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 National Fuel Reports First Quarter Earnings
   Thursday, February 02, 2017 4:30:03 PM ET

National Fuel Gas Company ("National Fuel" or the "Company") (NFG ) today announced consolidated results for the fiscal first quarter ended December 31, 2016.

FISCAL 2017 FIRST QUARTER SUMMARY

-- Consolidated net income of $88.9 million or $1.04 per share compared to a consolidated net loss of $189.1 million or $2.23 per share in the prior year

-- Adjusted EBITDA of $228.3 million, up from $204.8 million in the prior year (non-GAAP reconciliation on page 21)

-- Net production of 44.9 Bcfe, an 18% increase from prior year and 13% increase from the fiscal 2016 fourth quarter

-- Seneca lease operating and transportation expense of $0.88 per Mcfe, down $0.15 per Mcfe or 15% from the prior year



-- Seneca G&A expense of $0.29 per Mcfe, down $0.23 per Mcfe or 44% from prior year

-- Seneca DD&A expense of $0.65 per Mcfe, down $0.51 per Mcfe or 44% from the prior year

-- Gathering revenues of $27.9 million on 50.6 Bcf of throughput, up $9.1 million from the prior year

-- Utility net income up $2.6 million or $0.03 per share on weather that was more than 17% colder than last year

-- Company is raising and tightening fiscal 2017 earnings guidance to a range of $3.10 to $3.30 per share

OPERATING RESULTS
                                                                
                                                                                                                         Three Months Ended
                                                                                                                            December 31,
(in thousands except per share amounts)                                                            2016                                  2015
                                                                                    -----------------------------------                     -------------------------------------
Reported GAAP earnings (loss)                                                            $ 88,908                                                $ (189,109 )
 Items impacting comparability:
   Impairment of oil and gas properties (E&P)                                                                                                       435,451
   Tax impact of impairment of oil and gas properties                                                                                              (182,889 )
   Joint development agreement professional fees (E&P)                                                                                                4,682
   Tax impact of joint development agreement professional fees                                                                    (1,966 )
                                                                                    -----------------------------------                     ------------------------------------
Operating Results                                                                        $ 88,908                             $   66,169  
                                                                                    ====== ====== ====================                      ====== ======== ====================
                                                                                                                                             
Reported GAAP earnings (loss) per share                                                  $   1.04                                                $    (2.23 )
 Items impacting comparability:
   Impairment of oil and gas properties (E&P)                                                                                                          5.12
   Tax impact of impairment of oil and gas properties                                                                                                 (2.15 )
   Joint development agreement professional fees (E&P)                                                                                                 0.06
   Tax impact of joint development agreement professional fees                                                                     (0.02 )
                                                                                    -----------------------------------                     ------------------------------------
Operating Results per diluted share                                                      $   1.04                             $     0.78  
                                                                                    ====== ====== ====================                      ====== ======== ====================

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: "Our 2017 fiscal year is off to a great start. Aside from our pipeline and storage segment, where earnings were down modestly, each of the other segments improved its financial performance over the prior year. We are particularly pleased that natural gas prices increased to levels that allowed Seneca to return wells to production. Seneca’s increased production, and the associated throughput on our gathering systems, were the main drivers that allowed us to exceed our guidance.

"We expect to keep moving forward with our plans to build our Northern Access pipeline by the middle of next fiscal year. In the meantime, our efforts will remain focused on the efficient development of our Marcellus acreage to prepare for the Northern Access capacity while continuing to evaluate our opportunities in the Utica Shale on the very same acreage. Together, these stacked formations provide plenty of running room on our acreage and will fuel our growth for an extended period."

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form on pages 7 and 8 of this report. It may be helpful to refer to those tables while reviewing this discussion. Note that management defines Operating Results as reported GAAP earnings before items impacting comparability and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, depreciation and amortization, interest and other income, impairments, items impacting comparability, and income taxes.

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.

                                                                        Three Months Ended
                                                                                              December 31,
                                                             -------------------------------------------------------------------------------
(in thousands except per share amounts)                         2016          2015         Variance
                                                             ------------------------------- --------------------------------- -------------
Net Income / (Loss)                                          $  35,080    $ (237,086 )      $ 272,166
Net Income / (Loss) Per Share (Diluted)                      $    0.41                       $    (2.80 )                         $    3.21
Adjusted EBITDA                                              $ 102,476                       $   91,140                           $  11,336

Net income in the Exploration and Production segment in the first quarter was $35.1 million or $0.41 per share, compared to a net loss of $237.1 million or $2.80 per share in the prior year first quarter, an increase of $272.2 million, or $3.21 per share. Excluding the impact of last year’s impairment charge, the increase in the Exploration and Production segment’s first quarter earnings is mainly due to higher natural gas production and lower operating expenses, offset partially by a decrease in oil production and lower realized oil and natural gas prices after the impact of hedging. In the prior year first quarter, Seneca recorded a $435.5 million ($252.6 million after-tax) ceiling test impairment charge to reduce the value of Seneca’s oil and gas properties. There were no ceiling test impairment charges in this year’s first quarter.

The full cost method of accounting requires that Seneca perform a quarterly "ceiling test" to compare the present value of future revenues from its oil and natural gas reserves based on an unweighted arithmetic average of the first day of the month oil and gas prices for each month within the 12-month period prior to the end of the reporting period ("the ceiling") with the book value of those reserves at the balance sheet date. If the book value of the reserves exceeds the ceiling, a non-cash impairment charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling. At December 31, 2016, the ceiling exceeded the book value of the oil and gas properties by approximately $71.5 million. While possible, Seneca does not expect to incur any impairment charges in fiscal 2017 due to the improvement in oil and gas prices and lower lease operating expenses and development costs.

Seneca’s first quarter net production was 44.9 billion cubic feet equivalent ("Bcfe"), an increase of 6.9 Bcfe or 18 percent versus the prior year first quarter, and 5.1 Bcfe or 13 percent versus the fourth quarter of fiscal 2016. Net natural gas production increased 7.0 Bcf or 21 percent versus the prior year due mainly to higher natural gas production in Appalachia. An improvement in local natural gas pricing in Pennsylvania allowed Seneca to produce most of its available production volumes since November 1, 2016, selling 8.6 Bcf (net) in the daily spot markets and under new seasonal firm sales agreements during the quarter. Seneca voluntarily curtailed a modest 3.5 Bcf (net) of natural gas production during the quarter, which was a decrease from the 14.6 Bcf (net) in the prior year first quarter. For the remainder of fiscal 2017, Seneca has entered into an additional 6.0 Bcf (net) of seasonal firm sales agreements that will further reduce its daily local spot market exposure.

Seneca’s crude oil production decreased 27 thousand barrels ("Mbbl") or 4 percent due mainly to the lingering impact of a disruption in steam flood operations in the North Midway Sunset field in early fiscal 2016. Field production at North Midway Sunset is expected to return to pre-disruption levels in the second quarter of fiscal 2017.

Seneca’s average realized natural gas price, after the impact of hedging, for the first quarter was $2.97 per thousand cubic feet ("Mcf"), a decrease of $0.19 per Mcf versus the prior year. Seneca’s average realized oil price, after the impact of hedging, was $54.71 per barrel ("Bbl"), a decrease of $5.05 per Bbl. Seneca’s average realized natural gas and oil prices benefited from an uplift of $0.58 per Mcf and $10.89 per Bbl, respectively, from financial hedges settled during the quarter. At the midpoint of Seneca’s fiscal 2017 production guidance range, Seneca is 82 percent and 55 percent hedged on projected natural gas and oil production, respectively, for the remainder of fiscal 2017 (see page 5 for earnings guidance update).

Depreciation, depletion and amortization ("DD&A") expense decreased $15.0 million due to lower per unit DD&A, offset partially by the impact of higher production. Seneca’s per unit DD&A decreased by $0.51 per Mcf equivalent ("Mcfe") to $0.65 per Mcfe due to a lower depletable fixed asset balance resulting mainly from the ceiling test impairment charges recorded during the prior four quarters.

Seneca’s General & Administrative ("G&A") expense decreased $7.0 million due to lower personnel costs and nonrecurring professional fees recorded in the prior year. In the prior year first quarter, Seneca incurred $4.7 million of professional and legal expenses relating to the joint development agreement that Seneca entered into in December 2015. Seneca’s per unit of production G&A expense for the quarter was $0.29 per Mcfe, a decrease of $0.23 per Mcfe or 44 percent from the prior year.

Lease operating and transportation expense ("LOE") increased $0.7 million due mainly to higher production, which was partially offset by lower per unit LOE expense. Per unit LOE expense decreased from $1.03 per Mcfe to $0.88 per Mcfe. The $0.15 per Mcfe improvement is largely the result of higher Appalachian natural gas production, which carries lower LOE costs relative to Seneca’s California oil production, as well as a general reduction in well repair and maintenance costs across Seneca’s California and Appalachia divisions.

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.

                                                                        Three Months Ended
                                                                                                                 December 31,
                                                                                  ---------------------------------------------------------------------------
(in thousands except per share amounts)                                              2016        2015       Variance
                                                                                  ------------------------------ ------------------------------ -------------
Net Income / (Loss)                                                               $ 19,368    $ 21,276     $ (1,908 )
Net Income / (Loss) Per Share (Diluted)                                           $   0.23                       $   0.25                        $  (0.02 )
Adjusted EBITDA                                                                   $ 48,014                       $ 50,741                        $ (2,727 )

The Pipeline and Storage segment’s first quarter earnings decreased from the prior year due primarily to higher Operation and Maintenance ("O&M") expense and lower Other Income. O&M expense increased $2.6 million due to higher personnel costs and an increase in expenses associated with the operation of the segment’s expanded compressor facilities. Other Income decreased $0.9 million as the Company recorded lower allowance for funds used during construction ("AFUDC") following the completion of the expansion projects that were placed in-service during the prior year first quarter.

Operating revenues for the Pipeline & Storage segment were relatively flat when compared to the prior year first quarter. The increase in revenues resulting from a full quarter of revenue from Supply Corporation’s Northern Access 2015 project and Empire’s Tuscarora Lateral Project, which were placed in-service during the prior year first quarter, were more than offset by a reduction in Supply Corporation and Empire’s rates that went into effect following recent rate case settlements.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Corporation’s subsidiary limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region which currently delivers Seneca’s gross Appalachian production to the interstate pipeline system.

                                                                       Three Months Ended
                                                                                                                December 31,
                                                                                  -------------------------------------------------------------------------
(in thousands except per share amounts)                                              2016        2015      Variance
                                                                                  ------------------------------ ------------------------------ -----------
Net Income / (Loss)                                                               $ 10,981    $  4,921       $ 6,060
Net Income / (Loss) Per Share (Diluted)                                           $   0.13                       $   0.06                          $  0.07
Adjusted EBITDA                                                                   $ 25,101                       $ 16,458                          $ 8,643

The Gathering segment’s first quarter earnings increased $6.1 million or 123 percent versus the prior year on higher revenues. Operating revenues increased $9.1 million as the increase in Seneca’s gross Appalachian natural gas production, which includes production from joint development wells, helped drive higher volumes across the Company’s gathering systems. The Gathering segment transported 50.6 Bcf on its systems in the first quarter, up 16.8 Bcf or 50 percent from the prior year. While operating revenues were up 48 percent for the quarter, operating expenses increased only 2 percent versus the prior year.

Downstream Businesses

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation ("Distribution"), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

                                                                       Three Months Ended
                                                                                                                December 31,
                                                                                  -------------------------------------------------------------------------
(in thousands except per share amounts)                                              2016        2015      Variance
                                                                                  ------------------------------ ------------------------------ -----------
Net Income / (Loss)                                                               $ 21,175    $ 18,606       $ 2,569
Net Income / (Loss) Per Share (Diluted)                                           $   0.25                       $   0.22                          $  0.03
Adjusted EBITDA                                                                   $ 52,331                       $ 45,918                          $ 6,413

The Utility segment’s earnings increased $2.6 million or 14 percent due mainly to colder weather, higher customer usage and the positive impact of routine regulatory adjustments, offset partially by higher O&M and DD&A expenses. Weather in Distribution’s Pennsylvania service territory was 17.9 percent colder on average than last year, resulting in higher retail residential and transportation customer throughput and revenues. In New York, the impact of weather variations on earnings is largely mitigated by that jurisdiction’s weather normalization clause. O&M expense increased $2.9 million versus the prior year due mainly to higher personnel costs.

Energy Marketing Segment

The Energy Marketing segment’s operations are carried out by National Fuel Resources, Inc. ("NFR"). 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.

                                                                      Three Months Ended
                                                                                                               December 31,
                                                                                  -----------------------------------------------------------------------
(in thousands except per share amounts)                                             2016       2015      Variance
                                                                                  ----------------------------- ----------------------------- -----------
Net Income / (Loss)                                                               $ 1,782    $ 1,223       $   559
Net Income / (Loss) Per Share (Diluted)                                           $  0.02                       $  0.01                          $  0.01
Adjusted EBITDA                                                                   $ 2,846                       $ 1,846                          $ 1,000

The Energy Marketing segment’s first quarter earnings increased $0.6 million or 46 percent due to higher margins. NFR’s margins were positively impacted by colder weather, which increased retail customer usage.

Corporate and All Other

The Corporate and All Other category earnings of $0.5 million or $0.00 per share for the quarter ended December 31, 2016, compares to earnings of $2.0 million or $0.03 per share in the prior year first quarter. The decrease is due to higher corporate operating expenses and higher income taxes.

EARNINGS GUIDANCE

The Company is revising its earnings guidance for fiscal 2017 to a range of $3.10 to $3.30 per share. The Company is also updating fiscal 2017 capital expenditure and production guidance and revising some of its Exploration & Production forecast assumptions.

                                            Updated FY 2017 Guidance    Previous FY 2017 Guidance
                                                               ------------------------                      -------------------------
Consolidated Earnings per Share                                     $3.10 to $3.30                                 $2.85 to $3.15
                                                                                                              
Capital Expenditures (Millions)
    Exploration & Production (1)                                      $180 - $220                                    $180 - $220
    Pipeline & Storage                                                $200 - $250                                    $390 - $440
    Gathering                                                          $65 - $75                                      $65 - $75
    Utility                                                           $90 - $100                                     $90 - $100
    Consolidated Capital Expenditures                                 $535 - $645                                    $725 - $835
                                                                                                              
Exploration & Production Segment Guidance
    NYMEX Natural Gas Price Assumption                                   $3.25                                          $3.25
    NYMEX Crude Oil Price Assumption                                    $55.00                                         $53.00
                                                                                                              
    Production (Bcfe)
    East Division - Appalachia                                        135 to 153                                     125 to 148
    West Division - California                                         20 to 22                                       20 to 22
    Total Production                                                  155 to 175                                     145 to 170
                                                                                                              
    E&P Operating Costs ($/Mcfe)
    LOE                                                              $0.95 - $1.05                                  $0.95 - $1.05
    G&A                                                              $0.35 - $0.40                                  $0.35 - $0.40
    DD&A                                                             $0.65 - $0.70                                  $0.65 - $0.75
(1)   Net of initial conveyance proceeds received from joint development
                         partner for working interest in joint development wells

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, February 3, 2017, 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 NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 877-201-0168, using conference ID number "47888632." For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 855-859-2056 or 404-537-3406, using conference ID number "47888632." Both the webcast and telephonic replay will be available until the close of business on Friday, February 10, 2017.

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

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: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in 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; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the price of natural gas or oil; 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; 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; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; 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 DECEMBER 31, 2016
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                    Upstream                                                                            Midstream                                                                                                      Downstream
                                                                                                                                                                                                       Businesses                                                                                                      Businesses
                                                                                                       --------------------------------                        ------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                  Exploration &                                            Pipeline &                                                                                                                                                                Energy                                                Corporate /
(Thousands of Dollars)                                                                                             Production                             Storage                             Gathering                             Utility                             Marketing                            All Other                           Consolidated*
                                                                                                       ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
First quarter 2016 GAAP earnings                                                                          $ (237,086 )                                              $ 21,276                                                $  4,921                                                $ 18,606                                                $  1,223                                                $  1,951                                                $ (189,109 )
Items impacting comparability:
Impairment of oil and gas producing properties                                                               435,451                                                                                                                                                                                                                                                                                                                                           435,451
Tax impact of impairment of oil and gas producing properties                                                (182,889 )                                                                                                                                                                                                                                                                                                                                        (182,889 )
Joint development agreement professional fees                                                                  4,682                                                                                                                                                                                                                                                                                                                                             4,682
Tax impact of joint development agreement professional fees                                                   (1,966 )                                                                                                                         (1,966 )
                                                                                                       ---------------------------------- -------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------
First quarter 2016 operating results                                                                          18,192                                                  21,276                                                   4,921                                                  18,606                                                   1,223                                                   1,951                                                    66,169
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Drivers of operating results
Higher (lower) crude oil prices                                                                               (2,367 )                                                                                                                                                                                                                                                                                                                                          (2,367 )
Higher (lower) natural gas prices                                                                             (5,063 )                                                                                                                                                                                                                                                                                                                                          (5,063 )
Higher (lower) natural gas production                                                                         14,417                                                                                                                                                                                                                                                                                                                                            14,417
Higher (lower) crude oil production                                                                           (1,061 )                                                                                                                                                                                                                                                                                                                                          (1,061 )
Lower (higher) lease operating and transportation expenses                                                      (446 )                                                                                                                                                                                                                                                                                                                                            (446 )
Lower (higher) depreciation / depletion                                                                        9,737                                                     386                                                                                                            (965 )                                                                                                                                                                   9,158
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Higher (lower) gathering and processing revenues                                                                                                                                                                               5,916                                                                                                                                                                                                                             5,916
Lower (higher) other operating expenses                                                                        1,880                                                  (1,722 )                                                  (313 )                                                (1,872 )                                                                                                          (611 )                                                  (2,638 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Colder weather                                                                                                                                                                                                                                                                         3,327                                                                                                                                                                     3,327
Higher usage                                                                                                                                                                                                                                                                           1,480                                                                                                                                                                     1,480
Regulatory true-up adjustments                                                                                                                                                                                                                                                         1,314                                                                                                                                                                     1,314
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Higher (lower) margins                                                                                                                                                                                                                                                                                                                           596                                                                                                               596
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Higher (lower) AFUDC**                                                                                                                                                  (895 )                                                                                                                                                                                                                                                                                    (895 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Lower (higher) interest expense                                                                                  688                                                                                                             635                                                                                                                                                                                                                             1,323
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Lower (higher) income tax expense / effective tax rate                                                          (529 )                                                                                                                                                                                                                                                                                (1,148 )                                                  (1,677 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
All other / rounding                                                                                            (368 )                                323              (178 )                               (715 )                                (37 )                                330                (645 )
                                                                                                       ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ------------------------------------
First quarter 2017 GAAP earnings                                                                          $   35,080          $ 19,368          $ 10,981          $ 21,175          $  1,782          $    522          $   88,908  
                                                                                                       ==== ======== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
* 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 DECEMBER 31, 2016
                                                                                                                                                                                                                                   (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                              Upstream                                                                            Midstream                                                                                                         Downstream
                                                                                                                                                                                 Businesses                                                                                                         Businesses
                                                                                  -----------------------------                        ----------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                            Exploration &                                           Pipeline &                                                                                                                                                                    Energy                                                     Corporate /
                                                                                             Production                            Storage                               Gathering                              Utility                              Marketing                                 All Other                              Consolidated*
                                                                                  ---------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
First quarter 2016 GAAP earnings                                                     $ (2.80 )                                               $    0.25                                                 $    0.06                                                $   0.22                                                 $    0.01                                                $           0.03                                                $  (2.23 )
Items impacting comparability:
Impairment of oil and gas producing properties                                          5.12                                                                                                                                                                                                                                                                                                                                                          5.12
Tax impact of impairment of oil and gas producing properties                           (2.15 )                                                                                                                                                                                                                                                                                                                                                       (2.15 )
Joint development agreement professional fees                                           0.06                                                                                                                                                                                                                                                                                                                                                          0.06
Tax impact of joint development agreement professional fees                            (0.02 )                                                                                                                                      (0.02 )
                                                                                  ------------------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------------- ----------------------------------
First quarter 2016 operating results                                                    0.21                                                      0.25                                                      0.06                                                    0.22                                                      0.01                                                            0.03                                                    0.78
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Drivers of operating results
Higher (lower) crude oil prices                                                        (0.03 )                                                                                                                                                                                                                                                                                                                                                       (0.03 )
Higher (lower) natural gas prices                                                      (0.06 )                                                                                                                                                                                                                                                                                                                                                       (0.06 )
Higher (lower) natural gas production                                                   0.17                                                                                                                                                                                                                                                                                                                                                          0.17
Higher (lower) crude oil production                                                    (0.01 )                                                                                                                                                                                                                                                                                                                                                       (0.01 )
Lower (higher) lease operating and transportation expenses                             (0.01 )                                                                                                                                                                                                                                                                                                                                                       (0.01 )
Lower (higher) depreciation / depletion                                                 0.11                                            --                                                                                                             (0.01 )                                                                                                                                                                            0.10
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Higher (lower) gathering and processing revenues                                                                                                                                                            0.07                                                                                                                                                                                                                                      0.07
Lower (higher) other operating expenses                                                 0.02                                                     (0.02 )                                          --                                                   (0.02 )                                                                                                                   (0.01 )                                                 (0.03 )
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Colder weather                                                                                                                                                                                                                                                      0.04                                                                                                                                                                              0.04
Higher usage                                                                                                                                                                                                                                                        0.02                                                                                                                                                                              0.02
Regulatory true-up adjustments                                                                                                                                                                                                                                      0.02                                                                                                                                                                              0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Higher (lower) margins                                                                                                                                                                                                                                                                                                        0.01                                                                                                                    0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Higher (lower) AFUDC**                                                                                                                           (0.01 )                                                                                                                                                                                                                                                                                             (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Lower (higher) interest expense                                                         0.01                                                                                                                0.01                                                                                                                                                                                                                                      0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Lower (higher) income tax expense / effective tax rate                                 (0.01 )                                                                                                                                                                                                                                                                                               (0.01 )                                                 (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                              
All other / rounding                                                                    0.01                0.01               (0.01 )                              (0.02 )                       --                     (0.01 )                              (0.02 )
                                                                                  ------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ---------------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------------ -------------------- ----------------------------------
First quarter 2017 GAAP earnings                                                     $  0.41           $    0.23           $    0.13          $   0.25           $    0.02          $ --          $   1.04  
                                                                                  ==== ===== ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ====== ====== ==================== ==================== ======= ======= ==================== ==================== ====== ============== ==================== ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                              
* 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
                                                                                                               December 31,
                                                                                                                (Unaudited)
                                                                      -----------------------------------------------------------------------------------------------
SUMMARY OF OPERATIONS                                                                 2016                                   2015
------------------------------------------------                      ----------------------------------   -------------------- ----------------------------------
Operating Revenues:
 Utility and Energy Marketing Revenues                                      $ 207,780                                                $  168,832
 Exploration and Production and Other Revenues                                161,694                                                   152,884
 Pipeline and Storage and Gathering Revenues                                   53,026                                 53,479  
                                                                      ------------------------------------                      ------------------------------------
                                                                              422,500                                                   375,195
Operating Expenses:
 Purchased Gas                                                                 70,243                                                    42,068
 Operation and Maintenance:
       Utility and Energy Marketing                                            50,422                                                    47,549
       Exploration and Production and Other                                    30,461                                                    45,575
       Pipeline and Storage and Gathering                                      22,660                                                    19,568
 Property, Franchise and Other Taxes                                           20,379                                                    20,357
 Depreciation, Depletion and Amortization                                      56,196                                                    70,551
 Impairment of Oil and Gas Producing Properties                        --                                435,451  
                                                                      ------------------------------------                      ------------------------------------
                                                                              250,361                                                   681,119
                                                                                                                                 
Operating Income (Loss)                                                       172,139                                                  (305,924 )
                                                                                                                                 
Other Income (Expense):
 Interest Income                                                                1,600                                                     1,799
 Other Income                                                                   1,614                                                     2,418
 Interest Expense on Long-Term Debt                                           (29,103 )                                                 (30,372 )
 Other Interest Expense                                                          (910 )                                                  (1,380 )
                                                                      ------------------------------------                      ------------------------------------
                                                                                                                                 
Income (Loss) Before Income Taxes                                             145,340                                                  (333,459 )
                                                                                                                                 
Income Tax Expense (Benefit)                                                   56,432                               (144,350 )
                                                                      ------------------------------------                      ------------------------------------
                                                                                                                                 
Net Income (Loss) Available for Common Stock                                $  88,908                             $ (189,109 )
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Earnings (Loss) Per Common Share:
 Basic                                                                      $    1.04                             $    (2.23 )
                                                                      ======= ======= ====================                      ====== ======== ====================
 Diluted                                                                    $    1.04                             $    (2.23 )
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Weighted Average Common Shares:
Used in Basic Calculation                                                                       85,189,851                                                84,651,233
                                                                      =====================================                     =====================================
Used in Diluted Calculation                                                                     85,797,989                                                84,651,233
                                                                      =====================================                     =====================================
                                                                               NATIONAL FUEL GAS COMPANY
                                                                                   AND SUBSIDIARIES
                                                                              CONSOLIDATED BALANCE SHEETS
                                                                                      (Unaudited)
                                                                     
                                                                                                     December 31,                          September 30,
(Thousands of Dollars)                                                                2016                                  2016
------------------------------------------------------------------- -------------------- -------------------------------------------------------- ------------------------------------
                                                                                                                                                   
ASSETS
Property, Plant and Equipment                                                                $9,620,006                                               $9,539,581
Less - Accumulated Depreciation, Depletion and Amortization                5,133,877          5,085,099  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Net Property, Plant and Equipment                                       4,486,129          4,454,482  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                   
Current Assets:
Cash and Temporary Cash Investments                                                             136,493                                                  129,972
Hedging Collateral Deposits                                                              --                                                    1,484
Receivables - Net                                                                               161,025                                                  133,201
Unbilled Revenue                                                                                 59,121                                                   18,382
Gas Stored Underground                                                                           23,431                                                   34,332
Materials and Supplies - at average cost                                                         34,170                                                   33,866
Unrecovered Purchased Gas Costs                                                                   3,697                                                    2,440
Other Current Assets                                                          49,778             59,354  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Current Assets                                                      467,715            413,031  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                   
Other Assets:
Recoverable Future Taxes                                                                        179,941                                                  177,261
Unamortized Debt Expense                                                                          1,556                                                    1,688
Other Regulatory Assets                                                                         323,448                                                  320,750
Deferred Charges                                                                                 22,215                                                   20,978
Other Investments                                                                               114,721                                                  110,664
Goodwill                                                                                          5,476                                                    5,476
Prepaid Post-Retirement Benefit Costs                                                            17,960                                                   17,649
Fair Value of Derivative Financial Instruments                                                   42,065                                                  113,804
Other                                                                            491                604  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Other Assets                                                        707,873            768,874  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Assets                                                              $5,661,717         $5,636,387  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                   
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 85,292,570 Shares
and 85,118,886 Shares, Respectively                                                             $85,293                                                  $85,119
Paid in Capital                                                                                 775,868                                                  771,164
Earnings Reinvested in the Business                                                             762,641                                                  676,361
Accumulated Other Comprehensive Loss                                         (54,859 )                              (5,640 )
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Comprehensive Shareholders’ Equity                                                      1,568,943                                                1,527,004
Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs        2,086,817          2,086,252  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Capitalization                                                    3,655,760          3,613,256  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                   
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper                                              --                                           --
Current Portion of Long-Term Debt                                                        --                                           --
Accounts Payable                                                                                113,136                                                  108,056
Amounts Payable to Customers                                                                      3,231                                                   19,537
Dividends Payable                                                                                34,544                                                   34,473
Interest Payable on Long-Term Debt                                                               28,985                                                   34,900
Customer Advances                                                                                13,779                                                   14,762
Customer Security Deposits                                                                       16,692                                                   16,019
Other Accruals and Current Liabilities                                                           88,519                                                   74,430
Fair Value of Derivative Financial Instruments                                 7,312              1,560  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Current and Accrued Liabilities                                     306,198            303,737  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                   
Deferred Credits:
Deferred Income Taxes                                                                           803,166                                                  823,795
Taxes Refundable to Customers                                                                    93,940                                                   93,318
Unamortized Investment Tax Credit                                                                   340                                                      383
Cost of Removal Regulatory Liability                                                            195,544                                                  193,424
Other Regulatory Liabilities                                                                    104,054                                                   99,789
Pension and Other Post-Retirement Liabilities                                                   272,672                                                  277,113
Asset Retirement Obligations                                                                    113,194                                                  112,330
Other Deferred Credits                                                       116,849            119,242  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Deferred Credits                                                  1,699,759          1,719,394  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Commitments and Contingencies                                         --     --  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Capitalization and Liabilities                                      $5,661,717         $5,636,387  
------------------------------------------------------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                      
                                                                                                                                                              
                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                         AND SUBSIDIARIES
                                                                               CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                            (Unaudited)
                                                                                                                                      Three Months Ended
                                                                                                                                         December 31,
(Thousands of Dollars)                                                                       2016                                       2015
---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------- --------------------------------------
                                                                                                                                                              
Operating Activities:
Net Income (Loss) Available for Common Stock                                                      $         88,908                                                 $ (189,109 )
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by
Operating Activities:
   Impairment of Oil and Gas Producing Properties                                                   --                                                    435,451
   Depreciation, Depletion and Amortization                                                                 56,196                                                     70,551
   Deferred Income Taxes                                                                                    44,852                                                   (140,013 )
   Excess Tax Benefits Associated with Stock-Based Compensation Awards                              --                                                       (226 )
   Stock-Based Compensation                                                                                  2,482                                                        960
   Other                                                                                                     3,607                                                      3,418
 Change in:
   Hedging Collateral Deposits                                                                               1,484                                                      1,573
   Receivables and Unbilled Revenue                                                                        (67,395 )                                                  (31,150 )
   Gas Stored Underground and Materials and Supplies                                                        10,597                                                      3,466
   Unrecovered Purchased Gas Costs                                                                          (1,257 )                                           --
   Other Current Assets                                                                                      9,576                                                     (5,254 )
   Accounts Payable                                                                                         18,805                                                    (20,784 )
   Amounts Payable to Customers                                                                            (16,306 )                                                  (11,702 )
   Customer Advances                                                                                          (983 )                                                    7,189
   Customer Security Deposits                                                                                  673                                                        267
   Other Accruals and Current Liabilities                                                                    5,919                                                    (14,353 )
   Other Assets                                                                                             (8,389 )                                                      885
   Other Liabilities                                                                     (4,122 )                                 2,904  
---------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------
     Net Cash Provided by Operating Activities                                 $        144,647           $  114,073  
---------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------- --------------------
                                                                                                                                                              
Investing Activities:
Capital Expenditures                                                                              $       (106,053 )                                               $ (186,437 )
Net Proceeds from Sale of Oil and Gas Producing Properties                                                   5,759                                                     10,574
Other                                                                                    (4,297 )                               (15,756 )
---------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------
     Net Cash Used in Investing Activities                                     $       (104,591 )                            $ (191,619 )
---------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------- --------------------
                                                                                                                                                              
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper                                            $ --                                                 $   31,400
Excess Tax Benefits Associated with Stock-Based Compensation Awards                                 --                                                        226
Dividends Paid on Common Stock                                                                             (34,473 )                                                  (33,415 )
Net Proceeds From Issuance of Common Stock                                                  938                2,068  
---------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------
     Net Cash (Used in) Provided by Financing Activities                       $        (33,535 )                            $      279  
---------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------- --------------------
                                                                                                                                                              
Net Increase (Decrease) in Cash and Temporary Cash Investments                                               6,521                                                    (77,267 )
Cash and Temporary Cash Investments at Beginning of Period                              129,972              113,596  
---------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------
Cash and Temporary Cash Investments at December 31                             $        136,493           $   36,329  
---------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------- --------------------
                                                                                                                              
                                                                                                                                                                                         
                                                                                                  NATIONAL FUEL GAS COMPANY
                                                                                                      AND SUBSIDIARIES
                                                                                                                                                                                         
                                                                                          SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                         (UNAUDITED)
                                                                                                                                                                                         
                                                                                                      UPSTREAM BUSINESS
                                                                                                                                                                                         
                                                                                                                                                                                         
                                                                                                                                        Three Months Ended
(Thousands of Dollars, except per share amounts)                                                                                           December 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------
EXPLORATION AND PRODUCTION SEGMENT                                                    2016                                  2015                                Variance
------------------------------------------------                      ----------------------------------   -------------------- --------------------------------   -------------------- ---------------------------------
Total Operating Revenues                                                    $ 160,932        $  151,965          $   8,967  
                                                                      ------- ------- -------------------- -------------------- ---- -------- -------------------- -------------------- ------ ------- --------------------
                                                                                                                                                                                         
Operating Expenses:
 Operation and Maintenance:
  General and Administrative Expense                                           12,974                                                  19,955                                                   (6,981 )
  Lease Operating and Transportation Expense                                   39,708                                                  39,022                                                      686
  All Other Operation and Maintenance Expense                                   2,552                                                   3,145                                                     (593 )
 Property, Franchise and Other Taxes                                            3,222                                                   3,385                                                     (163 )
 Depreciation, Depletion and Amortization                                      29,053                                                  44,033                                                  (14,980 )
 Impairment of Oil and Gas Producing Properties                        --           435,451           (435,451 )
                                                                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
                                                                               87,509           544,991           (457,482 )
                                                                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
                                                                                                                                                                                         
Operating Income (Loss)                                                        73,423                                                                    (393,026)                             466,449
                                                                                                                                                                                         
Other Income (Expense):
 Interest Income                                                                   86                                                     667                                                     (581 )
 Interest Expense                                                             (13,523 )                            (14,582 )                               1,059  
                                                                      ------------------------------------ -------------------- ---------------------------------- --------------------                --------------------
                                                                                                                                                                                         
Income (Loss) Before Income Taxes                                              59,986                                                (406,941 )                                                466,927
Income Tax Expense (Benefit)                                                   24,906          (169,855 )                             194,761  
                                                                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
Net Income (Loss)                                                           $  35,080        $ (237,086 )                           $ 272,166  
                                                                      ======= ======= ==================== ==================== ==== ======== ==================== ==================== ====== ======= ====================
                                                                                                                                                                                         
Net Income (Loss) Per Share (Diluted)                                       $    0.41        $    (2.80 )                           $    3.21  
                                                                      ======= ======= ==================== ==================== ==== ======== ==================== ==================== ====== ======= ====================
                                                                                                                      
                                                                                              NATIONAL FUEL GAS COMPANY
                                                                                                  AND SUBSIDIARIES
                                                                                                                                                                                 
                                                                                      SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                     (UNAUDITED)
                                                                                                                                                                                 
                                                                                                MIDSTREAM BUSINESSES
                                                                                                                                                                                 
                                                                                                                                                                                 
                                                                                                                                    Three Months Ended
(Thousands of Dollars, except per share amounts)                                                                                       December 31,
                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------
PIPELINE AND STORAGE SEGMENT                                     2016                              2015                              Variance
------------------------------------------------ -------------------- -----------------------------   -------------------- -----------------------------   -------------------- ----------------------------------
Revenues from External Customers                                        $ 53,000                                             $ 53,354                                                 $    (354 )
Intersegment Revenues                                                     22,155         22,183                 (28 )
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
Total Operating Revenues                                                  75,155         75,537                (382 )
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                 
Operating Expenses:
Purchased Gas                                                                222                                                  458                                                      (236 )
Operation and Maintenance                                                 20,242                                               17,593                                                     2,649
Property, Franchise and Other Taxes                                        6,677                                                6,745                                                       (68 )
Depreciation, Depletion and Amortization                                   9,662         10,256                (594 )
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                          36,803         35,052               1,751  
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                 
Operating Income                                                          38,352                                               40,485                                                    (2,133 )
                                                                                                                                                                                 
Other Income (Expense):
 Interest Income                                                             273                                                  111                                                       162
 Other Income                                                                686                                                1,582                                                      (896 )
 Interest Expense                                                         (8,347 )                          (8,038 )                                 (309 )
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                 
Income Before Income Taxes                                                30,964                                               34,140                                                    (3,176 )
Income Tax Expense                                                        11,596         12,864              (1,268 )
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
Net Income                                                              $ 19,368       $ 21,276           $  (1,908 )
                                                                      === ====== ==================== ==================== === ====== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                 
Net Income Per Share (Diluted)                                          $   0.23       $   0.25           $   (0.02 )
                                                                      === ====== ==================== ==================== === ====== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                 
                                                                                                                                                                                 
                                                                                                                                    Three Months Ended
                                                                                                                                       December 31,
                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------
GATHERING SEGMENT                                                                   2016                              2015                              Variance
------------------------------------------------                      -----------------------------   -------------------- -----------------------------   -------------------- ----------------------------------
Revenues from External Customers                                        $     26                                             $    125                                                 $     (99 )
Intersegment Revenues                                                     27,840         18,640               9,200  
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
Total Operating Revenues                                                  27,866         18,765               9,101  
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                 
Operating Expenses:
 Operation and Maintenance                                                 2,754                                                2,273                                                       481
 Property, Franchise and Other Taxes                                          11                                                   34                                                       (23 )
 Depreciation, Depletion and Amortization                                  3,880          4,210                (330 )
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                           6,645          6,517                 128  
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                 
Operating Income                                                          21,221                                               12,248                                                     8,973
                                                                                                                                                                                 
Other Income (Expense):
 Interest Income                                                             146                                                   34                                                       112
 Other Income                                                                  1                                                    1                                            --
 Interest Expense                                                         (2,093 )                          (3,070 )                                  977  
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                 
Income Before Income Taxes                                                19,275                                                9,213                                                    10,062
Income Tax Expense                                                         8,294          4,292               4,002  
                                                                      ------------------------------- -------------------- ------------------------------- -------------------- ------------------------------------
Net Income                                                              $ 10,981       $  4,921           $   6,060  
                                                                      === ====== ==================== ==================== === ====== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                 
Net Income Per Share (Diluted)                                          $   0.13       $   0.06           $    0.07  
                                                                      === ====== ==================== ==================== === ====== ==================== ==================== ======= ======= ====================
                                                                                                                            
                                                                                                                                                                                       
                                                                                                 NATIONAL FUEL GAS COMPANY
                                                                                                     AND SUBSIDIARIES
                                                                                                                                                                                       
                                                                                         SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                        (UNAUDITED)
                                                                                                                                                                                       
                                                                                                   DOWNSTREAM BUSINESSES
                                                                                                                                                                                       
                                                                                                                                                                                       
                                                                                                                                       Three Months Ended
(Thousands of Dollars, except per share amounts)                                                                                          December 31,
                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------------
UTILITY SEGMENT                                                                       2016                                 2015                               Variance
------------------------------------------------                      ----------------------------------   -------------------- ------------------------------   -------------------- ----------------------------------
Revenues from External Customers                                            $ 170,971                                             $ 143,848                                                 $  27,123
Intersegment Revenues                                                           1,826           3,664              (1,838 )
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
Total Operating Revenues                                                      172,797         147,512              25,285  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                       
Operating Expenses:
 Purchased Gas                                                                 60,732                                                45,068                                                    15,664
 Operation and Maintenance                                                     49,529                                                46,599                                                     2,930
 Property, Franchise and Other Taxes                                           10,205                                                 9,927                                                       278
 Depreciation, Depletion and Amortization                                      13,102          11,618               1,484  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                              133,568         113,212              20,356  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                       
Operating Income                                                               39,229                                                34,300                                                     4,929
                                                                                                                                                                                       
Other Income (Expense):
 Interest Income                                                                  134                                                    85                                                        49
 Other Income                                                                      92                                                   697                                                      (605 )
 Interest Expense                                                              (7,198 )                           (7,334 )                                  136  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                       
Income Before Income Taxes                                                     32,257                                                27,748                                                     4,509
Income Tax Expense                                                             11,082           9,142               1,940  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
Net Income                                                                  $  21,175       $  18,606           $   2,569  
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                       
Net Income Per Share (Diluted)                                              $    0.25       $    0.22           $    0.03  
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                       
                                                                                                                                                                                       
                                                                                                                                       Three Months Ended
                                                                                                                                          December 31,
                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------------
ENERGY MARKETING SEGMENT                                                              2016                                 2015                               Variance
------------------------------------------------                      ----------------------------------   -------------------- ------------------------------   -------------------- ----------------------------------
Revenues from External Customers                                            $  36,809                                             $  24,984                                                 $  11,825
Intersegment Revenues                                                              19             311                (292 )
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
Total Operating Revenues                                                       36,828          25,295              11,533  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                       
Operating Expenses:
 Purchased Gas                                                                 32,339                                                21,723                                                    10,616
 Operation and Maintenance                                                      1,643                                                 1,723                                                       (80 )
 Property, Franchise and Other Taxes                                   --                                                     3                                                        (3 )
 Depreciation, Depletion and Amortization                                          70              70      --  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                               34,052          23,519              10,533  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                       
Operating Income                                                                2,776                                                 1,776                                                     1,000
                                                                                                                                                                                       
Other Income (Expense):
 Interest Income                                                                  134                                                    50                                                        84
 Other Income                                                                       3                                                    10                                                        (7 )
 Interest Expense                                                                 (13 )                              (19 )                                    6  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
                                                                                                                                                                                       
Income Before Income Taxes                                                      2,900                                                 1,817                                                     1,083
Income Tax Expense                                                              1,118             594                 524  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- ------------------------------------
Net Income                                                                  $   1,782       $   1,223           $     559  
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                       
Net Income Per Share (Diluted)                                              $    0.02       $    0.01           $    0.01  
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== ======= ======= ====================
                                                                                                              NATIONAL FUEL GAS COMPANY
                                                                                                                  AND SUBSIDIARIES
                                                                                                                                              
                                                                                                      SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                     (UNAUDITED)
                                                                                                                                                                                                         
                                                                                                                                                    Three Months Ended
(Thousands of Dollars, except per share amounts)                                                                                                       December 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ALL OTHER                                                                                 2016                                          2015                                        Variance
------------------------------------------------                      -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------
Total Operating Revenues                                                    $            554           $            706           $           (152 )
                                                                      ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------
Operating Expenses:
 Operation and Maintenance                                                               516                                                               75                                                              441
 Property, Franchise and Other Taxes                                                     143                                                              143                                                   --
 Depreciation, Depletion and Amortization                                                241                        182                         59  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                         900                        400                        500  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                         
Operating Income (Loss)                                                                 (346 )                                                            306                                                             (652 )
Other Income (Expense):
 Interest Income                                                                          39                         19                         20  
                                                                                             -------------------- --------------------                        -------------------- --------------------                        --------------------
                                                                                                                                                                                                         
Income (Loss) Before Income Taxes                                                       (307 )                                                            325                                                             (632 )
Income Tax Expense (Benefit)                                                            (128 )                                         136                       (264 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Net Income (Loss)                                                           $           (179 )                            $            189           $           (368 )
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                         
Net Income (Loss) Per Share (Diluted)                                       $ --           $ --           $ --  
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                         
                                                                                                                                                                                                         
                                                                                                                                                    Three Months Ended
                                                                                                                                                       December 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CORPORATE                                                                                 2016                                          2015                                        Variance
------------------------------------------------                      -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------
Revenues from External Customers                                            $            208                                                 $            213                                                 $             (5 )
Intersegment Revenues                                                                    976                        967                          9  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Total Operating Revenues                                                               1,184                      1,180                          4  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Operating Expenses:
 Operation and Maintenance                                                             3,391                                                            2,891                                                              500
 Property, Franchise and Other Taxes                                                     121                                                              120                                                                1
 Depreciation, Depletion and Amortization                                                188                        182                          6  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                       3,700                      3,193                        507  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                         
Operating Loss                                                                        (2,516 )                                                         (2,013 )                                                           (503 )
                                                                                                                                                                                                         
Other Income (Expense):
 Interest Income                                                                      31,805                                                           31,743                                                               62
 Other Income                                                                            832                                                              128                                                              704
 Interest Expense on Long-Term Debt                                                  (29,103 )                                                        (30,372 )                                                          1,269
 Other Interest Expense                                                                 (753 )                                         753                     (1,506 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                         
Income (Loss) Before Income Taxes                                                        265                                                              239                                                               26
Income Tax Expense (Benefit)                                                            (436 )                                      (1,523 )                                       1,087  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Net Income                                                                  $            701           $          1,762           $         (1,061 )
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                         
Net Income Per Share (Diluted)                                              $ --           $           0.03           $          (0.03 )
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                         
                                                                                                                                                                                                         
                                                                                                                                                    Three Months Ended
                                                                                                                                                       December 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS                                                                 2016                                          2015                                        Variance
------------------------------------------------                      -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------
Intersegment Revenues                                                       $        (52,816 )                            $        (45,765 )                            $         (7,051 )
                                                                      ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------
Operating Expenses:
 Purchased Gas                                                                       (23,050 )                                                        (25,181 )                                                          2,131
 Operation and Maintenance                                                           (29,766 )                                     (20,584 )                                      (9,182 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                     (52,816 )                                     (45,765 )                                      (7,051 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                         
Operating Income                                                              --                                                   --                                                   --
                                                                                                                                                                                                         
Other Income (Expense):
 Interest Income                                                                     (31,017 )                                                        (30,910 )                                                           (107 )
 Interest Expense                                                                     31,017                     30,910                        107  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Net Income                                                                  $ --           $ --           $ --  
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                         
Net Income Per Share (Diluted)                                              $ --           $ --           $ --  
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                        
                                                                                                                                                                                                                         
                                                                                                                  NATIONAL FUEL GAS COMPANY
                                                                                                                      AND SUBSIDIARIES
                                                                                                                                                                                                                         
                                                                                                               SEGMENT INFORMATION (Continued)
                                                                                                                   (Thousands of Dollars)
                                                                                                                                                                                                                         
                                                                                                                                                                                                                         
                                                                                                                                              Three Months Ended
                                                                                                                                                 December 31,
                                                                                                                                                  (Unaudited)
                                                 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                      Increase
                                                               2016                                                                               2015                                                                               (Decrease)
                                                 --------------------------------                                                 -------------------------------------                                                 -------------------------------------
                                                                                                                                                                                                                         
Capital Expenditures:
---------------------------
Exploration and Production                         $ 40,689                                           (1)(2)                            $  88,125                                           (3)(4)                            $ (47,436 )
Pipeline and Storage                                 25,392                                           (1)(2)                               31,621                                           (3)(4)                               (6,229 )
Gathering                                            11,344                                           (1)(2)                               21,744                                           (3)(4)                              (10,400 )
Utility                                              17,052                                           (1)(2)                               19,917                                           (3)(4)                               (2,865 )
Energy Marketing                                          7                                                                  7                                                     --  
                                                 -------------------------------                                                  ------------------------------------                                                  ------------------------------------
Total Reportable Segments                            94,484                                                                               161,414                                                                               (66,930 )
All Other                                                39                                                                        --                                                                                    39
Corporate                                                60                                                                 48                                                                 12  
                                                 -------------------------------                                                  ------------------------------------                                                  ------------------------------------
 Total Capital Expenditures                        $ 94,583                                                          $ 161,462                                                          $ (66,879 )
                                                 === ====== ====================                                                  ======= ======= ====================                                                  ======= ======= ====================
(1)   Capital expenditures for the three months ended December 31, 2016,
                         include accounts payable and accrued liabilities related to
                         capital expenditures of $25.3 million, $8.7 million, $7.9 million,
                         and $7.1 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 December 31, 2016, since
                         they represent non-cash investing activities at that date.
(2)                      Capital expenditures for the three months ended December 31, 2016,
                         exclude capital expenditures of $25.2 million, $18.7 million, $5.3
                         million and $11.2 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, 2016 and paid
                         during the three months ended December 31, 2016. These amounts
                         were excluded from the Consolidated Statement of Cash Flows at
                         September 30, 2016, since they represented non-cash investing
                         activities at that date. These amounts have been included in the
                         Consolidated Statement of Cash Flows at December 31, 2016.
(3)                      Capital expenditures for the three months ended December 31, 2015,
                         include accounts payable and accrued liabilities related to
                         capital expenditures of $43.7 million, $19.0 million, $18.8
                         million, and $12.5 million in the Exploration and Production
                         segment, Pipeline and Storage segment, Gathering segment and
                         Utility segment, respectively. These amounts have been excluded
                         from the Consolidated Statement of Cash Flows at December 31,
                         2015, since they represent non-cash investing activities at that
                         date.
(4)                      Capital expenditures for the three months ended December 31, 2015,
                         exclude capital expenditures of $46.2 million, $33.9 million,
                         $22.4 million and $16.5 million in the Exploration and Production
                         segment, Pipeline and Storage segment, Gathering segment and
                         Utility segment, respectively. These amounts were in accounts
                         payable and accrued liabilities at September 30, 2015 and paid
                         during the three months ended December 31, 2015. These amounts
                         were excluded from the Consolidated Statement of Cash Flows at
                         September 30, 2015, since they represented non-cash investing
                         activities at that date. These amounts have been included in the
                         Consolidated Statement of Cash Flows at December 31, 2015.
                                                                      
DEGREE DAYS
------------------------------
                                                                                                                                                                       
                                                                                                                                                         Percent Colder
                                                                                                                                                         (Warmer) Than:
Three Months Ended December 31                      Normal                       2016                       2015                      Normal (1)                          Last Year (1)
------------------------------                      ------                      -----                      -----                      ----------                      --------------------
                                                                                                                                                                       
  Buffalo, NY                                        2,253                      1,966                      1,677                          (12.7)                                      17.2
  Erie, PA                                           2,044                      1,750                      1,484                          (14.4)                                      17.9
(1)   Percents compare actual 2016 degree days to normal degree days and
                         actual 2016 degree days to actual 2015 degree days.
                                                                                                                                    
                                                                                                                                                                                               
                                                                                                    NATIONAL FUEL GAS COMPANY
                                                                                                        AND SUBSIDIARIES
                                                                                                                                                                                               
                                                                                             EXPLORATION AND PRODUCTION INFORMATION
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                               
                                                                                                                                                                                               
                                                                                                                                               Three Months Ended
                                                                                                                                                  December 31,
                                                                                -------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                           Increase
                                                                                                2016                                                   2015                                               (Decrease)
                                                                                -------------------------------------                     -------------------------------                     -----------------------------------
                                                                                                                                                                                               
Gas Production/Prices:
----------------------------------------------------------
Production (MMcf)
 Appalachia                                                                              39,807                                              32,788                                                   7,019
 West Coast                                                                                 776                              783                                   (7 )
                                                                                ------------------------------------                      ------------------------------                      ----------------------------------
Total Production                                                                         40,583                           33,571                                7,012  
                                                                                ====================================                      ==============================                      ==================================
                                                                                                                                                                                               
Average Prices (Per Mcf)
 Appalachia                                                                           $    2.35                                             $  1.98                                                $   0.37
 West Coast                                                                                4.24                                                3.65                                                    0.59
  Weighted Average                                                                         2.39                                                2.02                                                    0.37
  Weighted Average after Hedging                                                           2.97                                                3.16                                                   (0.19 )
                                                                                                                                                                                               
Oil Production/Prices:
----------------------------------------------------------
Production (Thousands of Barrels)
Appalachia                                                                       --                                                   6                                                      (6 )
West Coast                                                                                  721                              742                                  (21 )
                                                                                ------------------------------------                      ------------------------------                      ----------------------------------
Total Production                                                                            721                              748                                  (27 )
                                                                                ====================================                      ==============================                      ==================================
                                                                                                                                                                                               
Average Prices (Per Barrel)
 Appalachia                                                                                      N/M                                        $ 39.78                                                           N/M
 West Coast                                                                           $   43.69                                               36.05                                                $   7.64
  Weighted Average                                                                        43.82                                               36.08                                                    7.74
  Weighted Average after Hedging                                                          54.71                                               59.76                                                   (5.05 )
                                                                                                                                                                                               
Total Production (Mmcfe)                                                                 44,909                           38,059                                6,850  
                                                                                ====================================                      ==============================                      ==================================
                                                                                                                                                                                               
Selected Operating Performance Statistics:
----------------------------------------------------------
General & Administrative Expense per Mcfe (1)                                         $    0.29                                             $  0.52                                                $  (0.23 )
Lease Operating and Transportation Expense per Mcfe (1)(2)                            $    0.88                                             $  1.03                                                $  (0.15 )
Depreciation, Depletion & Amortization per Mcfe (1)                                   $    0.65                                             $  1.16                                                $  (0.51 )
N/M - Not Meaningful
(1)      Refer to page 12 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 $0.53 and $0.51 per Mcfe
                            for the three months ended December 31, 2016 and December 31, 2015,
                            respectively.
                                                                            NATIONAL FUEL GAS COMPANY
                                                                                AND SUBSIDIARIES
                                                         
                                                                     EXPLORATION AND PRODUCTION INFORMATION
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                            
Hedging Summary for the Remaining Nine Months of Fiscal 2017
                                                                         Volume                                                                            Average Hedge Price
                                                              -------------------------                                                                    --------------------
Oil Swaps
 Brent                                                            72,000           BBL                                                                   $ 91.00 / BBL
 NYMEX                                                         1,163,000           BBL                                                                   $ 58.40 / BBL
Total                                                          1,235,000           BBL                                                                   $ 60.30 / BBL
                                                                                                                                                            
Gas Swaps
 NYMEX                                                        27,780,000           MMBTU                                                                 $ 4.32 / MMBTU
 Dominion Transmission Appalachian (DOM)                       3,630,000           MMBTU                                                                 $ 3.85 / MMBTU
 Dawn Ontario (DAWN)                                          12,990,000           MMBTU                                                                 $ 3.63 / MMBTU
Fixed Price Physical Sales                                    45,029,281           MMBTU                                                                 $ 2.60 / MMBTU
Total                                                         89,429,281           MMBTU                                                                 $ 3.33 / MMBTU
                                                                                                                                                            
Hedging Summary for Fiscal 2018
                                                                         Volume                                                                            Average Hedge Price
                                                              -------------------------                                                                    --------------------
Oil Swaps
 Brent                                                            24,000           BBL                                                                   $ 91.00 / BBL
 NYMEX                                                         1,119,000           BBL                                                                   $ 55.38 / BBL
Total                                                          1,143,000           BBL                                                                   $ 56.13 / BBL
                                                                                                                                                            
Gas Swaps
 NYMEX                                                        42,570,000           MMBTU                                                                 $ 3.34 / MMBTU
 DOM                                                             180,000           MMBTU                                                                 $ 3.82 / MMBTU
 DAWN                                                          8,400,000           MMBTU                                                                 $ 3.08 / MMBTU
Fixed Price Physical Sales                                    32,927,835           MMBTU                                                                 $ 2.43 / MMBTU
Total                                                         84,077,835           MMBTU                                                                 $ 2.96 / MMBTU
                                                                                                                                                            
Hedging Summary for Fiscal 2019
                                                                         Volume                                                                            Average Hedge Price
                                                              -------------------------                                                                    --------------------
Oil Swaps
 NYMEX                                                           756,000           BBL                                                                   $ 54.60 / BBL
 Total                                                           756,000           BBL                                                                   $ 54.60 / BBL
                                                                                                                                                            
Gas Swaps
 NYMEX                                                        27,060,000           MMBTU                                                                 $ 3.17 / MMBTU
 DAWN                                                          7,200,000           MMBTU                                                                 $ 3.00 / MMBTU
Fixed Price Physical Sales                                    11,947,289           MMBTU                                                                 $ 3.09 / MMBTU
Total                                                         46,207,289           MMBTU                                                                 $ 3.13 / MMBTU
                                                                                                                                                            
Hedging Summary for Fiscal 2020
                                                                         Volume                                                                            Average Hedge Price
                                                              -------------------------                                                                    --------------------
Gas Swaps
 NYMEX                                                        16,880,000           MMBTU                                                                 $ 3.07 / MMBTU
 DAWN                                                          7,200,000           MMBTU                                                                 $ 3.00 / MMBTU
Fixed Price Physical Sales                                     3,566,558           MMBTU                                                                 $ 3.24 / MMBTU
Total                                                         27,646,558           MMBTU                                                                 $ 3.07 / MMBTU
                                                                                                                                                            
Hedging Summary for Fiscal 2021
                                                                         Volume                                                                            Average Hedge Price
                                                              -------------------------                                                                    --------------------
Gas Swaps
 NYMEX                                                         4,840,000           MMBTU                                                                 $ 3.01 / MMBTU
 DAWN                                                            600,000           MMBTU                                                                 $ 3.00 / MMBTU
Total                                                          5,440,000           MMBTU                                                                 $ 3.01 / MMBTU
                                                NATIONAL FUEL GAS COMPANY
                                                    AND SUBSIDIARIES
                                                             
                                         EXPLORATION AND PRODUCTION INFORMATION
-------------------------------------------------------------------------------------------------------------------------
                                                                                                     
Gross Wells in Process of Drilling
--------------------------------------
Three Months Ended December 31, 2016
--------------------------------------
                                                                                                            Total
                                                             East         West                             Company
                                                            ------       -----                      --------------------
Wells in Process - Beginning of Period
 Exploratory                                                 6.000       0.000                                     6.000
 Developmental                                              87.000       0.000                                    87.000
Wells Commenced
 Exploratory                                                 4.000       0.000                                     4.000
 Developmental                                              12.000       7.000                                    19.000
Wells Completed
 Exploratory                                                 1.000       0.000                                     1.000
 Developmental                                              12.000       6.000                                    18.000
Wells Plugged & Abandoned
 Exploratory                                                 0.000       0.000                                     0.000
 Developmental                                               0.000       0.000                                     0.000
Wells in Process - End of Period
 Exploratory                                                 9.000       0.000                                     9.000
 Developmental                                              87.000       1.000                                    88.000
                                                                                                     
                                                                                                     
Net Wells in Process of Drilling
--------------------------------------
Three Months Ended December 31, 2016
--------------------------------------
                                                                                                            Total
                                                             East         West                             Company
                                                            ------       -----                      --------------------
Wells in Process - Beginning of Period
 Exploratory                                                 6.000       0.000                                     6.000
 Developmental                                              62.900       0.000                                    62.900
Wells Commenced
 Exploratory                                                 4.000       0.000                                     4.000
 Developmental                                              12.000       7.000                                    19.000
Wells Completed
 Exploratory                                                 1.000       0.000                                     1.000
 Developmental                                               2.400       6.000                                     8.400
Wells Plugged & Abandoned
 Exploratory                                                 0.000       0.000                                     0.000
 Developmental                                               0.000       0.000                                     0.000
Well Interest Sold (1)
 Exploratory                                                 0.000       0.000                                     0.000
 Developmental                                               4.000       0.000                                     4.000
Wells in Process - End of Period
 Exploratory                                                 9.000       0.000                                     9.000
 Developmental                                              68.500   (1) 1.000                                    69.500
(1)   Seneca’s East Division sold an 80% working interest in 5 of the
                         existing developmental wells in process to IOG during the three
                         months ended December 31, 2016.
                                                                                                           
                                                                                      NATIONAL FUEL GAS COMPANY
                                                                                          AND SUBSIDIARIES
                                                                                                                                                                      
                                                                                                                                                                      
                                                                                                                                                                      
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
                                                                                                                                                                      
                                                                                                                      Three Months Ended
                                                                                                                         December 31,
                                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                 Increase
                                                                      2016                                                  2015                                                (Decrease)
                                                          -----------------------------                     ------------------------------------                     --------------------------------
Firm Transportation - Affiliated                           31,607                                                   24,709                                                6,898
Firm Transportation - Non-Affiliated                      159,174                                                  151,123                                                8,051
Interruptible Transportation                                3,046                                 5,631                            (2,585 )
                                                          ------- --------------------                      -------------- --------------------                      ---------- --------------------
                                                          193,827                               181,463                            12,364  
                                                          ======= ====================                      ============== ====================                      ========== ====================
                                                                                                                                                                      
Gathering Volume - (MMcf)
                                                                                                                      Three Months Ended
                                                                                                                         December 31,
                                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                 Increase
                                                                      2016                                                  2015                                                (Decrease)
                                                          -----------------------------                     ------------------------------------                     --------------------------------
Gathered Volume - Affiliated                               50,569                                33,800                            16,769  
                                                          ======= ====================                      ============== ====================                      ========== ====================
                                                                                                                                                                      
                                                                                                                                                                      
Utility Throughput - (MMcf)
                                                                                                                      Three Months Ended
                                                                                                                         December 31,
                                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                 Increase
                                                                      2016                                                  2015                                                (Decrease)
                                                          -----------------------------                     ------------------------------------                     --------------------------------
Retail Sales:
 Residential Sales                                         15,764                                                   13,133                                                2,631
 Commercial Sales                                           2,299                                                    1,827                                                  472
 Industrial Sales                                              77                                    66                                11  
                                                          ------- --------------------                      -------------- --------------------                      ---------- --------------------
                                                           18,140                                                   15,026                                                3,114
Off-System Sales                                              173                                           --                                                  173
Transportation                                             19,565                                17,615                             1,950  
                                                          ------- --------------------                      -------------- --------------------                      ---------- --------------------
                                                           37,878                                32,641                             5,237  
                                                          ======= ====================                      ============== ====================                      ========== ====================
                                                                                                                                                                      
Energy Marketing Volume
                                                                                                                      Three Months Ended
                                                                                                                         December 31,
                                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                 Increase
                                                                      2016                                                  2015                                                (Decrease)
                                                          -----------------------------                     ------------------------------------                     --------------------------------
Natural Gas (MMcf)                                         11,127                                10,098                             1,029  
                                                          ======= ====================                      ============== ====================                      ========== ====================

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 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 1 of this report reconciles National Fuel’s reported GAAP earnings to Operating Results for the three months ended December 31, 2016 and 2015.

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 months ended December 31, 2016 and 2015:

                                                                                   
                                                                                                      Three Months Ended
                                                                                                         December 31,
                                                                -----------------------------------------------------------------------------------------------
                                                                                2016                                                      2015
                                                                -------------------------------------                     -------------------------------------
(in thousands)
Reported GAAP Earnings                                                $  88,908                                                $ (189,109 )
  Depreciation, Depletion and Amortization                               56,196                                                    70,551
  Interest and Other Income                                              (3,214 )                                                  (4,217 )
  Interest Expense                                                       30,013                                                    31,752
  Income Taxes                                                           56,432                                                  (144,350 )
  Impairment of Oil and Gas Producing                            --                                                   435,451
  Properties
  Joint Development Agreement Professional                       --                                  4,682  
  Fees
                                                                --------------  --------------------                      --------------  --------------------
Adjusted EBITDA                                                       $ 228,335                             $  204,760  
                                                                ======= ======= ====================                      ====== ======== ====================
                                                                                                                           
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA                                  $  48,014                                                $   50,741
Gathering Adjusted EBITDA                                                25,101                                 16,458  
                                                                ------------------------------------                      ------------------------------------
Total Midstream Businesses Adjusted EBITDA                               73,115                                                    67,199
Exploration and Production Adjusted EBITDA                              102,476                                                    91,140
Utility Adjusted EBITDA                                                  52,331                                                    45,918
Energy Marketing Adjusted EBITDA                                          2,846                                                     1,846
Corporate and All Other Adjusted EBITDA                                  (2,433 )                                                  (1,343 )
                                                                ------------------------------------                      ------------------------------------
Total Adjusted EBITDA                                                 $ 228,335                             $  204,760  
                                                                ======= ======= ====================                      ====== ======== ====================
                                                                      NATIONAL FUEL GAS COMPANY
                                                                          AND SUBSIDIARIES
                                                                     NON-GAAP FINANCIAL MEASURES
                                                                       SEGMENT ADJUSTED EBITDA
                                                  
                                                                                                            Three Months Ended
                                                                                                               December 31,
                                                                      -----------------------------------------------------------------------------------------------
(in thousands)                                                                        2016                                   2015
                                                                      -------------------------------------                     -------------------------------------
Exploration and Production Segment
------------------------------------------------
Reported GAAP Earnings                                                      $  35,080                                                $ (237,086 )
  Depreciation, Depletion and Amortization                                     29,053                                                    44,033
  Interest and Other Income                                                       (86 )                                                    (667 )
  Interest Expense                                                             13,523                                                    14,582
  Income Taxes                                                                 24,906                                                  (169,855 )
  Impairment of Oil and Gas Producing Properties                       --                                                   435,451
  Joint Development Agreement Professional Fees                        --                                  4,682  
                                                                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                             $ 102,476                             $   91,140  
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Pipeline and Storage Segment
------------------------------------------------
Reported GAAP Earnings                                                      $  19,368                                                $   21,276
  Depreciation, Depletion and Amortization                                      9,662                                                    10,256
  Interest and Other Income                                                      (959 )                                                  (1,693 )
  Interest Expense                                                              8,347                                                     8,038
  Income Taxes                                                                 11,596                                 12,864  
                                                                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                             $  48,014                             $   50,741  
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Gathering Segment
------------------------------------------------
Reported GAAP Earnings                                                      $  10,981                                                $    4,921
  Depreciation, Depletion and Amortization                                      3,880                                                     4,210
  Interest and Other Income                                                      (147 )                                                     (35 )
  Interest Expense                                                              2,093                                                     3,070
  Income Taxes                                                                  8,294                                  4,292  
                                                                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                             $  25,101                             $   16,458  
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Utility Segment
------------------------------------------------
Reported GAAP Earnings                                                      $  21,175                                                $   18,606
  Depreciation, Depletion and Amortization                                     13,102                                                    11,618
  Interest and Other Income                                                      (226 )                                                    (782 )
  Interest Expense                                                              7,198                                                     7,334
  Income Taxes                                                                 11,082                                  9,142  
                                                                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                             $  52,331                             $   45,918  
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Energy Marketing Segment
------------------------------------------------
Reported GAAP Earnings                                                      $   1,782                                                $    1,223
  Depreciation, Depletion and Amortization                                         70                                                        70
  Interest and Other Income                                                      (137 )                                                     (60 )
  Interest Expense                                                                 13                                                        19
  Income Taxes                                                                  1,118                                    594  
                                                                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                             $   2,846                             $    1,846  
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                 
Corporate and All Other
------------------------------------------------
Reported GAAP Earnings                                                      $     522                                                $    1,951
  Depreciation, Depletion and Amortization                                        429                                                       364
  Interest and Other Income                                                    (1,659 )                                                    (980 )
  Interest Expense                                                             (1,161 )                                                  (1,291 )
  Income Taxes                                                                   (564 )                                                  (1,387 )
                                                                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                             $  (2,433 )                                              $   (1,343 )
                                                                      ======= ======= ====================                      ====== ======== ====================
                                                                                          
                                                                         NATIONAL FUEL GAS COMPANY
                                                                             AND SUBSIDIARIES
                                                                                                                                  
                                                                                                                                  
Quarter Ended December 31 (unaudited)                                                2016                                                           2015
---------------------------------------------                      --------------------------------------                        ---------------------------------------
                                                                                                                                  
 Operating Revenues                                                    $   422,500,000                             $   375,195,000  
                                                                   ===== ============= ====================                      ====== ============= ====================
                                                                                                                                  
 Net Income (Loss) Available for Common Stock                          $    88,908,000                             $  (189,109,000 )
                                                                   ===== ============= ====================                      ====== ============= ====================
                                                                                                                                  
 Earnings (Loss) Per Common Share:
  Basic                                                                $          1.04                             $         (2.23 )
                                                                   ===== ============= ====================                      ====== ============= ====================
  Diluted                                                              $          1.04                             $         (2.23 )
                                                                   ===== ============= ====================                      ====== ============= ====================
                                                                                                                                  
 Weighted Average Common Shares:
  Used in Basic Calculation                                                 85,189,851                                  84,651,233  
                                                                   ========================================                      =========================================
  Used in Diluted Calculation                                               85,797,989                                  84,651,233  
                                                                   ========================================                      =========================================
                                                                                                                                  
Twelve Months Ended December 31
(unaudited)
---------------------------------------------
                                                                                                                                  
 Operating Revenues                                                    $ 1,499,721,000                             $ 1,612,199,000  
                                                                   ===== ============= ====================                      ====== ============= ====================
                                                                                                                                  
 Net Income (Loss) Available for Common Stock                          $   (12,941,000 )                                              $  (653,276,000 )
                                                                   ===== ============= ====================                      ====== ============= ====================
                                                                                                                                  
 Earnings (Loss) Per Common Share:
  Basic                                                                $         (0.15 )                                              $         (7.73 )
                                                                   ===== ============= ====================                      ====== ============= ====================
  Diluted                                                              $         (0.15 )                                              $         (7.73 )
                                                                   ===== ============= ====================                      ====== ============= ====================
                                                                                                                                  
 Weighted Average Common Shares:
  Used in Basic Calculation                                                 84,983,380                                  84,499,299  
                                                                   ========================================                      =========================================
  Used in Diluted Calculation                                               84,983,380                                  84,499,299  
                                                                   ========================================                      =========================================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170202006285r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170202006285/en/

SOURCE: National Fuel Gas Company

National Fuel Gas Company 
Analyst: 
Brian M. Welsch, 716-857-7875 
or 
Media: 
Karen L. Merkel, 716-857-7654


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