Commentary on this conference call may contain forward-looking statements within the meaning of the federal securities laws.  National Fuel Gas Company (the “Company”) is providing this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company.

Forward-looking statements include, without limitation, statements regarding future prospects, plans, objectives, goals, projections, estimates of oil and gas quantities, strategies, future events or performance and underlying assumptions, capital structure, anticipated capital expenditures, completion of construction projects, projections for pension and other post-retirement benefit obligations, impacts of the adoption of new accounting rules, and possible outcomes of litigation or regulatory proceedings, as well as 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.  All forward-looking statements, whether written or oral and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements. 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 are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.

In addition to other factors, the following are important factors that, in the view of the Company, could cause actual results to differ materially from those discussed in the forward-looking statements:

  1. 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;
  2. 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;
  3. 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;
  4. Changes in the price of natural gas or oil;
  5. Impairments under the SEC’s full cost ceiling test for natural gas and oil reserves;
  6. 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;
  7. 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;
  8. Increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; 
  9. Changes in price differentials between similar quantities of natural gas or oil 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;
  10. Other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date;
  11. The cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company;
  12. Uncertainty of oil and gas reserve estimates;
  13. Significant differences between the Company’s projected and actual production levels for natural gas or oil;
  14. Changes in demographic patterns and weather conditions;
  15. Changes in the availability, price or accounting treatment of derivative financial instruments;
  16. 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;
  17. 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;
  18. The creditworthiness or performance of the Company’s key suppliers, customers and counterparties;
  19. The impact of information technology, cybersecurity or data security breaches;
  20. Economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war;
  21. Significant differences between the Company’s projected and actual capital expenditures and operating expenses; or
  22. Increasing costs of insurance, changes in coverage and the ability to obtain insurance.

Forward-looking statements include estimates of oil and gas quantities. Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible under existing economic conditions, operating methods and government regulations. Other estimates of oil and gas quantities, including estimates of probable reserves, possible reserves, and resource potential, are by their nature more speculative than estimates of proved reserves. Accordingly, estimates other than proved reserves are subject to substantially greater risk of being actually realized.

Any forward-looking statements contained in this conference call speak only as of the date of this call. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this conference call.  Investors are urged to consider closely the disclosure in our Form 10-K and Forms 10-Q, available at www.investor.nationalfuelgas.com. You can also obtain these forms on the SEC’s website at www.sec.gov.

By clicking “Accept” below, you acknowledge the above.



press-release-details
Press release details

National Fuel Reports Second Quarter Earnings

05/04/2006

WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--May 4, 2006--National Fuel Gas Company ("National Fuel" or the "Company") (NYSE:NFG) today announced consolidated earnings for the quarter ended March 31, 2006, of $78.6 million or $0.91 per share, an increase of $7.9 million or $0.08 per share from the second quarter of the previous fiscal year (note: all references to earnings per share are to diluted earnings per share and all amounts are stated in U.S. dollars). All earnings from the second quarter of 2006 were from continuing operations and there were no non-recurring items.



                                  Three Months         Six Months
                                 Ended March 31,     Ended March 31,
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
(in thousands except per share
 amounts)
Reported GAAP earnings         $ 78,594  $ 70,683  $136,013  $121,120
Less:  Discontinued operations
 of United Energy(1)                       (6,702)            (12,310)
                               ---------  -------- ---------  --------
Income from continuing
 operations                      78,594    63,981   136,013   108,810
Less:  Non-recurring base gas
 sale(2)                                   (2,636)             (2,636)
                               ---------  -------- ---------  --------
Recurring earnings             $ 78,594  $ 61,345  $136,013  $106,174
                                ========  ========  ========  ========


Reported GAAP earnings per
 share                         $   0.91  $   0.83  $   1.58  $   1.43
Less:  Discontinued operations
 of United Energy(1)                        (0.08)              (0.15)
                               ---------  -------- ---------  --------
Income from continuing
 operations                        0.91      0.75      1.58      1.28
Less:  Non-recurring base gas
 sale(2)                                    (0.03)              (0.03)
                               ---------  -------- ---------  --------
Recurring earnings per share   $   0.91  $   0.72  $   1.58  $   1.25
                                ========  ========  ========  ========

(1) National Fuel presents the earnings of United Energy, a.s.
    ("United Energy"), its former operations in the Czech Republic, as
    "Income from Discontinued Operations."

(2) See discussion of non-recurring items later within this release.


As a result of the July, 2005, sale of United Energy, the Company's former operations in the Czech Republic, the Company has presented its earnings in terms of earnings from continuing operations and earnings from discontinued operations. Earnings from discontinued operations for the quarter ended March 31, 2005, were $6.7 million or $0.08 per share. For fiscal 2005, recurring earnings from discontinued operations totaled $10.2 million.

Earnings from continuing operations for the quarter ended March 31, 2006, increased $14.6 million or $0.16 per share from the prior year's second quarter earnings from continuing operations of $64.0 million or $0.75 per share. Earnings from continuing operations before non-recurring items for the quarter ended March 31, 2005, exclude a $2.6 million gain (after tax) from the sale of base gas from National Fuel Gas Supply Corporation's ("Supply Corporation") jointly-owned Ellisburg Storage Field. Excluding that item, earnings from continuing operations for the current quarter increased $17.25 million or $0.19 per share from the prior year's second quarter earnings from continuing operations of $61.35 million or $0.72 per share. See further discussion of non-recurring items later within this document.

Philip C. Ackerman, Chairman and Chief Executive Officer of National Fuel Gas Company stated: "We are pleased with this quarter. Solid performance across all segments has put us on track to achieve record earnings this fiscal year.* Recurring earnings for the quarter and six-months ended March 31, 2006, increased over the same periods in the prior fiscal year, mainly due to higher oil and gas prices realized in the Exploration and Production segment. While commodity prices were higher versus the prior year, natural gas prices declined significantly from the prices that were used to develop the Company's earnings guidance of $0.93 to $1.03 per share for the quarter. Those lower prices tended to dampen our earnings in the Exploration and Production segment in line with the pricing sensitivity table provided last quarter. The warmer than normal weather and customer conservation also caused earnings in the Utility segment for the quarter to be below forecast.

DISCUSSION OF SECOND QUARTER EARNINGS

CONTINUING OPERATIONS BEFORE NON-RECURRING ITEMS

Please note that the following discussion of earnings from continuing operations excludes certain non-recurring profit and loss items in an effort to provide a clearer picture of actual operating results for the period. A summary of those non-recurring items follows the Discussion of Second Quarter Earnings and Discussion of Six Month Earnings and Earnings Guidance. A reconciliation of reported earnings to the earnings discussed below is provided later within this report.

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation ("Distribution"), which sells or transports natural gas to approximately 731,000 customers located in western New York and northwestern Pennsylvania. The Utility segment's earnings of $28.7 million for the quarter ended March 31, 2006, were $0.2 million lower than the earnings in the prior year's second quarter.

In Distribution's New York Division, earnings of $23.72 million for the quarter increased $1.28 million from $22.44 million in the second quarter of 2005. The impact of the New York rate settlement implemented in August 2005 more than offset lower average usage per customer and higher bad debt, pension, and interest expenses.

In Distribution's Pennsylvania Division, earnings for the quarter of $4.93 million were down $1.51 million from the $6.44 million reported in the prior year's second quarter. This decrease is mainly the result of weather that was 13.9 percent warmer than normal and 17.2 percent warmer than the prior year. Lower average usage per customer and higher bad debt expense combined with the warmer weather to more than offset the benefit of the $12.0 million annual base rate increase implemented in April 2005.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by Supply Corporation and Empire State Pipeline ("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 $16.9 million for the quarter ended March 31, 2006, were up $1.1 million when compared with the same period in the prior fiscal year. The impact of higher efficiency gas revenues and lower project development costs associated with the Empire Connector project were the primary contributors to the increase. These items more than offset an increase in pension expense for the quarter.

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, in the Gulf Coast region of Texas, Louisiana and Alabama, and in the western provinces of Canada.

The Exploration and Production segment's earnings for the second quarter of fiscal 2006 of $25.8 million were up $14.6 million from the prior year's quarter. The increase was mainly due to the positive impact of higher crude oil and natural gas commodity prices, which was partially offset by anticipated slightly lower production volumes and higher depletion and lease operating expenses. In addition Seneca recognized a $5.1 million benefit to earnings that resulted from an adjustment to a deferred income tax balance. Under generally accepted accounting principles, a company may recognize the benefit of certain expected future income tax deductions as a deferred tax asset only if it anticipates sufficient future taxable income to utilize those deductions. As a result of the rise in commodity prices and higher than anticipated production from certain properties, Seneca increased its forecast of future taxable income in the Canadian division and, as a result, recorded a deferred tax asset for certain costs related to capital expenditures that it now expects to deduct on future income tax returns.

Higher commodity prices (after hedging) more than offset the impact of a 7 percent decline in production. Production of 12.1 billion cubic feet equivalent ("Bcfe") was in line with Seneca's expected production estimate for the quarter of 11 to 13 Bcfe. For the quarter ended March 31, 2006, the weighted average natural gas price (after hedging) was $7.39/thousand cubic feet ("Mcf"), an increase of $1.42/Mcf from the prior year's quarter, and the weighted average oil price (after hedging) was $40.30/barrel ("Bbl"), an increase of $14.20/Bbl from the prior year's quarter. Seneca remains on track to meet its production estimate of 46 to 51 Bcfe for the fiscal year.*

Seneca's higher production revenues were partially offset by higher lease operating expenses of approximately $2.1 million, which, on a per unit basis, increased $0.25/thousand cubic feet equivalent ("Mcfe") to $1.21/Mcfe. The increase in lease operating expense was mainly the result of higher steaming costs associated with heavy crude oil production in Seneca's California Midway-Sunset and North Lost Hills fields and a general increase in the cost of field services. The higher steaming costs were due to an increase in the price for gas purchased and used in the steaming operations that averaged $7.72/Mcfe this quarter versus $5.62/Mcfe in the prior year's quarter, and an increase in the steaming activity at the North Lost Hills field. Seneca's scrubber facility in the Midway-Sunset field began full operations in April 2006 and is now burning waste gas rather than gas purchased in the field to generate the steam for its thermal recovery project. The current waste gas burn rate is 1,800 Mcfe/day. Savings from the scrubber operation have been incorporated into future earnings guidance.*

Seneca drilled 48 wells with a 100 percent success rate during the second quarter. Drilling activity in the third quarter is expected to increase in both Seneca's East and Canadian divisions as field conditions for drilling improve.*

Offshore, Seneca commenced production on its West Cameron 213 #B-1 well. This well initiated production on April 21, 2006, and is expected to produce 4 Mmcf/day.* Seneca's working interest in this well is 100%.

On March 31, 2006, Seneca completed a $5.2 million acquisition in California of 640 acres. The property includes 2.5 Bcfe of gross reserves and three producing wells adjacent to its South Lost Hills field. The three wells are producing a total of 105 barrels of oil equivalent per day. Seneca plans to drill three additional wells on this property starting this month.* The acquired production is already connected to Seneca's existing facilities.

Energy Marketing

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

The Energy Marketing segment's net income for the quarter of $3.9 million increased $1.3 million from $2.6 million in the second quarter last year. This increase resulted from a number of factors, most notably a 14% increase in sales volumes and the marketing flexibility that NFR had from its stored gas. NFR's contracts for significant storage and transportation volumes have provided operational flexibility resulting in increased sales throughput and earnings.

Timber Segment

The Timber segment operations are carried out by Highland Forest Resources, Inc. ("Highland"), and Seneca's Northeast Division. This segment markets timber from its New York and Pennsylvania land holdings, owns two sawmill/dry kiln operations in northwestern Pennsylvania, and processes timber consisting primarily of high quality hardwoods.

The Timber segment's second quarter earnings of $2.2 million were $0.7 million lower than the prior year's second quarter. Sales of the highest margin cherry veneer logs were down approximately 231,000 board feet or 22 percent from the prior year's second quarter. Unseasonably warm weather in January and March hampered harvesting efforts during the quarter. Despite the lower harvested volumes, log and lumber sales volumes increased due to the liquidation of higher log volumes in inventory at the beginning of the quarter versus the prior year's quarter, and Highland processed higher volumes of purchased lumber through its expanded kiln capacity. The increase in log sales consisted primarily of low margin saw logs.

Corporate and All Other

Other direct wholly-owned subsidiaries of the Company include Horizon Energy Development, Inc., a corporation formerly engaged in the development of international power projects, Horizon LFG, Inc., a corporation engaged through subsidiaries in the purchase, sale and transportation of landfill gas, and Horizon Power, Inc., a corporation that develops or operates mid-range independent power production facilities and landfill gas electric generation facilities.

Earnings in this category of $1.1 million improved from a loss of $0.1 million mainly due to an increase in interest income resulting from the investment of the proceeds from the sale of United Energy and lower expenses for project development costs in the former international segment.

DISCUSSION OF SIX MONTH EARNINGS

Consolidated earnings for the six months ended March 31, 2006, were $136.0 million or $1.58 per share, an increase of $14.9 million from the prior year's earnings of $121.1 million. Earnings for the six months ended March 31, 2005, include earnings from discontinued operations from United Energy, the Company's former operations in the Czech Republic, of $12.3 million or $0.15 per share. There was no income from discontinued operations for the six months ended March 31, 2006.

Earnings from continuing operations for the six months ended March 31, 2006, were $136.0 million or $1.58 per share, an increase of $27.2 million from the prior year's six months earnings from continuing operations of $108.8 million or $1.28 per share. Excluding non-recurring items for the six months ended March 31, 2005, (there were no non-recurring items for the six months ended March 31, 2006), earnings from continuing operations for the six months ended March 31, 2006, increased $29.8 million to $136.0 million or $1.58 per share, from the prior year's earnings before non-recurring items of $106.2 million or $1.25 per share.

CONTINUING OPERATIONS BEFORE NON-RECURRING ITEMS

Please note that the following discussion of earnings from continuing operations also excludes certain non-recurring profit and loss items.

In the Utility segment, the principal contributor to the $3.5 million increase in segment earnings was a $2.6 million (after tax) out-of-period adjustment to correct Distribution's calculation of the symmetrical sharing component included in the New York gas adjustment rate. The remaining difference was due to the positive impact of the rate settlements in New York and Pennsylvania which more than offset the impact in Pennsylvania of warmer weather, lower average usage per customer and higher bad debt expense in New York and Pennsylvania and higher interest expense in New York.

In the Pipeline and Storage segment, earnings were up $4.6 million due to higher transportation and efficiency gas revenues, as well as lower project development costs associated with the Empire Connector project, which more than offset higher pension expense.

Earnings in the Exploration and Production segment increased $18.1 million mainly due to higher weighted average natural gas and oil prices after hedging, partially offset by lower production volumes and higher operating expenses.

The Energy Marketing segment's earnings were up $1.5 million primarily due to an increase in sales volumes.

In the Timber segment, earnings increased $0.1 million. The impact of overall higher sales volumes was mostly offset by lower volumes of the highest margin cherry veneer logs.

Earnings in the Corporate and All Other category increased $2.1 million from a loss of $1.0 million mainly due to an increase in interest income resulting from the investment of the proceeds from the sale of United Energy and lower expenses for project development costs in the former international segment.

EARNINGS GUIDANCE

The Company is refining its earnings guidance for the remainder of its 2006 fiscal year. Consolidated earnings for fiscal 2006 are expected to be in the range of $2.27 to $2.47 per share.* Earnings per share guidance on a consolidated and major segment basis is provided later in this document.

The earnings range for the Exploration & Production segment has been revised downward due to the decrease in commodity prices from the September 13, 2005, NYMEX forward strip prices on which the original forecast was based. The earnings range for the Pipeline & Storage segment was increased due to increased transportation throughput and higher rates for transportation and storage services. The combined earnings range for the Company's other segments was increased as a result of the Energy Marketing segment's better than expected performance through the first six months of the year combined with higher than expected net interest income in the Corporate and All Other category.

This revised earnings per share guidance has excluded the projected impact of the repurchase by the Company of its common shares. As announced in December, 2005, the Company's Board of Directors authorized the repurchase of up to eight million shares in the open market or through private transactions. Through March 31, 2006, the Company had repurchased 825,250 shares. These repurchases had the effect of increasing earnings per share during the current quarter by approximately $0.003 per share. Based on certain purchase limitations dictated by share trading volumes, the Company estimates that the total eight million share repurchase could be completed by January, 2007.* At that repurchase rate, and at the resultant reduced number of shares outstanding, earnings per share for the entire 2006 fiscal year might be increased by approximately $0.03 per share as a result of the share repurchase.*

The revised guidance has also excluded any impact from changing commodity prices. The current guidance for the remaining six months of the Company's 2006 fiscal year is based on NYMEX commodity prices as of April 24, 2006. Earnings per share guidance will be affected by changes in prices from those used to develop the guidance. Those prices, and the earnings sensitivity to changes in those prices can be found later within this release.

In addition, the sensitivity table does not include any impact from possible ceiling test impairments that could result if: 1) quarter-end commodity pricing were to decrease below the prices that were in effect on March 31, 2006, and 2) there were no substantial addition to reserves from exploratory activities in Canada. Under the full-cost accounting method that Seneca utilizes for its oil and gas operations, the capitalized costs of Canadian oil and gas properties less accumulated depletion and related deferred taxes were nearly equal to the ceiling for Canadian oil and gas properties. Any decrease in pricing from March 31, 2006, could cause Seneca to incur a non-cash impairment charge which would have an immediate impact on earnings.* In the United States, Seneca has a full-cost cushion of approximately $427 million.

Consolidated earnings for the third quarter of fiscal 2006 are projected to be in the range of $0.44 to $0.50 per share.*

    DISCUSSION OF NON-RECURRING ITEMS (all amounts are after tax)

The comparative consolidated earnings for the three months and six months ended March 31, 2005, exclude a $2.6 million gain from the sale of base gas from Supply Corporation's jointly-owned Ellisburg Storage Field. There were no non-recurring items for the three months or six months ended March 31, 2006.

Including non-recurring items, compared with the same three months in the prior fiscal year, the Pipeline and Storage segment's earnings were down $1.6 million to $16.9 million. Including non-recurring items, compared with the same six months in the prior fiscal year, the Pipeline and Storage segment's earnings were up $2.0 million to $32.7 million.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 5, 2006, at 10 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, you may go to National Fuel's Web site at http://www.nationalfuelgas.com and click on the "For Investors" link at the top of the homepage. For those without Internet access, you may access the live call by dialing (toll-free) 1-800-591-6930, and use the passcode "45950940". For those unable to listen to the live conference call, a replay will be available approximately one hour after the conclusion of the call at the same Web site link and by phone at (toll free) 888-286-8010 using passcode "80957234." Both the webcast and telephonic replay will be available until the close of business on Friday, May 12, 2006.

National Fuel is an integrated energy company with $3.9 billion in assets comprised of the following five operating segments: Utility, Pipeline and Storage, Exploration and Production, Energy Marketing, and Timber. 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.

Certain statements contained herein, including those which are designated with an asterisk ("*") and those which use words such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," 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: changes in laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations, and changes in laws and regulations relating to repeal of the Public Utility Holding Company Act of 1935; changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents; changes in demographic patterns and weather conditions, including the occurrence of severe weather, such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment or valuation of derivative financial instruments or the Company's natural gas and oil reserves; impairments under the Securities and Exchange Commission's full cost ceiling test for natural gas and oil reserves; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; failure of the price differential between heavy sour crude oil and light sweet crude oil to return to its historical norm; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; 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 gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans, including changes in the plans of the sponsors of the proposed Millennium Pipeline with respect to that project; the nature and projected profitability of pending and potential projects and other investments; occurrences affecting the Company's ability to obtain funds from operations, debt or equity to finance needed capital expenditures and other investments, including any downgrades in the Company's credit ratings; uncertainty of oil and gas reserve estimates; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves; significant changes from expectations in the Company's actual production levels for natural gas or oil; regarding foreign operations, changes in trade and monetary policies, inflation and exchange rates, taxes, operating conditions, laws and regulations related to foreign operations, and political and governmental changes; 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; changes in actuarial assumptions and the return on assets with respect to the Company's retirement plan and post-retirement benefit plans; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide 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 or to reflect the occurrence of unanticipated events.



                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES
                 RECONCILIATION TO REPORTED EARNINGS


                          Three       Three       Six         Six
                         Months      Months      Months      Months
(Thousands of Dollars)    Ended       Ended       Ended       Ended
                        March 31,   March 31,   March 31,   March 31,
                          2006        2005        2006        2005
                       (unaudited) (unaudited) (unaudited) (unaudited)
                       ----------- ----------- ----------- -----------
Utility
---------------------- ----------- ----------- ----------- -----------
Reported earnings         $28,654     $28,882     $50,407     $46,954
                       ----------- ----------- ----------- -----------

Pipeline and Storage
----------------------
Reported earnings          16,892      18,457      32,742      30,734
Base gas sale                   -      (2,636)          -      (2,636)
                       ----------- ----------- ----------- -----------
Earnings before non-
 recurring items           16,892      15,821      32,742      28,098
                       ----------- ----------- ----------- -----------

Exploration and
 Production
---------------------- ----------- ----------- ----------- -----------
Reported earnings          25,845      11,230      43,280      25,153
                       ----------- ----------- ----------- -----------

Energy Marketing
---------------------- ----------- ----------- ----------- -----------
Reported earnings           3,877       2,612       4,864       3,361
                       ----------- ----------- ----------- -----------

Timber
---------------------- ----------- ----------- ----------- -----------
Reported earnings           2,242       2,893       3,706       3,646
                       ----------- ----------- ----------- -----------

Corporate and All
 Other
---------------------- ----------- ----------- ----------- -----------
Reported earnings           1,084         (93)      1,014      (1,038)
                       ----------- ----------- ----------- -----------

Consolidated Earnings
 from Continuing
 Operations
----------------------
Reported earnings from
 continuing operations     78,594      63,981     136,013     108,810
Total non-recurring
 items from above               -      (2,636)          -      (2,636)
                       ----------- ----------- ----------- -----------
Earnings from
 continuing operations
 before non-recurring
 items                    $78,594     $61,345    $136,013    $106,174
                       =========== =========== =========== ===========

Discontinued
 Operations
----------------------
Reported earnings from
 discontinued
 operations                     -       6,702           -      12,310
                       ----------- ----------- ----------- -----------

Consolidated
----------------------
Reported earnings         $78,594     $70,683    $136,013    $121,120
                       =========== =========== =========== ===========




                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES
                 RECONCILIATION TO REPORTED EARNINGS


                         Three       Three       Six         Six
                        Months      Months      Months      Months
(Diluted Earnings Per    Ended       Ended       Ended       Ended
 Share)                March 31,   March 31,   March 31,   March 31,
                         2006        2005        2006        2005
                       (unaudited) (unaudited) (unaudited) (unaudited)
                       ----------- ----------- ----------- -----------
Utility
---------------------- ----------- ----------- ----------- -----------
Reported earnings           $0.33       $0.34       $0.58       $0.55
                       ----------- ----------- ----------- -----------

Pipeline and Storage
----------------------
Reported earnings            0.20        0.22        0.38        0.36
Base gas sale                   -       (0.03)          -       (0.03)
                       ----------- ----------- ----------- -----------
Earnings before non-
 recurring items             0.20        0.19        0.38        0.33
                       ----------- ----------- ----------- -----------

Exploration and
 Production
---------------------- ----------- ----------- ----------- -----------
Reported earnings            0.30        0.13        0.50        0.30
                       ----------- ----------- ----------- -----------

Energy Marketing
---------------------- ----------- ----------- ----------- -----------
Reported earnings            0.04        0.03        0.06        0.04
                       ----------- ----------- ----------- -----------

Timber
---------------------- ----------- ----------- ----------- -----------
Reported earnings            0.03        0.03        0.04        0.04
                       ----------- ----------- ----------- -----------

Corporate and All
 Other (Including
 Rounding)
---------------------- ----------- ----------- ----------- -----------
Reported earnings            0.01           -        0.02       (0.01)
                       ----------- ----------- ----------- -----------

Consolidated Earnings
 from Continuing
 Operations
----------------------
Reported earnings from
 continuing operations       0.91        0.75        1.58        1.28
Total non-recurring
 items from above               -       (0.03)          -       (0.03)
                       ----------- ----------- ----------- -----------
Earnings from
 continuing operations
 before non-recurring
 items                      $0.91       $0.72       $1.58       $1.25
                       =========== =========== =========== ===========

Discontinued
 Operations
----------------------
Reported earnings from
 discontinued
 operations                     -        0.08           -        0.15
                       ----------- ----------- ----------- -----------

Consolidated
----------------------
Reported earnings           $0.91       $0.83       $1.58       $1.43
                       =========== =========== =========== ===========




                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)

                         Three Months Ended       Six Months Ended
                             March 31,               March 31,
                            (Unaudited)             (Unaudited)
                      ----------------------- ------------------------
SUMMARY OF OPERATIONS     2006        2005        2006        2005
---------------------- ----------- ----------- ----------- -----------
Operating Revenues    $   890,981 $   735,842 $ 1,601,737 $ 1,236,126
                       ----------- ----------- ----------- -----------

Operating Expenses:
  Purchased Gas           566,540     440,254   1,003,317     696,410
  Operation and
   Maintenance            121,076     110,392     224,704     203,015
  Property, Franchise
   and Other Taxes         20,120      19,897      37,302      36,953
  Depreciation,
   Depletion and
   Amortization            44,278      44,632      87,324      87,340
                       ----------- ----------- ----------- -----------
                          752,014     615,175   1,352,647   1,023,718

Operating Income          138,967     120,667     249,090     212,408

Other Income(Expense):
Income from
 Unconsolidated
 Subsidiaries                 720         455       1,985       1,239
Interest Income               965       1,018       2,098       1,290
Other Income                  248       4,827         989       5,378
Interest Expense on
 Long-Term Debt           (18,149)    (18,319)    (36,367)    (36,694)
Other Interest Expense     (1,465)     (1,936)     (3,240)     (4,354)
                       ----------- ----------- ----------- -----------

Income from Continuing
 Operations Before
 Income Taxes             121,286     106,712     214,555     179,267

Income Tax Expense         42,692      42,731      78,542      70,457
                       ----------- ----------- ----------- -----------

Income from Continuing
 Operations                78,594      63,981     136,013     108,810

Income from
 Discontinued
 Operations, Net of
 Tax                            -       6,702           -      12,310
                       ----------- ----------- ----------- -----------

Net Income Available
 for Common Stock     $    78,594 $    70,683 $   136,013 $   121,120
                       =========== =========== =========== ===========

Earnings Per Common
 Share:
   Basic:
    Income from
     Continuing
     Operations       $      0.93 $      0.77 $      1.61 $      1.31
    Income from
     Discontinued
     Operations                 -        0.08           -        0.15
                       ----------- ----------- ----------- -----------
    Net Income
     Available for
     Common Stock     $      0.93 $      0.85 $      1.61 $      1.46
                       =========== =========== =========== ===========

   Diluted:
    Income from
     Continuing
     Operations       $      0.91 $      0.75 $      1.58 $      1.28
   Income from
    Discontinued
    Operations                  -        0.08           -        0.15
                       ----------- ----------- ----------- -----------
   Net Income
    Available for
    Common Stock      $      0.91 $      0.83 $      1.58 $      1.43
                       =========== =========== =========== ===========

Weighted Average
Common Shares:
  Used in Basic
   Calculation         84,346,733  83,313,191  84,385,140  83,231,435
                       =========== =========== =========== ===========
  Used in Diluted
   Calculation         86,253,597  84,770,068  86,256,515  84,711,134
                       =========== =========== =========== ===========



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

                                                 March 31,   Sept. 30,
(Thousands of Dollars)                             2006        2005
----------------------------------------------- ----------- ----------

ASSETS
Property, Plant and Equipment                  $4,535,882  $4,423,255
Less - Accumulated Depreciation, Depletion and
 Amortization                                   1,639,493   1,583,955
----------------------------------------------- ----------- ----------
     Net Property, Plant and Equipment          2,896,389   2,839,300
----------------------------------------------  ----------- ----------

Current Assets:
Cash and Temporary Cash Investments                98,099      57,607
Hedging Collateral Accounts                        16,890      77,784
Receivables - Net                                 358,026     155,064
Unbilled Utility Revenue                           67,074      20,465
Gas Stored Underground                             31,883      64,529
Materials and Supplies - at average cost           32,425      33,267
Unrecovered Purchased Gas Costs                         -      14,817
Prepayments and Other Current Assets               41,096      65,469
Deferred Income Taxes                              49,546      83,774
Fair Value of Derivative Financial Instruments      5,895           -
----------------------------------------------- ----------- ----------
     Total Current Assets                         700,934     572,776
----------------------------------------------  ----------- ----------

Other Assets:
Recoverable Future Taxes                           84,834      85,000
Unamortized Debt Expense                           16,516      17,567
Other Regulatory Assets                            56,713      47,028
Deferred Charges                                    8,086       4,474
Other Investments                                  85,349      80,394
Investments in Unconsolidated Subsidiaries         11,491      12,658
Goodwill                                            5,476       5,476
Intangible Assets                                  40,971      42,302
Other                                               6,808      15,677
----------------------------------------------  ----------- ----------
     Total Other Assets                           316,244     310,576
----------------------------------------------  ----------- ----------
Total Assets                                   $3,913,567  $3,722,652
----------------------------------------------  ----------- ----------

CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized -
 200,000,000 Shares; Issued and Outstanding -
 83,919,742 Shares and 84,356,748 Shares,
 Respectively                                  $   83,920  $   84,357
Paid in Capital                                   540,388     529,834
Earnings Reinvested in the Business               877,599     813,020
----------------------------------------------  ----------- ----------
Total Common Shareholder Equity Before
  Items of Other Comprehensive Loss             1,501,907   1,427,211
Accumulated Other Comprehensive Loss             (119,248)   (197,628)
----------------------------------------------  ----------- ----------
Total Comprehensive Shareholders' Equity        1,382,659   1,229,583
Long-Term Debt, Net of Current Portion          1,114,371   1,119,012
----------------------------------------------  ----------- ----------
     Total Capitalization                       2,497,030   2,348,595
----------------------------------------------  ----------- ----------

Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper             -           -
Current Portion of Long-Term Debt                   9,505       9,393
Accounts Payable                                  145,438     155,485
Amounts Payable to Customers                       12,650       1,158
Dividends Payable                                  24,327      24,445
Other Accruals and Current Liabilities            193,249      60,404
Fair Value of Derivative Financial Instruments     87,962     209,072
----------------------------------------------- ----------- ----------
     Total Current and Accrued Liabilities        473,131     459,957
----------------------------------------------  ----------- ----------

Deferred Credits:
Deferred Income Taxes                             503,147     489,720
Taxes Refundable to Customers                      11,070      11,009
Unamortized Investment Tax Credit                   6,445       6,796
Cost of Removal Regulatory Liability               93,092      90,396
Other Regulatory Liabilities                       58,886      66,339
Pension and Other Post-Retirement Liabilities     155,582     143,687
Asset Retirement Obligation                        42,216      41,411
Other Deferred Credits                             72,968      64,742
----------------------------------------------  ----------- ----------
     Total Deferred Credits                       943,406     914,100
----------------------------------------------  ----------- ----------
Commitments and Contingencies                           -           -
----------------------------------------------  ----------- ----------
Total Capitalization and Liabilities            3,913,567   3,722,652
==============================================  =========== ==========





                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Unaudited)

                                                  Six Months Ended
                                                      March 31,
(Thousands of Dollars)                             2006        2005
----------------------------------------------------------------------

Operating Activities:
Net Income Available for Common Stock          $  136,013  $  121,120
Adjustments to Reconcile Net Income to Net
 Cash
   Provided by Operating Activities:
      Depreciation, Depletion and
       Amortization                                87,324      96,285
      Deferred Income Taxes                        (1,435)     (3,982)
      Income from Unconsolidated Subsidiaries,
       Net of Cash Distributions                    1,166         282
      Minority Interest in Foreign
       Subsidiaries                                     -       3,342
      Excess Tax Benefits Associated with
       Stock-Based Compensation Awards             (6,515)          -
      Other                                        (5,297)     (7,124)
   Change in:
      Hedging Collateral Deposits                  60,894     (10,962)
      Receivables and Unbilled Utility
       Revenue                                   (249,466)   (228,969)
      Gas Stored Underground and Materials
       and Supplies                                33,486      43,628
      Unrecovered Purchased Gas Costs              14,817       7,532
      Prepayments and Other Current Assets         24,372        (745)
      Accounts Payable                             (9,951)     47,541
      Amounts Payable to Customers                 11,492      25,342
      Other Accruals and Current Liabilities      139,020     153,928
      Other Assets                                (11,837)    (13,191)
      Other Liabilities                            19,107      11,989
----------------------------------------------- ----------- ----------
         Net Cash Provided by Operating
          Activities                           $  243,190  $  246,016
======================================================================

Investing Activities:
Capital Expenditures                            ($134,961)  ($114,624)
Net Proceeds from Sale of Oil and Gas
 Producing Properties                                   4          85
Other                                              (1,396)      2,450
----------------------------------------------- ----------- ----------
         Net Cash Used in Investing Activities  ($136,353)  ($112,089)
======================================================================

Financing Activities:
Change in Notes Payable to Banks and
 Commercial Paper                              $        0    ($43,600)
Excess Tax Benefits Associated with Stock-
 Based Compensation Awards                          6,515           -
Shares Repurchased under Repurchase Plan          (26,577)          -
Reduction of Long-Term Debt                        (4,529)     (7,314)
Dividends Paid on Common Stock                    (48,933)    (46,483)
Proceeds From Issuance of Common Stock              7,164       6,301
----------------------------------------------- ----------- ----------
         Net Cash Used In Financing Activities   ($66,360)   ($91,096)
======================================================================
Effect of Exchange Rates on Cash                       15       3,135
----------------------------------------------- ----------- ----------
Net Increase in Cash and Temporary
 Cash Investments                                  40,492      45,966
Cash and Temporary Cash Investments
 at Beginning of Period                            57,607      57,541
======================================================================
Cash and Temporary Cash Investments
 at March 31                                   $   98,099  $  103,507
======================================================================




                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

               SEGMENT OPERATING RESULTS AND STATISTICS
                             (UNAUDITED)

(Thousands of
 Dollars, except
 per share          Three Months Ended          Six Months Ended
 amounts)              March 31,                   March 31,
                -------------------------- ---------------------------
UTILITY SEGMENT   2006     2005   Variance    2006    2005    Variance
--------------- --------------------------- --------------------------
Revenues from
 External
 Customers      $536,235 $485,647 $50,588  $967,714 $802,476 $165,238
Intersegment
 Revenues          5,681    5,693     (12)    9,803    9,998     (195)
                --------------------------  --------------------------
Total Operating
 Revenues        541,916  491,340  50,576   977,517  812,474  165,043
                --------------------------  --------------------------

Operating
 Expenses:
  Purchased Gas  394,803  349,656  45,147   715,360  567,611  147,749
  Operation and
   Maintenance    65,496   63,358   2,138   117,209  109,171    8,038
  Property,
   Franchise
   and Other
   Taxes          14,259   14,043     216    25,773   25,554      219
  Depreciation,
   Depletion and
   Amortization   10,027   10,017      10    20,004   19,997        7
                -------------------------- ---------------------------
                 484,585  437,074  47,511   878,346  722,333  156,013
                -------------------------- ---------------------------

Operating Income  57,331   54,266   3,065    99,171   90,141    9,030

Other Income
 (Expense):
  Interest
   Income            179      218     (39)      380      212      168
  Other Income       192      160      32       404      283      121
  Other Interest
   Expense        (6,880)  (5,234) (1,646)  (13,603) (10,843)  (2,760)
                -------------------------- ---------------------------

Income Before
 Income Taxes     50,822   49,410   1,412    86,352   79,793    6,559
Income Tax
 Expense          22,168   20,528   1,640    35,945   32,839    3,106
                -------------------------- ---------------------------
Net Income      $ 28,654 $ 28,882 $  (228) $ 50,407 $ 46,954 $  3,453
                ========================== ===========================

Net Income Per
 Share (Diluted)$   0.33 $   0.34 $ (0.01) $   0.58 $   0.55 $   0.03
                ========================== ===========================


                    Three Months Ended          Six Months Ended
                        March 31,                   March 31,
                -------------------------- ---------------------------
PIPELINE AND
 STORAGE SEGMENT  2006     2005   Variance    2006    2005    Variance
------------------------------------------ ---------------------------
Revenues from
 External
 Customers      $ 39,346 $ 36,029 $ 3,317  $ 74,085 $ 68,474 $  5,611
Intersegment
 Revenues         19,711   21,517  (1,806)   41,006   42,116   (1,110)
                -------------------------- ---------------------------
Total Operating
 Revenues         59,057   57,546   1,511   115,091  110,590    4,501
                -------------------------- ---------------------------

Operating
 Expenses:
  Purchased Gas       78      (26)    104        62      655     (593)
  Operation and
   Maintenance    16,949   14,616   2,333    32,265   31,600      665
  Property,
   Franchise and
   Other Taxes     4,010    3,924      86     7,966    7,649      317
  Depreciation,
   Depletion and
   Amortization    9,176   10,262  (1,086)   18,359   19,356     (997)
                -------------------------- ---------------------------
                  30,213   28,776   1,437    58,652   59,260     (608)
                -------------------------- ---------------------------

Operating Income  28,844   28,770      74    56,439   51,330    5,109

Other Income
 (Expense):
  Interest
   Income            144       12     132       196       25      171
  Other Income        60    4,095  (4,035)      268    4,199   (3,931)
  Interest
   Expense on
   Long-Term Debt   (274)    (426)    152      (592)    (909)     317
  Other Interest
   Expense        (1,093)  (1,308)    215    (2,389)  (2,666)     277
                -------------------------- ---------------------------

Income Before
 Income Taxes     27,681   31,143  (3,462)   53,922   51,979    1,943
Income Tax
 Expense          10,789   12,686  (1,897)   21,180   21,245      (65)
                -------------------------- ---------------------------
Net Income      $ 16,892 $ 18,457 $(1,565) $ 32,742 $ 30,734 $  2,008
                ========================== ===========================
Net Income Per
 Share (Diluted)$   0.20 $   0.22 $ (0.02) $   0.38 $   0.36 $   0.02
                ========================== ===========================




                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

               SEGMENT OPERATING RESULTS AND STATISTICS
                             (UNAUDITED)


(Thousands of
 Dollars, except
 per share         Three Months Ended          Six Months Ended
 amounts)              March 31,                   March 31,
                -------------------------- ---------------------------
EXPLORATION AND
 PRODUCTION
 SEGMENT            2006   2005   Variance   2006     2005    Variance
--------------- -------------------------- ---------------------------
Operating
 Revenues        $88,719  $70,319 $18,400  $170,806  $142,157 $28,649
                -------------------------- ---------------------------

Operating
 Expenses:
  Purchased Gas        4     (116)    120        98      (344)    442
 Operation and
  Maintenance:
    General and
     Admini-
     strative
     Expense       6,381    5,426     955    12,682    10,603   2,079
    Lease
     Operating
     Expense      13,155   11,069   2,086    26,694    21,526   5,168
    All Other
     Operation
     and
     Maintenance
     Expense       2,021    1,548     473     3,992     3,275     717
 Property,
  Franchise and
  Other Taxes
  (Lease
   Operating
   Expense)        1,528    1,475      53     2,736     2,732       4
  Depreciation,
   Depletion and
   Amortization   23,118   22,300     818    44,658    44,128     530
                -------------------------- ---------------------------
                  46,207   41,702   4,505    90,860    81,920   8,940
                -------------------------- ---------------------------

Operating Income  42,512   28,617  13,895    79,946    60,237  19,709

Other Income
 (Expense):
 Interest Income   1,940    1,036     904     3,781     1,893   1,888
 Other Interest
  Expense        (12,521) (12,104)   (417)  (24,950)  (24,132)   (818)
                -------------------------- ---------------------------

Income Before
 Income Taxes     31,931   17,549  14,382    58,777    37,998  20,779
 Income Tax
  Expense          6,086    6,319    (233)   15,497    12,845   2,652
                -------------------------- ---------------------------
Net Income      $ 25,845 $ 11,230 $14,615  $ 43,280  $ 25,153 $18,127
                ========================== ===========================

Net Income Per
 Share (Diluted)$   0.30 $   0.13 $  0.17  $   0.50 $   0.30 $   0.20
                =========================  ===========================



                    Three Months Ended          Six Months Ended
                        March 31,                   March 31,
                -------------------------  ---------------------------
ENERGY
 MARKETING
 SEGMENT          2006    2005   Variance    2006     2005    Variance
--------------- -------------------------  ---------------------------
Operating
 Revenues       $206,061 $124,565 $81,496  $351,620  $188,059 $163,561
                -------------------------  ---------------------------

Operating
 Expenses:
  Purchased Gas  198,562  119,241  79,321   341,391  180,829  160,562
  Operation and
   Maintenance     1,259    1,120     139     2,489    1,889      600
  Property,
   Franchise and
   Other Taxes      (249)      25    (274)     (240)      71     (311)
  Depreciation,
   Depletion and
   Amortization       16       22      (6)       37       43       (6)
                -------------------------  ---------------------------
                 199,588  120,408  79,180   343,677  182,832  160,845
                -------------------------  ---------------------------

Operating Income   6,473    4,157   2,316     7,943    5,227    2,716

Other Income
 (Expense):
 Interest Income      43      150    (107)      169      284     (115)
 Other Income        121       67      54       219      119      100
 Other Interest
  Expense           (129)      (3)   (126)     (191)      (5)    (186)
                -------------------------  ---------------------------

Income Before
 Income Taxes      6,508    4,371   2,137     8,140    5,625    2,515
Income Tax
 Expense           2,631    1,759     872     3,276    2,264    1,012
                -------------------------  ---------------------------
Net Income      $  3,877 $  2,612 $ 1,265  $  4,864 $  3,361 $  1,503
                =========================  ===========================

Net Income Per
 Share (Diluted)$   0.04 $   0.03 $  0.01  $   0.06 $   0.04 $   0.02
                =========================  ===========================




                       NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

               SEGMENT OPERATING RESULTS AND STATISTICS
                              (UNAUDITED)


(Thousands of
 Dollars, except per     Three Months Ended        Six Months Ended
 share amounts)              March 31,                March 31,
                     ------------------------ ------------------------
TIMBER SEGMENT         2006    2005  Variance   2006    2005  Variance
--------------------  ------- ------ --------  ------- ------ --------
Revenues from
 External Customers  $19,157 $18,971 $   186  $36,066 $31,966 $ 4,100
Intersegment
 Revenues                (23)      1     (24)       -       1      (1)
                      ------- ------- -------  ------- ------- -------
Total Operating
 Revenues             19,134  18,972     162   36,066  31,967   4,099
                      ------- ------- -------  ------- ------- -------

Operating Expenses:
 Operation and
  Maintenance         12,746  11,709   1,037   24,430  21,267   3,163
 Property, Franchise
  and Other Taxes        478     366     112      859     695     164
 Depreciation,
  Depletion and
  Amortization         1,627   1,720     (93)   3,638   3,197     441
                      ------- ------- -------  ------- ------- -------
                      14,851  13,795   1,056   28,927  25,159   3,768
                      ------- ------- -------  ------- ------- -------

Operating Income       4,283   5,177    (894)   7,139   6,808     331

Other Income
 (Expense):
 Interest Income         164     100      64      301     192     109
 Other Income             35       1      34       52      18      34
 Other Interest
  Expense               (758)   (683)    (75)  (1,521) (1,268)   (253)
                      ------- ------- -------  ------- ------- -------

Income Before Income
 Taxes                 3,724   4,595    (871)   5,971   5,750     221
Income Tax Expense     1,482   1,702    (220)   2,265   2,104     161
                      ------- ------- -------  ------- ------- -------
Net Income           $ 2,242 $ 2,893 $  (651) $ 3,706 $ 3,646 $    60
                      ======= ======= =======  ======= ======= =======

Net Income Per Share
 (Diluted)           $  0.03 $  0.03 $     -  $  0.04 $  0.04 $     -
                      ======= ======= =======  ======= ======= =======



                        Three Months Ended        Six Months Ended
                            March 31,                March 31,
                     ------------------------ ------------------------
ALL OTHER               2006   2005  Variance    2006    2005 Variance
--------------------  ------- ------ --------  ------- ------ --------
Revenues from
 External Customers  $ 1,075 $   311 $   764  $ 1,058 $ 2,994 $(1,936)
Intersegment
 Revenues              2,057   3,263  (1,206)   6,584   4,342   2,242
                      ------- ------- -------  ------- ------- -------
Total Operating
 Revenues              3,132   3,574    (442)   7,642   7,336     306
                      ------- ------- -------  ------- ------- -------

Operating Expenses:
 Purchased Gas         1,866   1,698     168    4,972   3,768   1,204
 Operation and
  Maintenance            922     902      20    1,795   1,792       3
 Property, Franchise
  and Other Taxes         23      27      (4)      42      47      (5)
 Depreciation,
  Depletion and
  Amortization           197     193       4      397     386      11
                      ------- ------- -------  ------- ------- -------
                       3,008   2,820     188    7,206   5,993   1,213
                      ------- ------- -------  ------- ------- -------

Operating Income         124     754    (630)     436   1,343    (907)

Other Income
 (Expense):
 Income from
  Unconsolidated
  Subsidiaries           720     455     265    1,985   1,239     746
 Interest Income           7       4       3       13       9       4
 Other Income             14     281    (267)      16     282    (266)
 Other Interest
  Expense               (616)   (391)   (225)  (1,206)   (743)   (463)
                      ------- ------- -------  ------- ------- -------

Income Before Income
 Taxes                   249   1,103    (854)   1,244   2,130    (886)
Income Tax Expense       203     451    (248)     628     878    (250)
                      ------- ------- -------  ------- ------- -------
Net Income           $    46 $   652 $  (606) $   616 $ 1,252 $  (636)
                      ======= ======= =======  ======= ======= =======

Net Income Per Share
 (Diluted)           $     - $  0.01 $ (0.01) $  0.01 $  0.02 $ (0.01)
                      ======= ======= =======  ======= ======= =======


                       NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

               SEGMENT OPERATING RESULTS AND STATISTICS
                              (UNAUDITED)

(Thousands of
 Dollars, except
 per share             Three Months Ended          Six Months Ended
 amounts)                  March 31,                  March 31,
                 -------------------------- --------------------------
CORPORATE          2006     2005   Variance   2006     2005   Variance
---------         -------- ------- --------  -------- ------- --------
Revenues from
 External
 Customers       $    388 $      - $   388  $    388 $      - $   388
Intersegment
 Revenues             782      692      90     1,475    1,321     154
                  -------- -------- -------  -------- -------- -------
Total Operating
 Revenues           1,170      692     478     1,863    1,321     542
                  -------- -------- -------  -------- -------- -------

Operating
 Expenses:
 Operation and
  Maintenance       1,582    1,611     (29)    3,450    3,561    (111)
 Property,
  Franchise and
  Other Taxes          71       37      34       166      205     (39)
 Depreciation,
  Depletion and
  Amortization        117      118      (1)      231      233      (2)
                  -------- -------- -------  -------- -------- -------
                    1,770    1,766       4     3,847    3,999    (152)
                  -------- -------- -------  -------- -------- -------

Operating Loss       (600)  (1,074)    474    (1,984)  (2,678)    694

Other Income
 (Expense):
 Interest Income   23,009   20,219   2,790    45,662   39,771   5,891
 Other Income        (174)     223    (397)       30      477    (447)
 Interest
  Expense on
  Long-Term Debt  (17,875) (17,893)     18   (35,775) (35,785)     10
 Other Interest
  Expense          (3,989)  (2,934) (1,055)   (7,784)  (5,793) (1,991)
                  -------- -------- -------  -------- -------- -------

Income (Loss)
 Before Income
 Taxes                371   (1,459)  1,830       149   (4,008)  4,157
Income Tax
 Expense             (667)    (714)     47      (249)  (1,718)  1,469
                  -------- -------- -------  -------- -------- -------
Net Income
 (Loss)          $  1,038 $   (745)$ 1,783  $    398 $ (2,290)$ 2,688
                  ======== ======== =======  ======== ======== =======

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




                     Three Months Ended          Six Months Ended
                         March 31,                  March 31,
INTERSEGMENT     -------------------------- --------------------------
 ELIMINATIONS       2006     2005  Variance   2006     2005   Variance
-------------     -------- ------- --------  -------- ------- --------
Intersegment
 Revenues        $(28,208)$(31,166)$ 2,958  $(58,868)$(57,778)$(1,090)
                  -------- -------- -------  -------- -------- -------

Operating
 Expenses:
 Purchased Gas    (28,773) (30,199)  1,426   (58,566) (56,109) (2,457)
 Operation and
  Maintenance         565     (967)  1,532      (302)  (1,669)  1,367
                  -------- -------- -------  -------- -------- -------
                  (28,208) (31,166)  2,958   (58,868) (57,778) (1,090)
                  -------- -------- -------  -------- -------- -------

Operating Income        -        -       -         -        -       -

Other Income
 (Expense):
 Interest Income  (24,521) (20,721) (3,800)  (48,404) (41,096) (7,308)
 Other Interest
  Expense          24,521   20,721   3,800    48,404   41,096   7,308
                  -------- -------- -------  -------- -------- -------

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

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





                       NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

                    SEGMENT INFORMATION (Continued)
                        (Thousands of Dollars)

                    Three Months Ended           Six Months Ended
                        March 31,                   March 31,
                       (Unaudited)                 (Unaudited)
               -------------------------- ----------------------------
                                Increase                     Increase
                 2006    2005  (Decrease)   2006     2005   (Decrease)
               -------- ------ ----------  -------- ------- ----------
Capital
 Expenditures:
--------------
Utility        $13,006 $10,939 $   2,067  $ 25,360 $ 22,274 $   3,086
Pipeline and
 Storage         4,165   3,318       847    10,328    8,205     2,123
Exploration
 and
 Production     45,401  40,866     4,535    96,324   61,874    34,450
Energy
 Marketing           1      23       (22)        6       34       (28)
Timber             257  17,844   (17,587)      752   18,696   (17,944)
                ------- ------- ---------  -------- -------- ---------
 Total
  Reportable
  Segments      62,830  72,990   (10,160)  132,770  111,083    21,687
All Other           56      96       (40)       56      103       (47)
Corporate        1,707      67     1,640     2,135       86     2,049
                ------- ------- ---------  -------- -------- ---------
 Total
  Expenditures
  from
  Continuing
  Operations   $64,593 $73,153 $  (8,560) $134,961 $111,272 $  23,689
                ======= ======= =========  ======== ======== =========


    DEGREE DAYS
    -----------

                                                     Percent Colder
Three Months Ended                                   (Warmer) Than:
 March 31              Normal    2006      2005     Normal   Last Year
-------------------  --------- --------- --------- --------- ---------

  Buffalo, NY           3,327     2,875     3,468     (13.6)    (17.1)
  Erie, PA              3,142     2,705     3,266     (13.9)    (17.2)

Six Months Ended
 March 31
-------------------

  Buffalo, NY           5,587     5,085     5,640      (9.0)     (9.8)
  Erie, PA              5,223     4,753     5,263      (9.0)     (9.7)





                       NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

                EXPLORATION AND PRODUCTION INFORMATION
                --------------------------------------

                                             Three Months Ended
                                                 March 31,
                                      --------------------------------
                                                             Increase
                                         2006       2005    (Decrease)
                                       ---------  --------- ----------

Gas Production/Prices:
----------------------
Production (MMcf)
 Gulf Coast                               2,752      2,844        (92)
 West Coast                                 933        986        (53)
 Appalachia                               1,246      1,137        109
 Canada                                   1,761      2,160       (399)
                                       ---------  ---------  ---------
                                          6,692      7,127       (435)
                                       =========  =========  =========
Average Prices (Per  Mcf)
 Gulf Coast                           $    8.47  $    6.75  $    1.72
 West Coast                                8.02       6.20       1.82
 Appalachia                               10.03       6.76       3.27
 Canada                                    7.21       5.52       1.69
  Weighted Average                         8.37       6.30       2.07
  Weighted Average after Hedging           7.39       5.97       1.42

Oil Production/Prices:
----------------------
Production (Thousands of Barrels)
 Gulf Coast                                 181        261        (80)
 West Coast                                 639        634          5
 Appalachia                                  12          9          3
 Canada                                      68         78        (10)
                                       ---------  ---------  ---------
                                            900        982        (82)
                                       =========  =========  =========

Average Prices (Per Barrel)
 Gulf Coast                           $   58.69  $   46.42  $   12.27
 West Coast                               53.65      37.67      15.98
 Appalachia                               60.28      42.28      18.00
 Canada                                   48.63      41.08       7.55
  Weighted Average                        54.37      40.31      14.06
  Weighted Average after Hedging          40.30      26.10      14.20

Total Production (Mmcfe)                 12,092     13,019       (927)
------------------------               =========  =========  =========

Selected Operating Performance
 Statistics:
------------------------------
General & Administrative Expense per
 Mcfe (1)                             $    0.53  $    0.42  $    0.11
Lease Operating Expense per Mcfe (1)  $    1.21  $    0.96  $    0.25
Depreciation, Depletion &
 Amortization per Mcfe (1)            $    1.91  $    1.71  $    0.20


                                              Six Months Ended
                                                 March 31,
                                      --------------------------------
                                                             Increase
                                         2006       2005    (Decrease)
                                       ---------  --------- ----------

Gas Production/Prices:
----------------------
Production (MMcf)
 Gulf Coast                             4,419       6,069      (1,650)
 West Coast                             1,951       2,025         (74)
 Appalachia                             2,499       2,343         156
 Canada                                 3,672       3,825        (153)
                                       ---------  ---------  ---------
                                       12,541      14,262      (1,721)
                                       =========  =========  =========
Average Prices (Per  Mcf)
 Gulf Coast                           $  9.33    $   6.61   $    2.72
 West Coast                              9.62        6.38        3.24
 Appalachia                             11.83        7.26        4.57
 Canada                                  9.06        5.49        3.57
  Weighted Average                       9.79        6.38        3.41
  Weighted Average after Hedging         7.88        5.98        1.90

Oil Production/Prices:
----------------------
Production (Thousands of Barrels)
 Gulf Coast                               288         550        (262)
 West Coast                             1,324       1,287          37
 Appalachia                                22          12          10
 Canada                                   155         154           1
                                       ---------  ---------  ---------
                                        1,789       2,003        (214)
                                       =========  =========  =========

Average Prices (Per Barrel)
 Gulf Coast                           $ 58.39    $  46.77   $   11.62
 West Coast                             52.46       37.40       15.06
 Appalachia                             60.84       42.85       17.99
 Canada                                 45.57       39.78        5.79
  Weighted Average                      52.92       40.19       12.73
  Weighted Average after Hedging        36.70       26.22       10.48

Total Production (Mmcfe)               23,275      26,280      (3,005)
------------------------               =========  =========  =========

Selected Operating Performance
 Statistics:
------------------------------
General & Administrative Expense per
 Mcfe (1)                             $  0.54    $   0.40   $    0.14
Lease Operating Expense per Mcfe (1)  $  1.26    $   0.92   $    0.34
Depreciation, Depletion &
 Amortization per Mcfe (1)            $  1.92    $   1.68   $    0.24

(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.




                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

                EXPLORATION AND PRODUCTION INFORMATION
                --------------------------------------


Hedging Summary for
 Fiscal 2006

SWAPS                     Volume     Average Hedge Price
-----                     ------     -------------------
Oil                        0.9 MMBBL $35.33 / BBL
Gas                        4.7 BCF   $6.20 / MCF

                                             Weighted Average
                                     ---------------------------------
No-cost Collars           Volume     Floor Price        Ceiling Price
---------------           ------     ------------------ --------------
Gas                        2.8 BCF   $8.37 / MCF        $15.00 / MCF

Hedging Summary for
 Fiscal 2007

SWAPS                     Volume     Average Hedge Price
-----                     ------     -------------------
Oil                        0.9 MMBBL $37.03 / BBL
Gas                        0.7 BCF   $5.84 / MCF

                                             Weighted Average
                                     ---------------------------------
No-cost Collars           Volume     Floor Price        Ceiling Price
---------------           ------     ------------------ --------------
Gas                        3.5 BCF   $8.12 / MCF        $19.73 / MCF




Drilling Program Six Months Ended March 31, 2006:
-------------------------------------------------
Gross Wells Drilled
-------------------
                                Gulf    West    East   Canada   Total
                               ------- ------- ------- ------- -------
Exploratory
 Successful                         0       0       1      12      13
 Unsuccessful                       0       0       0       2       2
Developmental
 Successful                         0      59      52       2     113
 Unsuccessful                       0       1       0       0       1
Total
 Successful                         0      59      53      14     126
 Unsuccessful                       0       1       0       2       3

Success Ratio                     N/A      98%    100%     88%     98%




                       NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES


Utility Throughput - (millions of cubic feet - MMcf)

                      Three Months Ended         Six Months Ended
                          March 31,                 March 31,
                  -------------------------- -------------------------
                                   Increase                  Increase
                    2006    2005  (Decrease)  2006    2005  (Decrease)
                  ------- ------- ---------- ------ ------- ----------
 Retail Sales:
  Residential
   Sales           26,807  32,559    (5,752) 46,331  52,428    (6,097)
  Commercial Sales  5,038   6,072    (1,034)  8,481   9,526    (1,045)
  Industrial Sales    459     425        34     786     601       185
                  ------- ------- ---------- ------ ------- ----------
                   32,304  39,056    (6,752) 55,598  62,555    (6,957)
 Transportation    22,119  22,465      (346) 36,461  36,568      (107)
                  ------- ------- ---------- ------ ------- ----------
                   54,423  61,521    (7,098) 92,059  99,123    (7,064)
                  ======= ======= ========== ====== ======= ==========

Pipeline & Storage Throughput- (MMcf)

                      Three Months Ended         Six Months Ended
                          March 31,                 March 31,
                  -------------------------- -------------------------
                                   Increase                  Increase
                    2006    2005  (Decrease)  2006    2005  (Decrease)
                  ------- ------- ---------- ------ ------- ----------
 Firm
  Transportation -
  Affiliated       43,637  52,703    (9,066) 76,862  84,905    (8,043)
 Firm
  Transportation -
  Non-Affiliated   71,191  77,148    (5,957)140,788 128,688    12,100
 Interruptible
  Transportation    1,831   1,180       651   5,554   2,842     2,712
                  ------- ------- ---------- ------ ------- ----------
                  116,659 131,031   (14,372)223,204 216,435     6,769
                  ======= ======= ========== ====== ======= ==========

Energy Marketing Volumes

                      Three Months Ended         Six Months Ended
                          March 31,                 March 31,
                  -------------------------- -------------------------
                                   Increase                  Increase
                    2006    2005  (Decrease)  2006    2005  (Decrease)
                  ------- ------- ---------- ------ ------- ----------
 Natural Gas
  (MMcf)           17,332  15,184     2,148  27,306  23,191     4,115
                  ======= ======= ========== ====== ======= ==========


Timber Board Feet (Thousands)

                      Three Months Ended         Six Months Ended
                          March 31,                 March 31,
                  -------------------------- -------------------------
                                   Increase                  Increase
                     2006    2005 (Decrease)   2006    2005 (Decrease)
                  ------- ------- ---------- ------ ------- ----------
 Log Sales          3,282   2,570       712   5,774   4,315     1,459
 Green Lumber
  Sales             2,982   2,538       444   4,956   4,702       254
 Kiln Dry Lumber
  Sales             4,512   3,897       615   8,998   7,263     1,735
                  ------- ------- ---------- ------ ------- ----------
                   10,776   9,005     1,771  19,728  16,280     3,448
                  ======= ======= ========== ====== ======= ==========



                       NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES
        FISCAL 2006 SEGMENT EARNINGS GUIDANCE AND SENSITIVITIES

     Fiscal 2006 (Diluted earnings per share guidance by segment*)
----------------------------------------------------------------------
                                 Previous Guidance   Revised Guidance
Segment                                Range              Range
-------------------------------- ------------------ ------------------

Utility                              $0.52 - $0.59      $0.54 - $0.60
Pipeline & Storage                   $0.60 - $0.63      $0.61 - $0.65
Exploration & Production             $1.10 - $1.20      $1.00 - $1.10
All Other                            $0.08 - $0.08      $0.12 - $0.12

Consolidated                         $2.30 - $2.50      $2.27 - $2.47


               Earnings per share sensitivity to changes
                 from NYMEX prices used in guidance* #
----------------------------------------------------------------------

                                    $1 change per    $1 change per Bbl
                                       MMBtu gas            oil
                                   ----------------- -----------------
Segment                            Increase Decrease Increase Decrease
---------------------------------- ----------------- -----------------

Utility                                  -        -        -        -
Pipeline & Storage                 + $0.01  - $0.01        -        -
Exploration & Production            +$0.06  - $0.06  + $0.01  - $0.01
All Other                                -        -        -        -

Consolidated                       + $0.07  - $0.07  + $0.01  - $0.01



                    NYMEX prices used in guidance
----------------------------------------------------------------------

                                    Natural Gas            Oil
                                   ($ per MMBtu)       ($ per Bbl)
                                 ------------------ ------------------

Apr-06                                $7.233             $70.00
May-06                                $7.558             $73.00
Jun-06                                $7.786             $73.33
Jul-06                                $8.031             $74.56
Aug-06                                $8.246             $75.26
Sep-06                                $8.448             $75.66

April 06/Sept-06 Average              $7.884             $73.64






 *  Please refer to forward looking statement footnote at page 8 of
    this document.

 #  This sensitivity table is current as of May 4, 2006, but will
    become obsolete with the passage of time, changes in Seneca's
    production forecast, changes in customer use per account, as
    additional hedging contracts are entered into, and the settling of
    NYMEX hedge contracts at their maturity.




                      NATIONAL FUEL GAS COMPANY
                           AND SUBSIDIARIES

Quarter Ended March 31 (unaudited)          2006            2005
----------------------------------      --------------  --------------

Operating Revenues                     $  890,981,000  $  735,842,000
                                        ==============  ==============
Income from Continuing Operations      $   78,594,000  $   63,981,000
Income from Discontinued Operations,
 Net of Tax                                         -       6,702,000
                                        --------------  --------------
Net Income Available for Common Stock  $   78,594,000  $   70,683,000
                                        ==============  ==============

Earnings Per Common Share:
 Basic:
  Income from Continuing Operations    $         0.93  $         0.77
  Income from Discontinued Operations               -            0.08
                                        --------------  --------------
  Net Income Available for Common
   Stock                               $         0.93  $         0.85
                                        ==============  ==============

 Diluted:
  Income from Continuing Operations    $         0.91  $         0.75
  Income from Discontinued Operations               -            0.08
                                        --------------  --------------
  Net Income Available for Common
   Stock                               $         0.91  $         0.83
                                        ==============  ==============

 Weighted Average Common Shares:
  Used in Basic Calculation                84,346,733      83,313,191
                                        ==============  ==============
  Used in Diluted Calculation              86,253,597      84,770,068
                                        ==============  ==============


Six Months Ended March 31 (unaudited)
-------------------------------------

 Operating Revenues                    $1,601,737,000  $1,236,126,000
                                        ==============  ==============

 Income from Continuing Operations     $  136,013,000  $  108,810,000
 Income from Discontinued Operations,
  Net of Tax                                        -      12,310,000
                                        --------------  --------------
 Net Income Available for Common Stock $  136,013,000  $  121,120,000
                                        ==============  ==============

 Earnings Per Common Share:
  Basic:
   Income from Continuing Operations   $         1.61  $         1.31
   Income from Discontinued Operations              -            0.15
                                        --------------  --------------
   Net Income Available for Common
    Stock                              $         1.61  $         1.46
                                        ==============  ==============

  Diluted:
   Income from Continuing Operations   $         1.58  $         1.28
   Income from Discontinued Operations              -            0.15
                                        --------------  --------------
   Net Income Available for Common
    Stock                              $         1.58  $         1.43
                                        ==============  ==============

  Weighted Average Common Shares:
   Used in Basic Calculation               84,385,140      83,231,435
                                        ==============  ==============
   Used in Diluted Calculation             86,256,515      84,711,134
                                        ==============  ==============


Twelve Months Ended March 31 (unaudited)
----------------------------------------

 Operating Revenues                    $2,289,160,000  $1,900,504,000
                                        ==============  ==============

 Income from Continuing Operations        180,717,000     155,463,000
 Income from Discontinued Operations,
  Net of Tax                               23,663,000       5,974,000
                                        --------------  --------------
 Net Income Available for Common Stock $  204,380,000  $  161,437,000
                                        ==============  ==============

 Earnings Per Common Share:
  Basic:
   Income from Continuing Operations   $         2.15  $         1.88
   Income from Discontinued Operations           0.28            0.07
                                        --------------  --------------
   Net Income Available for Common
    Stock                              $         2.43  $         1.95
                                        ==============  ==============

  Diluted:
   Income from Continuing Operations   $         2.11  $         1.85
   Income from Discontinued Operations           0.27            0.07
                                        --------------  --------------
   Net Income Available for Common
    Stock                              $         2.38  $         1.92
                                        ==============  ==============

 Weighted Average Common Shares:
  Used in Basic Calculation                84,116,896      82,818,252
                                        ==============  ==============
  Used in Diluted Calculation              85,810,270      84,143,995
                                        ==============  ==============

CONTACT:
National Fuel Gas Company
Analyst:
Margaret M. Suto, 716-857-6987

Media:
Julie Coppola Cox, 716-857-7079

Transfer Agent and Plan Administrator

EQ Shareowner Services (1)

  • U.S. Mail
    EQ Shareowner Services
    P.O. Box 64874
    St. Paul, MN 55164-0874
  • Overnight Delivery
    EQ Shareowner Services
    1110 Centre Pointe Curve, Suite 101
    Mendota Heights, MN 55120-4100


Toll-Free Telephone:  1-800-648-8166
Calling from outside the U.S. and Canada:  1-651-450-4064
Automated: 24 hours, 7 days a week
Attended:  8:00 am to 8:00 pm ET, Monday-Friday
Website:  www.shareowneronline.com
For additional Investor information, please click here.

(1) Effective February 1, 2018, the Wells Fargo Shareowner Service division of Wells Fargo Bank, N.A., has been sold to Equinity Group, plc.

Disclosure: Caution Concerning Forward-Looking Statements

National Fuel Gas Company is including the following cautionary statement in this corporate website to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company.

Forward-looking statements include, without limitation, statements regarding future prospects, plans, objectives, goals, projections, estimates of oil and gas quantities, strategies, future events or performance and underlying assumptions, capital structure, anticipated capital expenditures, completion of construction projects, projections for pension and other post-retirement benefit obligations, impacts of the adoption of new accounting rules, and possible outcomes of litigation or regulatory proceedings, as well as 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. All forward-looking statements, whether written or oral and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements. 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 are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.

In addition to other factors and matters discussed elsewhere in this website, the following are important factors that, in the view of the Company, could cause actual results to differ materially from those discussed in the forward-looking statements:

  1. 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;
  2. 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;
  3. 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;
  4. Changes in the price of natural gas or oil;
  5. Impairments under the SEC’s full cost ceiling test for natural gas and oil reserves;
  6. 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;
  7. 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;
  8. Increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; 
  9. Changes in price differentials between similar quantities of natural gas or oil 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;
  10. Other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date;
  11. The cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company;
  12. Uncertainty of oil and gas reserve estimates;
  13. Significant differences between the Company’s projected and actual production levels for natural gas or oil;
  14. Changes in demographic patterns and weather conditions;
  15. Changes in the availability, price or accounting treatment of derivative financial instruments;
  16. 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;
  17. 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;
  18. The creditworthiness or performance of the Company’s key suppliers, customers and counterparties;
  19. The impact of information technology, cybersecurity or data security breaches;
  20. Economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war;
  21. Significant differences between the Company’s projected and actual capital expenditures and operating expenses; or
  22. 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.