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National Fuel Reports 2012 Earnings

  National Fuel Reports 2012 Earnings

Business Wire

WILLIAMSVILLE, N.Y. -- November 01, 2012

National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today
announced consolidated earnings for the fourth quarter and fiscal year ended
September 30, 2012, of $48.8 million, or $0.58 per share, and $220.1 million,
or $2.63 per share, respectively.

HIGHLIGHTS

  *Operating results before items impacting comparability (“Operating
    Results”) for the fourth quarter were $36.0 million or $0.43 per share.
    This compares to Operating Results of $37.4 million, or $0.45 per share,
    in the prior year’s fourth quarter. Despite a nearly 28% decrease in the
    average price Seneca realized on natural gas production during the
    quarter, Operating Results were only down $0.02 per share due to a 46.1%
    increase in Seneca’s production and higher transportation revenues in the
    Pipeline and Storage segment.
  *Operating Results for the fiscal year were $211.3 million or $2.53 per
    share. This compares to Operating Results of $227.0 million, or $2.71 per
    share, in the prior fiscal year. Current year Operating Results were
    impacted by 21% lower natural gas prices in the Exploration and Production
    segment and weather that was over 21% warmer compared to the prior fiscal
    year in the Utility and Energy Marketing segments. Higher transportation
    revenues in the Pipeline and Storage segment contributed to a 50% increase
    in that segment’s Operating Results.
  *In the Pipeline and Storage segment, fourth quarter earnings were $25.1
    million or $0.30 per share. During the quarter, FERC approved Supply
    Corporation’s rate case settlement. As part of that settlement, Supply
    Corporation eliminated a regulatory liability associated with its
    postretirement benefit plan. This adjustment increased earnings by $12.8
    million. Excluding this item, Operating Results in the Pipeline and
    Storage segment increased $4.8 million, or $0.06 per share, an increase of
    67% compared to the prior year’s fourth quarter. The increase is largely
    driven by the impact of the Line N Expansion and Tioga County Extension
    projects that were placed in service during the first quarter.
  *Seneca’s production of crude oil and natural gas in the current quarter
    was 24.6 billion cubic feet equivalent (“Bcfe”), a 46.1% increase over the
    16.8 Bcfe in the fourth quarter of 2011. Appalachian production increased
    62.9% to 19.6 Bcfe, including 18.0 Bcfe of Marcellus production, an
    increase of 78.2% over the prior year’s fourth quarter. California crude
    oil production increased 4.3%. Total production for fiscal 2012 increased
    23.3% to 83.4 Bcfe, an increase of 15.7 Bcfe.
  *Seneca’s total reserves at September 30, 2012, were 1,246 Bcfe, an
    increase of 311 Bcfe or 33%. Seneca replaced 473% of fiscal 2012
    production.
  *A conference call is scheduled for Friday, November 2, 2012, at 11 a.m.
    Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas
Company, stated: “The fourth quarter was a successful conclusion to a fiscal
year in which each of our major business segments had significant
accomplishments. We continued to execute on our long-term plan to grow the
company and were very pleased with our results.

“In the Pipeline and Storage segment, operating results for the fiscal year
were up an impressive 50 percent on the strength of our recent expansion
projects. At Seneca, annual Marcellus production increased 58 percent as a
result of ongoing success in our major development areas. Crude oil production
grew by 8 percent in California, which, combined with higher realized prices,
contributed to a significant growth in our West Division cash flows. At the
Utility, our employees did an outstanding job controlling expenses, which
helped to offset the impact of the warmest winter on record in our service
territory.

“As we progress into fiscal 2013 and beyond, we believe natural gas is
positioned to play a critical and expanding role in the United States energy
picture. National Fuel, with our diversified business model and strong balance
sheet, is well positioned to capitalize on this opportunity and will remain
focused on delivering long-term value for our shareholders.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended September 30,
2012, of $48.8 million, or $0.58 per share, compared to the prior year’s
fourth quarter earnings of $37.4 million, or $0.45 per share, an increase of
$11.4 million or $0.13 per share. The increase is mainly due to higher
earnings in the Pipeline and Storage and Utility segments, offset by lower
earnings in the Exploration and Production and Energy Marketing segments, and
the All Other category. (Note: All references to earnings per share are to
diluted earnings per share, and all amounts used in the discussion of earnings
and operating results before items impacting comparability (“Operating
Results”) are after tax unless otherwise noted.)

Consolidated earnings for the fiscal year ended September 30, 2012, of $220.1
million, or $2.63 per share, decreased $38.3 million, or $0.46 per share, from
the same period in the prior year, where earnings were $258.4 million or $3.09
per share.

                                                 
                         Three Months               Fiscal Year
                          Ended September 30,        Ended September 30,
                          2012         2011         2012         2011
(in thousands except
per share amounts)
Reported GAAP earnings    $ 48,802      $ 37,356     $ 220,077     $ 258,402
Items impacting
comparability^1:
Eliminate other
postretirement              (12,786 )                  (12,786 )
regulatory liability
Pennsylvania impact fee                                4,034
(pre fiscal 2012)
Gain on sale of
landfill gas electric                                                (31,418 )
generation investments
                                                                
Operating Results         $ 36,016     $ 37,356     $ 211,325    $ 226,984 
                                                                   
Reported GAAP earnings    $ 0.58        $ 0.45       $ 2.63        $ 3.09
per share
Items impacting
comparability^1:
Eliminate other
postretirement              (0.15   )                  (0.15   )
regulatory liability
Pennsylvania impact fee                                0.05
(pre fiscal 2012)
Gain on sale of
landfill gas electric                                                (0.38   )
generation investments
                                                                
Operating Results         $ 0.43       $ 0.45       $ 2.53       $ 2.71    
                                                                   
^1 See discussion of these individual items below.


As outlined in the table above, certain items included in GAAP earnings
impacted the comparability of the Company’s financial results with equivalent
periods in fiscal 2011. Excluding these items, Operating Results for the
current quarter of $36.0 million, or $0.43 per share, decreased $1.3 million,
or $0.02 per share, from the prior year’s fourth quarter where Operating
Results were $37.4 million, or $0.45 per share. Excluding these items,
Operating Results for the fiscal year ended September 30, 2012, of $211.3
million, or $2.53 per share, decreased $15.7 million, or $0.18 per share, from
the prior year, where Operating Results were $227.0 million or $2.71 per
share. Items impacting comparability will be discussed in more detail within
the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a
tabular form at pages 9 through 12 of this report. It may be helpful to refer
to those tables while reviewing this discussion.

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 in California, Appalachia and Kansas. Seneca
completed the sale of its offshore Gulf of Mexico assets in April 2011.

The Exploration and Production segment’s earnings in the fourth quarter of
fiscal 2012 of $22.1 million, or $0.26 per share, decreased $8.7 million, or
$0.11 per share, when compared with the prior year’s fourth quarter.

Overall production of natural gas and crude oil for the fourth quarter of 24.6
Bcfe increased approximately 7.8 Bcfe compared to the prior year’s fourth
quarter. Production from Seneca’s Appalachian properties increased 62.9
percent, due to a 7.9 Bcfe, or 78.2 percent, increase in Marcellus production.
Crude oil production in California increased 4.3 percent due to additional
wells drilled at the Sespe and Midway Sunset fields.

Changes in commodity prices realized after hedging also impacted earnings. The
weighted average natural gas price received by Seneca (after hedging) for the
quarter ended September 30, 2012, was $3.98 per thousand cubic feet (“Mcf”), a
decrease of $1.51 per Mcf compared to the prior year’s fourth quarter. Higher
crude oil prices realized after hedging increased earnings. The weighted
average oil price received by Seneca (after hedging) for the quarter ended
September 30, 2012, was $88.98 per Barrel (“Bbl”), an increase of $6.74 per
Bbl.

Depletion and lease operating expenses (“LOE”) for the current year’s fourth
quarter increased over last year’s fourth quarter due in part to the higher
production activity. On a per unit basis, depletion decreased $0.06 per
thousand cubic feet equivalent (“Mcfe”) due to higher reserves at fiscal year
end. LOE decreased $0.20 per Mcfe due to higher production and lower steam
fuel costs in California. Operating Results were also reduced by higher
property, franchise and other taxes due to the Pennsylvania impact fee (see
discussion below), higher interest expense, due to a higher outstanding debt
balance, and higher state income taxes.

In February 2012, the Commonwealth of Pennsylvania passed legislation that
includes a “natural gas impact fee.” The legislation, which covers essentially
all of Seneca’s Marcellus Shale wells, imposes an annual fee for a period of
15 years on each well drilled. The per well impact fee is adjusted annually
based on three factors: The age of the well, changes in the Consumer Price
Index and the average monthly NYMEX price for natural gas. The fee is
retroactive and applied to wells drilled in the current fiscal year and in all
previous years. The impact fee increased property, franchise and other taxes
in the current year’s fourth quarter by $1.4 million (pre-tax).

The Exploration and Production segment’s earnings of $96.5 million, or $1.15
per share, for the fiscal year ended September 30, 2012, decreased $27.7
million, or $0.33 per share, when compared to the prior fiscal year. The
impact fee, described above, recorded in the current fiscal year was $13.8
million (pre-tax) of which $6.2 million (pre-tax) related to prior fiscal
years and $1.4 million (pre-tax) related to the fourth quarter of fiscal 2012.
Excluding the $6.2 million impact fee related to prior fiscal years, the
Exploration and Production segment’s Operating Results for the fiscal year
ended September 30, 2012, were $100.5 million, or $1.20 per share, a decrease
of $23.7 million, or $0.28 per share, when compared with the prior fiscal
year.

Overall production for the fiscal year ended September 30, 2012, increased
23.3 percent. Excluding fiscal 2011 Gulf of Mexico production of 5.2 Bcfe due
to the April 2011 sale of Seneca’s offshore Gulf of Mexico assets, production
increased 33.4 percent or 20.9 Bcfe. Production from Seneca’s Appalachian
properties increased 45.4 percent, mainly due to a 20.5 Bcfe or 58.1 percent
increase in Marcellus production. Crude oil production in California increased
7.8 percent.

Changes in commodity prices realized after hedging also impacted earnings. The
weighted average natural gas price received by Seneca (after hedging) for the
fiscal year ended September 30, 2012, was $4.27 per Mcf, a decrease of $1.12
per Mcf. Higher crude oil prices realized after hedging increased earnings.
The weighted average crude oil price received by Seneca (after hedging) for
the fiscal year ended September 30, 2012, was $90.88 per Bbl, an increase of
$9.75 per Bbl.

Depletion, LOE and general and administrative expenses (“G&A”) for the fiscal
year ended September 30, 2012, increased compared to the prior fiscal year due
primarily to the higher production activity discussed above. On a per unit
basis, depletion increased $0.08 per Mcfe, LOE decreased $0.08 per Mcfe and
G&A decreased $0.08 per Mcfe. Operating results were also reduced by higher
interest expense, due to a higher outstanding debt balance and higher state
income taxes.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by National Fuel
Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. 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 western Pennsylvania.

The Pipeline and Storage segment’s earnings of $25.1 million, or $0.30 per
share, for the quarter ended September 30, 2012, increased $17.6 million, or
$0.21 per share, when compared with the same period in the prior fiscal year.
During the quarter, FERC approved Supply Corporation’s rate case settlement
which provided for, among other things, an increase in base tariff rates,
lower depreciation rates and implementation of a fuel tracker for retained gas
volumes. As part of that settlement, Supply Corporation eliminated a
regulatory liability associated with its postretirement benefit plan. This
adjustment increased earnings by $12.8 million.

Excluding this item, Operating Results in the Pipeline and Storage segment,
increased $4.8 million or $0.06 per share. The increase in earnings is mainly
due to higher transportation revenues from the Tioga County Extension and Line
N Expansion projects, which were completed and placed in service in the
current fiscal year’s first quarter. The increase in base tariff rates, lower
depreciation expense and lower operating expenses also increased Operating
Results. Operating Results were reduced by lower efficiency gas revenues as a
result of adopting a fuel tracker for retained gas volumes, which eliminates
revenue recognition for efficiency gas.

The Pipeline and Storage segment’s earnings of $60.5 million, or $0.72 per
share, for the fiscal year ended September 30, 2012, increased $29.0 million,
or $0.34 per share, when compared with the same period in the prior fiscal
year. Excluding the $12.8 million adjustment of the regulatory liability
associated with Supply Corporation’s postretirement benefit plan discussed
above, Operating Results increased $16.2 million or $0.19 per share. The
increase was mostly due to higher transportation revenues from the Tioga
County Extension and Line N Expansion projects, higher base tariff rates, and
lower operating expenses noted above. Earnings were reduced by lower
efficiency gas revenues due to the decline in natural gas prices and
implementation of the fuel tracker noted above.

Utility Segment

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

The Utility segment’s earnings of $5.9 million, or $0.07 per share, for the
quarter ended September 30, 2012, increased $5.0 million, or $0.06 per share,
when compared with the same period in the prior fiscal year. The increase was
due to a regulatory true-up adjustment in the prior year’s fourth quarter that
did not recur in the current year’s fourth quarter and lower income taxes.

The Utility segment’s earnings of $58.6 million, or $0.70 per share, for the
fiscal year ended September 30, 2012, decreased from earnings of $63.2
million, or $0.76 per share, for the fiscal year ended September 30, 2011.
Warmer weather in Pennsylvania was the main reason for the decrease in
earnings. Temperatures in Pennsylvania were 21.4 percent warmer in the fiscal
year ended September 30, 2012, than the prior fiscal year. Higher depreciation
expense also reduced earnings. The decrease in earnings was partially offset
by the impact of certain regulatory adjustments in the prior fiscal year that
did not recur, lower interest expense on deferred gas costs and lower income
tax expense.

Energy Marketing Segment

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

The Energy Marketing segment's loss for the quarter ended September 30, 2012,
of $0.5 million, or $0.01 per share, increased $0.2 million, from the prior
year's fourth quarter loss of $0.3 million or less than $0.01 per share. The
increased loss in the current year's fourth quarter was primarily due to lower
average margins.

Earnings for the fiscal year ended September 30, 2012, of $4.2 million, or
$0.05 per share, decreased $4.6 million, or $0.06 per share, from the prior
fiscal year, mainly due to a decrease in average margins and lower retail
sales volumes. The decrease in average margins for the fiscal year ended
September 30, 2012, was largely driven by a lower benefit derived from the
Energy Marketing segment's contracts for storage capacity. The decrease in
retail sales volumes was primarily a result of warmer weather.

Corporate and All Other

The Corporate and All Other category includes the following active, wholly
owned subsidiaries of the Company: National Fuel Gas Midstream Corporation
(“Midstream”), formed to build, own and operate natural gas processing and
pipeline gathering facilities in the Appalachian region; and Seneca’s
Northeast division, which markets high quality hardwoods from Appalachian land
holdings.

For the quarter ended September 30, 2012, the Corporate and All Other category
had a loss of $3.7 million, or $0.04 per share, compared to a loss of $1.4
million, or $0.02 per share, in the prior year’s fourth quarter. The increased
loss is mainly due to higher income taxes, lower income from unconsolidated
subsidiaries and higher Corporate operating expenses. Higher earnings from
Midstream’s pipeline gathering and natural gas processing operations partially
offset the higher loss.

Earnings in the Corporate and All Other category for the fiscal year ended
September 30, 2012, were $0.3 million, or $0.01 per share, a decrease of $30.4
million, or $0.35 per share, when compared to the earnings for the fiscal year
ended September 30, 2011. The comparability of the results for the fiscal
years ended September 30, 2012, and September 30, 2011, was impacted by a
$31.4 million gain realized on the February 2011 Horizon Power, Inc. sale of
its interest in certain entities that owned electric generation assets powered
by landfill gas.

Excluding this item, Operating Results of $0.3 million, or $0.01 per share,
for the fiscal year ended September 30, 2012, increased from a loss of $0.7
million or $0.02 per share in the prior fiscal year. The increase in Operating
Results is mainly due to higher earnings from Midstream’s pipeline gathering
and natural gas processing operations.

EARNINGS GUIDANCE

The Company is increasing its GAAP earnings guidance for fiscal 2013 to a
range of $2.65 to $2.95 per share (the previous range had been $2.45 to
$2.75). This updated guidance reflects Seneca’s updated production forecast
for fiscal 2013, which is now a range of 95 to 107 Bcfe (the previous range
had been 92 to 105 Bcfe), and an assumed flat NYMEX price of $3.50 per MMBTU
for natural gas and $85 per Bbl for crude oil. It also assumes Seneca’s per
unit DD&A expense is in a range of $2.10 to $2.25 per Mcfe (the previous range
had been $2.30 to $2.40).

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 2, 2012, at 11
a.m. (Eastern Time) to discuss this announcement. There are two ways to access
this call. For those with Internet access, visit the investor relations page
at National Fuel’s website at investor.nationalfuelgas.com. For those without
Internet access, access is also provided by dialing (toll-free)
1-800-299-6183, and using the passcode “95413478.” For those unable to listen
to the live conference call, a replay will be available at approximately 2
p.m. (Eastern Time) at the same website link and by phone at (toll-free)
1-888-286-8010 using passcode “80430237.” Both the webcast and telephonic
replay will be available until the close of business on Friday, November 9,
2012.

National Fuel is an integrated energy company with $5.9 billion in assets
comprised of the following four operating segments: Exploration and
Production, Pipeline and Storage, Utility, and Energy Marketing. Additional
information about National Fuel is available at:  www.nationalfuelgas.com or
through its investor information service at 1-800-334-2188.

Certain statements contained herein, including those regarding estimated
future earnings, and statements that are identified by the use of the words
“anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar
expressions, are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or outcomes to
differ materially from those expressed in the forward-looking statements. The
Company’s expectations, beliefs and projections contained herein are expressed
in good faith and are believed to have a reasonable basis, but there can be no
assurance that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following are
important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements: factors affecting the
Company’s ability to successfully identify, drill for and produce economically
viable natural gas and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling operations,
insufficient gathering, processing and transportation capacity, the need to
obtain governmental approvals and permits, and compliance with environmental
laws and regulations; changes in laws, regulations or judicial interpretations
to which the Company is subject, including those involving derivatives, taxes,
safety, employment, climate change, other environmental matters, real
property, and exploration and production activities such as hydraulic
fracturing; changes in the price of natural gas or oil; impairments under the
SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of
oil and gas reserve estimates; significant differences between the Company’s
projected and actual production levels for natural gas or oil; changes in
demographic patterns and weather conditions; changes in the availability,
price or accounting treatment of derivative financial instruments;
governmental/regulatory actions, initiatives and proceedings, including those
involving rate cases (which address, among other things, allowed rates of
return, rate design and retained natural gas), environmental/safety
requirements, affiliate relationships, industry structure, and franchise
renewal; 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; financial and economic
conditions, including the availability of credit, and occurrences affecting
the Company’s ability to obtain financing on acceptable terms for working
capital, capital expenditures and other investments, including any downgrades
in the Company’s credit ratings and changes in interest rates and other
capital market conditions; changes in economic conditions, including global,
national or regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services; the
creditworthiness or performance of the Company’s key suppliers, customers and
counterparties; economic disruptions or uninsured losses resulting from major
accidents, fires, severe weather, natural disasters, terrorist activities,
acts of war, cyber attacks or pest infestation; changes in price differential
between similar quantities of natural gas at different geographic locations,
and the effect of such changes on the demand for pipeline transportation
capacity to or from such locations; other changes in price differentials
between similar quantities of oil or natural gas having different quality,
heating value, geographic location or delivery date; significant differences
between the Company’s projected and actual capital expenditures and operating
expenses; changes in laws, actuarial assumptions, the interest rate
environment and the return on plan/trust assets related to the Company’s
pension and other post-retirement benefits, which can affect future funding
obligations and costs and plan liabilities; the cost and effects of legal and
administrative claims against the Company or activist shareholder campaigns to
effect changes at the Company; increasing health care costs and the resulting
effect on health insurance premiums and on the obligation to provide other
post-retirement benefits; or increasing costs of insurance, changes in
coverage and the ability to obtain insurance. The Company disclaims any
obligation to update any forward-looking statements to reflect events or
circumstances after the date thereof.

Page 9
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2012
                                                                           
                    Exploration   Pipeline &             Energy      Corporate
                    &                                                /
(Thousands of       Production   Storage     Utility  Marketing  All Other   Consolidated*
Dollars)
                                                                                  
Fourth quarter
2011 GAAP           $ 30,734      $ 7,479      $ 829     $  (321 )   $ (1,365 )   $  37,356
earnings
                                                                                  
Drivers of
operating results
Higher (lower)        3,091                                                          3,091
crude oil prices
Higher (lower)
natural gas           (20,028 )                                                      (20,028  )
prices
Higher (lower)
natural gas           27,112                                                         27,112
production
Higher (lower)
crude oil             1,345                                                          1,345
production
Lower (higher)
lease operating       (2,617  )                                                      (2,617   )
expenses
Lower (higher)
depreciation /        (9,862  )     542                                (601   )      (9,921   )
depletion
Higher (lower)
processing plant      (852    )                                                      (852     )
revenues
                                                                                  
Higher (lower)
transportation                      6,635                                            6,635
and storage
revenues
Higher (lower)
efficiency gas                      (1,624 )                                         (1,624   )
revenues
Higher (lower)
gathering and                                                          1,843         1,843
processing
revenues
Lower (higher)
operating             951           688          241                   (753   )      1,127
expenses
Lower (higher)
property,             (1,351  )                                                      (1,351   )
franchise and
other taxes
                                                                                  
Regulatory
true-up                                          1,666                               1,666
adjustments
                                                                                  
Higher (lower)
income from                                                            (749   )      (749     )
unconsolidated
subsidiaries
                                                                                  
Higher (lower)                                              (128 )                   (128     )
margins
                                                                                  
Higher (lower)                                   327                                 327
interest income
Lower (higher)        (2,991  )                                                      (2,991   )
interest expense
                                                                                  
Lower (higher)
income tax            (3,520  )     (1,138 )     2,547                 (2,623 )      (4,734   )
expense/effective
tax rate
                                                                                  
All other /          64         (269   )   256      (44  )   502        509      
rounding
                                                                                  
Fourth quarter
2012 operating        22,076        12,313       5,866      (493 )     (3,746 )      36,016
results
Items impacting
comparability:
Elimination of
other
post-retirement                  12,786                                  12,786   
regulatory
liability
Fourth quarter
2012 GAAP           $ 22,076    $ 25,099   $ 5,866  $  (493 )  $ (3,746 )  $  48,802   
earnings
                                                                                  
^* Amounts do not reflect intercompany eliminations


Page 10
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2012

                   Exploration  Pipeline            Energy     Corporate 
                    &             &                                 /
                    Production   Storage    Utility  Marketing  All Other  Consolidated*
                                                                                
Fourth quarter
2011 GAAP           $  0.37       $ 0.09      $  0.01   $ -         $ (0.02 )   $   0.45
earnings
                                                                                
Drivers of
operating results
Higher (lower)         0.04                                                         0.04
crude oil prices
Higher (lower)
natural gas            (0.24  )                                                     (0.24  )
prices
Higher (lower)
natural gas            0.32                                                         0.32
production
Higher (lower)
crude oil              0.02                                                         0.02
production
Lower (higher)
lease operating        (0.03  )                                                     (0.03  )
expenses
Lower (higher)
depreciation /         (0.12  )     0.01                              (0.01 )       (0.12  )
depletion
Higher (lower)
processing plant       (0.01  )                                                     (0.01  )
revenues
                                                                                
Higher (lower)
transportation                      0.08                                            0.08
and storage
revenues
Higher (lower)
efficiency gas                      (0.02 )                                         (0.02  )
revenues
Higher (lower)
gathering and                                                         0.02          0.02
processing
revenues
Lower (higher)
operating              0.01         0.01         -                    (0.01 )       0.01
expenses
Lower (higher)
property,              (0.02  )                                                     (0.02  )
franchise and
other taxes
                                                                                
Regulatory
true-up                                          0.02                               0.02
adjustments
                                                                                
Higher (lower)
income from                                                           (0.01 )       (0.01  )
unconsolidated
subsidiaries
                                                                                
Higher (lower)                                            -                         -
margins
                                                                                
Higher (lower)                                   -                                  -
interest income
Lower (higher)         (0.04  )                                                     (0.04  )
interest expense
                                                                                
Lower (higher)
income tax             (0.04  )     (0.01 )      0.03                 (0.03 )       (0.05  )
expense/effective
tax rate
                                                                                
All other /           -         (0.01 )    0.01   (0.01 )   0.02       0.01   
rounding
                                                                                
Fourth quarter
2012 operating         0.26         0.15         0.07     (0.01 )     (0.04 )       0.43
results
Items impacting
comparability:
Elimination of
other
post-retirement                  0.15                                   0.15   
regulatory
liability
Fourth quarter
2012 GAAP           $  0.26     $ 0.30    $  0.07  $ (0.01 )  $ (0.04 )  $   0.58   
earnings
                                                                                
^* Amounts do not reflect intercompany eliminations



Page 11
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
YEAR ENDED SEPTEMBER 30, 2012
                                                                                 
                    Exploration   Pipeline &                 Energy       Corporate /
                    &
(Thousands of       Production   Storage     Utility      Marketing   All Other    Consolidated**
Dollars)
                                                                                        
Fiscal 2011 GAAP    $ 124,189     $ 31,515     $ 63,228      $ 8,801      $ 30,669      $  258,402
earnings
Items impacting
comparability:
Gain on sale of
unconsolidated                                                     (31,418 )    (31,418  )
subsidiaries
Fiscal 2011           124,189       31,515       63,228        8,801        (749    )      226,984
operating results
                                                                                        
Drivers of
operating results
Higher (lower)
Appalachian and       19,156                                                               19,156
West Coast crude
oil prices
Higher (lower)
Appalachian and
West Coast            (47,684 )                                                            (47,684  )
natural gas
prices
Higher (lower)
Appalachian and
West Coast            68,921                                                               68,921
natural gas
production
Higher (lower)
Appalachian and       10,325                                                               10,325
West Coast crude
oil production
Lower Gulf Coast
natural gas and       (25,218 )                                                            (25,218  )
crude oil
revenues
Lower (higher)
lease operating       (6,572  )                                                            (6,572   )
expenses
Lower (higher)
depreciation /        (26,532 )     (595   )     (1,267  )                  (830    )      (29,224  )
depletion
                                                                                        
Higher (lower)
transportation                      20,342                                                 20,342
and storage
revenues
Higher (lower)
efficiency gas                      (6,055 )                                               (6,055   )
revenues
Higher (lower)
gathering and                                                               4,046          4,046
processing
revenues
Lower (higher)        (2,685  )     2,703        272                                       290
operating costs
Lower (higher)
property,             (3,403  )     (358   )     913                        606            (2,242   )
franchise and
other taxes
                                                                                        
Warmer weather                                   (10,081 )                                 (10,081  )
Regulatory
true-up                                          2,509                                     2,509
adjustments
                                                                                        
Higher (lower)
income from                                                                 (444    )      (444     )
unconsolidated
subsidiaries
                                                                                        
Higher (lower)                                                 (4,468 )     354            (4,114   )
margins
                                                                                        
Higher AFUDC *                      625                                                    625
Higher (lower)        636                        560                                       1,196
interest income
Lower (higher)        (7,344  )                  820                                       (6,524   )
interest expense
                                                                                        
Lower (higher)
income tax            (3,202  )     (115   )     1,117                      (2,618  )      (4,818   )
expense/effective
tax rate
                                                                                        
All other /          (55     )   (321   )   519        (164   )   (72     )    (93      )
rounding
                                                                                        
Fiscal 2012           100,532       47,741       58,590        4,169        293            211,325
operating results
Items impacting
comparability:
Elimination of
other
post-retirement                     12,786                                                 12,786
regulatory
liability
Pennsylvania         (4,034  )                                                  (4,034   )
impact fee
Fiscal 2012 GAAP    $ 96,498    $ 60,527   $ 58,590    $ 4,169    $ 293       $  220,077  
earnings
                                                                                        
^* AFUDC = Allowance for Funds Used During Construction
^** Amounts do not reflect intercompany eliminations



Page 12
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
YEAR ENDED SEPTEMBER 30, 2012
                                                                           
                    Exploration   Pipeline                Energy      Corporate
                    &             &                                   /
                    Production   Storage    Utility    Marketing  All Other  Consolidated**
                                                                                  
Fiscal 2011 GAAP    $  1.48       $ 0.38      $ 0.76      $ 0.11      $ 0.36      $   3.09
earnings
Items impacting
comparability:
Gain on sale of
unconsolidated                                                 (0.38 )     (0.38   )
subsidiaries
Fiscal 2011            1.48         0.38        0.76        0.11        (0.02 )       2.71
operating results
                                                                                  
Drivers of
operating results
Higher (lower)
Appalachian and        0.23                                                           0.23
West Coast crude
oil prices
Higher (lower)
Appalachian and
West Coast             (0.57  )                                                       (0.57   )
natural gas
prices
Higher (lower)
Appalachian and
West Coast             0.82                                                           0.82
natural gas
production
Higher (lower)
Appalachian and        0.12                                                           0.12
West Coast crude
oil production
Lower Gulf Coast
natural gas and        (0.30  )                                                       (0.30   )
crude oil
revenues
Lower (higher)
lease operating        (0.08  )                                                       (0.08   )
expenses
Lower (higher)
depreciation /         (0.32  )     (0.01 )     (0.02 )                 (0.01 )       (0.36   )
depletion
                                                                                  
Higher (lower)
transportation                      0.24                                              0.24
and storage
revenues
Higher (lower)
efficiency gas                      (0.07 )                                           (0.07   )
revenues
Higher (lower)
gathering and                                                           0.05          0.05
processing
revenues
Lower (higher)         (0.03  )     0.03        -                                     -
operating costs
Lower (higher)
property,              (0.04  )     -           0.01                    0.01          (0.02   )
franchise and
other taxes
                                                                                  
Warmer weather                                  (0.12 )                               (0.12   )
Regulatory
true-up                                         0.03                                  0.03
adjustments
                                                                                  
Higher (lower)
income from                                                             (0.01 )       (0.01   )
unconsolidated
subsidiaries
                                                                                  
Higher (lower)                                              (0.05 )     -             (0.05   )
margins
                                                                                  
Higher AFUDC *                      0.01                                              0.01
Higher (lower)         0.01                     0.01                                  0.02
interest income
Lower (higher)         (0.09  )                 0.01                                  (0.08   )
interest expense
                                                                                  
Lower (higher)
income tax             (0.04  )     -           0.01                    (0.03 )       (0.06   )
expense/effective
tax rate
                                                                                  
All other /           0.01      (0.01 )   0.01     (0.01 )   0.02       0.02    
rounding
                                                                                  
Fiscal 2012            1.20         0.57        0.70        0.05        0.01          2.53
operating results
Items impacting
comparability:
Elimination of
other
post-retirement                     0.15                                              0.15
regulatory
liability
Pennsylvania          (0.05  )                                             (0.05   )
impact fee
Fiscal 2012 GAAP    $  1.15     $ 0.72    $ 0.70    $ 0.05    $ 0.01    $   2.63    
earnings
                                                                                  
^* AFUDC = Allowance for Funds Used During Construction
^** Amounts do not reflect intercompany eliminations



Page 13
                                                               
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                    
(Thousands of
Dollars,
except per
share amounts)
                 Three Months Ended                Twelve Months Ended
                 September 30,                     September 30,
                 (Unaudited)                       (Unaudited)
SUMMARY OF       2012             2011             2012             2011
OPERATIONS
Operating        $ 313,261       $ 286,034       $ 1,626,853     $ 1,778,842  
Revenues
                                                                    
Operating
Expenses:
Purchased Gas      24,700           46,374           415,589          628,732
Operation and      89,541           90,371           401,397          400,519
Maintenance
Property,
Franchise and      20,150           18,188           90,288           81,902
Other Taxes
Depreciation,
Depletion and     71,606         55,910         271,530        226,527    
Amortization
                   205,997          210,843          1,178,804        1,337,680
                                                                    
Operating          107,264          75,191           448,049          441,162
Income
                                                                    
Other Income
(Expense):
Gain on Sale
of                 -                -                -                50,879
Unconsolidated
Subsidiaries
Other Income       1,058            1,817            5,133            5,947
Interest           2,002            1,639            3,689            2,916
Income
Interest
Expense on         (21,408    )     (17,573    )     (82,002    )     (73,567    )
Long-Term Debt
Other Interest    (1,386     )    (541       )    (4,238     )    (4,554     )
Expense
                                                                    
Income Before      87,530           60,533           370,631          422,783
Income Taxes
                                                                    
Income Tax        38,728         23,177         150,554        164,381    
Expense
                                                                    
Net Income
Available for    $ 48,802       $ 37,356        $ 220,077      $ 258,402    
Common Stock
                                                                    
Earnings Per
Common Share:
Basic            $ 0.59           $ 0.45           $ 2.65           $ 3.13
Diluted          $ 0.58           $ 0.45           $ 2.63           $ 3.09
                                                                    
Weighted
Average Common
Shares:
Used in Basic     83,305,793     82,743,764     83,127,844     82,514,015 
Calculation
Used in
Diluted           83,855,991     83,715,222     83,739,771     83,670,802 
Calculation
                                                                    

                                                              
Page 14
                                                                 
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                                 
                                                 September 30,   September 30,
(Thousands of Dollars)                          2012           2011
                                                                 
ASSETS
Property, Plant and Equipment                    $ 6,615,813     $ 5,646,918
Less - Accumulated Depreciation, Depletion and    1,876,010    1,646,394 
Amortization
Net Property, Plant and Equipment                 4,739,803    4,000,524 
                                                                 
Current Assets:
Cash and Temporary Cash Investments                74,494          80,428
Hedging Collateral Deposits                        364             19,701
Receivables - Net                                  115,818         131,885
Unbilled Utility Revenue                           19,652          17,284
Gas Stored Underground                             49,795          54,325
Materials and Supplies - at average cost           28,577          27,932
Other Current Assets                               56,121          64,923
Deferred Income Taxes                             10,755       15,423    
Total Current Assets                              355,576      411,901   
                                                                 
Other Assets:
Recoverable Future Taxes                           150,941         144,377
Unamortized Debt Expense                           13,409          10,571
Other Regulatory Assets                            549,702         484,397
Deferred Charges                                   7,591           5,552
Other Investments                                  86,774          79,365
Goodwill                                           5,476           5,476
Fair Value of Derivative Financial Instruments     27,616          76,085
Other                                             1,105        2,836     
Total Other Assets                                842,614      808,659   
Total Assets                                     $ 5,937,993   $ 5,221,084 
                                                                 
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized -
200,000,000 Shares; Issued and Outstanding -     $ 83,330        $ 82,813
83,330,140 Shares and 82,812,677 Shares,
Respectively
Paid in Capital                                    669,501         650,749
Earnings Reinvested in the Business               1,306,284    1,206,022 
Total Common Shareholders' Equity Before Items     2,059,115       1,939,584
of Other Comprehensive Loss
Accumulated Other Comprehensive Loss              (99,020   )   (47,699   )
Total Comprehensive Shareholders' Equity           1,960,095       1,891,885
Long-Term Debt, Net of Current Portion            1,149,000    899,000   
Total Capitalization                              3,109,095    2,790,885 
                                                                 
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper        171,000         40,000
Current Portion of Long-Term Debt                  250,000         150,000
Accounts Payable                                   87,985          126,709
Amounts Payable to Customers                       19,964          15,519
Dividends Payable                                  30,416          29,399
Interest Payable on Long-Term Debt                 29,491          25,512
Customer Advances                                  24,055          19,643
Customer Security Deposits                         17,942          17,321
Other Accruals and Current Liabilities             79,099          108,636
Fair Value of Derivative Financial Instruments    24,527       9,728     
Total Current and Accrued Liabilities             734,479      542,467   
                                                                 
Deferred Credits:
Deferred Income Taxes                              1,065,757       955,384
Taxes Refundable to Customers                      66,392          65,543
Unamortized Investment Tax Credit                  2,005           2,586
Cost of Removal Regulatory Liability               139,611         135,940
Other Regulatory Liabilities                       23,864          17,177
Pension and Other Post-Retirement Liabilities      516,197         481,520
Asset Retirement Obligations                       119,246         75,731
Other Deferred Credits                            161,347      153,851   
Total Deferred Credits                            2,094,419    1,887,732 
Commitments and Contingencies                     -            -         
Total Capitalization and Liabilities             $ 5,937,993   $ 5,221,084 
                                                                 

                                             
Page 15
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                             
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                               
                                               Twelve Months Ended
                                               September 30,
(Thousands of Dollars)                         2012           2011      
                                                               
Operating Activities:
Net Income Available for Common Stock          $ 220,077         $ 258,402
Adjustments to Reconcile Net Income to Net
Cash
Provided by Operating Activities:
Gain on Sale of Unconsolidated Subsidiaries      -                 (50,879   )
Depreciation, Depletion and Amortization         271,530           226,527
Deferred Income Taxes                            144,150           164,251
Excess Tax Costs (Benefits) Associated with      (985        )     1,224
Stock-Based Compensation Awards
Elimination of Other Post-Retirement             (21,672     )     -
Regulatory Liability
Other                                            12,952            15,651
Change in:
Hedging Collateral Deposits                      19,337            (8,567    )
Receivables and Unbilled Utility Revenue         13,859            3,887
Gas Stored Underground and Materials and         5,405             (9,934    )
Supplies
Other Current Assets                             9,789             83,245
Accounts Payable                                 (6,570      )     896
Amounts Payable to Customers                     4,445             (22,590   )
Customer Advances                                4,412             (7,995    )
Customer Security Deposits                       621               (999      )
Other Accruals and Current Liabilities           10,633            242
Other Assets                                     (13,584     )     15,259
Other Liabilities                              (5,187      )   (27,470   )
Net Cash Provided by Operating Activities     $ 669,212       $ 641,150   
                                                                 
Investing Activities:
Capital Expenditures                             ($1,045,209 )     ($801,476 )
Net Proceeds from Sale of Unconsolidated         -                 59,365
Subsidiaries
Net Proceeds from Sale of Oil and Gas            -                 63,501
Producing Properties
Other                                          446            (2,908    )
Net Cash Used in Investing Activities          ($1,044,763 )   ($681,518 )
                                                                 
Financing Activities:
Changes in Notes Payable to Banks and          $ 131,000         $ 40,000
Commercial Paper
Excess Tax Benefits (Costs) Associated with      985               (1,224    )
Stock-Based Compensation Awards
Reduction of Long-Term Debt                      (150,000    )     (200,000  )
Net Proceeds From Issuance of Long-Term Debt     496,085           -
Dividends Paid on Common Stock                   (118,798    )     (114,559  )
Net Proceeds From Issuance (Repurchase) of     10,345         (592      )
Common Stock
Net Cash Provided by (Used in) Financing      $ 369,617        ($276,375 )
Activities
Net Decrease in Cash and Temporary
Cash Investments                                 (5,934      )     (316,743  )
Cash and Temporary Cash Investments
at Beginning of Period                         80,428         397,171   
Cash and Temporary Cash Investments
at September 30                               $ 74,494        $ 80,428    
                                                                             

                                                                                 
Page 16
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                                          
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                                          
                 Three Months Ended                           Twelve Months Ended
(Thousands of
Dollars,         September 30,                                September 30,
except per
share amounts)
EXPLORATION
AND PRODUCTION   2012         2011         Variance         2012         2011         Variance
SEGMENT
Operating        $ 146,732   $ 130,463   $ 16,269        $ 558,180   $ 519,035   $ 39,145  
Revenues
                                                                                          
Operating
Expenses:
Operation and
Maintenance:
General and
Administrative     12,540        14,174        (1,634 )         53,792        49,504        4,288
Expense
Lease
Operating          23,540        19,514        4,026            83,361        73,250        10,111
Expense
All Other
Operation and      1,620         1,450         170              6,485         6,645         (160    )
Maintenance
Expense
Property,
Franchise and      4,622         2,544         2,078            23,620        12,179        11,441
Other Taxes
Depreciation,
Depletion and     51,363     36,191     15,172         187,624    146,806    40,818  
Amortization
                  93,685     73,873     19,812         354,882    288,384    66,498  
                                                                                          
Operating          53,047        56,590        (3,543 )         203,298       230,651       (27,353 )
Income
                                                                                          
Other Income
(Expense):
Interest           423           (16     )     439              1,493         (27     )     1,520
Income
Other Income       -             -             -                -             1             (1      )
Other Interest    (8,379  )   (3,577  )   (4,802 )        (29,243 )   (17,402 )   (11,841 )
Expense
                                                                                          
Income Before      45,091        52,997        (7,906 )         175,548       213,223       (37,675 )
Income Taxes
Income Tax        23,015     22,263     752            79,050     89,034     (9,984  )
Expense
Net Income       $ 22,076    $ 30,734    $ (8,658 )       $ 96,498    $ 124,189   $ (27,691 )
                                                                                          
Net Income Per
Share            $ 0.26      $ 0.37      $ (0.11  )       $ 1.15      $ 1.48      $ (0.33   )
(Diluted)
                                                                                          
                                                                                          
                                                                                          
                                                                                          
                                                                                          
                 Three Months Ended                           Twelve Months Ended
                 September 30,                                September 30,
PIPELINE AND
STORAGE          2012         2011         Variance         2012         2011         Variance
SEGMENT
Revenues from
External         $ 58,336      $ 30,956      $ 27,380         $ 172,312     $ 134,071     $ 38,241
Customers
Intersegment      22,529     20,200     2,329          86,963     81,037     5,926   
Revenues
Total
Operating         80,865     51,156     29,709         259,275    215,108    44,167  
Revenues
                                                                                          
Operating
Expenses:
Purchased Gas      480           26            454              674           12            662
Operation and      19,868        20,927        (1,059 )         78,397        82,555        (4,158  )
Maintenance
Property,
Franchise and      5,386         5,287         99               21,618        21,067        551
Other Taxes
Depreciation,
Depletion and     8,636      9,470      (834   )        38,182     37,266     916     
Amortization
                  34,370     35,710     (1,340 )        138,871    140,900    (2,029  )
                                                                                          
Operating          46,495        15,446        31,049           120,404       74,208        46,196
Income
                                                                                          
Other Income
(Expense):
Interest           61            73            (12    )         199           324           (125    )
Income
Other Income       1,151         1,238         (87    )         3,182         2,574         608
Other Interest    (6,324  )   (6,233  )   (91    )        (25,603 )   (25,737 )   134     
Expense
                                                                                          
Income Before      41,383        10,524        30,859           98,182        51,369        46,813
Income Taxes
Income Tax        16,284     3,045      13,239         37,655     19,854     17,801  
Expense
Net Income       $ 25,099    $ 7,479     $ 17,620        $ 60,527    $ 31,515    $ 29,012  
                                                                                          
Net Income Per
Share            $ 0.30      $ 0.09      $ 0.21          $ 0.72      $ 0.38      $ 0.34    
(Diluted)
                                                                                          

                                                                               
Page 17
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                                        
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                                        
                Three Months Ended                          Twelve Months Ended
(Thousands of
Dollars,
except per      September 30,                               September 30,
share
amounts)
UTILITY         2012        2011        Variance          2012         2011         Variance
SEGMENT
Revenues from
External        $ 81,682     $ 85,051     $ (3,369  )       $ 704,518     $ 835,853     $ (131,335 )
Customers
Intersegment     1,961     1,962     (1      )        14,604     16,642     (2,038   )
Revenues
Total
Operating        83,643    87,013    (3,370  )        719,122    852,495    (133,373 )
Revenues
                                                                                        
Operating
Expenses:
Purchased Gas     23,448       30,399       (6,951  )         340,325       460,115       (119,790 )
Operation and     32,237       32,708       (471    )         176,938       179,258       (2,320   )
Maintenance
Property,
Franchise and     9,246        9,650        (404    )         41,873        44,582        (2,709   )
Other Taxes
Depreciation,
Depletion and    10,254    9,822     432             42,757     40,808     1,949    
Amortization
                 75,185    82,579    (7,394  )        601,893    724,763    (122,870 )
                                                                                        
Operating         8,458        4,434        4,024             117,229       127,732       (10,503  )
Income
                                                                                        
Other Income
(Expense):
Interest          1,945        1,564        381               2,765         2,049         716
Income
Other Income      216          315          (99     )         887           1,212         (325     )
Other
Interest         (8,671 )   (8,193 )   (478    )        (33,181 )   (34,440 )   1,259    
Expense
                                                                                        
Income (Loss)
Before Income     1,948        (1,880 )     3,828             87,700        96,553        (8,853   )
Taxes
Income Tax
Expense          (3,918 )   (2,709 )   (1,209  )        29,110     33,325     (4,215   )
(Benefit)
Net Income      $ 5,866    $ 829      $ 5,037          $ 58,590    $ 63,228    $ (4,638   )
                                                                                        
Net Income
Per Share       $ 0.07     $ 0.01     $ 0.06           $ 0.70      $ 0.76      $ (0.06    )
(Diluted)
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                Three Months Ended                          Twelve Months Ended
                September 30,                               September 30,
ENERGY
MARKETING       2012        2011        Variance          2012         2011         Variance
SEGMENT
Revenues from
External        $ 24,757     $ 37,827     $ (13,070 )       $ 186,579     $ 284,546     $ (97,967  )
Customers
Intersegment     290       263       27              1,425      420        1,005    
Revenues
Total
Operating        25,047    38,090    (13,043 )        188,004    284,966    (96,962  )
Revenues
                                                                                        
Operating
Expenses:
Purchased Gas     25,130       37,976       (12,846 )         175,605       265,692       (90,087  )
Operation and     1,454        1,497        (43     )         6,373         6,050         323
Maintenance
Property,
Franchise and     22           12           10                81            46            35
Other Taxes
Depreciation,
Depletion and    21        19        2               90         47         43       
Amortization
                 26,627    39,504    (12,877 )        182,149    271,835    (89,686  )
                                                                                        
Operating         (1,580 )     (1,414 )     (166    )         5,855         13,131        (7,276   )
Income (Loss)
                                                                                        
Other Income
(Expense):
Interest          62           32           30                188           104           84
Income
Other Income      12           15           (3      )         100           75            25
Other
Interest         (22    )   (5     )   (17     )        (41     )   (20     )   (21      )
Expense
                                                                                        
Income (Loss)
Before Income     (1,528 )     (1,372 )     (156    )         6,102         13,290        (7,188   )
Taxes
Income Tax
Expense          (1,035 )   (1,051 )   16              1,933      4,489      (2,556   )
(Benefit)
Net Income      $ (493   )  $ (321   )  $ (172    )       $ 4,169     $ 8,801     $ (4,632   )
(Loss)
                                                                                        
Net Income
(Loss) Per      $ (0.01  )  $ -        $ (0.01   )       $ 0.05      $ 0.11      $ (0.06    )
Share
(Diluted)
                                                                                                   


Page 18
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                             
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                                      
                 Three Months Ended                         Twelve Months Ended
(Thousands of
Dollars,         September 30,                              September 30,
except per
share amounts)
ALL OTHER        2012        2011        Variance         2012        2011        Variance
Revenues from
External         $ 1,523      $ 1,507      $ 16             $ 4,307      $ 4,401      $ (94     )
Customers
Intersegment      5,943     2,990     2,953          16,771    10,017    6,754   
Revenues
Total
Operating         7,466     4,497     2,969          21,078    14,418    6,660   
Revenues
                                                                                      
Operating
Expenses:
Purchased Gas      -            -            -                -            48           (48     )
Operation and      1,226        784          442              4,020        3,914        106
Maintenance
Property,
Franchise and      327          146          181              896          637          259
Other Taxes
Depreciation,
Depletion and     1,132     210       922            2,091     840       1,251   
Amortization
                  2,685     1,140     1,545          7,007     5,439     1,568   
                                                                                      
Operating          4,781        3,357        1,424            14,071       8,979        5,092
Income
                                                                                      
Other Income
(Expense):
Gain on Sale
of                 -            -            -                -            50,879       (50,879 )
Unconsolidated
Subsidiaries
Interest           39           49           (10    )         175          247          (72     )
Income
Other Income       (1,085 )     (60    )     (1,025 )         (1,305 )     (469   )     (836    )
Other Interest    (449   )   (536   )   87             (1,738 )   (2,173 )   435     
Expense
                                                                                      
Income Before      3,286        2,810        476              11,203       57,463       (46,260 )
Income Taxes
Income Tax
Expense           1,976     (1,372 )   3,348          4,335     18,961    (14,626 )
(Benefit)
Net Income       $ 1,310    $ 4,182    $ (2,872 )       $ 6,868    $ 38,502   $ (31,634 )
                                                                                      
Net Income Per
Share            $ 0.02     $ 0.05     $ (0.03  )       $ 0.08     $ 0.46     $ (0.38   )
(Diluted)
                                                                                      

                                                                                                            
Page 19
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                                       
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                                                            
                Three Months Ended                                Twelve Months Ended
(Thousands of
Dollars,
except per      September 30,                                     September 30,
share
amounts)
CORPORATE       2012         2011         Variance              2012          2011          Variance
Revenues from
External        $ 231         $ 230         $ 1                   $ 957          $ 936          $ 21
Customers
Intersegment     1,028      1,028      -                   3,865       3,983       (118    )
Revenues
Total
Operating        1,259      1,258      1                   4,822       4,919       (97     )
Revenues
                                                                                                            
Operating
Expenses:
Operation and     4,449         3,733         716                   14,644         14,307         337
Maintenance
Property,
Franchise and     547           549           (2     )              2,200          3,391          (1,191  )
Other Taxes
Depreciation,
Depletion and    200        198        2                   786         760         26      
Amortization
                 5,196      4,480      716                 17,630      18,458      (828    )
                                                                                                            
Operating         (3,937  )     (3,222  )     (715   )              (12,808  )     (13,539  )     731
Loss
                                                                                                            
Other Income
(Expense):
Interest          22,768        18,737        4,031                 88,337         77,454         10,883
Income
Other Income      764           309           455                   2,269          2,554          (285    )
Interest
Expense on        (21,408 )     (17,573 )     (3,835 )              (82,002  )     (73,567  )     (8,435  )
Long-Term
Debt
Other
Interest         (837    )   (797    )   (40    )             (3,900   )   (2,017   )   (1,883  )
Expense
                                                                                                            
Loss Before       (2,650  )     (2,546  )     (104   )              (8,104   )     (9,115   )     1,011
Income Taxes
Income Tax
Expense          2,406      3,001      (595   )             (1,529   )   (1,282   )   (247    )
(Benefit)
Net Loss        $ (5,056  )  $ (5,547  )  $ 491                $ (6,575   )  $ (7,833   )  $ 1,258   
                                                                                                            
Net Loss Per
Share           $ (0.06   )  $ (0.07   )  $ 0.01               $ (0.07    )  $ (0.10    )  $ 0.03    
(Diluted)
                                                                                                            
                                                                                                            
                                                                                                            
                Three Months Ended                                Twelve Months Ended
                September 30,                                     September 30,
INTERSEGMENT    2012         2011         Variance              2012          2011          Variance
ELIMINATIONS
Intersegment    $ (31,751 )  $ (26,443 )  $ (5,308 )            $ (123,628 )  $ (112,099 )  $ (11,529 )
Revenues
                                                                                                            
Operating
Expenses:
Purchased Gas     (24,358 )     (22,027 )     (2,331 )              (101,015 )     (97,135  )     (3,880  )
Operation and    (7,393  )   (4,416  )   (2,977 )             (22,613  )   (14,964  )   (7,649  )
Maintenance
                 (31,751 )   (26,443 )   (5,308 )             (123,628 )   (112,099 )   (11,529 )
                                                                                                            
Operating         -             -             -                     -              -              -
Income
                                                                                                            
Other Income
(Expense):
Interest          (23,296 )     (18,800 )     (4,496 )              (89,468  )     (77,235  )     (12,233 )
Income
Other
Interest         23,296     18,800     4,496               89,468      77,235      12,233  
Expense
                                                                                                            
                                                           *Story
Net Income      $ -         $ -         $ -           too
                                                           large*

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