UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 2, 2019

NATIONAL FUEL GAS COMPANY
(Exact name of registrant as specified in its charter)

	
			
New Jersey	1-3880	13-1086010	
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)	

	
			
6363 Main Street, Williamsville, New York	 	14221	
(Address of principal executive offices)	 	(Zip Code)	

Registrant’s telephone number, including area code: (716) 857-7000

Former name or former address, if changed since last report: Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

		
 	 	
□	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
□	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
□	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
□	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

Emerging growth company     ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Securities registered pursuant to Section 12(b) of the Act:

			
Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered	
Common Stock, par value $1.00 per share	NFG	New York Stock Exchange	

Item 2.02    Results of Operations and Financial Condition.

On May 2, 2019, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter and six months ended March 31, 2019. A copy of the press release is furnished as part of this Current Report as Exhibit 99.

Neither the furnishing of the press release as an exhibit to this Current Report nor the inclusion in such press release of any reference to the Company’s internet address shall, under any circumstances, be deemed to incorporate the information available at such internet address into this Current Report. The information available at the Company’s internet address is not part of this Current Report or any other report filed or furnished by the Company with the Securities and Exchange Commission.

In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), the press release furnished as part of this Current Report as Exhibit 99 contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures prepared in accordance with GAAP.

Certain statements contained herein or in the press release furnished as part of this Current Report, including statements 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” and “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There can be no assurance that the Company’s projections will in fact be achieved nor do these projections reflect any acquisitions or divestitures that may occur in the future. While the Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. Furthermore, each forward-looking statement speaks only as of the date on which it is made. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; 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 the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability,

title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the impact of potential information technology, cybersecurity or data security breaches; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit 99      Press release furnished regarding earnings for the quarter and six months ended March 31, 2019

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	
		
NATIONAL FUEL GAS COMPANY	

By:	/s/ Sarah J. Mugel	
 	Sarah J. Mugel	
 	Secretary	

Dated: May 3, 2019

Exhibit 99

	

 	 	6363 Main Street/Williamsville, NY 14221	
 	 	 	 	
Release Date:	Immediate May 2, 2019	Kenneth E. Webster
Investor Relations
716-857-7067	David P. Bauer
Treasurer
716-857-7318	

NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2019 fiscal year and for the six months ended March 31, 2019.

FISCAL 2019 SECOND QUARTER SUMMARY
		
•	GAAP earnings of $90.6 million, or $1.04 per share, compared to $91.8 million, or $1.06 per share, in the prior year	
		
•	Adjusted operating results of $92.9 million, or $1.07 per share, compared to $95.6 million, or $1.11 per share, in the prior year (see non-GAAP reconciliation below)	
		
•	Consolidated Adjusted EBITDA of $225.8 million compared to $232.4 million in the prior year (see non-GAAP reconciliation on page 24)	
		
•	E&P segment net production of 48.8 Bcfe, an increase of 6% from the prior year	
		
•	Appalachian net natural gas production of 499 MMcf/d, up 8% from the prior year and up 1% from the first quarter	
		
•	Average natural gas prices, after the impact of hedging, of $2.58 per Mcf, up $0.06 per Mcf from the prior year	
		
•	Average oil prices, after the impact of hedging, of $61.01 per Bbl, up $2.70 per Bbl from the prior year	
		
•	Gathering segment operating revenues increased $1.6 million on 5% increase in gathered volumes	
		
•	Utility segment net income increased $2.2 million, or 7%, on higher customer margins and lower interest expense	

	

 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
(in thousands except per share amounts)	 	2019	 	2018	 	2019	 	2018	
Reported GAAP Earnings	 	$	90,595		 	$	91,847		 	$	193,256		 	$	290,501		
Items impacting comparability	 	 	 	 	 	 	 	 	
Remeasurement of deferred income taxes under 2017 Tax Reform	 	—		 	4,000		 	(5,000	)	 	(107,000	)	
Unrealized (gain) loss on hedge ineffectiveness (E&P)	 	6,742		 	(335	)	 	237		 	98		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	 	(1,416	)	 	82		 	(50	)	 	(24	)	
Unrealized (gain) loss on other investments (Corporate / All Other)	 	(3,831	)	 	—		 	2,516		 	—		
Tax impact of unrealized (gain) loss on other investments	 	805		 	—		 	(528	)	 	—		
Adjusted Operating Results	 	$	92,895		 	$	95,594		 	$	190,431		 	$	183,575		
 	 	 	 	 	 	 	 	 	
Reported GAAP Earnings per share	 	$	1.04		 	$	1.06		 	$	2.23		 	$	3.37		
Items impacting comparability	 	 	 	 	 	 	 	 	
Remeasurement of deferred income taxes under 2017 Tax Reform	 	—		 	0.05		 	(0.06	)	 	(1.24	)	
Unrealized (gain) loss on hedge ineffectiveness (E&P)	 	0.08		 	—		 	—		 	—		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	 	(0.02	)	 	—		 	—		 	—		
Unrealized (gain) loss on other investments (Corporate / All Other)	 	(0.04	)	 	—		 	0.03		 	—		
Tax impact of unrealized (gain) loss on other investments	 	0.01		 	—		 	(0.01	)	 	—		
Rounding	 	—		 	—		 	0.01		 	—		
Adjusted Operating Results per share	 	$	1.07		 	$	1.11		 	$	2.20		 	$	2.13		

Page 2.

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “The Company’s second fiscal quarter results evidence the value of our integrated business model, where the consistent earnings from each of our major operating segments contributed to our balanced consolidated earnings. Our financial results were in line with our forecast for the quarter, and keep us on track to deliver results in line with our fiscal year earnings guidance, which remains unchanged.

“Financial results in our regulated businesses were consistent with the prior year, where higher earnings in the utility business offset a portion of the expected decline in the interstate pipeline business caused by the expiration of a large transportation contract. In our Exploration & Production business, we experienced a few operational delays during the quarter, which deferred a portion of our production that was scheduled to come online this quarter into the latter part of fiscal 2019. We still expect, however, that our steady, three-rig drilling program will deliver average production growth of 15 to 20 percent through our fiscal 2022 forecast period. Given our large undeveloped acreage position, our production growth can be sustained throughout the next decade.

“We are excited that that our various Pipeline & Storage projects under development continue to take meaningful strides forward, including the recent receipt of the FERC Certificate for our Empire North project, positive legal and regulatory developments on our Northern Access project, and the commencement of construction on our Line N to Monaca project. Each of these projects will help to meet the increasing regional demand for domestic and abundant natural gas supplies. As the nation’s electric grid continues to decrease reliance on aging coal-fired plants and integrate more intermittent renewable generation facilities, more reliance will be placed on natural gas electric generation, much like many of our residential customers depend on their gas-powered back-up generators.”

FISCAL 2019 GUIDANCE

National Fuel is reaffirming its full year earnings guidance for fiscal 2019. The Company projects that earnings on a non-GAAP basis will be within the range of $3.45 to $3.65 per share, or $3.55 per share at the midpoint of the range. The Company’s earnings guidance range reflects the impact of actual results for the six months ended March 31, 2019, an update to the Company’s commodity price assumptions to reflect the current futures market, including a $10 per barrel increase in NYMEX crude oil, offset by the consolidated impact of the reduction in its production guidance discussed below. Further changes in NYMEX or Appalachian basin spot natural gas prices are not expected to have a significant impact on current year earnings as the realizations on a large portion of the Company’s remaining natural gas production are locked in with firm sales and financial hedges. Projections for consolidated and individual segment capital expenditures are unchanged.

The Company is revising its Exploration and Production segment’s fiscal 2019 net production guidance to be in the range of 205 to 215 billion cubic feet equivalent (“Bcfe”). At the midpoint of the range, the Company’s revised fiscal 2019 production guidance represents an 18 percent increase over fiscal 2018.

The 10 Bcfe, or 5 percent, decrease from the midpoint of the Company’s previous guidance range is primarily due to the following factors:
		
•	Drilling and completion delays at DCNR tracts 007 and 100 in the EDA, which has deferred forecasted production online dates;	
		
•	The impact of the Company's ongoing testing efforts to optimize its Utica drilling and completion design in the WDA; and	
		
•	The Company's continued trend towards drilling longer laterals, which is expected to benefit the program's economics, but defers the online dates related to future development pads beyond the previous plan.	

While the delays in new well turn on dates have the effect of pushing production to future periods, they are not expected to have a material impact on the ultimate recovery of the Company’s reserves or the economics of its Marcellus and Utica programs.

The Company’s earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the six months ended March 31, 2019, including: (1) the remeasurement of deferred income taxes resulting from

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the 2017 Tax Reform Act, which reduced the Company’s income tax expense and benefited consolidated earnings in the six months ended March 31, 2019 by $0.06 per share; (2) the full year impact of the Exploration and Production segment’s unrealized gain on hedging ineffectiveness; and (3) the unrealized loss on other investments due to the change in an accounting rule discussed on page 6, which lowered earnings by $0.02 per share. While the Company expects to record additional adjustments to one or more of these items during the remaining six months ending September 30, 2019, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table on page 8.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of earnings of each operating segment for the quarter ended March 31, 2019 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the six months ended March 31, 2019 are summarized on pages 11 and 12). It may be helpful to refer to those tables while reviewing this discussion. Note that management defines Adjusted Operating Results as reported GAAP earnings adjusted for items impacting comparability, and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC ("Seneca"). Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania and California.

												
 	Three Months Ended	
 	March 31,	
(in thousands)	2019	 	2018	 	Variance	
GAAP Earnings	$	21,873		 	$	26,537		 	$	(4,664	)	
Remeasurement of deferred taxes under 2017 Tax Reform	$	—		 	$	790		 	$	(790	)	
Unrealized (gain) loss on hedge ineffectiveness	$	6,742		 	$	(335	)	 	$	7,077		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	$	(1,416	)	 	$	82		 	$	(1,498	)	
Adjusted Operating Results	$	27,199		 	$	27,074		 	$	125		
 	 	 	 	 	 	
Adjusted EBITDA	$	83,580		 	$	78,728		 	$	4,852		

The Exploration and Production segment’s second quarter GAAP earnings decreased $4.7 million versus the prior year, driven primarily by the net impact of unrealized gains and losses that were recognized due to hedge accounting ineffectiveness and an $0.8 million adjustment recorded in the prior year second quarter relating to the remeasurement of deferred income taxes under the 2017 Tax Reform Act. Excluding these items (see table above), the Exploration and Production segment’s second quarter earnings increased $0.1 million as the positive impacts of higher natural gas production and better realized natural gas and crude oil prices were offset by lower crude oil production, higher lease operating and transportation (“LOE”) expense, higher depreciation, depletion and amortization (“DD&A”) expense, and the impact of income taxes.

Seneca’s second quarter net production was 48.8 Bcfe, an increase of 2.7 Bcfe, or 6 percent, from the prior year. Natural gas production increased 3.3 billion cubic feet (“Bcf”), or 8 percent, due primarily to production from new Marcellus and Utica wells completed and connected to sales in Appalachia. Seneca increased production in the WDA-Clermont area by 4.4 Bcf, where Seneca has increased development activity. Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.58 per thousand cubic feet ("Mcf"), an increase of $0.06 per Mcf from the prior year. The improvement was driven primarily by higher NYMEX pricing and local spot pricing in Pennsylvania, which benefited realizations on Seneca’s unhedged production.

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Seneca’s oil production for the second quarter decreased 99 thousand barrels ("Mbbl") due largely to the impact of the sale of Seneca’s Sespe properties in California in the third quarter of fiscal 2018. Seneca's average realized oil price, after the impact of hedging, was $61.01 per barrel ("Bbl"), an increase of $2.70 per Bbl over the prior year. The improvement in oil price realizations was due primarily to stronger price differentials relative to West Texas Intermediate (WTI) index prices at local sales points in California.

LOE expense increased $2.1 million due mostly to higher gathering expenses in Appalachia resulting from the increase in natural gas production coupled with an increase in well repairs, contract labor and steam fuel costs in the West Coast region, partially offset by lower operating costs in California following the sale of Seneca’s Sespe properties. DD&A expense increased $3.9 million due to the increase in production and a higher unit depletion rate.

The 2017 Tax Reform Act lowered the Company’s statutory federal income tax rate from a blended 24.5 percent in fiscal 2018 to 21 percent in fiscal 2019, which decreased the segment’s income tax expense on current period income by $1.0 million. The impact of the lower federal rate on current quarter income was more than offset by the net effect of other items that increased income tax expense by $1.9 million.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

												
 	Three Months Ended	
 	March 31,	
(in thousands)	2019	 	2018	 	Variance	
GAAP Earnings	$	17,749		 	$	22,724		 	$	(4,975	)	
 	 	 	 	 	 	
Adjusted EBITDA	$	41,281		 	$	49,786		 	$	(8,505	)	

The Pipeline and Storage segment’s second quarter GAAP earnings decreased $5.0 million versus the prior year. The decrease was driven primarily by lower operating revenues and higher operation and maintenance (“O&M”) expenses, which were partially offset by lower income tax expense due to the impact of the 2017 Tax Reform Act. The $4.4 million decrease in operating revenues was due largely to the anticipated expiration of a significant firm transportation contract on the Empire system in December 2018. The impact of the contract expiration was partially offset by an increase in Empire’s transportation rates following the Company’s rate case settlement effective January 1, 2019. The settlement remains subject to FERC approval. O&M expense increased $3.1 million due primarily to an increase in compressor and facility maintenance activity during the quarter and higher personnel costs.

The 2017 Tax Reform Act lowered the Company’s statutory federal income tax rate from a blended 24.5 percent in fiscal 2018 to 21 percent in fiscal 2019, which decreased the Pipeline and Storage segment’s income tax expense on current period income by $0.8 million.

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Gathering Segment

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

												
 	Three Months Ended	
 	March 31,	
(in thousands)	2019	 	2018	 	Variance	
GAAP Earnings	$	12,690		 	$	11,770		 	$	920		
Remeasurement of deferred taxes under 2017 Tax Reform	$	—		 	$	400		 	$	(400	)	
Adjusted Operating Results	$	12,690		 	$	12,170		 	$	520		
 	 	 	 	 	 	
Adjusted EBITDA	$	24,598		 	$	24,220		 	$	378		

The $0.9 million increase in the Gathering segment’s second quarter GAAP earnings was driven primarily by higher operating revenues and the net impact of the 2017 Tax Reform Act, which were partially offset by higher O&M expenses. Operating revenues increased $1.6 million, or 6 percent, due primarily to a 2.8 Bcf increase in gathered volume from Seneca’s Appalachian natural gas production. O&M expenses increased $1.3 million in the second quarter due largely to the operation of additional compression facilities along the Covington gathering system, which were acquired from affiliate Seneca in March 2018, and an increase in normal-course preventative compressor maintenance activity at the Clermont gathering system.

The 2017 Tax Reform Act lowered the Company’s statutory federal income tax rate from a blended 24.5 percent in fiscal 2018 to 21 percent in fiscal 2019, which decreased the segment’s income tax expense on current period income by $0.6 million. Additionally, the Gathering segment recorded a $0.4 million adjustment in the prior year second quarter to the remeasurement of deferred income taxes under the 2017 Tax Reform Act, which increased income tax expense and lowered earnings in the prior year.

Downstream Businesses

Utility Segment

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

												
 	Three Months Ended	
 	March 31,	
(in thousands)	2019	 	2018	 	Variance	
GAAP Earnings	$	35,589		 	$	33,360		 	$	2,229		
 	 	 	 	 	 	
Adjusted EBITDA	$	78,688		 	$	80,591		 	$	(1,903	)	

The $2.2 million increase in the Utility segment’s second quarter GAAP earnings was due primarily to higher customer margins and lower interest expense partially offset by the net impact of the 2017 Tax Reform Act. Higher customer usage, an increase in revenues relating to a system modernization tracking mechanism, and the impact of regulatory adjustments contributed to the increase in customer margins. Interest expense decreased $0.6 million due primarily to the Company’s early refinancing of an 8.75 percent coupon 10-year note that was set to mature in May 2019. The $1.9 million increase in O&M expense was substantially offset by the $2.3 million decrease in other deductions, which was largely a result of non-service pension and postretirement benefit costs that are now reported separately from O&M expenses following the adoption of new accounting guidance in the current year.

The 2017 Tax Reform Act lowered the Company’s statutory federal income tax rate from a blended 24.5 percent in fiscal 2018 to 21 percent in fiscal 2019, which decreased income tax expense on current period income by $1.5 million. In accordance with state regulatory orders, the Utility segment has been recording a refund provision to return the net effect of the 2017 Tax Reform Act to its customers. The refund provision recorded during the quarter as a reduction to operating revenues was $3.7

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million higher than the refund provision recorded in the prior year, reducing second quarter earnings by $2.8 million and offsetting the benefit of the lower federal income tax rate.

Energy Marketing Segment

The Energy Marketing segment's operations are carried out by National Fuel Resources, Inc. (“NFR”). NFR markets natural gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.

												
 	Three Months Ended	
 	March 31,	
(in thousands)	2019	 	2018	 	Variance	
GAAP Earnings	$	544		 	$	578		 	$	(34	)	
Remeasurement of deferred taxes under 2017 Tax Reform	$	—		 	$	159		 	$	(159	)	
Adjusted Operating Results	$	544		 	$	737		 	$	(193	)	
 	 	 	 	 	 	
Adjusted EBITDA	$	620		 	$	1,048		 	$	(428	)	

The Energy Marketing segment’s second quarter GAAP earnings were largely unchanged versus the prior year, as the slight decline in customer margins (operating revenues less purchased gas sold) was offset by the impact of an adjustment made in the prior year second quarter to the segment’s remeasurement of deferred income taxes under the 2017 Tax Reform Act.

Corporate and All Other

Corporate and All Other operations had combined earnings of $2.2 million in the current year second quarter, which was $5.3 million higher than the loss of $3.1 million in the prior year second quarter. The increase in earnings was primarily attributable to the impact of the 2017 Tax Reform Act, which resulted in a remeasurement of deferred income taxes that increased the prior year’s second quarter income tax expense by $2.7 million, and the impact of $3.8 million in unrealized gains on investments in equity securities recorded during the quarter ($3.0 million after-tax). Unrealized gains and losses on investments in equity securities are now recognized in earnings following the adoption of new accounting guidance in the current year. These unrealized gains and losses had been previously recorded as other comprehensive income. These increases were partially offset by lower operating revenues from the sale of standing timber by the Company’s land and timber operations.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 3, 2019, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 833-287-0795, using conference ID number “6683755”. For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 800-585-8367 using conference ID number “6683755”. Both the webcast and a telephonic replay will be available until the close of business on Friday, May 10, 2019.

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

	

 	 	 	
Analyst Contact:	Kenneth E. Webster	716-857-7067	
Media Contact:	Karen L. Merkel	716-857-7654	

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

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contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; 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 the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the impact of potential information technology, cybersecurity or data security breaches; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

-more-
7

Page 8.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2019. Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table below.

The Company's earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the six months ended March 31, 2019, including: (1) the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act, which reduced the Company’s income tax expense and benefited consolidated earnings in the six months ended March 31, 2019 by $0.06 per share; (2) the full year impact of the Exploration and Production segment’s unrealized gain on hedging ineffectiveness ; and (3) the unrealized loss on other investments due to the change in an accounting rule discussed on page 6, which lowered earnings by $0.02 per share. While the Company expects to record additional adjustments to one or more of these items during the remaining six months ending September 30, 2019, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	
				
 	Updated FY 2019 Guidance	 	Previous FY 2019 Guidance	
Consolidated Earnings per Share	$3.45 to $3.65	 	$3.45 to $3.65	
Consolidated Effective Tax Rate	~ 24%	 	24% to 25%	
 	 	 	 	
Capital Expenditures  (Millions)	 	 	 	
    Exploration and Production	$460 - $495	 	$460 - $495	
    Pipeline and Storage	$120 - $150	 	$120 - $150	
    Gathering	$55 - $65	 	$55 - $65	
    Utility	$90 - $100	 	$90 - $100	
    Consolidated Capital Expenditures	$725 - $810	 	$725 - $810	
 	 	 	 	
Exploration & Production Segment Guidance	 	 	 	
 	 	 	 	
    Commodity Price Assumptions (1)	 	 	 	
    NYMEX natural gas price	$2.60 /MMBtu	 	$3.25 /MMBtu | $2.75 /MMBtu	
    Appalachian basin spot price	$2.10 /MMBtu	 	$2.75 /MMBtu | $2.25 /MMBtu	
    NYMEX (WTI) crude oil price	$65.00 /Bbl	 	$55.00 /Bbl	
    California oil price (% of WTI)	108%	 	102%	
 	 	 	 	
    Production (Bcfe)	 	 	 	
    East Division - Appalachia	189 to 199	 	194 to 214	
    West Division - California	~ 16	 	~ 16	
    Total Production	205 to 215	 	210 to 230	
 	 	 	 	
    E&P Operating Costs ($/Mcfe)	 	 	 	
    LOE	$0.85 - $0.90	 	$0.85 - $0.90	
    G&A	$0.25 - $0.35	 	$0.25 - $0.35	
    DD&A	$0.70 - $0.75	 	$0.70 - $0.75	
 	 	 	 	
Other Business Segment Guidance (Millions)	 	 	 	
    Gathering Segment Revenues	$125 - $130	 	$130 - $140	
    Pipeline and Storage Segment Revenues	~$285	 	~$285	

(1)  Revised commodity price assumptions reflect the Company's forecast for the remainder of fiscal 2019.

Page 9.

	
																												
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS	
QUARTER ENDED MARCH 31, 2019	
(Unaudited)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
(Thousands of Dollars)	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Second quarter 2018 GAAP earnings	$	26,537		 	$	22,724		 	$	11,770		 	$	33,360		 	$	578		 	$	(3,122	)	 	$	91,847		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Remeasurement of deferred taxes under 2017 Tax Reform	790		 	 	 	400		 	 	 	159		 	2,651		 	4,000		
Unrealized (gain) loss on hedge ineffectiveness	(335	)	 	 	 	 	 	 	 	 	 	 	 	(335	)	
Tax impact of unrealized gain) loss on hedge ineffectiveness	82		 	 	 	 	 	 	 	 	 	 	 	82		
Second quarter 2018 adjusted operating results	27,074		 	22,724		 	12,170		 	33,360		 	737		 	(471	)	 	95,594		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of adjusted operating results**	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Upstream Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) natural gas production	6,261		 	 	 	 	 	 	 	 	 	 	 	6,261		
Higher (lower) crude oil production	(4,359	)	 	 	 	 	 	 	 	 	 	 	 	(4,359	)	
Higher (lower) realized natural gas prices, after hedging	2,018		 	 	 	 	 	 	 	 	 	 	 	2,018		
Higher (lower) realized crude oil prices, after hedging	1,154		 	 	 	 	 	 	 	 	 	 	 	1,154		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream and All Other Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) operating revenues	 	 	(3,336	)	 	1,234		 	 	 	 	 	(699	)	 	(2,801	)	
 	 	 	 	 	 	 	 	 	 	 	 	 		
Downstream Margins***	 	 	 	 	 	 	 	 	 	 	 	 		
Impact of higher usage and weather	 	 	 	 	 	 	618		 	 	 	 	 	618		
System modernization tracker revenues	 	 	 	 	 	 	680		 	 	 	 	 	680		
Lower (higher) refund provision on tax rate change	 	 	 	 	 	 	(2,827	)	 	 	 	 	 	(2,827	)	
Regulatory true-up adjustments	 	 	 	 	 	 	886		 	 	 	 	 	886		
 	 	 	 	 	 	 	 	 	 	 	 	 		
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 		
Lower (higher) lease operating and transportation expenses	(1,610	)	 	 	 	 	 	 	 	 	 	 	 	(1,610	)	
Lower (higher) operating expenses	 	 	(2,359	)	 	(953	)	 	(1,255	)	 	 	 	 	 	(4,567	)	
Lower (higher) depreciation / depletion	(2,946	)	 	 	 	 	 	 	 	 	 	 	 	(2,946	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense)	 	 	 	 	 	 	 	 	 	 	 	 		
(Higher) lower other deductions	 	 	 	 	 	 	1,746		 	 	 	 	 	1,746		
(Higher) lower interest expense	(127	)	 	283		 	123		 	448		 	(6	)	 	276		 	997		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 		
Impact of tax rate reduction due to 2017 Tax Reform	1,010		 	822		 	564		 	1,535		 	23		 	22		 	3,976		
Lower (higher) income tax expense / effective tax rate	(1,910	)	 	81		 	(4	)	 	(44	)	 	11		 	(10	)	 	(1,876	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	634		 	(466	)	 	(444	)	 	442		 	(221	)	 	6		 	(49	)	
Second quarter 2019 adjusted operating results	27,199			17,749			12,690			35,589			544			(876	)		92,895		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized gain (loss) on hedge ineffectiveness	(6,742	)	 	 	 	 	 	 	 	 	 	 	 	(6,742	)	
Tax impact of unrealized gain (loss) on hedge ineffectiveness	1,416		 	 	 	 	 	 	 	 	 	 	 	1,416		
Unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	3,831		 	3,831		
Tax impact of unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	(805	)	 	(805	)	
Second quarter 2019 GAAP earnings	$	21,873		 	$	17,749		 	$	12,690		 	$	35,589		 	$	544		 	$	2,150		 	$	90,595		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".	
*** Downstream margin defined as operating revenues less purchased gas expense.	

Page 10.

	
																												
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE	
QUARTER ENDED MARCH 31, 2019	
(Unaudited)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
 	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Second quarter 2018 GAAP earnings per share	$	0.31		 	$	0.26		 	$	0.14		 	$	0.39		 	$	0.01		 	$	(0.05	)	 	$	1.06		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Remeasurement of deferred taxes under 2017 Tax Reform	0.01		 	 	 	0.01		 	 	 	—		 	0.03		 	0.05		
Unrealized (gain) loss on hedge ineffectiveness	—		 	 	 	 	 	 	 	 	 	 	 	—		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	—		 	 	 	 	 	 	 	 	 	 	 	—		
Rounding	(0.01	)	 	—		 	(0.01	)	 	—		 	—		 	0.02		 	—		
Second quarter 2018 adjusted operating results per share	0.31			0.26			0.14			0.39			0.01			—			1.11		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of adjusted operating results**	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Upstream Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) natural gas production	0.07		 	 	 	 	 	 	 	 	 	 	 	0.07		
Higher (lower) crude oil production	(0.05	)	 	 	 	 	 	 	 	 	 	 	 	(0.05	)	
Higher (lower) realized natural gas prices, after hedging	0.02		 	 	 	 	 	 	 	 	 	 	 	0.02		
Higher (lower) realized crude oil prices, after hedging	0.01		 	 	 	 	 	 	 	 	 	 	 	0.01		
 	 	 	 	 	 	 	 	 	 	 	 	 			
Midstream and All Other Revenues	 	 	 	 	 	 	 	 	 	 	 	 			
Higher (lower) operating revenues	 	 	(0.04	)	 	0.01		 	 	 	 	 	(0.01	)	 	(0.04	)	
 	 	 	 	 	 	 	 	 	 	 	 	 			
Downstream Margins***	 	 	 	 	 	 	 	 	 	 	 	 			
Impact of higher usage and weather	 	 	 	 	 	 	0.01		 	 	 	 	 	0.01		
System modernization tracker revenues	 	 	 	 	 	 	0.01		 	 	 	 	 	0.01		
Lower (higher) refund provision on tax rate change	 	 	 	 	 	 	(0.03	)	 	 	 	 	 	(0.03	)	
Regulatory true-up adjustments	 	 	 	 	 	 	0.01		 	 	 	 	 	0.01		
 	 	 	 	 	 	 	 	 	 	 	 	 			
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 			
Lower (higher) lease operating and transportation expenses	(0.02	)	 	 	 	 	 	 	 	 	 	 	 	(0.02	)	
Lower (higher) operating expenses	 	 	(0.03	)	 	(0.01	)	 	(0.01	)	 	 	 	 	 	(0.05	)	
Lower (higher) depreciation / depletion	(0.03	)	 	 	 	 	 	 	 	 	 	 	 	(0.03	)	
 	 	 	 	 	 	 	 	 	 	 	 	 			
Other Income (Expense)	 	 	 	 	 	 	 	 	 	 	 	 			
(Higher) lower other deductions	 	 	 	 	 	 	0.02		 	 	 	 	 	0.02		
(Higher) lower interest expense	—		 	—		 	—		 	0.01		 	—		 	—		 	0.01		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impact of tax rate reduction due to 2017 Tax Reform	0.01		 	0.01		 	0.01		 	0.02		 	—		 	—		 	0.05		
Lower (higher) income tax expense / effective tax rate	(0.02	)	 	—		 	—		 	—		 	—		 	—		 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 		
All other / rounding	0.01		 	—		 	—		 	(0.02	)	 	—		 	—		 	(0.01	)	
Second quarter 2019 adjusted operating results per share	0.31		 	0.20		 	0.15		 	0.41		 	0.01		 	(0.01	)	 	1.07		
 	 	 	 	 	 	 	 	 	 	 	 	 		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized gain (loss) on hedge ineffectiveness	(0.08	)	 	 	 	 	 	 	 	 	 	 	 	(0.08	)	
Tax impact of unrealized gain (loss) on hedge ineffectiveness	0.02		 	 	 	 	 	 	 	 	 	 	 	0.02		
Unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	0.04		 	0.04		
Tax impact of unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	(0.01	)	 	(0.01	)	
Second quarter 2019 GAAP earnings per share	$	0.25		 	$	0.20		 	$	0.15		 	$	0.41		 	$	0.01		 	$	0.02		 	$	1.04		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".	
*** Downstream margin defined as operating revenues less purchased gas expense.	

Page 11.

	
																												
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS	
SIX MONTHS ENDED MARCH 31, 2019	
(Unaudited)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
(Thousands of Dollars)	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Six months ended March 31, 2018 GAAP earnings	$	133,235		 	$	61,186		 	$	57,169		 	$	54,353		 	$	1,624		 	$	(17,066	)	 	$	290,501		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Remeasurement of deferred taxes under 2017 Tax Reform	(76,510	)	 	(14,100	)	 	(34,500	)	 	 	 	359		 	17,751		 	(107,000	)	
Unrealized (gain) loss on hedge ineffectiveness	98		 	 	 	 	 	 	 	 	 	 	 	98		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	(24	)	 	 	 	 	 	 	 	 	 	 	 	(24	)	
Six months ended March 31, 2018 adjusted operating results	56,799		 	47,086		 	22,669		 	54,353		 	1,983		 	685		 	183,575		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of adjusted operating results**	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Upstream Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) natural gas production	25,603		 	 	 	 	 	 	 	 	 	 	 	25,603		
Higher (lower) crude oil production	(8,915	)	 	 	 	 	 	 	 	 	 	 	 	(8,915	)	
Higher (lower) realized natural gas prices, after hedging	(989	)	 	 	 	 	 	 	 	 	 	 	 	(989	)	
Higher (lower) realized crude oil prices, after hedging	1,973		 	 	 	 	 	 	 	 	 	 	 	1,973		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream and All Other Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) operating revenues	 	 	(1,997	)	 	5,655		 	 	 	 	 	(764	)	 	2,894		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Downstream Margins***	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impact of higher usage and weather	 	 	 	 	 	 	2,220		 	 	 	 	 	2,220		
System modernization tracker revenues	 	 	 	 	 	 	1,568		 	 	 	 	 	1,568		
Lower (higher) refund provision on tax rate change	 	 	 	 	 	 	(2,414	)	 	 	 	 	 	(2,414	)	
Higher (lower) marketing margins	 	 	 	 	 	 	 	 	(2,110	)	 	 	 	(2,110	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) lease operating and transportation expenses	(3,811	)	 	 	 	 	 	 	 	 	 	 	 	(3,811	)	
Lower (higher) operating expenses	(1,328	)	 	(5,350	)	 	(1,502	)	 	(880	)	 	 	 	 	 	(9,060	)	
Lower (higher) property, franchise and other taxes	(1,684	)	 	(539	)	 	 	 	 	 	 	 	 	 	(2,223	)	
Lower (higher) depreciation / depletion	(8,439	)	 	(735	)	 	(782	)	 	 	 	 	 	 	 	(9,956	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Higher) lower other deductions	 	 	 	 	 	 	2,103		 	 	 	 	 	2,103		
(Higher) lower interest expense	32		 	729		 	94		 	1,161		 	(1	)	 	550		 	2,565		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impact of tax rate reduction due to 2017 Tax Reform	2,603		 	1,618		 	1,150		 	2,542		 	(7	)	 	(196	)	 	7,710		
Lower (higher) income tax expense / effective tax rate	(3,094	)	 	1,715		 	(604	)	 	(75	)	 	172		 	97		 	(1,789	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	534		 	324		 	(308	)	 	659		 	8		 	270		 	1,487		
Six months ended March 31, 2019 adjusted operating results	59,284		 	42,851		 	26,372		 	61,237		 	45		 	642		 	190,431		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Remeasurement of deferred taxes under 2017 Tax Reform	990		 	 	 	500		 	 	 	198		 	3,312		 	5,000		
Unrealized gain (loss) on hedge ineffectiveness	(237	)	 	 	 	 	 	 	 	 	 	 	 	(237	)	
Tax impact of unrealized gain (loss) on hedge ineffectiveness	50		 	 	 	 	 	 	 	 	 	 	 	50		
Unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	(2,516	)	 	(2,516	)	
Tax impact of unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	528		 	528		
Six months ended March 31, 2019 GAAP earnings	$	60,087		 	$	42,851		 	$	26,872		 	$	61,237		 	$	243		 	$	1,966		 	$	193,256		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".	
*** Downstream margin defined as operating revenues less purchased gas expense.	

Page 12.

	
																												
NATIONAL FUEL GAS COMPANY	
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE	
SIX MONTHS ENDED MARCH 31, 2019	
(Unaudited)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Upstream	 	Midstream Businesses	 	Downstream Businesses	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Exploration &	 	Pipeline &	 	 	 	 	 	Energy	 	Corporate /	 	 	
 	Production	 	Storage	 	Gathering	 	Utility	 	Marketing	 	All Other	 	Consolidated*	
Six months ended March 31, 2018 GAAP earnings per share	$	1.54		 	$	0.71		 	$	0.66		 	$	0.63		 	$	0.02		 	$	(0.19	)	 	$	3.37		
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Remeasurement of deferred taxes under 2017 Tax Reform	(0.89	)	 	(0.16	)	 	(0.40	)	 	 	 	—		 	0.21		 	(1.24	)	
Unrealized (gain) loss on hedge ineffectiveness	—		 	 	 	 	 	 	 	 	 	 	 	—		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	—		 	 	 	 	 	 	 	 	 	 	 	—		
Rounding	0.01		 	—		 	—		 	—		 	—		 	(0.01	)	 	—		
Six months ended March 31, 2018 adjusted operating results per share	0.66		 	0.55		 	0.26		 	0.63		 	0.02		 	0.01		 	2.13		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Drivers of adjusted operating results**	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Upstream Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) natural gas production	0.30		 	 	 	 	 	 	 	 	 	 	 	0.30		
Higher (lower) crude oil production	(0.10	)	 	 	 	 	 	 	 	 	 	 	 	(0.10	)	
Higher (lower) realized natural gas prices, after hedging	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	
Higher (lower) realized crude oil prices, after hedging	0.02		 	 	 	 	 	 	 	 	 	 	 	0.02		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream and All Other Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	
Higher (lower) operating revenues	 	 	(0.02	)	 	0.07		 	 	 	 	 	(0.01	)	 	0.04		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Downstream Margins***	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impact of higher usage and weather	 	 	 	 	 	 	0.03		 	 	 	 	 	0.03		
System modernization tracker revenues	 	 	 	 	 	 	0.02		 	 	 	 	 	0.02		
Lower (higher) refund provision on tax rate change	 	 	 	 	 	 	(0.03	)	 	 	 	 	 	(0.03	)	
Higher (lower) marketing margins	 	 	 	 	 	 	 	 	(0.02	)	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lower (higher) lease operating and transportation expenses	(0.04	)	 	 	 	 	 	 	 	 	 	 	 	(0.04	)	
Lower (higher) operating expenses	(0.02	)	 	(0.06	)	 	(0.02	)	 	(0.01	)	 	 	 	 	 	(0.11	)	
Lower (higher) property, franchise and other taxes	(0.02	)	 	(0.01	)	 	 	 	 	 	 	 	 	 	(0.03	)	
Lower (higher) depreciation / depletion	(0.10	)	 	(0.01	)	 	(0.01	)	 	 	 	 	 	 	 	(0.12	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Higher) lower other deductions	 	 	 	 	 	 	0.02		 	 	 	 	 	0.02		
(Higher) lower interest expense	—		 	0.01		 	—		 	0.01		 	—		 	0.01		 	0.03		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impact of tax rate reduction due to 2017 Tax Reform	0.03		 	0.02		 	0.01		 	0.03		 	—		 	—		 	0.09		
Lower (higher) income tax expense / effective tax rate	(0.04	)	 	0.02		 	(0.01	)	 	—		 	—		 	—		 	(0.03	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
All other / rounding	—		 	(0.01	)	 	—		 	0.01		 	—		 	0.01		 	0.01		
Six months ended March 31, 2019 adjusted operating results per share	0.68		 	0.49		 	0.30		 	0.71		 	—		 	0.02		 	2.20		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Items impacting comparability:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Remeasurement of deferred taxes under 2017 Tax Reform	0.01		 	 	 	0.01		 	 	 	—		 	0.04		 	0.06		
Unrealized gain (loss) on hedge ineffectiveness	—		 	 	 	 	 	 	 	 	 	 	 	—		
Tax impact of unrealized gain (loss) on hedge ineffectiveness	—		 	 	 	 	 	 	 	 	 	 	 	—		
Unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	(0.03	)	 	(0.03	)	
Tax impact of unrealized gain (loss) on other investments	 	 	 	 	 	 	 	 	 	 	0.01		 	0.01		
Rounding	 	 	 	 	 	 	 	 	 	 	(0.01	)	 	(0.01	)	
Six months ended March 31, 2019 GAAP earnings per share	$	0.69		 	$	0.49		 	$	0.31		 	$	0.71		 	$	—		 	$	0.03		 	$	2.23		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
* Amounts do not reflect intercompany eliminations	 	 	 	 	 	 	 	 	 	 	 	 	 	
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".	
*** Downstream margin defined as operating revenues less purchased gas expense.	

Page 13.

	

 	 	 	 	 				 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 				 	
(Thousands of Dollars, except per share amounts)	 	 	 	 				 	
 	Three Months Ended	 	Six Months Ended	 	
 	March 31,	 	March 31,	 	
 	(Unaudited)	 	(Unaudited)	 	
SUMMARY OF OPERATIONS	2019	 	2018	 	2019		2018	 	
Operating Revenues:		 	 	 	 		 	 	
Utility and Energy Marketing Revenues	$	357,654		 	$	339,422		 	$	629,747		 	$	565,147		 	
Exploration and Production and Other Revenues	146,467		 	147,868		 	310,403		 	288,318		 	
Pipeline and Storage and Gathering Revenues	48,423		 	53,615		 	102,641		 	107,096		 	
 	552,544			540,905		 	1,042,791			960,561		 	
Operating Expenses:	 	 	 	 						 	
Purchased Gas	195,037		 	176,608		 	333,697			270,642		 	
Operation and Maintenance:			 			 						 	
      Utility and Energy Marketing	48,559		 	46,708		 	92,475		 	90,789		 	
      Exploration and Production and Other	40,141		 	39,127		 	72,936		 	74,209		 	
      Pipeline and Storage and Gathering	27,249		 	22,916		 	52,182		 	43,227		 	
Property, Franchise and Other Taxes	22,535		 	22,802		 	46,540			43,650		 	
Depreciation, Depletion and Amortization	65,664		 	61,155		 	129,918			116,985		 	
 	399,185		 	369,316		 	727,748			639,502		 	
 	 	 	 	 						 	
Operating Income	153,359		 	171,589		 	315,043			321,059		 	
 	 	 	 	 						 	
Other Income (Expense):	 	 	 	 						 	
Other Income (Deductions)	(5,919	)	 	(13,092	)	 	(15,521	)		(16,594	)	 	
Interest Expense on Long-Term Debt	(25,273	)	 	(27,148	)	 	(50,713	)		(55,235	)	 	
Other Interest Expense	(1,787	)	 	(1,233	)	 	(2,860	)		(1,736	)	 	
 	 	 	 	 						 	
Income Before Income Taxes	120,380		 	130,116		 	245,949			247,494		 	
 	 	 	 	 						 	
Income Tax Expense (Benefit)	29,785		 	38,269		 	52,693			(43,007	)	 	
 	 	 	 	 						 	
Net Income Available for Common Stock	$	90,595		 	$	91,847		 	$	193,256			$	290,501		 	
 	 	 	 	 				 	
Earnings Per Common Share	 	 	 	 				 	
Basic	$	1.05		 	$	1.07		 	$	2.24			$	3.39		 	
Diluted	$	1.04		 	$	1.06		 	$	2.23			$	3.37		 	
 	 	 	 	 				 	
Weighted Average Common Shares:	 	 	 	 				 	
Used in Basic Calculation	86,290,047		 	85,809,233		 	86,159,932			85,718,779		 	
Used in Diluted Calculation	86,767,673		 	86,323,636		 	86,738,809			86,318,892		 	

Page 14.

	
								
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
CONSOLIDATED BALANCE SHEETS	
(Unaudited)	
 	 	
 	March 31,	 	September 30,	
(Thousands of Dollars)	2019	 	2018	
 	 	 	 	
ASSETS	 	 	 	
Property, Plant and Equipment		$10,788,894		 		$10,439,839		
Less - Accumulated Depreciation, Depletion and Amortization	5,573,020		 	5,462,696		
Net Property, Plant and Equipment	5,215,874		 	4,977,143		
 	 	 	 	
Current Assets:	 	 	 	
Cash and Temporary Cash Investments	100,643		 	229,606		
Hedging Collateral Deposits	1,983		 	3,441		
Receivables - Net	235,586		 	141,498		
Unbilled Revenue	60,196		 	24,182		
Gas Stored Underground	6,848		 	37,813		
Materials and Supplies - at average cost	37,695		 	35,823		
Unrecovered Purchased Gas Costs	5,760		 	4,204		
Other Current Assets	57,586		 	68,024		
Total Current Assets	506,297		 	544,591		
 	 	 	 	
Other Assets:	 	 	 	
Recoverable Future Taxes	113,441		 	115,460		
Unamortized Debt Expense	14,922		 	15,975		
Other Regulatory Assets	108,193		 	112,918		
Deferred Charges	39,634		 	40,025		
Other Investments	135,022		 	132,545		
Goodwill	5,476		 	5,476		
Prepaid Post-Retirement Benefit Costs	86,802		 	82,733		
Fair Value of Derivative Financial Instruments	11,130		 	9,518		
Other	42,184		 	102		
Total Other Assets	556,804		 	514,752		
Total Assets		$6,278,975		 		$6,036,486		
 	 	 	 	
CAPITALIZATION AND LIABILITIES	 	 	 	
Capitalization:	 	 	 	
Comprehensive Shareholders' Equity	 	 	 	
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and	 	 	 	
Outstanding - 86,300,675 Shares and 85,956,814 Shares, Respectively		$86,301		 		$85,957		
Paid in Capital	821,837		 	820,223		
Earnings Reinvested in the Business	1,236,657		 	1,098,900		
Accumulated Other Comprehensive Loss	(54,286	)	 	(67,750	)	
Total Comprehensive Shareholders' Equity	2,090,509		 	1,937,330		
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs	2,132,488		 	2,131,365		
Total Capitalization	4,222,997		 	4,068,695		
 	 	 	 	
Current and Accrued Liabilities:	 	 	 	
Notes Payable to Banks and Commercial Paper	—		 	—		
Current Portion of Long-Term Debt	—		 	—		
Accounts Payable	141,851		 	160,031		
Amounts Payable to Customers	15,463		 	3,394		
Dividends Payable	36,678		 	36,532		
Interest Payable on Long-Term Debt	18,508		 	19,062		
Customer Advances	433		 	13,609		
Customer Security Deposits	18,519		 	25,703		
Other Accruals and Current Liabilities	195,797		 	132,693		
Fair Value of Derivative Financial Instruments	5,749		 	49,036		
Total Current and Accrued Liabilities	432,998		 	440,060		
 	 	 	 	
Deferred Credits:	 	 	 	
Deferred Income Taxes	618,850		 	512,686		
Taxes Refundable to Customers	365,380		 	370,628		
Cost of Removal Regulatory Liability	215,864		 	212,311		
Other Regulatory Liabilities	156,722		 	146,743		
Pension and Other Post-Retirement Liabilities	49,213		 	66,103		
Asset Retirement Obligations	104,138		 	108,235		
Other Deferred Credits	112,813		 	111,025		
Total Deferred Credits	1,622,980		 	1,527,731		
Commitments and Contingencies	—		 	—		
Total Capitalization and Liabilities		$6,278,975		 		$6,036,486		

Page 15.

	

 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
CONSOLIDATED STATEMENTS OF CASH FLOWS	
(Unaudited)	
 	 	Six Months Ended	
 	 	March 31,	
(Thousands of Dollars)	 	2019	 	2018	
 	 	 	 	 	
Operating Activities:	 	 	 	 	
Net Income Available for Common Stock	 	$	193,256		 	$	290,501		
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:	 	 	 	 	
Depreciation, Depletion and Amortization	 	129,918		 	116,985		
Deferred Income Taxes	 	90,468		 	(62,459	)	
Stock-Based Compensation	 	10,731		 	7,862		
Other	 	7,997		 	8,052		
Change in:	 	 	 	 	
Receivables and Unbilled Revenue	 	(130,377	)	 	(123,954	)	
Gas Stored Underground and Materials and Supplies	 	29,093		 	28,004		
Unrecovered Purchased Gas Costs	 	(1,556	)	 	4,197		
Other Current Assets	 	10,438		 	(8,819	)	
Accounts Payable	 	10,226		 	10,838		
Amounts Payable to Customers	 	12,069		 	12,083		
Customer Advances	 	(13,176	)	 	(15,547	)	
Customer Security Deposits	 	(7,184	)	 	(1,399	)	
Other Accruals and Current Liabilities	 	48,028		 	37,646		
Other Assets	 	(38,686	)	 	(9,541	)	
Other Liabilities	 	(10,410	)	 	(5,767	)	
Net Cash Provided by Operating Activities	 	$	340,835		 	$	288,682		
 	 	 	 	 	
Investing Activities:	 	 	 	 	
Capital Expenditures	 	$	(386,579	)	 	$	(261,720	)	
Net Proceeds from Sale of Oil and Gas Producing Properties	 	—		 	17,310		
Other	 	(2,616	)	 	5,355		
Net Cash Used in Investing Activities	 	$	(389,195	)	 	$	(239,055	)	
 	 	 	 	 	
Financing Activities:	 	 	 	 	
Reduction of Long-Term Debt	 	$	—		 	$	(307,047	)	
Dividends Paid on Common Stock	 	(73,197	)	 	(71,091	)	
Net Proceeds from Issuance (Repurchase) of Common Stock	 	(8,864	)	 	2,891		
Net Cash Used in Financing Activities	 	$	(82,061	)	 	$	(375,247	)	
 	 	 	 	 	
Net Decrease in Cash, Cash Equivalents, and Restricted Cash	 	(130,421	)		(325,620	)	
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	 	233,047		 	557,271		
Cash, Cash Equivalents, and Restricted Cash at March 31	 	$	102,626		 	$	231,651		

Page 16.

	

 	 	 	 	 	 	 				
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 				
SEGMENT OPERATING RESULTS AND STATISTICS	
(UNAUDITED)	
 	 	 	 	 	 	 				
UPSTREAM BUSINESS	

 	Three Months Ended	 	Six Months Ended	
(Thousands of Dollars, except per share amounts)	March 31,	 	March 31,	
EXPLORATION AND PRODUCTION SEGMENT	2019	 	2018	 	Variance	 	2019	2018	Variance	
Total Operating Revenues	$	146,102		 	$	146,411		 	$	(309	)	 	$	308,978		$	285,552		$	23,426		
 	 	 	 	 	 	 							
Operating Expenses:	 	 	 	 	 	 							
Operation and Maintenance:	 	 	 	 	 	 							
General and Administrative Expense	17,113		 	16,748		 	365		 	32,312		30,350		1,962		
Lease Operating and Transportation Expense	45,941		 	43,808		 	2,133		 	88,503		83,455		5,048		
All Other Operation and Maintenance Expense	2,900		 	2,919		 	(19	)	 	5,252		5,454		(202	)	
Property, Franchise and Other Taxes	3,310		 	3,873		 	(563	)	 	9,673		7,443		2,230		
Depreciation, Depletion and Amortization	35,888		 	31,986		 	3,902		 	70,588		59,411		11,177		
 	105,152		 	99,334		 	5,818		 	206,328		186,113		20,215		
 	 	 	 	 	 	 							
Operating Income	40,950		 	47,077		 	(6,127	)	 	102,650		99,439		3,211		
 	 	 	 	 	 	 							
Other Income (Expense):	 	 	 	 	 	 							
Other Income (Deductions)	275		 	12		 	263		 	554		15		539		
Other Interest Expense	(13,548	)	 	(13,380	)	 	(168	)	 	(26,711	)	(26,753	)	42		
 	 	 	 	 	 	 							
Income Before Income Taxes	27,677		 	33,709		 	(6,032	)	 	76,493		72,701		3,792		
Income Tax Expense (Benefit)	5,804		 	7,172		 	(1,368	)	 	16,406		(60,534	)	76,940		
Net Income	$	21,873		 	$	26,537		 	$	(4,664	)	 	$	60,087		$	133,235		$	(73,148	)	
 	 	 	 	 	 	 							
Net Income Per Share (Diluted)	$	0.25		 	$	0.31		 	$	(0.06	)	 	$	0.69		$	1.54		$	(0.85	)	

Page 17.

	

NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	 	 	
SEGMENT OPERATING RESULTS AND STATISTICS	
(UNAUDITED)	
 	 	 	 	 	 	 	 	 	 	
MIDSTREAM BUSINESSES	

 	Three Months Ended	 	Six Months Ended	
(Thousands of Dollars, except per share amounts)	March 31,	 	March 31,	
PIPELINE AND STORAGE SEGMENT	2019	 	2018	 	Variance	 	2019	2018	Variance	
Revenues from External Customers	$	48,421		 	$	53,714		 	$	(5,293	)	 	$	102,639		$	107,025		$	(4,386	)	
Intersegment Revenues	23,918		 	23,044		 	874		 	46,769		45,028		1,741		
Total Operating Revenues	72,339		 	76,758		 	(4,419	)	 	149,408		152,053		(2,645	)	
 	 	 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Purchased Gas	510		 	55		 	455		 	813		161		652		
Operation and Maintenance	22,907		 	19,782		 	3,125		 	44,540		37,454		7,086		
Property, Franchise and Other Taxes	7,641		 	7,135		 	506		 	14,949		14,235		714		
Depreciation, Depletion and Amortization	11,293		 	10,838		 	455		 	22,407		21,434		973		
 	42,351		 	37,810		 	4,541		 	82,709		73,284		9,425		
 	 	 	 	 	 	 	 	 	 	
Operating Income	29,988		 	38,948		 	(8,960	)	 	66,699		78,769		(12,070	)	
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	
Other Income (Deductions)	1,973		 	1,173		 	800		 	3,899		2,819		1,080		
Interest Expense	(7,500	)	 	(7,875	)	 	375		 	(14,786	)	(15,752	)	966		
 	 	 	 	 	 	 	 	 	 	
Income Before Income Taxes	24,461		 	32,246		 	(7,785	)	 	55,812		65,836		(10,024	)	
Income Tax Expense	6,712		 	9,522		 	(2,810	)	 	12,961		4,650		8,311		
Net Income	$	17,749		 	$	22,724		 	$	(4,975	)	 	$	42,851		$	61,186		$	(18,335	)	
 	 	 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	0.20		 	$	0.26		 	$	(0.06	)	 	$	0.49		$	0.71		$	(0.22	)	

 	Three Months Ended	 	Six Months Ended	
 	March 31,	 	March 31,	
GATHERING SEGMENT	2019	 	2018	 	Variance	 	2019	2018	Variance	
Revenues from External Customers	$	2		 	$	(99	)	 	$	101		 	$	2		$	71		$	(69	)	
Intersegment Revenues	29,366		 	27,832		 	1,534		 	59,056		51,497		7,559		
Total Operating Revenues	29,368		 	27,733		 	1,635		 	59,058		51,568		7,490		
 	 	 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Operation and Maintenance	4,752		 	3,490		 	1,262		 	8,464		6,474		1,990		
Property, Franchise and Other Taxes	18		 	23		 	(5	)	 	48		61		(13	)	
Depreciation, Depletion and Amortization	4,673		 	4,227		 	446		 	9,351		8,315		1,036		
 	9,443		 	7,740		 	1,703		 	17,863		14,850		3,013		
 	 	 	 	 	 	 	 	 	 	
Operating Income	19,925		 	19,993		 	(68	)	 	41,195		36,718		4,477		
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 		 	 	 		
Other Income (Deductions)	189		 	337		 	(148	)	 	232		651		(419	)	
Interest Expense	(2,345	)	 	(2,508	)	 	163		 	(4,723	)	(4,847	)	124		
 	 	 	 	 	 	 	 	 	 	
Income Before Income Taxes	17,769		 	17,822		 	(53	)	 	36,704		32,522		4,182		
Income Tax Expense (Benefit)	5,079		 	6,052		 	(973	)	 	9,832		(24,647	)	34,479		
Net Income	$	12,690		 	$	11,770		 	$	920		 	$	26,872		$	57,169		$	(30,297	)	
 	 	 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	0.15		 	$	0.14		 	$	0.01		 	$	0.31		$	0.66		$	(0.35	)	

Page 18.

	

 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	 	 	
SEGMENT OPERATING RESULTS AND STATISTICS	
(UNAUDITED)	
 	 	 	 	 	 	 	 	 	 	
DOWNSTREAM BUSINESSES	

 	Three Months Ended	 	Six Months Ended	
(Thousands of Dollars, except per share amounts)	March 31,	 	March 31,	
UTILITY SEGMENT	2019	 	2018	 	Variance	 	2019	2018	Variance	
Revenues from External Customers	$	298,636		 	$	283,778		 	$	14,858		 	$	518,647		$	470,867		$	47,780		
Intersegment Revenues	4,394		 	5,700		 	(1,306	)	 	7,040		7,882		(842	)	
Total Operating Revenues	303,030		 	289,478		 	13,552		 	525,687		478,749		46,938		
 	 	 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Purchased Gas	165,235		 	151,493		 	13,742		 	277,115		233,418		43,697		
Operation and Maintenance	47,795		 	45,885		 	1,910		 	90,950		89,203		1,747		
Property, Franchise and Other Taxes	11,312		 	11,509		 	(197	)	 	21,365		21,388		(23	)	
Depreciation, Depletion and Amortization	13,365		 	13,340		 	25		 	26,656		26,665		(9	)	
 	237,707		 	222,227		 	15,480		 	416,086		370,674		45,412		
 	 	 	 	 	 	 	 	 	 	
Operating Income	65,323		 	67,251		 	(1,928	)	 	109,601		108,075		1,526		
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	
Other Income (Deductions)	(11,618	)	 	(13,930	)	 	2,312		 	(17,834	)	(20,620	)	2,786		
Interest Expense	(6,263	)	 	(6,857	)	 	594		 	(12,157	)	(13,695	)	1,538		
 	 	 	 	 	 	 	 	 	 	
Income Before Income Taxes	47,442		 	46,464		 	978		 	79,610		73,760		5,850		
Income Tax Expense	11,853		 	13,104		 	(1,251	)	 	18,373		19,407		(1,034	)	
Net Income	$	35,589		 	$	33,360		 	$	2,229		 	$	61,237		$	54,353		$	6,884		
 	 	 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	0.41		 	$	0.39		 	$	0.02		 	$	0.71		$	0.63		$	0.08		

 	Three Months Ended	 	Six Months Ended	
 	March 31,	 	March 31,	
ENERGY MARKETING SEGMENT	2019	 	2018	 	Variance	 	2019	2018	Variance	
Revenues from External Customers	$	59,018		 	$	55,644		 	$	3,374		 	$	111,100		$	94,280		$	16,820		
Intersegment Revenues	43		 	(51	)	 	94		 	375		76		299		
Total Operating Revenues	59,061		 	55,593		 	3,468		 	111,475		94,356		17,119		
 	 	 	 	 	 	 	 	 	 	
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Purchased Gas	56,820		 	52,980		 	3,840		 	108,337		88,423		19,914		
Operation and Maintenance	1,621		 	1,565		 	56		 	3,239		3,079		160		
Depreciation, Depletion and Amortization	71		 	68		 	3		 	141		138		3		
 	58,512		 	54,613		 	3,899		 	111,717		91,640		20,077		
 	 	 	 	 	 	 	 	 	 	
Operating Income (Loss)	549		 	980		 	(431	)	 	(242	)	2,716		(2,958	)	
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	
Other Income (Deductions)	198		 	59		 	139		 	245		72		173		
Interest Expense	(8	)	 	—		 	(8	)	 	(13	)	(12	)	(1	)	
 	 	 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	739		 	1,039		 	(300	)	 	(10	)	2,776		(2,786	)	
Income Tax Expense (Benefit)	195		 	461		 	(266	)	 	(253	)	1,152		(1,405	)	
Net Income	$	544		 	$	578		 	$	(34	)	 	$	243		$	1,624		$	(1,381	)	
 	 	 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	0.01		 	$	0.01		 	$	—		 	$	—		$	0.02		$	(0.02	)	

Page 19.

	
																						
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	 	 	
SEGMENT OPERATING RESULTS AND STATISTICS	
(UNAUDITED)	
 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Six Months Ended	
(Thousands of Dollars, except per share amounts)	March 31,	 	March 31,	
ALL OTHER	2019	 	2018	 	Variance	 	2019	2018	Variance	
Total Operating Revenues	$	310		 	$	1,232		 	$	(922	)	 	$	1,316		$	2,328		$	(1,012	)	
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Operation and Maintenance	323		 	357		 	(34	)	 	583		671		(88	)	
Property, Franchise and Other Taxes	134		 	145		 	(11	)	 	270		288		(18	)	
Depreciation, Depletion and Amortization	183		 	506		 	(323	)	 	395		645		(250	)	
 	640		 	1,008		 	(368	)	 	1,248		1,604		(356	)	
 	 	 	 	 	 	 	 	 	 	
Operating Income (Loss)	(330	)	 	224		 	(554	)	 	68		724		(656	)	
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	
Other Income (Deductions)	151		 	81		 	70		 	288		143		145		
 	 	 	 	 	 	 	 	 	 	
Income (Loss) Before Income Taxes	(179	)	 	305		 	(484	)	 	356		867		(511	)	
Income Tax Expense (Benefit)	(51	)	 	98		 	(149	)	 	100		1,378		(1,278	)	
Net Income (Loss)	$	(128	)	 	$	207		 	$	(335	)	 	$	256		$	(511	)	$	767		
 	 	 	 	 	 	 	 	 	 	
Net Income (Loss) Per Share (Diluted)	$	—		 	$	—		 	$	—		 	$	0.01		$	—		$	0.01		

 	Three Months Ended	 	Six Months Ended	
 	March 31,	 	March 31,	
CORPORATE	2019	 	2018	 	Variance	 	2019	2018	Variance	
Revenues from External Customers	$	55		 	$	225		 	$	(170	)	 	$	109		$	438		$	(329	)	
Intersegment Revenues	1,165		 	999		 	166		 	2,329		1,999		330		
Total Operating Revenues	1,220		 	1,224		 	(4	)	 	2,438		2,437		1		
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Operation and Maintenance	3,955		 	3,801		 	154		 	6,751		7,207		(456	)	
Property, Franchise and Other Taxes	120		 	117		 	3		 	235		235		—		
Depreciation, Depletion and Amortization	191		 	190		 	1		 	380		377		3		
 	4,266		 	4,108		 	158		 	7,366		7,819		(453	)	
 	 	 	 	 	 	 	 	 	 	
Operating Loss	(3,046	)	 	(2,884	)	 	(162	)	 	(4,928	)	(5,382	)	454		
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	
Other Income (Deductions)	32,114		 	30,122		 	1,992		 	54,992		62,591		(7,599	)	
Interest Expense on Long-Term Debt	(25,273	)	 	(27,148	)	 	1,875		 	(50,713	)	(55,235	)	4,522		
Other Interest Expense	(1,324	)	 	(1,559	)	 	235		 	(2,367	)	(2,942	)	575		
 	 	 	 	 	 	 	 	 	 	
Income (Loss) before Income Taxes	2,471		 	(1,469	)	 	3,940		 	(3,016	)	(968	)	(2,048	)	
Income Tax Expense (Benefit)	193		 	1,860		 	(1,667	)	 	(4,726	)	15,587		(20,313	)	
Net Income (Loss)	$	2,278		 	$	(3,329	)	 	$	5,607		 	$	1,710		$	(16,555	)	$	18,265		
 	 	 	 	 	 	 	 	 	 	
Net Income (Loss) Per Share (Diluted)	$	0.02		 	$	(0.05	)	 	$	0.07		 	$	0.02		$	(0.19	)	$	0.21		

 	Three Months Ended	 	Six Months Ended	
 	March 31,	 	March 31,	
INTERSEGMENT ELIMINATIONS	2019	 	2018	 	Variance	 	2019	2018	Variance	
Intersegment Revenues	$	(58,886	)	 	$	(57,524	)	 	$	(1,362	)	 	$	(115,569	)	$	(106,482	)	$	(9,087	)	
Operating Expenses:	 	 	 	 	 	 	 	 	 	
Purchased Gas	(27,528	)	 	(27,920	)	 	392		 	(52,568	)	(51,360	)	(1,208	)	
Operation and Maintenance	(31,358	)	 	(29,604	)	 	(1,754	)	 	(63,001	)	(55,122	)	(7,879	)	
 	(58,886	)	 	(57,524	)	 	(1,362	)	 	(115,569	)	(106,482	)	(9,087	)	
 	 	 	 	 	 	 	 	 	 	
Operating Income	—		 	—		 	—		 	—		—		—		
 	 	 	 	 	 	 	 	 	 	
Other Income (Expense):	 	 	 	 	 	 	 	 	 	
Other Income (Deductions)	(29,201	)	 	(30,946	)	 	1,745		 	(57,897	)	(62,265	)	4,368		
Interest Expense	29,201		 	30,946		 	(1,745	)	 	57,897		62,265		(4,368	)	
Net Income	$	—		 	$	—		 	$	—		 	$	—		$	—		$	—		
 	 	 	 	 	 	 	 	 	 	
Net Income Per Share (Diluted)	$	—		 	$	—		 	$	—		 	$	—		$	—		$	—		

Page 20.

	

 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	 	 	 	 	
SEGMENT INFORMATION (Continued)	
(Thousands of Dollars)	

 	Three Months Ended	 	Six Months Ended	
 	March 31,	 	March 31,	
 	(Unaudited)	 	(Unaudited)	
 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	2019	 	2018	 	(Decrease)	 	2019	 	2018	 	(Decrease)	
 	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures:	 	 	 	 	 	 	 	 	 	 	 	
Exploration and Production	$	142,571		(1)  	$	84,559		(3)  	$	58,012		 	$	262,786		(1)(2)  	$	159,285		(3)(4)  	$	103,501		
Pipeline and Storage	22,674		(1)  	15,167		(3)  	7,507		 	52,638		(1)(2)  	37,440		(3)(4)  	15,198		
Gathering	12,680		(1)  	19,352		(3)  	(6,672	)	 	21,470		(1)(2)  	32,283		(3)(4)  	(10,813	)	
Utility	19,735		(1)  	15,755		(3)  	3,980		 	35,657		(1)(2)  	32,290		(3)(4)  	3,367		
Energy Marketing	22		 	4		 	18		 	41		 	22		 	19		
Total Reportable Segments	197,682			134,837			62,845			372,592			261,320			111,272		
All Other	—		 	—		 	—		 	—		 	1		 	(1	)	
Corporate	85		 	15		 	70		 	103		 	44		 	59		
Eliminations	—		 	(19,922	)	 	19,922		 	—		 	(19,922	)	 	19,922		
Total Capital Expenditures	$	197,767		 	$	114,930		 	$	82,837		 	$	372,695		 	$	241,443		 	$	131,252		

		
(1)  	Capital expenditures for the quarter and six months ended March 31, 2019, include accounts payable and accrued liabilities related to capital expenditures of $53.4 million, $10.7 million, $7.4 million, and $3.4 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2019, since they represent non-cash investing activities at that date.	

(2)  	Capital expenditures for the six months ended March 31, 2019, exclude capital expenditures of $51.3 million, $21.9 million, $6.1 million and $9.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2018 and paid during the six months ended March 31, 2019. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2018, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2019.	

(3)  	Capital expenditures for the quarter and six months ended March 31, 2018, include accounts payable and accrued liabilities related to capital expenditures of $38.8 million, $9.0 million, $1.6 million, and $2.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2018, since they represent non-cash investing activities at that date.	

(4)  	Capital expenditures for the six months ended March 31, 2018, exclude capital expenditures of $36.5 million, $25.1 million, $3.9 million and $6.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2017 and paid during the six months ended March 31, 2018. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2018.	

	

DEGREE DAYS	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	Percent Colder	
 	 	 	 	 	 	 	(Warmer) Than:	
Three Months Ended March 31	Normal	 	2019	 	2018	 	  Normal (1)	 	Last Year (1)	
 	 	 	 	 	 	 	 	 	 	
Buffalo, NY	3,290	 	3,372	 	3,208	 	2.5		 	5.1		
Erie, PA	3,108	 	3,096	 	3,075	 	(0.4	)	 	0.7		
 	 	 	 	 	 	 	 	 	 	
Six Months Ended March 31	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Buffalo, NY	5,543	 	5,697	 	5,435	 	2.8		 	4.8		
Erie, PA	5,152	 	5,126	 	5,104	 	(0.5	)	 	0.4		

(1)  	Percents compare actual 2019 degree days to normal degree days and actual 2019 degree days to actual 2018 degree days.	

Page 21.

	

 	 	 	 	 	 	 	 	 	 	 	 	 	
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPLORATION AND PRODUCTION INFORMATION	

 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2019	 	2018	 	(Decrease)	 	2019	 	2018	 	(Decrease)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gas Production/Prices:	 	 	 	 	 	 	 	 	 	 	 	 	
Production (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	44,883		 	41,403		 	3,480		 	90,188		 	76,817		 	13,371		
West Coast	 	487		 	675		 	(188	)	 	989		 	1,370		 	(381	)	
Total Production	 	45,370		 	42,078		 	3,292		 	91,177		 	78,187		 	12,990		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Prices (Per Mcf)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	$	2.65		 	$	2.46		 	$	0.19		 	$	2.79		 	$	2.41		 	$	0.38		
West Coast	 	6.06		 	4.40		 	1.66		 	6.40		 	4.70		 	1.70		
Weighted Average	 	2.69		 	2.49		 	0.20		 	2.83		 	2.45		 	0.38		
Weighted Average after Hedging	 	2.58		 	2.52		 	0.06		 	2.60		 	2.61		 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil Production/Prices:	 	 	 	 	 	 	 	 	 	 	 	 	
Production (Thousands of Barrels)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	1		 	1		 	—		 	2		 	2		 	—		
West Coast	 	563		 	662		 	(99	)	 	1,134		 	1,334		 	(200	)	
Total Production	 	564		 	663		 	(99	)	 	1,136		 	1,336		 	(200	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Prices (Per Barrel)	 	 	 	 	 	 	 	 	 	 	 	 	
Appalachia	 	$	47.54		 	$	58.54		 	$	(11.00	)	 	$	55.93		 	$	49.82		 	$	6.11		
West Coast	 	61.85		 	65.39		 	(3.54	)	 	63.79		 	61.61		 	2.18		
Weighted Average	 	61.82		 	65.39		 	(3.57	)	 	63.78		 	61.60		 	2.18		
Weighted Average after Hedging	 	61.01		 	58.31		 	2.70		 	61.36		 	59.05		 	2.31		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Production (MMcfe)	 	48,754		 	46,056		 	2,698		 	97,993		 	86,203		 	11,790		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Selected Operating Performance Statistics:	 	 	 	 	 	 	 	 	 	 	 	 	
General & Administrative Expense per Mcfe (1)	 	$	0.35		 	$	0.36		 	$	(0.01	)	 	$	0.33		 	$	0.35		 	$	(0.02	)	
Lease Operating and Transportation Expense per Mcfe (1)(2)	 	$	0.94		 	$	0.95		 	$	(0.01	)	 	$	0.90		 	$	0.97		 	$	(0.07	)	
Depreciation, Depletion & Amortization per Mcfe (1)	 	$	0.74		 	$	0.69		 	$	0.05		 	$	0.72		 	$	0.69		 	$	0.03		

		
(1)  	Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.	

(2)  	Amounts include transportation expense of $0.56 and $0.54 per Mcfe for the three months ended March 31, 2019 and March 31, 2018, respectively. Amounts include transportation expense of $0.55 and $0.54 per Mcfe for the six months ended March 31, 2019 and March 31, 2018, respectively.	

Page 22.

	
								
NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	
 	 	 	 	 	 	 	
EXPLORATION AND PRODUCTION INFORMATION	
 	
Hedging Summary for Remaining Six Months of Fiscal 2019	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Brent	 	372,000		BBL	 	$	63.52 / BBL	
NYMEX	 	534,000		BBL	 	$	53.42 / BBL	
Total	 	906,000		BBL	 	$	57.57 / BBL	
 	 	 	 	 	 	 	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	40,080,000		MMBTU	 	$	2.93 / MMBTU	
DAWN	 	3,600,000		MMBTU	 	$	3.00 / MMBTU	
Fixed Price Physical Sales	 	37,356,436		MMBTU	 	$	2.61 / MMBTU	
Total	 	81,036,436		MMBTU	 	$	2.78 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2020	 	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Brent	 	1,128,000		BBL	 	$	64.26 / BBL	
NYMEX	 	324,000		BBL	 	$	50.52 / BBL	
Total	 	1,452,000		BBL	 	$	61.20 / BBL	
 	 	 	 	 	 	 	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	40,990,000		MMBTU	 	$	2.92 / MMBTU	
DAWN	 	7,200,000		MMBTU	 	$	3.00 / MMBTU	
Fixed Price Physical Sales	 	45,816,742		MMBTU	 	$	2.35 / MMBTU	
Total	 	94,006,742		MMBTU	 	$	2.64 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2021	 	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Brent	 	576,000		BBL	 	$	64.48 / BBL	
NYMEX	 	156,000		BBL	 	$	51.00 / BBL	
Total	 	732,000		BBL	 	$	61.61 / BBL	
 	 	 	 	 	 	 	
Gas Swaps	 	 	 	 	 	 	
NYMEX	 	6,790,000		MMBTU	 	$	2.95 / MMBTU	
   DAWN	 	600,000		MMBTU	 	$	3.00 / MMBTU	
Fixed Price Physical Sales	 	41,567,229		MMBTU	 	$	2.22 / MMBTU	
Total	 	48,957,229		MMBTU	 	$	2.33 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2022	 	Volume	 	 	Average Hedge Price	
Oil Swaps	 	 	 	 	 	 	
Brent	 	300,000		BBL	 	$	60.07 / BBL	
NYMEX	 	156,000		BBL	 	$	51.00 / BBL	
Total	 	456,000		BBL	 	$	56.97 / BBL	
 	 	 	 	 	 	 	
Fixed Price Physical Sales	 	40,683,056		MMBTU	 	$	2.23 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2023	 	Volume	 	 	Average Hedge Price	
Fixed Price Physical Sales	 	37,225,983		MMBTU	 	$	2.26 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2024	 	Volume	 	 	Average Hedge Price	
Fixed Price Physical Sales	 	21,074,815		MMBTU	 	$	2.25 / MMBTU	
 	 	 	 	 	 	 	
Hedging Summary for Fiscal 2025	 	Volume	 	 	Average Hedge Price	
Fixed Price Physical Sales	 	2,293,200		MMBTU	 	$	2.18 / MMBTU	

	

Page 23.

	

NATIONAL FUEL GAS COMPANY	
AND SUBSIDIARIES	

 	 	 	 	 	 	 	 	 	 	 	 	 	
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2019	 	2018	 	(Decrease)	 	2019	 	2018	 	(Decrease)	
Firm Transportation - Affiliated	 	50,967		 	47,551		 	3,416		 	86,668		 	82,392		 	4,276		
Firm Transportation - Non-Affiliated	 	148,653		 	152,128		 	(3,475	)	 	304,855		 	323,989		 	(19,134	)	
Interruptible Transportation	 	750		 	1,165		 	(415	)	 	1,665		 	2,046		 	(381	)	
 	 	200,370		 	200,844		 	(474	)	 	393,188		 	408,427		 	(15,239	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gathering Volume - (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2019	 	2018	 	(Decrease)	 	2019	 	2018	 	(Decrease)	
Gathered Volume - Affiliated	 	54,157		 	51,374		 	2,783		 	108,845		 	94,536		 	14,309		

Utility Throughput - (MMcf)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2019	 	2018	 	(Decrease)	 	2019	 	2018	 	(Decrease)	
Retail Sales:	 	 	 	 	 	 	 	 	 	 	 	 	
Residential Sales	 	30,906		 	28,568		 	2,338		 	50,686		 	46,415		 	4,271		
Commercial Sales	 	4,712		 	4,500		 	212		 	7,558		 	7,096		 	462		
Industrial Sales	 	284		 	287		 	(3	)	 	488		 	431		 	57		
 	 	35,902		 	33,355		 	2,547		 	58,732		 	53,942		 	4,790		
Off-System Sales	 	—		 	119		 	(119	)	 	—		 	141		 	(141	)	
Transportation	 	28,928		 	29,624		 	(696	)	 	51,198		 	51,051		 	147		
 	 	64,830		 	63,098		 	1,732		 	109,930		 	105,134		 	4,796		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Energy Marketing Volume	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
 	 	 	 	 	 	Increase	 	 	 	 	 	Increase	
 	 	2019	 	2018	 	(Decrease)	 	2019	 	2018	 	(Decrease)	
Natural Gas (MMcf)	 	16,191		 	16,112		 	79		 	28,610		 	28,091		 	519		

	

	

	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

Page 24.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding Adjusted Operating Results and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

Management defines Adjusted Operating Results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the three and six months ended March 31, 2019 and 2018:

																	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
(in thousands except per share amounts)	 	2019	 	2018	 	2019	 	2018	
Reported GAAP Earnings	 	$	90,595		 	$	91,847		 	$	193,256		 	$	290,501		
Items impacting comparability	 	 	 	 	 	 	 	 	
Remeasurement of deferred income taxes under 2017 Tax Reform	 	—		 	4,000		 	(5,000	)	 	(107,000	)	
Unrealized (gain) loss on hedge ineffectiveness (E&P)	 	6,742		 	(335	)	 	237		 	98		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	 	(1,416	)	 	82		 	(50	)	 	(24	)	
Unrealized (gain) loss on other investments (Corporate/All Other)	 	(3,831	)	 	—		 	2,516		 	—		
Tax impact of unrealized (gain) loss on other investments	 	805		 	—		 	(528	)	 	—		
Adjusted Operating Results	 	$	92,895		 	$	95,594		 	$	190,431		 	$	183,575		
 	 	 	 	 	 	 	 	 	
Reported GAAP Earnings per share	 	$	1.04		 	$	1.06		 	$	2.23		 	$	3.37		
Items impacting comparability	 	 	 	 	 	 	 	 	
Remeasurement of deferred income taxes under 2017 Tax Reform	 	—		 	0.05		 	(0.06	)	 	(1.24	)	
Unrealized (gain) loss on hedge ineffectiveness (E&P)	 	0.08		 	—		 	—		 	—		
Tax impact of unrealized (gain) loss on hedge ineffectiveness	 	(0.02	)	 	—		 	—		 	—		
Unrealized (gain) loss on other investments (Corporate/All Other)	 	(0.04	)	 	—		 	0.03		 	—		
Tax impact of unrealized (gain) loss on other investments	 	0.01		 	—		 	(0.01	)	 	—		
Rounding	 	—		 	—		 	0.01		 	—		
Adjusted Operating Results per share	 	$	1.07		 	$	1.11		 	$	2.20		 	$	2.13		

Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and six months ended March 31, 2019 and 2018:

																	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
 	 	2019	 	2018	 	2019	 	2018	
(in thousands)	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	90,595		 	$	91,847		 	$	193,256		 	$	290,501		
Depreciation, Depletion and Amortization	 	65,664		 	61,155		 	129,918		 	116,985		
Other (Income) Deductions	 	5,919		 	13,092		 	15,521		 	16,594		
Interest Expense	 	27,060		 	28,381		 	53,573		 	56,971		
Income Taxes	 	29,785		 	38,269		 	52,693		 	(43,007	)	
Unrealized (Gain) Loss on Hedge Ineffectiveness	 	6,742		 	(335	)	 	237		 	98		
Adjusted EBITDA	 	$	225,765		 	$	232,409		 	$	445,198		 	$	438,142		
 	 	 	 	 	 	 	 	 	
Adjusted EBITDA by Segment	 	 	 	 	 	 	 	 	
Pipeline and Storage Adjusted EBITDA	 	$	41,281		 	$	49,786		 	$	89,106		 	$	100,203		
Gathering Adjusted EBITDA	 	24,598		 	24,220		 	50,546		 	45,033		
Total Midstream Businesses Adjusted EBITDA	 	65,879		 	74,006			139,652			145,236		
Exploration and Production Adjusted EBITDA	 	83,580		 	78,728		 	173,475		 	158,948		
Utility Adjusted EBITDA	 	78,688		 	80,591		 	136,257		 	134,740		
Energy Marketing Adjusted EBITDA	 	620		 	1,048		 	(101	)	 	2,854		
Corporate and All Other Adjusted EBITDA	 	(3,002	)	 	(1,964	)	 	(4,085	)	 	(3,636	)	
Total Adjusted EBITDA	 	$	225,765		 	$	232,409			$	445,198			$	438,142		

Page 25.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA

																	
 	 	Three Months Ended	 	Six Months Ended	
 	 	March 31,	 	March 31,	
(in thousands)	 	2019	 	2018	 	2019	 	2018	
Exploration and Production Segment	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	21,873		 	$	26,537		 	$	60,087		 	$	133,235		
Depreciation, Depletion and Amortization	 	35,888		 	31,986		 	70,588		 	59,411		
Other (Income) Deductions	 	(275	)	 	(12	)	 	(554	)	 	(15	)	
Interest Expense	 	13,548		 	13,380		 	26,711		 	26,753		
Income Taxes	 	5,804		 	7,172		 	16,406		 	(60,534	)	
Unrealized (Gain) Loss on Hedge Ineffectiveness	 	6,742		 	(335	)	 	237		 	98		
Adjusted EBITDA	 	$	83,580		 	$	78,728		 	$	173,475		 	$	158,948		
 	 	 	 	 	 	 	 	 	
Pipeline and Storage Segment	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	17,749		 	$	22,724		 	$	42,851		 	$	61,186		
Depreciation, Depletion and Amortization	 	11,293		 	10,838		 	22,407		 	21,434		
Other (Income) Deductions	 	(1,973	)	 	(1,173	)	 	(3,899	)	 	(2,819	)	
Interest Expense	 	7,500		 	7,875		 	14,786		 	15,752		
Income Taxes	 	6,712		 	9,522		 	12,961		 	4,650		
Adjusted EBITDA	 	$	41,281		 	$	49,786		 	$	89,106		 	$	100,203		
 	 	 	 	 	 	 	 	 	
Gathering Segment	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	12,690		 	$	11,770		 	$	26,872		 	$	57,169		
Depreciation, Depletion and Amortization	 	4,673		 	4,227		 	9,351		 	8,315		
Other (Income) Deductions	 	(189	)	 	(337	)	 	(232	)	 	(651	)	
Interest Expense	 	2,345		 	2,508		 	4,723		 	4,847		
Income Taxes	 	5,079		 	6,052		 	9,832		 	(24,647	)	
Adjusted EBITDA	 	$	24,598		 	$	24,220		 	$	50,546		 	$	45,033		
 	 	 	 	 	 	 	 	 	
Utility Segment	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	35,589		 	$	33,360		 	$	61,237		 	$	54,353		
Depreciation, Depletion and Amortization	 	13,365		 	13,340		 	26,656		 	26,665		
Other (Income) Deductions	 	11,618		 	13,930		 	17,834		 	20,620		
Interest Expense	 	6,263		 	6,857		 	12,157		 	13,695		
Income Taxes	 	11,853		 	13,104		 	18,373		 	19,407		
Adjusted EBITDA	 	$	78,688		 	$	80,591		 	$	136,257		 	$	134,740		
 	 	 	 	 	 	 	 	 	
Energy Marketing Segment	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	544		 	$	578		 	$	243		 	$	1,624		
Depreciation, Depletion and Amortization	 	71		 	68		 	141		 	138		
Other (Income) Deductions	 	(198	)	 	(59	)	 	(245	)	 	(72	)	
Interest Expense	 	8		 	—		 	13		 	12		
Income Taxes	 	195		 	461		 	(253	)	 	1,152		
Adjusted EBITDA	 	$	620		 	$	1,048		 	$	(101	)	 	$	2,854		
 	 	 	 	 	 	 	 	 	
Corporate and All Other	 	 	 	 	 	 	 	 	
Reported GAAP Earnings	 	$	2,150		 	$	(3,122	)	 	$	1,966		 	$	(17,066	)	
Depreciation, Depletion and Amortization	 	374		 	696		 	775		 	1,022		
Other (Income) Deductions	 	(3,064	)	 	743		 	2,617		 	(469	)	
Interest Expense	 	(2,604	)	 	(2,239	)	 	(4,817	)	 	(4,088	)	
Income Taxes	 	142		 	1,958		 	(4,626	)	 	16,965		
Adjusted EBITDA	 	$	(3,002	)	 	$	(1,964	)	 	$	(4,085	)	 	$	(3,636	)