NATIONAL FUEL GAS CO - FORM 8-K - EX-99 - EXHIBIT 99

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8-K - 8-K - NATIONAL FUEL GAS CO	nfg-1122017x8k.htm

Exhibit 99




		6363 Main Street/Williamsville, NY 14221

Release Date:	Immediate November 2, 2017	Brian M. Welsch Investor Relations 716-857-7875	David P. Bauer Treasurer 716-857-7318

NATIONAL FUEL REPORTS FOURTH QUARTER

AND FULL YEAR FISCAL 2017 EARNINGS

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2017.

FISCAL 2017 FOURTH QUARTER SUMMARY


•	Consolidated net income of $45.6 million, or $0.53 per share, compared to consolidated net income of $37.6 million, or $0.44 per share, and operating results of $56.6 million, or $0.66 per share, in the prior year (see reconciliation below)


•	Consolidated adjusted EBITDA of $142.8 million (non-GAAP reconciliation on page 25)


•	Net production of 40.4 Bcfe, a 1% increase from the prior year


•	Price-related natural gas production curtailments of 2.5 Bcf in Appalachia


•	Average natural gas prices, after the impact of hedging, of $2.91 per Mcf, down $0.18 per Mcf from the prior year


•	Average oil prices, after the impact of hedging, of $54.77 per Bbl, down $5.24 per Bbl from the prior year


•	Gathering revenues of $25.0 million, up 6% from the prior year, on 44.9 Bcf of gathering system throughput

FISCAL 2017 HIGHLIGHTS


•	Consolidated net income of $283.5 million, or $3.30 per share, compared to consolidated net loss of $291.0 million, or $3.43 per share, and operating results of $263.6 million, or $3.09 per share, in the prior year (see reconciliation below)


•	Consolidated adjusted EBITDA of $777.0 million (non-GAAP reconciliation on page 25)


•	Cash provided by operations exceeded net cash used in investing activities by $262 million


•	Gathering net income of $40.4 million, a 32% increase from the prior year


•	Net production of 173.5 Bcfe, an 8% increase from the prior year


•	Proved reserves at September 30, 2017, of 2.2 Tcfe, an increase of 17% from September 30, 2016


•	Seneca finding and development costs, excluding revisions, of $0.60 per Mcfe


•	Increased shareholder dividend for the 47th consecutive year to an annualized distribution of $1.66 per share

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OPERATING RESULTS



	Three Months Ended					Fiscal Year Ended
	September 30,					September 30,
(in thousands except per share amounts)	2017		2016			2017		2016
Reported GAAP earnings (loss)	$	45,577	$	37,553		$	283,482	$	(290,958	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)			32,756					948,307
Tax impact of impairment of oil and gas properties			(13,757		)			(398,287		)
Joint development agreement professional fees (E&P)								7,855
Tax impact of joint development agreement professional fees								(3,299		)
Operating results	$	45,577	$	56,552		$	283,482	$	263,618

Reported GAAP earnings (loss) per share	$	0.53	$	0.44		$	3.30	$	(3.43	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)			0.38					11.18
Tax impact of impairment of oil and gas properties			(0.16		)			(4.69		)
Joint development agreement professional fees (E&P)								0.09
Tax impact of joint development agreement professional fees								(0.04		)
Earnings per share impact of diluted shares								(0.02		)
Operating results per diluted share	$	0.53	$	0.66		$	3.30	$	3.09

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel ended its 2017 fiscal year on a strong note. Our Exploration and Production segment continues to make progress in the appraisal and optimization of our Utica shale potential. Utica well completions helped drive the 17 percent increase in our proved reserves while lowering our finding and development costs in Appalachia to $0.51 per Mcf. Our Gathering segment meanwhile capped-off an outstanding year that saw its earnings grow by 32 percent. In spite of commodity price volatility and regulatory challenges, the Company generated positive free cash flow for the second consecutive year, which allowed us to continue to grow our dividend, maintain the safety and reliability of our pipeline systems, and position our upstream and midstream businesses for the next leg of growth in Appalachia.

“As we enter 2018, we are optimistic that the ongoing build-out of pipeline infrastructure in the region will help local pricing and provide a tailwind while we continue to work through the regulatory process with our Northern Access project. In any event, just as we have always done, we will continue to manage our business in a way that minimizes the risk to our earnings and cash flows, maintains a strong balance sheet to preserve financial flexibility as opportunities in the market arise, and prioritizes economic returns that add long-term value for our shareholders.”

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DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form on pages 9 through 12 of this report. It may be helpful to refer to those tables while reviewing this discussion. Note that management defines operating results as reported GAAP earnings before items impacting comparability and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, impairments, and items impacting comparability.

Upstream Business

Exploration and Production Segment

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



	Three Months Ended							Fiscal Year Ended
	September 30,							September 30,
(in thousands except per share amounts)	2017		2016		Variance			2017		2016			Variance
Net Income / (Loss)	$	30,354	$	16,744	$	13,610		$	129,326	$	(452,842	)	$	582,168
Net Income / (Loss) Per Share (Diluted)	$	0.35	$	0.20	$	0.15		$	1.50	$	(5.34	)	$	6.84
Adjusted EBITDA	$	75,303	$	95,157	$	(19,854	)	$	360,979	$	363,830		$	(2,851	)

The $13.6 million increase in the Exploration and Production segment’s fourth quarter earnings was primarily attributable to the non-recurrence of a $32.8 million ($19.0 million after-tax) ceiling test impairment charge recorded to reduce the book value of Seneca’s oil and gas properties in the prior year. Excluding the impairment charge, results for the segment declined $5.4 million, or $0.07 per share, as the impact of higher net production and the benefit of a lower effective income tax rate was more than offset by a decline in realized natural gas and oil prices, an increase in lease operating and transportation (“LOE”) expense, and higher other operating expenses.

Seneca’s fourth quarter net production was 40.4 billion cubic feet equivalent (“Bcfe”), an increase of 0.5 Bcfe, or 1 percent, from the prior year. Net natural gas production increased 0.8 Bcf, or 2 percent, due to significantly reduced price-related curtailments across Seneca’s Appalachian producing areas and higher production in the Western Development Area (“WDA”) from new wells completed and brought online during the year, partially offset by natural declines from Marcellus locations in the Eastern Development Area (“EDA”). As a result of depressed local daily spot prices in Pennsylvania, Seneca voluntarily curtailed an estimated 2.5 Bcf of net natural gas production in the fourth quarter, which was down from an estimated 6.2 Bcf of curtailments in the prior year. Seneca’s oil production decreased 49 thousand barrels ("Mbbl") due mainly to a reduction in well workover activity in prior quarters and modifications to steaming operations at its North Midway Sunset field in California.

Seneca's average realized natural gas price, after the impact of hedging and all marketing and transportation costs, was $2.91 per thousand cubic feet ("Mcf"), a decrease of $0.18 per Mcf from the prior year. Seneca's average realized oil price, after the impact of hedging, was $54.77 per barrel ("Bbl"), a decrease of $5.24 per Bbl. The decline in Seneca’s realized natural gas and oil prices is primarily attributable to the expiration of physical firm sales and financial hedge contracts over the past 12 months that had favorable pricing relative to current market prices and hedge book. Seneca's average realized natural gas and oil prices benefited from an uplift of $0.47 per Mcf and $7.33 per Bbl, respectively, from financial hedges settled during the quarter.

LOE increased $4.6 million, or $0.10 per Mcf equivalent ("Mcfe") on a cost per unit of production basis, due primarily to an increase in well workover and repair activities as well as higher steam volumes at North Midway Sunset in California. The elevated activities are expected to arrest, and in some cases reverse, natural field production declines in fiscal 2018. LOE expense in California is projected to return to normal levels over the next few quarters. Other operating expenses increased $2.9 million versus the prior year due mainly to a one-time payment made to reimburse a third-party pipeline operator for development costs on a project that Seneca has future contracted firm transportation capacity. Seneca will recoup the full amount of the payment when facilities are ultimately constructed.

A decrease in Seneca’s effective tax rate increased the segment’s earnings by $7.2 million in the fourth quarter. This decrease was largely due to an anticipated increase in the sale of future natural gas production at delivery points in the southeastern U.S.

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utilizing firm transportation capacity on the Atlantic Sunrise project, which decreased the effective tax rate used in the calculation of Seneca’s deferred taxes. Seneca holds approximately 190 million cubic feet ("MMcf") per day of capacity on Atlantic Sunrise, which commenced construction during the fourth quarter and is expected to be in-service before the end of the Company’s 2018 fiscal year.

For fiscal 2017, the $582.2 million increase in the Exploration and Production segment’s earnings was primarily attributable to the non-recurrence of two items that reduced earnings in the prior year. In fiscal 2016, Seneca recorded a $948.3 million ($550.0 million after-tax) ceiling test impairment charge to reduce the book value of Seneca’s oil and gas properties. Seneca also incurred $7.9 million ($4.6 million after-tax) in the prior year for professional and legal expenses related to the joint development agreement ("JDA") to develop certain Marcellus wells. Excluding these items, annual results for the segment improved $27.6 million, or $0.31 per share, due primarily to the impact of higher net production, lower general and administrative ("G&A") and depreciation, depletion and amortization (“DD&A”) expenses, and the benefit of a lower effective income tax rate, partially offset by a decline in realized natural gas and oil prices.

Seneca generated net production of 173.5 Bcfe in fiscal 2017, an increase of 12.4 Bcfe, or 8 percent, versus the prior year and the highest annual output in the Company’s history. Seneca's average realized natural gas and oil prices, after the impact of hedging and all marketing and transportation costs, were $2.95 per Mcf and $53.87 Bbl, respectively, a decrease of $0.07 per Mcf and $4.04 per Bbl from fiscal 2016.

G&A expense, excluding the joint development agreement costs, declined $4.0 million, or $0.05 per Mcfe, due to lower personnel costs. DD&A expense decreased $27.4 million as the decline in Seneca’s full cost pool depletion rate more than offset the impact of higher production. Seneca’s per unit DD&A decreased by $0.22 per Mcfe to $0.65 per Mcfe due mainly to a lower depletable fixed asset balance resulting from the ceiling test impairment charges recorded in fiscal 2016. LOE expense increased by $12.1 million in fiscal 2017, in-line with production growth, resulting in per unit LOE expense holding flat versus the prior year at $0.96 per Mcfe.

A decrease in Seneca’s effective tax rate increased the segment’s earnings by $10.6 million in fiscal 2017. The decrease in the effective tax rate was due mostly to the impact on deferred taxes of Seneca's Atlantic Sunrise capacity discussed above, as well as an enhanced oil recovery tax credit related to Seneca’s California properties. This credit was applicable this year as a result of relatively low domestic crude oil prices.

Year End Proved Reserves

Seneca’s total proved natural gas and crude oil reserves at September 30, 2017 increased 17 percent to 2,154 Bcfe from 1,849 Bcfe at September 30, 2016. In fiscal 2017, Seneca recorded 391 Bcfe of proved reserve extensions and discoveries, primarily from Utica and Marcellus locations in Appalachia, and 111 Bcfe of net positive revisions, due mainly to higher natural gas and oil prices during the year. Seneca sold 22 Bcfe of proved reserves associated with 16 Marcellus and Utica wells located in non-core areas of the WDA during the fiscal year. The Company’s total proved reserve base is now 92 percent natural gas and 8 percent crude oil. Seneca’s total proved undeveloped reserves (“PUDs”) at the end of fiscal 2017 were 612 Bcfe, or 28 percent of total proved reserves.

Adjusting for sales and revisions, Seneca replaced 225 percent of its production in fiscal 2017, up from the 117 percent reserve replacement achieved in fiscal 2016. The year over year improvement was due mainly to the success of Seneca’s Utica Shale appraisal program in the WDA, increased development activity in the EDA where Seneca added a rig this past May, and the general shift to developing more 100 percent working interest wells in the WDA as activity on JDA locations is set to conclude in fiscal 2018.

Seneca’s consolidated finding and development (“F&D”) cost, excluding the impact of positive revisions that were largely related to an increase in natural gas and oil prices, was $0.60 per Mcfe in fiscal 2017, driven primarily by Utica and Marcellus shale extensions and discoveries that achieved a drill-bit F&D cost of $0.51 per Mcfe in Appalachia. The Company’s three-year average consolidated F&D cost was $0.98 per Mcfe, down $0.34 per Mcfe from the three-year average of $1.32 per Mcfe at the end of fiscal 2016.

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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							Fiscal Year Ended
	September 30,							September 30,
(in thousands except per share amounts)	2017		2016		Variance			2017		2016		Variance
Net Income / (Loss)	$	13,791	$	16,816	$	(3,025	)	$	68,446	$	76,610	$	(8,164	)
Net Income / (Loss) Per Share (Diluted)	$	0.16	$	0.20	$	(0.04	)	$	0.80	$	0.90	$	(0.10	)
Adjusted EBITDA	$	39,049	$	46,517	$	(7,468	)	$	180,328	$	199,446	$	(19,118	)

The $3.0 million decrease in the Pipeline and Storage segment's fourth quarter earnings was primarily due to a decline in operating revenues and higher Operation and Maintenance (“O&M”) expense, offset partially by the impact of a lower effective income tax rate. Operating revenues decreased $3.7 million due to the scheduled reduction in Supply Corporation and Empire’s transportation rates that went into effect during the first quarter of fiscal 2017 resulting from their respective rate case settlements, lower reservation revenues resulting from recent contract terminations and restructurings, and a decline in short-term interruptible transportation service in the current quarter. O&M expense increased $3.4 million due mostly to costs associated with the overhaul of two compressor facilities and an increase in the reserve for preliminary engineering costs on projects in development.

The Pipeline and Storage segment’s fiscal 2017 earnings decreased $8.2 million from the prior year as lower operating revenues and higher O&M expenses were only partially offset by a decrease in DD&A expense and the impact of a lower effective income tax rate. Similar to the fourth quarter, operating revenues were negatively impacted by scheduled rate reductions related to Supply and Empire’s rate case settlements, as well as contract terminations and restructurings and lower demand for short-term interruptible transportation service. The increase in O&M expense was primarily due to higher personnel costs and an increase in compressor station maintenance expenses. DD&A expense decreased primarily due to Empire’s rate case settlement, which lowered the subsidiary’s depreciation rate.

Gathering Segment

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



	Three Months Ended						Fiscal Year Ended
	September 30,						September 30,
(in thousands except per share amounts)	2017		2016		Variance		2017		2016		Variance
Net Income / (Loss)	$	9,003	$	8,537	$	466	$	40,377	$	30,499	$	9,878
Net Income / (Loss) Per Share (Diluted)	$	0.10	$	0.10	$	—	$	0.47	$	0.36	$	0.11
Adjusted EBITDA	$	21,206	$	20,963	$	243	$	94,380	$	78,685	$	15,695

The Gathering segment’s fourth quarter earnings increased 5 percent versus the prior year due to higher operating revenues and a lower effective tax rate, partially offset by higher operating expenses. Operating revenues increased $1.4 million, or 6 percent, from the prior year due mostly to higher throughput. The Company transported 44.9 Bcf on its gathering systems in the fourth quarter, an increase of 2.3 Bcf, or 5 percent, from the prior year. O&M expense increased $1.3 million due to higher personnel costs and expenses associated with operating new gathering and compression assets placed in service during the past year.

The Gathering segment’s fiscal 2017 earnings increased $9.9 million, or 32 percent, versus the prior year due mainly to higher operating revenues, offset slightly by higher O&M and DD&A expenses. The growth in Seneca’s gross natural gas production in Appalachia, which includes production from Marcellus joint development locations, helped drive a 20 percent increase in throughput across the Company’s gathering systems during the year. O&M expense increased $2.8 million due to

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higher personnel and contract labor costs associated with the continued growth of the segment. DD&A expense increased due to higher gross plant in service during the 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									Fiscal Year Ended
	September 30,									September 30,
(in thousands except per share amounts)	2017			2016			Variance			2017		2016		Variance
Net Income / (Loss)	$	(4,168	)	$	(1,784	)	$	(2,384	)	$	46,935	$	50,960	$	(4,025	)
Net Income / (Loss) Per Share (Diluted)	$	(0.05	)	$	(0.02	)	$	(0.03	)	$	0.55	$	0.60	$	(0.05	)
Adjusted EBITDA	$	11,846		$	10,400		$	1,446		$	151,078	$	148,683	$	2,395

The Utility segment’s fourth quarter net loss increased $2.4 million from the prior year as an improvement in the segment’s operating loss was more than offset by higher interest expense, lower interest and other income, and the impact of a lower income tax benefit. The $1.5 million improvement in Distribution’s operating loss was largely attributable to the impact of new customer rates in Distribution’s New York service territory that went into effect following the rate case order issued in April as well as lower O&M expense. The decrease in interest and other income was primarily due to lower accrued interest income on regulatory reserve accounts, while interest expense was negatively impacted by a non-recurring regulatory adjustment that was recorded in the prior year.

For fiscal 2017, the Utility segment’s earnings decreased $4.0 million as higher utility margin (operating revenues less purchased gas costs) was more than offset by an increase in O&M, DD&A, and interest expenses and a decrease in interest and other income. Utility margin increased $9.2 million due mainly to an increase in normalized customer usage, the benefit of new customer rates in New York, and the impact of regulatory adjustments. O&M expense increased $6.1 million due mainly to higher personnel costs. DD&A expense increased $4.0 million due to higher average plant balances during the year, which was primarily driven by the replacement of Distribution’s customer information system that was placed in service in May of fiscal 2016.

Energy Marketing Segment

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



	Three Months Ended								Fiscal Year Ended
	September 30,								September 30,
(in thousands except per share amounts)	2017			2016		Variance			2017		2016		Variance
Net Income / (Loss)	$	(614	)	$	231	$	(845	)	$	1,509	$	4,348	$	(2,839	)
Net Income / (Loss) Per Share (Diluted)	$	(0.01	)	$	—	$	(0.01	)	$	0.02	$	0.05	$	(0.03	)
Adjusted EBITDA	$	(1,134	)	$	87	$	(1,221	)	$	2,080	$	6,655	$	(4,575	)

The Energy Marketing segment's fourth quarter earnings decreased slightly versus the prior year, resulting in a net loss of $0.6 million, or $0.01 per share. For fiscal 2017, the $2.8 million decline in the Energy Marketing segment’s earnings was due largely to lower customer margins. NFR’s customer margins were negatively impacted by stronger natural gas prices at local purchase points relative to NYMEX-based customer sales contracts during the winter heating season.

Corporate and All Other

The Corporate and All Other category’s net loss of $2.8 million for the fourth quarter was relatively unchanged from the $3.0 million net loss in the prior year. For fiscal 2017, the Corporate and All Other category had a net loss of $3.1 million compared to a net loss of $0.5 million in the prior year. The $2.6 million increase in the net loss was primarily attributable to the non-recurrence of life insurance proceeds and the related tax benefits that were recognized in the prior year.

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GUIDANCE

National Fuel is revising its fiscal 2018 earnings guidance to be within a range of $2.75 to $3.05 per share, or $2.90 per share at the midpoint of the range. The $0.40 per share decrease from the fiscal 2017 earnings of $3.30 per share is being driven primarily by lower expected price realizations after hedging on Seneca’s natural gas and oil production and higher expected operating costs at the Company’s regulated businesses, offset partially by the impact of normal weather on the Utility segment's earnings and an increase in projected natural gas production in Appalachia, which will benefit earnings for the Company’s Exploration and Production and Gathering segments.

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



	Updated FY 2018 Guidance
Consolidated Earnings per Share	$2.75 to $3.05

Capital Expenditures (Millions)
Exploration and Production (1)	$275 - $325
Pipeline and Storage	$110 - $140
Gathering	$60 - $80
Utility	$90 - $100
Consolidated Capital Expenditures	$535 - $645



Exploration & Production Segment Guidance

Commodity Price Assumptions
NYMEX natural gas price	$3.00 /MMBtu
Appalachian basin spot price	$2.40 /MMBtu
NYMEX (WTI) crude oil price	$50.00 /Bbl
California oil price (% of WTI)	95%

Production (Bcfe)
East Division - Appalachia (2)	165 to 180
West Division - California	~ 20
Total Production	185 to 200

E&P Operating Costs ($/Mcfe)
LOE	$0.90 - $1.00
G&A	$0.30 - $0.35
DD&A	$0.65 - $0.70

Other Business Segment Guidance
Gathering Segment Revenues (Millions)	$115 - $125
Pipeline and Storage Segment Revenues (Millions)	~$295

(1) Net of conveyance proceeds received from joint development partner for working interest in joint development wells.

(2) Seneca East Division - Appalachia production guidance assumes approximately 32 Bcf of spot sales at the midpoint of guidance.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 3, 2017, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 833-287-0795, using conference ID number “96083185.” 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 “96083185.” Both the webcast and a telephonic replay will be available until the close of business on Friday, November 10, 2017.

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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:	Brian M. Welsch	716-857-7875
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 contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the price of natural gas or oil; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2017
(Unaudited)


	Upstream			Midstream Businesses						Downstream Businesses

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

Fourth quarter 2016 GAAP earnings	$	16,744		$	16,816		$	8,537		$	(1,784	)	$	231		$	(2,991	)	$	37,553
Items impacting comparability:
Impairment of oil and gas producing properties	32,756																		32,756
Tax impact of impairment of oil and gas producing properties	(13,757		)																(13,757		)
Fourth Quarter 2016 operating results	35,743			16,816			8,537			(1,784		)	231			(2,991		)	56,552

Drivers of operating results
Higher (lower) crude oil prices	(2,303		)																(2,303		)
Higher (lower) natural gas prices	(4,202		)																(4,202		)
Higher (lower) natural gas production	1,677																		1,677
Higher (lower) crude oil production	(1,891		)																(1,891		)
Derivative mark to market adjustments	(765		)																(765		)
Lower (higher) lease operating and transportation expenses	(3,021		)																(3,021		)

Higher (lower) transportation revenues				(2,364		)													(2,364		)
Higher (lower) gathering and processing revenues							926												926
Lower (higher) other operating expenses	(1,952		)	(2,185		)	(869		)	541									(4,465		)

Impact of new rates										554									554

Higher (lower) margins													(703		)				(703		)

Higher (lower) interest income										(560		)							(560		)

Lower (higher) interest expense										(738		)							(738		)

Lower (higher) income tax expense / effective tax rate	7,215			1,453			536			(1,837		)							7,367

All other / rounding	(147		)	71			(127		)	(344		)	(142		)	202			(487		)
Fourth quarter 2017 GAAP earnings and operating results	$	30,354		$	13,791		$	9,003		$	(4,168	)	$	(614	)	$	(2,789	)	$	45,577

* Amounts do not reflect intercompany eliminations

Page 10.





NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2017
(Unaudited)


	Upstream			Midstream Businesses						Downstream Businesses

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

Fourth quarter 2016 GAAP earnings	$	0.20		$	0.20		$	0.10		$	(0.02	)	$	—		$	(0.04	)	$	0.44
Items impacting comparability:
Impairment of oil and gas producing properties	0.38																		0.38
Tax impact of impairment of oil and gas producing properties	(0.16		)																(0.16		)
Fourth quarter 2016 operating results	0.42			0.20			0.10			(0.02		)	—			(0.04		)	0.66

Drivers of operating results
Higher (lower) crude oil prices	(0.03		)																(0.03		)
Higher (lower) natural gas prices	(0.05		)																(0.05		)
Higher (lower) natural gas production	0.02																		0.02
Higher (lower) crude oil production	(0.02		)																(0.02		)
Derivative mark to market adjustments	(0.01		)																(0.01		)
Lower (higher) lease operating and transportation expenses	(0.04		)																(0.04		)

Higher (lower) transportation revenues				(0.03		)													(0.03		)
Higher (lower) gathering and processing revenues							0.01												0.01
Lower (higher) other operating expenses	(0.02		)	(0.03		)	(0.01		)	0.01									(0.05		)

Impact of new rates										0.01									0.01

Higher (lower) margins													(0.01		)				(0.01		)

High (lower) interest income										(0.01		)							(0.01		)

Lower (higher) interest expense										(0.01		)							(0.01		)

Lower (higher) income tax expense / effective tax rate	0.08			0.02			0.01			(0.02		)							0.09

All other / rounding	—			—			(0.01		)	(0.01		)	—			0.02			—
Fourth quarter 2017 GAAP earnings and operating results	$	0.35		$	0.16		$	0.10		$	(0.05	)	$	(0.01	)	$	(0.02	)	$	0.53

* Amounts do not reflect intercompany eliminations

Page 11.




NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2017
(Unaudited)

	Upstream			Midstream Businesses						Downstream Businesses

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

Fiscal 2016 GAAP earnings	$	(452,842	)	$	76,610		$	30,499		$	50,960		$	4,348		$	(533	)	$	(290,958	)
Items impacting comparability:
Impairment of oil and gas producing properties	948,307																		948,307
Tax impact of impairment of oil and gas producing properties	(398,287		)																(398,287		)
Joint development agreement professional fees	7,855																		7,855
Tax impact of joint development agreement professional fees	(3,299		)																(3,299		)
Fiscal 2016 operating results	101,734			76,610			30,499			50,960			4,348			(533		)	263,618

Drivers of operating results
Higher (lower) crude oil prices	(7,198		)																(7,198		)
Higher (lower) natural gas prices	(7,318		)																(7,318		)
Higher (lower) natural gas production	26,571																		26,571
Higher (lower) crude oil production	(6,884		)																(6,884		)
Lower (higher) lease operating and transportation expenses	(7,851		)																(7,851		)
Lower (higher) depreciation / depletion	17,808			1,350			(571		)	(2,577		)							16,010

Higher (lower) transportation revenues				(6,885		)													(6,885		)
Higher (lower) gathering and processing revenues							11,852												11,852
Lower (higher) other operating expenses	2,193			(4,377		)	(1,799		)	(3,335		)				(1,181		)	(8,499		)
Lower (higher) property, franchise and other taxes	(1,060		)	(753		)													(1,813		)

Regulatory true-up adjustments										464									464
Higher (lower) usage										2,543									2,543
Impact of new rates										1,481									1,481

Higher (lower) margins													(2,634		)	(1,027		)	(3,661		)

Higher (lower) AFUDC**				(484		)				(913		)							(1,397		)

Higher (lower) interest income										(581		)							(581		)

Lower (higher) interest expense	1,126									(592		)							534

Lower (higher) income tax expense / effective tax rate	10,609			3,185						(948		)				(460		)	12,386

All other / rounding	(404		)	(200		)	396			433			(205		)	90			110
Fiscal 2017 GAAP earnings and operating results	$	129,326		$	68,446		$	40,377		$	46,935		$	1,509		$	(3,111	)	$	283,482

* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

Page 12.




NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2017
(Unaudited)

	Upstream			Midstream Businesses						Downstream Businesses

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

Fiscal 2016 GAAP earnings	$	(5.34	)	$	0.90		$	0.36		$	0.60		$	0.05		$	—		$	(3.43	)
Items impacting comparability:
Impairment of oil and gas producing properties	11.18																		11.18
Tax impact of impairment of oil and gas producing properties	(4.69		)																(4.69		)
Joint development agreement professional fees	0.09																		0.09
Tax impact of joint development agreement professional fees	(0.04		)																(0.04		)
Earnings per share impact of diluted shares	(0.01		)													(0.01		)	(0.02		)
Fiscal 2016 operating results	1.19			0.90			0.36			0.60			0.05			(0.01		)	3.09

Drivers of operating results
Higher (lower) crude oil prices	(0.08		)																(0.08		)
Higher (lower) natural gas prices	(0.09		)																(0.09		)
Higher (lower) natural gas production	0.31																		0.31
Higher (lower) crude oil production	(0.08		)																(0.08		)
Lower (higher) lease operating and transportation expenses	(0.09		)																(0.09		)
Lower (higher) depreciation / depletion	0.21			0.02			(0.01		)	(0.03		)							0.19

Higher (lower) transportation revenues				(0.08		)													(0.08		)
Higher (lower) gathering and processing revenues							0.14												0.14
Lower (higher) other operating expenses	0.03			(0.05		)	(0.02		)	(0.04		)				(0.01		)	(0.09		)
Lower (higher) property, franchise and other taxes	(0.01		)	(0.01		)													(0.02		)

Regulatory true-up adjustments										0.01									0.01
Higher (lower) usage										0.03									0.03
Impact of new rates										0.02									0.02

Higher (lower) margins													(0.03		)	(0.01		)	(0.04		)

Higher (lower) AFUDC**				(0.01		)				(0.01		)							(0.02		)

Higher (lower) interest income										(0.01		)							(0.01		)

Lower (higher) interest expense	0.01									(0.01		)							—

Lower (higher) income tax expense / effective tax rate	0.12			0.04						(0.01		)				(0.01		)	0.14

All other / rounding	(0.02		)	(0.01		)	—			—			—			—			(0.03		)
Fiscal 2017 GAAP earnings and operating results	$	1.50		$	0.80		$	0.47		$	0.55		$	0.02		$	(0.04	)	$	3.30

* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

Page 13.





NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)
	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
	(Unaudited)						(Unaudited)
SUMMARY OF OPERATIONS	2017			2016			2017			2016
Operating Revenues:
Utility and Energy Marketing Revenues	$	92,456		$	83,620		$	755,485		$	624,602
Exploration and Production and Other Revenues	144,049			155,734			617,666			611,766
Pipeline and Storage and Gathering Revenues	50,432			53,118			206,730			216,048
	286,937			292,472			1,579,881			1,452,416
Operating Expenses:
Purchased Gas	10,905			814			275,254			147,982
Operation and Maintenance:
Utility and Energy Marketing	40,497			41,038			199,293			192,512
Exploration and Production and Other	42,946			36,235			145,099			160,201
Pipeline and Storage and Gathering	29,184			24,477			98,200			88,801
Property, Franchise and Other Taxes	20,627			19,791			84,995			81,714
Depreciation, Depletion and Amortization	55,383			56,117			224,195			249,417
Impairment of Oil and Gas Producing Properties	—			32,756			—			948,307
	199,542			211,228			1,027,036			1,868,934

Operating Income (Loss)	87,395			81,244			552,845			(416,518		)

Other Income (Expense):
Interest Income	1,269			1,595			4,113			4,235
Other Income	2,316			2,647			7,043			9,820
Interest Expense on Long-Term Debt	(29,230		)	(29,083		)	(116,471		)	(117,347		)
Other Interest Expense	(686		)	241			(3,366		)	(3,697		)

Income (Loss) Before Income Taxes	61,064			56,644			444,164			(523,507		)

Income Tax Expense (Benefit)	15,487			19,091			160,682			(232,549		)

Net Income (Loss) Available for Common Stock	$	45,577		$	37,553		$	283,482		$	(290,958	)

Earnings (Loss) Per Common Share
Basic	$	0.53		$	0.44		$	3.32		$	(3.43	)
Diluted	$	0.53		$	0.44		$	3.30		$	(3.43	)

Weighted Average Common Shares:
Used in Basic Calculation	85,512,637			85,016,408			85,364,929			84,847,993
Used in Diluted Calculation	86,238,287			85,629,858			86,021,386			84,847,993

Page 14.



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

	September 30,			September 30,
(Thousands of Dollars)	2017			2016

ASSETS
Property, Plant and Equipment		$9,945,560			$9,539,581
Less - Accumulated Depreciation, Depletion and Amortization	5,271,486			5,085,099
Net Property, Plant and Equipment	4,674,074			4,454,482

Current Assets:
Cash and Temporary Cash Investments	555,530			129,972
Hedging Collateral Deposits	1,741			1,484
Receivables - Net	112,383			133,201
Unbilled Revenue	22,883			18,382
Gas Stored Underground	35,689			34,332
Materials and Supplies - at average cost	33,926			33,866
Unrecovered Purchased Gas Costs	4,623			2,440
Other Current Assets	51,505			59,354
Total Current Assets	818,280			413,031

Other Assets:
Recoverable Future Taxes	181,363			177,261
Unamortized Debt Expense	1,159			1,688
Other Regulatory Assets	174,433			320,750
Deferred Charges	30,047			20,978
Other Investments	125,265			110,664
Goodwill	5,476			5,476
Prepaid Post-Retirement Benefit Costs	56,370			17,649
Fair Value of Derivative Financial Instruments	36,111			113,804
Other	742			604
Total Other Assets	610,966			768,874
Total Assets		$6,103,320			$5,636,387

CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 85,543,125 Shares
and 85,118,886 Shares, Respectively		$85,543			$85,119
Paid in Capital	796,646			771,164
Earnings Reinvested in the Business	851,669			676,361
Accumulated Other Comprehensive Loss	(30,123		)	(5,640		)
Total Comprehensive Shareholders' Equity	1,703,735			1,527,004
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs	2,083,681			2,086,252
Total Capitalization	3,787,416			3,613,256

Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper	—			—
Current Portion of Long-Term Debt	300,000			—
Accounts Payable	126,443			108,056
Amounts Payable to Customers	—			19,537
Dividends Payable	35,500			34,473
Interest Payable on Long-Term Debt	35,031			34,900
Customer Advances	15,701			14,762
Customer Security Deposits	20,372			16,019
Other Accruals and Current Liabilities	111,889			74,430
Fair Value of Derivative Financial Instruments	1,103			1,560
Total Current and Accrued Liabilities	646,039			303,737

Deferred Credits:
Deferred Income Taxes	891,287			823,795
Taxes Refundable to Customers	95,739			93,318
Cost of Removal Regulatory Liability	204,630			193,424
Other Regulatory Liabilities	113,716			99,789
Pension and Other Post-Retirement Liabilities	149,079			277,113
Asset Retirement Obligations	106,395			112,330
Other Deferred Credits	109,019			119,625
Total Deferred Credits	1,669,865			1,719,394
Commitments and Contingencies	—			—
Total Capitalization and Liabilities		$6,103,320			$5,636,387

Page 15.





NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Twelve Months Ended
	September 30,
(Thousands of Dollars)	2017			2016

Operating Activities:
Net Income (Loss) Available for Common Stock	$	283,482		$	(290,958	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Impairment of Oil and Gas Producing Properties	—			948,307
Depreciation, Depletion and Amortization	224,195			249,417
Deferred Income Taxes	117,975			(246,794		)
Excess Tax Benefits Associated with Stock-Based Compensation Awards	—			(1,868		)
Stock-Based Compensation	12,262			5,755
Other	16,476			12,620
Change in:
Hedging Collateral Deposits	(257		)	9,640
Receivables and Unbilled Revenue	(3,380		)	(6,408		)
Gas Stored Underground and Materials and Supplies	(1,417		)	(3,532		)
Unrecovered Purchased Gas Costs	(2,183		)	(2,440		)
Other Current Assets	7,849			3,179
Accounts Payable	17,192			(40,664		)
Amounts Payable to Customers	(19,537		)	(37,241		)
Customer Advances	939			(1,474		)
Customer Security Deposits	4,353			(471		)
Other Accruals and Current Liabilities	27,004			3,453
Other Assets	(2,885		)	1,941
Other Liabilities	2,183			(13,483		)
Net Cash Provided by Operating Activities	$	684,251		$	588,979

Investing Activities:
Capital Expenditures	$	(450,335	)	$	(581,576	)
Net Proceeds from Sale of Oil and Gas Producing Properties	26,554			137,316
Other	1,216			(9,236		)
Net Cash Used in Investing Activities	$	(422,565	)	$	(453,496	)

Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	—		$	1,868
Dividends Paid on Common Stock	(139,063		)	(134,824		)
Net Proceeds From Issuance of Long-Term Debt	295,151			—
Net Proceeds From Issuance of Common Stock	7,784			13,849
Net Cash Provided by (Used in) Financing Activities	$	163,872		$	(119,107	)

Net Increase in Cash and Temporary Cash Investments	425,558			16,376
Cash and Temporary Cash Investments at Beginning of Period	129,972			113,596
Cash and Temporary Cash Investments at September 30	$	555,530		$	129,972

Page 16.





NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

UPSTREAM BUSINESS


	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
EXPLORATION AND PRODUCTION SEGMENT	2017			2016			Variance			2017			2016			Variance
Total Operating Revenues	$	142,952		$	154,530		$	(11,578	)	$	614,599		$	607,113		$	7,486

Operating Expenses:
Operation and Maintenance:
General and Administrative Expense	15,060			14,928			132			58,734			70,598			(11,864		)
Lease Operating and Transportation Expense	43,110			38,463			4,647			165,991			153,914			12,077
All Other Operation and Maintenance Expense	5,301			2,429			2,872			13,469			12,832			637
Property, Franchise and Other Taxes	4,178			3,553			625			15,426			13,794			1,632
Depreciation, Depletion and Amortization	27,212			27,377			(165		)	112,565			139,963			(27,398		)
Impairment of Oil and Gas Producing Properties	—			32,756			(32,756		)	—			948,307			(948,307		)
	94,861			119,506			(24,645		)	366,185			1,339,408			(973,223		)

Operating Income (Loss)	48,091			35,024			13,067			248,414			(732,295)			980,709

Other Income (Expense):
Interest Income	257			78			179			707			858			(151		)
Interest Expense	(13,432		)	(13,552		)	120			(53,702		)	(55,434		)	1,732

Income (Loss) Before Income Taxes	34,916			21,550			13,366			195,419			(786,871		)	982,290
Income Tax Expense (Benefit)	4,562			4,806			(244		)	66,093			(334,029		)	400,122
Net Income (Loss)	$	30,354		$	16,744		$	13,610		$	129,326		$	(452,842	)	$	582,168

Net Income (Loss) Per Share (Diluted)	$	0.35		$	0.20		$	0.15		$	1.50		$	(5.34	)	$	6.84

Page 17.




NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

MIDSTREAM BUSINESSES


	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
PIPELINE AND STORAGE SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	50,403		$	53,047		$	(2,644	)	$	206,615		$	215,674		$	(9,059	)
Intersegment Revenues	21,421			22,483			(1,062		)	87,810			90,755			(2,945		)
Total Operating Revenues	71,824			75,530			(3,706		)	294,425			306,429			(12,004		)

Operating Expenses:
Purchased Gas	90			(10		)	100			271			1,048			(777		)
Operation and Maintenance	25,618			22,256			3,362			86,135			79,402			6,733
Property, Franchise and Other Taxes	7,067			6,767			300			27,691			26,533			1,158
Depreciation, Depletion and Amortization	10,545			11,128			(583		)	41,196			43,273			(2,077		)
	43,320			40,141			3,179			155,293			150,256			5,037

Operating Income	28,504			35,389			(6,885		)	139,132			156,173			(17,041		)

Other Income (Expense):
Interest Income	483			242			241			1,467			770			697
Other Income	568			583			(15		)	2,511			3,235			(724		)
Interest Expense	(8,540		)	(8,309		)	(231		)	(33,717		)	(33,327		)	(390		)

Income Before Income Taxes	21,015			27,905			(6,890		)	109,393			126,851			(17,458		)
Income Tax Expense	7,224			11,089			(3,865		)	40,947			50,241			(9,294		)
Net Income	$	13,791		$	16,816		$	(3,025	)	$	68,446		$	76,610		$	(8,164	)

Net Income Per Share (Diluted)	$	0.16		$	0.20		$	(0.04	)	$	0.80		$	0.90		$	(0.10	)


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
GATHERING SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	29		$	71		$	(42	)	$	115		$	374		$	(259	)
Intersegment Revenues	24,937			23,471			1,466			107,566			89,073			18,493
Total Operating Revenues	24,966			23,542			1,424			107,681			89,447			18,234

Operating Expenses:
Operation and Maintenance	3,884			2,547			1,337			13,380			10,613			2,767
Property, Franchise and Other Taxes	(124		)	32			(156		)	(79		)	149			(228		)
Depreciation, Depletion and Amortization	4,154			3,876			278			16,162			15,282			880
	7,914			6,455			1,459			29,463			26,044			3,419

Operating Income	17,052			17,087			(35		)	78,218			63,403			14,815

Other Income (Expense):
Interest Income	353			109			244			994			297			697
Other Income	—			1			(1		)	1			5			(4		)
Interest Expense	(2,403		)	(2,091		)	(312		)	(9,142		)	(8,872		)	(270		)

Income Before Income Taxes	15,002			15,106			(104		)	70,071			54,833			15,238
Income Tax Expense	5,999			6,569			(570		)	29,694			24,334			5,360
Net Income	$	9,003		$	8,537		$	466		$	40,377		$	30,499		$	9,878

Net Income Per Share (Diluted)	$	0.10		$	0.10		$	—		$	0.47		$	0.36		$	0.11

Page 18.





NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

DOWNSTREAM BUSINESSES


	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
UTILITY SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	76,080		$	67,870		$	8,210		$	626,899		$	531,024		$	95,875
Intersegment Revenues	1,758			2,367			(609		)	13,072			13,123			(51		)
Total Operating Revenues	77,838			70,237			7,601			639,971			544,147			95,824

Operating Expenses:
Purchased Gas	17,321			10,392			6,929			252,802			166,155			86,647
Operation and Maintenance	39,448			40,294			(846		)	195,231			189,178			6,053
Property, Franchise and Other Taxes	9,223			9,151			72			40,860			40,131			729
Depreciation, Depletion and Amortization	13,080			13,107			(27		)	52,582			48,618			3,964
	79,072			72,944			6,128			541,475			444,082			97,393

Operating Income (Loss)	(1,234		)	(2,707		)	1,473			98,496			100,065			(1,569		)

Other Income (Expense):
Interest Income	633			1,415			(782		)	1,051			1,737			(686		)
Other Income	197			593			(396		)	774			2,342			(1,568		)
Interest Expense	(7,037		)	(5,898		)	(1,139		)	(28,492		)	(27,582		)	(910		)

Income (Loss) Before Income Taxes	(7,441		)	(6,597		)	(844		)	71,829			76,562			(4,733		)
Income Tax Expense (Benefit)	(3,273		)	(4,813		)	1,540			24,894			25,602			(708		)
Net Income (Loss)	$	(4,168	)	$	(1,784	)	$	(2,384	)	$	46,935		$	50,960		$	(4,025	)

Net Income (Loss) Per Share (Diluted)	$	(0.05	)	$	(0.02	)	$	(0.03	)	$	0.55		$	0.60		$	(0.05	)


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
ENERGY MARKETING SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	16,376		$	15,750		$	626		$	128,586		$	93,578		$	35,008
Intersegment Revenues	194			30			164			794			884			(90		)
Total Operating Revenues	16,570			15,780			790			129,380			94,462			34,918

Operating Expenses:
Purchased Gas	15,982			14,111			1,871			120,317			81,347			38,970
Operation and Maintenance	1,717			1,575			142			6,978			6,447			531
Property, Franchise and Other Taxes	5			7			(2		)	5			13			(8		)
Depreciation, Depletion and Amortization	69			70			(1		)	279			278			1
	17,773			15,763			2,010			127,579			88,085			39,494

Operating Income (Loss)	(1,203		)	17			(1,220		)	1,801			6,377			(4,576		)

Other Income (Expense):
Interest Income	153			136			17			571			422			149
Other Income	19			15			4			75			58			17
Interest Expense	(10		)	(13		)	3			(47		)	(49		)	2

Income (Loss) Before Income Taxes	(1,041		)	155			(1,196		)	2,400			6,808			(4,408		)
Income Tax Expense (Benefit)	(427		)	(76		)	(351		)	891			2,460			(1,569		)
Net Income (Loss)	$	(614	)	$	231		$	(845	)	$	1,509		$	4,348		$	(2,839	)

Net Income (Loss) Per Share (Diluted)	$	(0.01	)	$	—		$	(0.01	)	$	0.02		$	0.05		$	(0.03	)

Page 19.



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
ALL OTHER	2017			2016			Variance			2017			2016			Variance
Total Operating Revenues	$	862		$	978		$	(116	)	$	2,173		$	3,753		$	(1,580	)
Operating Expenses:
Operation and Maintenance	374			281			93			1,718			776			942
Property, Franchise and Other Taxes	151			145			6			596			593			3
Depreciation, Depletion and Amortization	136			373			(237		)	661			1,260			(599		)
	661			799			(138		)	2,975			2,629			346

Operating Income (Loss)	201			179			22			(802		)	1,124			(1,926		)
Other Income (Expense):
Interest Income	66			35			31			213			117			96
Other Income	—			98			(98		)	—			98			(98		)

Income (Loss) Before Income Taxes	267			312			(45		)	(589		)	1,339			(1,928		)
Income Tax Expense (Benefit)	111			130			(19		)	(247		)	561			(808		)
Net Income (Loss)	$	156		$	182		$	(26	)	$	(342	)	$	778		$	(1,120	)

Net Income (Loss) Per Share (Diluted)	$	0.01		$	—		$	0.01		$	(0.01	)	$	0.01		$	(0.02	)


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
CORPORATE	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	235		$	226		$	9		$	894		$	900		$	(6	)
Intersegment Revenues	895			1,091			(196		)	3,825			3,991			(166		)
Total Operating Revenues	1,130			1,317			(187		)	4,719			4,891			(172		)
Operating Expenses:
Operation and Maintenance	4,832			4,740			92			15,887			15,012			875
Property, Franchise and Other Taxes	127			136			(9		)	496			501			(5		)
Depreciation, Depletion and Amortization	187			186			1			750			743			7
	5,146			5,062			84			17,133			16,256			877

Operating Loss	(4,016		)	(3,745		)	(271		)	(12,414		)	(11,365		)	(1,049		)

Other Income (Expense):
Interest Income	31,318			30,389			929			125,003			123,156			1,847
Other Income	1,532			1,357			175			3,682			4,082			(400		)
Interest Expense on Long-Term Debt	(29,230		)	(29,083		)	(147		)	(116,471		)	(117,347		)	876
Other Interest Expense	(1,258		)	(705		)	(553		)	(4,159		)	(1,555		)	(2,604		)

Loss Before Income Taxes	(1,654		)	(1,787		)	133			(4,359		)	(3,029		)	(1,330		)
Income Tax Expense (Benefit)	1,291			1,386			(95		)	(1,590		)	(1,718		)	128
Net Loss	$	(2,945	)	$	(3,173	)	$	228		$	(2,769	)	$	(1,311	)	$	(1,458	)

Net Loss Per Share (Diluted)	$	(0.03	)	$	(0.04	)	$	0.01		$	(0.03	)	$	(0.01	)	$	(0.02	)


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
INTERSEGMENT ELIMINATIONS	2017			2016			Variance			2017			2016			Variance
Intersegment Revenues	$	(49,205	)	$	(49,442	)	$	237		$	(213,067	)	$	(197,826	)	$	(15,241	)
Operating Expenses:
Purchased Gas	(22,488		)	(23,679		)	1,191			(98,136		)	(100,568		)	2,432
Operation and Maintenance	(26,717		)	(25,763		)	(954		)	(114,931		)	(97,258		)	(17,673		)
	(49,205		)	(49,442		)	237			(213,067		)	(197,826		)	(15,241		)

Operating Income	—			—			—			—			—			—

Other Income (Expense):
Interest Income	(31,994		)	(30,809		)	(1,185		)	(125,893		)	(123,122		)	(2,771		)
Interest Expense	31,994			30,809			1,185			125,893			123,122			2,771
Net Income	$	—		$	—		$	—		$	—		$	—		$	—

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

Page 20.





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
	2017			2016			(Decrease)			2017			2016			(Decrease)

Capital Expenditures:
Exploration and Production	$	84,512	⁽¹⁾	$	41,181	⁽²⁾	$	43,331		$	253,057	⁽¹⁾⁽²⁾	$	256,104	⁽²⁾⁽³⁾	$	(3,047	)
Pipeline and Storage	41,808		⁽¹⁾	38,230		⁽²⁾	3,578			95,336		⁽¹⁾⁽²⁾	114,250		⁽²⁾⁽³⁾	(18,914		)
Gathering	8,940		⁽¹⁾	10,578		⁽²⁾	(1,638		)	32,645		⁽¹⁾⁽²⁾	54,293		⁽²⁾⁽³⁾	(21,648		)
Utility	24,456		⁽¹⁾	25,719		⁽²⁾	(1,263		)	80,867		⁽¹⁾⁽²⁾	98,007		⁽²⁾⁽³⁾	(17,140		)
Energy Marketing	22			6			16			36			34			2
Total Reportable Segments	159,738			115,714			44,024			461,941			522,688			(60,747		)
All Other	—			—			—			39			37			2
Corporate	49			136			(87		)	137			326			(189		)
Eliminations	482			—			482			—			—			—
Total Capital Expenditures	$	160,269		$	115,850		$	44,419		$	462,117		$	523,051		$	(60,934	)

⁽¹⁾

Capital expenditures for the quarter and year ended September 30, 2017, include accounts payable and accrued liabilities related to 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 have been excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represent non-cash investing activities at that date.

⁽²⁾

Capital expenditures for the year ended September 30, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2016 and paid during the year ended September 30, 2017. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2017.

⁽³⁾

Capital expenditures for the year ended September 30, 2016, exclude capital expenditures of $46.2 million, $33.9 million, $22.4 million and $16.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2015 and paid during the year ended September 30, 2016. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2015, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2016.




DEGREE DAYS

				Percent Colder
				(Warmer) Than:
Three Months Ended September 30	Normal	2017	2016	Normal ⁽¹⁾	Last Year ⁽¹⁾

Buffalo, NY	162	109	44	(32.7)	147.7
Erie, PA	124	97	23	(21.8)	321.7

Twelve Months Ended September 30

Buffalo, NY	6,617	5,708	5,611	(13.7)	1.7
Erie, PA	6,147	5,179	5,182	(15.7)	(0.1	)


⁽¹⁾	Percents compare actual 2017 degree days to normal degree days and actual 2017 degree days to actual 2016 degree days.

Page 21.





NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION


	Three Months Ended							Twelve Months Ended
	September 30,							September 30,
					Increase							Increase
	2017		2016		(Decrease)			2017		2016		(Decrease)

Gas Production/Prices:
Production (MMcf)
Appalachia	35,576		34,711		865			154,093		140,457		13,636
West Coast	749		779		(30		)	2,995		3,090		(95		)
Total Production	36,325		35,490		835			157,088		143,547		13,541

Average Prices (Per Mcf)
Appalachia	$	2.42	$	2.24	$	0.18		$	2.52	$	1.94	$	0.58
West Coast	3.77		3.62		0.15			4.00		3.25		0.75
Weighted Average	2.44		2.27		0.17			2.55		1.97		0.58
Weighted Average after Hedging	2.91		3.09		(0.18		)	2.95		3.02		(0.07		)

Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia	1		12		(11		)	4		28		(24		)
West Coast	674		712		(38		)	2,736		2,895		(159		)
Total Production	675		724		(49		)	2,740		2,923		(183		)

Average Prices (Per Barrel)
Appalachia	$	45.71	$	63.46	$	(17.75	)	$	48.27	$	52.15	$	(3.88	)
West Coast	47.44		39.06		8.38			46.14		35.26		10.88
Weighted Average	47.44		39.46		7.98			46.18		35.42		10.76
Weighted Average after Hedging	54.77		60.01		(5.24		)	53.87		57.91		(4.04		)

Total Production (Mmcfe)	40,375		39,834		541			173,528		161,085		12,443

Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe ⁽¹⁾	$	0.37	$	0.37	$	—		$	0.34	$	0.44	$	(0.10	)
Lease Operating and Transportation Expense per Mcfe ⁽¹⁾⁽²⁾	$	1.07	$	0.97	$	0.10		$	0.96	$	0.96	$	—
Depreciation, Depletion & Amortization per Mcfe ⁽¹⁾	$	0.67	$	0.69	$	(0.02	)	$	0.65	$	0.87	$	(0.22	)


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


⁽²⁾	Amounts include transportation expense of $0.54 and $0.52 per Mcfe for the three months ended September 30, 2017 and September 30, 2016, respectively. Amounts include transportation expense of $0.54 and $0.52 per Mcfe for the twelve months ended September 30, 2017 and September 30, 2016, respectively.

Page 22.



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for Fiscal 2018	Volume			Average Hedge Price
Oil Swaps
Brent	24,000	BBL	$	91.00 / BBL
NYMEX	1,731,000	BBL	$	53.79 / BBL
Total	1,755,000	BBL	$	54.30 / BBL

Gas Swaps
NYMEX	42,570,000	MMBTU	$	3.34 / MMBTU
DOM	180,000	MMBTU	$	3.82 / MMBTU
DAWN	8,400,000	MMBTU	$	3.08 / MMBTU
Fixed Price Physical Sales	47,992,454	MMBTU	$	2.43 / MMBTU
Total	99,142,454	MMBTU	$	2.88 / MMBTU

Hedging Summary for Fiscal 2019	Volume			Average Hedge Price
Oil Swaps
NYMEX	1,068,000	BBL	$	53.42 / BBL

Gas Swaps
NYMEX	27,060,000	MMBTU	$	3.17 / MMBTU
DAWN	7,200,000	MMBTU	$	3.00 / MMBTU
Fixed Price Physical Sales	34,438,090	MMBTU	$	2.49 / MMBTU
Total	68,698,090	MMBTU	$	2.81 / MMBTU

Hedging Summary for Fiscal 2020	Volume			Average Hedge Price
Oil Swaps
NYMEX	324,000	BBL	$	50.52 / BBL

Gas Swaps
NYMEX	16,880,000	MMBTU	$	3.07 / MMBTU
DAWN	7,200,000	MMBTU	$	3.00 / MMBTU
Fixed Price Physical Sales	38,428,255	MMBTU	$	2.28 / MMBTU
Total	62,508,255	MMBTU	$	2.58 / MMBTU

Hedging Summary for Fiscal 2021	Volume			Average Hedge Price
Oil Swaps
NYMEX	156,000	BBL	$	51.00 / BBL

Gas Swaps
NYMEX	4,840,000	MMBTU	$	3.01 / MMBTU
DAWN	600,000	MMBTU	$	3.00 / MMBTU
Fixed Price Physical Sales	41,260,451	MMBTU	$	2.21 / MMBTU
Total	46,700,451	MMBTU	$	2.31 / MMBTU

Hedging Summary for Fiscal 2022	Volume			Average Hedge Price
Oil Swaps
NYMEX	156,000	BBL	$	51.00 / BBL

Fixed Price Physical Sales	39,844,042	MMBTU	$	2.23 / MMBTU

Hedging Summary for Fiscal 2023	Volume			Average Hedge Price

Fixed Price Physical Sales	35,769,734	MMBTU	$	2.25 / MMBTU

Hedging Summary for Fiscal 2024	Volume			Average Hedge Price

Fixed Price Physical Sales	20,111,036	MMBTU	$	2.24 / 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

EXPLORATION AND PRODUCTION INFORMATION

Reserve Quantity Information
(Unaudited)


	Gas MMcf
	U.S.
	Appalachian		West Coast		Total
	Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2016	1,631,451		43,124		1,674,575
Extensions and Discoveries	386,649		8		386,657
Revisions of Previous Estimates	84,480		6,369		90,849
Production	(154,093	)	(2,995	)	(157,088	)
Sales of Minerals in Place	(21,873	)	—		(21,873	)
September 30, 2017	1,926,614		46,506		1,973,120

Proved Developed Reserves:

September 30, 2016	1,089,492		43,124		1,132,616
September 30, 2017	1,316,596		46,506		1,363,102


	Oil Mbbl
	U.S.
	Appalachian		West Coast		Total
	Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2016	73		28,936		29,009
Extensions and Discoveries	—		674		674
Revisions of Previous Estimates	(12	)	3,305		3,293
Production	(4	)	(2,736	)	(2,740	)
Sales of Minerals in Place	(29	)	—		(29	)
September 30, 2017	28		30,179		30,207

Proved Developed Reserves:

September 30, 2016	73		28,698		28,771
September 30, 2017	28		29,771		29,799

Page 24.




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				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Firm Transportation - Affiliated	15,404	13,468	1,936		107,987	100,637	7,350
Firm Transportation - Non-Affiliated	176,380	169,247	7,133		671,395	640,238	31,157
Interruptible Transportation	727	5,079	(4,352	)	5,805	23,548	(17,743	)
	192,511	187,794	4,717		785,187	764,423	20,764

Gathering Volume - (MMcf)
	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Gathered Volume - Affiliated	44,915	42,600	2,315		194,921	161,955	32,966


Utility Throughput - (MMcf)
	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Retail Sales:
Residential Sales	3,576	3,143	433		52,394	49,971	2,423
Commercial Sales	555	477	78		7,927	7,247	680
Industrial Sales	50	11	39		333	244	89
	4,181	3,631	550		60,654	57,462	3,192
Off-System Sales	7	—	7		1,301	1,243	58
Transportation	10,587	11,078	(491	)	71,040	70,847	193
	14,775	14,709	66		132,995	129,552	3,443

Energy Marketing Volume
	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Natural Gas (MMcf)	5,932	6,048	(116	)	38,901	39,849	(948	)

Page 25.

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

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

Management defines operating results as reported GAAP earnings before items impacting comparability. The table at page 2 of this report reconciles National Fuel's reported GAAP earnings to operating results for the three and twelve months ended September 30, 2017 and 2016.

Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, impairments, and items impacting comparability.

The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and twelve months ended September 30, 2017 and 2016:




	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
(in thousands)
Reported GAAP Earnings	$	45,577		$	37,553		$	283,482		$	(290,958	)
Depreciation, Depletion and Amortization	55,383			56,117			224,195			249,417
Interest and Other Income	(3,585		)	(4,242		)	(11,156		)	(14,055		)
Interest Expense	29,916			28,842			119,837			121,044
Income Taxes	15,487			19,091			160,682			(232,549		)
Impairment of Oil and Gas Producing Properties	—			32,756			—			948,307
Joint Development Agreement Professional Fees	—			—			—			7,855
Adjusted EBITDA	$	142,778		$	170,117		$	777,040		$	789,061

Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA	$	39,049		$	46,517		$	180,328		$	199,446
Gathering Adjusted EBITDA	21,206			20,963			94,380			78,685
Total Midstream Businesses Adjusted EBITDA	60,255			67,480			274,708			278,131
Exploration and Production Adjusted EBITDA	75,303			95,157			360,979			363,830
Utility Adjusted EBITDA	11,846			10,400			151,078			148,683
Energy Marketing Adjusted EBITDA	(1,134		)	87			2,080			6,655
Corporate and All Other Adjusted EBITDA	(3,492		)	(3,007		)	(11,805		)	(8,238		)
Total Adjusted EBITDA	$	142,778		$	170,117		$	777,040		$	789,061

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NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

SEGMENT ADJUSTED EBITDA



	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(in thousands)	2017			2016			2017			2016
Exploration and Production Segment
Reported GAAP Earnings	$	30,354		$	16,744		$	129,326		$	(452,842	)
Depreciation, Depletion and Amortization	27,212			27,377			112,565			139,963
Interest and Other Income	(257		)	(78		)	(707		)	(858		)
Interest Expense	13,432			13,552			53,702			55,434
Income Taxes	4,562			4,806			66,093			(334,029		)
Impairment of Oil and Gas Producing Properties	—			32,756			—			948,307
Joint Development Agreement Professional Fees	—			—			—			7,855
Adjusted EBITDA	$	75,303		$	95,157		$	360,979		$	363,830

Pipeline and Storage Segment
Reported GAAP Earnings	$	13,791		$	16,816		$	68,446		$	76,610
Depreciation, Depletion and Amortization	10,545			11,128			41,196			43,273
Interest and Other Income	(1,051		)	(825		)	(3,978		)	(4,005		)
Interest Expense	8,540			8,309			33,717			33,327
Income Taxes	7,224			11,089			40,947			50,241
Adjusted EBITDA	$	39,049		$	46,517		$	180,328		$	199,446

Gathering Segment
Reported GAAP Earnings	$	9,003		$	8,537		$	40,377		$	30,499
Depreciation, Depletion and Amortization	4,154			3,876			16,162			15,282
Interest and Other Income	(353		)	(110		)	(995		)	(302		)
Interest Expense	2,403			2,091			9,142			8,872
Income Taxes	5,999			6,569			29,694			24,334
Adjusted EBITDA	$	21,206		$	20,963		$	94,380		$	78,685

Utility Segment
Reported GAAP Earnings	$	(4,168	)	$	(1,784	)	$	46,935		$	50,960
Depreciation, Depletion and Amortization	13,080			13,107			52,582			48,618
Interest and Other Income	(830		)	(2,008		)	(1,825		)	(4,079		)
Interest Expense	7,037			5,898			28,492			27,582
Income Taxes	(3,273		)	(4,813		)	24,894			25,602
Adjusted EBITDA	$	11,846		$	10,400		$	151,078		$	148,683

Energy Marketing Segment
Reported GAAP Earnings	$	(614	)	$	231		$	1,509		$	4,348
Depreciation, Depletion and Amortization	69			70			279			278
Interest and Other Income	(172		)	(151		)	(646		)	(480		)
Interest Expense	10			13			47			49
Income Taxes	(427		)	(76		)	891			2,460
Adjusted EBITDA	$	(1,134	)	$	87		$	2,080		$	6,655

Corporate and All Other
Reported GAAP Earnings	$	(2,789	)	$	(2,991	)	$	(3,111	)	$	(533	)
Depreciation, Depletion and Amortization	323			559			1,411			2,003
Interest and Other Income	(922		)	(1,070		)	(3,005		)	(4,331		)
Interest Expense	(1,506		)	(1,021		)	(5,263		)	(4,220		)
Income Taxes	1,402			1,516			(1,837		)	(1,157		)
Adjusted EBITDA	$	(3,492	)	$	(3,007	)	$	(11,805	)	$	(8,238	)

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NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES


Quarter Ended September 30 (unaudited)	2017		2016

Operating Revenues	$	286,937,000	$	292,472,000

Net Income Available for Common Stock	$	45,577,000	$	37,553,000

Earnings Per Common Share
Basic	$	0.53	$	0.44
Diluted	$	0.53	$	0.44

Weighted Average Common Shares:
Used in Basic Calculation	85,512,637		85,016,408
Used in Diluted Calculation	86,238,287		85,629,858

Twelve Months Ended September 30 (unaudited)

Operating Revenues	$	1,579,881,000	$	1,452,416,000

Net Income (Loss) Available for Common Stock	$	283,482,000	$	(290,958,000	)

Earnings (Loss) Per Common Share
Basic	$	3.32	$	(3.43	)
Diluted	$	3.30	$	(3.43	)

Weighted Average Common Shares:
Used in Basic Calculation	85,364,929		84,847,993
Used in Diluted Calculation	86,021,386		84,847,993

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