National Fuel Reports First Quarter Earnings

  National Fuel Reports First Quarter Earnings

Business Wire

WILLIAMSVILLE, N.Y. -- February 7, 2013

National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today
announced consolidated earnings for the first quarter of its 2013 fiscal year
(the quarter ended December 31, 2012).

HIGHLIGHTS

  *Earnings for the first quarter of fiscal 2013 of $67.9 million, or $0.81
    per share, increased $7.2 million, or $0.08 per share, compared to $60.7
    million, or $0.73 per share, for the prior year’s first quarter. The
    increase is mainly due to higher earnings in the Utility segment, the
    Pipeline and Storage segment, and the All Other category.
  *Seneca Resources Corporation’s (“Seneca”) first quarter production of
    crude oil and natural gas increased 6.3 billion cubic feet equivalent
    (“Bcfe”), or approximately 34%, to 24.5 Bcfe. Appalachian production
    increased approximately 48% to 19.5 Bcfe, including production from the
    Marcellus Shale of 17.8 Bcfe.
  *In the current year’s first quarter, Seneca recorded a $3.7 million
    (pre-tax) charge related to the termination of a drilling rig contract.
    Seneca continues to operate three horizontal drilling rigs in Appalachia.
    Excluding this charge, Seneca’s first quarter earnings were down only $1.2
    million, or $0.01 per share, despite realized natural gas prices that were
    14% lower than the prior year’s first quarter.
  *In the Pipeline and Storage segment, first quarter earnings of $16.9
    million, or $0.20 per share, increased 70% compared to the prior year’s
    first quarter. The increase is largely driven by increased gas flows
    through the Northern Access and Line N 2012 Expansion pipeline projects
    that were placed in service in the first quarter.
  *The Company is revising its GAAP earnings guidance range for fiscal 2013
    to a range of $2.75 to $3.00 per share. The previous earnings guidance had
    been a range of $2.65 to $2.95 per share. This revised guidance assumes
    flat NYMEX equivalent pricing of $3.50 per Million British Thermal Units
    (“MMBtu”) for natural gas (Henry Hub) and $85 per barrel (“Bbl”) for crude
    oil (West Texas Intermediate) for unhedged production for the remainder of
    the fiscal year. Production for the entire 2013 fiscal year is projected
    to be between 102 to 112 Bcfe. The previous guidance for projected
    production was between 95 and 107 Bcfe.
  *A conference call is scheduled for Friday, February 8, 2013, at 11 a.m.
    Eastern Standard Time.

MANAGEMENT COMMENTS

David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas
Company, stated: “Fiscal 2013 is off to a very impressive start, with the
first quarter delivering strong financial and operational results across the
system. Our efforts to grow our E&P and midstream businesses continue to gain
momentum, and the growth that we forecasted is being delivered. The success of
our recent midstream expansion initiatives, with five projects completed since
the fall of 2011, is evidence of both the strategic location of our system and
of our ability to efficiently conceive and construct projects that are
critical to our customers’ success. In addition, the recent impressive results
from our Marcellus Shale acreage in Lycoming County will help drive our
increased production outlook for the years to come.

“With the remarkable success we have been achieving, we are able to raise our
outlook for the remainder of this year. We’re proud of our accomplishments and
remain focused on delivering long-term value to our shareholders.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended December 31,
2012, of $67.9 million, or $0.81 per share, compared to the prior year’s first
quarter of $60.7 million, or $0.73 per share, an increase of $7.2 million or
$0.08 per share. The increase is mainly due to higher earnings in the Utility
segment, the Pipeline and Storage segment, and the All Other category, offset
by lower earnings in the Exploration and Production segment. (Note: All
references to earnings per share are to diluted earnings per share, all
amounts are stated in U.S. dollars and all amounts used in the discussion of
earnings are after tax unless otherwise noted.)

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a
tabular form at pages 7 and 8 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.

The Exploration and Production segment’s earnings in the first quarter of
fiscal 2013 of $26.7 million, or $0.32 per share, decreased $3.6 million, or
$0.04 per share, when compared with the prior year’s first quarter. Earnings
were reduced by a $3.7 million (pre-tax) charge related to the termination of
a contract for a drilling rig that had been idled since June 2012. The
contract was terminated as a result of the rig being utilized by another
company. The rig was idled as part of Seneca’s previously reported overall
plan to reduce Appalachian capital spending in response to lower gas prices.
Seneca continues to operate three horizontal drilling rigs in Appalachia.
Excluding this charge, earnings decreased $1.2 million or $0.01 per share.

Overall production of natural gas and crude oil for the current quarter of
24.5 Bcfe increased approximately 6.3 Bcfe, or 34.4 percent, compared to the
prior year’s first quarter. Production from Seneca’s Appalachia properties
increased approximately 48.3 percent, mainly due to a 6.5 Bcfe, or 57.5
percent increase in production from Marcellus wells. California production of
5.0 Bcfe was consistent with the prior year’s first quarter.

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 December 31, 2012, was $4.09 per thousand cubic feet (“Mcf”), a
decrease of $0.69 per Mcf compared to the prior year’s first quarter. Higher
crude oil prices realized after hedging increased earnings. The weighted
average oil price received by Seneca (after hedging) for the quarter ended
December 31, 2012, was $96.69 per Bbl, an increase of $5.31 per Bbl.

Depletion and lease operating expenses (“LOE”) for the current year’s first
quarter increased over last year’s first quarter due to the higher production
activity discussed above. On a per unit basis, depletion decreased $0.15 per
thousand cubic feet equivalent (“Mcfe”) due to higher crude oil and natural
gas reserve balances at December 31, 2012, compared to the prior year. LOE
increased $0.03 per Mcfe mainly due to higher transportation costs in the East
and higher well repair costs in California. Earnings were also reduced by
higher interest expense, due to a higher outstanding debt balance.

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.
(“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 western Pennsylvania.

The Pipeline and Storage segment’s earnings of $16.9 million, or $0.20 per
share, for the quarter ended December 31, 2012, increased $7.0 million, or
$0.08 per share, when compared with the same period in the prior fiscal year.
The increase in earnings is mainly due to higher non-affiliated transportation
revenues from the Northern Access and Line N 2012 Expansion projects, which
were completed and placed in service in the current year’s first quarter.
Earnings also increased due to lower depreciation expense, which was largely
driven by a reduction in Supply Corporation’s depreciation rates as required
by its 2012 rate case settlement.

Utility Segment

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

The Utility segment’s earnings of $22.9 million, or $0.27 per share, for the
quarter ended December 31, 2012, increased $3.5 million or $0.04 per share.
Colder weather and lower operating expenses were the primary reasons for the
increase in earnings in the current year’s first quarter. Temperatures in
Pennsylvania were 10.3 percent colder in the current year’s first quarter than
the first quarter of 2012, which had a significant impact on Pennsylvania
earnings. In New York, the colder weather did not have a significant impact on
earnings for the quarter because the impact of weather variations is mitigated
by that jurisdiction’s weather normalization clause.

Energy Marketing Segment

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

The Energy Marketing segment’s earnings for the quarter ended December 31,
2012, of $0.5 million increased $0.1 million from the prior year’s first
quarter earnings of $0.4 million. The increase was mainly due to lower
operating expenses during the current year’s first quarter.

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 the Northeast
division of Seneca Resources Corporation that markets high quality hardwoods
from Appalachian land holdings.

The Corporate and All Other category earnings of $1.0 million, for the quarter
ended December 31, 2012, increased $0.3 million compared to the prior year’s
first quarter. The increase in earnings is mainly due to higher earnings from
Midstream’s pipeline gathering and natural gas processing operation.
Midstream’s Trout Run gathering system in Lycoming County, Pa., and its
Covington gathering system in Tioga County, Pa., have provided the critical
gathering infrastructure for transporting Seneca’s Marcellus Shale production
to the interstate pipeline system.

EARNINGS GUIDANCE

The Company is updating its earnings guidance for fiscal 2013 to reflect
actual first quarter results and an increase in our production range. The
revised GAAP earnings range is $2.75 to $3.00 per share. The previous earnings
guidance had been a range of $2.65 to $2.95 per share. This revised guidance
includes forecast oil and gas production for fiscal 2013 for the Exploration
and Production segment in the range between 102 and 112 Bcfe (previous
production range was between 95 and 107), hedges currently in place, and NYMEX
equivalent pricing of $3.50 per MMBtu for natural gas and $85 per Bbl for
crude oil for unhedged production for the remainder of the fiscal year.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, February 8, 2013, at 11
a.m. (Eastern Time) to discuss this announcement. There are two ways to access
this call. For those with Internet access, visit the investor relations page
at National Fuel’s website at investor.nationalfuelgas.com. For those without
Internet access, access is also provided by dialing (toll-free) 1-866-700-6067
and using the passcode “69013483.” 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 “47931748.” Both the webcast and telephonic replay will be
available until the close of business on Friday, February 15, 2013.

National Fuel is an integrated energy company with $6.1 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 statements identified by the
use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may”
and similar expressions, and statements which are other than statements of
historical facts, are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or outcomes to
differ materially from those expressed in the forward-looking statements. The
Company’s expectations, beliefs and projections contained herein are expressed
in good faith and are believed to have a reasonable basis, but there can be no
assurance that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following are
important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements: factors affecting the
Company’s ability to successfully identify, drill for and produce economically
viable natural gas and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling operations,
insufficient gathering, processing and transportation capacity, the need to
obtain governmental approvals and permits, and compliance with environmental
laws and regulations; changes in laws, regulations or judicial interpretations
to which the Company is subject, including those involving derivatives, taxes,
safety, employment, climate change, other environmental matters, real
property, and exploration and production activities such as hydraulic
fracturing; 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.

                                                                                       
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED DECEMBER 31, 2012
                                                                                                          
                        Exploration       Pipeline &                      Energy          Corporate
                        &                                                                 /
(Thousands of           Production     Storage       Utility     Marketing    All Other    Consolidated**
Dollars)
                                                                                                          
First quarter
2012 GAAP               $  30,315         $ 9,959          $ 19,353       $    429        $ 643           $   60,699
earnings
                                                                                                          
Drivers of
operating results
Higher (lower)             2,462                                                                              2,462
crude oil prices
Higher (lower)
natural gas                (9,026 )                                                                           (9,026  )
prices
Higher (lower)
natural gas                19,597                                                                             19,597
production
Higher (lower)
crude oil                  (276   )                                                                           (276    )
production
Lower (higher)
lease operating            (4,609 )                                                                           (4,609  )
expenses
Lower (higher)
depreciation /             (6,785 )         1,019                                           (628  )           (6,394  )
depletion
                                                                                                          
Higher (lower)
transportation                              5,526                                                             5,526
and storage
revenues
Higher (lower)
efficiency gas                              380                                                               380
revenues
Higher (lower)
gathering and                                                                               1,375             1,375
processing
revenues
Lower (higher)
operating                  (2,950 )                          1,314                                            (1,636  )
expenses
                                                                                                          
Colder weather                                               1,371                                            1,371
                                                                                                          
Higher AFUDC *                              320                                                               320
(Higher) lower             (2,205 )                                                                           (2,205  )
interest expense
                                                                                                          
Lower (higher)
income tax                                                   535                                              535
expense/effective
tax rate
                                                                                                          
All other /               157         (271   )     305           66       (432  )       (175    )
rounding
                                                                                                          
First quarter
2013 GAAP               $  26,680     $ 16,933     $ 22,878    $    495     $ 958       $   67,944  
earnings
                                                                                                          
                                                                                                          
* AFUDC =
Allowance for
Funds Used During
Construction
** Amounts do not
reflect
intercompany
eliminations
                                                                                                          

                                                                                      
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED DECEMBER 31, 2012
                                                                                                         
                        Exploration       Pipeline                       Energy          Corporate
                        &                 &                                              /
                        Production     Storage     Utility      Marketing    All Other    Consolidated**
                                                                                                         
First quarter
2012 GAAP               $  0.36           $  0.12        $ 0.23          $   0.01        $ 0.01          $   0.73
earnings
                                                                                                         
Drivers of
operating results
Higher (lower)             0.03                                                                              0.03
crude oil prices
Higher (lower)
natural gas                (0.11  )                                                                          (0.11   )
prices
Higher (lower)
natural gas                0.23                                                                              0.23
production
Higher (lower)
crude oil                  -                                                                                 -
production
Lower (higher)
lease operating            (0.05  )                                                                          (0.05   )
expenses
Lower (higher)
depreciation /             (0.08  )          0.01                                          (0.01 )           (0.08   )
depletion
                                                                                                         
Higher (lower)
transportation                               0.07                                                            0.07
and storage
revenues
Higher (lower)
efficiency gas                               -                                                               -
revenues
Higher (lower)
gathering and                                                                              0.02              0.02
processing
revenues
Lower (higher)
operating                  (0.04  )                        0.02                                              (0.02   )
expenses
                                                                                                         
Colder weather                                             0.02                                              0.02
                                                                                                         
Higher AFUDC *                               -                                                               -
(Higher) lower             (0.03  )                                                                          (0.03   )
interest expense
                                                                                                         
Lower (higher)
income tax                                                 0.01                                              0.01
expense/effective
tax rate
                                                                                                         
All other /               0.01         -         (0.01 )       -         (0.01 )       (0.01   )
rounding
                                                                                                         
First quarter
2013 GAAP               $  0.32       $  0.20     $ 0.27      $   0.01     $ 0.01      $   0.81    
earnings
                                                                                                         
                                                                                                         
* AFUDC =
Allowance for
Funds Used During
Construction
** Amounts do not
reflect
intercompany
eliminations
                                                                                                         

                                                         
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                
(Thousands of Dollars, except per
share amounts)
                                           Three Months Ended
                                           December 31,
                                           (Unaudited)
SUMMARY OF OPERATIONS                       2012               2011       
Operating Revenues                         $ 452,854           $ 432,423    
                                                                
Operating Expenses:
Purchased Gas                                121,919              132,193
Operation and Maintenance                    107,732              100,059
Property, Franchise and Other Taxes          19,664               19,230
Depreciation, Depletion and                 72,331             62,547     
Amortization
                                             321,646              314,029
                                                                
Operating Income                             131,208              118,394
                                                                
Other Income (Expense):
Interest Income                              1,386                1,105
Other Income                                 1,415                1,336
Interest Expense on Long-Term Debt           (21,448    )         (18,641    )
Other Interest Expense                      (1,068     )        (770       )
                                                                
Income Before Income Taxes                   111,493              101,424
                                                                
Income Tax Expense                          43,549             40,725     
                                                                
Net Income Available for Common            $ 67,944            $ 60,699     
Stock
                                                                
Earnings Per Common Share:
Basic                                      $ 0.81              $ 0.73       
Diluted                                    $ 0.81              $ 0.73       
                                                                
Weighted Average Common Shares:
Used in Basic Calculation                   83,390,278         82,870,931 
Used in Diluted Calculation                 84,006,050         83,699,981 
                                                                

                                                          
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                             
                                             December 31,        September 30,
(Thousands of Dollars)                     2012           2012      
                                                                 
ASSETS
Property, Plant and Equipment                $ 6,791,637         $ 6,615,813
Less - Accumulated Depreciation,              1,935,448      1,876,010 
Depletion and Amortization
Net Property, Plant and Equipment             4,856,189     $ 4,739,803 
                                                                 
Current Assets:
Cash and Temporary Cash Investments            61,017              74,494
Hedging Collateral Deposits                    -                   364
Receivables - Net                              143,567             115,818
Unbilled Utility Revenue                       47,134              19,652
Gas Stored Underground                         44,485              49,795
Materials and Supplies - at average            29,946              28,577
cost
Other Current Assets                           49,108              56,121
Deferred Income Taxes                         19,112         10,755    
Total Current Assets                          394,369        355,576   
                                                                 
Other Assets:
Recoverable Future Taxes                       152,202             150,941
Unamortized Debt Expense                       12,860              13,409
Other Regulatory Assets                        551,707             546,851
Deferred Charges                               6,781               7,591
Other Investments                              90,513              86,774
Goodwill                                       5,476               5,476
Fair Value of Derivative Financial             37,135              27,616
Instruments
Other                                         965            1,105     
Total Other Assets                            857,639        839,763   
Total Assets                                 $ 6,108,197     $ 5,935,142 
                                                                 
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized
- 200,000,000
Shares; Issued and Outstanding -
83,482,125 Shares
and 83,330,140 Shares, Respectively          $ 83,482            $ 83,330
Paid in Capital                                673,607             669,501
Earnings Reinvested in the Business           1,343,765      1,306,284 
Total Common Shareholders' Equity
Before
Items of Other Comprehensive Loss              2,100,854           2,059,115
Accumulated Other Comprehensive Loss          (84,644   )     (99,020   )
Total Comprehensive Shareholders'              2,016,210           1,960,095
Equity
Long-Term Debt, Net of Current Portion        1,149,000      1,149,000 
Total Capitalization                          3,165,210      3,109,095 
                                                                 
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial          238,000             171,000
Paper
Current Portion of Long-Term Debt              250,000             250,000
Accounts Payable                               94,909              87,985
Amounts Payable to Customers                   15,278              19,964
Dividends Payable                              -                   30,416
Interest Payable on Long-Term Debt             16,320              29,491
Customer Advances                              22,068              24,055
Customer Security Deposits                     18,926              17,942
Other Accruals and Current Liabilities         103,582             79,099
Fair Value of Derivative Financial            13,816         24,527    
Instruments
Total Current and Accrued Liabilities         772,899        734,479   
                                                                 
Deferred Credits:
Deferred Income Taxes                          1,126,551           1,065,757
Taxes Refundable to Customers                  66,396              66,392
Unamortized Investment Tax Credit              1,898               2,005
Cost of Removal Regulatory Liability           147,267             139,611
Other Regulatory Liabilities                   22,911              21,014
Pension and Other Post-Retirement              514,116             516,197
Liabilities
Asset Retirement Obligations                   123,984             119,246
Other Deferred Credits                        166,965        161,346   
Total Deferred Credits                        2,170,088      2,091,568 
Commitments and Contingencies                 -              -         
Total Capitalization and Liabilities         $ 6,108,197     $ 5,935,142 
                                                                 

                                                           
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                               Three Months Ended
                                               December 31,
(Thousands of Dollars)                       2012          2011     
                                                                  
Operating Activities:
Net Income Available for Common Stock          $ 67,944           $ 60,699
Adjustments to Reconcile Net Income to
Net Cash
Provided by Operating Activities:
Depreciation, Depletion and Amortization         72,331             62,547
Deferred Income Taxes                            41,000             39,398
Other                                            7,923              2,375
Change in:
Hedging Collateral Deposits                      364                (5,417   )
Receivables and Unbilled Utility Revenue         (55,261  )         (51,054  )
Gas Stored Underground and Materials and         3,941              (2,226   )
Supplies
Unrecovered Purchased Gas Costs                  -                  (3,002   )
Other Current Assets                             7,013              232
Accounts Payable                                 6,163              (5,065   )
Amounts Payable to Customers                     (4,686   )         (3,522   )
Customer Advances                                (1,987   )         6,171
Customer Security Deposits                       984                364
Other Accruals and Current Liabilities           (5,667   )         (3,460   )
Other Assets                                     (597     )         (6,244   )
Other Liabilities                            6,495         3,867    
Net Cash Provided by Operating              $ 145,960      $ 95,663   
Activities
                                                                  
Investing Activities:
Capital Expenditures                           $ (162,981 )       $ (249,105 )
Other                                        (3,533   )     (966     )
Net Cash Used in Investing Activities       $ (166,514 )    $ (250,071 )
                                                                  
Financing Activities:
Changes in Notes Payable to Banks and          $ 67,000           $ (20,000  )
Commercial Paper
Reduction of Long-Term Debt                      -                  (150,000 )
Net Proceeds From Issuance of Long-Term          -                  496,085
Debt
Dividends Paid on Common Stock                   (60,879  )         (29,398  )
Proceeds From Issuance of Common Stock       956           1,555    
Net Cash Provided By Financing              $ 7,077        $ 298,242  
Activities
Net Increase (Decrease) in Cash and
Temporary
Cash Investments                                 (13,477  )         143,834
Cash and Temporary Cash Investments
at Beginning of Period                       74,494        80,428   
Cash and Temporary Cash Investments
at December 31                              $ 61,017       $ 224,262  
                                                                  

                                                          
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                    
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                    
                                Three Months Ended
(Thousands of Dollars,          December 31,
except per share amounts)
EXPLORATION AND                  2012         2011        Variance
PRODUCTION SEGMENT
Total Operating Revenues        $ 155,450     $ 135,974     $ 19,476 
                                                                    
Operating Expenses:
Operation and
Maintenance:
General and                       14,433            13,860            573
Administrative Expense
Lease Operating Expense           25,696            18,605            7,091
All Other Operation and           5,498             1,532             3,966
Maintenance Expense
Property, Franchise and           3,257             2,546             711
Other Taxes
Depreciation, Depletion          51,922       41,484       10,438 
and Amortization
                                 100,806      78,027       22,779 
                                                                    
Operating Income                  54,644            57,947            (3,303 )
                                                                    
Other Income (Expense):
Interest Income                   470               347               123
Other Interest Expense           (8,696  )     (5,304  )     (3,392 )
                                                                    
Income Before Income              46,418            52,990            (6,572 )
Taxes
Income Tax Expense               19,738       22,675       (2,937 )
Net Income                      $ 26,680          $ 30,315          $ (3,635 )
                                                                    
Net Income Per Share            $ 0.32        $ 0.36        $ (0.04  )
(Diluted)
                                                                    
                                                                    
                                                                    
                                                                    
                                Three Months Ended
                                December 31,
PIPELINE AND STORAGE             2012         2011        Variance
SEGMENT
Revenues from External          $ 43,459          $ 35,225          $ 8,234
Customers
Intersegment Revenues            22,797       21,064       1,733  
Total Operating Revenues         66,256       56,289       9,967  
                                                                    
Operating Expenses:
Purchased Gas                     786               1                 785
Operation and Maintenance         19,439            19,514            (75    )
Property, Franchise and           5,433             5,408             25
Other Taxes
Depreciation, Depletion          8,525        10,092       (1,567 )
and Amortization
                                 34,183       35,015       (832   )
                                                                    
Operating Income                  32,073            21,274            10,799
                                                                    
Other Income (Expense):
Interest Income                   64                57                7
Other Income                      1,343             1,027             316
Other Interest Expense           (6,177  )     (6,332  )     155    
                                                                    
Income Before Income              27,303            16,026            11,277
Taxes
Income Tax Expense               10,370       6,067        4,303  
Net Income                      $ 16,933      $ 9,959       $ 6,974  
                                                                    
Net Income Per Share            $ 0.20        $ 0.12        $ 0.08   
(Diluted)
                                                                    

                                                          
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                    
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                    
                                Three Months Ended
(Thousands of Dollars,          December 31,
except per share amounts)
UTILITY SEGMENT                  2012         2011        Variance
Revenues from External          $ 208,563         $ 208,810         $ (247   )
Customers
Intersegment Revenues            4,311        4,389        (78    )
Total Operating Revenues         212,874      213,199      (325   )
                                                                    
Operating Expenses:
Purchased Gas                     105,942           108,405           (2,463 )
Operation and Maintenance         43,261            45,333            (2,072 )
Property, Franchise and           10,355            10,547            (192   )
Other Taxes
Depreciation, Depletion          10,508       10,561       (53    )
and Amortization
                                170,066      174,846      (4,780 )
                                                                    
Operating Income                  42,808            38,353            4,455
                                                                    
Other Income (Expense):
Interest Income                   886               646               240
Other Income                      219               242               (23    )
Other Interest Expense           (8,233  )     (8,160  )     (73    )
                                                                    
Income Before Income              35,680            31,081            4,599
Taxes
Income Tax Expense               12,802       11,728       1,074  
Net Income                      $ 22,878      $ 19,353      $ 3,525  
                                                                    
Net Income Per Share            $ 0.27        $ 0.23        $ 0.04   
(Diluted)
                                                                    
                                                                    
                                                                    
                                                                    
                                Three Months Ended
                                December 31,
ENERGY MARKETING SEGMENT         2012         2011        Variance
Revenues from External          $ 44,166          $ 51,222          $ (7,056 )
Customers
Intersegment Revenues            426          287          139    
Total Operating Revenues         44,592       51,509       (6,917 )
                                                                    
Operating Expenses:
Purchased Gas                     42,156            49,090            (6,934 )
Operation and Maintenance         1,594             1,746             (152   )
Property, Franchise and           58                9                 49
Other Taxes
Depreciation, Depletion          23           24           (1     )
and Amortization
                                 43,831       50,869       (7,038 )
                                                                    
Operating Income                  761               640               121
                                                                    
Other Income (Expense):
Interest Income                   53                35                18
Other Income                      12                35                (23    )
Other Interest Expense           (10     )     (4      )     (6     )
                                                                    
Income Before Income              816               706               110
Taxes
Income Tax Expense               321          277          44     
Net Income                      $ 495         $ 429         $ 66     
                                                                    
Net Income Per Share            $ 0.01        $ 0.01        $ -      
(Diluted)
                                                                             

                                                           
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                     
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                     
                                     Three Months Ended
(Thousands of Dollars, except        December 31,
per share amounts)
ALL OTHER                             2012       2011      Variance
Revenues from External               $ 1,015         $ 937           $ 78
Customers
Intersegment Revenues                 5,480      3,362      2,118 
Total Operating Revenues              6,495      4,299      2,196 
                                                                     
Operating Expenses:
Operation and Maintenance              1,226           948             278
Property, Franchise and Other          298             171             127
Taxes
Depreciation, Depletion and           1,153      194        959   
Amortization
                                      2,677      1,313      1,364 
                                                                     
Operating Income                       3,818           2,986           832
                                                                     
Other Income (Expense):
Interest Income                        39              62              (23   )
Other Income                           (34   )         (77   )         43
Other Interest Expense                (469  )     (454  )     (15   )
                                                                     
Income Before Income Taxes             3,354           2,517           837
Income Tax Expense                    1,469      1,113      356   
Net Income                           $ 1,885     $ 1,404     $ 481   
                                                                     
Net Income Per Share (Diluted)       $ 0.02      $ 0.02      $ -     
                                                                             

                                                           
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                    
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                                                                    
                                  Three Months Ended
(Thousands of Dollars,            December 31,
except per share amounts)
CORPORATE                          2012        2011        Variance
Revenues from External            $ 201           $ 255             $ (54    )
Customers
Intersegment Revenues              547         1,028        (481   )
Total Operating Revenues           748         1,283        (535   )
                                                                    
Operating Expenses:
Operation and Maintenance           3,181           3,348             (167   )
Property, Franchise and             263             549               (286   )
Other Taxes
Depreciation, Depletion and        200         192          8      
Amortization
                                   3,644       4,089        (445   )
                                                                    
Operating Loss                      (2,896  )       (2,806  )         (90    )
                                                                    
Other Income (Expense):
Interest Income                     23,304          20,306            2,998
Other Income                        (125    )       109               (234   )
Interest Expense on                 (21,448 )       (18,641 )         (2,807 )
Long-Term Debt
Other Interest Expense             (913    )    (864    )     (49    )
                                                                    
Loss Before Income Taxes            (2,078  )       (1,896  )         (182   )
Income Tax Benefit                 (1,151  )    (1,135  )     (16    )
Net Loss                          $ (927    )   $ (761    )    $ (166   )
                                                                    
Net Loss Per Share                $ (0.01   )   $ (0.01   )    $ -      
(Diluted)
                                                                    
                                                                    
                                                                    
                                  Three Months Ended
                                  December 31,
INTERSEGMENT ELIMINATIONS          2012        2011        Variance
Intersegment Revenues             $ (33,561 )   $ (30,130 )    $ (3,431 )
                                                                    
Operating Expenses:
Purchased Gas                       (26,965 )       (25,303 )         (1,662 )
Operation and Maintenance          (6,596  )    (4,827  )     (1,769 )
                                   (33,561 )    (30,130 )     (3,431 )
                                                                    
Operating Income                    -               -                 -
                                                                    
Other Income (Expense):
Interest Income                     (23,430 )       (20,348 )         (3,082 )
Other Interest Expense             23,430      20,348       3,082  
                                                                    
Net Income                         -           -            -      
                                                                    
Net Income Per Share              $ -          $ -           $ -      
(Diluted)
                                                                    

                                                                                           
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                                                                      
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
                                                                                                                      
                                                                                                                      
                    Three Months Ended
                    December 31,
                    (Unaudited)
                                                                                                                      
                                                                                    Increase
                     2012                           2011                          (Decrease)
                                                                                                                      
Capital                             
Expenditures:
Exploration
and                 $ 127,652       ^(1) ^(2)       $ 191,876       ^(3) ^(4)       $ (64,224 )
Production
Pipeline and          25,751        ^(1) ^(2)         44,190        ^(3) ^(4)         (18,439 )
Storage
Utility               14,363        ^(1) ^(2)         11,265        ^(3) ^(4)         3,098
Energy               183                            140                            43      
Marketing
Total                 167,949                         247,471                        (79,522 )
Reportable
All Other             13,665        ^(1) ^(2)         31,404        ^(3) ^(4)         (17,739 )
Corporate            8                              76                             (68     )
Total Capital       $ 181,622                       $ 278,951                       $ (97,329 )
Expenditures
                                                                                                                      
                                                                                                                      
^(1) Capital expenditures for the three months ended December 31, 2012 include accounts payable and accrued liabilities
related
to capital expenditures of $73.4 million, $10.5 million, $0.1 million and $2.1 million in the Exploration and
Production segment,
Pipeline and Storage segment, Utility segment and the All Other category, respectively. These amounts have been
excluded
from the Consolidated Statement of Cash Flows at December 31, 2012 since they represent non-cash investing activities
at
that date.
                                                                                                                      
^(2) Capital expenditures for the three months ended December 31, 2012 exclude capital expenditures of $38.9 million,
$12.7
million, $3.2 million and $12.7 million in the Exploration and Production segment, Pipeline and Storage segment,
Utility
segment and the All Other category, respectively. These amounts were in accounts payable and accrued liabilities at
September 30, 2012 and paid during the three months ended December 31, 2012. These amounts were excluded from the
Consolidated Statements of Cash Flows at September 30, 2012 since they represented non-cash investing activities at
that
date. These amounts have been included in the Consolidated Statement of Cash Flows at December 31, 2012.
                                                                                                                      
^(3) Capital expenditures for the three months ended December 31, 2011 include accounts payable and accrued liabilities
related to
capital expenditures of $123.1 million, $16.6 million, $0.4 million and $14.9 million in the Exploration and Production
segment,
Pipeline and Storage segment, Utility segment and the All Other category, respectively. These amounts have been
excluded
from the Consolidated Statement of Cash Flows at December 31, 2011 since they represented non-cash investing activities
at
that date.
                                                                                                                      
^(4) Capital expenditures for the three months ended December 31, 2011 exclude capital expenditures of $103.3 million,
$16.4
million, $2.3 million and $3.1 million in the Exploration and Production segment, Pipeline and Storage segment, Utility
segment
and the All Other category, respectively. These amounts were in accounts payable and accrued liabilities at September
30,
2011 and paid during the three months ended December 31, 2011. These amounts were excluded from the Consolidated
Statements of Cash Flows at September 30, 2011 since they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash Flows at December 31, 2011.

                                                            
DEGREE DAYS
                                                            Percent Colder
                                                            (Warmer) Than:
Three Months                                                Normal       Last
Ended December     Normal         2012         2011         ^(1)         Year
31                                                                       ^(1)
                                                                         
Buffalo, NY        2,253          2,036        1,848        (9.6)        10.2
Erie, PA           2,044          1,898        1,721        (7.1)        10.3
                                                                         
^(1) Percents compare actual 2012 degree days to normal degree days and actual
2012 degree days to actual 2011 degree days.


                                                          
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                    
EXPLORATION AND PRODUCTION INFORMATION
                                                                    
                                                                    
                                      Three Months Ended
                                      December 31,
                                                                    Increase
                                       2012          2011         (Decrease)
                                                                    
Gas Production/Prices:
Production (MMcf)
Appalachia                              19,496         13,111          6,385
West Coast                             745           817            (72   )
Total Production                       20,241        13,928         6,313 
                                                                    
Average Prices (Per Mcf)
Appalachia                            $ 3.35         $ 3.39         $  (0.04 )
West Coast                              3.77           4.95            (1.18 )
Weighted Average                        3.36           3.48            (0.12 )
Weighted Average after Hedging          4.09           4.78            (0.69 )
                                                                    
Oil Production/Prices:
Production (Thousands of
Barrels)
Appalachia                              6              10              (4    )
West Coast                             708           709            (1    )
Total Production                       714           719            (5    )
                                                                    
Average Prices (Per Barrel)
Appalachia                            $ 87.83        $ 88.16        $  (0.33 )
West Coast                              100.10         109.23          (9.13 )
Weighted Average                        100.01         108.93          (8.92 )
Weighted Average after Hedging          96.69          91.38           5.31
                                                                    
Total Production (MMcfe)               24,525        18,242         6,283 
                                                                    
Selected Operating Performance
Statistics:
General & Administrative              $ 0.59         $ 0.76         $  (0.17 )
Expense per Mcfe ^(1)
Lease Operating Expense per           $ 1.05         $ 1.02         $  0.03
Mcfe ^(1)
Depreciation, Depletion &             $ 2.12         $ 2.27         $  (0.15 )
Amortization per Mcfe ^(1)
                                                                    
                                                                    
^(1) Refer to page 12 for the General and Administrative Expense, Lease
Operating Expense
and Depreciation, Depletion, and Amortization Expense for the Exploration and
Production
segment.


                                                       
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                 
EXPLORATION AND PRODUCTION INFORMATION
                                                                 
                                                                 
Hedging Summary for the Remaining Nine Months of Fiscal
2013
                                                                 
SWAPS                                            Volume          Average Hedge
                                                                 Price
Oil                                              1.3 MMBBL       $94.92 / BBL
Gas                                              43.2 BCF        $4.68 / MCF
                                                                 
Hedging Summary for Fiscal
2014
                                                                 
SWAPS                                            Volume          Average Hedge
                                                                 Price
Oil                                              1.2 MMBBL       $98.95 / BBL
Gas                                              49.9 BCF        $4.24 / MCF
                                                                 
Hedging Summary for Fiscal
2015
                                                                 
SWAPS                                            Volume          Average Hedge
                                                                 Price
Oil                                              0.4 MMBBL       $90.14 / BBL
Gas                                              22.7 BCF        $4.10 / MCF
                                                                 
Hedging Summary for Fiscal
2016
                                                                 
SWAPS                                            Volume          Average Hedge
                                                                 Price
Gas                                              17.9 BCF        $4.07 / MCF
                                                                 
Hedging Summary for Fiscal
2017
                                                                 
SWAPS                                           Volume          Average Hedge
                                                                 Price
Gas                                              17.9 BCF        $4.07 / MCF
                                                                 
                                                                 
Gross Wells in Process of
Drilling
Quarter Ended December 31,
2012
                                                                 Total
                                    East         West            Company
Wells in Process - Beginning
of Period
Exploratory                         1.000        1.000           2.000
Developmental                       82.000       0.000           82.000
Wells Commenced
Exploratory                         0.000        3.000           3.000
Developmental                       12.000       27.000          39.000
Wells Completed
Exploratory                         0.000        2.000           2.000
Developmental                       1.000        26.000          27.000
Wells Plugged & Abandoned
Exploratory                         0.000        0.000           0.000
Developmental                       0.000        0.000           0.000
Wells in Process - End of
Period
Exploratory                         1.000        2.000           3.000
Developmental                       93.000       1.000           94.000
                                                                 
                                                                 
Net Wells in Process of
Drilling
Quarter Ended December 31,
2012
                                                                 Total
                                    East         West            Company
Wells in Process - Beginning
of Period
Exploratory                         1.000        0.125           1.125
Developmental                       59.500       0.000           59.500
Wells Commenced
Exploratory                         0.000        0.375           0.375
Developmental                       12.000       27.000          39.000
Wells Completed
Exploratory                         0.000        0.250           0.250
Developmental                       1.000        26.000          27.000
Wells Plugged & Abandoned
Exploratory                         0.000        0.000           0.000
Developmental                       0.000        0.000           0.000
Wells in Process - End of
Period
Exploratory                         1.000        0.250           1.250
Developmental                       70.500       1.000           71.500
                                                                 

                                                         
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                                    
                                                                    
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
                                                                    
                                         Three Months Ended
                                         December 31,
                                                                    Increase
                                         2012          2011         (Decrease)
Firm Transportation - Affiliated         28,234        26,177       2,057
Firm Transportation -                    95,179        57,431       37,748
Non-Affiliated
Interruptible Transportation             1,252         808          444
                                         124,665       84,416       40,249
                                                                    
Utility Throughput - (MMcf)
                                         Three Months Ended
                                         December 31,
                                                                    Increase
                                         2012          2011         (Decrease)
Retail Sales:
Residential Sales                        15,153        14,549       604
Commercial Sales                         1,967         1,994        (27)
Industrial Sales                         301           101          200
                                         17,421        16,644       777
Off-System Sales                         2,429         2,745        (316)
Transportation                           18,637        16,928       1,709
                                         38,487        36,317       2,170
                                                                    
Energy Marketing Volumes
                                         Three Months Ended
                                         December 31,
                                                                    Increase
                                         2012          2011         (Decrease)
Natural Gas (MMcf)                       10,365        10,312       53
                                                                    

                                                               
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2013 EARNINGS GUIDANCE AND SENSITIVITY
                                                                      
                                                                      
                                                                      
                                                                      
                                                                      
                                     Earnings per share sensitivity to changes
Fiscal 2013 (Diluted earnings        from prices used in guidance* ^
per share guidance*)
                                                                      
                                     $0.50 change per      $5 change per Bbl
                                     MMBtu gas             oil
                 Earnings Range      Increase  Decrease   Increase  Decrease
                                                                      
Consolidated     $2.75  -  $3.00     + $0.11    - $0.11    + $0.02    - $0.02
Earnings
                                                                      
                                                                      
                                                                      
                                                                      
* Please refer to forward looking statement footnote beginning at page 5 of
this document.
                                                                      
^ This sensitivity table is current as of February 7, 2013 and only considers
revenue from the Exploration and Production segment's
crude oil and natural gas sales. This revenue is based upon pricing used in
the Company's earnings forecast. For its fiscal 2013
earnings forecast, the Company is utilizing flat NYMEX equivalent commodity
pricing, exclusive of basis differential, of $3.50 per MMBtu
for natural gas and $85 per Bbl for crude oil. The sensitivities will become
obsolete with the passage of time, changes in Seneca's
production forecast, changes in basis differential, as additional hedging
contracts are entered into, and with the settling of hedge
contracts at their maturity.


                                                        
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                                                               
                                                               
                                                               
                                                               
Quarter Ended December 31                 2012                 2011
(unaudited)
                                                               
Operating Revenues                       $ 452,854,000         $ 432,423,000
                                                               
Net Income Available for Common          $ 67,944,000          $ 60,699,000
Stock
                                                               
Earnings Per Common Share:
Basic                                    $ 0.81                $ 0.73
Diluted                                  $ 0.81                $ 0.73
                                                               
Weighted Average Common Shares:
Used in Basic Calculation                 83,390,278           82,870,931
Used in Diluted Calculation               84,006,050           83,699,981
                                                               
                                                               
Twelve Months Ended December 31
(unaudited)
                                                               
Operating Revenues                       $ 1,647,284,000       $ 1,760,317,000
                                                               
Net Income Available for Common          $ 227,322,000         $ 260,557,000
Stock
                                                               
Earnings Per Common Share:
Basic:                                   $ 2.73                $ 3.15
Diluted                                  $ 2.71                $ 3.11
                                                               
Weighted Average Common Shares:
Used in Basic Calculation                 83,258,386           82,677,232
Used in Diluted Calculation               83,800,341           83,726,544
                                                               

Contact:

National Fuel Gas Company
Analysts:
Timothy J. Silverstein, 716-857-6987
Media:
Karen L. Merkel, 716-857-7654

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