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 National Fuel Reports Third Quarter Earnings
   Thursday, August 03, 2017 5:05:04 PM ET

National Fuel Gas Company ("National Fuel" or the "Company") (NFG ) today announced consolidated results for the third quarter of its 2017 fiscal year and for the nine months ended June 30, 2017.

FISCAL 2017 THIRD QUARTER SUMMARY

-- Consolidated net income of $59.7 million, or $0.69 per share, compared to consolidated net income of $8.3 million, or $0.10 per share, and operating results of $58.1 million, or $0.68 per share, in the prior year (see reconciliation below)

-- Adjusted EBITDA of $179.0 million versus $189.8 million in the prior year (non-GAAP reconciliation on page 23)

-- Gross natural gas production in Appalachia of 567 MMcf per day, a 6% increase from the prior year



-- Net production of 42.7 Bcfe, a 3% decrease from prior year

-- Average natural gas prices, after the impact of hedging, of $2.94 per Mcf, up $0.08 per Mcf from the prior year

-- Average oil prices, after the impact of hedging, of $53.02 per Bbl, down $5.77 per Bbl from the prior year

-- Gathering revenues of $26.9 million on 48.8 Bcf of system throughput, both an increase of 5% from the prior year

 
OPERATING RESULTS
                                                                                                                                                                 
                                                                                                                                                                  Three Months Ended                                                                                                 Nine Months Ended
                                                                                                                                                                       June 30,                                                                                                          June 30,
(in thousands except per share amounts)                                                                                                      2017                                 2016                                                     2017                                  2016
                                                                                                                              -----------------------------------                     -----------------------------------                     ------------------------------------                     -------------------------------------
Reported GAAP earnings (loss)                                                                                                      $ 59,714                                                $  8,286                                                $ 237,906                                                $ (328,510 )
 Items impacting comparability:
   Impairment of oil and gas properties (E&P)                                                                                                                                                82,658                                                                                                            915,552
   Tax impact of impairment of oil and gas properties                                                                                                                                       (34,716 )                                                                                                         (384,531 )
   Joint development agreement professional fees (E&P)                                                                                                                                        3,173                                                                                                              7,855
   Tax impact of joint development agreement professional fees                                                                                                            (1,333 )                                                                                        (3,299 )
                                                                                                                              -----------------------------------                     ----------------------------------                      ------------------------------------                     ------------------------------------
Operating Results                                                                                                                  $ 59,714                             $ 58,068                             $ 237,906                             $  207,067  
                                                                                                                              ====== ====== ====================                      ====== ====== ====================                      ====== ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                                        
Reported GAAP earnings (loss) per share                                                                                            $   0.69                                                $   0.10                                                $    2.77                                                $    (3.87 )
 Items impacting comparability:
   Impairment of oil and gas properties (E&P)                                                                                                                                                  0.97                                                                                                              10.80
   Tax impact of impairment of oil and gas properties                                                                                                                                         (0.41 )                                                                                                            (4.54 )
   Joint development agreement professional fees (E&P)                                                                                                                                         0.04                                                                                                               0.09
   Tax impact of joint development agreement professional fees                                                                                                                                (0.02 )                                                                                                            (0.04 )
        Earnings per share impact of diluted shares                                                                                                                                                                                                     (0.01 )
                                                                                                                              -----------------------------------                     -----------------------------------                     ------------------------------------                     ------------------------------------
Operating Results per diluted share                                                                                                $   0.69                             $   0.68                             $    2.77                             $     2.43  
                                                                                                                              ====== ====== ====================                      ====== ====== ====================                      ====== ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                                                        

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: "Our fiscal third quarter was a strong one with each of our business segments posting solid financial results that were in-line with expectations. Across the system, our talented teams continue to execute on our operational plans. As is typical during the summer period, our utility and transmission pipeline construction crews are busy maintaining the safety and integrity of our thousands of miles of pipelines that will assure safe, reliable, and affordable natural gas services for our region and local communities.

"As we look ahead, we continue to manage around the delay in the Northern Access Project and see plenty of opportunity in the meantime to extract value from our world class natural gas assets in Appalachia. After a year of testing, we believe we have de-risked the Utica potential in our Western Development Area, adding years of economic drilling inventory on the very same acreage we have already developed for the Marcellus. Over the next 18 months, we will continue to optimize our well designs and transition into a Utica development program that will leverage existing upstream and midstream infrastructure to drive capital, operational, and marketing efficiencies. While the commodities futures markets indicate that Seneca Resources, our exploration and production company, will likely achieve lower prices for its production next year, our proven success in driving down finding and development costs and our ability to develop our upstream and midstream assets efficiently allows us to continue to grow our integrated business, maintain a strong financial position, and add shareholder value throughout the commodity price cycle."

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form on pages 8 through 11 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                                                                                         Nine Months Ended
                                                                                                                                         June 30,                                                                                                  June 30,
                                                                                                       -----------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------
(in thousands except per share amounts)                                                                   2017         2016        Variance                           2017          2016                Variance
                                                                                                       ------------------------------ -------------------------------- -------------                     ------------------------------- --------------------------------- --------------------------
Net Income / (Loss)                                                                                    $ 30,123    $ (19,165 )    $ 49,288                         $  98,972    $ (469,586 )      $              568,558
Net Income / (Loss) Per Share (Diluted)                                                                $   0.35                       $   (0.22 )                       $   0.57                         $    1.15                       $    (5.54 )                         $                 6.69
Adjusted EBITDA                                                                                        $ 89,229                       $  97,924                         $ (8,695 )                       $ 285,675                       $  268,673                           $               17,002
                                                                                                                                                                                                                                                                                 

Net income for the Exploration and Production segment in the third quarter was $30.1 million, or $0.35 per share, compared to a net loss of $19.2 million, or $0.22 per share, in the prior year third quarter. The $49.3 million increase in the segment’s earnings was primarily attributable to the non-recurrence of two items that reduced earnings in the prior year. In the prior year third quarter, Seneca recorded an $82.7 million ($47.9 million after-tax) ceiling test impairment charge to reduce the book value of Seneca’s oil and gas properties. Seneca also incurred $3.2 million ($1.8 million after-tax) in the prior year third quarter for professional and legal expenses related to the extension of the joint development agreement that Seneca executed in June 2016.

Excluding these items, operating results for the segment declined $0.5 million, or $0.01 per share, as the impact of higher realized natural gas prices, lower depreciation, depletion and amortization ("DD&A") expense, and a lower effective income tax rate were more than offset by a decline in net natural gas and oil production, lower realized oil prices and an increase in lease operating and transportation ("LOE") expense.

Over the past two years, Seneca significantly reduced its capital expenditures in response to low commodity prices by entering into a Joint Development Agreement ("JDA"), where a partner agreed to participate in 75 new Marcellus wells as an 80 percent working interest owner, and reducing the rig count in Appalachia and activity in California. As a result, Seneca’s net natural gas and oil production declined 1.3 billion cubic feet equivalent ("Bcfe"), or 3 percent, to 42.7 Bcfe in the third quarter. Net natural gas production was down nearly 1.0 Bcf due mainly to a lower average revenue interest on production from the Western Development Area ("WDA") resulting from new JDA wells as well as natural declines in Marcellus production from the Eastern Development Area ("EDA"). Seneca’s oil production decreased 58 thousand barrels ("Mbbl") due mainly to temporary changes in steam operations and a reduction in well workover activity at its North Midway Sunset field in California, offset partially by increased activity at South Midway Sunset.

Seneca continues to grow its base of gross natural gas production. Average daily gross natural gas production during the quarter increased 6 percent to 567 million cubic feet ("MMcf’) per day driven primarily by new Marcellus and Utica wells in Appalachia. In the WDA, average daily natural gas production increased approximately 38 MMcf per day, or 16 percent, to 284 MMcf per day during the quarter. Seneca is now producing from 63 of the 75 Marcellus wells that are being developed in the Clermont / Rich Valley area under the JDA entered into with a partner in fiscal 2016. The 12 remaining JDA wells are expected to be completed and brought on-line in the first half of fiscal 2018.

In the EDA, average daily gross natural gas production decreased 4 MMcf per day, or 1 percent, to 283 MMcf per day as natural declines in Marcellus production from Tioga and Lycoming counties were partially offset by new production from the Company’s Utica well on DCNR Tract 007 in Tioga County, Pa., which has produced nearly 2.5 Bcf since it was first turned on-line in November 2016. In May, Seneca added a second rig and resumed Marcellus development activities in Lycoming County, Pa., which is expected to arrest natural production declines and maintain a base of production that will utilize firm transportation capacity on the Atlantic Sunrise pipeline expansion project forecasted to be available in the summer of 2018.

Seneca’s average realized natural gas price, after the impact of hedging, for the third quarter was $2.94 per thousand cubic feet ("Mcf"), an increase of $0.08 per Mcf versus the prior year. Seneca’s average realized oil price, after the impact of hedging, was $53.02 per barrel ("Bbl"), a decrease of $5.77 per Bbl. Seneca’s average realized natural gas and oil prices benefited from an uplift of $0.35 per Mcf and $7.38 per Bbl, respectively, from financial hedges settled during the quarter.

LOE increased $1.8 million, or $0.07 per Mcf equivalent ("Mcfe") on a cost per unit of production basis, due primarily to higher steam fuel and well repair costs in California offset partially by lower gathering and compression costs in Appalachia. DD&A expense decreased $3.8 million due to lower production and a decrease in Seneca’s full cost pool depletion rate. Seneca’s per unit DD&A decreased by $0.07 per Mcfe to $0.64 per Mcfe due mainly to a lower depletable fixed asset balance resulting from the ceiling test impairment charges recorded in the second half of fiscal 2016.

A decrease in Seneca’s effective tax rate increased the segment’s earnings by $2.4 million in the third quarter. The decrease in the effective tax rate was 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                                                                                          Nine Months Ended
                                                                                                                                        June 30,                                                                                                   June 30,
                                                                                                       ---------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------
(in thousands except per share amounts)                                                                   2017        2016       Variance                           2017         2016                  Variance
                                                                                                       ------------------------------ ------------------------------ -------------                     ------------------------------- ------------------------------- --------------------------------
Net Income / (Loss)                                                                                    $ 16,031    $ 17,323     $ (1,292 )                       $  54,656    $  59,794     $  (5,138 )
Net Income / (Loss) Per Share (Diluted)                                                                $   0.19                       $   0.20                        $  (0.01 )                       $    0.64                       $    0.71                        $   (0.07 )
Adjusted EBITDA                                                                                        $ 44,163                       $ 48,515                        $ (4,352 )                       $ 141,279                       $ 152,929                        $ (11,650 )
                                                                                                                                                                                                                                                                                   

The Pipeline and Storage segment’s third quarter earnings decreased $1.3 million, or 7 percent, from the prior year due to a decline in operating revenues offset partially by a lower effective income tax rate. The $4.1 million decrease in operating revenues was expected due to a reduction in Supply Corporation and Empire’s rates related to their respective rate case settlements that went into effect in 2016, lower reservation revenues resulting from recent contract terminations and restructurings, and a decline in short-term interruptible transportation service 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                                                                                    Nine Months Ended
                                                                                                                                       June 30,                                                                                             June 30,
                                                                                                       ------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------
(in thousands except per share amounts)                                                                   2017        2016      Variance                         2017        2016              Variance
                                                                                                       ------------------------------ ------------------------------ ----------                     ------------------------------ ------------------------------ --------------------------
Net Income / (Loss)                                                                                    $ 10,107    $  9,473     $   634                       $ 31,373    $ 21,962       $                9,411
Net Income / (Loss) Per Share (Diluted)                                                                $   0.12                       $   0.11                        $  0.01                       $   0.37                       $   0.26                          $                 0.11
Adjusted EBITDA                                                                                        $ 23,901                       $ 22,433                        $ 1,468                       $ 73,174                       $ 57,722                          $               15,452
                                                                                                                                                                                                                                                                        

The Gathering segment’s third quarter earnings increased $0.6 million, or 7 percent, versus the prior year due primarily to higher operating revenues. Operating revenues increased $1.4 million as the increase in Seneca’s gross natural gas production in Appalachia, which includes production from joint development wells, helped drive higher throughput across the Company’s gathering systems. The Gathering segment transported 48.8 Bcf on its systems in the third quarter, up 2.5 Bcf or 5 percent from the prior year. Higher depreciation expense associated with new gathering and compression assets placed in service during the last twelve months partially offset the impact of higher operating revenues.

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                                                                                       Nine Months Ended
                                                                                                                                       June 30,                                                                                                June 30,
                                                                                                       ------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
(in thousands except per share amounts)                                                                   2017        2016      Variance                         2017         2016                 Variance
                                                                                                       ------------------------------ ------------------------------ ----------                     ------------------------------- ------------------------------- -------------------------------
Net Income / (Loss)                                                                                    $  4,348    $  2,179     $ 2,169                       $  51,103    $  52,745     $ (1,642 )
Net Income / (Loss) Per Share (Diluted)                                                                $   0.05                       $   0.03                        $  0.02                       $    0.59                       $    0.62                        $  (0.03 )
Adjusted EBITDA                                                                                        $ 25,322                       $ 22,900                        $ 2,422                       $ 139,232                       $ 138,284                        $    948
                                                                                                                                                                                                                                                                               

The Utility segment’s third quarter earnings increased $2.2 million due primarily to lower O&M expense offset partially by higher DD&A expenses. O&M expense decreased $2.5 million versus the prior year due mainly to lower pension and personnel costs. DD&A expense increased $0.9 million due to higher average plant balances for the quarter ended June 30, 2017, which was primarily driven by the replacement of Distribution’s customer information system that was placed in service in May 2016.

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                                                                                           Nine Months Ended
                                                                                                                                             June 30,                                                                                                    June 30,
                                                                                                       ------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
(in thousands except per share amounts)                                                                   2017         2016           Variance                              2017       2016                Variance
                                                                                                       ------------------------------- ------------------------------ ---------------------                     ----------------------------- ----------------------------- -------------------------------
Net Income / (Loss)                                                                                    $   (564 )   $  (590 )    $             26                         $ 2,122    $ 4,117     $ (1,995 )
Net Income / (Loss) Per Share (Diluted)                                                                $  (0.01 )                      $ (0.01 )                       $ --                         $  0.02                       $  0.05                        $  (0.03 )
Adjusted EBITDA                                                                                        $ (1,017 )                      $  (930 )                       $            (87 )                       $ 3,213                       $ 6,569                        $ (3,356 )
                                                                                                                                                                                                                                                                                       

The Energy Marketing segment’s third quarter earnings were largely unchanged when compared to the prior year.

Corporate and All Other

The Corporate and All Other category had a net loss of $0.3 million for the third quarter compared to a net loss of $0.9 million in the prior year. The $0.6 million improvement impacted consolidated earnings by less than $0.01 per share.

GUIDANCE

The Company is raising and tightening its earnings guidance for fiscal 2017 to a range of $3.25 to $3.35 per share to reflect the impact of actual results for the nine months ended June 30, 2017, and updates to key forecast assumptions, including revisions to the Exploration and Production segment’s forecasted production, oil pricing and operating expense assumptions, as outlined in the table below.

The Company is also initiating preliminary earnings, production, capital expenditures, and certain business segment operational guidance for fiscal 2018. National Fuel is projecting that its fiscal 2018 earnings will be within a range of $2.70 to $3.05 per share, or $2.875 per share at the midpoint of the range. The $0.425 per share decrease from the fiscal 2017 earnings guidance midpoint is being driven primarily by lower expected price realizations after hedging on Seneca’s natural gas and oil production and higher expected operating costs at the Company’s regulated businesses, offset partially by the impact of normal weather on the Utility segment’s earnings and an increase in projected natural gas production in Appalachia, which will benefit earnings for the Company’s Exploration and Production and Gathering segments.

Seneca’s fiscal 2018 net production is expected to be in the range of 185 to 200 Bcfe. Natural gas production in the East Division is expected to be in a range of 165 to 180 Bcf, an 11 percent increase versus fiscal 2017. Seneca added a second rig and resumed Marcellus shale development activities in Lycoming County, Pa. this past May, which is the main driver of the 17.5 Bcf increase. Seneca’s oil operations in California are expected to produce approximately 20 Bcfe, relatively flat versus fiscal 2017. The midpoint of the production range does not assume any price related curtailments.

Due to the expiration of physical firm sales and financial hedge contracts with favorable pricing relative to current market prices and hedge book, Seneca is projecting a significant decrease in natural gas and oil price realizations in fiscal 2018. Seneca’s fiscal 2018 natural gas production is 52 percent hedged at an average hedge price of $2.90 per MMBtu. Assuming NYMEX natural gas pricing of $3.00 per MMBtu, average Appalachian basin spot prices of $2.40 per MMBtu, and adjustments for transportation costs, contracted firm sale differentials, and Btu uplift, Seneca expects its fiscal 2018 net realized gas price after hedging to be approximately $2.55 per Mcf, which is a decrease of $0.41 per Mcf from Seneca’s realized pricing after hedging of $2.96 per Mcf for the nine months ended June 30, 2017. Seneca is approximately 45 percent hedged on an expected 3 million bbls of oil production in fiscal 2018 at an average hedge price of $55.46 per Bbl.

Additional details on the Company’s forecast assumptions and business segment guidance for fiscal 2018 are outlined in the table below.

                                                                      
                                                                                                     Updated FY 2017 Guidance                      Preliminary FY 2018 Guidance
                                                                                                     ------------------------                      ----------------------------
Consolidated Earnings per Share                                                                           $3.25 to $3.35                                  $2.70 to $3.05
                                                                                                                                                    
Capital Expenditures (Millions)
    Exploration & Production (1)                                                                            $230 - $250                                     $275 - $325
    Pipeline & Storage                                                                                      $100 - $110                                     $110 - $140
    Gathering                                                                                                $35 - $45                                       $60 - $80
    Utility                                                                                                 $90 - $100                                      $90 - $100
                                                                                                     ------------------------                      ----------------------------
    Consolidated Capital Expenditures                                                                       $455 - $505                                     $535 - $645
                                                                                                                                                    
                                                                                   
                                                                                                                  Updated FY 2017 Guidance                      Preliminary FY 2018 Guidance
                                                                                                                  ------------------------                      ----------------------------
Exploration & Production Segment Guidance
                                                                                                                                                                 
    Commodity Price Assumptions
    NYMEX natural gas price                                                                                             $3.00 /MMBtu                                    $3.00 /MMBtu
    Appalachian basin spot price                                                                                        $2.00 /MMBtu                                    $2.40 /MMBtu
    NYMEX (WTI) crude oil price                                                                                          $50.00 /Bbl                                     $50.00 /Bbl
    California oil price (% of WTI)                                                                                          92%                                             92%
                                                                                                                                                                 
    Production (Bcfe)
    East Division - Appalachia (2)                                                                                       150 to 160                                      165 to 180
    West Division - California                                                                                                20                                              20
                                                                                                                  ------------------------                      ----------------------------
    Total Production                                                                                                     170 to 180                                      185 to 200
                                                                                                                                                                 
    E&P Operating Costs ($/Mcfe)
    LOE (3)                                                                                                                 $0.95                                       $0.90 - $1.00
    G&A                                                                                                                     $0.35                                       $0.30 - $0.35
    DD&A                                                                                                                    $0.65                                       $0.65 - $0.70
                                                                                                                                                                 
Other Business Segment Guidance
    Gathering Segment Revenues (Millions)                                                                                    $110                                        $115 - $125
    Pipeline & Storage Segment Revenues (Millions)                                                                           $295                                            $295
                                                                                                                                                                 
(1)   Net of conveyance proceeds received from joint development partner
                         for working interest in joint development wells.
(2)                      Seneca East Division - Appalachia production guidance assumes
                         approximately 35 Bcf of spot sales in FY18.
(3)                      FY17 reflects full year average LOE. Fourth quarter FY17 LOE
                         expected to be $1.00-$1.05 due to an increase in well workover and
                         steam activity in California.
                          

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, August 4, 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) 844-862-1432, using conference ID number "51109130." For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 855-859-2056 using conference ID number "51109130." Both the webcast and a telephonic replay will be available until the close of business on Friday, August 11, 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 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; 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; 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 JUNE 30, 2017
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                         Upstream                                                                     Midstream Businesses                                                                                            Downstream Businesses
                                                                                                                            ----------------------------------                     -------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                       Exploration &                                           Pipeline &                                                                                                                                                                Energy                                                Corporate /
(Thousands of Dollars)                                                                                                                  Production                            Storage                             Gathering                             Utility                             Marketing                            All Other                          Consolidated*
                                                                                                                            ------------------------------------------------------ ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Third quarter 2016 GAAP earnings                                                                                               $ (19,165 )                                              $ 17,323                                                $  9,473                                                $  2,179                                                $   (590 )                                              $   (934 )                                              $  8,286
Items impacting comparability:
Impairment of oil and gas producing properties                                                                                    82,658                                                                                                                                                                                                                                                                                                                                          82,658
Tax impact of impairment of oil and gas producing properties                                                                     (34,716 )                                                                                                                                                                                                                                                                                                                                       (34,716 )
Joint development agreement professional fees                                                                                      3,173                                                                                                                                                                                                                                                                                                                                           3,173
Tax impact of joint development agreement professional fees                                                                       (1,333 )                                                                                                                       (1,333 )
                                                                                                                            --------------------------------- -------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ----------------------------------
Third quarter 2016 operating results                                                                                              30,617                                                  17,323                                                   9,473                                                   2,179                                                    (590 )                                                  (934 )                                                58,068
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Drivers of operating results
Higher (lower) crude oil prices                                                                                                   (2,511 )                                                                                                                                                                                                                                                                                                                                        (2,511 )
Higher (lower) natural gas prices                                                                                                  2,228                                                                                                                                                                                                                                                                                                                                           2,228
Higher (lower) natural gas production                                                                                             (1,805 )                                                                                                                                                                                                                                                                                                                                        (1,805 )
Higher (lower) crude oil production                                                                                               (2,229 )                                                                                                                                                                                                                                                                                                                                        (2,229 )
Derivative mark to market adjustments                                                                                                619                                                                                                                                                                                                                                                                                                                                             619
Lower (higher) lease operating and transportation expenses                                                                        (1,150 )                                                                                                                                                                                                                                                                                                                                        (1,150 )
Lower (higher) depreciation / depletion                                                                                            2,490                                                     331                                                    (340 )                                                  (554 )                                                                                                                                                                 1,927
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Higher (lower) transportation revenues                                                                                                                                                    (2,380 )                                                                                                                                                                                                                                                                                (2,380 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                     913                                                                                                                                                                                                                             913
Lower (higher) other operating expenses                                                                                                                                                                                                                                                                    1,769                                                                                                            (392 )                                                 1,377
Lower (higher) property, franchise and other taxes                                                                                  (428 )                                                  (328 )                                                                                                                                                                                                                                                                                  (756 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                                                                                      (630 )                                                  (630 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Lower (higher) interest expense                                                                                                                                                                                                                     (401 )                                                                                                                                                                                                                          (401 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Lower (higher) income tax expense / effective tax rate                                                                             2,383                                                   1,214                                                     291                                                     987                                                                                                           1,580                                                   6,455
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
All other / rounding                                                                                                                 (91 )                               (129 )                                171               (33 )                                 26                45               (11 )
                                                                                                                            --------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ----------------------------------
Third quarter 2017 GAAP earnings and operating results                                                                         $  30,123          $ 16,031          $ 10,107          $  4,348          $   (564 )                           $   (331 )                           $ 59,714  
                                                                                                                            ==== ======= ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
* Amounts do not reflect intercompany eliminations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                      RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
                                                                                                                                                                                                                                     QUARTER ENDED JUNE 30, 2017
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                          Upstream                                                                         Midstream Businesses                                                                                                Downstream Businesses
                                                                                                                            -------------------------------------                     -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                        Exploration &                                              Pipeline &                                                                                                                                                                      Energy                                          Corporate /
                                                                                                                                         Production                               Storage                               Gathering                               Utility                               Marketing                      All Other                    Consolidated*
                                                                                                                            --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ----------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Third quarter 2016 GAAP earnings                                                                                                  $   (0.22 )                                               $    0.20                                                 $    0.11                                                 $    0.03                                                 $   (0.01 )                                               $   (0.01 )                               $    0.10
Items impacting comparability:
Impairment of oil and gas producing properties                                                                                         0.97                                                                                                                                                                                                                                                                                                                                        0.97
Tax impact of impairment of oil and gas producing properties                                                                          (0.41 )                                                                                                                                                                                                                                                                                                                                     (0.41 )
Joint development agreement professional fees                                                                                          0.04                                                                                                                                                                                                                                                                                                                                        0.04
Tax impact of joint development agreement professional fees                                                                           (0.02 )                                                                                                                    (0.02 )
                                                                                                                            ------------------------------------ -------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ----------------------------------------- ------------------------------------
Third quarter 2016 operating results                                                                                                   0.36                                                      0.20                                                      0.11                                                      0.03                                                     (0.01 )                                                   (0.01 )                                    0.68
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Drivers of operating results
Higher (lower) crude oil prices                                                                                                       (0.03 )                                                                                                                                                                                                                                                                                                                                     (0.03 )
Higher (lower) natural gas prices                                                                                                      0.03                                                                                                                                                                                                                                                                                                                                        0.03
Higher (lower) natural gas production                                                                                                 (0.02 )                                                                                                                                                                                                                                                                                                                                     (0.02 )
Higher (lower) crude oil production                                                                                                   (0.03 )                                                                                                                                                                                                                                                                                                                                     (0.03 )
Derivative mark to market adjustments                                                                                                  0.01                                                                                                                                                                                                                                                                                                                                        0.01
Lower (higher) lease operating and transportation expenses                                                                            (0.01 )                                                                                                                                                                                                                                                                                                                                     (0.01 )
Lower (higher) depreciation / depletion                                                                                                0.03                                            --                                            --                                                     (0.01 )                                                                                                                                                        0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Higher (lower) transportation revenues                                                                                                                                                          (0.03 )                                                                                                                                                                                                                                                                           (0.03 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                           0.01                                                                                                                                                                                                                    0.01
Lower (higher) other operating expenses                                                                                                                                                                                                                                                                              0.02                                                                                                      --                                      0.02
Lower (higher) property, franchise and other taxes                                                                           --                                            --                                                                                                                                                                                                                                                                    --
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                                                                                                  (0.01 )                                   (0.01 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Lower (higher) interest expense                                                                                                                                                                                                                  --                                                                                                                                                                                                          --
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Lower (higher) income tax expense / effective tax rate                                                                                 0.03                                                      0.01                                            --                                                      0.01                                                                                                                0.02                                      0.07
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
All other / rounding                                                                                                                  (0.02 )                                 0.01      --      --      --               (0.01 )                (0.02 )
                                                                                                                            ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- -------------------- -------------------- ------------------------------------
Third quarter 2017 GAAP earnings and operating results                                                                            $    0.35           $    0.19           $    0.12           $    0.05           $   (0.01 )                            $   (0.01 )            $    0.69  
                                                                                                                            ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==== ==================== ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
* Amounts do not reflect intercompany eliminations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                     NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                      RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
                                                                                                                                                                                                                                  NINE MONTHS ENDED JUNE 30, 2017
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                         Upstream                                                                      Midstream Businesses                                                                                            Downstream Businesses
                                                                                                                            -----------------------------------                     -------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                       Exploration &                                            Pipeline &                                                                                                                                                                Energy                                         Corporate /
(Thousands of Dollars)                                                                                                                  Production                             Storage                             Gathering                             Utility                             Marketing                     All Other                    Consolidated*
                                                                                                                            ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Nine months ended June 30, 2016 GAAP earnings                                                                                  $ (469,586 )                                              $ 59,794                                                $ 21,962                                                $ 52,745                                                $  4,117                                                $  2,458                                  $ (328,510 )
Items impacting comparability:
Impairment of oil and gas producing properties                                                                                    915,552                                                                                                                                                                                                                                                                                                                             915,552
Tax impact of impairment of oil and gas producing properties                                                                     (384,531 )                                                                                                                                                                                                                                                                                                                          (384,531 )
Joint development agreement professional fees                                                                                       7,855                                                                                                                                                                                                                                                                                                                               7,855
Tax impact of joint development agreement professional fees                                                                        (3,299 )                                                                                                           (3,299 )
                                                                                                                            ---------------------------------- -------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ------------------------------------
Nine months ended June 30, 2016 operating results                                                                                  65,991                                                  59,794                                                  21,962                                                  52,745                                                   4,117                                                   2,458                                     207,067
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Drivers of operating results
Higher (lower) crude oil prices                                                                                                    (4,889 )                                                                                                                                                                                                                                                                                                                            (4,889 )
Higher (lower) natural gas prices                                                                                                  (2,960 )                                                                                                                                                                                                                                                                                                                            (2,960 )
Higher (lower) natural gas production                                                                                              24,737                                                                                                                                                                                                                                                                                                                              24,737
Higher (lower) crude oil production                                                                                                (4,999 )                                                                                                                                                                                                                                                                                                                            (4,999 )
Derivative mark to market adjustments                                                                                                 510                                                                                                                                                                                                                                                                                                                                 510
Lower (higher) lease operating and transportation expenses                                                                         (4,830 )                                                                                                                                                                                                                                                                                                                            (4,830 )
Lower (higher) depreciation / depletion                                                                                            17,701                                                     970                                                    (391 )                                                (2,594 )                                                                                                                                                    15,686
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Higher (lower) transportation revenues                                                                                                                                                     (4,519 )                                                                                                                                                                                                                                                                    (4,519 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                   10,927                                                                                                                                                                                                              10,927
Lower (higher) other operating expenses                                                                                             4,144                                                  (2,191 )                                                  (930 )                                                (3,876 )                                                                                                        (1,059 )                                    (3,912 )
Lower (higher) property, franchise and other taxes                                                                                   (655 )                                                  (558 )                                                                                                                                                                                                                                                                    (1,213 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Regulatory true-up adjustments                                                                                                                                                                                                                                                                                948                                                                                                                                                         948
Higher (lower) usage                                                                                                                                                                                                                                                                                        2,209                                                                                                                                                       2,209
Impact of new rates                                                                                                                                                                                                                                                                                           927                                                                                                                                                         927
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                             (1,932 )                                                  (951 )                                    (2,883 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Higher (lower) AFUDC**                                                                                                                                                                       (469 )                                                                                                          (914 )                                                                                                                                                    (1,383 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Lower (higher) interest expense                                                                                                     1,048                                                                                                                                                                                                                                                                                                                               1,048
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Lower (higher) income tax expense / effective tax rate                                                                              3,395                                                   1,731                                                    (563 )                                                   887                                                                                                            (491 )                                     4,959
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
All other / rounding                                                                                                                 (221 )                               (102 )                                368               771               (63 )                               (277 )                    476  
                                                                                                                            ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- ------------------------------------
Nine months ended June 30, 2017 GAAP earnings and operating                                                                    $   98,972          $ 54,656          $ 31,373          $ 51,103          $  2,122          $   (320 )             $  237,906  
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
                                                                                                                                                                                                                                     NINE MONTHS ENDED JUNE 30, 2017
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                         Upstream                                                                     Midstream Businesses                                                                                           Downstream Businesses
                                                                                                                            -----------------------------------                     ----------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                       Exploration &                                          Pipeline &                                                                                                                                                                 Energy                                                     Corporate /
                                                                                                                                        Production                           Storage                           Gathering                               Utility                              Marketing                                 All Other                               Consolidated*
                                                                                                                            ------------------------------------------------------- -------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Nine months ended June 30, 2016 GAAP earnings                                                                                    $  (5.54 )                                           $ 0.71                                                 $    0.26                                                 $    0.62                                                $   0.05                                                 $           0.03                                                 $   (3.87 )
Items impacting comparability:
Impairment of oil and gas producing properties                                                                                      10.80                                                                                                                                                                                                                                                                                                                                                     10.80
Tax impact of impairment of oil and gas producing properties                                                                        (4.54 )                                                                                                                                                                                                                                                                                                                                                   (4.54 )
Joint development agreement professional fees                                                                                        0.09                                                                                                                                                                                                                                                                                                                                                      0.09
Tax impact of joint development agreement professional fees                                                                         (0.04 )                                                                                                                                                                                                                                                                                                                                                   (0.04 )
Earnings per share impact of diluted shares                                                                                                      (0.01 )                                                                                                                     (0.01 )
                                                                                                                            ------------------------------------------------------- ----------------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------------------------------- ---------------------------------------------------------------- ------------------------------------
Nine months ended June 30, 2016 operating results                                                                                    0.77                                               0.70                                                      0.26                                                      0.62                                                    0.05                                                             0.03                                                      2.43
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Drivers of operating results
Higher (lower) crude oil prices                                                                                                     (0.06 )                                                                                                                                                                                                                                                                                                                                                   (0.06 )
Higher (lower) natural gas prices                                                                                                   (0.03 )                                                                                                                                                                                                                                                                                                                                                   (0.03 )
Higher (lower) natural gas production                                                                                                0.29                                                                                                                                                                                                                                                                                                                                                      0.29
Higher (lower) crude oil production                                                                                                 (0.06 )                                                                                                                                                                                                                                                                                                                                                   (0.06 )
Derivative mark to market adjustments                                                                                                0.01                                                                                                                                                                                                                                                                                                                                                      0.01
Lower (higher) lease operating and transportation expenses                                                                          (0.06 )                                                                                                                                                                                                                                                                                                                                                   (0.06 )
Lower (higher) depreciation / depletion                                                                                              0.21                                               0.01                                            --                                                     (0.03 )                                                                                                                                                                             0.19
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Higher (lower) transportation revenues                                                                                                                                                 (0.05 )                                                                                                                                                                                                                                                                                                (0.05 )
Higher (lower) gathering and processing revenues                                                                                                                                                                                                  0.12                                                                                                                                                                                                                                         0.12
Lower (higher) other operating expenses                                                                                              0.05                                              (0.03 )                                                   (0.01 )                                                   (0.05 )                                                                                                                  (0.01 )                                                   (0.05 )
Lower (higher) property, franchise and other taxes                                                                                  (0.01 )                                            (0.01 )                                                                                                                                                                                                                                                                                                (0.02 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Regulatory true-up adjustments                                                                                                                                                                                                                                                                              0.01                                                                                                                                                                               0.01
Higher (lower) usage                                                                                                                                                                                                                                                                                        0.03                                                                                                                                                                               0.03
Impact of new rates                                                                                                                                                                                                                                                                                         0.01                                                                                                                                                                               0.01
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Higher (lower) margins                                                                                                                                                                                                                                                                                                                                             (0.02 )                                                          (0.01 )                                                   (0.03 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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                                                                               0.04                                               0.02                                                     (0.01 )                                                    0.01                                                                                                                    (0.01 )                                                    0.05
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
All other / rounding                                                                                                                (0.01 )                          0.01                0.01      --             (0.01 )                              --      --  
                                                                                                                            ---------------------------------- -------------------- ----------------------------- -------------------- ------------------------------------ -------------------- ------------------------------------ -------------------- ---------------------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
Nine months ended June 30, 2017 GAAP earnings and operating                                                                      $   1.15       $ 0.64           $    0.37           $    0.59          $   0.02           $ --           $    2.77  
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                                                                                                 Nine Months Ended
                                                                                                                                                         June 30,                                                                                                          June 30,
                                                                                                                                                        (Unaudited)                                                                                                       (Unaudited)
                                                                                                                -------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
SUMMARY OF OPERATIONS                                                                                                           2017                                 2016                                                    2017                                   2016
------------------------------------------------                                                                ----------------------------------   -------------------- ------------------------------                        ----------------------------------   -------------------- ----------------------------------
Operating Revenues:
  Utility and Energy Marketing Revenues                                                                               $ 146,360                                             $ 123,976                                                 $ 663,029                                                $  540,981
  Exploration and Production and Other Revenues                                                                         151,925                                               158,578                                                   473,617                                                   456,032
  Pipeline and Storage and Gathering Revenues                                                                            50,083                             53,063                                156,298                                162,930  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                        348,368                                               335,617                                                 1,292,944                                                 1,159,943
Operating Expenses:
  Purchased Gas                                                                                                          46,135                                                23,477                                                   264,349                                                   147,168
  Operation and Maintenance:
       Utility and Energy Marketing                                                                                      44,467                                                46,616                                                   158,796                                                   151,474
       Exploration and Production and Other                                                                              34,098                                                35,427                                                   102,153                                                   123,965
       Pipeline and Storage and Gathering                                                                                23,250                                                23,215                                                    69,016                                                    64,324
  Property, Franchise and Other Taxes                                                                                    21,447                                                20,261                                                    64,368                                                    61,923
  Depreciation, Depletion and Amortization                                                                               55,617                                                58,802                                                   168,812                                                   193,300
  Impairment of Oil and Gas Producing Properties                                                                 --                             82,658                         --                                915,552  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                        225,014                                               290,456                                                   827,494                                                 1,657,706
                                                                                                                                                                                                                                                                                           
Operating Income (Loss)                                                                                                 123,354                                                45,161                                                   465,450                                                  (497,763 )
                                                                                                                                                                                                                                                                                           
Other Income (Expense):
  Interest Income                                                                                                           853                                                   564                                                     2,844                                                     2,640
  Other Income                                                                                                            1,370                                                 1,519                                                     4,728                                                     7,173
  Interest Expense on Long-Term Debt                                                                                    (29,225 )                                             (28,897 )                                                 (87,241 )                                                 (88,263 )
  Other Interest Expense                                                                                                   (846 )                                              (1,321 )                                                  (2,680 )                                                  (3,938 )
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                                           
Income (Loss) Before Income Taxes                                                                                        95,506                                                17,026                                                   383,101                                                  (580,151 )
                                                                                                                                                                                                                                                                                           
Income Tax Expense (Benefit)                                                                                             35,792                              8,740                                145,195                               (251,641 )
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                                           
Net Income (Loss) Available for Common Stock                                                                          $  59,714                          $   8,286                              $ 237,906                             $ (328,510 )
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Earnings (Loss) Per Common Share:
  Basic                                                                                                               $    0.70                          $    0.10                              $    2.79                             $    (3.87 )
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
  Diluted                                                                                                             $    0.69                          $    0.10                              $    2.77                             $    (3.87 )
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Weighted Average Common Shares:
Used in Basic Calculation                                                                                                                 85,422,313                                            84,917,664                                                85,315,154                                                84,791,447
                                                                                                                =====================================                     =================================                     =====================================                     =====================================
Used in Diluted Calculation                                                                                                               86,064,464                                            85,470,216                                                85,950,742                                                84,791,447
                                                                                                                =====================================                     =================================                     =====================================                     =====================================
                                                                                                                                                                                                                                                                                           
 
                                                                                                    NATIONAL FUEL GAS COMPANY
                                                                                                        AND SUBSIDIARIES
                                                                                                   CONSOLIDATED BALANCE SHEETS
                                                                                                           (Unaudited)
                                                                         
                                                                                                                                                 June 30,                            September 30,
(Thousands of Dollars)                                                                    2017                                  2016
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------------------------------------------- ------------------------------------
                                                                                                                                                                                             
ASSETS
Property, Plant and Equipment                                                                                                          $9,816,295                                               $9,539,581
Less - Accumulated Depreciation, Depletion and Amortization                    5,232,771          5,085,099  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Net Property, Plant and Equipment                                           4,583,524          4,454,482  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                             
Current Assets:
Cash and Temporary Cash Investments                                                                                                       285,325                                                  129,972
Hedging Collateral Deposits                                                                                                                 2,142                                                    1,484
Receivables - Net                                                                                                                         127,876                                                  133,201
Unbilled Revenue                                                                                                                           19,729                                                   18,382
Gas Stored Underground                                                                                                                     17,793                                                   34,332
Materials and Supplies - at average cost                                                                                                   34,706                                                   33,866
Unrecovered Purchased Gas Costs                                                                                                             3,757                                                    2,440
Other Current Assets                                                              50,852             59,354  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Current Assets                                                          542,180            413,031  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                             
Other Assets:
Recoverable Future Taxes                                                                                                                  182,469                                                  177,261
Unamortized Debt Expense                                                                                                                    1,292                                                    1,688
Other Regulatory Assets                                                                                                                   315,126                                                  320,750
Deferred Charges                                                                                                                           28,821                                                   20,978
Other Investments                                                                                                                         126,485                                                  110,664
Goodwill                                                                                                                                    5,476                                                    5,476
Prepaid Post-Retirement Benefit Costs                                                                                                      18,619                                                   17,649
Fair Value of Derivative Financial Instruments                                                                                             63,036                                                  113,804
Other                                                                                479                604  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Other Assets                                                            741,803            768,874  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Assets                                                                  $5,867,507         $5,636,387  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                             
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 85,467,963 Shares
and 85,118,886 Shares, Respectively                                                                                                       $85,468                                                  $85,119
Paid in Capital                                                                                                                           790,291                                                  771,164
Earnings Reinvested in the Business                                                                                                       841,593                                                  676,361
Accumulated Other Comprehensive Loss                                             (33,304 )                              (5,640 )
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Comprehensive Shareholders’ Equity                                                                                                1,684,048                                                1,527,004
Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs            1,787,954          2,086,252  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Capitalization                                                        3,472,002          3,613,256  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                             
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper                                                                                        --                                           --
Current Portion of Long-Term Debt                                                                                                         300,000                                           --
Accounts Payable                                                                                                                           98,842                                                  108,056
Amounts Payable to Customers                                                                                                               13,070                                                   19,537
Dividends Payable                                                                                                                          35,469                                                   34,473
Interest Payable on Long-Term Debt                                                                                                         28,985                                                   34,900
Customer Advances                                                                                                                             224                                                   14,762
Customer Security Deposits                                                                                                                 17,522                                                   16,019
Other Accruals and Current Liabilities                                                                                                    107,101                                                   74,430
Fair Value of Derivative Financial Instruments                                       922              1,560  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Current and Accrued Liabilities                                         602,135            303,737  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                             
Deferred Credits:
Deferred Income Taxes                                                                                                                     881,547                                                  823,795
Taxes Refundable to Customers                                                                                                              93,321                                                   93,318
Cost of Removal Regulatory Liability                                                                                                      199,739                                                  193,424
Other Regulatory Liabilities                                                                                                               88,647                                                   99,789
Pension and Other Post-Retirement Liabilities                                                                                             299,326                                                  277,113
Asset Retirement Obligations                                                                                                              115,354                                                  112,330
Other Deferred Credits                                                           115,436            119,625  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
   Total Deferred Credits                                                      1,793,370          1,719,394  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Commitments and Contingencies                                             --     --  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Total Capitalization and Liabilities                                          $5,867,507         $5,636,387  
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                            
                                                                                                                          
                                                                                                          NATIONAL FUEL GAS COMPANY
                                                                                                              AND SUBSIDIARIES
                                                                                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                 (Unaudited)
                                                                                                                                                                                 Nine Months Ended
                                                                                                                                                                                     June 30,
(Thousands of Dollars)                                                                           2017                                      2016
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                        
Operating Activities:
Net Income (Loss) Available for Common Stock                                                                                                $        237,906                                                $ (328,510 )
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by
Operating Activities:
   Impairment of Oil and Gas Producing Properties                                                                                             --                                                   915,552
   Depreciation, Depletion and Amortization                                                                                                          168,812                                                   193,300
   Deferred Income Taxes                                                                                                                             105,073                                                  (269,248 )
   Excess Tax Benefits Associated with Stock-Based Compensation Awards                                                                        --                                                    (1,786 )
   Stock-Based Compensation                                                                                                                            8,857                                                     3,138
   Other                                                                                                                                              11,084                                                     9,685
 Change in:
   Hedging Collateral Deposits                                                                                                                          (658 )                                                   8,116
   Receivables and Unbilled Revenue                                                                                                                  (15,885 )                                                  (7,756 )
   Gas Stored Underground and Materials and Supplies                                                                                                  15,699                                                    15,683
   Unrecovered Purchased Gas Costs                                                                                                                    (1,317 )                                                    (933 )
   Other Current Assets                                                                                                                                8,502                                                    15,334
   Accounts Payable                                                                                                                                    5,046                                                   (53,687 )
   Amounts Payable to Customers                                                                                                                       (6,467 )                                                 (21,337 )
   Customer Advances                                                                                                                                 (14,538 )                                                 (16,198 )
   Customer Security Deposits                                                                                                                          1,503                                                      (396 )
   Other Accruals and Current Liabilities                                                                                                             25,423                                                     3,375
   Other Assets                                                                                                                                       (3,548 )                                                   3,775
   Other Liabilities                                                                          5,638              (8,152 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
     Net Cash Provided by Operating Activities                                     $        551,130          $  459,955  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                                                                        
Investing Activities:
Capital Expenditures                                                                                                                        $       (314,774 )                                              $ (481,781 )
Net Proceeds from Sale of Oil and Gas Producing Properties                                                                                            26,554                                                   115,235
Other                                                                                       (10,186 )                              (11,163 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
     Net Cash Used in Investing Activities                                         $       (298,406 )                           $ (377,709 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                                                                        
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards                                                                         $ --                                                $    1,786
Dividends Paid on Common Stock                                                                                                                      (103,594 )                                                (100,419 )
Net Proceeds From Issuance of Common Stock                                                    6,223               8,358  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
     Net Cash Used in Financing Activities                                         $        (97,371 )                           $  (90,275 )
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                                                                        
Net Increase (Decrease) in Cash and Temporary Cash Investments                                                                                       155,353                                                    (8,029 )
Cash and Temporary Cash Investments at Beginning of Period                                  129,972             113,596  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------- -------------------- ------------------------------------
Cash and Temporary Cash Investments at June 30                                     $        285,325          $  105,567  
---------------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------ -------- --------------------
                                                                                                                                                                                                                        
                                                                                                                                                                  
                                                                                                                                                                                    NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                        AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                            SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                           (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                        UPSTREAM BUSINESS
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                               Three Months Ended                                                                                                                                  Nine Months Ended
(Thousands of Dollars, except per share amounts)                                                                                                                                    June 30,                                                                                                                                           June 30,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------
EXPLORATION AND PRODUCTION SEGMENT                                                                                              2017                                 2016                             Variance                                                 2017                                2016                              Variance
------------------------------------------------                                                                ----------------------------------   -------------------- ------------------------------   -------------------- -----------------------------                        ----------------------------------   --------------------------------   ---------------------------------
Total Operating Revenues                                                                                              $ 151,161       $ 156,835       $ (5,674 )                                               $ 471,646      $  452,583        $  19,063  
                                                                                                                ------- ------- -------------------- -------------------- --- ------- -------------------- -------------------- --- ------ --------------------                      ------- ------- -------------------- ---- -------- -------------------- ------ ------- --------------------
                                                                                                                                                                                                                                                                                                                                                              
Operating Expenses:
  Operation and Maintenance:
   General and Administrative Expense                                                                                    14,170                                                16,573                                               (2,403 )                                                  43,674                             55,671                             (11,997 )
   Lease Operating and Transportation Expense                                                                            40,630                                                38,861                                                1,769                                                   122,881                            115,451                               7,430
   All Other Operation and Maintenance Expense                                                                            2,835                                                 3,011                                                 (176 )                                                   8,168                             10,402                              (2,234 )
  Property, Franchise and Other Taxes                                                                                     4,297                                                 3,639                                                  658                                                    11,248                             10,241                               1,007
  Depreciation, Depletion and Amortization                                                                               27,448                                                31,279                                               (3,831 )                                                  85,353                            112,586                             (27,233 )
  Impairment of Oil and Gas Producing Properties                                                                 --          82,658        (82,658 )                                          --         915,552         (915,552 )
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ ---------------------------------- -----------------------------------
                                                                                                                         89,380         176,021        (86,641 )                                                 271,324       1,219,903         (948,579 )
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ ---------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                              
Operating Income (Loss)                                                                                                  61,781                                                                   (19,186)                          80,967                                                   200,322                                               (767,320)        967,642
                                                                                                                                                                                                                                                                                                                                                              
Other Income (Expense):
  Interest Income                                                                                                           217                                                    88                                                  129                                                       451                                781                                (330 )
  Interest Expense                                                                                                      (13,444 )                          (13,753 )                             309                                (40,270 )                          (41,882 )                             1,612  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ ---------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                              
Income (Loss) Before Income Taxes                                                                                        48,554                                               (32,851 )                                             81,405                                                   160,503                           (808,421 )                           968,924
Income Tax Expense (Benefit)                                                                                             18,431         (13,686 )                          32,117                                 61,531        (338,835 )                           400,366  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- -------------------------------                      ------------------------------------ ---------------------------------- -----------------------------------
Net Income (Loss)                                                                                                     $  30,123       $ (19,165 )                        $ 49,288                              $  98,972      $ (469,586 )                         $ 568,558  
                                                                                                                ======= ======= ==================== ==================== === ======= ==================== ==================== === ====== ====================                      ======= ======= ==================== ==== ======== ==================== ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                              
Net Income (Loss) Per Share (Diluted)                                                                                 $    0.35       $   (0.22 )                        $   0.57                              $    1.15      $    (5.54 )                         $    6.69  
                                                                                                                ======= ======= ==================== ==================== === ======= ==================== ==================== === ====== ====================                      ======= ======= ==================== ==== ======== ==================== ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                 
                                                                                                                                                                                NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                    AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                        SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                       (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                  MIDSTREAM BUSINESSES
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                              Three Months Ended                                                                                                                              Nine Months Ended
(Thousands of Dollars, except per share amounts)                                                                                                                                   June 30,                                                                                                                                       June 30,
                                                                                                                -----------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------
PIPELINE AND STORAGE SEGMENT                                                                                                    2017                                 2016                            Variance                                               2017                             2016                            Variance
------------------------------------------------                                                                ----------------------------------   -------------------- -----------------------------   -------------------- -----------------------------                        ------------------------------   ------------------------------   --------------------------------
Revenues from External Customers                                                                                      $  50,049                                             $ 52,998                                             $ (2,949 )                                           $ 156,212                        $ 162,627                           $ (6,415 )
Intersegment Revenues                                                                                                    21,643         22,795         (1,152 )                                              66,389        68,272          (1,883 )
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
Total Operating Revenues                                                                                                 71,692         75,793         (4,101 )                                             222,601       230,899          (8,298 )
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Operating Expenses:
Purchased Gas                                                                                                               (13 )                                                356                                                 (369 )                                                 181                            1,059                               (878 )
Operation and Maintenance                                                                                                20,607                                               20,492                                                  115                                                60,517                           57,145                              3,372
Property, Franchise and Other Taxes                                                                                       6,935                                                6,430                                                  505                                                20,624                           19,766                                858
Depreciation, Depletion and Amortization                                                                                 10,513         11,023           (510 )                                              30,651        32,144          (1,493 )
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                         38,042         38,301           (259 )                                             111,973       110,114           1,859  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Operating Income                                                                                                         33,650                                               37,492                                               (3,842 )                                             110,628                          120,785                            (10,157 )
                                                                                                                                                                                                                                                                                                                                                       
Other Income (Expense):
 Interest Income                                                                                                            393                                                  237                                                  156                                                   984                              527                                457
 Other Income                                                                                                               449                                                  657                                                 (208 )                                               1,944                            2,651                               (707 )
 Interest Expense                                                                                                        (8,489 )                          (8,528 )                              39                            (25,177 )                        (25,017 )                             (160 )
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Income Before Income Taxes                                                                                               26,003                                               29,858                                               (3,855 )                                              88,379                           98,946                            (10,567 )
Income Tax Expense                                                                                                        9,972         12,535         (2,563 )                                              33,723        39,152          (5,429 )
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
Net Income                                                                                                            $  16,031       $ 17,323       $ (1,292 )                                           $  54,656     $  59,794        $ (5,138 )
                                                                                                                ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                       
Net Income Per Share (Diluted)                                                                                        $    0.19       $   0.20       $  (0.01 )                                           $    0.64     $    0.71        $  (0.07 )
                                                                                                                ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                              Three Months Ended                                                                                                                              Nine Months Ended
                                                                                                                                                                                   June 30,                                                                                                                                       June 30,
                                                                                                                -----------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------
GATHERING SEGMENT                                                                                                               2017                                 2016                            Variance                                               2017                             2016                            Variance
------------------------------------------------                                                                ----------------------------------   -------------------- -----------------------------   -------------------- -----------------------------                        ------------------------------   ------------------------------   --------------------------------
Revenues from External Customers                                                                                      $      34                                             $     65                                             $    (31 )                                           $      86                        $     303                           $   (217 )
Intersegment Revenues                                                                                                    26,853         25,417          1,436                             82,629        65,601          17,028  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
Total Operating Revenues                                                                                                 26,887         25,482          1,405                             82,715        65,904          16,811  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Operating Expenses:
 Operation and Maintenance                                                                                                2,973                                                3,018                                                  (45 )                                               9,496                            8,066                              1,430
 Property, Franchise and Other Taxes                                                                                         13                                                   31                                                  (18 )                                                  45                              116                                (71 )
 Depreciation, Depletion and Amortization                                                                                 4,131          3,608            523                             12,008        11,407             601  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                          7,117          6,657            460                             21,549        19,589           1,960  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Operating Income                                                                                                         19,770                                               18,825                                                  945                                                61,166                           46,315                             14,851
                                                                                                                                                                                                                                                                                                                                                       
Other Income (Expense):
 Interest Income                                                                                                            288                                                   88                                                  200                                                   641                              188                                453
 Other Income                                                                                                    --                                                    1                                                   (1 )                                                   1                                3                                 (2 )
 Interest Expense                                                                                                        (2,411 )                          (1,794 )                            (617 )                                              (6,739 )                         (6,781 )                               42  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                       
Income Before Income Taxes                                                                                               17,647                                               17,120                                                  527                                                55,069                           39,725                             15,344
Income Tax Expense                                                                                                        7,540          7,647           (107 )                                              23,696        17,763           5,933  
                                                                                                                ------------------------------------ -------------------- ------------------------------- -------------------- -------------------------------                      -------------------------------- -------------------------------- ----------------------------------
Net Income                                                                                                            $  10,107       $  9,473       $    634                          $  31,373     $  21,962        $  9,411  
                                                                                                                ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                       
Net Income Per Share (Diluted)                                                                                        $    0.12       $   0.11       $   0.01                          $    0.37     $    0.26        $   0.11  
                                                                                                                ======= ======= ==================== ==================== === ====== ==================== ==================== === ====== ====================                      === ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                          
                                                                                                                                                                                       NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                           AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                               SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                              (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                         DOWNSTREAM BUSINESSES
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                   Three Months Ended                                                                                                                                    Nine Months Ended
(Thousands of Dollars, except per share amounts)                                                                                                                                        June 30,                                                                                                                                             June 30,
                                                                                                                --------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------
UTILITY SEGMENT                                                                                                                 2017                                 2016                                 Variance                                                     2017                               2016                            Variance
------------------------------------------------                                                                ----------------------------------   -------------------- ------------------------------   -------------------- -------------------------------------                        ----------------------------------   ------------------------------   --------------------------------
Revenues from External Customers                                                                                      $ 121,900                                             $ 106,568                                             $         15,332                                                 $ 550,819                        $ 463,154                           $ 87,665
Intersegment Revenues                                                                                                     3,391           1,729                  1,662                                 11,314        10,757             557  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
Total Operating Revenues                                                                                                125,291         108,297                 16,994                                562,133       473,911          88,222  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                    
Operating Expenses:
 Purchased Gas                                                                                                           46,536                                                29,514                                                       17,022                                                   235,481                          155,764                             79,717
 Operation and Maintenance                                                                                               43,506                                                45,990                                                       (2,484 )                                                 155,783                          148,883                              6,900
 Property, Franchise and Other Taxes                                                                                      9,927                                                 9,893                                                           34                                                    31,637                           30,980                                657
 Depreciation, Depletion and Amortization                                                                                13,086          12,234                    852                                 39,502        35,511           3,991  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                        113,055          97,631                 15,424                                462,403       371,138          91,265  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                    
Operating Income                                                                                                         12,236                                                10,666                                                        1,570                                                    99,730                          102,773                             (3,043 )
                                                                                                                                                                                                                                                                                                                                                                    
Other Income (Expense):
 Interest Income                                                                                                            141                                                   115                                                           26                                                       418                              321                                 97
 Other Income                                                                                                               438                                                   345                                                           93                                                       576                            1,749                             (1,173 )
 Interest Expense                                                                                                        (7,062 )                           (7,192 )                                     130                                (21,454 )                        (21,684 )                              230  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                    
Income Before Income Taxes                                                                                                5,753                                                 3,934                                                        1,819                                                    79,270                           83,159                             (3,889 )
Income Tax Expense                                                                                                        1,405           1,755                   (350 )                                                  28,167        30,414          (2,247 )
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
Net Income                                                                                                            $   4,348       $   2,179       $          2,169                              $  51,103     $  52,745        $ (1,642 )
                                                                                                                ======= ======= ==================== ==================== === ======= ==================== ==================== === ============== ====================                      ======= ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                    
Net Income Per Share (Diluted)                                                                                        $    0.05       $    0.03       $           0.02                              $    0.59     $    0.62        $  (0.03 )
                                                                                                                ======= ======= ==================== ==================== === ======= ==================== ==================== === ============== ====================                      ======= ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                   Three Months Ended                                                                                                                                    Nine Months Ended
                                                                                                                                                                                        June 30,                                                                                                                                             June 30,
                                                                                                                --------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------
ENERGY MARKETING SEGMENT                                                                                                        2017                                 2016                                 Variance                                                     2017                               2016                            Variance
------------------------------------------------                                                                ----------------------------------   -------------------- ------------------------------   -------------------- -------------------------------------                        ----------------------------------   ------------------------------   --------------------------------
Revenues from External Customers                                                                                      $  24,460                                             $  17,408                                             $          7,052                                                 $ 112,210                        $  77,827                           $ 34,383
Intersegment Revenues                                                                                                       565             231                    334                                    600           855            (255 )
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
Total Operating Revenues                                                                                                 25,025          17,639                  7,386                                112,810        78,682          34,128  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                    
Operating Expenses:
 Purchased Gas                                                                                                           24,336                                                17,191                                                        7,145                                                   104,335                           67,235                             37,100
 Operation and Maintenance                                                                                                1,706                                                 1,376                                                          330                                                     5,262                            4,872                                390
 Property, Franchise and Other Taxes                                                                             --                                                     2                                                           (2 )                                          --                                6                                 (6 )
 Depreciation, Depletion and Amortization                                                                                    69              70                     (1 )                                                     210           208               2  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                         26,111          18,639                  7,472                                109,807        72,321          37,486  
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                    
Operating Income (Loss)                                                                                                  (1,086 )                                              (1,000 )                                                        (86 )                                                   3,003                            6,361                             (3,358 )
                                                                                                                                                                                                                                                                                                                                                                    
Other Income (Expense):
 Interest Income                                                                                                            146                                                   145                                                            1                                                       418                              286                                132
 Other Income                                                                                                                22                                                    20                                                            2                                                        57                               44                                 13
 Interest Expense                                                                                                           (13 )                              (11 )                                      (2 )                                                     (38 )                            (37 )                               (1 )
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                    
Income (Loss) Before Income Taxes                                                                                          (931 )                                                (846 )                                                        (85 )                                                   3,440                            6,654                             (3,214 )
Income Tax Expense (Benefit)                                                                                               (367 )                             (256 )                                    (111 )                                                   1,318         2,537          (1,219 )
                                                                                                                ------------------------------------ -------------------- -------------------------------- -------------------- ---------------------------------------                      ------------------------------------ -------------------------------- ----------------------------------
Net Income (Loss)                                                                                                     $    (564 )                        $    (590 )                        $             26                              $   2,122     $   4,117        $ (1,995 )
                                                                                                                ======= ======= ==================== ==================== === ======= ==================== ==================== === ============== ====================                      ======= ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                    
Net Income (Loss) Per Share (Diluted)                                                                                 $   (0.01 )                        $   (0.01 )                        $ --                              $    0.02     $    0.05        $  (0.03 )
                                                                                                                ======= ======= ==================== ==================== === ======= ==================== ==================== === ============== ====================                      ======= ======= ==================== === ======= ==================== ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                  
 
                                                                                                                                                                                                               NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                   AND SUBSIDIARIES
                                                                                                                                                                                                
                                                                                                                                                                                                       SEGMENT OPERATING RESULTS AND STATISTICS
                                                                                                                                                                                                                      (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                              Three Months Ended                                                                                                                                                             Nine Months Ended
(Thousands of Dollars, except per share amounts)                                                                                                                                                   June 30,                                                                                                                                                                      June 30,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
ALL OTHER                                                                                                                           2017                                          2016                                        Variance                                                           2017                                        2016                                      Variance
------------------------------------------------                                                                -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------                        -----------------------------------------   -----------------------------------------   -----------------------------------------
Total Operating Revenues                                                                                              $            538           $          1,508           $           (970 )                                               $          1,311         $          2,775         $         (1,464 )
                                                                                                                ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------                      ------- -------------- -------------------- ------- -------------- -------------------- ------- -------------- --------------------
Operating Expenses:
  Operation and Maintenance                                                                                                        435                                                              256                                                              179                                                            1,344                                         495                                         849
  Property, Franchise and Other Taxes                                                                                              151                                                              144                                                                7                                                              445                                         449                                          (4 )
  Depreciation, Depletion and Amortization                                                                                         182                        399                       (217 )                                                            525                      888                     (363 )
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                   768                        799                        (31 )                                                          2,314                    1,832                      482  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Operating Income (Loss)                                                                                                           (230 )                                                            709                                                             (939 )                                                         (1,003 )                                       943                                      (1,946 )
Other Income (Expense):
  Interest Income                                                                                                59                         32                         27                                           147                       83                       64  
                                                                                           -------------------- ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Income (Loss) Before Income Taxes                                                                                                 (171 )                                                            741                                                             (912 )                                                           (856 )                                     1,026                                      (1,882 )
Income Tax Expense (Benefit)                                                                                                       (73 )                                         311                       (384 )                                                           (358 )                                       431                     (789 )
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Net Income (Loss)                                                                                                     $            (98 )                            $            430           $           (528 )                                               $           (498 )                          $            595         $         (1,093 )
                                                                                                                ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss) Per Share (Diluted)                                                                                 $ --           $           0.01           $          (0.01 )                                               $ --         $           0.01         $          (0.01 )
                                                                                                                ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                              Three Months Ended                                                                                                                                                             Nine Months Ended
                                                                                                                                                                                                   June 30,                                                                                                                                                                      June 30,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE                                                                                                                           2017                                          2016                                        Variance                                                           2017                                        2016                                      Variance
------------------------------------------------                                                                -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------                        -----------------------------------------   -----------------------------------------   -----------------------------------------
Revenues from External Customers                                                                                      $            226                                                 $            235                                                 $             (9 )                                               $            660                            $            674                            $            (14 )
Intersegment Revenues                                                                                                              977                        967                         10                                         2,930                    2,900                       30  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Total Operating Revenues                                                                                                         1,203                      1,202                          1                                         3,590                    3,574                       16  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Operating Expenses:
  Operation and Maintenance                                                                                                      3,658                                                            3,236                                                              422                                                           11,054                                      10,273                                         781
  Property, Franchise and Other Taxes                                                                                              124                                                              122                                                                2                                                              369                                         365                                           4
  Depreciation, Depletion and Amortization                                                                                         188                        189                         (1 )                                                            563                      556                        7  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                 3,970                      3,547                        423                                        11,986                   11,194                      792  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Operating Loss                                                                                                                  (2,767 )                                                         (2,345 )                                                           (422 )                                                         (8,396 )                                    (7,620 )                                      (776 )
                                                                                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense):
  Interest Income                                                                                                               31,185                                                           30,684                                                              501                                                           93,684                                      92,767                                         917
  Other Income                                                                                                                     461                                                              496                                                              (35 )                                                          2,150                                       2,726                                        (576 )
  Interest Expense on Long-Term Debt                                                                                           (29,225 )                                                        (28,897 )                                                           (328 )                                                        (87,241 )                                   (88,263 )                                     1,022
  Other Interest Expense                                                                                                        (1,003 )                                        (868 )                                        (135 )                                                         (2,901 )                                      (850 )                                    (2,051 )
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Loss Before Income Taxes                                                                                                        (1,349 )                                                           (930 )                                                           (419 )                                                         (2,704 )                                    (1,240 )                                    (1,464 )
Income Tax Expense (Benefit)                                                                                                    (1,116 )                                         434                     (1,550 )                                                         (2,882 )                                    (3,103 )                                       221  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Net Income (Loss)                                                                                                     $           (233 )                            $         (1,364 )                            $          1,131                              $            178         $          1,863         $         (1,685 )
                                                                                                                ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss) Per Share (Diluted)                                                                                 $          (0.01 )                            $          (0.02 )                            $           0.01                              $ --         $           0.02         $          (0.02 )
                                                                                                                ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                              Three Months Ended                                                                                                                                                             Nine Months Ended
                                                                                                                                                                                                   June 30,                                                                                                                                                                      June 30,
                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS                                                                                                           2017                                          2016                                        Variance                                                           2017                                        2016                                      Variance
------------------------------------------------                                                                -----------------------------------------   -------------------- -----------------------------------------   -------------------- -----------------------------------------                        -----------------------------------------   -----------------------------------------   -----------------------------------------
Intersegment Revenues                                                                                                 $        (53,429 )                            $        (51,139 )                            $         (2,290 )                                               $       (163,862 )                          $       (148,385 )                          $        (15,477 )
                                                                                                                ------- -------------- -------------------- -------------------- ------- -------------- -------------------- -------------------- ------- -------------- --------------------                      ------- -------------- -------------------- ------- -------------- -------------------- ------- -------------- --------------------
Operating Expenses:
  Purchased Gas                                                                                                                (24,724 )                                                        (23,584 )                                                         (1,140 )                                                        (75,648 )                                   (76,890 )                                     1,242
  Operation and Maintenance                                                                                                    (28,705 )                                     (27,555 )                                      (1,150 )                                                        (88,214 )                                   (71,495 )                                   (16,719 )
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                               (53,429 )                                     (51,139 )                                      (2,290 )                                                       (163,862 )                                  (148,385 )                                   (15,477 )
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Operating Income                                                                                                        --                                                   --                                                   --                                                   --                              --                              --
                                                                                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense):
  Interest Income                                                                                                              (31,576 )                                                        (30,825 )                                                           (751 )                                                        (93,899 )                                   (92,313 )                                    (1,586 )
  Interest Expense                                                                                                              31,576                     30,825                        751                                        93,899                   92,313                    1,586  
                                                                                                                ------------------------------------------- -------------------- ------------------------------------------- -------------------- -------------------------------------------                      ------------------------------------------- ------------------------------------------- -------------------------------------------
Net Income                                                                                                            $ --           $ --           $ --                              $ --         $ --         $ --  
                                                                                                                ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ====================         ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Net Income Per Share (Diluted)                                                                                        $ --           $ --           $ --                              $ --         $ --         $ --  
                                                                                                                ======= ============== ==================== ==================== ======= ============== ==================== ==================== ======= ============== ====================                      ======= ============== ==================== ======= ============== ==================== ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                                    AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                             SEGMENT INFORMATION (Continued)
                                                                                                                                                                                                                 (Thousands of Dollars)
                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                     Three Months Ended                                                                                                                                                                       Nine Months Ended
                                                                                                                                                                          June 30,                                                                                                                                                                                June 30,
                                                                                                                                                                         (Unaudited)                                                                                                                                                                             (Unaudited)
                                                                                            --------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                         Increase                                                                                                                                                                                Increase
                                                                                                            2017                                                             2016                                                       (Decrease)                                                 2017                                                           2016                                                          (Decrease)
                                                                                            -------------------------------------                            -------------------------------------                         -------------------------------------                     ---------------------------------                            -------------------------------------                            -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                    
Capital Expenditures:
----------------------------
Exploration and Production                                                                        $  70,719                      (1)(2)                            $  47,269                      (3)                            $  23,450                                             $ 168,545                      (1)(2)                            $ 214,923                      (3)(4)                           $  (46,378 )
Pipeline and Storage                                                                                 16,750                      (1)(2)                               18,325                      (3)                               (1,575 )                                              53,528                      (1)(2)                               76,020                      (3)(4)                              (22,492 )
Gathering                                                                                             9,214                      (1)(2)                                9,192                      (3)                                   22                                                23,705                      (1)(2)                               43,715                      (3)(4)                              (20,010 )
Utility                                                                                              20,116                      (1)(2)                               26,280                      (3)                               (6,164 )                                              56,411                      (1)(2)                               72,288                      (3)(4)                              (15,877 )
Energy Marketing                                                                                          3                                            19                                        (16 )                                                  14                                            28                                           (14 )
                                                                                            ------------------------------------                             ------------------------------------                          ------------------------------------                      --------------------------------                             ------------------------------------                             ------------------------------------
Total Reportable Segments                                                                           116,802                                                          101,085                                                        15,717                                               302,203                                                          406,974                                                         (104,771 )
All Other                                                                                    --                                                   --                                                --                                                    40                                                               37                                                                3
Corporate                                                                                                22                                                               36                                                           (14 )                                                  86                                                              191                                                             (105 )
Eliminations                                                                                            295                                --                                        295                               (482 )                                                 --                                          (482 )
                                                                                            ------------------------------------                             ------------------------------------                          ------------------------------------                      --------------------------------                             ------------------------------------                             ------------------------------------
  Total Capital Expenditures                                                                      $ 117,119                                     $ 101,121                                  $  15,998                          $ 301,847                                     $ 407,202                                    $ (105,355 )
                                                                                            ======= ======= ====================                             ======= ======= ====================                          ======= ======= ====================                      === ======= ====================                             ======= ======= ====================                             ====== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
(1)   Capital expenditures for the quarter and nine months ended June
                         30, 2017, include accounts payable and accrued liabilities related
                         to capital expenditures of $25.0 million, $10.3 million, $5.2
                         million, and $7.0 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 June 30, 2017,
                         since they represent non-cash investing activities at that date.
                          
(2)                      Capital expenditures for the nine months ended June 30, 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 nine months ended June 30, 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 June 30, 2017.
                          
(3)                      Capital expenditures for the quarter and nine months ended June
                         30, 2016, include accounts payable and accrued liabilities related
                         to capital expenditures of $26.7 million, $7.6 million, $2.8
                         million, and $7.3 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 June 30, 2016,
                         since they represent non-cash investing activities at that date.
                          
(4)                      Capital expenditures for the nine months ended June 30, 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 nine months ended June 30, 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 June 30, 2016.
                          
                                                                      
DEGREE DAYS
--------------------------
                                                                                                                                                                                                             
                                                                                                                                                                                               Percent Colder
                                                                                                                                                                                               (Warmer) Than:
Three Months Ended June 30                                                                Normal                       2017                       2016                      Normal (1)                          Last Year (1)
--------------------------                                                                ------                      -----                      -----                      ----------                      --------------------
                                                                                                                                                                                                             
  Buffalo, NY                                                                                912                        767                        927                          (15.9)                                    (17.3)
  Erie, PA                                                                                   871                        705                        936                          (19.1)                                    (24.7)
                                                                                                                                                                                                             
Nine Months Ended June 30
--------------------------
                                                                                                                                                                                                             
  Buffalo, NY                                                                              6,455                      5,599                      5,567                          (13.3)                                       0.6
  Erie, PA                                                                                 6,023                      5,082                      5,159                          (15.6)                                     (1.5)
                                                                                                                                                                                                             
(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                                                                                                                                    Nine Months Ended
                                                                                                                                                                                                      June 30,                                                                                                                                             June 30,
                                                                                                                                               ----------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                          Increase                                                                                                                                             Increase
                                                                                                                                                            2017                                                2016                                     (Decrease)                                    2017                                                2016                                               (Decrease)
                                                                                                                                               -------------------------------                     -------------------------------                     --------------                     -------------------------------                     -------------------------------                     -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                   
Gas Production/Prices:
----------------------------------------------------------
Production (MMcf)
  Appalachia                                                                                                                                      37,904                                              38,846                                                (942 )                          118,517                                             105,747                                                  12,770
  West Coast                                                                                                                                         733                              763                              (30 )                            2,246                            2,310                                  (64 )
                                                                                                                                               ------------------------------                      ------------------------------                      -------------                      ------------------------------                      ------------------------------                      ----------------------------------
Total Production                                                                                                                                  38,637                           39,609                             (972 )                          120,763                          108,057                               12,706  
                                                                                                                                               ==============================                      ==============================                      =============                      ==============================                      ==============================                      ==================================
                                                                                                                                                                                                                                                                                                                                                                                                   
Average Prices (Per Mcf)
  Appalachia                                                                                                                                     $  2.58                                             $  1.73                                             $  0.85                            $  2.55                                             $  1.84                                                $   0.71
  West Coast                                                                                                                                        3.39                                                2.84                                                0.55                               4.07                                                3.13                                                    0.94
   Weighted Average                                                                                                                                 2.59                                                1.75                                                0.84                               2.58                                                1.87                                                    0.71
   Weighted Average after Hedging                                                                                                                   2.94                                                2.86                                                0.08                               2.96                                                3.00                                                   (0.04 )
                                                                                                                                                                                                                                                                                                                                                                                                   
Oil Production/Prices:
----------------------------------------------------------
Production (Thousands of Barrels)
Appalachia                                                                                                                                             1                                                   6                                                  (5 )                                3                                                  16                                                     (13 )
West Coast                                                                                                                                           669                              722                              (53 )                            2,062                            2,183                                 (121 )
                                                                                                                                               ------------------------------                      ------------------------------                      -------------                      ------------------------------                      ------------------------------                      ----------------------------------
Total Production                                                                                                                                     670                              728                              (58 )                            2,065                            2,199                                 (134 )
                                                                                                                                               ==============================                      ==============================                      =============                      ==============================                      ==============================                      ==================================
                                                                                                                                                                                                                                                                                                                                                                                                   
Average Prices (Per Barrel)
  Appalachia                                                                                                                                     $ 48.34                                             $ 58.28                                             $ (9.94 )                          $ 48.85                                             $ 44.05                                                $   4.80
  West Coast                                                                                                                                       45.63                                               38.89                                                6.74                              45.71                                               34.02                                                   11.69
   Weighted Average                                                                                                                                45.64                                               39.04                                                6.60                              45.76                                               34.10                                                   11.66
   Weighted Average after Hedging                                                                                                                  53.02                                               58.79                                               (5.77 )                            53.58                                               57.22                                                   (3.64 )
                                                                                                                                                                                                                                                                                                                                                                                                   
Total Production (Mmcfe)                                                                                                                          42,657                           43,977                           (1,320 )                          133,153                          121,251                               11,902  
                                                                                                                                               ==============================                      ==============================                      =============                      ==============================                      ==============================                      ==================================
                                                                                                                                                                                                                                                                                                                                                                                                   
Selected Operating Performance Statistics:
----------------------------------------------------------
General & Administrative Expense per Mcfe (1)                                                                                                    $  0.33                                             $  0.38                                             $ (0.05 )                          $  0.33                                             $  0.46                                                $  (0.13 )
Lease Operating and Transportation Expense per Mcfe (1)(2)                                                                                       $  0.95                                             $  0.88                                             $  0.07                            $  0.92                                             $  0.95                                                $  (0.03 )
Depreciation, Depletion & Amortization per Mcfe (1)                                                                                              $  0.64                                             $  0.71                                             $ (0.07 )                          $  0.64                                             $  0.93                                                $  (0.29 )
                                                                                                                                                                                                                                                                                                                                                                                                                 
(1)   Refer to page 15 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 $0.53 per Mcfe
                         for the three months ended June 30, 2017 and June 30, 2016,
                         respectively. Amounts include transportation expense of $0.54 and
                         $0.52 per Mcfe for the nine months ended June 30, 2017 and June 30,
                         2016, respectively.
                          
                                          
                                                                                       NATIONAL FUEL GAS COMPANY
                                                                                           AND SUBSIDIARIES
 
                                                                                EXPLORATION AND PRODUCTION INFORMATION
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          
Hedging Summary for the Remaining Three                                                                           Volume                                                         Average Hedge Price
Months of Fiscal 2017
----------------------------------------                                                                ------------------------                                                 --------------------
Oil Swaps
 Brent                                                                                                      24,000           BBL                                               $ 91.00 / BBL
 NYMEX                                                                                                     396,000           BBL                                               $ 58.34 / BBL
Total                                                                                                      420,000           BBL                                               $ 60.21 / BBL
                                                                                                                                                                                  
Gas Swaps
 NYMEX                                                                                                   9,990,000           MMBTU                                             $ 4.35 / MMBTU
 Dominion Transmission Appalachian (DOM)                                                                   450,000           MMBTU                                             $ 3.82 / MMBTU
   Dawn Ontario (DAWN)                                                                                   3,330,000           MMBTU                                             $ 3.71 / MMBTU
Fixed Price Physical Sales                                                                              17,381,568           MMBTU                                             $ 2.45 / MMBTU
Total                                                                                                   31,151,568           MMBTU                                             $ 3.21 / 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                                                                              42,902,876           MMBTU                                             $ 2.42 / MMBTU
Total                                                                                                   94,052,876           MMBTU                                             $ 2.90 / MMBTU
                                                                                                                                                                                  
Hedging Summary for Fiscal 2019                                                                                   Volume                                                         Average Hedge Price
----------------------------------------                                                                ------------------------                                                 --------------------
Oil Swaps
 NYMEX                                                                                                     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                                                                              32,328,272           MMBTU                                             $ 2.51 / MMBTU
Total                                                                                                   66,588,272           MMBTU                                             $ 2.83 / MMBTU
                                                                                                                                                                                  
Hedging Summary for Fiscal 2020                                                                                   Volume                                                         Average Hedge Price
----------------------------------------                                                                ------------------------                                                 --------------------
Oil Swaps
 NYMEX                                                                                                     168,000           BBL                                               $ 50.08 / BBL
                                                                                                                                                                                  
Gas Swaps
 NYMEX                                                                                                  16,880,000           MMBTU                                             $ 3.07 / MMBTU
 DAWN                                                                                                    7,200,000           MMBTU                                             $ 3.00 / MMBTU
Fixed Price Physical Sales                                                                              38,232,955           MMBTU                                             $ 2.30 / MMBTU
Total                                                                                                   62,312,955           MMBTU                                             $ 2.59 / 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                                                                              38,650,830           MMBTU                                             $ 2.22 / MMBTU
Total                                                                                                   44,090,830           MMBTU                                             $ 2.31 / MMBTU
                                                                                                                                                                                  
Hedging Summary for Fiscal 2022                                                                                   Volume                                                         Average Hedge Price
----------------------------------------                                                                ------------------------                                                 --------------------
                                                                                                                                                                                  
Fixed Price Physical Sales                                                                              35,245,042           MMBTU                                             $ 2.24 / MMBTU
                                                                                                                                                                                  
Hedging Summary for Fiscal 2023                                                                                   Volume                                                         Average Hedge Price
----------------------------------------                                                                ------------------------                                                 --------------------
                                                                                                                                                                                  
Fixed Price Physical Sales                                                                              31,170,734           MMBTU                                             $ 2.26 / MMBTU
                                                                                                                                                                                  
Hedging Summary for Fiscal 2024                                                                                   Volume                                                         Average Hedge Price
----------------------------------------                                                                ------------------------                                                 --------------------
                                                                                                                                                                                  
Fixed Price Physical Sales                                                                              15,499,436           MMBTU                                             $ 2.26 / MMBTU
                                                                                                                                                                                  
                                                                                                                                                                                                                          
                                                                                                                                                                                             NATIONAL FUEL GAS COMPANY
                                                                                                                                                                                                 AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                    
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                      Three Months Ended                                                                                                                                                 Nine Months Ended
                                                                                                                                                                           June 30,                                                                                                                                                          June 30,
                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                    Increase                                                                                                                                                   Increase
                                                                                                                    2017                                                     2016                                                  (Decrease)                                              2017                                              2016                                             (Decrease)
                                                                                                    ------------------------------------                     ------------------------------------                     ------------------------------------                     -----------------------------                     -----------------------------                     --------------------------------
Firm Transportation - Affiliated                                                                            17,734                                                   19,836                                                   (2,102 )                                          92,583                                            87,169                                                5,414
Firm Transportation - Non-Affiliated                                                                       165,717                                                  153,543                                                   12,174                                           495,015                                           470,991                                               24,024
Interruptible Transportation                                                                                 1,060                                 6,354                                (5,294 )                                           5,078                         18,469                           (13,391 )
                                                                                                    -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      ------- --------------------                      ------- --------------------                      ---------- --------------------
                                                                                                           184,511                               179,733                                 4,778                        592,676                        576,629                            16,047  
                                                                                                    ============== ====================                      ============== ====================                      ============== ====================                      ======= ====================                      ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                    
Gathering Volume - (MMcf)
                                                                                                                                                                      Three Months Ended                                                                                                                                                 Nine Months Ended
                                                                                                                                                                           June 30,                                                                                                                                                          June 30,
                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                    Increase                                                                                                                                                   Increase
                                                                                                                    2017                                                     2016                                                  (Decrease)                                              2017                                              2016                                             (Decrease)
                                                                                                    ------------------------------------                     ------------------------------------                     ------------------------------------                     -----------------------------                     -----------------------------                     --------------------------------
Gathered Volume - Affiliated                                                                                48,838                                46,360                                 2,478                        150,005                        119,355                            30,650  
                                                                                                    ============== ====================                      ============== ====================                      ============== ====================                      ======= ====================                      ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                    
Utility Throughput - (MMcf)
                                                                                                                                                                      Three Months Ended                                                                                                                                                 Nine Months Ended
                                                                                                                                                                           June 30,                                                                                                                                                          June 30,
                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                    Increase                                                                                                                                                   Increase
                                                                                                                    2017                                                     2016                                                  (Decrease)                                              2017                                              2016                                             (Decrease)
                                                                                                    ------------------------------------                     ------------------------------------                     ------------------------------------                     -----------------------------                     -----------------------------                     --------------------------------
Retail Sales:
 Residential Sales                                                                                           8,105                                                    9,209                                                   (1,104 )                                          48,817                                            46,828                                                1,989
 Commercial Sales                                                                                            1,170                                                    1,254                                                      (84 )                                           7,373                                             6,770                                                  603
 Industrial Sales                                                                                               48                        --                                    48                            282                            233                                49  
                                                                                                    -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      ------- --------------------                      ------- --------------------                      ---------- --------------------
                                                                                                             9,323                                                   10,463                                                   (1,140 )                                          56,472                                            53,831                                                2,641
Off-System Sales                                                                                    --                                           --                                           --                                             1,295                                             1,243                                                   52
Transportation                                                                                              13,799                                14,857                                (1,058 )                                          60,453                         59,770                               683  
                                                                                                    -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      ------- --------------------                      ------- --------------------                      ---------- --------------------
                                                                                                            23,122                                25,320                                (2,198 )                                         118,220                        114,844                             3,376  
                                                                                                    ============== ====================                      ============== ====================                      ============== ====================                      ======= ====================                      ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                    
Energy Marketing Volume
                                                                                                                                                                      Three Months Ended                                                                                                                                                 Nine Months Ended
                                                                                                                                                                           June 30,                                                                                                                                                          June 30,
                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                    Increase                                                                                                                                                   Increase
                                                                                                                    2017                                                     2016                                                  (Decrease)                                              2017                                              2016                                             (Decrease)
                                                                                                    ------------------------------------                     ------------------------------------                     ------------------------------------                     -----------------------------                     -----------------------------                     --------------------------------
Natural Gas (MMcf)                                                                                           7,722                                 8,537                                  (815 )                                          32,969                         33,800                              (831 )
                                                                                                    ============== ====================                      ============== ====================                      ============== ====================                      ======= ====================                      ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                               

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 nine months ended June 30, 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 nine months ended June 30, 2017 and 2016:

                                                                                                                                                                 
                                                                                                                                              Three Months Ended                                                                                                 Nine Months Ended
                                                                                                                                                   June 30,                                                                                                          June 30,
                                                                                                          -------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                                                          2017                                                    2016                                                    2017                                                      2016
                                                                                                          -------------------------------------                     ---------------------------------                     -------------------------------------                     -------------------------------------
(in thousands)
Reported GAAP Earnings                                                                                          $  59,714                                             $   8,286                                                 $ 237,906                                                $ (328,510 )
  Depreciation, Depletion and Amortization                                                                         55,617                                                58,802                                                   168,812                                                   193,300
  Interest and Other Income                                                                                        (2,223 )                                              (2,083 )                                                  (7,572 )                                                  (9,813 )
  Interest Expense                                                                                                 30,071                                                30,218                                                    89,921                                                    92,201
  Income Taxes                                                                                                     35,792                                                 8,740                                                   145,195                                                  (251,641 )
  Impairment of Oil and Gas Producing                                                                      --                                                82,658                                            --                                                   915,552
  Properties
  Joint Development Agreement Professional                                                                 --                              3,173                         --                                  7,855  
  Fees
                                                                                                          --------------  --------------------                      ----------  --------------------                      --------------  --------------------                      --------------  --------------------
Adjusted EBITDA                                                                                                 $ 178,971                          $ 189,794                              $ 634,262                             $  618,944  
                                                                                                          ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                     
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA                                                                            $  44,163                                             $  48,515                                                 $ 141,279                                                $  152,929
Gathering Adjusted EBITDA                                                                                          23,901                             22,433                                 73,174                                 57,722  
                                                                                                          ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Total Midstream Businesses Adjusted EBITDA                                                                         68,064                                                70,948                                                   214,453                                                   210,651
Exploration and Production Adjusted EBITDA                                                                         89,229                                                97,924                                                   285,675                                                   268,673
Utility Adjusted EBITDA                                                                                            25,322                                                22,900                                                   139,232                                                   138,284
Energy Marketing Adjusted EBITDA                                                                                   (1,017 )                                                (930 )                                                   3,213                                                     6,569
Corporate and All Other Adjusted EBITDA                                                                            (2,627 )                                              (1,048 )                                                  (8,311 )                                                  (5,233 )
                                                                                                          ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Total Adjusted EBITDA                                                                                           $ 178,971                          $ 189,794                              $ 634,262                             $  618,944  
                                                                                                          ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                                     
 
                                                                                                                                                   NATIONAL FUEL GAS COMPANY
                                                                                                                                                       AND SUBSIDIARIES
                                                                                                                                                  NON-GAAP FINANCIAL MEASURES
                                                                                                                                                    SEGMENT ADJUSTED EBITDA
                                                                                                                                                   
                                                                                                                                                    Three Months Ended                                                                                                 Nine Months Ended
                                                                                                                                                         June 30,                                                                                                          June 30,
                                                                                                                -------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
(in thousands)                                                                                                                  2017                                 2016                                                    2017                                   2016
                                                                                                                -------------------------------------                     ---------------------------------                     -------------------------------------                     -------------------------------------
Exploration and Production Segment
------------------------------------------------
Reported GAAP Earnings                                                                                                $  30,123                                             $ (19,165 )                                               $  98,972                                                $ (469,586 )
  Depreciation, Depletion and Amortization                                                                               27,448                                                31,279                                                    85,353                                                   112,586
  Interest and Other Income                                                                                                (217 )                                                 (88 )                                                    (451 )                                                    (781 )
  Interest Expense                                                                                                       13,444                                                13,753                                                    40,270                                                    41,882
  Income Taxes                                                                                                           18,431                                               (13,686 )                                                  61,531                                                  (338,835 )
  Impairment of Oil and Gas Producing Properties                                                                 --                                                82,658                                            --                                                   915,552
  Joint Development Agreement Professional Fees                                                                  --                              3,173                         --                                  7,855  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                                       $  89,229                          $  97,924                              $ 285,675                             $  268,673  
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Pipeline and Storage Segment
------------------------------------------------
Reported GAAP Earnings                                                                                                $  16,031                                             $  17,323                                                 $  54,656                                                $   59,794
  Depreciation, Depletion and Amortization                                                                               10,513                                                11,023                                                    30,651                                                    32,144
  Interest and Other Income                                                                                                (842 )                                                (894 )                                                  (2,928 )                                                  (3,178 )
  Interest Expense                                                                                                        8,489                                                 8,528                                                    25,177                                                    25,017
  Income Taxes                                                                                                            9,972                             12,535                                 33,723                                 39,152  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                                       $  44,163                          $  48,515                              $ 141,279                             $  152,929  
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Gathering Segment
------------------------------------------------
Reported GAAP Earnings                                                                                                $  10,107                                             $   9,473                                                 $  31,373                                                $   21,962
  Depreciation, Depletion and Amortization                                                                                4,131                                                 3,608                                                    12,008                                                    11,407
  Interest and Other Income                                                                                                (288 )                                                 (89 )                                                    (642 )                                                    (191 )
  Interest Expense                                                                                                        2,411                                                 1,794                                                     6,739                                                     6,781
  Income Taxes                                                                                                            7,540                              7,647                                 23,696                                 17,763  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                                       $  23,901                          $  22,433                              $  73,174                             $   57,722  
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Utility Segment
------------------------------------------------
Reported GAAP Earnings                                                                                                $   4,348                                             $   2,179                                                 $  51,103                                                $   52,745
  Depreciation, Depletion and Amortization                                                                               13,086                                                12,234                                                    39,502                                                    35,511
  Interest and Other Income                                                                                                (579 )                                                (460 )                                                    (994 )                                                  (2,070 )
  Interest Expense                                                                                                        7,062                                                 7,192                                                    21,454                                                    21,684
  Income Taxes                                                                                                            1,405                              1,755                                 28,167                                 30,414  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                                       $  25,322                          $  22,900                              $ 139,232                             $  138,284  
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Energy Marketing Segment
------------------------------------------------
Reported GAAP Earnings                                                                                                $    (564 )                                           $    (590 )                                               $   2,122                                                $    4,117
  Depreciation, Depletion and Amortization                                                                                   69                                                    70                                                       210                                                       208
  Interest and Other Income                                                                                                (168 )                                                (165 )                                                    (475 )                                                    (330 )
  Interest Expense                                                                                                           13                                                    11                                                        38                                                        37
  Income Taxes                                                                                                             (367 )                                                (256 )                                                   1,318                                  2,537  
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                                       $  (1,017 )                                           $    (930 )                                               $   3,213                             $    6,569  
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                           
Corporate and All Other
------------------------------------------------
Reported GAAP Earnings                                                                                                $    (331 )                                           $    (934 )                                               $    (320 )                                              $    2,458
  Depreciation, Depletion and Amortization                                                                                  370                                                   588                                                     1,088                                                     1,444
  Interest and Other Income                                                                                                (129 )                                                (387 )                                                  (2,082 )                                                  (3,263 )
  Interest Expense                                                                                                       (1,348 )                                              (1,060 )                                                  (3,757 )                                                  (3,200 )
  Income Taxes                                                                                                           (1,189 )                                                 745                                 (3,240 )                                                  (2,672 )
                                                                                                                ------------------------------------                      --------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                                       $  (2,627 )                                           $  (1,048 )                                               $  (8,311 )                                              $   (5,233 )
                                                                                                                ======= ======= ====================                      === ======= ====================                      ======= ======= ====================                      ====== ======== ====================
                                                                                                                                                                                                                                                                                                           
                                                                                              
                                                                                              NATIONAL FUEL GAS COMPANY
                                                                                                  AND SUBSIDIARIES
                                                                                                                                                                            
                                                                                                                                                                            
Quarter Ended June 30 (unaudited)                                                                                              2017                                                           2016
---------------------------------------------                                                                --------------------------------------                        ---------------------------------------
                                                                                                                                                                            
 Operating Revenues                                                                                              $   348,368,000                             $   335,617,000  
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Net Income Available for Common Stock                                                                           $    59,714,000                             $     8,286,000  
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Earnings Per Common Share:
  Basic                                                                                                          $          0.70                             $          0.10  
                                                                                                             ===== ============= ====================                      ====== ============= ====================
  Diluted                                                                                                        $          0.69                             $          0.10  
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Weighted Average Common Shares:
  Used in Basic Calculation                                                                                           85,422,313                                  84,917,664  
                                                                                                             ========================================                      =========================================
  Used in Diluted Calculation                                                                                         86,064,464                                  85,470,216  
                                                                                                             ========================================                      =========================================
                                                                                                                                                                            
Nine Months Ended June 30 (unaudited)
---------------------------------------------
                                                                                                                                                                            
 Operating Revenues                                                                                              $ 1,292,944,000                             $ 1,159,943,000  
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Net Income (Loss) Available for Common Stock                                                                    $   237,906,000                             $  (328,510,000 )
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Earnings (Loss) Per Common Share:
  Basic                                                                                                          $          2.79                             $         (3.87 )
                                                                                                             ===== ============= ====================                      ====== ============= ====================
  Diluted                                                                                                        $          2.77                             $         (3.87 )
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Weighted Average Common Shares:
  Used in Basic Calculation                                                                                           85,315,154                                  84,791,447  
                                                                                                             ========================================                      =========================================
  Used in Diluted Calculation                                                                                         85,950,742                                  84,791,447  
                                                                                                             ========================================                      =========================================
                                                                                                                                                                            
Twelve Months Ended June 30 (unaudited)
---------------------------------------------
                                                                                                                                                                            
 Operating Revenues                                                                                              $ 1,585,416,000                             $ 1,461,005,000  
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Net Income (Loss) Available for Common Stock                                                                    $   275,459,000                             $  (516,213,000 )
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Earnings (Loss) Per Common Share:
  Basic                                                                                                          $          3.23                             $         (6.09 )
                                                                                                             ===== ============= ====================                      ====== ============= ====================
  Diluted                                                                                                        $          3.21                             $         (6.09 )
                                                                                                             ===== ============= ====================                      ====== ============= ====================
                                                                                                                                                                            
 Weighted Average Common Shares:
  Used in Basic Calculation                                                                                           85,239,850                                  84,735,887  
                                                                                                             ========================================                      =========================================
  Used in Diluted Calculation                                                                                         85,881,424                                  84,735,887  
                                                                                                             ========================================                      =========================================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170803006507r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170803006507/en/

SOURCE: National Fuel Gas Company

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


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