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National Fuel Gas Company$56.28($.51)(.90%)

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 National Fuel Reports Second Quarter Earnings
   Thursday, May 04, 2017 5:05:03 PM ET

National Fuel Gas Company ("National Fuel" or the "Company") (NFG ) today announced consolidated results for the second quarter of its 2017 fiscal year and for the six months ended March 31, 2017.

FISCAL 2017 SECOND QUARTER SUMMARY

-- Consolidated net income of $89.3 million or $1.04 per share compared to a consolidated net loss of $147.7 million or $1.74 per share in the prior year

-- Adjusted EBITDA of $227.0 million, up from $224.4 million in the prior year (non-GAAP reconciliation on page 22)

-- Net production of 45.6 Bcfe, a 16% increase from prior year

-- Seneca combined LOE, G&A and DD&A expenses of $1.92 per Mcfe, a $0.48 per Mcfe decrease from the prior year



-- Gathering revenues of $28.0 million on 50.6 Bcf of system throughput, a 29% increase from the prior year

-- Weather in Utility’s Pennsylvania service territory 4.1% warmer than prior year and 15.5% warmer than normal

-- Raising and tightening fiscal 2017 earnings guidance to a range of $3.20 to $3.35 per share

-- Raising and tightening fiscal 2017 production guidance to a range of 165 to 180 Bcfe

OPERATING RESULTS
 
                                                                                                           Three Months Ended                                                                               Six Months Ended
                                                                                                                                   March 31,                                                                                                          March 31,
(in thousands except per share amounts)                                                                 2017                                  2016                                                      2017                                  2016
                                                                                         -----------------------------------                     -------------------------------------                     ------------------------------------                     -------------------------------------
Reported GAAP earnings (loss)                                                                 $ 89,284                                                $ (147,687 )                                              $ 178,191                                                $ (336,796 )
    Items impacting comparability:
        Impairment of oil and gas properties (E&P)                                                                                                       397,443                                                                                                            832,894
        Tax impact of impairment of oil and gas properties                                                                                              (166,926 )                                                                                                         (349,814 )
        Joint development agreement professional fees (E&P)                                                                                                                                                                                                                   4,682
        Tax impact of joint development agreement professional fees                                                                                                                                                 (1,966 )
                                                                                         -----------------------------------                     -------------------------------------                     ------------------------------------                     ------------------------------------
Operating Results                                                                             $ 89,284                             $   82,830                             $ 178,191                             $  149,000  
                                                                                         ====== ====== ====================                      ====== ======== ====================                      ====== ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                     
Reported GAAP earnings (loss) per share                                                       $   1.04                                                $    (1.74 )                                              $    2.07                                                $    (3.97 )
Items impacting comparability:
    Impairment of oil and gas properties (E&P)                                                                                                              4.69                                                                                                               9.83
        Tax impact of impairment of oil and gas properties                                                                                                 (1.97 )                                                                                                            (4.13 )
        Joint development agreement professional fees (E&P)                                                                                                                                                                                                                    0.06
        Tax impact of joint development agreement professional fees                                                                                                                                                                                                           (0.02 )
        Earnings per share impact of diluted shares                                                                                     (0.01 )                                                                                         (0.02 )
                                                                                         -----------------------------------                     ------------------------------------                      ------------------------------------                     ------------------------------------
Operating Results per diluted share                                                           $   1.04                             $     0.97                             $    2.07                             $     1.75  
                                                                                         ====== ====== ====================                      ====== ======== ====================                      ====== ======= ====================                      ====== ======== ====================
 

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: "Strong performance in our Exploration & Production and Gathering segments over each of our last two quarters bodes well for our whole fiscal year. These segments continue to benefit from improving natural gas prices in the Appalachian basin. Given the relative near-term strength we are seeing in local pricing, we are positioning our near-term development and marketing plans to target a 10-plus percent annual growth rate in our Appalachian production over the next three years and lock-in attractive returns on our low-cost drilling program and gathering investments. Seneca is in the process of adding a second rig to prepare for the start of its Atlantic Sunrise capacity and eventually begin Utica Shale development in Tioga County, Pa., in fiscal 2018, providing opportunities for further growth.

"The higher earnings in our unregulated segments more than offset the decline in earnings in our regulated Pipeline & Storage and Utility segments, where a number of minor factors drove earnings modestly lower than the previous year. Since most of the daily operational activities of the regulated companies remain fairly routine from year to year, these minor variances are not uncommon. However, the increasingly difficult regulatory policies in New York are impacting our ability to make reasoned decisions with respect to additional investments in these segments in the state. Nonetheless, our dedicated employees continue to execute our operational plan to ensure safe and reliable natural gas service for our customers in New York and Pennsylvania.

"While we sort through the delay of our Northern Access pipeline project, we will concentrate on our investment opportunities outside the state of New York. As we focus on our Exploration & Production and Gathering segments, along with ongoing investment in the expansion and modernization of our pipeline systems where possible, I am confident that we can continue to grow our integrated businesses."

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form on pages 7 through 10 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                                                                         Six Months Ended
                                                                                               March 31,                                                                                                    March 31,
                                                             -----------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------
(in thousands except per share amounts)                         2017         2016         Variance                          2017          2016                   Variance
                                                             ------------------------------ --------------------------------- ------------                     ------------------------------- --------------------------------- --------------------------------
Net Income / (Loss)                                          $ 33,769    $ (213,335 )    $ 247,104                       $  68,849    $ (450,421 )    $ 519,270  
Net Income / (Loss) Per Share (Diluted)                      $   0.39                       $    (2.52 )                       $    2.91                       $    0.80                       $    (5.32 )                       $    6.12
Adjusted EBITDA                                              $ 93,970                       $   79,608                         $  14,362                       $ 196,447                       $  170,749                         $  25,698
 

Net income in the Exploration and Production segment in the second quarter was $33.8 million or $0.39 per share, compared to a net loss of $213.3 million or $2.52 per share in the prior year second quarter, an increase of $247.1 million or $2.91 per share. Excluding the impact of last year’s impairment charge, the increase in the Exploration and Production segment’s second quarter earnings is mainly due to higher natural gas production, lower operating expenses and a lower effective income tax rate, offset partially by a decrease in oil production and lower realized natural gas prices after the impact of hedging. In the prior year second quarter, Seneca recorded a $397.4 million ($230.5 million after-tax) ceiling test impairment charge to reduce the value of Seneca’s oil and gas properties. There was no ceiling test impairment charge in the current year’s second 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 March 31, 2017, the ceiling exceeded the book value of the oil and gas properties by approximately $201.0 million. Seneca does not expect to incur any impairment charges in fiscal 2017 due to the improvement in oil and gas prices and lower expected operating and well development costs.

Seneca’s net production was 45.6 billion cubic feet equivalent ("Bcfe"), an increase of 6.4 Bcfe or 16 percent versus the prior year second quarter, and 0.7 Bcfe or 2 percent versus the first quarter of fiscal 2017. Net natural gas production increased 6.7 Bcf or 19 percent versus the prior year due to higher natural gas production in Appalachia. An improvement in local natural gas pricing in Pennsylvania allowed Seneca to produce all of its available production volumes during the second quarter. Seneca voluntarily curtailed approximately 9.1 Bcf (net) of natural gas production in the prior year second quarter. Seneca’s crude oil production decreased 49 thousand barrels ("Mbbl") or 7 percent due mainly to changes in steam operations and a reduction in well workover activity at its North Midway Sunset field.

Seneca’s average realized natural gas price, after the impact of hedging, for the second quarter was $2.96 per thousand cubic feet ("Mcf"), a decrease of $0.03 per Mcf versus the prior year. Seneca’s average realized oil price, after the impact of hedging, was $52.92 per barrel ("Bbl"), a decrease of $0.09 per Bbl. Seneca’s average realized natural gas and oil prices benefited from an uplift of $0.21 per Mcf and $4.96 per Bbl, respectively, from financial hedges settled during the quarter.

Lease operating and transportation expense ("LOE") increased $5.0 million due mainly to higher production. However, LOE expense on a per unit of production basis decreased from $0.96 per Mcfe to $0.93 per Mcfe. The $0.03 per Mcfe improvement is largely the result of higher Appalachian natural gas production, which carries a lower per unit LOE cost relative to Seneca’s California oil operations, as well as a general reduction in well repair and maintenance costs across Seneca’s California and Appalachia divisions.

Seneca’s General & Administrative ("G&A") expense decreased $2.6 million due to lower personnel costs. Seneca’s per unit of production G&A expense for the quarter was $0.36 per Mcfe, a decrease of $0.13 per Mcfe or 27 percent from the prior year.

Depreciation, depletion and amortization ("DD&A") expense decreased $8.4 million due to lower per unit DD&A, offset partially by the impact of higher production. Seneca’s per unit DD&A decreased by $0.32 per Mcf equivalent ("Mcfe") to $0.63 per Mcfe due to a lower depletable fixed asset balance resulting mainly from the ceiling test impairment charges recorded during the past year.

Seneca’s effective income tax rate decreased in the second quarter due primarily to an enhanced oil recovery tax credit related to Seneca’s California properties. This credit was applicable this year as a result of relatively low domestic crude oil prices.

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                                                             Six Months Ended
                                                                                              March 31,                                                                                        March 31,
                                                             ---------------------------------------------------------------------------                     ----------------------------------------------------------------------------
(in thousands except per share amounts)                         2017        2016       Variance                           2017        2016        Variance
                                                             ------------------------------ ------------------------------ -------------                     ------------------------------ ------------------------------- -------------
Net Income / (Loss)                                          $ 19,256    $ 21,194     $ (1,938 )                       $ 38,624    $  42,470     $ (3,846 )
Net Income / (Loss) Per Share (Diluted)                      $   0.22                       $   0.25                        $  (0.03 )                       $   0.45                       $    0.50                        $  (0.05 )
Adjusted EBITDA                                              $ 49,103                       $ 53,672                        $ (4,569 )                       $ 97,116                       $ 104,415                        $ (7,299 )
 

The Pipeline and Storage segment’s second quarter earnings decreased from the prior year due primarily to a $3.8 million decline in operating revenues. The decrease in revenues was the result of the reduction in Supply Corporation and Empire’s rates related to their rate case settlements that went into effect in 2016, as well as a decline in short-term transportation contracts in the current quarter.

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                                                                   Six Months Ended
                                                                                             March 31,                                                                                              March 31,
                                                             ------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------
(in thousands except per share amounts)                         2017        2016      Variance                         2017        2016                Variance
                                                             ------------------------------ ------------------------------ ----------                     ------------------------------ ------------------------------ -------------------------------
Net Income / (Loss)                                          $ 10,285    $  7,568     $ 2,717                       $ 21,266    $ 12,490     $  8,776  
Net Income / (Loss) Per Share (Diluted)                      $   0.12                       $   0.09                        $  0.03                       $   0.25                       $   0.15                        $   0.10
Adjusted EBITDA                                              $ 24,172                       $ 18,831                        $ 5,341                       $ 49,273                       $ 35,290                        $ 13,983
 

The Gathering segment’s second quarter earnings increased $2.7 million or 36 percent versus the prior year on higher revenues offset slightly by higher operating expenses. Operating revenues increased $6.3 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 second quarter, up 11.4 Bcf or 29 percent from the prior year. Operation and Maintenance ("O&M") expenses were up $1.0 million versus the prior year due to higher costs associated with operating new compression and dehydration facilities at the segment’s Clermont gathering system.

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                                                             Six Months Ended
                                                                                              March 31,                                                                                        March 31,
                                                             ---------------------------------------------------------------------------                     -----------------------------------------------------------------------------
(in thousands except per share amounts)                         2017        2016       Variance                           2017         2016        Variance
                                                             ------------------------------ ------------------------------ -------------                     ------------------------------- ------------------------------- -------------
Net Income / (Loss)                                          $ 25,581    $ 31,960     $ (6,379 )                       $  46,755    $  50,566     $ (3,811 )
Net Income / (Loss) Per Share (Diluted)                      $   0.30                       $   0.38                        $  (0.08 )                       $    0.54                       $    0.60                        $  (0.06 )
Adjusted EBITDA                                              $ 61,580                       $ 69,467                        $ (7,887 )                       $ 113,909                       $ 115,382                        $ (1,473 )
 

The Utility segment’s second quarter earnings decreased $6.4 million or 20 percent due primarily to higher O&M and DD&A expenses and warmer weather. O&M expense increased $6.5 million versus the prior year due mainly to higher pension and benefits costs and uncollectible accounts. DD&A expense increased $1.7 million due to higher plant balances at March 31, 2017, which was primarily driven by the replacement of Distribution’s legacy customer information system that was placed in service in May 2016.

The weather was 4.1 percent warmer than last year and 15.5 percent warmer than normal in Distribution’s Pennsylvania service territory, resulting in lower retail residential and transportation customer throughput and revenues when compared to both the prior year and Company projections for earnings guidance purposes, which assumes normal weather. In New York, the impact of weather variations on earnings is largely mitigated by that jurisdiction’s weather normalization clause.

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                                                          Six Months Ended
                                                                                             March 31,                                                                                     March 31,
                                                             -------------------------------------------------------------------------                     -------------------------------------------------------------------------
(in thousands except per share amounts)                        2017       2016       Variance                          2017       2016       Variance
                                                             ----------------------------- ----------------------------- -------------                     ----------------------------- ----------------------------- -------------
Net Income / (Loss)                                          $   905    $ 3,484     $ (2,579 )                       $ 2,687    $ 4,707     $ (2,020 )
Net Income / (Loss) Per Share (Diluted)                      $  0.01                       $  0.04                        $  (0.03 )                       $  0.03                       $  0.06                        $  (0.03 )
Adjusted EBITDA                                              $ 1,382                       $ 5,653                        $ (4,271 )                       $ 4,230                       $ 7,500                        $ (3,270 )
 

The Energy Marketing segment’s second quarter earnings decreased $2.6 million due to lower margin. NFR’s customer margins were negatively impacted by stronger natural gas prices at local pricing points relative to NYMEX-based sales contracts and lower volumes as a result of warmer weather during the period.

Corporate and All Other

The Corporate and All Other category had a loss of $0.5 million or $0.00 per share for the second quarter compared to earnings of $1.4 million or $0.02 per share in the prior year. The $1.9 million decrease is primarily attributable to the non-recurrence of a death benefit gain on life insurance proceeds and related tax benefits that were recognized in the prior year.

GUIDANCE

The Company is raising and tightening its earnings guidance for fiscal 2017 to a range of $3.20 to $3.35 per share to reflect the impact of actual results for the six months ended March 31, 2017, and updates to key forecast assumptions, including positive revisions to the Exploration & Production segment’s forecasted production and operating expense assumptions, as outlined in the table below.

The Company is also updating fiscal 2017 capital expenditure guidance to a range of $450 to $530 million, a decrease of $100 million at the midpoint. Expected capital expenditures for the Pipeline & Storage segment were reduced by $115 million at the midpoint to reflect the delay in the Northern Access pipeline project. Changes to Exploration & Production, up $30 million at the midpoint of the range, and Gathering, down $15 million at the midpoint, were the result of changes in the timing of Seneca’s Appalachian development activities between fiscal 2017 and fiscal 2018. There were no changes to the Utility segment’s capital expenditure budget.

                                          Updated FY 2017 Guidance    Previous FY 2017 Guidance
                                          ------------------------                      -------------------------
Consolidated Earnings per Share                $3.20 to $3.35                                 $3.10 to $3.30
                                                                                         
Capital Expenditures (Millions)
    Exploration & Production (1)                 $210 - $250                                    $180 - $220
    Pipeline & Storage                           $100 - $120                                    $200 - $250
    Gathering                                     $50 - $60                                      $65 - $75
    Utility                                      $90 - $100                                     $90 - $100
    Consolidated Capital Expenditures            $450 - $530                                    $535 - $645
                                                                                         
Exploration & Production Segment Guidance
    NYMEX Natural Gas Price Assumption              $3.25                                          $3.25
    NYMEX Crude Oil Price Assumption               $55.00                                         $55.00
                                                                                         
    Production (Bcfe)
    East Division - Appalachia                   145 to 160                                     135 to 153
    West Division - California                        20                                         20 to 22
    Total Production                             165 to 180                                     155 to 175
                                                                                         
    E&P Operating Costs ($/Mcfe)
    LOE                                         $0.95 - $1.00                                  $0.95 - $1.05
    G&A                                         $0.35 - $0.40                                  $0.35 - $0.40
    DD&A                                        $0.60 - $0.65                                  $0.65 - $0.70

(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, May 5, 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 "4568855." 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) 800-585-8367 using conference ID number "4568855." Both the webcast and a telephonic replay will be available until the close of business on Friday, May 12, 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 MARCH 31, 2017
                                                                                                                                                                                                                       (Unaudited)
 
                                                                                                                                             Midstream                                                                                   Downstream                                                                 
                                                                                               Upstream                                                                           Businesses                                                                                                      Businesses
                                                                                  --------------------------------                        ------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------
                                                                                             Exploration &                                            Pipeline &                                                                                                                          Energy                                         Corporate /
(Thousands of Dollars)                                                                        Production                             Storage                             Gathering                             Utility                             Marketing                     All Other                    Consolidated*
                                                                                  ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                     
Second quarter 2016 GAAP earnings                                                    $ (213,335 )                                              $ 21,194                                                $  7,568                                                $ 31,960                                                $  3,484                                                $  1,442                                  $ (147,687 )
Items impacting comparability:
Impairment of oil and gas producing properties                                          397,443                                                                                                                                                                                                                                                                                                                             397,443
Tax impact of impairment of oil and gas producing properties                           (166,926 )                                                                                                         (166,926 )
                                                                                  ---------------------------------- -------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ------------------------------------
Second quarter 2016 operating results                                                    17,182                                                  21,194                                                   7,568                                                  31,960                                                   3,484                                                   1,442                                      82,830
                                                                                                                                                                                                                                                                                                                                                                                                                     
Drivers of operating results
Higher (lower) crude oil prices                                                             (39 )                                                                                                                                                                                                                                                                                                                               (39 )
Higher (lower) natural gas prices                                                          (962 )                                                                                                                                                                                                                                                                                                                              (962 )
Higher (lower) natural gas production                                                    12,963                                                                                                                                                                                                                                                                                                                              12,963
Higher (lower) crude oil production                                                      (1,680 )                                                                                                                                                                                                                                                                                                                            (1,680 )
Lower (higher) lease operating and transportation expenses                               (3,234 )                                                                                                                                                                                                                                                                                                                            (3,234 )
Lower (higher) depreciation / depletion                                                   5,475                                                     252                                                    (265 )                                                (1,076 )                                                                                                                                                     4,386
                                                                                                                                                                                                                                                                                                                                                                                                                     
Higher (lower) transportation and storage revenues                                                                                               (2,288 )                                                                                                                                                                                                                                                                    (2,288 )
Higher (lower) gathering and processing revenues                                                                                                                                                          4,098                                                                                                                                                                                                               4,098
Lower (higher) other operating expenses                                                   2,651                                                    (395 )                                                  (647 )                                                (3,775 )                                                                                                                                                    (2,166 )
                                                                                                                                                                                                                                                                                                                                                                                                                     
Regulatory true-up adjustments                                                                                                                                                                                                                                     (341 )                                                                                                                                                      (341 )
Warmer weather                                                                                                                                                                                                                                                     (733 )                                                                                                                                                      (733 )
                                                                                                                                                                                                                                                                                                                                                                                                                     
Higher (lower) margins                                                                                                                                                                                                                                                                                                   (2,686 )                                                  (223 )                                    (2,909 )
                                                                                                                                                                                                                                                                                                                                                                                                                     
Higher (lower) AFUDC**                                                                                                                              395                                                                                                            (582 )                                                                                                                                                      (187 )
                                                                                                                                                                                                                                                                                                                                                                                                                     
Lower (higher) interest expense                                                                                                                                                                            (206 )                                                                                                                                                                                                              (206 )
                                                                                                                                                                                                                                                                                                                                                                                                                     
Lower (higher) income tax expense / effective tax rate                                    1,539                                                                                                                                                                                                                                                                                  (1,037 )                                       502
                                                                                                                                                                                                                                                                                                                                                                                                                     
All other / rounding                                                                       (126 )                                 98              (263 )                                128               107              (694 )                   (750 )
                                                                                  ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- ------------------------------------
Second quarter 2017 GAAP earnings and operating results                              $   33,769          $ 19,256          $ 10,285          $ 25,581          $    905          $   (512 )             $   89,284  
                                                                                  ==== ======== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ====== ==================== ====== ======== ====================
 
* 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 MARCH 31, 2017
                                                                                                                                                                                                                                     (Unaudited)
 
                                                                                                                                                 Midstream                                                                                       Downstream                                                                                          
                                                                                                Upstream                                                                              Businesses                                                                                                          Businesses
                                                                                  ----------------------------------                        ----------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------
                                                                                              Exploration &                                              Pipeline &                                                                                                                                Energy                                                      Corporate /
                                                                                               Production                               Storage                               Gathering                               Utility                               Marketing                                  All Other                               Consolidated*
                                                                                  --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Second quarter 2016 GAAP earnings                                                       $   (2.52 )                                               $    0.25                                                 $    0.09                                                 $    0.38                                                 $    0.04                                                 $           0.02                                                 $   (1.74 )
Items impacting comparability:
Impairment of oil and gas producing properties                                               4.69                                                                                                                                                                                                                                                                                                                                                               4.69
Tax impact of impairment of oil and gas producing properties                                (1.97 )                                                                                                                                                                                                                                                                                                                                                            (1.97 )
Earnings per share impact of diluted shares                                                                                                                                                            (0.01 )                                (0.01 )
                                                                                  --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------------------- -------------------- ------------------------------------
Second quarter 2016 operating results                                                        0.20                                                      0.25                                                      0.09                                                      0.38                                                      0.04                                                             0.01                                                      0.97
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Drivers of operating results
Higher (lower) crude oil prices                                                    --                                                                                                                                                                                                                                                                                                                                                     --
Higher (lower) natural gas prices                                                           (0.01 )                                                                                                                                                                                                                                                                                                                                                            (0.01 )
Higher (lower) natural gas production                                                        0.15                                                                                                                                                                                                                                                                                                                                                               0.15
Higher (lower) crude oil production                                                         (0.02 )                                                                                                                                                                                                                                                                                                                                                            (0.02 )
Lower (higher) lease operating and transportation expenses                                  (0.04 )                                                                                                                                                                                                                                                                                                                                                            (0.04 )
Lower (higher) depreciation / depletion                                                      0.06                                            --                                            --                                                     (0.01 )                                                                                                                                                                               0.05
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Higher (lower) transportation and storage revenues                                                                                                    (0.03 )                                                                                                                                                                                                                                                                                                  (0.03 )
Higher (lower) gathering and processing revenues                                                                                                                                                                 0.05                                                                                                                                                                                                                                           0.05
Lower (higher) other operating expenses                                                      0.03                                            --                                                     (0.01 )                                                   (0.04 )                                                                                                                                                                              (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Regulatory true-up adjustments                                                                                                                                                                                                                                   --                                                                                                                                                                       --
Warmer weather                                                                                                                                                                                                                                                            (0.01 )                                                                                                                                                                              (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Higher (lower) margins                                                                                                                                                                                                                                                                                                              (0.03 )                                                 --                                                     (0.03 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Higher (lower) AFUDC**                                                                                                                       --                                                                                                               (0.01 )                                                                                                                                                                              (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Lower (higher) interest expense                                                                                                                                                                        --                                                                                                                                                                                                                                 --
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Lower (higher) income tax expense / effective tax rate                                       0.02                                                                                                                                                                                                                                                                                                    (0.01 )                                                    0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
All other / rounding                                                               --      --               (0.01 )                                (0.01 )                       --             --               (0.02 )
                                                                                  ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------------- -------------------- ------------------------------------
Second quarter 2017 GAAP earnings and operating results                                 $    0.39           $    0.22           $    0.12           $    0.30           $    0.01           $ --           $    1.04  
                                                                                  ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ============== ==================== ==================== ======= ======= ====================
 
* 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
                                                                                                                                                                                                                    SIX MONTHS ENDED MARCH 31, 2017
                                                                                                                                                                                                                              (Unaudited)
 
                                                                                                                                             Midstream                                                                                   Downstream                                                                               
                                                                                               Upstream                                                                           Businesses                                                                                                      Businesses
                                                                                  --------------------------------                        ------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------
                                                                                             Exploration &                                            Pipeline &                                                                                                                          Energy                                                Corporate /
(Thousands of Dollars)                                                                        Production                             Storage                             Gathering                             Utility                             Marketing                            All Other                           Consolidated*
                                                                                  ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Six months ended March 31, 2016 GAAP earnings                                        $ (450,421 )                                              $ 42,470                                                $ 12,490                                                $ 50,566                                                $  4,707                                                $  3,392                                                $ (336,796 )
Items impacting comparability:
Impairment of oil and gas producing properties                                          832,894                                                                                                                                                                                                                                                                                                                                           832,894
Tax impact of impairment of oil and gas producing properties                           (349,814 )                                                                                                                                                                                                                                                                                                                                        (349,814 )
Joint development agreement professional fees                                             4,682                                                                                                                                                                                                                                                                                                                                             4,682
Tax impact of joint development agreement professional fees                              (1,966 )                                                                                                                         (1,966 )
                                                                                  ---------------------------------- -------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------
Six months ended March 31, 2016 operating results                                        35,375                                                  42,470                                                  12,490                                                  50,566                                                   4,707                                                   3,392                                                   149,000
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Drivers of operating results
Higher (lower) crude oil prices                                                          (2,356 )                                                                                                                                                                                                                                                                                                                                          (2,356 )
Higher (lower) natural gas prices                                                        (5,992 )                                                                                                                                                                                                                                                                                                                                          (5,992 )
Higher (lower) natural gas production                                                    27,346                                                                                                                                                                                                                                                                                                                                            27,346
Higher (lower) crude oil production                                                      (2,791 )                                                                                                                                                                                                                                                                                                                                          (2,791 )
Lower (higher) lease operating and transportation expenses                               (3,680 )                                                                                                                                                                                                                                                                                                                                          (3,680 )
Lower (higher) depreciation / depletion                                                  15,212                                                     639                                                                                                          (2,040 )                                                                                                                                                                  13,811
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Higher (lower) transportation and storage revenues                                                                                               (2,373 )                                                                                                                                                                                                                                                                                  (2,373 )
Higher (lower) gathering and processing revenues                                                                                                                                                         10,014                                                                                                                                                                                                                            10,014
Lower (higher) other operating expenses                                                   4,531                                                  (2,116 )                                                  (959 )                                                (5,647 )                                                                                                          (667 )                                                  (4,858 )
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Regulatory true-up adjustments                                                                                                                                                                                                                                      961                                                                                                                                                                       961
Colder weather                                                                                                                                                                                                                                                    2,249                                                                                                                                                                     2,249
Higher (lower) usage                                                                                                                                                                                                                                              1,395                                                                                                                                                                     1,395
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Higher (lower) margins                                                                                                                                                                                                                                                                                                   (2,090 )                                                  (321 )                                                  (2,411 )
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Higher (lower) AFUDC**                                                                                                                             (500 )                                                                                                        (1,060 )                                                                                                                                                                  (1,560 )
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Lower (higher) interest expense                                                             846                                                                                                             428                                                                                                                                                                                                                             1,274
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Lower (higher) income tax expense / effective tax rate                                    1,012                                                     517                                                    (854 )                                                                                                                                                                (2,072 )                                                  (1,397 )
                                                                                                                                                                                                                                                                                                                                                                                                                                   
All other / rounding                                                                       (654 )                                (13 )                                147               331                70              (322 )                                 (441 )
                                                                                  ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ------------------------------------
Six months ended March 31, 2017 GAAP earnings and operating                          $   68,849          $ 38,624          $ 21,266          $ 46,755          $  2,687          $     10          $  178,191  
results
                                                                                  ==== ======== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ======== ====================
 
* 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
                                                                                                                                                                                                                       SIX MONTHS ENDED MARCH 31, 2017
                                                                                                                                                                                                                                 (Unaudited)
 
                                                                                                                                              Midstream                                                                                  Downstream                                                                                      
                                                                                               Upstream                                                                            Businesses                                                                                                     Businesses
                                                                                  --------------------------------                        --------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------
                                                                                             Exploration &                                            Pipeline &                                                                                                                       Energy                                                      Corporate /
                                                                                              Production                             Storage                              Gathering                           Utility                           Marketing                                  All Other                              Consolidated*
                                                                                  ------------------------------------------------------- ------------------------------------------------------- --------------------------------------------------------- ------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Six months ended March 31, 2016 GAAP earnings                                          $  (5.32 )                                              $   0.50                                                 $    0.15                                            $ 0.60                                                 $    0.06                                                 $           0.04                                                $  (3.97 )
Items impacting comparability:
Impairment of oil and gas producing properties                                             9.83                                                                                                                                                                                                                                                                                                                                                   9.83
Tax impact of impairment of oil and gas producing properties                              (4.13 )                                                                                                                                                                                                                                                                                                                                                (4.13 )
Joint development agreement professional fees                                              0.06                                                                                                                                                                                                                                                                                                                                                   0.06
Tax impact of joint development agreement professional fees                               (0.02 )                                                                                                                                                                                                                                                                                                                                                (0.02 )
Earnings per share impact of diluted shares                                                                                                 (0.01 )                                (0.01 )                                                         (0.02 )
                                                                                  ------------------------------------------------------- ------------------------------------------------------- --------------------------------------------------------- ---------------------------- -------------------- ------------------------------------ -------------------- ---------------------------------------------------------------- ----------------------------------
Six months ended March 31, 2016 operating results                                          0.42                                                    0.50                                                      0.15                                              0.59                                                      0.05                                                             0.04                                                    1.75
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Drivers of operating results
Higher (lower) crude oil prices                                                           (0.03 )                                                                                                                                                                                                                                                                                                                                                (0.03 )
Higher (lower) natural gas prices                                                         (0.07 )                                                                                                                                                                                                                                                                                                                                                (0.07 )
Higher (lower) natural gas production                                                      0.32                                                                                                                                                                                                                                                                                                                                                   0.32
Higher (lower) crude oil production                                                       (0.03 )                                                                                                                                                                                                                                                                                                                                                (0.03 )
Lower (higher) lease operating and transportation expenses                                (0.04 )                                                                                                                                                                                                                                                                                                                                                (0.04 )
Lower (higher) depreciation / depletion                                                    0.18                                                    0.01                                                                                                       (0.02 )                                                                                                                                                                             0.17
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Higher (lower) transportation and storage revenues                                                                                                (0.03 )                                                                                                                                                                                                                                                                                        (0.03 )
Higher (lower) gathering and processing revenues                                                                                                                                                             0.12                                                                                                                                                                                                                                 0.12
Lower (higher) other operating expenses                                                    0.05                                                   (0.02 )                                                   (0.01 )                                           (0.07 )                                                                                                                    (0.01 )                                                 (0.06 )
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Regulatory true-up adjustments                                                                                                                                                                                                                                 0.01                                                                                                                                                                               0.01
Colder weather                                                                                                                                                                                                                                                 0.03                                                                                                                                                                               0.03
Higher (lower) usage                                                                                                                                                                                                                                           0.02                                                                                                                                                                               0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Higher (lower) margins                                                                                                                                                                                                                                                                                                  (0.02 )                                                 --                                                   (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Higher (lower) AFUDC**                                                                                                                            (0.01 )                                                                                                     (0.01 )                                                                                                                                                                            (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Lower (higher) interest expense                                                            0.01                                                                                                    --                                                                                                                                                                                                                                 0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Lower (higher) income tax expense / effective tax rate                                     0.01                                                    0.01                                                     (0.01 )                                                                                                                                                                      (0.02 )                                                 (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                          
All other / rounding                                                                      (0.02 )                              (0.01 )                       --       (0.01 )                       --                      (0.01 )                              (0.05 )
                                                                                  ---------------------------------- -------------------- ---------------------------------- -------------------- ------------------------------------ -------------------- ---------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------------- -------------------- ----------------------------------
Six months ended March 31, 2017 GAAP earnings and operating                            $   0.80          $   0.45           $    0.25      $ 0.54           $    0.03           $ --          $   2.07  
results
                                                                                  ====== ====== ==================== ==================== ====== ====== ==================== ==================== ======= ======= ==================== ==================== == ==== ==================== ==================== ======= ======= ==================== ==================== ======= ============== ==================== ==================== ====== ====== ====================
 
* 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                                                                               Six Months Ended
                                                                                                                  March 31,                                                                                                          March 31,
                                                                                                                 (Unaudited)                                                                                                        (Unaudited)
                                                                        ---------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
SUMMARY OF OPERATIONS                                                                   2017                                  2016                                                     2017                                   2016
--------------------------------------------------                      ----------------------------------   -------------------- --------------------------------                        ----------------------------------   -------------------- ----------------------------------
Operating Revenues:                                                                                                                                                                                          
    Utility and Energy Marketing Revenues                                     $ 308,889                                              $  248,173                                                 $ 516,669                                                $  417,005
    Exploration and Production and Other Revenues                               159,997                                                 144,570                                                   321,691                                                   297,454
    Pipeline and Storage and Gathering Revenues                                  53,189                               56,389                                106,216                                109,868  
                                                                        ------------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                522,075                                                 449,132                                                   944,576                                                   824,327
Operating Expenses:
    Purchased Gas                                                               147,971                                                  81,623                                                   218,214                                                   123,691
    Operation and Maintenance:
        Utility and Energy Marketing                                             63,907                                                  57,309                                                   114,329                                                   104,858
        Exploration and Production and Other                                     37,593                                                  42,964                                                    68,055                                                    88,539
        Pipeline and Storage and Gathering                                       23,106                                                  21,541                                                    45,766                                                    41,109
    Property, Franchise and Other Taxes                                          22,542                                                  21,305                                                    42,921                                                    41,662
    Depreciation, Depletion and Amortization                                     56,999                                                  63,947                                                   113,194                                                   134,498
    Impairment of Oil and Gas Producing Properties                       --                              397,443                         --                                832,894  
                                                                        ------------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                352,118                                                 686,132                                                   602,479                                                 1,367,251
                                                                                                                                                                                                                                                     
Operating Income (Loss)                                                         169,957                                                (237,000 )                                                 342,097                                                  (542,924 )
                                                                                                                                                                                                                                                     
Other Income (Expense):
    Interest Income                                                                 391                                                     278                                                     1,991                                                     2,077
    Other Income                                                                  1,744                                                   3,236                                                     3,356                                                     5,654
    Interest Expense on Long-Term Debt                                          (28,913 )                                               (28,994 )                                                 (58,016 )                                                 (59,366 )
    Other Interest Expense                                                         (924 )                                                (1,237 )                                                  (1,834 )                                                  (2,617 )
                                                                        ------------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                     
Income (Loss) Before Income Taxes                                               142,255                                                (263,717 )                                                 287,594                                                  (597,176 )
                                                                                                                                                                                                                                                     
Income Tax Expense (Benefit)                                                     52,971                             (116,030 )                                                 109,403                               (260,380 )
                                                                        ------------------------------------                      ----------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                     
Net Income (Loss) Available for Common Stock                                  $  89,284                           $ (147,687 )                                               $ 178,191                             $ (336,796 )
                                                                        ======= ======= ====================                      ==== ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                     
Earnings (Loss) Per Common Share:
    Basic                                                                     $    1.05                           $    (1.74 )                                               $    2.09                             $    (3.97 )
                                                                        ======= ======= ====================                      ==== ======== ====================                      ======= ======= ====================                      ====== ======== ====================
    Diluted                                                                   $    1.04                           $    (1.74 )                                               $    2.07                             $    (3.97 )
                                                                        ======= ======= ====================                      ==== ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                     
Weighted Average Common Shares:
Used in Basic Calculation                                                                         85,334,887                                              84,806,982                                                85,261,575                                                84,728,680
                                                                        =====================================                     ===================================                     =====================================                     =====================================
Used in Diluted Calculation                                                                       86,006,614                                              84,806,982                                                85,897,282                                                84,728,680
                                                                        =====================================                     ===================================                     =====================================                     =====================================
 
                                                                                                    NATIONAL FUEL GAS COMPANY
                                                                                                        AND SUBSIDIARIES
                                                                                                   CONSOLIDATED BALANCE SHEETS
                                                                                                           (Unaudited)
 
                                                                                              March 31,                                                September 30,
(Thousands of Dollars)                                                                          2017                                                       2016
------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- ---------------------------------------------------------
                                                                                                                                                                        
ASSETS
Property, Plant and Equipment                                                                               $      9,704,134                                                              $      9,539,581
Less - Accumulated Depreciation, Depletion and Amortization                  5,185,077            5,085,099  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Net Property, Plant and Equipment                                        4,519,057            4,454,482  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                        
Current Assets:
Cash and Temporary Cash Investments                                                                                  231,173                                                                       129,972
Hedging Collateral Deposits                                                                                            1,771                                                                         1,484
Receivables - Net                                                                                                    171,162                                                                       133,201
Unbilled Revenue                                                                                                      52,852                                                                        18,382
Gas Stored Underground                                                                                                 9,027                                                                        34,332
Materials and Supplies - at average cost                                                                              34,695                                                                        33,866
Unrecovered Purchased Gas Costs                                                                                        4,681                                                                         2,440
Other Current Assets                                                            51,585               59,354  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Total Current Assets                                                       556,946              413,031  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                        
Other Assets:
Recoverable Future Taxes                                                                                             179,928                                                                       177,261
Unamortized Debt Expense                                                                                               1,424                                                                         1,688
Other Regulatory Assets                                                                                              314,903                                                                       320,750
Deferred Charges                                                                                                      26,128                                                                        20,978
Other Investments                                                                                                    117,284                                                                       110,664
Goodwill                                                                                                               5,476                                                                         5,476
Prepaid Post-Retirement Benefit Costs                                                                                 18,315                                                                        17,649
Fair Value of Derivative Financial Instruments                                                                        64,729                                                                       113,804
Other                                                                              485                  604  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Total Other Assets                                                         728,672              768,874  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total Assets                                                                             $      5,804,675                        $      5,636,387  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                        
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 85,375,068 Shares
and 85,118,886 Shares, Respectively                                                                         $         85,375                                                              $         85,119
Paid in Capital                                                                                                      782,688                                                                       771,164
Earnings Reinvested in the Business                                                                                  817,348                                                                       676,361
Accumulated Other Comprehensive Loss                                           (34,091 )                                (5,640 )
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total Comprehensive Shareholders’ Equity                                                                           1,651,320                                                                     1,527,004
Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs          2,087,385            2,086,252  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Total Capitalization                                                     3,738,705            3,613,256  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                        
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper                                                                   --                                                                --
Current Portion of Long-Term Debt                                                                             --                                                                --
Accounts Payable                                                                                                     111,382                                                                       108,056
Amounts Payable to Customers                                                                                          19,466                                                                        19,537
Dividends Payable                                                                                                     34,577                                                                        34,473
Interest Payable on Long-Term Debt                                                                                    34,900                                                                        34,900
Customer Advances                                                                                                        300                                                                        14,762
Customer Security Deposits                                                                                            17,512                                                                        16,019
Other Accruals and Current Liabilities                                                                               106,287                                                                        74,430
Fair Value of Derivative Financial Instruments                                   1,471                1,560  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Total Current and Accrued Liabilities                                      325,895              303,737  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                        
Deferred Credits:
Deferred Income Taxes                                                                                                837,098                                                                       823,795
Taxes Refundable to Customers                                                                                         93,506                                                                        93,318
Cost of Removal Regulatory Liability                                                                                 196,901                                                                       193,424
Other Regulatory Liabilities                                                                                          91,661                                                                        99,789
Pension and Other Post-Retirement Liabilities                                                                        291,259                                                                       277,113
Asset Retirement Obligations                                                                                         114,014                                                                       112,330
Other Deferred Credits                                                         115,636              119,625  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Total Deferred Credits                                                   1,740,075            1,719,394  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Commitments and Contingencies                                           --       --  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total Capitalization and Liabilities                                                     $      5,804,675                        $      5,636,387  
------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
 
                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                         AND SUBSIDIARIES
                                                                               CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                            (Unaudited)
                                                                                                                     Six Months Ended
                                                                                                                                            March 31,
(Thousands of Dollars)                                                                        2017                                      2016
----------------------------------------------------------------------- -------------------- ---------------------------------------------------------------- -------------------------------------
                                                                                                                                          
Operating Activities:
Net Income (Loss) Available for Common Stock                                                       $        178,191                                                $ (336,796 )
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by
Operating Activities:
    Impairment of Oil and Gas Producing Properties                                                   --                                                   832,894
    Depreciation, Depletion and Amortization                                                                113,194                                                   134,498
    Deferred Income Taxes                                                                                    63,781                                                  (283,912 )
    Excess Tax Benefits Associated with Stock-Based Compensation Awards                              --                                                      (226 )
    Stock-Based Compensation                                                                                  5,632                                                     2,518
    Other                                                                                                     7,713                                                     6,106
Change in:
    Hedging Collateral Deposits                                                                                (287 )                                                   1,161
    Receivables and Unbilled Revenue                                                                        (92,155 )                                                 (28,211 )
    Gas Stored Underground and Materials and Supplies                                                        24,476                                                    22,637
    Unrecovered Purchased Gas Costs                                                                          (2,241 )                                                  (1,245 )
    Other Current Assets                                                                                      7,769                                                     4,177
    Accounts Payable                                                                                         13,997                                                   (31,786 )
    Amounts Payable to Customers                                                                                (71 )                                                 (14,561 )
    Customer Advances                                                                                       (14,462 )                                                 (16,203 )
    Customer Security Deposits                                                                                1,493                                                      (389 )
    Other Accruals and Current Liabilities                                                                   44,690                                                    22,420
    Other Assets                                                                                                (32 )                                                   3,754
    Other Liabilities                                                                        202              (4,073 )
----------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
        Net Cash Provided by Operating Activities                               $        351,890          $  312,763  
----------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                               
Investing Activities:
Capital Expenditures                                                                               $       (208,231 )                                              $ (358,981 )
Net Proceeds from Sale of Oil and Gas Producing Properties                                                   26,554                                                   104,938
Other                                                                                     (3,225 )                              (18,249 )
----------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
        Net Cash Used in Investing Activities                                   $       (184,902 )                           $ (272,292 )
----------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                               
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards                                $ --                                                $      226
Dividends Paid on Common Stock                                                                              (69,017 )                                                 (66,887 )
Net Proceeds From Issuance of Common Stock                                                 3,230               6,294  
----------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
        Net Cash Used in Financing Activities                                   $        (65,787 )                           $  (60,367 )
----------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                               
Net Increase (Decrease) in Cash and Temporary Cash Investments                                              101,201                                                   (19,896 )
Cash and Temporary Cash Investments at Beginning of Period                               129,972             113,596  
----------------------------------------------------------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
Cash and Temporary Cash Investments at March 31                                 $        231,173          $   93,700  
----------------------------------------------------------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
 
                                                                                                                                                                                        NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                            AND SUBSIDIARIES
 
                                                                                                                                                                                SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                               (UNAUDITED)
 
                                                                                                                                                                                            UPSTREAM BUSINESS
 
                                                                                                                       Three Months Ended                                                                                                                                      Six Months Ended
(Thousands of Dollars, except per share amounts)                                                                                               March 31,                                                                                                                                                                 March 31,
                                                                         ----------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------
EXPLORATION AND PRODUCTION SEGMENT                                                       2017                                  2016                               Variance                                                  2017                                  2016                                Variance
---------------------------------------------------                      ----------------------------------   -------------------- --------------------------------   -------------------- -------------------------------                        ----------------------------------   -------------------- --------------------------------   -------------------- ---------------------------------
Total Operating Revenues                                                       $ 159,553        $  143,783        $  15,770                              $ 320,485        $  295,749          $  24,736  
                                                                         ------- ------- -------------------- -------------------- ---- -------- -------------------- -------------------- ---- ------- --------------------                      ------- ------- -------------------- -------------------- ---- -------- -------------------- -------------------- ------ ------- --------------------
                                                                                                                                                                                                                                                                                       
Operating Expenses:
    Operation and Maintenance:
        General and Administrative Expense                                        16,530                                                  19,143                                                 (2,613 )                                                  29,504                                                  39,099                                                   (9,595 )
        Lease Operating and Transportation Expense                                42,543                                                  37,568                                                  4,975                                                    82,251                                                  76,590                                                    5,661
        All Other Operation and Maintenance Expense                                2,781                                                   4,247                                                 (1,466 )                                                   5,332                                                   7,391                                                   (2,059 )
Property, Franchise and Other Taxes                                                3,729                                                   3,217                                                    512                                                     6,951                                                   6,602                                                      349
Depreciation, Depletion and Amortization                                          28,851                                                  37,274                                                 (8,423 )                                                  57,905                                                  81,307                                                  (23,402 )
Impairment of Oil and Gas Producing Properties                            --           397,443         (397,443 )                                          --           832,894           (832,894 )
                                                                         ------------------------------------ -------------------- ---------------------------------- -------------------- ---------------------------------                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
                                                                                  94,434           498,892         (404,458 )                                                 181,943         1,043,883           (861,940 )
                                                                         ------------------------------------ -------------------- ---------------------------------- -------------------- ---------------------------------                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                     
Operating Income (Loss)                                                           65,119                                                                    (355,109)                           420,228                                                   138,542                                                                    (748,134)                             886,676
                                                                                                                                                                                                                                                                                                                                                                     
Other Income (Expense):
    Interest Income                                                                  147                                                      27                                                    120                                                       233                                                     693                                                     (460 )
    Interest Expense                                                             (13,303 )                            (13,546 )                               243                                (26,826 )                            (28,128 )                               1,302  
                                                                         ------------------------------------ -------------------- ---------------------------------- -------------------- ---------------------------------                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                     
Income (Loss) Before Income Taxes                                                 51,963                                                (368,628 )                                              420,591                                                   111,949                                                (775,569 )                                                887,518
Income Tax Expense (Benefit)                                                      18,194          (155,293 )                           173,487                                 43,100          (325,148 )                             368,248  
                                                                         ------------------------------------ -------------------- ---------------------------------- -------------------- ---------------------------------                      ------------------------------------ -------------------- ---------------------------------- -------------------- -----------------------------------
Net Income (Loss)                                                              $  33,769        $ (213,335 )                         $ 247,104                              $  68,849        $ (450,421 )                           $ 519,270  
                                                                         ======= ======= ==================== ==================== ==== ======== ==================== ==================== ==== ======= ====================                      ======= ======= ==================== ==================== ==== ======== ==================== ==================== ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                     
Net Income (Loss) Per Share (Diluted)                                          $    0.39        $    (2.52 )                         $    2.91                              $    0.80        $    (5.32 )                           $    6.12  
                                                                         ======= ======= ==================== ==================== ==== ======== ==================== ==================== ==== ======= ====================                      ======= ======= ==================== ==================== ==== ======== ==================== ==================== ====== ======= ====================
 
                                                                                                                                                                                NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                    AND SUBSIDIARIES
 
                                                                                                                                                                        SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                       (UNAUDITED)
 
                                                                                                                                                                                  MIDSTREAM BUSINESSES
 
                                                                                                                 Three Months Ended                                                                                                                                Six Months Ended
(Thousands of Dollars, except per share amounts)                                                                                         March 31,                                                                                                                                                           March 31,
                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------
PIPELINE AND STORAGE SEGMENT                                                          2017                                 2016                            Variance                                               2017                               2016                              Variance
------------------------------------------------                      ----------------------------------   -------------------- -----------------------------   -------------------- -----------------------------                        ------------------------------   -------------------- ------------------------------   -------------------- --------------------------------
Revenues from External Customers                                            $  53,163                          $ 56,276                          $ (3,113 )                                           $ 106,164                          $ 109,630                             $ (3,466 )
Intersegment Revenues                                                          22,592         23,292           (700 )                                              44,746          45,477              (731 )
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
Total Operating Revenues                                                       75,755         79,568         (3,813 )                                             150,910         155,107            (4,197 )
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
Operating Expenses:
Purchased Gas                                                                     (28 )                                                245                                                 (273 )                                                 194                                                   703                                                    (509 )
Operation and Maintenance                                                      19,668                                               19,060                                                  608                                                39,911                                                36,653                                                   3,258
Property, Franchise and Other Taxes                                             7,012                                                6,591                                                  421                                                13,689                                                13,336                                                     353
Depreciation, Depletion and Amortization                                       10,476         10,865           (389 )                                              20,138          21,121              (983 )
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
                                                                               37,128         36,761            367                             73,932          71,813             2,119  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Operating Income                                                               38,627                                               42,807                                               (4,180 )                                              76,978                                                83,294                                                  (6,316 )
                                                                                                                                                                                                                                                                                                                                                       
Other Income (Expense):
    Interest Income                                                               319                                                  179                                                  140                                                   591                                                   290                                                     301
    Other Income                                                                  807                                                  413                                                  394                                                 1,494                                                 1,994                                                    (500 )
    Interest Expense                                                           (8,342 )                          (8,453 )                             111                            (16,688 )                          (16,491 )                               (197 )
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Income Before Income Taxes                                                     31,411                                               34,946                                               (3,535 )                                              62,375                                                69,087                                                  (6,712 )
Income Tax Expense                                                             12,155         13,752         (1,597 )                                              23,751          26,617            (2,866 )
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
Net Income                                                                  $  19,256       $ 21,194       $ (1,938 )                                           $  38,624       $  42,470          $ (3,846 )
                                                                      ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                       
Net Income Per Share (Diluted)                                              $    0.22       $   0.25       $  (0.03 )                                           $    0.45       $    0.50          $  (0.05 )
                                                                      ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
 
 
                                                                                                                                    Three Months Ended                                                                                                                                                   Six Months Ended
                                                                                                                                         March 31,                                                                                                                                                           March 31,
                                                                      -----------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------
GATHERING SEGMENT                                                                     2017                                 2016                            Variance                                               2017                               2016                              Variance
------------------------------------------------                      ----------------------------------   -------------------- -----------------------------   -------------------- -----------------------------                        ------------------------------   -------------------- ------------------------------   -------------------- --------------------------------
Revenues from External Customers                                            $      26                                             $    113                                             $    (87 )                                           $      52                                             $     238                                                $   (186 )
Intersegment Revenues                                                          27,936         21,545          6,391                             55,776          40,184            15,592  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
Total Operating Revenues                                                       27,962         21,658          6,304                             55,828          40,422            15,406  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
Operating Expenses:
    Operation and Maintenance                                                   3,769                                                2,775                                                  994                                                 6,523                                                 5,047                                                   1,476
    Property, Franchise and Other Taxes                                            21                                                   52                                                  (31 )                                                  32                                                    85                                                     (53 )
    Depreciation, Depletion and Amortization                                    3,997          3,589            408                              7,877           7,799                78  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                7,787          6,416          1,371                             14,432          12,931             1,501  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Operating Income                                                               20,175                                               15,242                                                4,933                                                41,396                                                27,491                                                  13,905
                                                                                                                                                                                                                                                                                                                                                       
Other Income (Expense):
    Interest Income                                                               207                                                   68                                                  139                                                   353                                                   101                                                     252
    Other Income                                                       --                                                    1                                                   (1 )                                                   1                                                     2                                                      (1 )
    Interest Expense                                                           (2,235 )                          (1,918 )                            (317 )                                              (4,328 )                           (4,987 )                                659  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Income Before Income Taxes                                                     18,147                                               13,393                                                4,754                                                37,422                                                22,607                                                  14,815
Income Tax Expense                                                              7,862          5,825          2,037                             16,156          10,117             6,039  
                                                                      ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------- -------------------------------- -------------------- ----------------------------------
Net Income                                                                  $  10,285       $  7,568       $  2,717                          $  21,266       $  12,490          $  8,776  
                                                                      ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                       
Net Income Per Share (Diluted)                                              $    0.12       $   0.09       $   0.03                          $    0.25       $    0.15          $   0.10  
                                                                      ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
 
                                                                                                                                                                                   NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                       AND SUBSIDIARIES
 
                                                                                                                                                                           SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                          (UNAUDITED)
 
                                                                                                                                                                                     DOWNSTREAM BUSINESSES
 
                                                                                                                  Three Months Ended                                                                                                                                  Six Months Ended
(Thousands of Dollars, except per share amounts)                                                                                          March 31,                                                                                                                                                             March 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------
UTILITY SEGMENT                                                                       2017                                 2016                             Variance                                                 2017                                 2016                              Variance
------------------------------------------------                      ----------------------------------   -------------------- ------------------------------   -------------------- -----------------------------                        ----------------------------------   -------------------- ------------------------------   -------------------- --------------------------------
Revenues from External Customers                                            $ 257,949                          $ 212,737                          $ 45,212                                                 $ 428,919                          $ 356,585                             $ 72,334
Intersegment Revenues                                                           6,096           5,364            732                                  7,922           9,028            (1,106 )
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
Total Operating Revenues                                                      264,045         218,101         45,944                                436,841         365,613            71,228  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                            
Operating Expenses:
    Purchased Gas                                                             128,212                                                81,181                                               47,031                                                   188,945                                               126,250                                                  62,695
    Operation and Maintenance                                                  62,748                                                56,293                                                6,455                                                   112,277                                               102,893                                                   9,384
    Property, Franchise and Other Taxes                                        11,505                                                11,160                                                  345                                                    21,710                                                21,088                                                     622
    Depreciation, Depletion and Amortization                                   13,314          11,659          1,655                                 26,415          23,277             3,138  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                              215,779         160,293         55,486                                349,347         273,508            75,839  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                            
Operating Income                                                               48,266                                                57,808                                               (9,542 )                                                  87,494                                                92,105                                                  (4,611 )
                                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense):
    Interest Income                                                               144                                                   122                                                   22                                                       278                                                   207                                                      71
    Other Income                                                                   45                                                   706                                                 (661 )                                                     137                                                 1,404                                                  (1,267 )
    Interest Expense                                                           (7,194 )                           (7,158 )                             (36 )                                                 (14,392 )                          (14,491 )                                 99  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                            
Income Before Income Taxes                                                     41,261                                                51,478                                              (10,217 )                                                  73,517                                                79,225                                                  (5,708 )
Income Tax Expense                                                             15,680          19,518         (3,838 )                                                  26,762          28,659            (1,897 )
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
Net Income                                                                  $  25,581       $  31,960       $ (6,379 )                                               $  46,755       $  50,566          $ (3,811 )
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== === ====== ====================                      ======= ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                            
Net Income Per Share (Diluted)                                              $    0.30       $    0.38       $  (0.08 )                                               $    0.54       $    0.60          $  (0.06 )
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== === ====== ====================                      ======= ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
 
 
                                                                                                                                     Three Months Ended                                                                                                                                                     Six Months Ended
                                                                                                                                          March 31,                                                                                                                                                             March 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------
ENERGY MARKETING SEGMENT                                                              2017                                 2016                             Variance                                                 2017                                 2016                              Variance
------------------------------------------------                      ----------------------------------   -------------------- ------------------------------   -------------------- -----------------------------                        ----------------------------------   -------------------- ------------------------------   -------------------- --------------------------------
Revenues from External Customers                                            $  50,940                                             $  35,436                                             $ 15,504                                                 $  87,750                                             $  60,420                                                $ 27,330
Intersegment Revenues                                                              16             312           (296 )                                                      35             624              (589 )
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
Total Operating Revenues                                                       50,956          35,748         15,208                                 87,785          61,044            26,741  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                            
Operating Expenses:
    Purchased Gas                                                              47,661                                                28,321                                               19,340                                                    79,999                                                50,044                                                  29,955
    Operation and Maintenance                                                   1,913                                                 1,773                                                  140                                                     3,556                                                 3,496                                                      60
    Property, Franchise and Other Taxes                                --                                                     1                                                   (1 )                                          --                                                     4                                                      (4 )
    Depreciation, Depletion and Amortization                                       70              69              1                                    140             139                 1  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                               49,644          30,164         19,480                                 83,695          53,683            30,012  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                            
Operating Income                                                                1,312                                                 5,584                                               (4,272 )                                                   4,090                                                 7,361                                                  (3,271 )
                                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense):
    Interest Income                                                               138                                                    91                                                   47                                                       271                                                   141                                                     130
    Other Income                                                                   33                                                    15                                                   18                                                        35                                                    24                                                      11
    Interest Expense                                                              (11 )                               (7 )                              (4 )                                                     (24 )                              (25 )                                  1  
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                            
Income Before Income Taxes                                                      1,472                                                 5,683                                               (4,211 )                                                   4,372                                                 7,501                                                  (3,129 )
Income Tax Expense                                                                567           2,199         (1,632 )                                                   1,685           2,794            (1,109 )
                                                                      ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ -------------------- -------------------------------- -------------------- ----------------------------------
Net Income                                                                  $     905       $   3,484       $ (2,579 )                                               $   2,687       $   4,707          $ (2,020 )
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== === ====== ====================                      ======= ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                            
Net Income Per Share (Diluted)                                              $    0.01       $    0.04       $  (0.03 )                                               $    0.03       $    0.06          $  (0.03 )
                                                                      ======= ======= ==================== ==================== === ======= ==================== ==================== === ====== ====================                      ======= ======= ==================== ==================== === ======= ==================== ==================== ====== ====== ====================
 
                                                                                                                                                                                                               NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                   AND SUBSIDIARIES
 
                                                                                                                                                                                                       SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                                                      (UNAUDITED)
 
                                                                                                                                 Three Months Ended                                                                                                                                                               Six Months Ended
(Thousands of Dollars, except per share amounts)                                                                                                         March 31,                                                                                                                                                                                          March 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ALL OTHER                                                                                 2017                                          2016                                        Variance                                                           2017                                          2016                                        Variance
------------------------------------------------                      -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------                        -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------
Total Operating Revenues                                                    $            218           $            561           $           (343 )                                               $            772           $          1,266           $           (494 )
                                                                      ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------                      ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------
Operating Expenses:                                                                                                                                                                                                                                                                                                           
    Operation and Maintenance                                                            394                                                              164                                                              230                                                              909                                                              239                                                              670
    Property, Franchise and Other Taxes                                                  150                                                              161                                                              (11 )                                                            294                                                              304                                                              (10 )
    Depreciation, Depletion and Amortization                                             102                        306                       (204 )                                                            343                        488                       (145 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                         646                        631                         15                                         1,546                      1,031                        515  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Operating Income (Loss)                                                                 (428 )                                                            (70 )                                                           (358 )                                                           (774 )                                                            235                                                           (1,009 )
Other Income (Expense):
    Interest Income                                                                       49                         31                         18                                            89                         50                         39  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Income (Loss) Before Income Taxes                                                       (379 )                                                            (39 )                                                           (340 )                                                           (685 )                                                            285                                                             (970 )
Income Tax Expense (Benefit)                                                            (158 )                                         (16 )                                        (142 )                                                           (285 )                                         119                       (404 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Net Income (Loss)                                                           $           (221 )                            $            (23 )                            $           (198 )                                               $           (400 )                            $            166           $           (566 )
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss) Per Share (Diluted)                                       $ --           $ --           $ --                              $ --           $ --           $ --  
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
 
 
                                                                                                                                                    Three Months Ended                                                                                                                                                                                  Six Months Ended
                                                                                                                                                         March 31,                                                                                                                                                                                          March 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CORPORATE                                                                                 2017                                          2016                                        Variance                                                           2017                                          2016                                        Variance
------------------------------------------------                      -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------                        -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------
Revenues from External Customers                                            $            226                                                 $            226                                                 $ --                                                 $            434                                                 $            439                                                 $             (5 )
Intersegment Revenues                                                                    977                        967                         10                                         1,953                      1,933                         20  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Total Operating Revenues                                                               1,203                      1,193                         10                                         2,387                      2,372                         15  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Operating Expenses:
    Operation and Maintenance                                                          4,003                                                            4,147                                                             (144 )                                                          7,395                                                            7,038                                                              357
    Property, Franchise and Other Taxes                                                  125                                                              123                                                                2                                                              245                                                              243                                                                2
    Depreciation, Depletion and Amortization                                             189                        185                          4                                           376                        367                          9  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                       4,317                      4,455                       (138 )                                                          8,016                      7,648                        368  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Operating Loss                                                                        (3,114 )                                                         (3,262 )                                                            148                                                           (5,629 )                                                         (5,276 )                                                           (353 )
                                                                                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense):
    Interest Income                                                                   30,693                                                           30,339                                                              354                                                           62,498                                                           62,083                                                              415
    Other Income                                                                         859                                                            2,101                                                           (1,242 )                                                          1,689                                                            2,230                                                             (541 )
    Interest Expense on Long-Term Debt                                               (28,913 )                                                        (28,994 )                                                             81                                                          (58,016 )                                                        (59,366 )                                                          1,350
    Other Interest Expense                                                            (1,145 )                                        (734 )                                        (411 )                                                         (1,898 )                                          17                     (1,915 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Loss Before Income Taxes                                                              (1,620 )                                                           (550 )                                                         (1,070 )                                                         (1,356 )                                                           (312 )                                                         (1,044 )
Income Tax Benefit                                                                    (1,329 )                                      (2,015 )                                         686                                        (1,766 )                                      (3,538 )                                       1,772  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Net Income (Loss)                                                           $           (291 )                            $          1,465           $         (1,756 )                                               $            410           $          3,226           $         (2,816 )
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss) Per Share (Diluted)                                       $ --           $           0.02           $          (0.02 )                                               $ --           $           0.04           $          (0.04 )
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
 
 
                                                                                                                                                    Three Months Ended                                                                                                                                                                                  Six Months Ended
                                                                                                                                                         March 31,                                                                                                                                                                                          March 31,
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS                                                                 2017                                          2016                                        Variance                                                           2017                                          2016                                        Variance
------------------------------------------------                      -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------                        -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------
Intersegment Revenues                                                       $        (57,617 )                            $        (51,480 )                            $         (6,137 )                                               $       (110,432 )                            $        (97,246 )                            $        (13,186 )
                                                                      ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------                      ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------
Operating Expenses:
    Purchased Gas                                                                    (27,874 )                                                        (28,124 )                                                            250                                                          (50,924 )                                                        (53,306 )                                                          2,382
    Operation and Maintenance                                                        (29,743 )                                     (23,356 )                                      (6,387 )                                                        (59,508 )                                     (43,940 )                                     (15,568 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                     (57,617 )                                     (51,480 )                                      (6,137 )                                                       (110,432 )                                     (97,246 )                                     (13,186 )
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Operating Income                                                              --                                                   --                                                   --                                                   --                                                   --                                                   --
                                                                                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense):
    Interest Income                                                                  (31,306 )                                                        (30,579 )                                                           (727 )                                                        (62,322 )                                                        (61,488 )                                                           (834 )
    Interest Expense                                                                  31,306                     30,579                        727                                        62,322                     61,488                        834  
                                                                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------
Net Income                                                                  $ --           $ --           $ --                              $ --           $ --           $ --  
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                              ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Net Income Per Share (Diluted)                                              $ --           $ --           $ --                              $ --           $ --           $ --  
                                                                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================
 
                                                                                                                                                                                          NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                              AND SUBSIDIARIES
 
                                                                                                                                                                                       SEGMENT INFORMATION (Continued)
                                                                                                                                                                                           (Thousands of Dollars)
 
                                                                                                        Three Months Ended                                                                                                                                                  Six Months Ended
                                                                                                                                March 31,                                                                                                                                                                             March 31,
                                                                                                                               (Unaudited)                                                                                                                                                                           (Unaudited)
                                                    ----------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         Increase                                                                                                                                        Increase
                                                                    2017                                                             2016                                                     (Decrease)                                               2017                                                           2016                                                          (Decrease)
                                                    -------------------------------------                            -------------------------------------                         ---------------------------------                     ---------------------------------                            -------------------------------------                            -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                        
Capital Expenditures:
------------------------------
Exploration and Production                                $  57,137                      (1)(2)                            $  79,530                      (3)                        $ (22,393 )                                           $  97,826                      (1)(2)                            $ 167,654                      (3)(4)                           $  (69,828 )
Pipeline and Storage                                         11,386                      (1)(2)                               26,075                      (3)                          (14,689 )                                              36,778                      (1)(2)                               57,695                      (3)(4)                              (20,917 )
Gathering                                                     3,147                      (1)(2)                               12,778                      (3)                           (9,631 )                                              14,491                      (1)(2)                               34,523                      (3)(4)                              (20,032 )
Utility                                                      19,244                      (1)(2)                               26,091                      (3)                           (6,847 )                                              36,296                      (1)(2)                               46,008                      (3)(4)                               (9,712 )
Energy Marketing                                                  5                                             2                                      3                                 11                                             9                                             2  
                                                    ------------------------------------                             ------------------------------------                          --------------------------------                      --------------------------------                             ------------------------------------                             ------------------------------------
Total Reportable Segments                                    90,919                                                          144,476                                                   (53,557 )                                             185,402                                                          305,889                                                         (120,487 )
All Other                                            --                                                               37                                                       (37 )                                                  39                                                               37                                                                2
Corporate                                                         3                                                              106                                                      (103 )                                                  64                                                              155                                                              (91 )
Eliminations                                                   (777 )                                                 --                                   (777 )                                                (777 )                                                 --                                          (777 )
                                                    ------------------------------------                             ------------------------------------                          --------------------------------                      --------------------------------                             ------------------------------------                             ------------------------------------
    Total Capital Expenditures                            $  90,145                                     $ 144,619                              $ (54,474 )                                           $ 184,728                                     $ 306,081                                    $ (121,353 )
                                                    ======= ======= ====================                             ======= ======= ====================                          === ======= ====================                      === ======= ====================                             ======= ======= ====================                             ====== ======== ====================
 
    (1)      Capital expenditures for the quarter and six months ended March
                                                                      31, 2017, include accounts payable and accrued liabilities related
                                                                      to capital expenditures of $23.2 million, $5.8 million, $2.2
                                                                      million, and $5.7 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 March 31, 2017,
                                                                      since they represent non-cash investing activities at that date.
                                           
                                          (2)                         Capital expenditures for the six months ended March 31, 2017,
                                                                      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 six months ended March 31, 2017. 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 March 31, 2017.
                                           
                                          (3)                         Capital expenditures for the quarter and six months ended March
                                                                      31, 2016, include accounts payable and accrued liabilities related
                                                                      to capital expenditures of $34.0 million, $10.2 million, $12.6
                                                                      million, and $9.3 million in the Exploration and Production
                                                                      segment, Pipeline and Storage segment, Gathering segment and
                                                                      Utility segment, respectively. These amounts have been excluded
                                                                      from the Consolidated Statement of Cash Flows at March 31, 2016,
                                                                      since they represent non-cash investing activities at that date.
                                           
                                          (4)                         Capital expenditures for the six months ended March 31, 2016,
                                                                      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 six months ended March 31, 2016. 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 March 31, 2016.
                                           
DEGREE DAYS                  
---------------------------
                                                                                                                                                                                                                                                                                  Percent Colder
                                                                                                                                                                                                                                                                                                     (Warmer) Than:
Three Months Ended March 31                                           Normal                                              2017                                                       2016                                                   Normal (1)       Last Year (1)
---------------------------                      ---------------------------------------------                         ---------------------------------------------                         ------------------------------------------------------------                         ---------                       -------------------
                                                                                                                    
    Buffalo, NY                                                                            3,290                                                                 2,866                                                                                2,963                       (12.9 )                               (3.3 )
    Erie, PA                                                                               3,108                                                                 2,627                                                                                2,739                       (15.5 )                               (4.1 )
                                                                                                                                                                                                                                                                                                                   
Six Months Ended March 31
---------------------------
                                                                                                                                                                                                                                        
    Buffalo, NY                                                                            5,543                                                                 4,832                                                                                4,640                       (12.8 )                                4.1
    Erie, PA                                                                               5,152                                                                 4,377                                                                                4,223                       (15.0 )                                3.6
(1)      Percents compare actual 2017 degree days to normal degree days and
                            actual 2017 degree days to actual 2016 degree days.
 
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                                     AND SUBSIDIARIES
 
                                                                                                                                                                                                                                     EXPLORATION AND PRODUCTION INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                               Three Months Ended                                                                                                                                                                                                          Six Months Ended
                                                                                                                                                                                       March 31,                                                                                                                                                                                                                                     March 31,
                                                                                -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                             Increase                                                                                                                                                                                                Increase
                                                                                                                 2017                                                                                        2016                                                                 (Decrease)                                                                 2017                                                                                        2016                                                                   (Decrease)
                                                                                -----------------------------------------------------------------------                     -----------------------------------------------------------------------                     -------------------------------                     -----------------------------------------------------------------------                     -----------------------------------------------------------------------                     -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Gas Production/Prices:
----------------------------------------------------------
Production (MMcf)
    Appalachia                                                                                                             40,805                                                                                      34,113                                               6,692                                                                                      80,612                                                                                      66,900                                                  13,712
    West Coast                                                                                                                737                                                                      764                              (27 )                                                                                     1,513                                                                    1,547                                  (34 )
                                                                                ----------------------------------------------------------------------                      ----------------------------------------------------------------------                      ------------------------------                      ----------------------------------------------------------------------                      ----------------------------------------------------------------------                      ----------------------------------
Total Production                                                                                                           41,542                                                                   34,877                            6,665                                                                   82,125                                                                   68,447                               13,678  
                                                                                ======================================================================                      ======================================================================                      ==============================                      ======================================================================                      ======================================================================                      ==================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Average Prices (Per Mcf)
    Appalachia                                                                  $      2.71                                           $      1.85                                             $  0.86                                           $      2.54                                           $      1.91                                                $   0.63
    West Coast                                                                                                               4.57                                                                                        2.87                                                1.70                                                                                        4.40                                                                                        3.27                                                    1.13
        Weighted Average                                                                                                     2.75                                                                                        1.87                                                0.88                                                                                        2.57                                                                                        1.94                                                    0.63
        Weighted Average after Hedging                                                                                       2.96                                                                                        2.99                                               (0.03 )                                                                                      2.96                                                                                        3.08                                                   (0.12 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Oil Production/Prices:
----------------------------------------------------------
Production (Thousands of Barrels)
Appalachia                                                                                                                      2                                                                                           5                                                  (3 )                                                                                         2                                                                                          11                                                      (9 )
West Coast                                                                                                                    672                                                                      718                              (46 )                                                                                     1,393                                                                    1,460                                  (67 )
                                                                                ----------------------------------------------------------------------                      ----------------------------------------------------------------------                      ------------------------------                      ----------------------------------------------------------------------                      ----------------------------------------------------------------------                      ----------------------------------
Total Production                                                                                                              674                                                                      723                              (49 )                                                                                     1,395                                                                    1,471                                  (76 )
                                                                                ======================================================================                      ======================================================================                      ==============================                      ======================================================================                      ======================================================================                      ==================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Average Prices (Per Barrel)
    Appalachia                                                                  $                                           49.87                                           $                                           32.81                                             $ 17.06                                           $                                           49.04                                           $                                           36.74                                                $  12.30
    West Coast                                                                                                              47.96                                                                                       27.02                                               20.94                                                                                       45.75                                                                                       31.61                                                   14.14
        Weighted Average                                                                                                    47.96                                                                                       27.06                                               20.90                                                                                       45.82                                                                                       31.65                                                   14.17
        Weighted Average after Hedging                                                                                      52.92                                                                                       53.01                                               (0.09 )                                                                                     53.85                                                                                       56.45                                                   (2.60 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Total Production (Mmcfe)                                                                                                   45,586                                                                   39,215                            6,371                                                                   90,495                                                                   77,273                               13,222  
                                                                                ======================================================================                      ======================================================================                      ==============================                      ======================================================================                      ======================================================================                      ==================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Selected Operating Performance Statistics:
----------------------------------------------------------
General & Administrative Expense per Mcfe (1)                                   $                                            0.36                                           $                                            0.49                                             $ (0.13 )                                         $                                            0.33                                           $                                            0.51                                                $  (0.18 )
Lease Operating and Transportation Expense per Mcfe (1)(2)                      $                                            0.93                                           $                                            0.96                                             $ (0.03 )                                         $                                            0.91                                           $                                            0.99                                                $  (0.08 )
Depreciation, Depletion & Amortization per Mcfe (1)                             $                                            0.63                                           $                                            0.95                                             $ (0.32 )                                         $                                            0.64                                           $                                            1.05                                                $  (0.41 )
(1)      Refer to page 14 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 $0.54 and $0.51 per Mcfe
                            for the three months ended March 31, 2017 and March 31, 2016,
                            respectively. Amounts include transportation expense of $0.54 and
                            $0.51 per Mcfe for the six months ended March 31, 2017 and March
                            31, 2016, respectively.
 
                                                                  NATIONAL FUEL GAS COMPANY
                                                                      AND SUBSIDIARIES
 
                                                           EXPLORATION AND PRODUCTION INFORMATION
-----------------------------------------------------------------------------------------------------------------------------------------------------
 
Hedging Summary for the Remaining Six Months of Fiscal 2017
                                                               Volume                         Average Hedge Price
                                                                 -------------------------------------                        -----------------------------
Oil Swaps                                                                    
    Brent                                                            48,000                      BBL                                  $ 91.00 / BBL
    NYMEX                                                           792,000                      BBL                                  $ 58.34 / BBL
Total                                                               840,000                      BBL                                  $ 60.21 / BBL
                                                                                                                                         
Gas Swaps
    NYMEX                                                        19,980,000                      MMBTU                                $ 4.35 / MMBTU
    Dominion Transmission Appalachian (DOM)                         900,000                      MMBTU                                $ 3.82 / MMBTU
    Dawn Ontario (DAWN)                                           6,660,000                      MMBTU                                $ 3.71 / MMBTU
Fixed Price Physical Sales                                       31,359,518                      MMBTU                                $ 2.54 / MMBTU
Total                                                            58,899,518                      MMBTU                                $ 3.30 / MMBTU
                                                                                                                                         
Hedging Summary for Fiscal 2018
                                                                                  Volume                                            Average Hedge Price
                                                                 -------------------------------------                        -----------------------------
Oil Swaps
    Brent                                                            24,000                      BBL                                  $ 91.00 / BBL
    NYMEX                                                         1,275,000                      BBL                                  $ 54.79 / BBL
Total                                                             1,299,000                      BBL                                  $ 55.46 / 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                                       35,260,266                      MMBTU                                $ 2.39 / MMBTU
Total                                                            86,410,266                      MMBTU                                $ 2.93 / MMBTU
                                                                                                                                         
Hedging Summary for Fiscal 2019
                                                                                  Volume                                            Average Hedge Price
                                                                 -------------------------------------                        -----------------------------
Oil Swaps
    NYMEX                                                           912,000                      BBL                                  $ 53.84 / BBL
    Total                                                           912,000                      BBL                                  $ 53.84 / BBL
                                                                                                                                         
Gas Swaps
    NYMEX                                                        27,060,000                      MMBTU                                $ 3.17 / MMBTU
    DAWN                                                          7,200,000                      MMBTU                                $ 3.00 / MMBTU
Fixed Price Physical Sales                                       15,806,706                      MMBTU                                $ 2.83 / MMBTU
Total                                                            50,066,706                      MMBTU                                $ 3.04 / 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                                       11,277,025                      MMBTU                                $ 2.42 / MMBTU
Total                                                            35,357,025                      MMBTU                                $ 2.85 / 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
Fixed Price Physical Sales                                        7,665,000                      MMBTU                                $ 2.03 / MMBTU
Total                                                            13,105,000                      MMBTU                                $ 2.44 / MMBTU
                                                                                                                                         
Hedging Summary for Fiscal 2022
                                                                                  Volume                                            Average Hedge Price
                                                                 -------------------------------------                        -----------------------------
                                                                                                                                         
Fixed Price Physical Sales                                        3,822,000                      MMBTU                                $ 2.03 / MMBTU
Total                                                             3,822,000                      MMBTU                                $ 2.03 / MMBTU
 
                                                                                                                                                                                                                         NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                             AND SUBSIDIARIES
 
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
                                      
                                                                                                                                                Three Months Ended                                                                                                                                                                               Six Months Ended
                                                                                                                                                     March 31,                                                                                                                                                                                                          March 31,
                                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                      Increase                                                                                                                                                                                       Increase
                                                                                 2017                                                                   2016                                                               (Decrease)                                                               2017                                               2016                                                               (Decrease)
                                                          -----------------------------------------------                        -----------------------------------------------                        ----------------------------------------------                        ---------------------------------------------                         ---------------------------------------------                         ----------------------------------------------
Firm Transportation - Affiliated                             43,243                                              42,624                                                619                                             74,850                                             67,333                                              7,517
Firm Transportation - Non-Affiliated                                           170,124                                                                166,326                                                                 3,798                                                                329,298                                                                317,448                                                                11,850
Interruptible Transportation                                    971                            6,483                          (5,512 )                                            4,017                          12,115                          (8,098 )
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ---------------------------                      -------------------- ---------------------------                      -------------------- ------ --------------------
                                                            214,338                          215,433                          (1,095 )                                           408,165                          396,896                          11,269  
                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ====== ====================                      ==================== ===========================                      ==================== ===========================                      ==================== ====== ====================
                                                           
Gathering Volume - (MMcf)
                                                                                                                                                Three Months Ended                                                                                                                                                                                                  Six Months Ended
                                                                                                                                                     March 31,                                                                                                                                                                                                          March 31,
                                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                            Increase                                                                                                                                                                                                          Increase
                                                                                 2017                                                                   2016                                                               (Decrease)                                                               2017                                                                  2016                                                               (Decrease)
                                                          --------------------------------------------------                     --------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------
Gathered Volume - Affiliated                                 50,598                           39,195                          11,403                          101,167                          72,995                          28,172  
                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ====== ====================                      ==================== =====  ====================                      ==================== =====  ====================                      ==================== ====== ====================
                                                           
Utility Throughput - (MMcf)
                                                                                                                                                Three Months Ended                                                                                                                                                                                                  Six Months Ended
                                                                                                                                                     March 31,                                                                                                                                                                                                          March 31,
                                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                            Increase                                                                                                                                                                                                          Increase
                                                                                 2017                                                                   2016                                                               (Decrease)                                                               2017                                                                  2016                                                               (Decrease)
                                                          --------------------------------------------------                     --------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------
Retail Sales:
    Residential Sales                                                           24,949                                                                 24,486                                                                   463                                                                40,713                                                                37,619                                                                 3,094
    Commercial Sales                                                             3,903                                                                  3,688                                                                   215                                                                 6,202                                                                 5,515                                                                   687
    Industrial Sales                                            157                              167                             (10 )                                              234                             233                               1  
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ---------------------------                      -------------------- ---------------------------                      -------------------- ------ --------------------
                                                                                29,009                                                                 28,341                                                                   668                                                                47,149                                                                43,367                                                                 3,782
Off-System Sales                                                                 1,122                                                                  1,243                                                                  (121 )                                                               1,295                                                                 1,243                                                                    52
Transportation                                               27,089                           27,297                            (208 )                                           46,654                          44,913                           1,741  
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ---------------------------                      -------------------- ---------------------------                      -------------------- ------ --------------------
                                                             57,220                           56,881                             339                          95,098                          89,523                           5,575  
                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ====== ====================                      ==================== ===========================                      ==================== ===========================                      ==================== ====== ====================
                                                           
Energy Marketing Volume
                                                                                                                                                Three Months Ended                                                                                                                                                                                                  Six Months Ended
                                                                                                                                                     March 31,                                                                                                                                                                                                          March 31,
                                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                            Increase                                                                                                                                                                                                          Increase
                                                                                 2017                                                                   2016                                                               (Decrease)                                                               2017                                                                  2016                                                               (Decrease)
                                                          --------------------------------------------------                     --------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------
Natural Gas (MMcf)                                           14,120                           15,165                          (1,045 )                                           25,248                          25,263                             (15 )
                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ====== ====================                      ==================== ===========================                      ==================== ===========================                      ==================== ====== ====================
 

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 and six months ended March 31, 2017 and 2016.

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

The following tables reconcile National Fuel’s reported GAAP earnings to Adjusted EBITDA for the three and six months ended March 31, 2017 and 2016:

                                                                                            Three Months Ended                                                                                Six Months Ended
                                                                                                                    March 31,                                                                                                           March 31,
                                                                        ------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                        2017                                    2016                                                      2017                                   2016
                                                                        -------------------------------------                     --------------------------------------                     -------------------------------------                     -------------------------------------
(in thousands)
Reported GAAP Earnings                                                        $  89,284                                                 $ (147,687 )                                               $ 178,191                                                $ (336,796 )
    Depreciation, Depletion and Amortization                                     56,999                                                     63,947                                                   113,194                                                   134,498
    Interest and Other Income                                                    (2,135 )                                                   (3,514 )                                                  (5,347 )                                                  (7,731 )
    Interest Expense                                                             29,837                                                     30,231                                                    59,850                                                    61,983
    Income Taxes                                                                 52,971                                                   (116,030 )                                                 109,403                                                  (260,380 )
                                                                         --                                                    397,443                                            --                                                   832,894
    Impairment of Oil and Gas Producing Properties
                                                                         --                          --                         --                                  4,682  
    Joint Development Agreement Professional Fees
                                                                        --------------  --------------------                      ---------------  --------------------                      --------------  --------------------                      --------------  --------------------
Adjusted EBITDA                                                               $ 226,956                              $  224,390                              $ 455,291                             $  429,150  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                        
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA                                          $  49,103                                                 $   53,672                                                 $  97,116                                                $  104,415
Gathering Adjusted EBITDA                                                        24,172                                  18,831                                 49,273                                 35,290  
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Total Midstream Businesses Adjusted EBITDA                                       73,275                                                     72,503                                                   146,389                                                   139,705
Exploration and Production Adjusted EBITDA                                       93,970                                                     79,608                                                   196,447                                                   170,749
Utility Adjusted EBITDA                                                          61,580                                                     69,467                                                   113,909                                                   115,382
Energy Marketing Adjusted EBITDA                                                  1,382                                                      5,653                                                     4,230                                                     7,500
Corporate and All Other Adjusted EBITDA                                          (3,251 )                                                   (2,841 )                                                  (5,684 )                                                  (4,186 )
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Total Adjusted EBITDA                                                         $ 226,956                              $  224,390                              $ 455,291                             $  429,150  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
 
                                                                                                                                  NATIONAL FUEL GAS COMPANY
                                                                                                                                      AND SUBSIDIARIES
                                                                                                                                 NON-GAAP FINANCIAL MEASURES
                                                                                                                                   SEGMENT ADJUSTED EBITDA
 
                                                                                            Three Months Ended                                                                                Six Months Ended
                                                                                                                    March 31,                                                                                                           March 31,
                                                                        ------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
(in thousands)                                                                          2017                                    2016                                                      2017                                   2016
                                                                        -------------------------------------                     --------------------------------------                     -------------------------------------                     -------------------------------------
Exploration and Production Segment
--------------------------------------------------
Reported GAAP Earnings                                                        $  33,769                                                 $ (213,335 )                                               $  68,849                                                $ (450,421 )
    Depreciation, Depletion and Amortization                                     28,851                                                     37,274                                                    57,905                                                    81,307
    Interest and Other Income                                                      (147 )                                                      (27 )                                                    (233 )                                                    (693 )
    Interest Expense                                                             13,303                                                     13,546                                                    26,826                                                    28,128
    Income Taxes                                                                 18,194                                                   (155,293 )                                                  43,100                                                  (325,148 )
    Impairment of Oil and Gas Producing Properties                       --                                                    397,443                                            --                                                   832,894
    Joint Development Agreement Professional Fees                        --                          --                         --                                  4,682  
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                               $  93,970                              $   79,608                              $ 196,447                             $  170,749  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                        
Pipeline and Storage Segment
--------------------------------------------------
Reported GAAP Earnings                                                        $  19,256                                                 $   21,194                                                 $  38,624                                                $   42,470
    Depreciation, Depletion and Amortization                                     10,476                                                     10,865                                                    20,138                                                    21,121
    Interest and Other Income                                                    (1,126 )                                                     (592 )                                                  (2,085 )                                                  (2,284 )
    Interest Expense                                                              8,342                                                      8,453                                                    16,688                                                    16,491
    Income Taxes                                                                 12,155                                  13,752                                 23,751                                 26,617  
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                               $  49,103                              $   53,672                              $  97,116                             $  104,415  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                        
Gathering Segment
--------------------------------------------------
Reported GAAP Earnings                                                        $  10,285                                                 $    7,568                                                 $  21,266                                                $   12,490
    Depreciation, Depletion and Amortization                                      3,997                                                      3,589                                                     7,877                                                     7,799
    Interest and Other Income                                                      (207 )                                                      (69 )                                                    (354 )                                                    (103 )
    Interest Expense                                                              2,235                                                      1,918                                                     4,328                                                     4,987
    Income Taxes                                                                  7,862                                   5,825                                 16,156                                 10,117  
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                               $  24,172                              $   18,831                              $  49,273                             $   35,290  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                        
Utility Segment
--------------------------------------------------
Reported GAAP Earnings                                                        $  25,581                                                 $   31,960                                                 $  46,755                                                $   50,566
    Depreciation, Depletion and Amortization                                     13,314                                                     11,659                                                    26,415                                                    23,277
    Interest and Other Income                                                      (189 )                                                     (828 )                                                    (415 )                                                  (1,611 )
    Interest Expense                                                              7,194                                                      7,158                                                    14,392                                                    14,491
    Income Taxes                                                                 15,680                                  19,518                                 26,762                                 28,659  
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                               $  61,580                              $   69,467                              $ 113,909                             $  115,382  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                        
Energy Marketing Segment
--------------------------------------------------
Reported GAAP Earnings                                                        $     905                                                 $    3,484                                                 $   2,687                                                $    4,707
    Depreciation, Depletion and Amortization                                         70                                                         69                                                       140                                                       139
    Interest and Other Income                                                      (171 )                                                     (106 )                                                    (306 )                                                    (165 )
    Interest Expense                                                                 11                                                          7                                                        24                                                        25
    Income Taxes                                                                    567                                   2,199                                  1,685                                  2,794  
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                               $   1,382                              $    5,653                              $   4,230                             $    7,500  
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                        
Corporate and All Other
--------------------------------------------------
Reported GAAP Earnings                                                        $    (512 )                                               $    1,442                                                 $      10                                                $    3,392
    Depreciation, Depletion and Amortization                                        291                                                        491                                                       719                                                       855
    Interest and Other Income                                                      (295 )                                                   (1,892 )                                                  (1,954 )                                                  (2,875 )
    Interest Expense                                                             (1,248 )                                                     (851 )                                                  (2,408 )                                                  (2,139 )
    Income Taxes                                                                 (1,487 )                                                   (2,031 )                                                  (2,051 )                                                  (3,419 )
                                                                        ------------------------------------                      -------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                               $  (3,251 )                                               $   (2,841 )                                               $  (5,684 )                                              $   (4,186 )
                                                                        ======= ======= ====================                      ======= ======== ====================                      ======= ======= ====================                      ====== ======== ====================
 
                                                                           NATIONAL FUEL GAS COMPANY
                                                                               AND SUBSIDIARIES
 
Quarter Ended March 31 (unaudited)                                   2017                                        2016
------------------------------------------------                      --------------------------------------                        ---------------------------------------
                                                                                                                                     
    Operating Revenues                                                    $   522,075,000                             $   449,132,000  
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Net Income (Loss) Available for Common Stock                          $    89,284,000                             $  (147,687,000 )
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Earnings (Loss) Per Common Share:
        Basic                                                             $          1.05                             $         (1.74 )
                                                                      ===== ============= ====================                      ====== ============= ====================
        Diluted                                                           $          1.04                             $         (1.74 )
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Weighted Average Common Shares:
        Used in Basic Calculation                                              85,334,887                                  84,806,982  
                                                                      ========================================                      =========================================
        Used in Diluted Calculation                                            86,006,614                                  84,806,982  
                                                                      ========================================                      =========================================
                                                                                                                                     
Six Months Ended March 31 (unaudited)
------------------------------------------------
                                                                                                                                     
    Operating Revenues                                                    $   944,576,000                             $   824,327,000  
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Net Income (Loss) Available for Common Stock                          $   178,191,000                             $  (336,796,000 )
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Earnings (Loss) Per Common Share:
        Basic                                                             $          2.09                             $         (3.97 )
                                                                      ===== ============= ====================                      ====== ============= ====================
        Diluted                                                           $          2.07                             $         (3.97 )
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Weighted Average Common Shares:
        Used in Basic Calculation                                              85,261,575                                  84,728,680  
                                                                      ========================================                      =========================================
        Used in Diluted Calculation                                            85,897,282                                  84,728,680  
                                                                      ========================================                      =========================================
                                                                                                                                     
Twelve Months Ended March 31 (unaudited)
------------------------------------------------
                                                                                                                                     
    Operating Revenues                                                    $ 1,572,665,000                             $ 1,465,204,000  
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Net Income (Loss) Available for Common Stock                          $   224,030,000                             $  (817,633,000 )
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Earnings (Loss) Per Common Share:
        Basic                                                             $          2.63                             $         (9.66 )
                                                                      ===== ============= ====================                      ====== ============= ====================
        Diluted                                                           $          2.61                             $         (9.66 )
                                                                      ===== ============= ====================                      ====== ============= ====================
                                                                                                                                     
    Weighted Average Common Shares:
        Used in Basic Calculation                                              85,114,029                                  84,620,502  
                                                                      ========================================                      =========================================
        Used in Diluted Calculation                                            85,738,474                                  84,620,502  
                                                                      ========================================                      =========================================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170504006753r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170504006753/en/

SOURCE: National Fuel Gas Company

National Fuel Gas Company 
Brian M. Welsch, 716-857-7875 
Investor Relations 
or 
David P. Bauer, 716-857-7318 
Treasurer 
or 
Media: 
Karen L. Merkel, 716-857-7654


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