	)	 	$	1.52		 	$	1.85		 	$	(0.33	)	

		
(1)  	Refer to page 18 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.	

(2)  	Amounts include transportation expense of $0.52 and $0.49 per Mcfe for the three months ended September 30, 2015 and September 30, 2014, respectively. Amounts include transportation expense of $0.52 and $0.46 per Mcfe for the twelve months ended September 30, 2015 and September 30, 2014, respectively.	

Page 24.

	
								
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	
EXPLORATION AND PRODUCTION INFORMATION	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2016	
 	 	 	 	 	 	 	
 	 	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Midway Sunset (MWSS)	 	36,000		BBL	 	$	92.10 / BBL	
Brent	 	933,000		BBL	 	$	95.18 / BBL	
NYMEX	 	456,000		BBL	 	$	73.74 / BBL	
Total	 	1,425,000		BBL	 	$	88.24 / BBL	
 	 	 	 	 	 	 	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	44,350,000		MMBTU	 	$	3.94 / MMBTU	
Dominion Transmission Appalachian (DOM)	 	18,840,000		MMBTU	 	$	3.78 / MMBTU	
Michigan Consolidated City Gate (Mich Con)	 	9,000,000		MMBTU	 	$	4.10 / MMBTU	
   Dawn Ontario (DAWN)	 	9,990,000		MMBTU	 	$	3.92 / MMBTU	
Fixed Price Physical Sales	 	42,680,000		MMBTU	 	$	3.17 / MMBTU	
Total	 	124,860,000		MMBTU	 	$	3.66 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2017	 	 	 	 	 	 	
 	 	 	 	 	 	 	
 	 	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Brent	 	384,000		BBL	 	$	92.30 / BBL	
NYMEX	 	312,000		BBL	 	$	54.20 / BBL	
Total	 	696,000		BBL	 	$	75.22 / BBL	
 	 	 	 	 	 	 	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	29,530,000		MMBTU	 	$	4.20 / MMBTU	
DOM	 	12,720,000		MMBTU	 	$	3.87 / MMBTU	
Mich Con	 	3,000,000		MMBTU	 	$	4.10 / MMBTU	
DAWN	 	19,100,000		MMBTU	 	$	3.70 / MMBTU	
Fixed Price Physical Sales	 	31,010,000		MMBTU	 	$	3.48 / MMBTU	
Total	 	95,360,000		MMBTU	 	$	3.82 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2018	 	 	 	 	 	 	
 	 	 	 	 	 	 	
 	 	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Brent	 	75,000		BBL	 	$	91.00 / BBL	
 	 	 	 	 	 	 	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	20,350,000		MMBTU	 	$	3.62 / MMBTU	
DAWN	 	1,800,000		MMBTU	 	$	3.40 / MMBTU	
Fixed Price Physical Sales	 	8,850,000		MMBTU	 	$	3.34 / MMBTU	
Total	 	31,000,000		MMBTU	 	$	3.53 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2019	 	 	 	 	 	 	
 	 	 	 	 	 	 	
 	 	Volume	 	 	Average Hedge Price	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	11,400,000		MMBTU	 	$	3.39 / MMBTU	
Fixed Price Physical Sales	 	7,300,000		MMBTU	 	$	3.25 / MMBTU	
Total	 	18,700,000		MMBTU	 	$	3.33 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2020	 	 	 	 	 	 	
 	 	 	 	 	 	 	
 	 	Volume	 	 	Average Hedge Price	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	2,000,000		MMBTU	 	$	3.49 / MMBTU	
Fixed Price Physical Sales	 	3,660,000		MMBTU	 	$	3.25 / MMBTU	
Total	 	5,660,000		MMBTU	 	$	3.33 / MMBTU	

Page 25.

	

 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	
EXPLORATION AND PRODUCTION INFORMATION	
 	 	 	 	 	 	
Gross Wells in Process of Drilling	 	 	 	 	 	
Twelve Months Ended September 30, 2015	 	 	 	 	 	
 	 	 	 	 	Total	
 	East	 	West	 	Company	
Wells in Process - Beginning of Period	 	 	 	 	 	
Exploratory	3.000	(1)  	0.000	 	3.000	
Developmental	77.000	(1)  	2.000	 	79.000	
Wells Commenced	 	 	 	 		
Exploratory	0.000	 	0.000	 	0.000	
Developmental	74.000	 	44.000	 	118.000	
Wells Completed	 	 	 	 		
Exploratory	3.000	 	0.000	 	3.000	
Developmental	49.000	 	45.000	 	94.000	
Wells Plugged & Abandoned	 	 	 	 		
Exploratory	0.000	 	0.000	 	0.000	
Developmental	2.000	 	1.000	 	3.000	
Wells in Process - End of Period	 	 	 	 	 	
Exploratory	0.000	 	0.000	 	0.000	
Developmental	100.000	 	0.000	 	100.000	

(1) Gross exploratory wells were increased by 2 and developmental wells were decreased by 2.

	

 	 	 	 	 	 	
Net Wells in Process of Drilling	 	 	 	 	 	
Twelve Months Ended September 30, 2015	 	 	 	 	 	
 	 	 	 	 	Total	
 	East	 	West	 	Company	
Wells in Process - Beginning of Period	 	 	 	 	 	
Exploratory	3.000	(1)  	0.000	 	3.000	
Developmental	62.500	(1)  	2.000	 	64.500	
Wells Commenced	 	 	 	 		
Exploratory	0.000	 	0.000	 	0.000	
Developmental	74.000	 	44.000	 	118.000	
Wells Completed	 	 	 	 		
Exploratory	3.000	 	0.000	 	3.000	
Developmental	49.000	 	45.000	 	94.000	
Wells Plugged & Abandoned	 	 	 	 		
Exploratory	0.000	 	0.000	 	0.000	
Developmental	2.000	 	1.000	 	3.000	
Wells in Process - End of Period	 	 	 	 		
Exploratory	0.000		0.000	 	0.000	
Developmental	85.500		0.000	 	85.500	

(1) Net exploratory wells were increased by 2 and developmental wells were decreased by 2.

	

 	 	 	

	

Page 26.

	

 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	
EXPLORATION AND PRODUCTION INFORMATION	
 	 	 	 	 	
Reserve Quantity Information	
(Unaudited)	

 	 	Gas MMcf	
 	 	U.S.	
 	 	Appalachian	West Coast	Total	
 	 	Region	Region	Company	
Proved Developed and Undeveloped Reserves:	 	 	 	 	
September 30, 2014	 	1,624,062		58,822		1,682,884		
Extensions and Discoveries	 	633,360		—		633,360		
Revisions of Previous Estimates	 	(28,124	)	(6,317	)	(34,441	)	
Production	 	(136,404	)	(3,159	)	(139,563	)	
Sales of Minerals in Place	 	(112	)	—		(112	)	
September 30, 2015	 	2,092,782		49,346		2,142,128		
 	 	 	 	 	
Proved Developed Reserves:	 	 	 	 	
 	 	 	 	 	
September 30, 2014	 	1,119,901		57,907		1,177,808		
September 30, 2015	 	1,267,498		49,346		1,316,844		

 	 	Oil Mbbl	
 	 	U.S.	
 	 	Appalachian	West Coast	Total	
 	 	Region	Region	Company	
Proved Developed and Undeveloped Reserves:	 	 	 	 	
September 30, 2014	 	253		38,224		38,477		
Extensions and Discoveries	 	—		533		533		
Revisions of Previous Estimates	 	(3	)	(2,251	)	(2,254	)	
Production	 	(30	)	(3,004	)	(3,034	)	
September 30, 2015	 	220		33,502		33,722		
 	 	 	 	 	
Proved Developed Reserves:	 	 	 	 	
 	 	 	 	 	
September 30, 2014	 	253		37,002		37,255		
September 30, 2015	 	220		33,150		33,370		

Page 27.

	

 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	

 	 	 	 	 	 	 	 	 	 	 	 	 	
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	September 30,	 	September 30,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2015	 	2014	 	(Decrease)	 	2015	 	2014	 	(Decrease)	
Firm Transportation - Affiliated	 	15,128		 	14,362		 	766		 	110,431		 	110,327		 	104		
Firm Transportation - Non-Affiliated	 	149,626		 	141,656		 	7,970		 	626,775		 	620,944		 	5,831		
Interruptible Transportation	 	4,040		 	946		 	3,094		 	12,874		 	4,724		 	8,150		
 	 	168,794		 	156,964		 	11,830		 	750,080		 	735,995		 	14,085		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gathering Volume - (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	September 30,	 	September 30,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2015	 	2014	 	(Decrease)	 	2015	 	2014	 	(Decrease)	
Gathered Volume - Affiliated	 	32,934		 	41,485		 	(8,551	)	 	139,629		 	138,726		 	903		

Utility Throughput - (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	September 30,	 	September 30,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2015	 	2014	 	(Decrease)	 	2015	 	2014	 	(Decrease)	
Retail Sales:	 	 	 	 	 	 	 	 	 	 	 	 	
Residential Sales	 	3,285		 	3,628		 	(343	)	 	59,600		 	60,101		 	(501	)	
Commercial Sales	 	471		 	476		 	(5	)	 	8,710		 	8,834		 	(124	)	
Industrial Sales	 	21		 	16		 	5		 	337		 	393		 	(56	)	
 	 	3,777		 	4,120		 	(343	)	 	68,647		 	69,328		 	(681	)	
Off-System Sales	 	—		 	230		 	(230	)	 	3,787		 	4,564		 	(777	)	
Transportation	 	10,240		 	10,761		 	(521	)	 	78,749		 	80,949		 	(2,200	)	
 	 	14,017		 	15,111		 	(1,094	)	 	151,183		 	154,841		 	(3,658	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Energy Marketing Volume	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	September 30,	 	September 30,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2015	 	2014	 	(Decrease)	 	2015	 	2014	 	(Decrease)	
Natural Gas (MMcf)	 	6,537		 	6,846		 	(309	)	 	46,752		 	52,694		 	(5,942	)	

	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

Page 28.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding Operating Results and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. 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 in accordance with GAAP.

Management defines Operating Results as reported GAAP earnings before items impacting comparability. The table at page 2 of this report reconciles National Fuel's reported GAAP earnings to Operating Results for the three and twelve months ended September 30, 2015 and 2014.

Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, depreciation, depletion and amortization, interest and other income, impairments, items impacting comparability and income taxes.

The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and twelve months ended September 30, 2015 and 2014:

	

 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	September 30,	 	September 30,	
 	 	2015	 	2014	 	2015	 	2014	
(in thousands)	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	(187,703	)	 	$	57,431		 	$	(379,427	)	 	$	299,413		
Depreciation, Depletion and Amortization	 	70,860		 	103,905		 	336,158		 	383,781		
Interest and Other Income	 	(5,692	)	 	(5,464	)	 	(11,961	)	 	(13,631	)	
Interest Expense	 	29,189		 	23,050		 	99,471		 	94,277		
Income Taxes	 	(162,525	)	 	26,987		 	(319,136	)	 	189,614		
Impairment of Oil and Gas Producing
  Properties	 	417,197		 	—		 	1,126,257		 	—		
Reversal of Stock-Based Compensation	 	(7,961	)	 	—		 	(7,961	)	 	—		
Adjusted EBITDA	 	$	153,365		 	$	205,909		 	$	843,401		 	$	953,454		
 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment	 	 	 	 	 	 	 	 	
Pipeline and Storage Adjusted EBITDA	 	$	40,297		 	$	42,573		 	$	188,042		 	$	186,022		
Gathering Adjusted EBITDA	 	16,328		 	19,469		 	68,783		 	64,060		
Total Midstream Businesses Adjusted EBITDA	 	56,625		 	62,042			256,825			250,082		
Exploration and Production Adjusted EBITDA	 	97,582		 	138,818		 	422,289		 	539,472		
Utility Adjusted EBITDA	 	3,311		 	7,876		 	164,037		 	164,643		
Energy Marketing Adjusted EBITDA	 	(263	)	 	631		 	12,150		 	10,335		
Corporate and All Other Adjusted EBITDA	 	(3,890	)	 	(3,458	)	 	(11,900	)	 	(11,078	)	
Total Adjusted EBITDA	 	$	153,365		 	$	205,909			$	843,401			$	953,454		

Page 29.

	

 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	

Quarter Ended September 30 (unaudited)	 	2015	 	2014	
 	 	 	 	 	
Operating Revenues	 	$	301,062,000		 	$	366,623,000		
 	 	 	 	 	
Net Income (Loss) Available for Common Stock	 	$	(187,703,000	)	 	$	57,431,000		
 	 	 	 	 	
Earnings (Loss) Per Common Share:	 	 	 	 	
Basic	 	$	(2.22	)	 	$	0.68		
Diluted	 	$	(2.22	)	 	$	0.68		
 	 	 	 	 	
Weighted Average Common Shares:	 	 	 	 	
Used in Basic Calculation	 	84,570,432		 	84,126,542		
Used in Diluted Calculation	 	84,570,432		 	85,062,410		
 	 	 	 	 	
Twelve Months Ended September 30 (unaudited)	 	 	 	 	
 	 	 	 	 	
Operating Revenues	 	$	1,760,913,000		 	$	2,113,081,000		
 	 	 	 	 	
Net Income (Loss) Available for Common Stock	 	$	(379,427,000	)	 	$	299,413,000		
 	 	 	 	 	
Earnings (Loss) Per Common Share:	 	 	 	 	
Basic	 	$	(4.50	)	 	$	3.57		
Diluted	 	$	(4.50	)	 	$	3.52		
 	 	 	 	 	
Weighted Average Common Shares:	 	 	 	 	
Used in Basic Calculation	 	84,387,755		 	83,929,989		
Used in Diluted Calculation	 	84,387,755		 	84,952,347