National Fuel Reports 2009 Earnings

http://www.businesswire.com/news/home/20091105006555/en

WILLIAMSVILLE, N.Y.--(Business Wire)--
National Fuel Gas Company ("National Fuel" or the "Company") (NYSE:NFG) today
announced consolidated earnings for its fourth quarter and fiscal year ended
September 30, 2009, of $27.0 million or $0.33 per share, and $100.7 million or
$1.25 per share, respectively.

HIGHLIGHTS

* Operating results before items impacting comparability ("Operating Results")
for the fourth quarter of fiscal 2009 of $29.8 million, or $0.36 per share,
decreased $13.5 million from the prior fiscal year. A 28% decrease in average
commodity prices realized this quarter in the Exploration and Production segment
was the main driver of the decrease in earnings.
* Operating Results for fiscal 2009 of $210.5 million, or $2.60 per share,
decreased $57.7 million from the prior fiscal year. A 22% decrease in average
commodity prices realized over the entire year in the Exploration and Production
segment was the main driver of the decrease in earnings.
* Production in the Exploration and Production segment for the current quarter
increased over 20% compared to the prior year`s fourth quarter. Comparing the
fourth quarter of 2009 to the fourth quarter of 2008, Appalachian production
increased 29%, California production increased 6%, and Gulf of Mexico production
increased 38%. Total production for fiscal 2009 was 42.5 billion cubic feet
equivalent ("Bcfe").
* Seneca flare tested its second company-operated Marcellus Shale horizontal
well at an average rate of 4.7 million cubic feet per day ("MMcfd") over a 7-day
period. To date Seneca has drilled four horizontal Marcellus Shale wells and
fracture stimulated and tested two, at a combined rate for those two wells of
over 10 MMcfd.
* Seneca`s reserve replacement ratio for the year was 160%. In Appalachia 341%
of production was replaced. Seneca added 21.2 Bcfe of Marcellus Shale Proved
Reserves at a Finding & Development Cost of $1.28 per thousand cubic feet
("Mcf"), excluding the cost of lease acquisitions.
* Phase 1 of Midstream Corporation`s Covington Gathering System is expected to
be completed and transporting Marcellus production to market by mid November (a
construction time of less than 6 months).
* Seneca is accelerating its drilling plans in the Marcellus shale during fiscal
2010. A second Seneca-operated horizontal drilling rig will arrive later this
month. We are now estimating a total of 50 to 60 horizontal wells will be
drilled in fiscal 2010, approximately half of which will be operated by EOG in
the joint venture. The Company is revising its GAAP earnings guidance for fiscal
2010 to a range of $2.30 to $2.65 per share. The previous guidance range had
been $2.30 to $2.60. This guidance includes an increase in the upper end of our
oil and gas production range for the Exploration and Production segment. The
production range is now 42 to 50 Bcfe and is based on an assumed average NYMEX
price, exclusive of basis differential, of $5.00 per Million British Thermal
Units ("MMBtu") for natural gas and $75.00 per barrel ("Bbl") for crude oil. The
previous production range was 42 to 48 Bcfe.
* A conference call is scheduled for Friday, November 6, 2009, at 11:00 a.m.
Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chief Executive Officer and President of National Fuel Gas
Company stated: "Overall, the fourth quarter was an excellent one for National
Fuel. While commodity prices certainly impacted the level of earnings in our
Exploration and Production segment, we had an outstanding quarter from an
operating point of view, with production up 20% over the prior year."

"More importantly, we continue to make great progress on our strategic
initiatives in Appalachia. We have now completed two Seneca-operated horizontal
wells in the Marcellus, and are very pleased with the results of each of the
wells. Just as significant, we are also completing construction of the Covington
Gathering System, which will get that production to market, and expect to place
it in service by mid November. We have substantial running room in the
Marcellus, and I firmly believe our accomplishments this quarter demonstrate
that National Fuel has the people, knowledge and skills to capitalize on this
exciting opportunity."

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended September 30,
2009, of $27.0 million or $0.33 per share, a decrease of $16.3 million, or $0.19
per share, from the prior year`s fourth quarter earnings. (Note: all references
to earnings per share are to diluted earnings per share, all amounts are stated
in U.S. dollars and all amounts used in the discussions of earnings and
operating results before items impacting comparability ("Operating Results") are
stated on an after tax basis, unless otherwise noted.)

Consolidated earnings for the fiscal year ended September 30, 2009, of $100.7
million, or $1.25 per share, decreased $168.0 million, or $1.93 per share, from
the prior year, where earnings were $268.7 million, or $3.18 per share. The per
share amounts reflect a lower number of shares outstanding in the current
quarter and fiscal year to date resulting mainly from the impact of the
Company`s repurchase of approximately 5.2 million shares of National Fuel common
stock in the prior fiscal year.

Three Months Fiscal Year
Ended September 30, Ended September 30,
2009 2008 2009 2008
(in thousands except per share amounts)
Reported GAAP earnings $ 26,998 $ 43,266 $ 100,708 $ 268,728
Items impacting comparability1:
Gain on sale of turbine (586 )
Impairment of oil and gas producing properties 108,207
Impairment of investment in partnership 1,085
Impairment of landfill gas assets 2,786 2,786
Gain on life insurance policies (2,312 )

Operating Results $ 29,784 $ 43,266 $ 210,474 $ 268,142

Reported GAAP earnings per share $ 0.33 $ 0.52 $ 1.25 $ 3.18
Items impacting comparability1:
Gain on sale of turbine (0.01 )
Impairment of oil and gas producing properties 1.34
Impairment of investment in partnership 0.01
Impairment of landfill gas assets 0.03 0.03
Gain on life insurance policies (0.03 )

Operating Results $ 0.36 $ 0.52 $ 2.60 $ 3.17

1 See discussion of these individual items below.

As outlined in the table above, certain items included in GAAP earnings impacted
the comparability of the Company`s financial results when comparing the quarter
and fiscal year ended September 30, 2009, to the comparable periods in fiscal
2008. Excluding these items, Operating Results for the current fourth quarter of
$29.8 million, or $0.36 per share, decreased $13.5 million, or $0.16 per share.
Excluding these items, operating results for the fiscal year ended September 30,
2009, of $210.5 million, or $2.60 per share, decreased $57.7 million, or $0.57
per share. Items impacting comparability will be discussed in more detail within
the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

(The following discussion of earnings for each segment is summarized in a
tabular form in this report. It may be helpful to refer to those tables while
reviewing this discussion.)

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca
Resources Corporation ("Seneca"). Seneca explores for, develops and purchases
natural gas and oil reserves in California, in the Appalachian region, and in
the Gulf of Mexico.

The Exploration and Production segment`s earnings in the fourth quarter of
fiscal 2009 of $28.1 million, or $0.34 per share, decreased $10.1 million, or
$0.12 per share, when compared with the prior year`s fourth quarter.

Crude oil and natural gas production for the current quarter of 11.3 Bcfe
increased over 20 percent compared to the prior year`s fourth quarter.
Production increased 29 percent in Appalachia, 38 percent in the Gulf of Mexico
and six percent in California. The increase in Appalachia is largely due to the
continued development by Seneca of its Upper Devonian acreage. The increase in
Gulf of Mexico production is mostly due to the return to production of wells
that were shut in due to hurricanes in the fourth quarter of fiscal 2008. The
increase in California production is mainly due to the acquisition of Ivanhoe
Energy`s U.S. oil and gas subsidiary this quarter.

In spite of higher production, lower crude oil and natural gas prices realized
after hedging caused earnings to decrease. For the quarter ended September 30,
2009, the weighted average oil price received by Seneca (after hedging) was
$71.39 per Bbl, a decrease of $15.90 per Bbl from the prior year`s quarter. The
weighted average natural gas price received by Seneca (after hedging) for the
quarter ended September 30, 2009, was $6.00 per Mcf, a decrease of $3.41 per
Mcf.

Aside from the change in production and pricing, several other items impacted
earnings, including higher depletion expense (due mostly to the increase in
production), lower other operating expenses (which was attributable mostly to a
decrease in plugging and abandonment cost), and the negative impact of
period-to-period mark-to-market adjustments to recognize hedge ineffectiveness
on certain derivative financial instruments used to hedge prices on Seneca`s oil
and gas.

The Exploration and Production segment`s loss of $10.2 million, or $0.13 per
share, for the fiscal year ended September 30, 2009, compares to earnings of
$146.6 million, or $1.73 per share, for the fiscal year ended September 30,
2008. The decrease in earnings was largely due to a non-cash charge of $108.2
million in the first quarter of fiscal 2009 to write down the value of Seneca`s
oil and natural gas producing properties.

Seneca uses the full cost method of accounting for determining the book value of
its oil and natural gas properties. This accounting method requires that Seneca
perform a quarterly "ceiling test" to compare the present value of future
revenues from its oil and natural gas reserves based on period end spot prices
(the "ceiling") with the book value of those reserves at the balance sheet date.
If the book value of the reserves exceeds the ceiling calculation, a non-cash
charge, or impairment, must be recorded in order to reduce the book value of the
reserves to the calculated ceiling. The impairment was mainly driven by a
significant decrease in commodity prices. At September 30, 2009 pricing, the
ceiling exceeded the book value of the Company`s oil and gas properties by
approximately $212 million.

Excluding the impact of the ceiling test charge in the first quarter of fiscal
year 2009, Operating Results for the fiscal year ended September 30, 2009, of
$98.0 million or $1.21 per share decreased $48.6 million, or $0.52 per share,
from the prior year.

Overall production for fiscal year ended September 30, 2009, of 42.5 Bcfe
increased four percent from 40.8 Bcfe in the prior fiscal year. Lower production
in the Gulf of Mexico as a result of Hurricane Ike related curtailments during
the year, was offset by increases of 10 percent in Appalachia and seven percent
in California.

For the fiscal year ended September 30, 2009, the weighted average oil price
received by Seneca (after hedging) was $64.94 per Bbl, a decrease of $16.81 per
Bbl from the prior fiscal year. The weighted average natural gas price received
by Seneca (after hedging) for fiscal year ended September 30, 2009, was $6.94
per Mcf, a decrease of $2.11 per Mcf.

Other items impacting Operating Results for the fiscal year ended September 30,
2009, were lower depletion and lease operating expense ("LOE") and higher
general and administrative expenses ("G&A"). Lower income taxes also had a
positive impact on earnings for the current fiscal year. The decrease in
depletion expense was mainly due to a lower depletable base resulting from the
ceiling test impairment recorded in the first quarter of fiscal 2009 described
above. The decrease in LOE is due to lower steam fuel costs in California and
lower production taxes in the Gulf of Mexico. The increase in G&A expenses is
due to additional staffing and other costs in the East division, and a bad debt
charge related to a customer bankruptcy in California.

Seneca continues to evaluate and aggressively develop the Company`s significant
Marcellus Shale acreage. Seneca flare tested its second company-operated
Marcellus Shale horizontal well at an average rate of 4.7 MMcfd over a 7-day
period. To date Seneca has drilled four horizontal Marcellus Shale wells and
fracture stimulated and tested two, at a combined rate of over 10 MMcfd.

Pipeline and Storage Segment

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

The Pipeline and Storage segment`s earnings of $5.8 million, for the quarter
ended September 30, 2009, decreased $7.4 million when compared with the same
period in the prior fiscal year. The decrease was primarily due to lower
efficiency gas revenues, mainly the result of lower commodity prices and lower
transported volumes during the quarter. Higher transportation revenues from the
Empire Connector, which was placed in service in mid December 2008, partially
offset this decrease. Higher interest expense and a lower allowance for funds
used during construction ("AFUDC") in the fourth quarter of the current fiscal
year and a higher effective tax rate also contributed to the decrease in
earnings compared to the prior year`s fourth quarter.

The Pipeline and Storage segment`s earnings of $47.4 million for the fiscal year
ended September 30, 2009, decreased $6.8 million when compared with the prior
fiscal year. Higher transportation revenues, mainly the result of incremental
revenue from the Empire Connector, which was placed in service in mid December
2008 and the addition of several new contracts for firm transportation services
were more than offset by lower efficiency gas revenues due to lower natural gas
prices, higher depreciation expense, higher interest expense and lower AFUDC
related to the construction of the Empire Connector in the prior fiscal year.

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution
Corporation ("Distribution"), which sells or transports natural gas to customers
located in western New York and northwestern Pennsylvania. The Utility segment`s
loss of $1.6 million, or $0.02 per share, for the quarter ended September 30,
2009, compares to a loss of $0.8 million, or $0.01 per share, for the quarter
ended September 30, 2008.

The New York Division`s loss increased $2.4 million due to higher interest
expense. In the Pennsylvania Division, earnings increased $1.6 million. The
increase is mainly due to lower operating expenses compared to the fourth
quarter of fiscal 2008 partially offset by higher interest expense.

The Utility segment`s earnings of $58.7 million for the fiscal year ended
September 30, 2009, decreased $2.8 million compared to the fiscal year ended
September 30, 2008. Earnings in Distribution`s New York Division for the fiscal
year ended September 30, 2009, of $37.7 million decreased $3.0 million compared
to the prior year. Lower margins in the first quarter of fiscal 2009 primarily
as a result of the rate design change approved by the New York State Public
Service Commission`s December 28, 2007 rate order and higher interest expense
more than offset the impact of lower operating expenses.

For the fiscal year ended September 30, 2009, earnings in Distribution`s
Pennsylvania Division of $21.0 million were nearly flat compared to the prior
year. The positive impact of colder weather and lower operating expenses was
mostly offset by lower customer usage per account and a higher effective tax
rate.

Energy Marketing

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

The Energy Marketing segment`s loss for the quarter ended September 30, 2009, of
$0.3 million decreased from a loss of $1.2 million for the fourth quarter of
last year. The improved results are primarily due to an increase in margin.

The Energy Marketing segment`s earnings for the fiscal year ended September 30,
2009, of $7.2 million increased $1.3 million compared to the prior year. An
increase in margin and lower operating expenses due to lower bad debt expense
were somewhat offset by higher state income taxes.

The Energy Marketing segment`s reported sales volume for fiscal 2009 was 4.7 Bcf
higher than the reported sales volume for fiscal 2008. The increase in sales
volume was due to physical gas sales transactions that NFR undertook at the
Niagara pipeline delivery point to offset certain basis risks that NFR was
exposed to under fixed basis commodity purchase contracts for Appalachian
production. Such offsetting transactions had the effect of increasing revenue
and volume sold, but the impact on earnings was minimal.

Corporate and All Other

The Corporate and All Other category includes the following active, wholly owned
subsidiaries of the Company: Highland Forest Resources, Inc., a corporation that
markets high quality hardwoods from New York and Pennsylvania land holdings;
Horizon LFG, Inc., a corporation engaged, through subsidiaries, in the purchase,
processing, transportation and sale of landfill gas; and Horizon Power, Inc., a
corporation that develops and owns independent electric generation facilities
that are fueled by natural gas or landfill gas.

The Corporate and All Other category had a loss of $4.9 million for the quarter
ended September 30, 2009 compared to a loss of $6.2 million in the prior year`s
fourth quarter. The comparability of the results for the quarter ended September
30, 2009, is impacted by a $2.8 million impairment of one of the landfill gas
sites that transported landfill gas to a now idle manufacturing plant in
Oakridge, Missouri. Excluding this item, Operating Results increased $4.1
million. Higher margins from timber operations due to the lower cost basis of
the current quarter`s harvest, lower operating expenses, higher interest income
and lower income taxes were the primary reasons for the decreased loss. The
positive impact of these items was partially offset by lower income from
unconsolidated subsidiaries and higher interest expense.

The Corporate and All Other category loss for the fiscal year ended September
30, 2009, was $2.2 million, compared to the prior year`s earnings of $0.6
million. The comparability of the results for the fiscal year ended September
30, 2009, is impacted by a $0.6 million gain in the second quarter of fiscal
2008 related to the sale of a gas-powered turbine that the Company had
previously planned to use in the development of a co-generation plant, and in
fiscal 2009, by the $2.8 million landfill gas site impairment charge described
above, a $2.3 million gain recognized on executive life insurance policies and a
$1.1 million impairment in the value of Horizon Power`s 50 percent investment in
Energy Systems North East, LLC, a partnership that owns an 80-megawatt combined
cycle, natural gas-fired power plant in the town of North East, Pennsylvania.
Excluding these items, Operating Results were a loss of $0.7 million for the
current fiscal year compared to break even results in fiscal 2008. Lower margins
from the timber operations as a result of decreased sales volumes and prices,
lower margins in the landfill gas operations, a decrease in income from
unconsolidated subsidiaries, lower interest income and higher interest expense
contributed to the decrease in Operating Results. The non-recurrence of expenses
related to the proxy contest in fiscal 2008, and lower income taxes partially
offset the decrease in Operating Results.

EARNINGS GUIDANCE

The Company is revising its GAAP earnings guidance for fiscal 2010 to a range of
$2.30 to $2.65 per share. The previous guidance range had been $2.30 to $2.60.
This guidance includes an increase in the upper end of our oil and gas
production range for the Exploration and Production segment. The production
range is now 42 to 50 Bcfe and is based on an assumed average NYMEX price,
exclusive of basis differential, of $5.00 per MMBtu for natural gas and $75.00
per Bbl for crude oil. The previous production range was 42 to 48 Bcfe.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 6, 2009, at 11 a.m.
(Eastern Time) to discuss this announcement. There are two ways to access this
call. For those with Internet access, visit the investor relations page at
National Fuel`s Web site at investor.nationalfuelgas.com. For those without
Internet access, access is also provided by dialing (toll-free) 1-866-578-5801,
and using the passcode "70464736." For those unable to listen to the live
conference call, a replay will be available at approximately 2 p.m. (Eastern
Time) at the same Web site link and by phone at (toll free) 888-286-8010 using
passcode "75925727." Both the webcast and telephonic replay will be available
until the close of business on Friday, November 13, 2009.

National Fuel is an integrated energy company with $4.8 billion in assets
comprised of the following four operating segments: Exploration and Production,
Pipeline and Storage, Utility, and Energy Marketing. Additional information
about National Fuel is available on its Internet Web
site:http://www.nationalfuelgas.com or through its investor information service
at 1-800-334-2188.

The Securities and Exchange Commission (the "SEC") currently permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation tests to
be economically and legally producible under existing economic and operating
conditions. The Company uses the terms "probable," "possible," "resource
potential" and other descriptions of volumes of reserves or resources
potentially recoverable through additional drilling or recovery techniques that
the SEC`s guidelines would prohibit us from including in filings with the SEC.
These estimates are by their nature more speculative than estimates of proved
reserves and, accordingly, are subject to substantially greater risk of being
actually realized. Investors are urged to consider closely the disclosure in our
Form 10-K and Forms 10-Q, available at www.nationalfuelgas.com. You can also
obtain these forms on the SEC`s website at www.sec.gov.

Certain statements contained herein, including those regarding estimated future
earnings, and statements that are identified by the use of the words
"anticipates," "estimates," "expects," "forecasts," "intends," "plans,"
"predicts," "projects," "believes," "seeks," "will," "may" and similar
expressions, are "forward-looking statements" as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or outcomes to differ
materially from those expressed in the forward-looking statements. The Company`s
expectations, beliefs and projections contained herein are expressed in good
faith and are believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be achieved or
accomplished. In addition to other factors, the following are important factors
that could cause actual results to differ materially from those discussed in the
forward-looking statements: financial and economic conditions, including the
availability of credit, and their effect on the Company`s ability to obtain
financing on acceptable terms for working capital, capital expenditures and
other investments; occurrences affecting the Company`s ability to obtain
financing under credit lines or other credit facilities or through the issuance
of commercial paper, other short-term notes or debt or equity securities,
including any downgrades in the Company`s credit ratings and changes in interest
rates and other capital market conditions; changes in economic conditions,
including global, national or regional recessions, and their effect on the
demand for, and customers` ability to pay for, the Company`s products and
services; the creditworthiness or performance of the Company`s key suppliers,
customers and counterparties; economic disruptions or uninsured losses resulting
from terrorist activities, acts of war, major accidents, fires, hurricanes,
other severe weather, pest infestation or other natural disasters; changes in
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 demographic patterns and weather conditions; changes in
the availability and/or price of natural gas or oil and the effect of such
changes on the accounting treatment of derivative financial instruments or the
valuation of the Company`s natural gas and oil reserves; impairments under the
SEC`s full cost ceiling test for natural gas and oil reserves; uncertainty of
oil and gas reserve estimates; 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, weather
conditions, shortages, delays or unavailability of equipment and services
required in drilling operations, and the need to obtain governmental approvals
and permits and comply with environmental laws and regulations; significant
differences between the Company`s projected and actual production levels for
natural gas or oil; changes in the availability and/or price of derivative
financial instruments; changes in the price differentials between oil having
different quality and/or different geographic locations, or changes in the price
differentials between natural gas having different heating values and/or
different geographic locations; inability to obtain new customers or retain
existing ones; significant changes in competitive factors affecting the Company;
changes in laws and regulations to which the Company is subject, including tax,
environmental, safety and employment laws and regulations;
governmental/regulatory actions, initiatives and proceedings, including those
involving acquisitions, financings, rate cases (which address, among other
things, allowed rates of return, rate design and retained natural gas),
affiliate relationships, industry structure, franchise renewal, and
environmental/safety requirements; unanticipated impacts of restructuring
initiatives in the natural gas and electric industries; significant differences
between the Company`s projected and actual capital expenditures and operating
expenses, and unanticipated project delays or changes in project costs or plans;
the nature and projected profitability of pending and potential projects and
other investments, and the ability to obtain necessary governmental approvals
and permits; ability to successfully identify and finance acquisitions or other
investments and ability to operate and integrate existing and any subsequently
acquired business or properties; significant changes in tax rates or policies or
in rates of inflation or interest; significant changes in the Company`s
relationship with its employees or contractors and the potential adverse effects
if labor disputes, grievances or shortages were to occur; changes in accounting
principles or the application of such principles to the Company; the cost and
effects of legal and administrative claims against the Company or activist
shareholder campaigns to effect changes at the Company; increasing health care
costs and the resulting effect on health insurance premiums and on the
obligation to provide other post-retirement benefits; or increasing costs of
insurance, changes in coverage and the ability to obtain insurance. The Company
disclaims any obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2009

Exploration & Pipeline & Energy Corporate /
(Thousands of Dollars) Production Storage Utility Marketing All Other Consolidated

Fourth quarter 2008 GAAP earnings $ 38,227 $ 13,218 $ (756 ) $ (1,191 ) $ (6,232 ) $ 43,266

Drivers of operating results
Higher (lower) crude oil prices (9,077 ) (9,077 )
Higher (lower) natural gas prices (13,377 ) (13,377 )
Higher (lower) natural gas production 6,797 6,797
Higher (lower) crude oil production 7,381 7,381
Higher (lower) processing plant revenues (888 ) (888 )
Derivative mark to market adjustment (1,555 ) (1,555 )
Lower (higher) lease operating expenses (499 ) (499 )
Lower (higher) depreciation / depletion (998 ) (297 ) (1,295 )

Higher (lower) transportation revenues 2,124 2,124
Higher (lower) efficiency gas revenues (3,102 ) (3,102 )
Lower (higher) operating expenses 1,351 (333 ) 1,849 1,280 4,147

Higher (lower) income from unconsolidated subsidiaries (514 ) (514 )

Higher (lower) margins 903 2,836 3,739

Higher (lower) AFUDC* (2,656 ) (2,656 )
Higher (lower) interest income (909 ) 1,263 354
(Higher) lower interest expense 686 (1,954 ) (2,395 ) (1,771 ) (5,434 )

Lower (higher) income tax expense / effective tax rate 1,050 (1,491 ) 829 388

All other / rounding (61 ) 267 (337 ) (55 ) 171 (15 )

Fourth quarter 2009 operating results 28,128 5,776 (1,639 ) (343 ) (2,138 ) 29,784
Items impacting comparability:
Impairment of landfill gas assets (2,786 ) (2,786 )
Fourth quarter 2009 GAAP earnings $ 28,128 $ 5,776 $ (1,639 ) $ (343 ) $ (4,924 ) $ 26,998

* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2009

Exploration & Pipeline & Energy Corporate /
Production Storage Utility Marketing All Other Consolidated

Fourth quarter 2008 GAAP earnings $ 0.46 $ 0.16 $ (0.01 ) $ (0.01 ) $ (0.08 ) $ 0.52

Drivers of operating results
Higher (lower) crude oil prices (0.11 ) (0.11 )
Higher (lower) natural gas prices (0.16 ) (0.16 )
Higher (lower) natural gas production 0.08 0.08
Higher (lower) crude oil production 0.09 0.09
Higher (lower) processing plant revenues (0.01 ) (0.01 )
Derivative mark to market adjustment (0.02 ) (0.02 )
Lower (higher) lease operating expenses (0.01 ) 0.02 0.01
Lower (higher) depreciation / depletion (0.01 ) - (0.01 )

Higher (lower) transportation revenues 0.03 0.03
Higher (lower) efficiency gas revenues (0.04 ) (0.04 )
Lower (higher) operating expenses 0.02 - 0.02 - 0.04

Higher (lower) income from unconsolidated subsidiaries (0.01 ) (0.01 )

Higher (lower) margins 0.01 0.03 0.04

Higher (lower) AFUDC* (0.03 ) (0.03 )
Higher (lower) interest income (0.01 ) 0.02 0.01
(Higher) lower interest expense 0.01 (0.02 ) (0.03 ) (0.02 ) (0.06 )

Lower (higher) income tax expense / effective tax rate 0.01 (0.02 ) 0.01 -

All other / rounding (including impact of lower weighted average shares) - (0.01 ) - - - (0.01 )

Fourth quarter 2009 operating results 0.34 0.07 (0.02 ) - (0.03 ) 0.36
Items impacting comparability:
Impairment of landfill gas assets (0.03 ) (0.03 )
Fourth quarter 2009 GAAP earnings $ 0.34 $ 0.07 $ (0.02 ) $ - $ (0.06 ) $ 0.33

* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
YEAR ENDED SEPTEMBER 30, 2009

Exploration & Pipeline & Energy Corporate /
(Thousands of Dollars) Production Storage Utility Marketing All Other Consolidated

Fiscal 2008 GAAP earnings $ 146,612 $ 54,148 $ 61,472 $ 5,889 $ 607 $ 268,728
Items impacting comparability:
Gain on sale of turbine (586 ) (586 )
Fiscal 2008 operating results 146,612 54,148 61,472 5,889 21 268,142

Drivers of operating results
Higher (lower) crude oil prices (36,858 ) (36,858 )
Higher (lower) natural gas prices (30,579 ) (30,579 )
Higher (lower) natural gas production (342 ) (342 )
Higher (lower) crude oil production 16,110 16,110
Higher (lower) processing plant revenues (3,827 ) (3,827 )
Lower (higher) lease operating expenses 2,646 2,646
Lower (higher) depreciation / depletion 913 (1,459 ) (546 )

Higher (lower) transportation revenues 9,719 9,719
Higher (lower) efficiency gas revenues (7,487 ) (7,487 )
Lower (higher) operating expenses (1,680 ) 3,544 359 4,945 7,168

Higher (lower) usage (2,307 ) (2,307 )
Colder weather in Pennsylvania 2,146 2,146
Regulatory true-up adjustments (222 ) (222 )

Higher (lower) income from unconsolidated subsidiaries (1,997 ) (1,997 )

Higher (lower) margins (1,419 ) 1,514 (4,051 ) (3,956 )

Higher (lower) AFUDC* (1,994 ) (1,994 )
Higher (lower) interest income (5,519 ) (632 ) (6,151 )
(Higher) lower interest expense 5,381 (5,069 ) (3,076 ) (3,111 ) (5,875 )

Lower (higher) income tax expense / effective tax rate 4,229 (1,501 ) (391 ) 4,304 6,641

All other / rounding 883 (500 ) 27 (205 ) (162 ) 43

Fiscal 2009 operating results 97,969 47,358 58,664 7,166 (683 ) 210,474
Items impacting comparability:
Gain on life insurance policies 2,312 2,312
Impairment of investment in partnership (1,085 ) (1,085 )
Impairment of landfill gas assets (2,786 ) (2,786 )
Impairment of oil and gas properties (108,207 ) (108,207 )
Fiscal 2009 GAAP earnings $ (10,238 ) $ 47,358 $ 58,664 $ 7,166 $ (2,242 ) $ 100,708

* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
YEAR ENDED SEPTEMBER 30, 2009

Exploration & Pipeline & Energy Corporate /
Production Storage Utility Marketing All Other Consolidated

Fiscal 2008 GAAP earnings $ 1.73 $ 0.64 $ 0.73 $ 0.07 $ 0.01 $ 3.18
Items impacting comparability:
Gain on sale of turbine (0.01 ) (0.01 )
Fiscal 2008 operating results 1.73 0.64 0.73 0.07 - 3.17

Drivers of operating results
Higher (lower) crude oil prices (0.46 ) (0.46 )
Higher (lower) natural gas prices (0.38 ) (0.38 )
Higher (lower) natural gas production - -
Higher (lower) crude oil production 0.20 0.20
Higher (lower) processing plant revenues (0.05 ) (0.05 )
Lower (higher) lease operating expenses 0.03 0.03
Lower (higher) depreciation / depletion 0.01 (0.02 ) (0.01 )

Higher (lower) transportation revenues 0.12 0.12
Higher (lower) efficiency gas revenues (0.09 ) (0.09 )
Lower (higher) operating expenses (0.02 ) 0.04 - 0.06 0.08

Higher (lower) usage (0.03 ) (0.03 )
Colder weather in Pennsylvania 0.03 0.03
Regulatory true-up adjustments - -

Higher (lower) income from unconsolidated subsidiaries (0.02 ) (0.02 )

Higher (lower) margins (0.02 ) 0.02 (0.05 ) (0.05 )

Higher (lower) AFUDC* (0.02 ) (0.02 )
Higher (lower) interest income (0.07 ) (0.01 ) (0.08 )
(Higher) lower interest expense 0.07 (0.06 ) (0.04 ) (0.04 ) (0.07 )

Lower (higher) income tax expense / effective tax rate 0.05 (0.02 ) - 0.05 0.08

All other / rounding (including impact of lower weighted average shares) 0.10 0.02 0.04 - (0.01 ) 0.15

Fiscal 2009 operating results 1.21 0.59 0.73 0.09 (0.02 ) 2.60
Items impacting comparability:
Gain on life insurance policies 0.03 0.03
Impairment of investment in partnership (0.01 ) (0.01 )
Impairment of landfill gas assets (0.03 ) (0.03 )
Impairment of oil and gas properties (1.34 ) (1.34 )
Fiscal 2009 GAAP earnings $ (0.13 ) $ 0.59 $ 0.73 $ 0.09 $ (0.03 ) $ 1.25

* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)
Three Months Ended Twelve Months Ended
September 30, September 30,
(Unaudited) (Unaudited)
SUMMARY OF OPERATIONS 2009 2008 2009 2008
Operating Revenues $ 278,933 $ 397,858 $ 2,057,852 $ 2,400,361

Operating Expenses:
Purchased Gas 60,611 152,816 1,001,782 1,235,157
Operation and Maintenance 92,251 107,228 402,856 432,871
Property, Franchise and Other Taxes 15,454 17,379 72,163 75,585
Depreciation, Depletion and Amortization 45,695 41,286 173,410 170,623
Impairment of Oil and Gas Producing Properties - - 182,811 -
214,011 318,709 1,833,022 1,914,236

Operating Income 64,922 79,149 224,830 486,125

Other Income (Expense):
Income from Unconsolidated Subsidiaries 646 1,437 3,366 6,303
Impairment of Investment in Partnership - - (1,804 ) -
Interest Income 1,418 2,459 5,776 10,815
Other Income 118 2,394 6,576 7,376
Interest Expense on Long-Term Debt (22,062 ) (18,055 ) (79,419 ) (70,099 )
Other Interest Expense (2,484 ) 339 (7,497 ) (3,870 )

Income Before Income Taxes 42,558 67,723 151,828 436,650

Income Tax Expense 15,560 24,457 51,120 167,922

Net Income Available for Common Stock $ 26,998 $ 43,266 $ 100,708 $ 268,728

Earnings Per Common Share:
Basic $ 0.34 $ 0.54 $ 1.26 $ 3.27
Diluted $ 0.33 $ 0.52 $ 1.25 $ 3.18

Weighted Average Common Shares:
Used in Basic Calculation 80,240,861 80,858,668 79,649,965 82,304,335
Used in Diluted Calculation 81,607,864 82,896,107 80,628,685 84,474,839

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

September 30, September 30,
(Thousands of Dollars) 2009 2008

ASSETS
Property, Plant and Equipment $ 5,183,527 $ 4,873,969
Less - Accumulated Depreciation, Depletion and Amortization 2,051,482 1,719,869
Net Property, Plant and Equipment 3,132,045 3,154,100

Current Assets:
Cash and Temporary Cash Investments 408,053 68,239
Cash Held in Escrow 2,000 -
Hedging Collateral Deposits 848 1
Receivables - Net 144,466 185,397
Unbilled Utility Revenue 18,884 24,364
Gas Stored Underground 55,862 87,294
Materials and Supplies - at average cost 24,520 31,317
Unrecovered Purchased Gas Costs - 37,708
Other Current Assets 68,474 65,158
Deferred Income Taxes 53,863 -
Total Current Assets 776,970 499,478

Other Assets:
Recoverable Future Taxes 138,435 82,506
Unamortized Debt Expense 14,815 13,978
Other Regulatory Assets 530,913 189,587
Deferred Charges 2,737 4,417
Other Investments 78,503 80,640
Investments in Unconsolidated Subsidiaries 16,257 16,279
Goodwill 5,476 5,476
Intangible Assets 21,536 26,174
Prepaid Post-Retirement Benefit Costs - 21,034
Fair Value of Derivative Financial Instruments 44,817 28,786
Other 6,625 7,732
Total Other Assets 860,114 476,609
Total Assets $ 4,769,129 $ 4,130,187

CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 80,499,915 Shares
and 79,120,544 Shares, Respectively $ 80,500 $ 79,121
Paid in Capital 602,839 567,716
Earnings Reinvested in the Business 948,293 953,799
Total Common Shareholders' Equity Before
Items of Other Comprehensive Income (Loss) 1,631,632 1,600,636
Accumulated Other Comprehensive Income (Loss) (42,396 ) 2,963
Total Comprehensive Shareholders' Equity 1,589,236 1,603,599
Long-Term Debt, Net of Current Portion 1,249,000 999,000
Total Capitalization 2,838,236 2,602,599

Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper - -
Current Portion of Long-Term Debt - 100,000
Accounts Payable 90,723 142,520
Amounts Payable to Customers 105,778 2,753
Dividends Payable 26,967 25,714
Interest Payable on Long-Term Debt 32,031 22,114
Customer Advances 24,555 33,017
Other Accruals and Current Liabilities 36,305 45,220
Deferred Income Taxes - 1,871
Fair Value of Derivative Financial Instruments 2,148 1,362
Total Current and Accrued Liabilities 318,507 374,571

Deferred Credits:
Deferred Income Taxes 663,876 634,372
Taxes Refundable to Customers 67,046 18,449
Unamortized Investment Tax Credit 3,989 4,691
Cost of Removal Regulatory Liability 105,546 103,100
Other Regulatory Liabilities 120,229 91,933
Pension and Other Post-Retirement Liabilities 415,888 78,909
Asset Retirement Obligations 91,373 93,247
Other Deferred Credits 144,439 128,316
Total Deferred Credits 1,612,386 1,153,017
Commitments and Contingencies - -
Total Capitalization and Liabilities $ 4,769,129 $ 4,130,187

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended
September 30,
(Thousands of Dollars) 2009 2008

Operating Activities:
Net Income Available for Common Stock $ 100,708 $ 268,728
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Impairment of Oil and Gas Producing Properties 182,811 -
Depreciation, Depletion and Amortization 173,410 170,623
Deferred Income Taxes (2,521 ) 72,496
Income from Unconsolidated Subsidiaries, Net of Cash Distributions (466 ) 1,977
Impairment of Investment in Partnership 1,804 -
Excess Tax Benefits Associated with Stock-Based Compensation Awards (5,927 ) (16,275 )
Other 17,443 4,858
Change in:
Hedging Collateral Deposits (847 ) 4,065
Receivables and Unbilled Utility Revenue 47,658 (16,815 )
Gas Stored Underground and Materials and
Supplies 43,598 (22,116 )
Unrecovered Purchased Gas Costs 37,708 (22,939 )
Prepayments and Other Current Assets 2,921 (36,376 )
Accounts Payable (61,149 ) 32,763
Amounts Payable to Customers 103,025 (7,656 )
Customer Advances (8,462 ) 10,154
Other Accruals and Current Liabilities 17,059 (3,641 )
Other Assets (35,140 ) (11,887 )
Other Liabilities (4,201 ) 54,817
Net Cash Provided by Operating Activities $ 609,432 $ 482,776

Investing Activities:
Capital Expenditures ($309,930 ) ($397,734 )
Investment in Subsidiary, Net of Cash Acquired (34,933 ) -
Investment in Partnership (1,317 ) -
Cash Held in Escrow (2,000 ) 58,397
Net Proceeds from Sale of Oil and Gas Producing Properties 3,643 5,969
Other (2,806 ) 4,376
Net Cash Used in Investing Activities ($347,343 ) ($328,992 )

Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards $ 5,927 $ 16,275
Shares Repurchased under Repurchase Plan - (237,006 )
Net Proceeds from Issuance of Long-Term Debt 247,780 296,655
Reduction of Long-Term Debt (100,000 ) (200,024 )
Dividends Paid on Common Stock (104,158 ) (103,683 )
Proceeds From Issuance of Common Stock 28,176 17,432
Net Cash Provided by (Used In) Financing Activities $ 77,725 ($210,351 )
Net Increase / (Decrease) in Cash and Temporary
Cash Investments 339,814 (56,567 )
Cash and Temporary Cash Investments
at Beginning of Period 68,239 124,806
Cash and Temporary Cash Investments
at September 30 $ 408,053 $ 68,239

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30, September 30,
EXPLORATION AND PRODUCTION SEGMENT 2009 2008 Variance 2009 2008 Variance
Operating Revenues $ 101,349 $ 117,931 $ (16,582 ) $ 382,758 $ 466,760 $ (84,002 )

Operating Expenses:
Operation and Maintenance:
General and Administrative Expense 6,910 5,925 985 29,374 24,600 4,774
Lease Operating Expense 17,013 14,223 2,790 53,957 55,335 (1,378 )
All Other Operation and Maintenance Expense 2,460 5,523 (3,063 ) 11,059 13,250 (2,191 )
Property, Franchise and Other Taxes (Lease Operating Expense) 935 2,956 (2,021 ) 8,657 11,350 (2,693 )
Depreciation, Depletion and Amortization 23,658 22,122 1,536 90,816 92,221 (1,405 )
Impairment of Oil and Gas Producing Properties - - - 182,811 - 182,811
50,976 50,749 227 376,674 196,756 179,918

Operating Income 50,373 67,182 (16,809 ) 6,084 270,004 (263,920 )

Other Income (Expense):
Interest Income 244 1,642 (1,398 ) 2,430 10,921 (8,491 )
Other Income - - - - 18 (18 )
Other Interest Expense (7,915 ) (8,970 ) 1,055 (33,368 ) (41,645 ) 8,277

Income (Loss) Before Income Taxes 42,702 59,854 (17,152 ) (24,854 ) 239,298 (264,152 )
Income Tax Expense (Benefit) 14,574 21,627 (7,053 ) (14,616 ) 92,686 (107,302 )
Net Income (Loss) $ 28,128 $ 38,227 $ (10,099 ) $ (10,238 ) $ 146,612 $ (156,850 )

Net Income (Loss) Per Share (Diluted) $ 0.34 $ 0.46 $ (0.12 ) $ (0.13 ) $ 1.73 $ (1.86 )

Three Months Ended Twelve Months Ended
September 30, September 30,
PIPELINE AND STORAGE SEGMENT 2009 2008 Variance 2009 2008 Variance
Revenues from External Customers $ 31,573 $ 33,181 $ (1,608 ) $ 137,478 $ 135,052 $ 2,426
Intersegment Revenues 19,770 20,164 (394 ) 81,795 81,504 291
Total Operating Revenues 51,343 53,345 (2,002 ) 219,273 216,556 2,717

Operating Expenses:
Purchased Gas (5 ) 2 (7 ) 132 (10 ) 142
Operation and Maintenance 20,268 19,755 513 70,814 70,632 182
Property, Franchise and Other Taxes 4,681 4,224 457 17,470 16,763 707
Depreciation, Depletion and Amortization 8,699 8,242 457 35,115 32,871 2,244
33,643 32,223 1,420 123,531 120,256 3,275

Operating Income 17,700 21,122 (3,422 ) 95,742 96,300 (558 )

Other Income (Expense):
Interest Income 52 116 (64 ) 995 843 152
Other Income (411 ) 2,251 (2,662 ) 2,780 4,796 (2,016 )
Interest Expense on Long-Term Debt - - - - (31 ) 31
Other Interest Expense (6,821 ) (3,813 ) (3,008 ) (21,580 ) (13,752 ) (7,828 )

Income Before Income Taxes 10,520 19,676 (9,156 ) 77,937 88,156 (10,219 )
Income Tax Expense 4,744 6,458 (1,714 ) 30,579 34,008 (3,429 )
Net Income $ 5,776 $ 13,218 $ (7,442 ) $ 47,358 $ 54,148 $ (6,790 )

Net Income Per Share (Diluted) $ 0.07 $ 0.16 $ (0.09 ) $ 0.59 $ 0.64 $ (0.05 )

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30, September 30,
UTILITY SEGMENT 2009 2008 Variance 2009 2008 Variance
Revenues from External Customers $ 87,587 $ 127,464 $ (39,877 ) $ 1,097,550 $ 1,194,657 $ (97,107 )
Intersegment Revenues 2,135 2,044 91 15,474 15,612 (138 )
Total Operating Revenues 89,722 129,508 (39,786 ) 1,113,024 1,210,269 (97,245 )

Operating Expenses:
Purchased Gas 31,185 65,215 (34,030 ) 713,174 800,474 (87,300 )
Operation and Maintenance 36,104 44,765 (8,661 ) 191,192 202,745 (11,553 )
Property, Franchise and Other Taxes 9,392 9,726 (334 ) 44,215 45,476 (1,261 )
Depreciation, Depletion and Amortization 10,005 9,661 344 39,675 39,113 562
86,686 129,367 (42,681 ) 988,256 1,087,808 (99,552 )

Operating Income 3,036 141 2,895 124,768 122,461 2,307

Other Income (Expense):
Interest Income 1,138 1,148 (10 ) 2,486 1,836 650
Other Income 161 278 (117 ) 924 1,161 (237 )
Other Interest Expense (9,597 ) (5,913 ) (3,684 ) (32,417 ) (27,683 ) (4,734 )

Income (Loss) Before Income Taxes (5,262 ) (4,346 ) (916 ) 95,761 97,775 (2,014 )
Income Tax Expense (Benefit) (3,623 ) (3,590 ) (33 ) 37,097 36,303 794
Net Income (Loss) $ (1,639 ) $ (756 ) $ (883 ) $ 58,664 $ 61,472 $ (2,808 )

Net Income (Loss) Per Share (Diluted) $ (0.02 ) $ (0.01 ) $ (0.01 ) $ 0.73 $ 0.73 $ -

Three Months Ended Twelve Months Ended
September 30, September 30,
ENERGY MARKETING SEGMENT 2009 2008 Variance 2009 2008 Variance
Revenues from External Customers $ 47,318 $ 109,821 $ (62,503 ) $ 397,763 $ 549,932 $ (152,169 )
Intersegment Revenues 558 1,300 (742 ) 558 1,300 (742 )
Total Operating Revenues 47,876 111,121 (63,245 ) 398,321 551,232 (152,911 )

Operating Expenses:
Purchased Gas 47,292 111,926 (64,634 ) 380,677 535,917 (155,240 )
Operation and Maintenance 1,446 1,396 50 6,014 6,566 (552 )
Property, Franchise and Other Taxes 19 18 1 41 50 (9 )
Depreciation, Depletion and Amortization 11 11 - 42 42 -
48,768 113,351 (64,583 ) 386,774 542,575 (155,801 )

Operating Income (Loss) (892 ) (2,230 ) 1,338 11,547 8,657 2,890

Other Income (Expense):
Interest Income 12 30 (18 ) 79 323 (244 )
Other Income 24 58 (34 ) 225 264 (39 )
Other Interest Expense (6 ) (42 ) 36 (215 ) (175 ) (40 )

Income (Loss) Before Income Taxes (862 ) (2,184 ) 1,322 11,636 9,069 2,567
Income Tax Expense (Benefit) (519 ) (993 ) 474 4,470 3,180 1,290
Net Income (Loss) $ (343 ) $ (1,191 ) $ 848 $ 7,166 $ 5,889 $ 1,277

Net Income (Loss) Per Share (Diluted) $ - $ (0.01 ) $ 0.01 $ 0.09 $ 0.07 $ 0.02

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

Three Months Ended Twelve Months Ended
September 30, September 30,
ALL OTHER 2009 2008 Variance 2009 2008 Variance
Revenues from External Customers $ 10,887 $ 9,262 $ 1,625 $ 41,409 $ 53,265 $ (11,856 )
Intersegment Revenues - 3,864 (3,864 ) 3,890 14,115 (10,225 )
Total Operating Revenues 10,887 13,126 (2,239 ) 45,299 67,380 (22,081 )

Operating Expenses:
Purchased Gas 3,918 2,942 976 8,456 10,883 (2,427 )
Operation and Maintenance 7,395 12,609 (5,214 ) 35,547 45,998 (10,451 )
Property, Franchise and Other Taxes 358 384 (26 ) 1,498 1,662 (164 )
Depreciation, Depletion and Amortization 3,148 1,078 2,070 7,066 5,687 1,379
14,819 17,013 (2,194 ) 52,567 64,230 (11,663 )

Operating Income (Loss) (3,932 ) (3,887 ) (45 ) (7,268 ) 3,150 (10,418 )

Other Income (Expense):
Income from Unconsolidated Subsidiaries 646 1,437 (791 ) 3,366 6,303 (2,937 )
Impairment of Investment in Partnership - - - (1,804 ) - (1,804 )
Interest Income 40 311 (271 ) 583 1,232 (649 )
Other Income 264 10 254 302 1,062 (760 )
Other Interest Expense (551 ) (855 ) 304 (2,471 ) (3,782 ) 1,311

Income (Loss) Before Income Taxes (3,533 ) (2,984 ) (549 ) (7,292 ) 7,965 (15,257 )
Income Tax Expense (Benefit) (1,508 ) (1,413 ) (95 ) (5,221 ) 2,186 (7,407 )
Net Income (Loss) $ (2,025 ) $ (1,571 ) $ (454 ) $ (2,071 ) $ 5,779 $ (7,850 )

Net Income (Loss) Per Share (Diluted) $ (0.02 ) $ (0.02 ) $ - $ (0.03 ) $ 0.07 $ (0.10 )

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30, September 30,
CORPORATE 2009 2008 Variance 2009 2008 Variance
Revenues from External Customers $ 219 $ 199 $ 20 $ 894 $ 695 $ 199
Intersegment Revenues 1,003 962 41 4,065 3,844 221
Total Operating Revenues 1,222 1,161 61 4,959 4,539 420

Operating Expenses:
Operation and Maintenance 2,342 4,097 (1,755 ) 10,024 18,013 (7,989 )
Property, Franchise and Other Taxes 69 71 (2 ) 282 284 (2 )
Depreciation, Depletion and Amortization 174 172 2 696 689 7
2,585 4,340 (1,755 ) 11,002 18,986 (7,984 )

Operating Loss (1,363 ) (3,179 ) 1,816 (6,043 ) (14,447 ) 8,404

Other Income (Expense):
Interest Income 22,518 20,304 2,214 84,761 85,084 (323 )
Other Income 80 (203 ) 283 2,345 75 2,270
Interest Expense on Long-Term Debt (22,062 ) (18,055 ) (4,007 ) (79,419 ) (70,068 ) (9,351 )
Other Interest Expense (180 ) (1,160 ) 980 (3,004 ) (6,257 ) 3,253

Loss Before Income Taxes (1,007 ) (2,293 ) 1,286 (1,360 ) (5,613 ) 4,253
Income Tax Expense (Benefit) 1,892 2,368 (476 ) (1,189 ) (441 ) (748 )
Net Loss $ (2,899 ) $ (4,661 ) $ 1,762 $ (171 ) $ (5,172 ) $ 5,001

Net Loss Per Share (Diluted) $ (0.04 ) $ (0.06 ) $ 0.02 $ - $ (0.06 ) $ 0.06

Three Months Ended Twelve Months Ended
September 30, September 30,
INTERSEGMENT ELIMINATIONS 2009 2008 Variance 2009 2008 Variance
Intersegment Revenues $ (23,466 ) $ (28,334 ) $ 4,868 $ (105,782 ) $ (116,375 ) $ 10,593

Operating Expenses:
Purchased Gas (21,779 ) (27,269 ) 5,490 (100,657 ) (112,107 ) 11,450
Operation and Maintenance (1,687 ) (1,065 ) (622 ) (5,125 ) (4,268 ) (857 )
(23,466 ) (28,334 ) 4,868 (105,782 ) (116,375 ) 10,593

Operating Income - - - - - -

Other Income (Expense):
Interest Income (22,586 ) (21,092 ) (1,494 ) (85,558 ) (89,424 ) 3,866
Other Interest Expense 22,586 21,092 1,494 85,558 89,424 (3,866 )

Net Income $ - $ - $ - $ - $ - $ -

Net Income Per Share (Diluted) $ - $ - $ - $ - $ - $ -

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)
(Thousands of Dollars)

Three Months Ended Twelve Months Ended
September 30, September 30,
(Unaudited) (Unaudited)

Increase Increase
2009 2008 (Decrease) 2009 2008 (Decrease)

Capital Expenditures:
Exploration and Production (1) $ 36,612 $ 51,644 $ (15,032 ) $ 188,290 $ 192,187 $ (3,897 )
Pipeline and Storage (3) 15,264 59,316 (44,052 ) 50,118 165,520 (115,402 )
Utility 15,798 18,621 (2,823 ) 56,178 57,457 (1,279 )
Energy Marketing - 18 (18 ) 25 39 (14 )
Total Reportable Segments 67,674 129,599 (61,925 ) 294,611 415,203 (120,592 )
All Other (2) 5,401 182 5,219 8,406 1,485 6,921
Corporate 148 138 10 297 221 76
Eliminations - - - (344 ) (2,407 ) 2,063
Total Capital Expenditures $ 73,223 $ 129,919 $ (56,696 ) $ 302,970 $ 414,502 $ (111,532 )

(1) Amount for the quarter and year ended September 30, 2009 includes $9.1 million of accrued capital expenditures, the majority
of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at
September 30, 2009 since it represents a non-cash investing activity at that date.

(2) Amount for the quarter and year ended September 30, 2009 includes $0.7 million of accrued capital expenditures related to the
construction of the Midstream Covington Gathering System. This amount has been excluded from the Consolidated Statement of
Cash Flows at September 30, 2009 since it represents a non-cash investing activity at that date.

(3) Amount for the year ended September 30, 2009 excludes $16.8 million of capital expenditures related to the Empire Connector
project accrued at September 30, 2008 and paid during the year ended September 30, 2009. This amount was excluded from
the Consolidated Statement of Cash Flows at September 30, 2008 since it represented a non-cash investing activity at that date.
The amount has been included in the Consolidated Statement of Cash Flows at September 30, 2009.

DEGREE DAYS

Percent Colder
(Warmer) Than:
Three Months Ended September 30 Normal 2009 2008 Normal Last Year

Buffalo, NY 178 143 102 (19.7 ) 40.2
Erie, PA 135 112 42 (17.0 ) 166.7

Twelve Months Ended September 30

Buffalo, NY 6,692 6,701 6,277 0.1 6.8
Erie, PA 6,243 6,176 5,779 (1.1 ) 6.9

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Three Months Ended Twelve Months Ended
September 30, September 30,
Increase Increase
2009 2008 (Decrease) 2009 2008 (Decrease)

Gas Production/Prices:
Production (MMcf)
Gulf Coast 2,767 2,165 602 9,886 11,033 (1,147 )
West Coast 999 1,029 (30 ) 4,063 4,039 24
Appalachia 2,271 1,732 539 8,335 7,269 1,066
Total Production 6,037 4,926 1,111 22,284 22,341 (57 )

Average Prices (Per Mcf)
Gulf Coast $ 3.61 $ 11.57 $ (7.96 ) $ 4.54 $ 10.03 $ (5.49 )
West Coast 3.36 9.54 (6.18 ) 3.91 8.71 (4.80 )
Appalachia 4.09 11.27 (7.18 ) 5.52 9.73 (4.21 )
Weighted Average 3.75 11.04 (7.29 ) 4.79 9.70 (4.91 )
Weighted Average after Hedging 6.00 9.41 (3.41 ) 6.94 9.05 (2.11 )

Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast 170 96 74 640 505 135
West Coast 691 635 56 2,674 2,460 214
Appalachia 17 17 - 59 105 (46 )
Total Production 878 748 130 3,373 3,070 303

Average Prices (Per Barrel)
Gulf Coast $ 65.50 $ 123.54 $ (58.04 ) $ 54.58 $ 107.27 $ (52.69 )
West Coast 62.56 108.32 (45.76 ) 50.90 98.17 (47.27 )
Appalachia 59.08 114.20 (55.12 ) 56.15 97.40 (41.25 )
Weighted Average 63.06 110.40 (47.34 ) 51.69 99.64 (47.95 )
Weighted Average after Hedging 71.39 87.29 (15.90 ) 64.94 81.75 (16.81 )

Total Production (MMcfe) 11,305 9,414 1,891 42,522 40,761 1,761

Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1) $ 0.61 $ 0.63 $ (0.02 ) $ 0.69 $ 0.60 $ 0.09
Lease Operating Expense per Mcfe (1) $ 1.59 $ 1.82 $ (0.23 ) $ 1.47 $ 1.64 $ (0.17 )
Depreciation, Depletion & Amortization per Mcfe (1) $ 2.09 $ 2.35 $ (0.26 ) $ 2.14 $ 2.26 $ (0.12 )

(1) Refer to the table titled, "Segment Operating Results and Statistics (Unaudited)," for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for Fiscal 2010

SWAPS Volume Average Hedge Price
Oil 1.7 MMBBL $74.59 / BBL
Gas 15.6 BCF $6.90 / MCF

Hedging Summary for Fiscal 2011

SWAPS Volume Average Hedge Price
Oil 0.6 MMBBL $66.54 / BBL
Gas 12.6 BCF $7.22 / MCF

Hedging Summary for Fiscal 2012

SWAPS Volume Average Hedge Price
Oil 0.3 MMBBL $62.95 / BBL
Gas 8.8 BCF $7.49 / MCF

Gross Wells in Process of Drilling
Twelve Months Ended September 30, 2009
Total
Gulf West East Company

Wells in Process - Beginning of Period
Exploratory 1.00 0.00 24.00 25.00
Developmental 1.00 1.00 123.00 125.00
Wells Commenced
Exploratory 0.00 0.00 28.00 28.00
Developmental 0.00 26.00 198.00 224.00
Wells Completed
Exploratory 1.00 0.00 2.00 3.00
Developmental 0.00 27.00 250.00 277.00
Wells Plugged & Abandoned
Exploratory 0.00 0.00 3.00 3.00
Developmental 1.00 0.00 0.00 1.00
Wells in Process - End of Period
Exploratory 0.00 0.00 47.00 47.00
Developmental 0.00 0.00 71.00 71.00

Net Wells in Process of Drilling
Twelve Months Ended September 30, 2009
Total
Gulf West East Company

Wells in Process - Beginning of Period
Exploratory 0.29 0.00 23.00 23.29
Developmental 0.30 1.00 122.00 123.30
Wells Commenced
Exploratory 0.00 0.00 21.50 21.50
Developmental 0.00 26.00 197.00 223.00
Wells Completed
Exploratory 0.29 0.00 2.00 2.29
Developmental 0.00 27.00 250.00 277.00
Wells Plugged & Abandoned
Exploratory 0.00 0.00 3.00 3.00
Developmental 0.30 0.00 0.00 0.30
Wells in Process - End of Period
Exploratory 0.00 0.00 39.50 39.50
Developmental 0.00 0.00 69.00 69.00

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Reserve Quantity Information

Gas MMcf
U.S.
Gulf Coast West Coast Appalachian Total
Region Region Region Company
Proved Developed and
Undeveloped Reserves:
September 30, 2008 24,641 72,860 128,398 225,899
Extensions and Discoveries 6,698 3,282 49,249 59,229
Revisions of Previous Estimates 9,407 488 (19,484 ) (9,589 )
Production (9,886 ) (4,063 ) (8,335 ) (22,284 )
Purchases of Minerals in Place - 392 - 392
Sales of Minerals in Place (4,693 ) - - (4,693 )
September 30, 2009 26,167 72,959 149,828 248,954

Proved Developed Reserves:

September 30, 2008 18,242 68,453 115,824 202,519
September 30, 2009 18,051 67,603 120,579 206,233

Oil Mbbl
U.S.
Gulf Coast West Coast Appalachian Total
Region Region Region Company
Proved Developed and
Undeveloped Reserves:
September 30, 2008 1,358 44,444 396 46,198
Extensions and Discoveries 302 896 15 1,213
Revisions of Previous Estimates 447 43 (41 ) 449
Production (640 ) (2,674 ) (59 ) (3,373 )
Purchases of Minerals in Place - 2,115 - 2,115
Sales of Minerals in Place (15 ) - - (15 )
September 30, 2009 1,452 44,824 311 46,587

Proved Developed Reserves:

September 30, 2008 1,313 37,224 357 38,894
September 30, 2009 1,194 37,711 285 39,190

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

Pipeline & Storage Throughput- (millions of cubic feet - MMcf)

Three Months Ended Twelve Months Ended
September 30, September 30,
Increase
2009 2008 Decrease 2009 2008 (Decrease)
Firm Transportation - Affiliated 10,473 10,997 (524 ) 109,884 107,846 2,038
Firm Transportation - Non-Affiliated 41,298 59,071 (17,773 ) 246,887 245,327 1,560
Interruptible Transportation 512 1,354 (842 ) 4,070 5,197 (1,127 )
52,283 71,422 (19,139 ) 360,841 358,370 2,471

Utility Throughput - (MMcf)
Three Months Ended Twelve Months Ended
September 30, September 30,
Increase Increase
2009 2008 (Decrease) 2009 2008 (Decrease)
Retail Sales:
Residential Sales 3,835 3,583 252 58,835 57,463 1,372
Commercial Sales 567 571 (4 ) 9,551 9,769 (218 )
Industrial Sales 16 29 (13 ) 515 552 (37 )
4,418 4,183 235 68,901 67,784 1,117
Off-System Sales - 895 (895 ) 513 5,686 (5,173 )
Transportation 7,275 8,301 (1,026 ) 59,751 64,267 (4,516 )
11,693 13,379 (1,686 ) 129,165 137,737 (8,572 )

Energy Marketing Volumes
Three Months Ended Twelve Months Ended
September 30, September 30,
Increase Increase
2009 2008 (Decrease) 2009 2008 (Decrease)
Natural Gas (MMcf) 10,400 8,931 1,469 60,858 56,120 4,738

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2010 EARNINGS GUIDANCE AND SENSITIVITY

Earnings per share sensitivity to changes
Fiscal 2010 (Diluted earnings per share guidance*) from prices used in guidance* ^

$1 change per MMBtu gas $5 change per Bbl oil
Earnings Range Increase Decrease Increase Decrease

Consolidated Earnings $2.30 - $2.65 + $0.06 - $0.06 + $0.07 - $0.07

* Please refer to forward looking statement footnote featured earlier in this document.

^ This sensitivity table is current as of November 6, 2009 and only considers revenue from the Exploration and Production segment's
crude oil and natural gas sales. This revenue is based upon pricing used in the Company's earnings forecast. For its fiscal 2010
earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $5 per MMBtu
for natural gas and $75 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca's
production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge
contracts at their maturity.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

Quarter Ended September 30 (unaudited) 2009 2008

Operating Revenues $ 278,933,000 $ 397,858,000

Net Income Available for Common Stock $ 26,998,000 $ 43,266,000

Earnings Per Common Share:
Basic $ 0.34 $ 0.54
Diluted $ 0.33 $ 0.52

Weighted Average Common Shares:
Used in Basic Calculation 80,240,861 80,858,668
Used in Diluted Calculation 81,607,864 82,896,107

Twelve Months Ended September 30 (unaudited)

Operating Revenues $ 2,057,852,000 $ 2,400,361,000

Net Income Available for Common Stock $ 100,708,000 $ 268,728,000

Earnings Per Common Share:
Basic $ 1.26 $ 3.27
Diluted $ 1.25 $ 3.18

Weighted Average Common Shares:
Used in Basic Calculation 79,649,965 82,304,335
Used in Diluted Calculation 80,628,685 84,474,839

National Fuel Gas Company
Analyst:
James C. Welch, 716-857-6987
or
Media:
Donna L. DeCarolis, 716-857-7872

Copyright Business Wire 2009