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 National Fuel Reports 2014 Earnings
   Thursday, November 06, 2014 5:05:24 PM ET

National Fuel Gas Company ("National Fuel" or the "Company") (NFG ) today announced consolidated earnings for the fourth quarter and fiscal year ended September 30, 2014, of $57.4 million, or $0.68 per share, and $299.4 million, or $3.52 per share, respectively.

HIGHLIGHTS

-- Consolidated earnings before items impacting comparability ("Operating Results") for the fourth quarter and fiscal year ended September 30, 2014, were $50.4 million, or $0.60 per share, and $291.8 million, or $3.43 per share, respectively.

-- Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") for fiscal 2014, were $953.5 million compared to $852.1 million for the prior year, an increase of 12%.



-- In the Midstream businesses (which consist of the Company’s Pipeline and Storage and Gathering segments), Adjusted EBITDA for fiscal 2014 were $250.1 million, a 31% increase over the prior year.

-- Seneca Resources Corporation’s ("Seneca") fourth quarter production of natural gas and crude oil was 46.0 billion cubic feet equivalent ("Bcfe"), an increase of 12.7 Bcfe or approximately 38% over the prior year’s fourth quarter. Pricing related curtailments for the quarter were approximately 5 Bcf. Average daily production during the quarter was 500 million cubic feet equivalent ("MMcfe") per day. Total production for fiscal 2014 increased to 160.5 Bcfe, an increase of 39.8 Bcfe over the prior year.

-- Seneca’s total reserves at September 30, 2014, were 1.9 trillion cubic feet equivalent ("Tcfe"), an increase of 365 Bcfe or 24%. Seneca replaced 327% of fiscal 2014 production.

-- A conference call is scheduled for Friday, November 7, 2014, at 11 a.m. Eastern Time.

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: "I am pleased to report the results of another very successful fiscal year. While each of our business segments had a solid operating performance during our 2014 fiscal year, our midstream businesses were the main driver of our increased earnings.

"We continue to capitalize on opportunities to build midstream pipeline infrastructure to move clean-burning natural gas produced from the Marcellus Shale to the market areas.

"The exploration success that producers have enjoyed in the Appalachian Basin in both the Marcellus and Utica shales has outstripped available pipeline capacity and has placed near-term commodity pricing pressure on those producers, including our own Seneca Resources. Those pricing pressures are evidenced by our decrease in earnings guidance for our next fiscal year. Customers of our Utility segment were the primary beneficiaries of increasing production in the basin, where ample supplies of flowing natural gas and gas withdrawn from storage helped to keep heating bills low over this past winter, which was the coldest in 50 years.

"Looking ahead to 2015 and 2016, we will continue our plan to develop and build midstream projects to help alleviate capacity constraints and pricing pressures facing Seneca. In addition, Seneca’s ongoing drilling program will be designed to increase our production and fill the firm pipeline capacity that Seneca has committed to in 2016 and 2017.

"We are in a great position to continue the growth of the Company. Our integrated structure allows the ongoing efficient development of our mineral acreage, which is made more valuable by our investments in pipeline infrastructure that provides access to markets that are becoming more reliant on this abundant and clean burning fuel."

EXPLORATION AND PRODUCTION SEGMENT OPERATIONS UPDATE

Seneca has continued to focus on the development of its Western Development Area ("WDA") acreage in the Marcellus Shale, where Seneca is operating two of its three horizontal drilling rigs. The third rig, which is currently drilling a Utica delineation well in Tioga County, Pa., is expected to return to drilling in the WDA during the first quarter of fiscal 2015. Seneca’s Marcellus development in fiscal 2015 will be focused almost exclusively on the WDA in order to develop natural gas production to fill approximately 500 MMcfe per day of pipeline transportation capacity associated with the Northern Access 2015 and Northern Access 2016 expansion projects.

During the fourth quarter, Seneca brought on 15 new Marcellus development wells in the greater Clermont-Rich Valley area. These wells, located on Pad N and Pad H where Seneca pays no royalty and, therefore, has a 100% net working and revenue interest, had a combined average initial 24-hour production rate of 8.1 MMcfe per day. The wells had an average lateral length of 5,710 feet and were completed using a reduced cluster spacing ("RCS") design, averaging 38 stages per well. The average capital cost to drill and complete each of these wells was approximately $6.1 million. The 9-well Pad N, brought on-line in July 2014, continues to post strong production rates that averaged 4.4 MMcf per well per day over its first 60 days of production, which is consistent with our type curve for that area.

In addition, Seneca began producing from a new 10-well pad at DCNR Tract 100 in Lycoming County, Pa., and a new 5-well pad at DCNR Tract 595 in Tioga County, Pa. On the new DCNR 100 Pad T, Seneca drilled its most successful Marcellus well to date, which produced at a 24-hour peak rate of 25.7 MMcf per day.

During fiscal year 2014, Seneca replaced 327% of production to reach a total of 1.914 Tcfe of proved crude oil and natural gas reserves as of September 30, 2014. Seneca’s success through the drill bit in the Marcellus Shale led to a 383 Bcf, or 30% increase in natural gas reserves, which totaled 1.683 Tcf at fiscal year end. Crude oil reserves, which decreased by 8% largely due to production, totaled 38.5 million barrels ("Bbls") at September 30, 2014. Consolidated finding and development costs for the year were $1.15 per thousand cubic feet equivalent ("Mcfe"), down from fiscal 2013’s $1.31 per Mcfe.

Of the total reserves, 73% were classified as proved developed reserves. This is an increase from 71% proved developed reserves as of September 30, 2013. Proved undeveloped ("PUD") reserves totaled 27% of the total reserves at the end of the fiscal year.

SUMMARY OF RESULTS

National Fuel Gas had consolidated earnings for the quarter ended September 30, 2014, of $57.4 million, or $0.68 per share, compared to the prior year’s fourth quarter of $47.8 million, or $0.57 per share, an increase of $9.6 million, or $0.11 per share. The increase is mainly due to higher earnings in the Midstream and Upstream businesses. (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.)

Consolidated earnings for the fiscal year ended September 30, 2014, of $299.4 million, or $3.52 per share, increased $39.4 million, or $0.44 per share, from the same period in the prior year where earnings were $260.0 million or $3.08 per share.

 
                                                                                                                                                             OPERATING RESULTS
                                                                                                                                                             
                                                                                                                                                      Three Months Ended                                                                                                          Fiscal Year Ended
                                                                                                                                                         September 30,                                                                                                              September 30,
                                                                                                                             2014                                         2013                                                            2014                                    2013
                                                                                                          -------------------------------------------                     -------------------------------------------                     -------------------------------------------                     --------------------------------
(in thousands except per share amounts)
Reported GAAP earnings                                                                                             $     57,431                                                    $     47,842                                                    $    299,413                                                    $              260,001
 Items impacting comparability(1):
   Deferred state income tax adjustment                                                                                  (7,000 )                                                                                                                        (4,000 )                                                                   5,000
   Gain on life insurance policies                                                                                                                                                                                                                       (3,635 )
   Regulatory adjustment - Utility segment                                                                                                                                                4,680                                                                                                                                     4,875
                                                                                                                                                                                         
                                                                                                          ------------------------------------------                      ------------------------------------------                      ------------------------------------------                      --------------------------------
Operating Results                                                                                                  $     50,431                                 $     52,522                                 $    291,778                                 $              269,876
                                                                                                          ========== ========== ====================                      ========== ========== ====================                      ========== ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                           
Reported GAAP earnings per share                                                                                   $       0.68                                                    $       0.57                                                    $       3.52                                                    $                 3.08
 Items impacting comparability(1):
   Deferred state income tax adjustment                                                                                   (0.08 )                                                                                                                         (0.05 )                                                                    0.06
   Gain on life insurance policies                                                                                                                                                                                                                        (0.04 )
   Regulatory adjustment - Utility segment                                                                                                                                                 0.06                                                                                                                                      0.06
                                                                                                                                                                                         
                                                                                                          ------------------------------------------                      ------------------------------------------                      ------------------------------------------                      --------------------------------
Operating Results                                                                                                  $       0.60                                 $       0.63                                 $       3.43                                 $                 3.20
                                                                                                          ========== ========== ====================                      ========== ========== ====================                      ========== ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                      

(1) See discussion of these individual items below.

As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s financial results when comparing the quarter and fiscal year ended September 30, 2014, to the comparable periods in fiscal 2013. Excluding these items, Operating Results for the current quarter of $50.4 million, or $0.60 per share, decreased $2.1 million, or $0.03 per share, from the prior year’s fourth quarter where Operating Results were $52.5 million or $0.63 per share. Excluding these items, Operating Results for the fiscal year ended September 30, 2014, of $291.8 million, or $3.43 per share, increased $21.9 million, or $0.23 per share, from the prior year where Operating Results were $269.9 million or $3.20 per share. Items impacting comparability will be discussed in more detail with the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form at pages 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 earnings in the fourth quarter of fiscal 2014 of $33.7 million, or $0.40 per share, increased $4.4 million, or $0.05 per share, when compared with the prior year’s fourth quarter. In the current year’s fourth quarter Seneca reduced its state deferred income tax liability by $7.0 million. The decrease in income taxes 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. Excluding this adjustment, Operating Results in the Exploration and Production segment of $26.7 million, or $0.32 per share, decreased $2.6 million, or $0.03 per share, when compared to the prior year’s fourth quarter.

Overall production of natural gas and crude oil for the current quarter of 46.0 Bcfe increased approximately 12.7 Bcfe, or 38.3 percent, compared to the prior year’s fourth quarter. Production from Seneca’s Appalachia properties increased approximately 12.3 Bcfe or 43.8 percent. California production of 5.5 Bcfe increased 7.3 percent compared with the prior year’s fourth quarter due to increased development activities, primarily in the East Coalinga and South Midway Sunset fields.

Lower commodity prices realized after hedging reduced Operating Results. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended September 30, 2014, was $3.19 per thousand cubic feet ("Mcf"), a decrease of $0.80 per Mcf compared to the prior year’s fourth quarter. The weighted average crude oil price realized after hedging for the quarter ended September 30, 2014, was $93.70 per Bbl, a decrease of $5.50 per Bbl compared to the prior year’s fourth quarter.

On a per unit basis, quarterly depletion expense of $1.76 per Mcfe, decreased $0.20 per Mcfe due to higher natural gas reserve balances at September 30, 2014, compared to the prior year’s fourth quarter. On a per unit basis, lease operating and transportation expenses ("LOE") at $1.02 per Mcfe increased $0.06 per Mcfe compared to the prior year’s fourth quarter due to higher intercompany gathering and compression costs associated with production from Tract 100 in Lycoming County, Pa., and the Clermont-Rich Valley area in Seneca’s WDA. Higher well repair and steam fuel costs in California also contributed to the per unit increase. General and administrative expenses ("G&A") decreased $0.11 per Mcfe compared to the prior year’s fourth quarter, due to higher production. Operating Results were increased by a $4.7 million change in Seneca’s quarterly mark to market adjustment relating to hedging ineffectiveness associated with certain crude oil and natural gas hedges.

The Exploration and Production segment’s earnings were $121.6 million, or $1.43 per share, for the fiscal year ended September 30, 2014, compared to earnings of $115.4 million, or $1.37 per share, for the fiscal year ended September 30, 2013. Including the deferred income tax adjustment described above for the quarter, Seneca had deferred income tax adjustments in both fiscal 2013 and 2014, the sum of which decreased earnings by $5.0 million and increased earnings by $4.0 million, respectively. Excluding these items, Operating Results in the Exploration and Production segment of $117.6 million, or $1.38 per share, decreased $2.8 million, or $0.05 per share, when compared to the prior year.

Overall production of natural gas and crude oil for the fiscal year ended September 30, 2014, of 160.5 Bcfe increased approximately 39.8 Bcfe, or 33.0 percent, compared to the prior year. Production from Seneca’s Appalachia properties increased approximately 38.5 Bcfe or 38.2 percent. California production of 21.2 Bcfe increased 6.9 percent compared with the prior year.

Lower commodity prices realized after hedging in the current fiscal year reduced earnings. The weighted average natural gas price received by Seneca (after hedging) for the fiscal year ended September 30, 2014, was $3.56 per Mcf, a decrease of $0.54 per Mcf compared to the prior year. The weighted average crude oil price realized after hedging for the fiscal year ended September 30, 2014, was $95.55 per Bbl, a decrease of $2.66 per Bbl.

On a per unit basis for the fiscal year ended September 30, 2014, depletion expense of $1.85 per Mcfe decreased $0.17 per Mcfe due to higher natural gas reserve balances at September 30, 2014. LOE of $1.03 per Mcfe increased $0.04 per Mcfe due to higher intercompany transportation costs in Appalachia and higher steam fuel costs in California, and G&A of $0.40 per Mcfe decreased $0.12 per Mcfe compared to the prior year, due to higher production. Operating Results for the fiscal year ended September 30, 2014, were reduced by higher property taxes in California, a higher Pennsylvania impact fee, and higher interest expense due to a higher outstanding debt balance. These factors were partially offset by a net $2.3 million change in the derivative mark to market adjustment associated with certain crude oil and natural gas hedges.

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.

The Pipeline and Storage segment’s earnings of $19.1 million, or $0.22 per share, for the quarter ended September 30, 2014, increased $3.7 million, or $0.04 per share, when compared with the same period in the prior fiscal year. The increase in earnings reflects higher non-affiliated transportation revenues from new transportation contracts. As a result of the ongoing pricing basis differentials in the Marcellus basin, the Pipeline and Storage segment continues to see increased demand for transportation services from producers and marketers. Earnings for the quarter also benefitted from lower pension and other post retirement benefit costs.

The Pipeline and Storage segment’s earnings of $77.6 million, or $0.91 per share, for the fiscal year ended September 30, 2014, increased $14.3 million, or $0.16 per share, when compared with the same period in the prior fiscal year. The increase was mostly due to higher non-affiliated transportation revenues and lower pension and other post retirement benefit costs. The increase in transportation revenues was due to the Company’s recent expansion projects as well as an overall increase in demand for short-term transportation services as a result of the cold winter of 2013-14.

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 and processing facilities in the Appalachian region and currently provides the critical gathering infrastructure for transporting Seneca’s Marcellus Shale production to the interstate pipeline system.

The Gathering segment’s earnings of $10.5 million, or $0.12 per share, for the quarter ended September 30, 2014, increased $6.6 million, or $0.07 per share, when compared with the same period in the prior fiscal year. Earnings of $32.7 million, or $0.39 per share, for the fiscal year ended September 30, 2014, increased $19.4 million, or $0.23 per share, when compared with the same period in the prior fiscal year. The increase in earnings for the quarter and the fiscal year is mainly due to higher gathering revenues from Midstream’s Trout Run and Clermont gathering systems. That increase in revenue was directly related to the increase in Seneca’s production volumes as described above.

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 $0.5 million, or $0.01 per share, for the quarter ended September 30, 2014, compared to earnings of $0.7 million, or $0.01 per share, in the prior year’s fourth quarter, a decrease in earnings of $1.2 million or $0.02 per share. During the prior year’s fourth quarter, Distribution recorded a reserve of $4.7 million in connection with various issues raised in the recent New York rate proceeding. Excluding this reserve, Operating Results in the Utility segment decreased $5.9 million, or $0.08 per share, primarily as a result of higher operating costs. The increase in operating costs was mostly attributable to higher bad debt, pension and other post retirement benefit expenses. In addition, Distribution’s new rate agreement in New York contains an earnings sharing mechanism under which Distribution shares a portion of its earnings above a 9.5 percent return on equity. During the quarter, Distribution recorded a $0.8 million reserve for earnings sharing.

The Utility segment’s earnings of $64.1 million, or $0.75 per share, for the fiscal year ended September 30, 2014, decreased $1.6 million, or $0.03 per share, when compared with the prior fiscal year. Excluding a total $4.9 million reserve recorded in the prior fiscal year in connection with the New York rate proceeding noted above, Operating Results decreased $6.5 million, or $0.09 per share, due to higher operating expenses, consisting mostly of higher bad debt, pension and other post retirement benefit related costs, and, a reserve for earnings sharing. Higher income taxes which were the result of a non-recurring tax benefit recorded in the prior year also reduced earnings. Colder weather in Pennsylvania increased earnings in the current year. Temperatures in Pennsylvania were 14.5 percent colder during the fiscal year ended September 30, 2014, than in the prior year. In New York, the impact of weather variations on earnings is mitigated by that jurisdiction’s weather normalization clause.

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, 2014, of $0.7 million increased $1.8 million compared to the prior year’s fourth quarter due to higher per unit margins. Earnings for the fiscal year ended September 30, 2014, of $6.6 million increased $2.0 million due to higher per unit margins and higher volumes sold resulting from weather that was significantly colder than the prior year.

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 $6.0 million in the quarter ended September 30, 2014, compares to a loss of $0.3 million in the prior year’s fourth quarter. The increase in the loss in the fourth quarter is mainly due to higher income taxes due to an intercompany deferred tax reallocation in the prior year’s fourth quarter.

The Corporate and All Other category loss of $3.1 million, for the fiscal year ended September 30, 2014, compares to a loss of $2.2 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. Excluding this item, Operating Results for the fiscal year ended September 30, 2014, a loss of $6.7 million, compares to a loss of $2.2 million in the prior year. The increase in the loss for the in the current fiscal year is mainly due to higher income taxes due to an intercompany deferred tax reallocation in the prior year.

EARNINGS GUIDANCE

The Company is updating its GAAP earnings guidance range for fiscal 2015 to a range of $3.05 to $3.35 per share. The previous earnings guidance had been a range of $3.30 to $3.60 per share. Substantially all of the change is attributable to a decrease in the commodity price assumptions reflected in the forecast. In particular:

-- The Company is now assuming Marcellus spot pricing averages between $2.50 and $2.75 per Mcf, down $0.25 per Mcf from the previous range of $2.75 and $3.00 per Mcf. At the midpoint, this change reduced earnings expectations by approximately $0.14 per share.

-- NYMEX natural gas prices are now assumed to average $4.00 per MMBtu for the fiscal year, down $0.25 from the previous forecast. However, because substantially all of Seneca’s firm sales have been hedged, this change had minimal impact on earnings expectations.

-- The Company is now assuming NYMEX crude oil prices average $85 per Bbl for the fiscal year, down $10.00 from the previous forecast. At the midpoint, this change reduced earnings expectations by approximately $0.10 per share.

The Company’s forecast oil and gas production for fiscal 2015 is unchanged at 180 to 220 Bcfe.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 7, 2014, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-202-3048, using passcode "36011529." 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 "40197121." Both the webcast and telephonic replay will be available until the close of business on Friday, November 14, 2014.

National Fuel is an integrated energy company with $6.7 billion in assets, including the following 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.

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

                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                                     RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
                                                                                                                                                                                                                                     QUARTER ENDED SEPTEMBER 30, 2014
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                             Upstream                                                                         Midstream Businesses                                                                                                                 Downstream
                                                                                                                                                                                                                                                                                                                                                      Businesses
                                                                                                      --------------------  --------------------                      ----------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                           Exploration &                                                              Pipeline &                                                                                                                                                                                        Energy                                                        Corporate /
(Thousands of Dollars)                                                                                      Production                            Storage                                     Gathering                                     Utility                                     Marketing                                    All Other                             Consolidated*
                                                                                                      ------------------------------------------ -------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- ---------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Fourth quarter 2013 GAAP earnings                                                                              $     29,266                                                    $     15,442                                                    $      3,879                                                    $        662                                                    $     (1,152 )                                                  $       (255 )                                            $ 47,842
Items impacting comparability:
Regulatory adjustment - Utility segment                                                                                                    4,680                         4,680  
                                                                                                      ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- --------------------------------
Fourth quarter 2013 operating results                                                                                29,266                                                          15,442                                                           3,879                                                           5,342                                                          (1,152 )                                                          (255 )                                              52,522
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Drivers of operating results
Higher (lower) crude oil prices                                                                                      (2,796 )                                                                                                                                                                                                                                                                                                                                                                              (2,796 )
Higher (lower) natural gas prices                                                                                   (21,374 )                                                                                                                                                                                                                                                                                                                                                                             (21,374 )
Higher (lower) natural gas production                                                                                31,974                                                                                                                                                                                                                                                                                                                                                                                31,974
Higher (lower) crude oil production                                                                                   4,212                                                                                                                                                                                                                                                                                                                                                                                 4,212
Derivative mark to market adjustments                                                                                 4,655                                                                                                                                                                                                                                                                                                                                                                                 4,655
Lower (higher) lease operating and transportation expenses                                                           (9,565 )                                                                                                                                                                                                                                                                                                                                                                              (9,565 )
Lower (higher) depreciation / depletion                                                                             (10,323 )                                                                                                                          (563 )                                                          (264 )                                                                                                                                                                             (11,150 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Higher (lower) transportation revenues                                                                                                                                                1,230                                                                                                                                                                                                                                                                                                                 1,230
Higher (lower) storage revenues                                                                                                                                                        (259 )                                                                                                                                                                                                                                                                                                                (259 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                      7,153                                                                                                                                                                                                                                                 7,153
Lower (higher) operating expenses                                                                                    (1,115 )                                                         2,272                                                                                                                          (3,728 )                                                                                                                           405                                                (2,166 )
Lower (higher) property, franchise and other taxes                                                                                                                                                                                                                                                                     (246 )                                                                                                                        (1,326 )                                              (1,572 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Earnings sharing adjustment                                                                                                                                                                                                                                                                                            (781 )                                                                                                                                                                                (781 )
Warmer weather                                                                                                                                                                                                                                                                                                         (515 )                                                                                                                                                                                (515 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                                                1,841                                                            (776 )                                               1,065
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Higher (lower) AFUDC**                                                                                                                                                                  681                                                                                                                                                                                                                                                                                                                   681
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Lower (higher) income tax expense / effective tax rate                                                                1,422                                                                                                                                                                                                                                                                                                                          (4,513 )                                              (3,091 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
All other / rounding                                                                                                    305                      (251 )                                         52                      (335 )                                        (28 )                                        465             208  
                                                                                                      ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- --------------------------------
Fourth quarter 2014 operating results                                                                                26,661                                                          19,115                                                          10,521                                                            (527 )                                                           661                                                          (6,000 )                                              50,431
Items impacting comparability:
Deferred state income tax adjustment                                                                                  7,000                                              7,000  
                                                                                                      ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- --------------------------------
Fourth quarter 2014 GAAP earnings                                                                              $     33,661              $     19,115              $     10,521              $       (527 )                               $        661              $     (6,000 )                         $ 57,431  
                                                                                                      ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ==== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction
                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                                     RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
                                                                                                                                                                                                                                     QUARTER ENDED SEPTEMBER 30, 2014
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                           Upstream                                                                                  Midstream Businesses                                                                                                                 Downstream
                                                                                                                                                                                                                                                                                                                                                                          Businesses
                                                                                                                          ----------------------------------------                        ----------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                         Exploration &                                                    Pipeline &                                                                                                                                                                                        Energy                                                        Corporate /
                                                                                                                                          Production                                     Storage                                     Gathering                                     Utility                                     Marketing                                    All Other                               Consolidated*
                                                                                                                          --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Fourth quarter 2013 GAAP earnings                                                                                                  $       0.35                                                    $       0.18                                                    $       0.05                                                    $       0.01                                                    $      (0.01 )                                                  $      (0.01 )                                               $    0.57
Items impacting comparability:
Regulatory adjustment - Utility segment                                                                                                                         0.06                              0.06  
                                                                                                                          ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------
Fourth quarter 2013 operating results                                                                                                      0.35                                                            0.18                                                            0.05                                                            0.07                                                           (0.01 )                                                         (0.01 )                                                    0.63
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Drivers of operating results
Higher (lower) crude oil prices                                                                                                           (0.03 )                                                                                                                                                                                                                                                                                                                                                                                   (0.03 )
Higher (lower) natural gas prices                                                                                                         (0.25 )                                                                                                                                                                                                                                                                                                                                                                                   (0.25 )
Higher (lower) natural gas production                                                                                                      0.38                                                                                                                                                                                                                                                                                                                                                                                      0.38
Higher (lower) crude oil production                                                                                                        0.05                                                                                                                                                                                                                                                                                                                                                                                      0.05
Derivative mark to market adjustments                                                                                                      0.05                                                                                                                                                                                                                                                                                                                                                                                      0.05
Lower (higher) lease operating and transportation expenses                                                                                (0.11 )                                                                                                                                                                                                                                                                                                                                                                                   (0.11 )
Lower (higher) depreciation / depletion                                                                                                   (0.12 )                                                                                                                         (0.01 )                                                --                                                                                                                                                                                     (0.13 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Higher (lower) transportation revenues                                                                                                                                                                     0.01                                                                                                                                                                                                                                                                                                                      0.01
Higher (lower) storage revenues                                                                                                                                                                  --                                                                                                                                                                                                                                                                                                            --
Higher (lower) gathering and processing revenues                                                                                                                                                                                                                           0.08                                                                                                                                                                                                                                                      0.08
Lower (higher) operating expenses                                                                                                         (0.01 )                                                          0.03                                                                                                                           (0.04 )                                                                                                                --                                                     (0.02 )
Lower (higher) property, franchise and other taxes                                                                                                                                                                                                                                                                               --                                                                                                                           (0.02 )                                                   (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Earnings sharing adjustment                                                                                                                                                                                                                                                                                                               (0.01 )                                                                                                                                                                                   (0.01 )
Warmer weather                                                                                                                                                                                                                                                                                                                            (0.01 )                                                                                                                                                                                   (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                                                                     0.02                                                           (0.01 )                                                    0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Higher (lower) AFUDC**                                                                                                                                                                                     0.01                                                                                                                                                                                                                                                                                                                      0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Lower (higher) income tax expense / effective tax rate                                                                                     0.02                                                                                                                                                                                                                                                                                                                           (0.05 )                                                   (0.03 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
All other / rounding                                                                                                                      (0.01 )                                      (0.01 )                             --                     (0.02 )                             --                      0.03               (0.01 )
                                                                                                                          ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------
Fourth quarter 2014 operating results                                                                                                      0.32                                                            0.22                                                            0.12                                                           (0.01 )                                                          0.01                                                           (0.06 )                                                    0.60
Items impacting comparability:
Deferred state income tax adjustment                                                                                                       0.08                                                   0.08  
                                                                                                                          ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------
Fourth quarter 2014 GAAP earnings                                                                                                  $       0.40              $       0.22              $       0.12              $      (0.01 )                               $       0.01              $      (0.06 )                            $    0.68  
                                                                                                                          ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                                     RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
                                                                                                                                                                                                                                     TWELVE MONTHS ENDED SEPTEMBER 30, 2014
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                       Upstream                                                                                  Midstream Businesses                                                                                                                 Downstream
                                                                                                                                                                                                                                                                                                                                                      Businesses
                                                                                                      ----------------------------------------                        ----------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                     Exploration &                                                    Pipeline &                                                                                                                                                                                        Energy                                                        Corporate /
(Thousands of Dollars)                                                                                                Production                                     Storage                                     Gathering                                     Utility                                     Marketing                                    All Other                              Consolidated*
                                                                                                      --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Fiscal 2013 GAAP earnings                                                                                      $    115,391                                                    $     63,245                                                    $     13,321                                                    $     65,686                                                    $      4,589                                                    $     (2,231 )                                            $ 260,001
Items impacting comparability:
Deferred state income tax adjustment                                                                                  5,000                                                                                                                                                                                                                                                                                                                                                                                  5,000
Regulatory adjustment - Utility segment                                                                                                    4,875                          4,875  
                                                                                                      ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ---------------------------------
Fiscal 2013 operating results                                                                                       120,391                                                          63,245                                                          13,321                                                          70,561                                                           4,589                                                          (2,231 )                                              269,876
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Drivers of operating results
Higher (lower) crude oil prices                                                                                      (5,259 )                                                                                                                                                                                                                                                                                                                                                                               (5,259 )
Higher (lower) natural gas prices                                                                                   (49,668 )                                                                                                                                                                                                                                                                                                                                                                              (49,668 )
Higher (lower) natural gas production                                                                               102,809                                                                                                                                                                                                                                                                                                                                                                                102,809
Higher (lower) crude oil production                                                                                  13,075                                                                                                                                                                                                                                                                                                                                                                                 13,075
Derivative mark to market adjustments                                                                                 2,329                                                                                                                                                                                                                                                                                                                                                                                  2,329
Insurance settlement proceeds adjustment                                                                              1,261                                                                                                                                                                                           1,485                                                                                                                                                                                  2,746
Lower (higher) lease operating and transportation expenses                                                          (30,089 )                                                                                                                                                                                                                                                                                                                                                                              (30,089 )
Lower (higher) depreciation / depletion                                                                             (34,306 )                                                          (966 )                                                        (1,411 )                                                                                                                                                                                                                                              (36,683 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Higher (lower) transportation revenues                                                                                                                                               11,658                                                                                                                                                                                                                                                                                                                 11,658
Higher (lower) storage revenues                                                                                                                                                        (436 )                                                                                                                                                                                                                                                                                                                 (436 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                     23,289                                                                                                                                                                                                                                                 23,289
Lower (higher) operating expenses                                                                                    (2,738 )                                                         6,323                                                          (1,076 )                                                        (9,122 )                                                                                                                                                                               (6,613 )
Lower (higher) property, franchise and other taxes                                                                   (2,317 )                                                          (927 )                                                                                                                          (801 )                                                                                                                          (685 )                                               (4,730 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Colder weather                                                                                                                                                                                                                                                                                                        5,785                                                                                                                                                                                  5,785
Earnings sharing adjustment                                                                                                                                                                                                                                                                                          (1,637 )                                                                                                                                                                               (1,637 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                                                2,196                                                                                                                  2,196
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Income (loss) from unconsolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                          391                                                    391
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Higher (lower) AFUDC**                                                                                                                                                                 (393 )                                                                                                                                                                                                                                                                                                                 (393 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Lower (higher) interest expense                                                                                      (1,617 )                                                                                                                           362                                                             899                                                                                                                                                                                   (356 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Lower (higher) income tax expense / effective tax rate                                                                2,228                                                            (497 )                                                        (1,892 )                                                        (2,427 )                                                                                                                        (4,712 )                                               (7,300 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
All other / rounding                                                                                                  1,470                      (448 )                                        116                      (684 )                                       (154 )                                        488              788  
                                                                                                      ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ---------------------------------
Fiscal 2014 operating results                                                                                       117,569                                                          77,559                                                          32,709                                                          64,059                                                           6,631                                                          (6,749 )                                              291,778
Items impacting comparability:
Gain on life insurance policies                                                                                                                                                                                                                                                                                                                                                                                                                       3,635                                                  3,635
Deferred state income tax adjustment                                                                                  4,000                                               4,000  
                                                                                                      ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ---------------------------------
Fiscal 2014 GAAP earnings                                                                                      $    121,569              $     77,559              $     32,709              $     64,059              $      6,631              $     (3,114 )                         $ 299,413  
                                                                                                      ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ==== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction
                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                                     RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
                                                                                                                                                                                                                                     TWELVE MONTHS ENDED SEPTEMBER 30, 2014
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                           Upstream                                                                                  Midstream Businesses                                                                                                                 Downstream
                                                                                                                                                                                                                                                                                                                                                                          Businesses
                                                                                                                          ----------------------------------------                        ----------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                         Exploration &                                                    Pipeline &                                                                                                                                                                                        Energy                                                        Corporate /
                                                                                                                                          Production                                     Storage                                     Gathering                                     Utility                                     Marketing                                    All Other                               Consolidated*
                                                                                                                          --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Fiscal 2013 GAAP earnings                                                                                                          $       1.37                                                    $       0.75                                                    $       0.16                                                    $       0.78                                                    $       0.05                                                    $      (0.03 )                                               $    3.08
Items impacting comparability:
Deferred state income tax adjustment                                                                                                       0.06                                                                                                                                                                                                                                                                                                                                                                                      0.06
Regulatory adjustment - Utility segment                                                                                                                         0.06                              0.06  
                                                                                                                          ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------
Fiscal 2013 operating results                                                                                                              1.43                                                            0.75                                                            0.16                                                            0.84                                                            0.05                                                           (0.03 )                                                    3.20
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Drivers of operating results
Higher (lower) crude oil prices                                                                                                           (0.06 )                                                                                                                                                                                                                                                                                                                                                                                   (0.06 )
Higher (lower) natural gas prices                                                                                                         (0.58 )                                                                                                                                                                                                                                                                                                                                                                                   (0.58 )
Higher (lower) natural gas production                                                                                                      1.21                                                                                                                                                                                                                                                                                                                                                                                      1.21
Higher (lower) crude oil production                                                                                                        0.15                                                                                                                                                                                                                                                                                                                                                                                      0.15
Derivative mark to market adjustments                                                                                                      0.03                                                                                                                                                                                                                                                                                                                                                                                      0.03
Insurance settlement proceeds adjustment                                                                                                   0.01                                                                                                                                                                                            0.02                                                                                                                                                                                      0.03
Lower (higher) lease operating and transportation expenses                                                                                (0.35 )                                                                                                                                                                                                                                                                                                                                                                                   (0.35 )
Lower (higher) depreciation / depletion                                                                                                   (0.40 )                                                         (0.01 )                                                         (0.02 )                                                                                                                                                                                                                                                   (0.43 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Higher (lower) transportation revenues                                                                                                                                                                     0.14                                                                                                                                                                                                                                                                                                                      0.14
Higher (lower) storage revenues                                                                                                                                                                           (0.01 )                                                                                                                                                                                                                                                                                                                   (0.01 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                                           0.27                                                                                                                                                                                                                                                      0.27
Lower (higher) operating expenses                                                                                                         (0.03 )                                                          0.07                                                           (0.01 )                                                         (0.11 )                                                                                                                                                                                   (0.08 )
Lower (higher) property, franchise and other taxes                                                                                        (0.03 )                                                         (0.01 )                                                                                                                         (0.01 )                                                                                                                         (0.01 )                                                   (0.06 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Colder weather                                                                                                                                                                                                                                                                                                                             0.07                                                                                                                                                                                      0.07
Earnings sharing adjustment                                                                                                                                                                                                                                                                                                               (0.02 )                                                                                                                                                                                   (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                                                                     0.03                                                                                                                      0.03
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Income (loss) from unconsolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                   --                                            --
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Higher (lower) AFUDC**                                                                                                                                                                           --                                                                                                                                                                                                                                                                                                            --
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Lower (higher) interest expense                                                                                                           (0.02 )                                                                                                                --                                                            0.01                                                                                                                                                                                     (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Lower (higher) income tax expense / effective tax rate                                                                                     0.03                                                           (0.01 )                                                         (0.02 )                                                         (0.03 )                                                                                                                         (0.06 )                                                   (0.09 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
All other / rounding                                                                                                                      (0.01 )                                      (0.01 )                                       0.01                     (0.02 )                             --                      0.02               (0.01 )
                                                                                                                          ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------
Fiscal 2014 operating results                                                                                                              1.38                                                            0.91                                                            0.39                                                            0.75                                                            0.08                                                           (0.08 )                                                    3.43
Items impacting comparability:
Gain on life insurance policies                                                                                                                                                                                                                                                                                                                                                                                                                                            0.04                                                      0.04
Deferred state income tax adjustment                                                                                                       0.05                                                   0.05  
                                                                                                                          ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------------ -------------------- ------------------------------------
Fiscal 2014 GAAP earnings                                                                                                          $       1.43              $       0.91              $       0.39                      0.75              $       0.08              $      (0.04 )                            $    3.52  
                                                                                                                          ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ========================================== ==================== ========== ========== ==================== ==================== ========== ========== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction
                                                                                                                                                               
                                                                                                                                                                                                                                                                                
                                                                                                                                      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                                                                     2014              2013                                  2014                2013       
-----------------------------------------                                            ------------  -------------------- -------------------- ------------  --------------------                      --------------  -------------------- -------------------- --------------  --------------------
Operating Revenues                                                                       $ 366,623                            $ 338,863                            $ 2,113,081                            $ 1,829,551  
                                                                                     ----- ------- --------------------                      ----- ------- --------------------                      ----- --------- --------------------                      ----- --------- --------------------
                                                                                                                                                                                                                                                                                
Operating Expenses:
 Purchased Gas                                                                              28,833                                                  33,532                                                   605,838                                                   460,432
 Operation and Maintenance                                                                 110,284                                                 103,557                                                   463,078                                                   442,090
 Property, Franchise and Other Taxes                                                        21,597                                                  18,881                                                    90,711                                                    82,431
 Depreciation, Depletion and Amortization                                                  103,905                               86,257                                383,781                                326,760  
                                                                                     ----------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                           264,619                                                 242,227                                                 1,543,408                                                 1,311,713
                                                                                                                                                                                                                                                                                
Operating Income                                                                           102,004                                                  96,636                                                   569,673                                                   517,838
                                                                                                                                                                                                                                                                                
Other Income (Expense):
 Interest Income                                                                             2,849                                                   2,491                                                     4,170                                                     4,335
 Other Income                                                                                2,615                                                   1,032                                                     9,461                                                     4,697
 Interest Expense on Long-Term Debt                                                        (22,427 )                                               (23,042 )                                                 (90,194 )                                                 (90,273 )
 Other Interest Expense                                                                       (623 )                                                  (941 )                                                  (4,083 )                                                  (3,838 )
                                                                                     ----------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                                
Income Before Income Taxes                                                                  84,418                                                  76,176                                                   489,027                                                   432,759
                                                                                                                                                                                                                                                                                
Income Tax Expense                                                                          26,987                               28,334                                189,614                                172,758  
                                                                                     ----------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                                
Net Income Available for Common Stock                                                    $  57,431                            $  47,842                            $   299,413                            $   260,001  
                                                                                     ===== ======= ====================                      ===== ======= ====================                      ===== ========= ====================                      ===== ========= ====================
                                                                                                                                                                                                                                                                                
Earnings Per Common Share:
 Basic                                                                                   $    0.68                            $    0.57                            $      3.57                            $      3.11  
                                                                                     ===== ======= ====================                      ===== ======= ====================                      ===== ========= ====================                      ===== ========= ====================
 Diluted                                                                                 $    0.68                            $    0.57                            $      3.52                            $      3.08  
                                                                                     ===== ======= ====================                      ===== ======= ====================                      ===== ========= ====================                      ===== ========= ====================
                                                                                                                                                                                                                                                                                
Weighted Average Common Shares:
Used in Basic Calculation                                                               84,126,542                           83,628,686                             83,929,989                             83,518,857  
                                                                                     ==================================                      ==================================                      ====================================                      ====================================
Used in Diluted Calculation                                                             85,062,410                           84,502,703                             84,952,347                             84,341,220  
                                                                                     ==================================                      ==================================                      ====================================                      ====================================
                                                                                                                                           
                                                                                                NATIONAL FUEL GAS COMPANY
                                                                                                    AND SUBSIDIARIES
                                                                                               CONSOLIDATED BALANCE SHEETS
                                                                                                       (Unaudited)
                                                                 
                                                                                                                            September 30,                                    September 30,
(Thousands of Dollars)                                                 2014               2013       
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
ASSETS
Property, Plant and Equipment                                                                                                  $8,245,791                                               $7,313,203
Less - Accumulated Depreciation, Depletion and Amortization            2,502,700          2,161,477  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Net Property, Plant and Equipment                                   5,743,091          5,151,726  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
Current Assets:
Cash and Temporary Cash Investments                                                                                                36,886                                                   64,858
Hedging Collateral Deposits                                                                                                         2,734                                                    1,094
Receivables - Net                                                                                                                 149,735                                                  133,182
Unbilled Revenue                                                                                                                   25,663                                                   19,483
Gas Stored Underground                                                                                                             39,422                                                   51,484
Materials and Supplies - at average cost                                                                                           27,817                                                   29,904
Unrecovered Purchased Gas Costs                                                                                            --                                                   12,408
Other Current Assets                                                                                                               54,752                                                   56,905
Deferred Income Taxes                                                     40,323             79,359  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Current Assets                                                  377,332            448,677  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
Other Assets:
Recoverable Future Taxes                                                                                                          163,485                                                  163,355
Unamortized Debt Expense                                                                                                           14,304                                                   16,645
Other Regulatory Assets                                                                                                           224,436                                                  252,568
Deferred Charges                                                                                                                   14,212                                                    9,382
Other Investments                                                                                                                  86,788                                                   96,308
Goodwill                                                                                                                            5,476                                                    5,476
Prepaid Post-Retirement Benefit Costs                                                                                              36,512                                                   22,774
Fair Value of Derivative Financial Instruments                                                                                     72,606                                                   48,989
Other                                                                      1,355              2,447  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Other Assets                                                    619,174            617,944  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Assets                                                          $6,739,597         $6,218,347  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 84,157,220 Shares
and 83,661,969 Shares, Respectively                                                                                               $84,157                                                  $83,662
Paid in Capital                                                                                                                   716,144                                                  687,684
Earnings Reinvested in the Business                                                                                             1,614,361                                                1,442,617
Accumulated Other Comprehensive Loss                                      (3,979 )                             (19,234 )
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Comprehensive Shareholders’ Equity                                                                                        2,410,683                                                2,194,729
Long-Term Debt, Net of Current Portion                                 1,649,000          1,649,000  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Capitalization                                                4,059,683          3,843,729  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper                                                                                        85,600                                           --
Current Portion of Long-Term Debt                                                                                          --                                           --
Accounts Payable                                                                                                                  136,674                                                  105,283
Amounts Payable to Customers                                                                                                       33,745                                                   12,828
Dividends Payable                                                                                                                  32,400                                                   31,373
Interest Payable on Long-Term Debt                                                                                                 29,960                                                   29,960
Customer Advances                                                                                                                  19,005                                                   21,959
Customer Security Deposits                                                                                                         15,761                                                   16,183
Other Accruals and Current Liabilities                                                                                            136,672                                                   83,946
Fair Value of Derivative Financial Instruments                               759                639  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Current and Accrued Liabilities                                 490,576            302,171  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
Deferred Credits:
Deferred Income Taxes                                                                                                           1,456,283                                                1,347,007
Taxes Refundable to Customers                                                                                                      91,736                                                   85,655
Unamortized Investment Tax Credit                                                                                                   1,145                                                    1,579
Cost of Removal Regulatory Liability                                                                                              173,199                                                  157,622
Other Regulatory Liabilities                                                                                                       81,152                                                   61,549
Pension and Other Post-Retirement Liabilities                                                                                     134,202                                                  158,014
Asset Retirement Obligations                                                                                                      117,713                                                  119,511
Other Deferred Credits                                                   133,908            141,510  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Deferred Credits                                              2,189,338          2,072,447  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Commitments and Contingencies                                     --     --  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Capitalization and Liabilities                                  $6,739,597         $6,218,347  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                    
                                                                                                                    
                                                                                                      NATIONAL FUEL GAS COMPANY
                                                                                                          AND SUBSIDIARIES
                                                                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                             (Unaudited)
                                                                                                                                                                            Twelve Months Ended
                                                                                                                                                                               September 30,
(Thousands of Dollars)                                                             2014                2013      
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                
Operating Activities:
Net Income Available for Common Stock                                                                                                       $  299,413                                              $  260,001
Adjustments to Reconcile Net Income to Net Cash
  Provided by Operating Activities:
   Depreciation, Depletion and Amortization                                                                                                    383,781                                                 326,760
   Deferred Income Taxes                                                                                                                       142,415                                                 167,887
   Excess Tax Benefits Associated with Stock-Based Compensation Awards                                                                          (4,641 )                                                  (675 )
   Stock-Based Compensation                                                                                                                     11,763                                                  12,446
   Other                                                                                                                                        14,063                                                  14,965
 Change in:
   Hedging Collateral Deposits                                                                                                                  (1,640 )                                                  (730 )
   Receivables and Unbilled Revenue                                                                                                            (22,781 )                                               (17,135 )
   Gas Stored Underground and Materials and Supplies                                                                                            13,285                                                  (3,016 )
   Unrecovered Purchased Gas Costs                                                                                                              12,408                                                 (12,408 )
   Other Current Assets                                                                                                                         (3,630 )                                                  (109 )
   Accounts Payable                                                                                                                             15,149                                                   8,303
   Amounts Payable to Customers                                                                                                                 20,917                                                  (7,136 )
   Customer Advances                                                                                                                            (2,954 )                                                (2,096 )
   Customer Security Deposits                                                                                                                     (422 )                                                (1,759 )
   Other Accruals and Current Liabilities                                                                                                        6,872                                                     666
   Other Assets                                                                                                                                 18,513                                                  (5,757 )
   Other Liabilities                                                                    6,879            (1,635 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------- -------------------- ----------------------------------
     Net Cash Provided by Operating Activities                                     $  909,390        $  738,572  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------- -------------------- -------------------- ---- -------- --------------------
                                                                                                                                                                                                                
Investing Activities:
Capital Expenditures                                                                                                                        $ (914,417 )                                            $ (703,461 )
Other                                                                                   5,982            (2,522 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------- -------------------- ----------------------------------
     Net Cash Used in Investing Activities                                         $ (908,435 )                         $ (705,983 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------- -------------------- -------------------- ---- -------- --------------------
                                                                                                                                                                                                                
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper                                                                                      $   85,600                                              $ (171,000 )
Excess Tax Benefits Associated with Stock-Based Compensation Awards                                                                              4,641                                                     675
Reduction of Long-Term Debt                                                                                                             --                                                (250,000 )
Net Proceeds From Issuance of Long-Term Debt                                                                                            --                                                 495,415
Dividends Paid on Common Stock                                                                                                                (126,642 )                                              (122,710 )
Net Proceeds From Issuance of Common Stock                                              7,474             5,395  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------- -------------------- ----------------------------------
     Net Cash Used in Financing Activities                                         $  (28,927 )                         $  (42,225 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------- -------------------- -------------------- ---- -------- --------------------
                                                                                                                                                                                                                
Net Decrease in Cash and Temporary Cash Investments                                                                                            (27,972 )                                                (9,636 )
Cash and Temporary Cash Investments at Beginning of Period                             64,858            74,494  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------- -------------------- ----------------------------------
Cash and Temporary Cash Investments at September 30                                $   36,886        $   64,858  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------- -------------------- -------------------- ---- -------- --------------------
                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                         NATIONAL FUEL GAS COMPANY
                                                                                                                                                             AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                 SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                (UNAUDITED)
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                             UPSTREAM BUSINESS
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                            
(Thousands of Dollars, except per share amounts)                                                                                                        Three Months Ended                                                                                                     Twelve Months Ended
                                                                                                                                                           September 30,                                                                                                          September 30,
                                                                                                                -----------------------------------------------------------------------------------------                              ------------------------------------------------------------------------------------------
EXPLORATION AND PRODUCTION SEGMENT                                                                                  2014          2013                  Variance                                     2014          2013                  Variance
------------------------------------------------                                                                ----------  -------------------- ----------  -------------------- -----------------------------                        ----------  -------------------- ----------  -------------------- ------------------------------
Total Operating Revenues                                                                                          $ 209,967     $ 184,195     $ 25,772                          $ 804,096     $ 702,937     $ 101,159  
                                                                                                                --- ------- -------------------- --- ------- -------------------- --- ------ --------------------                      --- ------- -------------------- --- ------- -------------------- --- ------- --------------------
                                                                                                                                                                                                                                                                                                                      
Operating Expenses:
 Operation and Maintenance:
  General and Administrative Expense                                                                                 15,783                           15,073                             710                                                63,804                           62,162                            1,642
  Lease Operating and Transportation Expense                                                                         46,684                           31,967                          14,717                                               165,534                          119,243                           46,291
  All Other Operation and Maintenance Expense                                                                         3,459                            2,454                           1,005                                                14,521                           11,950                            2,571
 Property, Franchise and Other Taxes                                                                                  5,223                            5,295                             (72 )                                              20,765                           17,199                            3,566
 Depreciation, Depletion and Amortization                                                                            81,031        65,150       15,881                            296,210       243,431        52,779  
                                                                                                                -------------------------------- -------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                    152,180       119,939       32,241                            560,834       453,985       106,849  
                                                                                                                -------------------------------- -------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                      
Operating Income                                                                                                     57,787                           64,256                          (6,469 )                                             243,262                          248,952                           (5,690 )
                                                                                                                                                                                                                                                                                                                      
Other Income (Expense):
 Interest Income                                                                                                        604                              312                             292                                                 1,909                            1,501                              408
 Other Interest Expense                                                                                             (10,584 )                        (10,566 )                                               (18)                          (42,232 )                        (39,745 )                         (2,487 )
                                                                                                                -------------------------------- -------------------------------- --------------------------------                     -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                      
Income Before Income Taxes                                                                                           47,807                           54,002                          (6,195 )                                             202,939                          210,708                           (7,769 )
Income Tax Expense                                                                                                   14,146        24,736      (10,590 )                                              81,370        95,317       (13,947 )
                                                                                                                -------------------------------- -------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
Net Income                                                                                                        $  33,661     $  29,266     $  4,395                          $ 121,569     $ 115,391     $   6,178  
                                                                                                                === ======= ==================== === ======= ==================== === ====== ====================                      === ======= ==================== === ======= ==================== === ======= ====================
                                                                                                                                                                                                                                                                                                                      
Net Income Per Share (Diluted)                                                                                    $    0.40     $    0.35     $   0.05                          $    1.43     $    1.37     $    0.06  
                                                                                                                === ======= ==================== === ======= ==================== === ====== ====================                      === ======= ==================== === ======= ==================== === ======= ====================
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                       
                                                                                                                                                       NATIONAL FUEL GAS COMPANY
                                                                                                                                                           AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                               SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                              (UNAUDITED)
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                         MIDSTREAM BUSINESSES
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                  
(Thousands of Dollars, except per share amounts)                                                                                                      Three Months Ended                                                                                                    Twelve Months Ended
                                                                                                                                                         September 30,                                                                                                         September 30,
                                                                                                                --------------------------------------------------------------------------------------                              -----------------------------------------------------------------------------------------
PIPELINE AND STORAGE SEGMENT                                                                                       2014         2013                 Variance                                     2014          2013                  Variance
------------------------------------------------                                                                ---------  -------------------- ---------  -------------------- ----------------------------                        ----------  -------------------- ----------  -------------------- -----------------------------
Revenues from External Customers                                                                                  $ 47,835                        $ 45,288                        $ 2,547                                             $ 200,664                        $ 178,184                        $ 22,480
Intersegment Revenues                                                                                               20,280       21,207        (927 )                                              83,744        89,424       (5,680 )
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
Total Operating Revenues                                                                                            68,115       66,495       1,620                            284,408       267,608       16,800  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                                                                                                                                                                                                                  
Operating Expenses:
Purchased Gas                                                                                                          596                             525                             71                                                 1,878                            1,573                             305
Operation and Maintenance                                                                                           18,714                          22,209                         (3,495 )                                              72,624                           82,351                          (9,727 )
Property, Franchise and Other Taxes                                                                                  6,232                           5,876                            356                                                23,884                           22,458                           1,426
Depreciation, Depletion and Amortization                                                                             9,469        8,997         472                             36,642        35,156        1,486  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                    35,011       37,607      (2,596 )                                             135,028       141,538       (6,510 )
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                                                                                                                                                                                                                  
Operating Income                                                                                                    33,104                          28,888                          4,216                                               149,380                          126,070                          23,310
                                                                                                                                                                                                                                                                                                                  
Other Income (Expense):
 Interest Income                                                                                                        96                              37                             59                                                   284                              193                              91
 Other Income                                                                                                          988                             256                            732                                                 1,423                            1,856                            (433 )
 Other Interest Expense                                                                                             (6,414 )                        (6,705 )                          291                            (26,428 )                        (26,248 )                          (180 )
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                                                                                                                                                                                                                  
Income Before Income Taxes                                                                                          27,774                          22,476                          5,298                                               124,659                          101,871                          22,788
Income Tax Expense                                                                                                   8,659        7,034       1,625                             47,100        38,626        8,474  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
Net Income                                                                                                        $ 19,115     $ 15,442     $ 3,673                          $  77,559     $  63,245     $ 14,314  
                                                                                                                === ====== ==================== === ====== ==================== === ===== ====================                      === ======= ==================== === ======= ==================== === ====== ====================
                                                                                                                                                                                                                                                                                                                  
Net Income Per Share (Diluted)                                                                                    $   0.22     $   0.18     $  0.04                          $    0.91     $    0.75     $   0.16  
                                                                                                                === ====== ==================== === ====== ==================== === ===== ====================                      === ======= ==================== === ======= ==================== === ====== ====================
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                      Three Months Ended                                                                                                    Twelve Months Ended
                                                                                                                                                         September 30,                                                                                                         September 30,
                                                                                                                -----------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------
GATHERING SEGMENT                                                                                                  2014         2013                 Variance                                     2014          2013                  Variance
------------------------------------------------                                                                ---------  -------------------- ---------  -------------------- ----------------------------                        ----------  -------------------- ----------  -------------------- -----------------------------
Revenues from External Customers                                                                                  $   (100 )                      $    456                        $  (556 )                                           $     673                        $   1,324                        $   (651 )
Intersegment Revenues                                                                                               21,396        9,835      11,561                             69,937        33,457       36,480  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
Total Operating Revenues                                                                                            21,296       10,291      11,005                             70,610        34,781       35,829  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                                                                                                                                                                                                                  
Operating Expenses:
 Operation and Maintenance                                                                                           1,784                           1,447                            337                                                 6,383                            4,727                           1,656
 Property, Franchise and Other Taxes                                                                                    43                              44                             (1 )                                                 167                              277                            (110 )
 Depreciation, Depletion and Amortization                                                                            2,004        1,138         866                              6,116         3,945        2,171  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                     3,831        2,629       1,202                             12,666         8,949        3,717  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                                                                                                                                                                                                                  
Operating Income                                                                                                    17,465                           7,662                          9,803                                                57,944                           25,832                          32,112
                                                                                                                                                                                                                                                                                                                  
Other Income (Expense):
 Interest Income                                                                                                        34                              22                             12                                                   120                               55                              65
 Other Income                                                                                                            2                               3                             (1 )                                                   7                                4                               3
 Other Interest Expense                                                                                               (506 )                          (589 )                           83                             (1,726 )                         (2,283 )                           557  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
                                                                                                                                                                                                                                                                                                                  
Income Before Income Taxes                                                                                          16,995                           7,098                          9,897                                                56,345                           23,608                          32,737
Income Tax Expense                                                                                                   6,474        3,219       3,255                             23,636        10,287       13,349  
                                                                                                                ------------------------------- ------------------------------- ------------------------------                      -------------------------------- -------------------------------- -------------------------------
Net Income                                                                                                        $ 10,521     $  3,879     $ 6,642                          $  32,709     $  13,321     $ 19,388  
                                                                                                                === ====== ==================== === ====== ==================== === ===== ====================                      === ======= ==================== === ======= ==================== === ====== ====================
                                                                                                                                                                                                                                                                                                                  
Net Income Per Share (Diluted)                                                                                    $   0.12     $   0.05     $  0.07                          $    0.39     $    0.16     $   0.23  
                                                                                                                === ====== ==================== === ====== ==================== === ===== ====================                      === ======= ==================== === ======= ==================== === ====== ====================
                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                        NATIONAL FUEL GAS COMPANY
                                                                                                                                                            AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                               (UNAUDITED)
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                          DOWNSTREAM BUSINESSES
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                          
(Thousands of Dollars, except per share amounts)                                                                                                       Three Months Ended                                                                                                    Twelve Months Ended
                                                                                                                                                          September 30,                                                                                                         September 30,
                                                                                                                ---------------------------------------------------------------------------------------                              ------------------------------------------------------------------------------------------
UTILITY SEGMENT                                                                                                    2014         2013                  Variance                                     2014          2013                  Variance
------------------------------------------------                                                                ---------  -------------------- ---------  -------------------- -----------------------------                        ----------  -------------------- ----------  -------------------- ------------------------------
Revenues from External Customers                                                                                  $ 79,295                        $ 77,108                        $  2,187                                             $ 831,156                        $ 730,319                        $ 100,837
Intersegment Revenues                                                                                                1,897        2,008         (111 )                                              18,462        16,020         2,442  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
Total Operating Revenues                                                                                            81,192       79,116        2,076                            849,618       746,339       103,279  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                    
Operating Expenses:
 Purchased Gas                                                                                                      22,893                          24,797                          (1,904 )                                             446,883                          362,250                           84,633
 Operation and Maintenance                                                                                          40,628                          34,940                           5,688                                               193,354                          177,597                           15,757
 Property, Franchise and Other Taxes                                                                                 9,795                           9,400                             395                                                44,738                           42,323                            2,415
 Depreciation, Depletion and Amortization                                                                           11,099       10,693          406                             43,594        42,729           865  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                    84,415       79,830        4,585                            728,569       624,899       103,670  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                    
Operating Income (Loss)                                                                                             (3,223 )                          (714 )                        (2,509 )                                             121,049                          121,440                             (391 )
                                                                                                                                                                                                                                                                                                                    
Other Income (Expense):
 Interest Income                                                                                                     2,805                           2,423                             382                                                 3,010                            3,417                             (407 )
 Other Income                                                                                                          510                             270                             240                                                 1,611                              970                              641
 Other Interest Expense                                                                                             (6,710 )                        (6,782 )                            72                            (27,693 )                        (29,076 )                          1,383  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                    
Income (Loss) Before Income Taxes                                                                                   (6,618 )                        (4,803 )                        (1,815 )                                              97,977                           96,751                            1,226
Income Tax Expense (Benefit)                                                                                        (6,091 )                        (5,465 )                          (626 )                                              33,918        31,065         2,853  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
Net Income                                                                                                        $   (527 )                      $    662     $ (1,189 )                                           $  64,059     $  65,686     $  (1,627 )
                                                                                                                === ====== ==================== === ====== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== === ======= ====================
                                                                                                                                                                                                                                                                                                                    
Net Income Per Share (Diluted)                                                                                    $  (0.01 )                      $   0.01     $  (0.02 )                                           $    0.75     $    0.78     $   (0.03 )
                                                                                                                === ====== ==================== === ====== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== === ======= ====================
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                       Three Months Ended                                                                                                    Twelve Months Ended
                                                                                                                                                          September 30,                                                                                                         September 30,
                                                                                                                ------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------
ENERGY MARKETING SEGMENT                                                                                           2014         2013                  Variance                                     2014          2013                  Variance
------------------------------------------------                                                                ---------  -------------------- ---------  -------------------- -----------------------------                        ----------  -------------------- ----------  -------------------- ------------------------------
Revenues from External Customers                                                                                  $ 28,658                        $ 29,707                        $ (1,049 )                                           $ 271,993                        $ 211,990                        $  60,003
Intersegment Revenues                                                                                                  221          305          (84 )                                               1,159         1,384          (225 )
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
Total Operating Revenues                                                                                            28,879       30,012       (1,133 )                                             273,152       213,374        59,778  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                    
Operating Expenses:
 Purchased Gas                                                                                                      26,717                          30,683                          (3,966 )                                             256,625                          200,226                           56,399
 Operation and Maintenance                                                                                           1,526                           1,609                             (83 )                                               6,176                            6,099                               77
 Property, Franchise and Other Taxes                                                                                     5                               9                              (4 )                                                  16                               86                              (70 )
 Depreciation, Depletion and Amortization                                                                               51           47            4                                197           123            74  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                    28,299       32,348       (4,049 )                                             263,014       206,534        56,480  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                    
Operating Income (Loss)                                                                                                580                          (2,336 )                         2,916                                                10,138                            6,840                            3,298
                                                                                                                                                                                                                                                                                                                    
Other Income (Expense):
 Interest Income                                                                                                        59                              34                              25                                                   173                              169                                4
 Other Income                                                                                                           26                              13                              13                                                   112                               66                               46
 Other Interest Expense                                                                                                 (8 )                            (8 )                             0                                (31 )                            (36 )                              5  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
                                                                                                                                                                                                                                                                                                                    
Income (Loss) Before Income Taxes                                                                                      657                          (2,297 )                         2,954                                                10,392                            7,039                            3,353
Income Tax Expense (Benefit)                                                                                            (4 )                        (1,145 )                         1,141                              3,761         2,450         1,311  
                                                                                                                ------------------------------- ------------------------------- -------------------------------                      -------------------------------- -------------------------------- --------------------------------
Net Income (Loss)                                                                                                 $    661     $ (1,152 )                      $  1,813                          $   6,631     $   4,589     $   2,042  
                                                                                                                === ====== ==================== === ====== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== === ======= ====================
                                                                                                                                                                                                                                                                                                                    
Net Income (Loss) Per Share (Diluted)                                                                             $   0.01     $  (0.01 )                      $   0.02                          $    0.08     $    0.05     $    0.03  
                                                                                                                === ====== ==================== === ====== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== === ======= ====================
                                                                                                                                                                                                                                                                                                                    
 
                                                                                                                                                                                          NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                              AND SUBSIDIARIES
                                                                                                                                                                                            
                                                                                                                                                                                  SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                                 (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                               
(Thousands of Dollars, except per share amounts)                                                                                                                         Three Months Ended                                                                                                                                       Twelve Months Ended
                                                                                                                                                                            September 30,                                                                                                                                            September 30,
                                                                                                                ---------------------------------------------------------------------------------------------------------------------------                              ---------------------------------------------------------------------------------------------------------------------------
ALL OTHER                                                                                                                2014                     2013                              Variance                                                2014                     2013                              Variance
------------------------------------------------                                                                ---------------------  -------------------- ---------------------  -------------------- -----------------------------------------                        ---------------------  -------------------- ---------------------  -------------------- -----------------------------------------
Total Operating Revenues                                                                                              $            738         $          1,880         $         (1,142 )                                               $          3,532         $          3,910         $           (378 )
                                                                                                                ------- -------------- -------------------- ------- -------------- -------------------- ------- -------------- --------------------                      ------- -------------- -------------------- ------- -------------- -------------------- ------- -------------- --------------------
Operating Expenses:
 Operation and Maintenance                                                                                                         223                                         355                                        (132 )                                                          1,098                                       1,263                                        (165 )
 Property, Franchise and Other Taxes                                                                                               175                                         100                                          75                                                              656                                         581                                          75
 Depreciation, Depletion and Amortization                                                                                           84                       33                       51                                           344                      577                     (233 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                   482                      488                       (6 )                                                          2,098                    2,421                     (323 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                         
Operating Income                                                                                                                   256                                       1,392                                      (1,136 )                                                          1,434                                       1,489                                         (55 )
                                                                                                                                                                                                                                                                                                                                                                                         
Other Income (Expense):
 Interest Income                                                                                                                    26                                          21                                           5                                                              106                                         115                                          (9 )
 Other Income (Loss)                                                                                                                42                                        (132 )                                       174                                                              448                                        (179 )                                       627
 Other Interest Expense                                                                                                             (4 )                                        (1 )                                        (3 )                                                             (6 )                                        (2 )                                        (4 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                         
Income Before Income Taxes                                                                                                         320                                       1,280                                        (960 )                                                          1,982                                       1,423                                         559
Income Tax Expense                                                                                                                 137                      393                     (256 )                                                            822                      529                      293  
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Net Income                                                                                                            $            183         $            887         $           (704 )                                               $          1,160         $            894         $            266  
                                                                                                                ======= ============== ==================== ======= ============== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
Net Income Per Share (Diluted)                                                                                        $           0.01         $           0.01         $ --                              $           0.01         $           0.01         $ --  
                                                                                                                ======= ============== ==================== ======= ============== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                         Three Months Ended                                                                                                                                       Twelve Months Ended
                                                                                                                                                                            September 30,                                                                                                                                            September 30,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE                                                                                                                2014                     2013                              Variance                                                2014                     2013                              Variance
------------------------------------------------                                                                ---------------------  -------------------- ---------------------  -------------------- -----------------------------------------                        ---------------------  -------------------- ---------------------  -------------------- -----------------------------------------
Revenues from External Customers                                                                                      $            230                            $            229                            $              1                                                 $            967                            $            887                            $             80
Intersegment Revenues                                                                                                              946                      957                      (11 )                                                          3,799                    3,419                      380  
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Total Operating Revenues                                                                                                         1,176                    1,186                      (10 )                                                          4,766                    4,306                      460  
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Operating Expenses:
 Operation and Maintenance                                                                                                       4,850                                       5,342                                        (492 )                                                         17,137                                      16,785                                         352
 Property, Franchise and Other Taxes                                                                                               124                                      (1,843 )                                     1,967                                                              485                                        (493 )                                       978
 Depreciation, Depletion and Amortization                                                                                          167                      199                      (32 )                                                            678                      799                     (121 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                 5,141                    3,698                    1,443                                        18,300                   17,091                    1,209  
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                         
Operating Loss                                                                                                                  (3,965 )                                    (2,512 )                                    (1,453 )                                                        (13,534 )                                   (12,785 )                                      (749 )
                                                                                                                                                                                                                                                                                                                                                                                         
Other Income (Expense):
 Interest Income                                                                                                                24,074                                      23,891                                         183                                                           96,838                                      95,141                                       1,697
 Other Income                                                                                                                    1,047                                         622                                         425                                                            5,860                                       1,980                                       3,880
 Interest Expense on Long-Term Debt                                                                                            (22,427 )                                   (23,042 )                                       615                                                          (90,194 )                                   (90,273 )                                        79
 Other Interest Expense                                                                                                         (1,246 )                                      (539 )                                      (707 )                                                         (4,237 )                                    (2,704 )                                    (1,533 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                         
Loss Before Income Taxes                                                                                                        (2,517 )                                    (1,580 )                                      (937 )                                                         (5,267 )                                    (8,641 )                                     3,374
Income Tax Expense (Benefit)                                                                                                     3,666                     (438 )                                     4,104                                          (993 )                                    (5,516 )                                     4,523  
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Net Loss                                                                                                              $         (6,183 )                          $         (1,142 )                          $         (5,041 )                                               $         (4,274 )                          $         (3,125 )                          $         (1,149 )
                                                                                                                ======= ============== ====================         ============== ==================== ======= ============== ====================                              ============== ==================== ======= ============== ====================         ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
Net Loss Per Share (Diluted)                                                                                          $          (0.07 )                          $          (0.02 )                          $          (0.05 )                                               $          (0.05 )                          $          (0.04 )                          $          (0.01 )
                                                                                                                ======= ============== ==================== ======= ============== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                         Three Months Ended                                                                                                                                       Twelve Months Ended
                                                                                                                                                                            September 30,                                                                                                                                            September 30,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS                                                                                                2014                     2013                              Variance                                                2014                     2013                              Variance
------------------------------------------------                                                                ---------------------  -------------------- ---------------------  -------------------- -----------------------------------------                        ---------------------  -------------------- ---------------------  -------------------- -----------------------------------------
Intersegment Revenues                                                                                                 $        (44,740 )                          $        (34,312 )                          $        (10,428 )                                               $       (177,101 )                          $       (143,704 )                          $        (33,397 )
                                                                                                                ------- -------------- -------------------- ------- -------------- -------------------- ------- -------------- --------------------                      ------- -------------- -------------------- ------- -------------- -------------------- ------- -------------- --------------------
Operating Expenses:
 Purchased Gas                                                                                                                 (21,373 )                                   (22,473 )                                     1,100                                                          (99,548 )                                  (103,617 )                                     4,069
 Operation and Maintenance                                                                                                     (23,367 )                                   (11,839 )                                   (11,528 )                                                        (77,553 )                                   (40,087 )                                   (37,466 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                               (44,740 )                                   (34,312 )                                   (10,428 )                                                       (177,101 )                                  (143,704 )                                   (33,397 )
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                         
Operating Income                                                                                                        --                              --                              --                                                   --                              --                              --
                                                                                                                                                                                                                                                                                                                                                                                         
Other Income (Expense):
 Interest Income                                                                                                               (24,849 )                                   (24,249 )                                      (600 )                                                        (98,270 )                                   (96,256 )                                    (2,014 )
 Other Interest Expense                                                                                                         24,849                   24,249                      600                                        98,270                   96,256                    2,014  
                                                                                                                ------------------------------------------- ------------------------------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Net Income                                                                                                            $ --         $ --         $ --                              $ --         $ --         $ --  
                                                                                                                        ============== ====================         ============== ==================== ======= ============== ====================                              ============== ====================         ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
Net Income Per Share (Diluted)                                                                                        $ --         $ --         $ --                              $ --         $ --         $ --  
                                                                                                                ======= ============== ==================== ======= ============== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                   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
                                                                                               2014                                   2013                                          (Decrease)                                    2014                                      2013                                             (Decrease)
                                                                                           --------------------------------                          --------------------------------                          --------------------------------                     --------------------------------                             --------------------------------                             ---------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                           
Capital Expenditures:
---------------------------
Exploration and Production                                                                   $ 158,340                      (1)                        $ 148,120                      (2)                        $ 10,220                                             $ 602,705                      (1)(2)                        $ 533,129                      (2)(3)                        $  69,576
Pipeline and Storage                                                                            74,884                      (1)                           15,144                      (2)                          59,740                                               139,821                      (1)(2)                           56,144                      (2)(3)                           83,677
Gathering                                                                                       44,561                      (1)                           19,944                      (2)                          24,617                                               137,799                      (1)(2)                           54,792                      (2)(3)                           83,007
Utility                                                                                         27,895                      (1)                           29,002                      (2)                          (1,107 )                                              88,810                      (1)(2)                           71,970                      (2)(3)                           16,840
Energy Marketing                                                                                    71                                     67                                     4                                264                                       595                                      (331 )
                                                                                           --------------------------------                          --------------------------------                          -------------------------------                      --------------------------------                             --------------------------------                             --------------------------------
Total Reportable Segments                                                                      305,751                                                   212,277                                                   93,474                                               969,399                                                      716,630                                                      252,769
All Other                                                                                          101                                                       215                                                     (114 )                                                 274                                                          307                                                          (33 )
Corporate                                                                                           19                                     76                                   (57 )                                                 234                                       160                                        74  
                                                                                           --------------------------------                          --------------------------------                          -------------------------------                      --------------------------------                             --------------------------------                             --------------------------------
 Total Capital Expenditures                                                                  $ 305,871                              $ 212,568                              $ 93,303                          $ 969,907                                 $ 717,097                                 $ 252,810  
                                                                                           === ======= ====================                          === ======= ====================                          === ====== ====================                      === ======= ====================                             === ======= ====================                             === ======= ====================
(1)     Capital expenditures for the quarter and year ended September 30,
                                              2014, include accounts payable and accrued liabilities related to
                                              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 have been excluded from the Consolidated
                                              Statement of Cash Flows at September 30, 2014, since they represent
                                              non-cash investing activities at that date.
                                               
(2)                                           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 Statement 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.
                                               
(3)                                           Capital expenditures for the year ended September 30, 2013, exclude
                                              capital expenditures of $38.9 million, $12.7 million, $12.7 million
                                              and $3.2 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, 2012 and paid during the year ended
                                              September 30, 2013. These amounts were excluded from the
                                              Consolidated Statements of Cash Flows at September 30, 2012, 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, 2013.
                                               
                                                                            
DEGREE DAYS
--------------------------------
                                                                                                                                                                                                                   
                                                                                                                                                                                                     Percent Colder
                                                                                                                                                                                                     (Warmer) Than:
Three Months Ended September 30                                                                 Normal                       2014                       2013                      Normal (1)                          Last Year (1)
--------------------------------                                                                ------                      -----                      -----                      ----------                      --------------------
                                                                                                                                                                                                                   
 Buffalo, NY                                                                                       162                        130                        168                          (19.8)                                    (22.6)
 Erie, PA                                                                                          124                        117                        132                           (5.6)                                    (11.4)
                                                                                                                                                                                                                   
Twelve Months Ended September 30
--------------------------------
                                                                                                                                                                                                                   
 Buffalo, NY                                                                                     6,617                      7,087                      6,139                             7.1                                      15.4
 Erie, PA                                                                                        6,147                      6,742                      5,888                             9.7                                      14.5
                                                                                                                                                                                                                   
(1) Percents compare actual 2014 degree days to normal
degree days and actual 2014 degree days to actual 2013 degree days.
                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                   NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                       AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                            EXPLORATION AND PRODUCTION INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                     Three Months Ended                                                                                                                                           Twelve Months Ended
                                                                                                                                                                                        September 30,                                                                                                                                                September 30,
                                                                                                                          -----------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                               Increase                                                                                                                                                    Increase
                                                                                                                               2014                              2013                                   (Decrease)                                     2014                             2013                                  (Decrease)
                                                                                                                          ------------------------------                      -------------------------------                      --------------------------------                     ------------------------------                      ------------------------------                      -------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                           
Gas Production/Prices:
----------------------------------------------------------
Production (MMcf)
 Appalachia                                                                                                                  40,456                                               28,116                                               12,340                                             139,097                                             100,633                                              38,464
 West Coast                                                                                                                     808                               819                               (11 )                                             3,210                            3,060                              150  
                                                                                                                          ------------------------------                      -------------------------------                      -------------------------------                      ------------------------------                      ------------------------------                      ------------------------------
Total Production                                                                                                             41,264                            28,935                            12,329                          142,307                          103,693                           38,614  
                                                                                                                          ==============================                      ===============================                      ===============================                      ==============================                      ==============================                      ==============================
                                                                                                                                                                                                                                                                                                                                                                                                           
Average Prices (Per Mcf)
 Appalachia                                                                                                                 $  2.84                                             $   3.26                                             $  (0.42 )                                           $  3.55                                             $  3.49                                             $  0.06
 West Coast                                                                                                                    6.42                                                 6.62                                                (0.20 )                                              6.75                                                6.61                                                0.14
  Weighted Average                                                                                                             2.91                                                 3.35                                                (0.44 )                                              3.62                                                3.58                                                0.04
  Weighted Average after Hedging                                                                                               3.19                                                 3.99                                                (0.80 )                                              3.56                                                4.10                                               (0.54 )
                                                                                                                                                                                                                                                                                                                                                                                                           
Oil Production/Prices:
----------------------------------------------------------
Production (Thousands of Barrels)
Appalachia                                                                                                                        8                                                    7                                                    1                                                  31                                                  28                                                   3
West Coast                                                                                                                      774                               710                                64                            3,005                            2,803                              202  
                                                                                                                          ------------------------------                      -------------------------------                      -------------------------------                      ------------------------------                      ------------------------------                      ------------------------------
Total Production                                                                                                                782                               717                                65                            3,036                            2,831                              205  
                                                                                                                          ==============================                      ===============================                      ===============================                      ==============================                      ==============================                      ==============================
                                                                                                                                                                                                                                                                                                                                                                                                           
Average Prices (Per Barrel)
 Appalachia                                                                                                                 $ 95.06                                             $ 105.96                                             $ (10.90 )                                           $ 96.34                                             $ 96.48                                             $ (0.14 )
 West Coast                                                                                                                   93.72                                               105.18                                               (11.46 )                                             98.25                                              103.14                                               (4.89 )
  Weighted Average                                                                                                            93.73                                               105.19                                               (11.46 )                                             98.23                                              103.07                                               (4.84 )
  Weighted Average after Hedging                                                                                              93.70                                                99.20                                                (5.50 )                                             95.55                                               98.21                                               (2.66 )
                                                                                                                                                                                                                                                                                                                                                                                                           
Total Production (Mmcfe)                                                                                                     45,956                            33,237                            12,719                          160,523                          120,679                           39,844  
                                                                                                                          ==============================                      ===============================                      ===============================                      ==============================                      ==============================                      ==============================
                                                                                                                                                                                                                                                                                                                                                                                                           
Selected Operating Performance Statistics:
----------------------------------------------------------
General & Administrative Expense per Mcfe (1)                                                                               $  0.34                                             $   0.45                                             $  (0.11 )                                           $  0.40                                             $  0.52                                             $ (0.12 )
Lease Operating and Transportation Expense per Mcfe (1)(2)                                                                  $  1.02                                             $   0.96                                             $   0.06                                             $  1.03                                             $  0.99                                             $  0.04
Depreciation, Depletion & Amortization per Mcfe (1)                                                                         $  1.76                                             $   1.96                                             $  (0.20 )                                           $  1.85                                             $  2.02                                             $ (0.17 )
(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 $0.49 and $0.34 per Mcfe
                                              for the three months ended September 30, 2014 and September 30,
                                              2013, respectively. Amounts include transportation expense of $0.46
                                              and $0.34 per Mcfe for the twelve months ended September 30, 2014
                                              and September 30, 2013, respectively.
 
                                                                NATIONAL FUEL GAS COMPANY
                                                                    AND SUBSIDIARIES
                                                                    
                                                         EXPLORATION AND PRODUCTION INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Hedging Summary for Fiscal 2015
                                                                                                                                    
                                                                                                                                   Average Hedge Price
                                                                    Volume
                                                                  ------------------------------------                             --------------------
Oil Swaps
  Midway Sunset (MWSS)                                                258,000                      BBL                           $ 92.10 / BBL
  Brent                                                               903,000                      BBL                           $ 98.42 / BBL
  NYMEX                                                               396,000                      BBL                           $ 90.14 / BBL
Total                                                               1,557,000                      BBL                           $ 95.27 / BBL
                                                                                                                                    
Gas Swaps
  NYMEX                                                            70,690,000                      MMBTU                         $ 4.16 / MMBTU
  Dominion Transmission Appalachian (DOM)                          24,840,000                      MMBTU                         $ 3.74 / MMBTU
  Southern California City Gate (SoCal)                             1,200,000                      MMBTU                         $ 4.35 / MMBTU
Fixed Price Physical Sales                                         16,700,000                      MMBTU                         $ 3.77 / MMBTU
Total                                                             113,430,000                      MMBTU                         $ 4.01 / MMBTU
                                                                                                                                    
Hedging Summary for Fiscal 2016
                                                                                                                                    
                                                                                                                                   Average Hedge Price
                                                                    Volume
                                                                  ------------------------------------                             --------------------
Oil Swaps
  MWSS                                                                 36,000                      BBL                           $ 92.10 / BBL
  Brent                                                               933,000                      BBL                           $ 95.18 / BBL
  NYMEX                                                               300,000                      BBL                           $ 86.09 / BBL
Total                                                               1,269,000                      BBL                           $ 92.95 / BBL
                                                                                                                                    
Gas Swaps
  NYMEX                                                            32,350,000                      MMBTU                         $ 4.24 / MMBTU
  DOM                                                              18,840,000                      MMBTU                         $ 3.78 / MMBTU
  Michigan Consolidated City Gate (Mich Con)                        9,000,000                      MMBTU                         $ 4.10 / MMBTU
  Dawn Ontario (Dawn)                                               5,490,000                      MMBTU                         $ 4.36 / MMBTU
Fixed Price Physical Sales                                         18,300,000                      MMBTU                         $ 3.77 / MMBTU
Total                                                              83,980,000                      MMBTU                         $ 4.03 / MMBTU
                                                                                                                                    
Hedging Summary for Fiscal 2017
                                                                                                                                    
                                                                                                                                   Average Hedge Price
                                                                    Volume
                                                                  ------------------------------------                             --------------------
Oil Swaps
  Brent                                                               384,000                      BBL                           $ 92.30 / BBL
                                                                                                                                    
Gas Swaps
  NYMEX                                                            23,130,000                      MMBTU                         $ 4.50 / MMBTU
  DOM                                                              12,720,000                      MMBTU                         $ 3.87 / MMBTU
  Mich Con                                                          3,000,000                      MMBTU                         $ 4.10 / MMBTU
  Dawn                                                              7,950,000                      MMBTU                         $ 4.14 / MMBTU
Fixed Price Physical Sales                                         18,250,000                      MMBTU                         $ 3.77 / MMBTU
Total                                                              65,050,000                      MMBTU                         $ 4.11 / MMBTU
                                                                                                                                    
Hedging Summary for Fiscal 2018
                                                                                                                                    
                                                                                                                                   Average Hedge Price
                                                                    Volume
                                                                  ------------------------------------                             --------------------
Oil Swaps
 Brent                                                                 75,000                      BBL                           $ 91.00 / BBL
                                                                                                                                    
Gas Swaps
 NYMEX                                                              5,550,000                      MMBTU                         $ 4.59 / MMBTU
Fixed Price Physical Sales                                          1,550,000                      MMBTU                         $ 3.77 / MMBTU
Total                                                               7,100,000                      MMBTU                         $ 4.41 / MMBTU
                                                                                                                                    
                                                                           
                                                                                                                                                                                                                                     
                                                                                                                NATIONAL FUEL GAS COMPANY
                                                                                                                    AND SUBSIDIARIES
                                                                                                                                                                                                                                     
                                                                                                         EXPLORATION AND PRODUCTION INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     
Gross Wells in Process of Drilling
--------------------------------------
Twelve Months Ended September 30, 2014
--------------------------------------
                                                                                                                                                                                                                                            Total
                                                                                                       East                                                                         West                                                   Company
                                                                                                      ------                                                                       ------                                           --------------------
Wells in Process - Beginning of Period
 Exploratory                                                                                           1.000                      (1)                                               0.000                                                          1.000
 Developmental                                                                                        71.000                      (1)(2)                                            0.000                                                         71.000
Wells Commenced
 Exploratory                                                                                           5.000                                                                        2.000                                                          7.000
 Developmental                                                                                        63.000                                                                       90.000                                                        153.000
Wells Completed
 Exploratory                                                                                           5.000                                                                        2.000                                                          7.000
 Developmental                                                                                        53.000                                                                       87.000                                                        140.000
Wells Plugged & Abandoned
 Exploratory                                                                                           0.000                                                                        0.000                                                          0.000
 Developmental                                                                                         2.000                                                                        1.000                                                          3.000
Wells in Process - End of Period
 Exploratory                                                                                           1.000                                                                        0.000                                                          1.000
 Developmental                                                                                        79.000                                                                        2.000                                                         81.000
(1)     Gross exploratory wells were increased by 1 and developmental wells
                                              were decreased by 1.
(2)                                           Beginning of year number has been adjusted to remove 4 developmental
                                              wells.
                                                                           
                                                                                                                                                                                                                                     
Net Wells in Process of Drilling
--------------------------------------
Twelve Months Ended September 30, 2014
--------------------------------------
                                                                                                                                                                                                                                            Total
                                                                                                       East                                                                         West                                                   Company
                                                                                                      ------                                                                       ------                                           --------------------
Wells in Process - Beginning of Period
 Exploratory                                                                                           1.000                      (1)                                               0.000                                                          1.000
 Developmental                                                                                        56.500                      (1)(2)                                            0.000                                                         56.500
Wells Commenced
 Exploratory                                                                                           4.832                                                                        1.533                                                          6.365
 Developmental                                                                                        63.000                                                                       87.720                                                        150.720
Wells Completed
 Exploratory                                                                                           4.832                                                                        1.533                                                          6.365
 Developmental                                                                                        53.000                                                                       84.720                                                        137.720
Wells Plugged & Abandoned
 Exploratory                                                                                           0.000                                                                        0.000                                                          0.000
 Developmental                                                                                         2.000                                                                        1.000                                                          3.000
Wells in Process - End of Period
 Exploratory                                                                                           1.000                                                                        0.000                                                          1.000
 Developmental                                                                                        64.500                                                                        2.000                                                         66.500
(1)     Net exploratory wells were increased by 1 and developmental wells
                                              were decreased by 1.
(2)                                           Beginning of year number has been adjusted to remove 4 developmental
                                              wells (3.5 net wells).
                                               
                                                                                                                              
                                                                                                                                                                                                                                                            
                                                                                                                            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, 2013                                                                                                                  1,238,738                                                   60,777                                           1,299,515
Extensions and Discoveries                                                                                                            446,821                                           --                                             446,821
Revisions of Previous Estimates                                                                                                        43,690                                                    1,358                                              45,048
Production                                                                                                                           (139,097 )                                                 (3,210 )                                          (142,307 )
Purchases of Minerals in Place                                                                                                         33,986                                           --                                              33,986
Sales of Minerals in Place                                                                                                                (76 )                                (103 )                           (179 )
                                                                                                                               -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
September 30, 2014                                                                                                                  1,624,062             58,822     1,682,884  
                                                                                                                               ============== ==================== ==================== ============== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                            
Proved Developed Reserves:
                                                                                                                                                                                                                                                            
September 30, 2013                                                                                                                    807,055                                                   59,862                                             866,917
September 30, 2014                                                                                                                  1,119,901                                                   57,907                                           1,177,808
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                   Oil Mbbl
                                                                                                                               -------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                     U.S.
                                                                                                                               -------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Appalachian                                              West Coast                                               Total
                                                                                                                                              Region                                Region                             Company
                                                                                                                               -------------------------------------------------------- -------------------------------------------------------- -------------------------------
Proved Developed and Undeveloped Reserves:
September 30, 2013                                                                                                                        283                                                   41,315                                              41,598
Extensions and Discoveries                                                                                                                 18                                                    1,521                                               1,539
Revisions of Previous Estimates                                                                                                           (17 )                                                 (1,677 )                                            (1,694 )
Production                                                                                                                                (31 )                                                 (3,005 )                                            (3,036 )
Purchases of Minerals in Place                                                                                                 --                                                       83                                                  83
Sales of Minerals in Place                                                                                                     --                (13 )                            (13 )
                                                                                                                               -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
September 30, 2014                                                                                                                        253             38,224        38,477  
                                                                                                                               ============== ==================== ==================== ============== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                            
Proved Developed Reserves:
                                                                                                                                                                                                                                                            
September 30, 2013                                                                                                                        283                                                   38,082                                              38,365
September 30, 2014                                                                                                                        253                                                   37,002                                              37,255
                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                          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
                                                                                 2014                              2013                                      (Decrease)                                2014                           2013                                  (Decrease)
                                                                               ------- --------------------                      -------------- --------------------                      ----------------------------                     ------- --------------------                      ------- --------------------                      -----------------------------
Firm Transportation - Affiliated                                                14,362                                                   11,064                                            3,298                                           110,327                                            97,702                                            12,625
Firm Transportation - Non-Affiliated                                           141,656                                                  137,533                                            4,123                                           620,944                                           478,103                                           142,841
Interruptible Transportation                                                       946                                 1,491                          (545 )                                           4,724                          3,997                            727  
                                                                               ------- --------------------                      -------------- --------------------                      ------ --------------------                      ------- --------------------                      ------- --------------------                      ------- --------------------
                                                                               156,964                               150,088                         6,876                        735,995                        579,802                        156,193  
                                                                               ======= ====================                      ============== ====================                      ====== ====================                      ======= ====================                      ======= ====================                      ======= ====================
                                                                                                                                                                                                                                                                                                                                                        
Gathering Volume - (MMcf)
                                                                                                                                         Three Months Ended                                                                                                                                       Twelve Months Ended
                                                                                                                                            September 30,                                                                                                                                            September 30,
                                                                               ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    Increase                                                                                                                                             Increase
                                                                                 2014                              2013                                      (Decrease)                                2014                           2013                                  (Decrease)
                                                                               ------- --------------------                      -------------- --------------------                      ----------------------------                     ------- --------------------                      ------- --------------------                      -----------------------------
Gathered Volume - Affiliated                                                    41,485                                26,678                        14,807                        138,726                         93,449                         45,277  
                                                                               ======= ====================                      ============== ====================                      ====== ====================                      ======= ====================                      ======= ====================                      ======= ====================
                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                        
Utility Throughput - (MMcf)
                                                                                                                                         Three Months Ended                                                                                                                                       Twelve Months Ended
                                                                                                                                            September 30,                                                                                                                                            September 30,
                                                                               ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    Increase                                                                                                                                             Increase
                                                                                 2014                              2013                                      (Decrease)                                2014                           2013                                  (Decrease)
                                                                               ------- --------------------                      -------------- --------------------                      ----------------------------                     ------- --------------------                      ------- --------------------                      -----------------------------
Retail Sales:
 Residential Sales                                                               3,628                                                    3,629                                               (1 )                                          60,101                                            52,753                                             7,348
 Commercial Sales                                                                  476                                                      461                                               15                                             8,834                                             7,486                                             1,348
 Industrial Sales                                                                   16                                   128                          (112 )                                             393                            947                           (554 )
                                                                               ------- --------------------                      -------------- --------------------                      ------ --------------------                      ------- --------------------                      ------- --------------------                      ------- --------------------
                                                                                 4,120                                                    4,218                                              (98 )                                          69,328                                            61,186                                             8,142
Off-System Sales                                                                   230                                           --                                              230                                             4,564                                             6,717                                            (2,153 )
Transportation                                                                  10,761                                 9,613                         1,148                         80,949                         69,149                         11,800  
                                                                               ------- --------------------                      -------------- --------------------                      ------ --------------------                      ------- --------------------                      ------- --------------------                      ------- --------------------
                                                                                15,111                                13,831                         1,280                        154,841                        137,052                         17,789  
                                                                               ======= ====================                      ============== ====================                      ====== ====================                      ======= ====================                      ======= ====================                      ======= ====================
                                                                                                                                                                                                                                                                                                                                                        
Energy Marketing Volume
                                                                                                                                         Three Months Ended                                                                                                                                       Twelve Months Ended
                                                                                                                                            September 30,                                                                                                                                            September 30,
                                                                               ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    Increase                                                                                                                                             Increase
                                                                                 2014                              2013                                      (Decrease)                                2014                           2013                                  (Decrease)
                                                                               ------- --------------------                      -------------- --------------------                      ----------------------------                     ------- --------------------                      ------- --------------------                      -----------------------------
Natural Gas (MMcf)                                                               6,846                                 6,608                           238                         52,694                         46,875                          5,819  
                                                                               ======= ====================                      ============== ====================                      ====== ====================                      ======= ====================                      ======= ====================                      ======= ====================
                                                                                              
                                                                                                                                                                                                                                        
                                                                                                                  NATIONAL FUEL GAS COMPANY
                                                                                                                      AND SUBSIDIARIES
                                                                                                       FISCAL 2015 EARNINGS GUIDANCE AND SENSITIVITIES
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                        
                                                                                                                                                                           Earnings per share sensitivity to changes
Fiscal 2015 (Diluted earnings per share guidance*)                                                                                                                              from prices used in guidance* ^
---------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                        
                                                                                                                                          $0.50 change per MMBtu gas                                                  $5 change per Bbl oil
                                                                                                                                 ---------------------------------------------                     ----------------------------------------------------------
                                                               Range                                                               Increase      Decrease                         Increase            Decrease
                                           --------------------------------------------                                          -------------------------------- ------------                     -------------------------------- -------------------------
                                                                                                                                                                                                                                        
Consolidated Earnings                          $  3.05                      - $  3.35                                             +  $ 0.25                        -  $ 0.25                        +  $ 0.05                        -          $       0.05
* Please refer to forward looking statement footnote beginning at
page 9 of document.
 
^ This sensitivity table is current as of November 6, 2014 and only
considers revenue from the Exploration and Production segment’s
crude oil and natural gas sales. This revenue is based upon pricing
used in the Company’s earnings forecast. For its fiscal 2015
earnings forecast, the Company is utilizing average NYMEX equivalent
commodity pricing, exclusive of basis differential, of $4.00 per
MMBtu for natural gas and $85 per Bbl for crude oil. The
sensitivities will become obsolete with the passage of time, changes
in Seneca’s production forecast, changes in basis differential, as
additional hedging contracts are entered into, and with the settling
of hedge contracts at their maturity.
 

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 4 of this report reconciles National Fuel’s reported GAAP earnings to Operating Results for the three and twelve months ended September 30, 2014 and 2013.

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, 2014 and 2013:

                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                 
                                                                                                                                              Three Months Ended                                                                                              Twelve Months Ended
                                                                                                                                                 September 30,                                                                                                   September 30,
                                                                                                          -------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
                                                                                                                2014                                 2013                                 2014                                 2013     
                                                                                                          ------------------------------------                      --------------------------------                      ------------------------------------                      --------------------------------
(in thousands)
Reported GAAP Earnings                                                                                          $  57,431                                             $  47,842                                                 $ 299,413                                             $ 260,001
  Depreciation, Depletion and Amortization                                                                        103,905                                                86,257                                                   383,781                                               326,760
  Interest and Other Income                                                                                        (5,464 )                                              (3,523 )                                                 (13,631 )                                              (9,032 )
  Interest Expense                                                                                                 23,050                                                23,983                                                    94,277                                                94,111
  Income Taxes                                                                                                     26,987                                                28,334                                                   189,614                                               172,758
  Regulatory adjustment - Utility segment                                                                  --                              7,200                         --                              7,500  
                                                                                                          ------------------------------------                      --------------------------------                      ------------------------------------                      --------------------------------
Adjusted EBITDA                                                                                                 $ 205,909                          $ 190,093                              $ 953,454                          $ 852,098  
                                                                                                          ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      === ======= ====================
                                                                                                                                                                                                                                                                                                 
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA                                                                            $  42,573                                             $  37,885                                                 $ 186,022                                             $ 161,226
Gathering Adjusted EBITDA                                                                                          19,469                              8,800                                 64,060                             29,777  
                                                                                                          ------------------------------------                      --------------------------------                      ------------------------------------                      --------------------------------
Total Midstream Businesses Adjusted EBITDA                                                                         62,042                                                46,685                                                   250,082                                               191,003
Exploration and Production Adjusted EBITDA                                                                        138,818                                               129,406                                                   539,472                                               492,383
Utility Adjusted EBITDA                                                                                             7,876                                                17,179                                                   164,643                                               171,669
Energy Marketing Adjusted EBITDA                                                                                      631                                                (2,289 )                                                  10,335                                                 6,963
Corporate and All Other Adjusted EBITDA                                                                            (3,458 )                                                (888 )                                                 (11,078 )                                              (9,920 )
                                                                                                          ------------------------------------                      --------------------------------                      ------------------------------------                      --------------------------------
Total Adjusted EBITDA                                                                                           $ 205,909                          $ 190,093                              $ 953,454                          $ 852,098  
                                                                                                          ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      === ======= ====================
                                                                    
                                                                                                                                                                     
                                                                                  NATIONAL FUEL GAS COMPANY
                                                                                      AND SUBSIDIARIES
                                                                                                                                                                     
                                                                                                                                                                     
Quarter Ended September 30 (unaudited)                                                                        2014                                         2013
--------------------------------------                                                                ------------------  --------------------                      -----------------------
                                                                                                                                                                     
 Operating Revenues                                                                                       $   366,623,000                                 $   338,863,000
                                                                                                      ===== ============= ====================                      ========== =============
                                                                                                                                                                     
 Net Income Available for Common Stock                                                                    $    57,431,000                                 $    47,842,000
                                                                                                      ===== ============= ====================                      ========== =============
                                                                                                                                                                     
 Earnings Per Common Share:
  Basic                                                                                                   $          0.68                                 $          0.57
                                                                                                      ===== ============= ====================                      ========== =============
  Diluted                                                                                                 $          0.68                                 $          0.57
                                                                                                      ===== ============= ====================                      ========== =============
                                                                                                                                                                     
 Weighted Average Common Shares:
  Used in Basic Calculation                                                                                    84,126,542                                      83,628,686
                                                                                                      ========================================                      =========================
  Used in Diluted Calculation                                                                                  85,062,410                                      84,502,703
                                                                                                      ========================================                      =========================
                                                                                                                                                                     
Twelve Months Ended September 30
(unaudited)
--------------------------------------
                                                                                                                                                                     
 Operating Revenues                                                                                       $ 2,113,081,000                                 $ 1,829,551,000
                                                                                                      ===== ============= ====================                      ========== =============
                                                                                                                                                                     
 Net Income Available for Common Stock                                                                    $   299,413,000                                 $   260,001,000
                                                                                                      ===== ============= ====================                      ========== =============
                                                                                                                                                                     
 Earnings Per Common Share:
  Basic                                                                                                   $          3.57                                 $          3.11
                                                                                                      ===== ============= ====================                      ========== =============
  Diluted                                                                                                 $          3.52                                 $          3.08
                                                                                                      ===== ============= ====================                      ========== =============
                                                                                                                                                                     
 Weighted Average Common Shares:
  Used in Basic Calculation                                                                                    83,929,989                                      83,518,857
                                                                                                      ========================================                      =========================
  Used in Diluted Calculation                                                                                  84,952,347                                      84,341,220
                                                                                                      ========================================                      =========================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20141106006901r1&sid=cmtx6&distro=nx&lang=en

SOURCE: National Fuel Gas Company

National Fuel Gas Company 
Analyst: 
Brian M. Welsch, 716-857-7875 
Investor Relations 
or 
David P. Bauer, 716-857-7318 
Treasurer 
or 
Media: 
Donna L. DeCarolis, 716-857-7872


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