Press Release Details

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

FISCAL 2017 FOURTH QUARTER SUMMARY

• Consolidated net income of $45.6 million, or $0.53 per share, compared to consolidated net income of $37.6 million, or $0.44 per share, and operating results of $56.6 million, or $0.66 per share, in the prior year (see reconciliation below)
• Consolidated adjusted EBITDA of $142.8 million (non-GAAP reconciliation on page 25)
• Net production of 40.4 Bcfe, a 1% increase from the prior year
• Price-related natural gas production curtailments of 2.5 Bcf in Appalachia
• Average natural gas prices, after the impact of hedging, of $2.91 per Mcf, down $0.18 per Mcf from the prior year
• Average oil prices, after the impact of hedging, of $54.77 per Bbl, down $5.24 per Bbl from the prior year
• Gathering revenues of $25.0 million, up 6% from the prior year, on 44.9 Bcf of gathering system throughput

FISCAL 2017 HIGHLIGHTS

• Consolidated net income of $283.5 million, or $3.30 per share, compared to consolidated net loss of $291.0 million, or $3.43 per share, and operating results of $263.6 million, or $3.09 per share, in the prior year (see reconciliation below)
• Consolidated adjusted EBITDA of $777.0 million (non-GAAP reconciliation on page 25)
• Cash provided by operations exceeded net cash used in investing activities by $262 million
• Gathering net income of $40.4 million, a 32% increase from the prior year
• Net production of 173.5 Bcfe, an 8% increase from the prior year
• Proved reserves at September 30, 2017, of 2.2 Tcfe, an increase of 17% from September 30, 2016
• Seneca finding and development costs, excluding revisions, of $0.60 per Mcfe
• Increased shareholder dividend for the 47th consecutive year to an annualized distribution of $1.66 per share

OPERATING RESULTS
			Three Months Ended										Fiscal Year Ended
			September 30,										September 30,
(in thousands except per share amounts)			2017					2016					2017					2016
Reported GAAP earnings (loss)			$	45,577				$	37,553				$	283,482				$	(290,958	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)								32,756										948,307
Tax impact of impairment of oil and gas properties								(13,757		)								(398,287		)
Joint development agreement professional fees (E&P)																		7,855
Tax impact of joint development agreement professional fees																		(3,299		)
Operating results			$	45,577				$	56,552				$	283,482				$	263,618
Reported GAAP earnings (loss) per share			$	0.53				$	0.44				$	3.30				$	(3.43	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)								0.38										11.18
Tax impact of impairment of oil and gas properties								(0.16		)								(4.69		)
Joint development agreement professional fees (E&P)																		0.09
Tax impact of joint development agreement professional fees																		(0.04		)
Earnings per share impact of diluted shares																		(0.02		)
Operating results per diluted share			$	0.53				$	0.66				$	3.30				$	3.09

MANAGEMENT COMMENTS

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

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

DISCUSSION OF RESULTS BY SEGMENT

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

Upstream Business

Exploration and Production Segment

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

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

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

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

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

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

A decrease in Seneca’s effective tax rate increased the segment’s earnings by $7.2 million in the fourth quarter. This decrease was largely due to an anticipated increase in the sale of future natural gas production at delivery points in the southeastern U.S. utilizing firm transportation capacity on the Atlantic Sunrise project, which decreased the effective tax rate used in the calculation of Seneca’s deferred taxes. Seneca holds approximately 190 million cubic feet ("MMcf") per day of capacity on Atlantic Sunrise, which commenced construction during the fourth quarter and is expected to be in-service before the end of the Company’s 2018 fiscal year.

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

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

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

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

Year End Proved Reserves

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

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

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

Midstream Businesses

Pipeline and Storage Segment

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

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

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

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

Gathering Segment

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

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

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

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

Downstream Businesses

Utility Segment

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

			Three Months Ended															Fiscal Year Ended
			September 30,															September 30,
(in thousands except per share amounts)			2017					2016					Variance					2017					2016					Variance
Net Income / (Loss)			$	(4,168	)			$	(1,784	)			$	(2,384	)			$	46,935				$	50,960				$	(4,025	)
Net Income / (Loss) Per Share (Diluted)			$	(0.05	)			$	(0.02	)			$	(0.03	)			$	0.55				$	0.60				$	(0.05	)
Adjusted EBITDA			$	11,846				$	10,400				$	1,446				$	151,078				$	148,683				$	2,395

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

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

Energy Marketing Segment

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

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

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

Corporate and All Other

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

GUIDANCE

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

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

			Updated FY 2018 Guidance
Consolidated Earnings per Share			$2.75 to $3.05
Capital Expenditures (Millions)
Exploration and Production (1)			$275 - $325
Pipeline and Storage			$110 - $140
Gathering			$60 - $80
Utility			$90 - $100
Consolidated Capital Expenditures			$535 - $645
Exploration & Production Segment Guidance
Commodity Price Assumptions
NYMEX natural gas price			$3.00 /MMBtu
Appalachian basin spot price			$2.40 /MMBtu
NYMEX (WTI) crude oil price			$50.00 /Bbl
California oil price (% of WTI)			95%
Production (Bcfe)
East Division - Appalachia (2)			165 to 180
West Division - California			~ 20
Total Production			185 to 200
E&P Operating Costs ($/Mcfe)
LOE			$0.90 - $1.00
G&A			$0.30 - $0.35
DD&A			$0.65 - $0.70
Other Business Segment Guidance
Gathering Segment Revenues (Millions)			$115 - $125
Pipeline and Storage Segment Revenues (Millions)			~$295

(1)		Net of conveyance proceeds received from joint development partner for working interest in joint development wells.
(2)		Seneca East Division - Appalachia production guidance assumes approximately 32 Bcf of spot sales at the midpoint of guidance.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 3, 2017, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 833-287-0795, using conference ID number “96083185.” For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 800-585-8367 using conference ID number “96083185.” Both the webcast and a telephonic replay will be available until the close of business on Friday, November 10, 2017.

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

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the price of natural gas or oil; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2017
(Unaudited)
			Upstream					Midstream Businesses										Downstream Businesses
			Exploration &					Pipeline &															Energy					Corporate /
(Thousands of Dollars)			Production					Storage					Gathering					Utility					Marketing					All Other					Consolidated*
Fourth quarter 2016 GAAP earnings			$	16,744				$	16,816				$	8,537				$	(1,784	)			$	231				$	(2,991	)			$	37,553
Items impacting comparability:
Impairment of oil and gas producing properties			32,756																														32,756
Tax impact of impairment of oil and gas producing  properties			(13,757		)																												(13,757		)
Fourth Quarter 2016 operating results			35,743					16,816					8,537					(1,784		)			231					(2,991		)			56,552
Drivers of operating results
Higher (lower) crude oil prices			(2,303		)																												(2,303		)
Higher (lower) natural gas prices			(4,202		)																												(4,202		)
Higher (lower) natural gas production			1,677																														1,677
Higher (lower) crude oil production			(1,891		)																												(1,891		)
Derivative mark to market adjustments			(765		)																												(765		)
Lower (higher) lease operating and transportation  expenses			(3,021		)																												(3,021		)
Higher (lower) transportation revenues								(2,364		)																							(2,364		)
Higher (lower) gathering and processing revenues													926																				926
Lower (higher) other operating expenses			(1,952		)			(2,185		)			(869		)			541															(4,465		)
Impact of new rates																		554															554
Higher (lower) margins																							(703		)								(703		)
Higher (lower) interest income																		(560		)													(560		)
Lower (higher) interest expense																		(738		)													(738		)
Lower (higher) income tax expense / effective tax rate			7,215					1,453					536					(1,837		)													7,367
All other / rounding			(147		)			71					(127		)			(344		)			(142		)			202					(487		)
Fourth quarter 2017 GAAP earnings and operating results			$	30,354				$	13,791				$	9,003				$	(4,168	)			$	(614	)			$	(2,789	)			$	45,577
* Amounts do not reflect intercompany eliminations

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2017
(Unaudited)
			Upstream					Midstream Businesses									Downstream Businesses
			Exploration &					Pipeline &														Energy					Corporate /
			Production					Storage				Gathering					Utility					Marketing					All Other					Consolidated*
Fourth quarter 2016 GAAP earnings			$	0.20				$	0.20			$	0.10				$	(0.02	)			$	—				$	(0.04	)			$	0.44
Items impacting comparability:
Impairment of oil and gas producing properties			0.38																													0.38
Tax impact of impairment of oil and gas producing  properties			(0.16		)																											(0.16		)
Fourth quarter 2016 operating results			0.42					0.20				0.10					(0.02		)			—					(0.04		)			0.66
Drivers of operating results
Higher (lower) crude oil prices			(0.03		)																											(0.03		)
Higher (lower) natural gas prices			(0.05		)																											(0.05		)
Higher (lower) natural gas production			0.02																													0.02
Higher (lower) crude oil production			(0.02		)																											(0.02		)
Derivative mark to market adjustments			(0.01		)																											(0.01		)
Lower (higher) lease operating and transportation  expenses			(0.04		)																											(0.04		)
Higher (lower) transportation revenues								(0.03		)																						(0.03		)
Higher (lower) gathering and processing revenues												0.01																				0.01
Lower (higher) other operating expenses			(0.02		)			(0.03		)		(0.01		)			0.01															(0.05		)
Impact of new rates																	0.01															0.01
Higher (lower) margins																						(0.01		)								(0.01		)
High (lower) interest income																	(0.01		)													(0.01		)
Lower (higher) interest expense																	(0.01		)													(0.01		)
Lower (higher) income tax expense / effective tax rate			0.08					0.02				0.01					(0.02		)													0.09
All other / rounding			—					—				(0.01		)			(0.01		)			—					0.02					—
Fourth quarter 2017 GAAP earnings and operating results			$	0.35				$	0.16			$	0.10				$	(0.05	)			$	(0.01	)			$	(0.02	)			$	0.53
* Amounts do not reflect intercompany eliminations

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2017
(Unaudited)
			Upstream					Midstream Businesses										Downstream Businesses
			Exploration &					Pipeline &															Energy					Corporate /
(Thousands of Dollars)			Production					Storage					Gathering					Utility					Marketing					All Other					Consolidated*
Fiscal 2016 GAAP earnings			$	(452,842	)			$	76,610				$	30,499				$	50,960				$	4,348				$	(533	)			$	(290,958	)
Items impacting comparability:
Impairment of oil and gas producing properties			948,307																														948,307
Tax impact of impairment of oil and gas producing  properties			(398,287		)																												(398,287		)
Joint development agreement professional fees			7,855																														7,855
Tax impact of joint development agreement professional  fees			(3,299		)																												(3,299		)
Fiscal 2016 operating results			101,734					76,610					30,499					50,960					4,348					(533		)			263,618
Drivers of operating results
Higher (lower) crude oil prices			(7,198		)																												(7,198		)
Higher (lower) natural gas prices			(7,318		)																												(7,318		)
Higher (lower) natural gas production			26,571																														26,571
Higher (lower) crude oil production			(6,884		)																												(6,884		)
Lower (higher) lease operating and transportation  expenses			(7,851		)																												(7,851		)
Lower (higher) depreciation / depletion			17,808					1,350					(571		)			(2,577		)													16,010
Higher (lower) transportation revenues								(6,885		)																							(6,885		)
Higher (lower) gathering and processing revenues													11,852																				11,852
Lower (higher) other operating expenses			2,193					(4,377		)			(1,799		)			(3,335		)								(1,181		)			(8,499		)
Lower (higher) property, franchise and other taxes			(1,060		)			(753		)																							(1,813		)
Regulatory true-up adjustments																		464															464
Higher (lower) usage																		2,543															2,543
Impact of new rates																		1,481															1,481
Higher (lower) margins																							(2,634		)			(1,027		)			(3,661		)
Higher (lower) AFUDC**								(484		)								(913		)													(1,397		)
Higher (lower) interest income																		(581		)													(581		)
Lower (higher) interest expense			1,126															(592		)													534
Lower (higher) income tax expense / effective tax rate			10,609					3,185										(948		)								(460		)			12,386
All other / rounding			(404		)			(200		)			396					433					(205		)			90					110
Fiscal 2017 GAAP earnings and operating results			$	129,326				$	68,446				$	40,377				$	46,935				$	1,509				$	(3,111	)			$	283,482
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2017
(Unaudited)
			Upstream					Midstream Businesses										Downstream Businesses
			Exploration &					Pipeline &															Energy					Corporate /
			Production					Storage					Gathering					Utility					Marketing					All Other					Consolidated*
Fiscal 2016 GAAP earnings			$	(5.34	)			$	0.90				$	0.36				$	0.60				$	0.05				$	—				$	(3.43	)
Items impacting comparability:
Impairment of oil and gas producing properties			11.18																														11.18
Tax impact of impairment of oil and gas producing  properties			(4.69		)																												(4.69		)
Joint development agreement professional fees			0.09																														0.09
Tax impact of joint development agreement professional fees			(0.04		)																												(0.04		)
Earnings per share impact of diluted shares			(0.01		)																							(0.01		)			(0.02		)
Fiscal 2016 operating results			1.19					0.90					0.36					0.60					0.05					(0.01		)			3.09
Drivers of operating results
Higher (lower) crude oil prices			(0.08		)																												(0.08		)
Higher (lower) natural gas prices			(0.09		)																												(0.09		)
Higher (lower) natural gas production			0.31																														0.31
Higher (lower) crude oil production			(0.08		)																												(0.08		)
Lower (higher) lease operating and transportation  expenses			(0.09		)																												(0.09		)
Lower (higher) depreciation / depletion			0.21					0.02					(0.01		)			(0.03		)													0.19
Higher (lower) transportation revenues								(0.08		)																							(0.08		)
Higher (lower) gathering and processing revenues													0.14																				0.14
Lower (higher) other operating expenses			0.03					(0.05		)			(0.02		)			(0.04		)								(0.01		)			(0.09		)
Lower (higher) property, franchise and other taxes			(0.01		)			(0.01		)																							(0.02		)
Regulatory true-up adjustments																		0.01															0.01
Higher (lower) usage																		0.03															0.03
Impact of new rates																		0.02															0.02
Higher (lower) margins																							(0.03		)			(0.01		)			(0.04		)
Higher (lower) AFUDC**								(0.01		)								(0.01		)													(0.02		)
Higher (lower) interest income																		(0.01		)													(0.01		)
Lower (higher) interest expense			0.01															(0.01		)													—
Lower (higher) income tax expense / effective tax rate			0.12					0.04										(0.01		)								(0.01		)			0.14
All other / rounding			(0.02		)			(0.01		)			—					—					—					—					(0.03		)
Fiscal 2017 GAAP earnings and operating results			$	1.50				$	0.80				$	0.47				$	0.55				$	0.02				$	(0.04	)			$	3.30
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
			Three Months Ended										Twelve Months Ended
			September 30,										September 30,
			(Unaudited)										(Unaudited)
SUMMARY OF OPERATIONS			2017					2016					2017					2016
Operating Revenues:
Utility and Energy Marketing Revenues			$	92,456				$	83,620				$	755,485				$	624,602
Exploration and Production and Other Revenues			144,049					155,734					617,666					611,766
Pipeline and Storage and Gathering Revenues			50,432					53,118					206,730					216,048
			286,937					292,472					1,579,881					1,452,416
Operating Expenses:
Purchased Gas			10,905					814					275,254					147,982
Operation and Maintenance:
Utility and Energy Marketing			40,497					41,038					199,293					192,512
Exploration and Production and Other			42,946					36,235					145,099					160,201
Pipeline and Storage and Gathering			29,184					24,477					98,200					88,801
Property, Franchise and Other Taxes			20,627					19,791					84,995					81,714
Depreciation, Depletion and Amortization			55,383					56,117					224,195					249,417
Impairment of Oil and Gas Producing Properties			—					32,756					—					948,307
			199,542					211,228					1,027,036					1,868,934
Operating Income (Loss)			87,395					81,244					552,845					(416,518		)
Other Income (Expense):
Interest Income			1,269					1,595					4,113					4,235
Other Income			2,316					2,647					7,043					9,820
Interest Expense on Long-Term Debt			(29,230		)			(29,083		)			(116,471		)			(117,347		)
Other Interest Expense			(686		)			241					(3,366		)			(3,697		)
Income (Loss) Before Income Taxes			61,064					56,644					444,164					(523,507		)
Income Tax Expense (Benefit)			15,487					19,091					160,682					(232,549		)
Net Income (Loss) Available for Common Stock			$	45,577				$	37,553				$	283,482				$	(290,958	)
Earnings (Loss) Per Common Share
Basic			$	0.53				$	0.44				$	3.32				$	(3.43	)
Diluted			$	0.53				$	0.44				$	3.30				$	(3.43	)
Weighted Average Common Shares:
Used in Basic Calculation			85,512,637					85,016,408					85,364,929					84,847,993
Used in Diluted Calculation			86,238,287					85,629,858					86,021,386					84,847,993

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
			September 30,				September 30,
(Thousands of Dollars)			2017				2016
ASSETS
Property, Plant and Equipment			$9,945,560				$9,539,581
Less - Accumulated Depreciation, Depletion and Amortization			5,271,486				5,085,099
Net Property, Plant and Equipment			4,674,074				4,454,482
Current Assets:
Cash and Temporary Cash Investments			555,530				129,972
Hedging Collateral Deposits			1,741				1,484
Receivables - Net			112,383				133,201
Unbilled Revenue			22,883				18,382
Gas Stored Underground			35,689				34,332
Materials and Supplies - at average cost			33,926				33,866
Unrecovered Purchased Gas Costs			4,623				2,440
Other Current Assets			51,505				59,354
Total Current Assets			818,280				413,031
Other Assets:
Recoverable Future Taxes			181,363				177,261
Unamortized Debt Expense			1,159				1,688
Other Regulatory Assets			174,433				320,750
Deferred Charges			30,047				20,978
Other Investments			125,265				110,664
Goodwill			5,476				5,476
Prepaid Post-Retirement Benefit Costs			56,370				17,649
Fair Value of Derivative Financial Instruments			36,111				113,804
Other			742				604
Total Other Assets			610,966				768,874
Total Assets			$6,103,320				$5,636,387
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 85,543,125 Shares
and 85,118,886 Shares, Respectively			$85,543				$85,119
Paid in Capital			796,646				771,164
Earnings Reinvested in the Business			851,669				676,361
Accumulated Other Comprehensive Loss			(30,123	)			(5,640	)
Total Comprehensive Shareholders' Equity			1,703,735				1,527,004
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs			2,083,681				2,086,252
Total Capitalization			3,787,416				3,613,256
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper			—				—
Current Portion of Long-Term Debt			300,000				—
Accounts Payable			126,443				108,056
Amounts Payable to Customers			—				19,537
Dividends Payable			35,500				34,473
Interest Payable on Long-Term Debt			35,031				34,900
Customer Advances			15,701				14,762
Customer Security Deposits			20,372				16,019
Other Accruals and Current Liabilities			111,889				74,430
Fair Value of Derivative Financial Instruments			1,103				1,560
Total Current and Accrued Liabilities			646,039				303,737
Deferred Credits:
Deferred Income Taxes			891,287				823,795
Taxes Refundable to Customers			95,739				93,318
Cost of Removal Regulatory Liability			204,630				193,424
Other Regulatory Liabilities			113,716				99,789
Pension and Other Post-Retirement Liabilities			149,079				277,113
Asset Retirement Obligations			106,395				112,330
Other Deferred Credits			109,019				119,625
Total Deferred Credits			1,669,865				1,719,394
Commitments and Contingencies			—				—
Total Capitalization and Liabilities			$6,103,320				$5,636,387

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
			Twelve Months Ended
			September 30,
(Thousands of Dollars)			2017					2016
Operating Activities:
Net Income (Loss) Available for Common Stock			$	283,482				$	(290,958	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Impairment of Oil and Gas Producing Properties			—					948,307
Depreciation, Depletion and Amortization			224,195					249,417
Deferred Income Taxes			117,975					(246,794		)
Excess Tax Benefits Associated with Stock-Based Compensation Awards			—					(1,868		)
Stock-Based Compensation			12,262					5,755
Other			16,476					12,620
Change in:
Hedging Collateral Deposits			(257		)			9,640
Receivables and Unbilled Revenue			(3,380		)			(6,408		)
Gas Stored Underground and Materials and Supplies			(1,417		)			(3,532		)
Unrecovered Purchased Gas Costs			(2,183		)			(2,440		)
Other Current Assets			7,849					3,179
Accounts Payable			17,192					(40,664		)
Amounts Payable to Customers			(19,537		)			(37,241		)
Customer Advances			939					(1,474		)
Customer Security Deposits			4,353					(471		)
Other Accruals and Current Liabilities			27,004					3,453
Other Assets			(2,885		)			1,941
Other Liabilities			2,183					(13,483		)
Net Cash Provided by Operating Activities			$	684,251				$	588,979
Investing Activities:
Capital Expenditures			$	(450,335	)			$	(581,576	)
Net Proceeds from Sale of Oil and Gas Producing Properties			26,554					137,316
Other			1,216					(9,236		)
Net Cash Used in Investing Activities			$	(422,565	)			$	(453,496	)
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards			$	—				$	1,868
Dividends Paid on Common Stock			(139,063		)			(134,824		)
Net Proceeds From Issuance of Long-Term Debt			295,151					—
Net Proceeds From Issuance of Common Stock			7,784					13,849
Net Cash Provided by (Used in) Financing Activities			$	163,872				$	(119,107	)
Net Increase in Cash and Temporary Cash Investments			425,558					16,376
Cash and Temporary Cash Investments at Beginning of Period			129,972					113,596
Cash and Temporary Cash Investments at September 30			$	555,530				$	129,972

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
			Three Months Ended															Twelve Months Ended
(Thousands of Dollars, except per share amounts)			September 30,															September 30,
EXPLORATION AND PRODUCTION SEGMENT			2017					2016					Variance					2017					2016					Variance
Total Operating Revenues			$	142,952				$	154,530				$	(11,578	)			$	614,599				$	607,113				$	7,486
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense			15,060					14,928					132					58,734					70,598					(11,864		)
Lease Operating and Transportation Expense			43,110					38,463					4,647					165,991					153,914					12,077
All Other Operation and Maintenance Expense			5,301					2,429					2,872					13,469					12,832					637
Property, Franchise and Other Taxes			4,178					3,553					625					15,426					13,794					1,632
Depreciation, Depletion and Amortization			27,212					27,377					(165		)			112,565					139,963					(27,398		)
Impairment of Oil and Gas Producing Properties			—					32,756					(32,756		)			—					948,307					(948,307		)
			94,861					119,506					(24,645		)			366,185					1,339,408					(973,223		)
Operating Income (Loss)			48,091					35,024					13,067					248,414					(732,295)					980,709
Other Income (Expense):
Interest Income			257					78					179					707					858					(151		)
Interest Expense			(13,432		)			(13,552		)			120					(53,702		)			(55,434		)			1,732
Income (Loss) Before Income Taxes			34,916					21,550					13,366					195,419					(786,871		)			982,290
Income Tax Expense (Benefit)			4,562					4,806					(244		)			66,093					(334,029		)			400,122
Net Income (Loss)			$	30,354				$	16,744				$	13,610				$	129,326				$	(452,842	)			$	582,168
Net Income (Loss) Per Share (Diluted)			$	0.35				$	0.20				$	0.15				$	1.50				$	(5.34	)			$	6.84

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
			Three Months Ended															Twelve Months Ended
(Thousands of Dollars, except per share amounts)			September 30,															September 30,
PIPELINE AND STORAGE SEGMENT			2017					2016					Variance					2017					2016					Variance
Revenues from External Customers			$	50,403				$	53,047				$	(2,644	)			$	206,615				$	215,674				$	(9,059	)
Intersegment Revenues			21,421					22,483					(1,062		)			87,810					90,755					(2,945		)
Total Operating Revenues			71,824					75,530					(3,706		)			294,425					306,429					(12,004		)
Operating Expenses:
Purchased Gas			90					(10		)			100					271					1,048					(777		)
Operation and Maintenance			25,618					22,256					3,362					86,135					79,402					6,733
Property, Franchise and Other Taxes			7,067					6,767					300					27,691					26,533					1,158
Depreciation, Depletion and Amortization			10,545					11,128					(583		)			41,196					43,273					(2,077		)
			43,320					40,141					3,179					155,293					150,256					5,037
Operating Income			28,504					35,389					(6,885		)			139,132					156,173					(17,041		)
Other Income (Expense):
Interest Income			483					242					241					1,467					770					697
Other Income			568					583					(15		)			2,511					3,235					(724		)
Interest Expense			(8,540		)			(8,309		)			(231		)			(33,717		)			(33,327		)			(390		)
Income Before Income Taxes			21,015					27,905					(6,890		)			109,393					126,851					(17,458		)
Income Tax Expense			7,224					11,089					(3,865		)			40,947					50,241					(9,294		)
Net Income			$	13,791				$	16,816				$	(3,025	)			$	68,446				$	76,610				$	(8,164	)
Net Income Per Share (Diluted)			$	0.16				$	0.20				$	(0.04	)			$	0.80				$	0.90				$	(0.10	)
			Three Months Ended															Twelve Months Ended
			September 30,															September 30,
GATHERING SEGMENT			2017					2016					Variance					2017					2016					Variance
Revenues from External Customers			$	29				$	71				$	(42	)			$	115				$	374				$	(259	)
Intersegment Revenues			24,937					23,471					1,466					107,566					89,073					18,493
Total Operating Revenues			24,966					23,542					1,424					107,681					89,447					18,234
Operating Expenses:
Operation and Maintenance			3,884					2,547					1,337					13,380					10,613					2,767
Property, Franchise and Other Taxes			(124		)			32					(156		)			(79		)			149					(228		)
Depreciation, Depletion and Amortization			4,154					3,876					278					16,162					15,282					880
			7,914					6,455					1,459					29,463					26,044					3,419
Operating Income			17,052					17,087					(35		)			78,218					63,403					14,815
Other Income (Expense):
Interest Income			353					109					244					994					297					697
Other Income			—					1					(1		)			1					5					(4		)
Interest Expense			(2,403		)			(2,091		)			(312		)			(9,142		)			(8,872		)			(270		)
Income Before Income Taxes			15,002					15,106					(104		)			70,071					54,833					15,238
Income Tax Expense			5,999					6,569					(570		)			29,694					24,334					5,360
Net Income			$	9,003				$	8,537				$	466				$	40,377				$	30,499				$	9,878
Net Income Per Share (Diluted)			$	0.10				$	0.10				$	—				$	0.47				$	0.36				$	0.11

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESSES
			Three Months Ended															Twelve Months Ended
(Thousands of Dollars, except per share amounts)			September 30,															September 30,
UTILITY SEGMENT			2017					2016					Variance					2017					2016					Variance
Revenues from External Customers			$	76,080				$	67,870				$	8,210				$	626,899				$	531,024				$	95,875
Intersegment Revenues			1,758					2,367					(609		)			13,072					13,123					(51		)
Total Operating Revenues			77,838					70,237					7,601					639,971					544,147					95,824
Operating Expenses:
Purchased Gas			17,321					10,392					6,929					252,802					166,155					86,647
Operation and Maintenance			39,448					40,294					(846		)			195,231					189,178					6,053
Property, Franchise and Other Taxes			9,223					9,151					72					40,860					40,131					729
Depreciation, Depletion and Amortization			13,080					13,107					(27		)			52,582					48,618					3,964
			79,072					72,944					6,128					541,475					444,082					97,393
Operating Income (Loss)			(1,234		)			(2,707		)			1,473					98,496					100,065					(1,569		)
Other Income (Expense):
Interest Income			633					1,415					(782		)			1,051					1,737					(686		)
Other Income			197					593					(396		)			774					2,342					(1,568		)
Interest Expense			(7,037		)			(5,898		)			(1,139		)			(28,492		)			(27,582		)			(910		)
Income (Loss) Before Income Taxes			(7,441		)			(6,597		)			(844		)			71,829					76,562					(4,733		)
Income Tax Expense (Benefit)			(3,273		)			(4,813		)			1,540					24,894					25,602					(708		)
Net Income (Loss)			$	(4,168	)			$	(1,784	)			$	(2,384	)			$	46,935				$	50,960				$	(4,025	)
Net Income (Loss) Per Share (Diluted)			$	(0.05	)			$	(0.02	)			$	(0.03	)			$	0.55				$	0.60				$	(0.05	)
			Three Months Ended															Twelve Months Ended
			September 30,															September 30,
ENERGY MARKETING SEGMENT			2017					2016					Variance					2017					2016					Variance
Revenues from External Customers			$	16,376				$	15,750				$	626				$	128,586				$	93,578				$	35,008
Intersegment Revenues			194					30					164					794					884					(90		)
Total Operating Revenues			16,570					15,780					790					129,380					94,462					34,918
Operating Expenses:
Purchased Gas			15,982					14,111					1,871					120,317					81,347					38,970
Operation and Maintenance			1,717					1,575					142					6,978					6,447					531
Property, Franchise and Other Taxes			5					7					(2		)			5					13					(8		)
Depreciation, Depletion and Amortization			69					70					(1		)			279					278					1
			17,773					15,763					2,010					127,579					88,085					39,494
Operating Income (Loss)			(1,203		)			17					(1,220		)			1,801					6,377					(4,576		)
Other Income (Expense):
Interest Income			153					136					17					571					422					149
Other Income			19					15					4					75					58					17
Interest Expense			(10		)			(13		)			3					(47		)			(49		)			2
Income (Loss) Before Income Taxes			(1,041		)			155					(1,196		)			2,400					6,808					(4,408		)
Income Tax Expense (Benefit)			(427		)			(76		)			(351		)			891					2,460					(1,569		)
Net Income (Loss)			$	(614	)			$	231				$	(845	)			$	1,509				$	4,348				$	(2,839	)
Net Income (Loss) Per Share (Diluted)			$	(0.01	)			$	—				$	(0.01	)			$	0.02				$	0.05				$	(0.03	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
			Three Months Ended															Twelve Months Ended
(Thousands of Dollars, except per share amounts)			September 30,															September 30,
ALL OTHER			2017					2016					Variance					2017					2016					Variance
Total Operating Revenues			$	862				$	978				$	(116	)			$	2,173				$	3,753				$	(1,580	)
Operating Expenses:
Operation and Maintenance			374					281					93					1,718					776					942
Property, Franchise and Other Taxes			151					145					6					596					593					3
Depreciation, Depletion and Amortization			136					373					(237		)			661					1,260					(599		)
			661					799					(138		)			2,975					2,629					346
Operating Income (Loss)			201					179					22					(802		)			1,124					(1,926		)
Other Income (Expense):
Interest Income			66					35					31					213					117					96
Other Income			—					98					(98		)			—					98					(98		)
Income (Loss) Before Income Taxes			267					312					(45		)			(589		)			1,339					(1,928		)
Income Tax Expense (Benefit)			111					130					(19		)			(247		)			561					(808		)
Net Income (Loss)			$	156				$	182				$	(26	)			$	(342	)			$	778				$	(1,120	)
Net Income (Loss) Per Share (Diluted)			$	0.01				$	—				$	0.01				$	(0.01	)			$	0.01				$	(0.02	)
			Three Months Ended															Twelve Months Ended
			September 30,															September 30,
CORPORATE			2017					2016					Variance					2017					2016					Variance
Revenues from External Customers			$	235				$	226				$	9				$	894				$	900				$	(6	)
Intersegment Revenues			895					1,091					(196		)			3,825					3,991					(166		)
Total Operating Revenues			1,130					1,317					(187		)			4,719					4,891					(172		)
Operating Expenses:
Operation and Maintenance			4,832					4,740					92					15,887					15,012					875
Property, Franchise and Other Taxes			127					136					(9		)			496					501					(5		)
Depreciation, Depletion and Amortization			187					186					1					750					743					7
			5,146					5,062					84					17,133					16,256					877
Operating Loss			(4,016		)			(3,745		)			(271		)			(12,414		)			(11,365		)			(1,049		)
Other Income (Expense):
Interest Income			31,318					30,389					929					125,003					123,156					1,847
Other Income			1,532					1,357					175					3,682					4,082					(400		)
Interest Expense on Long-Term Debt			(29,230		)			(29,083		)			(147		)			(116,471		)			(117,347		)			876
Other Interest Expense			(1,258		)			(705		)			(553		)			(4,159		)			(1,555		)			(2,604		)
Loss Before Income Taxes			(1,654		)			(1,787		)			133					(4,359		)			(3,029		)			(1,330		)
Income Tax Expense (Benefit)			1,291					1,386					(95		)			(1,590		)			(1,718		)			128
Net Loss			$	(2,945	)			$	(3,173	)			$	228				$	(2,769	)			$	(1,311	)			$	(1,458	)
Net Loss Per Share (Diluted)			$	(0.03	)			$	(0.04	)			$	0.01				$	(0.03	)			$	(0.01	)			$	(0.02	)
			Three Months Ended															Twelve Months Ended
			September 30,															September 30,
INTERSEGMENT ELIMINATIONS			2017					2016					Variance					2017					2016					Variance
Intersegment Revenues			$	(49,205	)			$	(49,442	)			$	237				$	(213,067	)			$	(197,826	)			$	(15,241	)
Operating Expenses:
Purchased Gas			(22,488		)			(23,679		)			1,191					(98,136		)			(100,568		)			2,432
Operation and Maintenance			(26,717		)			(25,763		)			(954		)			(114,931		)			(97,258		)			(17,673		)
			(49,205		)			(49,442		)			237					(213,067		)			(197,826		)			(15,241		)
Operating Income			—					—					—					—					—					—
Other Income (Expense):
Interest Income			(31,994		)			(30,809		)			(1,185		)			(125,893		)			(123,122		)			(2,771		)
Interest Expense			31,994					30,809					1,185					125,893					123,122					2,771
Net Income			$	—				$	—				$	—				$	—				$	—				$	—
Net Income Per Share (Diluted)			$	—				$	—				$	—				$	—				$	—				$	—

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
			Three Months Ended															Twelve Months Ended
			September 30,															September 30,
			(Unaudited)															(Unaudited)
													Increase															Increase
			2017					2016					(Decrease)					2017					2016					(Decrease)
Capital Expenditures:
Exploration and Production			$	84,512		(1)		$	41,181		(2)		$	43,331				$	253,057		(1)(2)		$	256,104		(2)(3)		$	(3,047	)
Pipeline and Storage			41,808			(1)		38,230			(2)		3,578					95,336			(1)(2)		114,250			(2)(3)		(18,914		)
Gathering			8,940			(1)		10,578			(2)		(1,638		)			32,645			(1)(2)		54,293			(2)(3)		(21,648		)
Utility			24,456			(1)		25,719			(2)		(1,263		)			80,867			(1)(2)		98,007			(2)(3)		(17,140		)
Energy Marketing			22					6					16					36					34					2
Total Reportable Segments			159,738					115,714					44,024					461,941					522,688					(60,747		)
All Other			—					—					—					39					37					2
Corporate			49					136					(87		)			137					326					(189		)
Eliminations			482					—					482					—					—					—
Total Capital Expenditures			$	160,269				$	115,850				$	44,419				$	462,117				$	523,051				$	(60,934	)

	(1)		Capital expenditures for the quarter and year ended September 30, 2017, include accounts payable and accrued liabilities related to capital expenditures of $36.5 million, $25.1 million, $3.9 million, and $6.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represent non-cash investing activities at that date.
	(2)		Capital expenditures for the year ended September 30, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2016 and paid during the year ended September 30, 2017. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2017.
	(3)		Capital expenditures for the year ended September 30, 2016, exclude capital expenditures of $46.2 million, $33.9 million, $22.4 million and $16.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2015 and paid during the year ended September 30, 2016. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2015, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2016.

DEGREE DAYS
												Percent Colder
												(Warmer) Than:
Three Months Ended September 30			Normal			2017			2016			Normal (1)			Last Year (1)
Buffalo, NY			162			109			44			(32.7)			147.7
Erie, PA			124			97			23			(21.8)			321.7
Twelve Months Ended September 30
Buffalo, NY			6,617			5,708			5,611			(13.7)			1.7
Erie, PA			6,147			5,179			5,182			(15.7)			(0.1	)

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

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
			Three Months Ended															Twelve Months Ended
			September 30,															September 30,
													Increase															Increase
			2017					2016					(Decrease)					2017					2016					(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia			35,576					34,711					865					154,093					140,457					13,636
West Coast			749					779					(30		)			2,995					3,090					(95		)
Total Production			36,325					35,490					835					157,088					143,547					13,541
Average Prices (Per Mcf)
Appalachia			$	2.42				$	2.24				$	0.18				$	2.52				$	1.94				$	0.58
West Coast			3.77					3.62					0.15					4.00					3.25					0.75
Weighted Average			2.44					2.27					0.17					2.55					1.97					0.58
Weighted Average after Hedging			2.91					3.09					(0.18		)			2.95					3.02					(0.07		)
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia			1					12					(11		)			4					28					(24		)
West Coast			674					712					(38		)			2,736					2,895					(159		)
Total Production			675					724					(49		)			2,740					2,923					(183		)
Average Prices (Per Barrel)
Appalachia			$	45.71				$	63.46				$	(17.75	)			$	48.27				$	52.15				$	(3.88	)
West Coast			47.44					39.06					8.38					46.14					35.26					10.88
Weighted Average			47.44					39.46					7.98					46.18					35.42					10.76
Weighted Average after Hedging			54.77					60.01					(5.24		)			53.87					57.91					(4.04		)
Total Production (Mmcfe)			40,375					39,834					541					173,528					161,085					12,443
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)			$	0.37				$	0.37				$	—				$	0.34				$	0.44				$	(0.10	)
Lease Operating and Transportation Expense per Mcfe (1)(2)			$	1.07				$	0.97				$	0.10				$	0.96				$	0.96				$	—
Depreciation, Depletion & Amortization per Mcfe (1)			$	0.67				$	0.69				$	(0.02	)			$	0.65				$	0.87				$	(0.22	)

(1)		Refer to page 16 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
(2)		Amounts include transportation expense of $0.54 and $0.52 per Mcfe for the three months ended September 30, 2017 and September 30, 2016, respectively. Amounts include transportation expense of $0.54 and $0.52 per Mcfe for the twelve months ended September 30, 2017 and September 30, 2016, respectively.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Fiscal 2018			Volume						Average Hedge Price
Oil Swaps
Brent			24,000		BBL			$	91.00 / BBL
NYMEX			1,731,000		BBL			$	53.79 / BBL
Total			1,755,000		BBL			$	54.30 / BBL
Gas Swaps
NYMEX			42,570,000		MMBTU			$	3.34 / MMBTU
DOM			180,000		MMBTU			$	3.82 / MMBTU
DAWN			8,400,000		MMBTU			$	3.08 / MMBTU
Fixed Price Physical Sales			47,992,454		MMBTU			$	2.43 / MMBTU
Total			99,142,454		MMBTU			$	2.88 / MMBTU
Hedging Summary for Fiscal 2019			Volume						Average Hedge Price
Oil Swaps
NYMEX			1,068,000		BBL			$	53.42 / BBL
Gas Swaps
NYMEX			27,060,000		MMBTU			$	3.17 / MMBTU
DAWN			7,200,000		MMBTU			$	3.00 / MMBTU
Fixed Price Physical Sales			34,438,090		MMBTU			$	2.49 / MMBTU
Total			68,698,090		MMBTU			$	2.81 / MMBTU
Hedging Summary for Fiscal 2020			Volume						Average Hedge Price
Oil Swaps
NYMEX			324,000		BBL			$	50.52 / BBL
Gas Swaps
NYMEX			16,880,000		MMBTU			$	3.07 / MMBTU
DAWN			7,200,000		MMBTU			$	3.00 / MMBTU
Fixed Price Physical Sales			38,428,255		MMBTU			$	2.28 / MMBTU
Total			62,508,255		MMBTU			$	2.58 / MMBTU
Hedging Summary for Fiscal 2021			Volume						Average Hedge Price
Oil Swaps
NYMEX			156,000		BBL			$	51.00 / BBL
Gas Swaps
NYMEX			4,840,000		MMBTU			$	3.01 / MMBTU
DAWN			600,000		MMBTU			$	3.00 / MMBTU
Fixed Price Physical Sales			41,260,451		MMBTU			$	2.21 / MMBTU
Total			46,700,451		MMBTU			$	2.31 / MMBTU
Hedging Summary for Fiscal 2022			Volume						Average Hedge Price
Oil Swaps
NYMEX			156,000		BBL			$	51.00 / BBL
Fixed Price Physical Sales			39,844,042		MMBTU			$	2.23 / MMBTU
Hedging Summary for Fiscal 2023			Volume						Average Hedge Price
Fixed Price Physical Sales			35,769,734		MMBTU			$	2.25 / MMBTU
Hedging Summary for Fiscal 2024			Volume						Average Hedge Price
Fixed Price Physical Sales			20,111,036		MMBTU			$	2.24 / MMBTU
Hedging Summary for Fiscal 2025			Volume						Average Hedge Price
Fixed Price Physical Sales			2,293,200		MMBTU			$	2.18 / MMBTU

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Reserve Quantity Information
(Unaudited)
			Gas MMcf
			U.S.
			Appalachian				West Coast				Total
			Region				Region				Company
Proved Developed and Undeveloped Reserves:
September 30, 2016			1,631,451				43,124				1,674,575
Extensions and Discoveries			386,649				8				386,657
Revisions of Previous Estimates			84,480				6,369				90,849
Production			(154,093	)			(2,995	)			(157,088	)
Sales of Minerals in Place			(21,873	)			—				(21,873	)
September 30, 2017			1,926,614				46,506				1,973,120
Proved Developed Reserves:
September 30, 2016			1,089,492				43,124				1,132,616
September 30, 2017			1,316,596				46,506				1,363,102
			Oil Mbbl
			U.S.
			Appalachian				West Coast				Total
			Region				Region				Company
Proved Developed and Undeveloped Reserves:
September 30, 2016			73				28,936				29,009
Extensions and Discoveries			—				674				674
Revisions of Previous Estimates			(12	)			3,305				3,293
Production			(4	)			(2,736	)			(2,740	)
Sales of Minerals in Place			(29	)			—				(29	)
September 30, 2017			28				30,179				30,207
Proved Developed Reserves:
September 30, 2016			73				28,698				28,771
September 30, 2017			28				29,771				29,799

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
			Three Months Ended												Twelve Months Ended
			September 30,												September 30,
											Increase												Increase
			2017				2016				(Decrease)				2017				2016				(Decrease)
Firm Transportation - Affiliated			15,404				13,468				1,936				107,987				100,637				7,350
Firm Transportation - Non-Affiliated			176,380				169,247				7,133				671,395				640,238				31,157
Interruptible Transportation			727				5,079				(4,352	)			5,805				23,548				(17,743	)
			192,511				187,794				4,717				785,187				764,423				20,764
Gathering Volume - (MMcf)
			Three Months Ended												Twelve Months Ended
			September 30,												September 30,
											Increase												Increase
			2017				2016				(Decrease)				2017				2016				(Decrease)
Gathered Volume - Affiliated			44,915				42,600				2,315				194,921				161,955				32,966
Utility Throughput - (MMcf)
			Three Months Ended												Twelve Months Ended
			September 30,												September 30,
											Increase												Increase
			2017				2016				(Decrease)				2017				2016				(Decrease)
Retail Sales:
Residential Sales			3,576				3,143				433				52,394				49,971				2,423
Commercial Sales			555				477				78				7,927				7,247				680
Industrial Sales			50				11				39				333				244				89
			4,181				3,631				550				60,654				57,462				3,192
Off-System Sales			7				—				7				1,301				1,243				58
Transportation			10,587				11,078				(491	)			71,040				70,847				193
			14,775				14,709				66				132,995				129,552				3,443
Energy Marketing Volume
			Three Months Ended												Twelve Months Ended
			September 30,												September 30,
											Increase												Increase
			2017				2016				(Decrease)				2017				2016				(Decrease)
Natural Gas (MMcf)			5,932				6,048				(116	)			38,901				39,849				(948	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

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

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

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

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

			Three Months Ended										Twelve Months Ended
			September 30,										September 30,
			2017					2016					2017					2016
(in thousands)
Reported GAAP Earnings			$	45,577				$	37,553				$	283,482				$	(290,958	)
Depreciation, Depletion and Amortization			55,383					56,117					224,195					249,417
Interest and Other Income			(3,585		)			(4,242		)			(11,156		)			(14,055		)
Interest Expense			29,916					28,842					119,837					121,044
Income Taxes			15,487					19,091					160,682					(232,549		)
Impairment of Oil and Gas Producing Properties			—					32,756					—					948,307
Joint Development Agreement Professional Fees			—					—					—					7,855
Adjusted EBITDA			$	142,778				$	170,117				$	777,040				$	789,061
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA			$	39,049				$	46,517				$	180,328				$	199,446
Gathering Adjusted EBITDA			21,206					20,963					94,380					78,685
Total Midstream Businesses Adjusted EBITDA			60,255					67,480					274,708					278,131
Exploration and Production Adjusted EBITDA			75,303					95,157					360,979					363,830
Utility Adjusted EBITDA			11,846					10,400					151,078					148,683
Energy Marketing Adjusted EBITDA			(1,134		)			87					2,080					6,655
Corporate and All Other Adjusted EBITDA			(3,492		)			(3,007		)			(11,805		)			(8,238		)
Total Adjusted EBITDA			$	142,778				$	170,117				$	777,040				$	789,061

NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES SEGMENT ADJUSTED EBITDA
			Three Months Ended										Twelve Months Ended
			September 30,										September 30,
(in thousands)			2017					2016					2017					2016
Exploration and Production Segment
Reported GAAP Earnings			$	30,354				$	16,744				$	129,326				$	(452,842	)
Depreciation, Depletion and Amortization			27,212					27,377					112,565					139,963
Interest and Other Income			(257		)			(78		)			(707		)			(858		)
Interest Expense			13,432					13,552					53,702					55,434
Income Taxes			4,562					4,806					66,093					(334,029		)
Impairment of Oil and Gas Producing Properties			—					32,756					—					948,307
Joint Development Agreement Professional Fees			—					—					—					7,855
Adjusted EBITDA			$	75,303				$	95,157				$	360,979				$	363,830
Pipeline and Storage Segment
Reported GAAP Earnings			$	13,791				$	16,816				$	68,446				$	76,610
Depreciation, Depletion and Amortization			10,545					11,128					41,196					43,273
Interest and Other Income			(1,051		)			(825		)			(3,978		)			(4,005		)
Interest Expense			8,540					8,309					33,717					33,327
Income Taxes			7,224					11,089					40,947					50,241
Adjusted EBITDA			$	39,049				$	46,517				$	180,328				$	199,446
Gathering Segment
Reported GAAP Earnings			$	9,003				$	8,537				$	40,377				$	30,499
Depreciation, Depletion and Amortization			4,154					3,876					16,162					15,282
Interest and Other Income			(353		)			(110		)			(995		)			(302		)
Interest Expense			2,403					2,091					9,142					8,872
Income Taxes			5,999					6,569					29,694					24,334
Adjusted EBITDA			$	21,206				$	20,963				$	94,380				$	78,685
Utility Segment
Reported GAAP Earnings			$	(4,168	)			$	(1,784	)			$	46,935				$	50,960
Depreciation, Depletion and Amortization			13,080					13,107					52,582					48,618
Interest and Other Income			(830		)			(2,008		)			(1,825		)			(4,079		)
Interest Expense			7,037					5,898					28,492					27,582
Income Taxes			(3,273		)			(4,813		)			24,894					25,602
Adjusted EBITDA			$	11,846				$	10,400				$	151,078				$	148,683
Energy Marketing Segment
Reported GAAP Earnings			$	(614	)			$	231				$	1,509				$	4,348
Depreciation, Depletion and Amortization			69					70					279					278
Interest and Other Income			(172		)			(151		)			(646		)			(480		)
Interest Expense			10					13					47					49
Income Taxes			(427		)			(76		)			891					2,460
Adjusted EBITDA			$	(1,134	)			$	87				$	2,080				$	6,655
Corporate and All Other
Reported GAAP Earnings			$	(2,789	)			$	(2,991	)			$	(3,111	)			$	(533	)
Depreciation, Depletion and Amortization			323					559					1,411					2,003
Interest and Other Income			(922		)			(1,070		)			(3,005		)			(4,331		)
Interest Expense			(1,506		)			(1,021		)			(5,263		)			(4,220		)
Income Taxes			1,402					1,516					(1,837		)			(1,157		)
Adjusted EBITDA			$	(3,492	)			$	(3,007	)			$	(11,805	)			$	(8,238	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Quarter Ended September 30 (unaudited)			2017					2016
Operating Revenues			$	286,937,000				$	292,472,000
Net Income Available for Common Stock			$	45,577,000				$	37,553,000
Earnings Per Common Share
Basic			$	0.53				$	0.44
Diluted			$	0.53				$	0.44
Weighted Average Common Shares:
Used in Basic Calculation			85,512,637					85,016,408
Used in Diluted Calculation			86,238,287					85,629,858
Twelve Months Ended September 30 (unaudited)
Operating Revenues			$	1,579,881,000				$	1,452,416,000
Net Income (Loss) Available for Common Stock			$	283,482,000				$	(290,958,000	)
Earnings (Loss) Per Common Share
Basic			$	3.32				$	(3.43	)
Diluted			$	3.30				$	(3.43	)
Weighted Average Common Shares:
Used in Basic Calculation			85,364,929					84,847,993
Used in Diluted Calculation			86,021,386					84,847,993

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Source: National Fuel Gas Company