8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported): May 5, 2011

NATIONAL FUEL GAS COMPANY

(Exact name of registrant as specified in its charter)

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

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

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

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

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

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On May 5, 2011, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter and six months ended March 31, 2011. A copy of the press release is furnished as part of this Current Report as Exhibit 99.

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

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

Certain statements contained herein or in the press release furnished as part of this Current Report, including statements regarding estimated future earnings and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will” and “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There can be no assurance that the Company’s projections will in fact be achieved nor do these projections reflect any acquisitions or divestitures that may occur in the future. While the Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. Furthermore, each forward-looking statement speaks only as of the date on which it is made. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from terrorist activities, acts of war, major accidents, fires, hurricanes, other severe weather, pest infestation or other natural disasters; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, weather conditions,

shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in laws and regulations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, and exploration and production activities such as hydraulic fracturing; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; significant changes in market dynamics or competitive factors affecting the Company’s ability to retain existing customers or obtain new customers; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or cost of derivative financial instruments; changes in the price differential between similar quantities of natural gas at different geographic locations, and the effect of such changes on the demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of oil or natural gas having different quality, heating value or geographic location; changes in the projected profitability of pending or potential projects, investments or transactions; significant differences between the Company’s projected and actual capital expenditures and operating expenses; 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 derivatives, acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

Item 9.01 Financial Statements and Exhibits.

     (d) Exhibits

Exhibit 99   Press release furnished regarding earnings for the quarter and six months ended March 31, 2011

SIGNATURES

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

NATIONAL FUEL GAS COMPANY
By:	/s/ Paula M. Ciprich
	Paula M. Ciprich
	General Counsel and Secretary

Dated: May 6, 2011

EXHIBIT INDEX

Exhibit Number	Description
99	Press release furnished regarding earnings for the quarter and six months ended March 31, 2011

EX-99

Exhibit 99

	6363 Main Street/Williamsville, NY 14221
	Timothy J. Silverstein
	Investor Relations
	716-857-6987
Release Date: Immediate May 5, 2011
	David P. Bauer
	Treasurer
	716-857-7318

NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS

Williamsville, New York: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the second quarter of fiscal 2011 and for the six months ended March 31, 2011.

HIGHLIGHTS

• Earnings for the second quarter were $115.6 million, or $1.38 per share, an increase of $35.2 million, or $0.41 per share, compared to the prior year’s second quarter earnings of $80.4 million, or $0.97 per share. The increased earnings are primarily due to a $31.4 million, or $0.38 per share, gain on the sale of Horizon Power Inc’s interest in certain entities that owned landfill gas electric generation assets. Higher earnings in the Exploration and Production and Energy Marketing segments also contributed to the increase.

• Compared to the prior year’s second quarter, total production of crude oil and natural gas increased approximately 6.4 billion cubic feet equivalent (“Bcfe”), or 54.7%, to 18.2 Bcfe. Appalachian production was 10.9 Bcfe for the quarter, an increase of 7.3 Bcfe or 203.5%. Production from the Marcellus Shale was 9.0 Bcfe for the quarter. The Company’s production forecast for the entire 2011 fiscal year has been narrowed to a range between 66 and 71 Bcfe. The previous forecast range had been between 64 and 71 Bcfe.

• On April 27, 2011, Seneca Resources Corporation (“Seneca”) completed the $70 million sale of its offshore Gulf of Mexico oil and natural gas properties. The sale had an effective date of January 1, 2011. The sale proceeds were applied against Seneca’s full cost pool and reduced capitalized costs. No gain or loss resulted from the transaction.

• The Company is updating its GAAP earnings guidance range for fiscal 2011 to a range of $2.83 to $2.98 per share. The previous earnings guidance had been a range between $2.70 to $2.95 per share. This guidance assumes flat NYMEX pricing of $4.00 per Million British Thermal Units (“MMBtu”) for natural gas and $80.00 per barrel (“Bbl”) for crude oil for unhedged production for the remainder of the fiscal year.

• A conference call is scheduled for Friday, May 6, 2011, at 11 a.m. Eastern Time.

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MANAGEMENT COMMENTS

     David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas Company, stated: “With a terrific first half of the fiscal year complete, our results continue to demonstrate the financial and operational strength of our core assets. The consistent performance of the regulated businesses, combined with strong production growth within the Exploration and Production segment, more than made up for the challenging natural gas price environment.

     “Seneca’s ongoing success resulted in remarkable production growth of more than 50 percent over the prior year. In the Marcellus Shale, we crossed a milestone of 100 MMcf per day of natural gas production in March, more than doubling our daily production rate from the end of fiscal year 2010. As we move along with the testing and development of new areas and strata in the basin, we look for future production growth to exceed our initial conservative projections.

     “Also, during the quarter we announced the sale of Seneca’s Gulf of Mexico offshore properties and we completed the sale of assets from our Horizon Power, Inc. subsidiary, the last of our non-core businesses. Moving forward, we will be directing our resources and capital to our core assets and significant growth opportunities. With the ongoing build out of Appalachian pipeline infrastructure, significant production growth at Seneca, and dedication to safely and reliably serving our Utility customers, we will maintain our focus on the diversified, yet integrated business model and the value it creates for our shareholders.”

SUMMARY OF RESULTS

     National Fuel had consolidated earnings for the quarter ended March 31, 2011, of $115.6 million or $1.38 per share, compared to the prior year’s second quarter earnings of $80.4 million, or $0.97 per share, an increase of $35.2 million or $0.41 per share. (Note: all references to earnings per share are to diluted earnings per share, all amounts are stated in U.S. dollars, and all amounts used in the discussion of earnings and operating results before items impacting comparability (“Operating Results”) are after tax, unless otherwise noted.)

     Consolidated earnings for the six months ended March 31, 2011, of $174.2 million, or $2.08 per share, increased $29.2 million, or $0.32 per share, from the same period in the prior year, where earnings were $144.9 million or $1.76 per share.

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	Three Months						Six Months
	Ended March 31,						Ended March 31,
(in thousands except per share amounts)	2011			2010			2011			2010
Reported GAAP earnings	$	115,611		$	80,428		$	174,154		$	144,927
Items impacting comparability1:
Gain on sale of landfill gas electric generation investments		(31,418	)					(31,418	)
Income from discontinued operations					(554	)					(828	)
Operating Results	$	84,193		$	79,874		$	142,736		$	144,099
Reported GAAP earnings per share	$	1.38		$	0.97		$	2.08		$	1.76
Items impacting comparability1:
Gain on sale of landfill gas electric generation investments		(0.38	)					(0.38	)
Income from discontinued operations					(0.01	)					(0.01	)
Operating Results	$	1.00		$	0.96		$	1.70		$	1.75

¹ See discussion of these individual items below.

     As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s financial results when comparing the quarter and six months ended March 31, 2011, to the comparable periods in fiscal 2010. Excluding these items, Operating Results for the current quarter of $84.2 million, or $1.00 per share, increased $4.3 million, or $0.04 per share, from the prior year’s second quarter where Operating Results were $79.9 million or $0.96 per share. Excluding these items, Operating Results for the six months ended March 31, 2011, of $142.7 million, or $1.70 per share, decreased $1.4 million, or $0.05 per share, from the same period in the prior year, where Operating Results were $144.1 million or $1.75 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

     (The following discussion of earnings for each segment is summarized in a tabular form at pages 10 through 13 of this report. It may be helpful to refer to those tables while reviewing this discussion.)

Exploration and Production Segment

     The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves in California and Appalachia. Seneca completed the sale of its Gulf of Mexico assets in April 2011.

     The Exploration and Production segment’s earnings in the second quarter of fiscal 2011 of $33.3 million, or $0.40 per share, increased $5.9 million, or $0.07 per share, when compared

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with the prior year’s second quarter. The increase was mainly due to natural gas production that was 6.6 Bcf higher than the second quarter of fiscal 2010.

     Overall production of natural gas and crude oil for the current quarter of 18.2 Bcfe increased approximately 6.4 Bcfe, or 54.7 percent, compared to the prior year’s second quarter. Production increased 7.3 Bcfe, or 203.5 percent, in Appalachia due to higher production, mainly from Marcellus wells. Marcellus production was 9.0 Bcfe for the current quarter compared to 1.3 Bcfe in the second quarter of the prior year. In the Gulf of Mexico and California, production decreased approximately 20.9 percent and 3.7 percent, respectively. Both decreases were consistent with the normal decline rates expected in each region.

     Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2011, was $5.32 per thousand cubic feet (“Mcf”), a decrease of $1.22 per Mcf. Higher crude oil prices realized after hedging contributed to the increase in earnings. The weighted average crude oil price received by Seneca (after hedging) for the quarter ended March 31, 2011, was $82.28 per Bbl, an increase of $4.99 per Bbl.

     Depletion, lease operating and general and administrative (“G&A”) expenses for the current year’s second quarter increased due to the higher production activity discussed above. However, on a per unit basis, lease operating and G&A expenses were down by $0.29 per thousand cubic feet equivalent (“Mcfe”) and $0.05 per Mcfe, respectively. Depletion was unchanged from last year’s quarter.

     The Exploration and Production segment’s earnings of $60.7 million, or $0.73 per share, for the six months ended March 31, 2011, increased $3.5 million, or $0.04 per share, when compared with the six months ended March 31, 2010. The increase was primarily due to natural gas production that was 11.2 Bcf higher than the prior year’s six-month period.

     Overall production for the six months ended March 31, 2011, increased approximately 45.3 percent to 33.9 Bcfe, an increase of 10.6 Bcfe, compared to the prior year’s six-month period. Production in Appalachia increased 194.8 percent to 19.1 Bcfe mainly due to the growth in production from the Marcellus which reached 14.9 Bcfe for the six-month period. In the Gulf of Mexico and California, production decreased approximately 23.5 percent and 4.2 percent, respectively. Both decreases were consistent with the normal decline rates expected in each region.

     Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the six-month period ended March 31, 2011, was $5.30 per Mcf, a decrease of $1.12 per Mcf. Higher crude oil prices realized after hedging contributed to the increase in earnings. The weighted average crude oil price received by Seneca (after hedging) for the six-month period ended March 31, 2011, was $79.21 per Bbl, an increase of $3.35 per Bbl.

     Depletion, lease operating and G&A expenses for the six months ended March 31, 2011 increased compared to the prior year’s six-month period due to the higher production activity discussed above. However, on a per unit basis, lease operating and G&A expenses were down

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by $0.13 per Mcfe and $0.03 per Mcfe, respectively. Depletion increased $0.03 per Mcfe from last year’s six-month period.

Pipeline and Storage Segment

     The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). 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 western Pennsylvania.

     The Pipeline and Storage segment’s earnings of $11.0 million, or $0.13 per share, for the quarter ended March 31, 2011, decreased $1.5 million, or $0.02 per share, when compared with the same period in the prior fiscal year. The decrease was mostly due to increased operating expenses. Although more volumes of natural gas were transported for shippers under their firm transportation contracts, transportation revenues for both Supply Corporation and Empire were lower in the current quarter compared to the second quarter of 2010. Persistent strong Niagara/Chippawa basis prices have caused shippers to evaluate lower cost supply sources, and certain shippers have reduced their imports of natural gas from Canada. This has resulted in some contract terminations on Supply Corporation from Niagara. In order to offset these lower shipping volumes, Supply Corporation’s Northern Access expansion project and Empire’s Tioga County Extension Project have been designed to utilize that available capacity to provide producers of Marcellus gas a transportation path from the Marcellus supply basins to Canadian and other northeastern markets.

     The Pipeline and Storage segment’s earnings of $19.5 million, or $0.23 per share, for the six months ended March 31, 2011, decreased $3.3 million, or $0.05 per share, when compared with the six months ended March 31, 2010. The decrease in earnings for the current six-month period was due to higher operating expenses. Again, even though volumes shipped under customers’ firm contracts were higher, transportation revenues for both Supply Corporation and Empire were lower in the current six-month period compared to the same period in the prior fiscal year for the same reasons as described above.

Utility Segment

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

     The Utility segment’s earnings of $33.1 million, or $0.40 per share, for the quarter ended March 31, 2011, decreased $0.2 million, or less than $0.01 per share, when compared with the same period in the prior fiscal year. The positive impact on earnings of colder weather and higher customer usage in Pennsylvania was more than offset by a New York regulatory adjustment regarding the timing of collection of certain regulatory expenses. In New York, colder weather did not have a significant impact on earnings for the quarter. The impact of weather variations on earnings in New York is mitigated by that jurisdiction’s weather normalization clause. Higher property taxes in both New York and Pennsylvania and higher income taxes in Pennsylvania also reduced earnings for the current second quarter.

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     The Utility segment’s earnings of $56.1 million, or $0.67 per share, for the six months ended March 31, 2011, decreased from earnings of $56.3 million, or $0.68 per share, for the six months ended March 31, 2010. Colder weather and higher customer usage in Pennsylvania was more than offset by the impact of the New York regulatory adjustment, higher property taxes and income taxes discussed above. In addition, higher operating expenses and depreciation expense during the current six month period decreased earnings.

Energy Marketing Segment

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

     The Energy Marketing segment’s earnings for the quarter ended March 31, 2011, of $6.3 million increased $0.3 million compared to the second quarter of the prior year due to higher volumes sold to retail customers and improved average margins per Mcf. Earnings for the six months ended March 31, 2011 of $7.2 million increased $0.2 million compared to the prior year’s six-month period. The increase in earnings is due to higher volumes sold to retail customers and improved average margins per Mcf, partially offset by higher operating expenses.

Corporate and All Other

     The Corporate and All Other category includes the following active, wholly owned subsidiaries of the Company: National Fuel Gas Midstream Corporation (“Midstream”), formed to build, own and operate natural gas processing and pipeline gathering facilities in the Appalachian region; and Highland Forest Resources, Inc., a corporation that markets high quality hardwoods from Appalachian land holdings.

     Earnings in the Corporate and All Other category for the quarter ended March 31, 2011, were $32.0 million, an increase of $30.6 million compared to the prior year’s second quarter earnings of $1.4 million. The comparability of the results for the quarters ended March 31, 2011 and March 31, 2010, is impacted by the following items. In February 2011, Horizon Power, Inc. completed the sale of its interest in certain entities that owned landfill gas electric generation assets and recorded a gain of $31.4 million. On September 1, 2010, the Company completed the sale of its landfill gas operations. As a result of this transaction, the Company is presenting the landfill gas operations as discontinued operations. Earnings in the second quarter of fiscal 2010 include earnings from discontinued operations of $0.6 million.

     Excluding the items above, Operating Results in the Corporate and All Other category of $0.6 million in the current year second quarter decreased from Operating Results of $0.8 million in the prior year’s second quarter. Lower earnings from timber sales as a result of the sale of the sawmill operations and higher corporate operating expenses more than offset higher earnings from Midstream’s pipeline gathering and natural gas processing operations.

     Earnings in the Corporate and All Other category for the six months ended March 31, 2011, were $30.6 million, an increase of $29.0 million when compared to the earnings for the six

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months ended March 31, 2010, of $1.6 million. The comparability of the results for the six months ended March 31, 2011, and the prior year’s Six Month period was impacted by the $31.4 million gain on the Horizon Power Inc. sale of its landfill gas electric generations assets and $0.8 million of income from discontinued operations as a result of the sale of the Company’s landfill gas operations as described above.

     Excluding these items, Operating Results of $0.8 million for the six-month period ended March 31, 2010, compared to a loss of $0.8 million in the current year six-month period. Lower income from unconsolidated subsidiaries (due to the sale of landfill gas electric generation assets described above) and lower earnings from timber sales more than offset higher earnings from Midstream’s pipeline gathering and natural gas processing operations.

Discontinued Operations

     Earnings from discontinued operations for the quarter and six months ended March 31, 2011, decreased $0.6 million and $0.8 million, respectively. The decrease is the result of the Company’s September 1, 2010, sale of its landfill gas operations.

EARNINGS GUIDANCE

     The Company is updating its earnings guidance for fiscal 2011 to reflect actual results for the six months ended March 31, 2011. The revised GAAP earnings range is $2.83 to $2.98 per share. The previous guidance range had been $2.70 to $2.95 per share. This includes oil and gas production for fiscal 2011 for the Exploration and Production segment in a range between 66 and 71 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential, of $4.00 per MMBtu for natural gas and $80.00 per Bbl for crude oil.

EARNINGS TELECONFERENCE

     The Company will host a conference call on Friday, May 6, 2011, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 866-788-0547, and using the passcode “95290094.” For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. Eastern Time at the same website link and by phone at (toll-free) 888-286-8010 using passcode “37028042.” Both the webcast and telephonic replay will be available until the close of business on Friday, May 13, 2011.

     National Fuel is an integrated energy company with $5.2 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available on its Internet website: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

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Analyst Contact:	Timothy J. Silverstein	716-857-6987
Media Contact:	Donna L. DeCarolis	716-857-7872

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from terrorist activities, acts of war, major accidents, fires, hurricanes, other severe weather, pest infestation or other natural disasters; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in laws and regulations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, and exploration and production activities such as hydraulic fracturing; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; significant changes in market dynamics or competitive factors affecting the Company’s ability to retain existing customers or obtain new customers; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or cost of derivative financial instruments; changes in the price differential between similar quantities of natural gas at different geographic locations, and the effect of such changes on the demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of oil or natural gas having different quality, heating value or geographic location; changes in the projected profitability of pending or potential projects, investments or transactions; significant differences between the Company’s projected and actual capital expenditures and operating expenses; 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 derivatives, acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; significant

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changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2011

	Exploration &			Pipeline &						Energy		Corporate /
(Thousands of Dollars)	Production			Storage			Utility			Marketing		All Other **			Consolidated***
Second quarter 2010 GAAP earnings	$	27,383		$	12,448		$	33,273		$	5,969	$	1,355		$	80,428
Items impacting comparability:
Income from discontinued operations													(554	)		(554	)
Second quarter 2010 operating results		27,383			12,448			33,273			5,969		801			79,874
Drivers of operating results
Higher (lower) crude oil prices		2,414														2,414
Higher (lower) natural gas prices		(10,845	)													(10,845	)
Higher (lower) natural gas production		28,229														28,229
Higher (lower) crude oil production		(1,685	)													(1,685	)
Lower (higher) lease operating expenses		(2,131	)													(2,131	)
Lower (higher) depreciation / depletion		(9,160	)		(233	)							955			(8,438	)
Higher (lower) processing plant revenues		310														310
Higher (lower) transportation revenues					(731	)										(731	)
Higher (lower) gathering and processing revenues													1,385			1,385
Lower (higher) operating expenses		(2,396	)		(865	)							(291	)		(3,552	)
Lower (higher) property, franchise and other taxes		(1,325	)		(267	)										(1,592	)
Usage								1,019								1,019
Colder weather in Pennsylvania								541								541
Regulatory true-up adjustments								(1,652	)							(1,652	)
Higher (lower) margins											328		(2,205	)		(1,877	)
Higher AFUDC *					301											301
Higher (lower) interest income													(2,329	)		(2,329	)
(Higher) lower interest expense		2,490											2,411			4,901
All other / rounding		15			302			(100	)		2		(168	)		51
Second quarter 2011 operating results		33,299			10,955			33,081			6,299		559			84,193
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries													31,418			31,418
Second quarter 2011 GAAP earnings	$	33,299		$	10,955		$	33,081		$	6,299	$	31,977		$	115,611

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

Page 11

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2011

	Exploration &			Pipeline &						Energy		Corporate /
	Production			Storage			Utility			Marketing		All Other **			Consolidated***
Second quarter 2010 GAAP earnings	$	0.33		$	0.15		$	0.40		$	0.07	$	0.02		$	0.97
Items impacting comparability:
Income from discontinued operations													(0.01	)		(0.01	)
Second quarter 2010 operating results		0.33			0.15			0.40			0.07		0.01			0.96
Drivers of operating results
Higher (lower) crude oil prices		0.03														0.03
Higher (lower) natural gas prices		(0.13	)													(0.13	)
Higher (lower) natural gas production		0.34														0.34
Higher (lower) crude oil production		(0.02	)													(0.02	)
Lower (higher) lease operating expenses		(0.03	)													(0.03	)
Lower (higher) depreciation / depletion		(0.11	)		—								0.01			(0.10	)
Higher (lower) processing plant revenues		—														—
Higher (lower) transportation revenues					(0.01	)										(0.01	)
Higher (lower) gathering and processing revenues													0.02			0.02
Lower (higher) operating expenses		(0.03	)		(0.01	)							—			(0.04	)
Lower (higher) property, franchise and other taxes		(0.02	)		—											(0.02	)
Usage								0.01								0.01
Colder weather in Pennsylvania								0.01								0.01
Regulatory true-up adjustments								(0.02	)							(0.02	)
Higher (lower) margins											—		(0.03	)		(0.03	)
Higher AFUDC *					—											—
Higher (lower) interest income													(0.03	)		(0.03	)
(Higher) lower interest expense		0.03											0.03			0.06
All other / rounding		0.01			—			—			—		(0.01	)		—
Second quarter 2011 operating results		0.40			0.13			0.40			0.07		—			1.00
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries													0.38			0.38
Second quarter 2011 GAAP earnings	$	0.40		$	0.13		$	0.40		$	0.07	$	0.38		$	1.38

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

Page 12

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2011

	Exploration &			Pipeline &						Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Utility			Marketing			All Other **			Consolidated***
Six months ended March 31, 2010 GAAP earnings	$	57,163		$	22,802		$	56,286		$	7,061		$	1,615		$	144,927
Items impacting comparability:
Income from discontinued operations														(828	)		(828	)
Six months ended March 31, 2010 operating results		57,163			22,802			56,286			7,061			787			144,099
Drivers of operating results
Higher (lower) crude oil prices		3,303															3,303
Higher (lower) natural gas prices		(18,183	)														(18,183	)
Higher (lower) natural gas production		46,708															46,708
Higher (lower) crude oil production		(5,175	)														(5,175	)
Lower (higher) lease operating expenses		(5,450	)														(5,450	)
Lower (higher) depreciation / depletion		(15,501	)		(330	)		(408	)					2,060			(14,179	)
Higher (lower) processing plant revenues		855															855
Higher (lower) transportation revenues					(1,685	)											(1,685	)
Higher (lower) gathering and processing revenues														2,623			2,623
Lower (higher) operating expenses		(4,060	)		(1,833	)		(410	)		(172	)		(697	)		(7,172	)
Lower (higher) property, franchise and other taxes		(1,636	)		(332	)		(534	)								(2,502	)
Usage								1,500									1,500
Colder weather in Pennsylvania								1,010									1,010
Regulatory true-up adjustments								(1,438	)								(1,438	)
Higher (lower) income from unconsolidated subsidiaries														(1,101	)		(1,101	)
Higher (lower) margins											303			(5,104	)		(4,801	)
Higher AFUDC *					471												471
Higher (lower) interest income														(3,346	)		(3,346	)
Lower (higher) interest expense		3,595						304						3,513			7,412
(Higher) lower income tax expense		(732	)		405			(664	)								(991	)
All other / rounding		(215	)		35			425			39			494			778
Six months ended March 31, 2011 operating results		60,672			19,533			56,071			7,231			(771	)		142,736
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries														31,418			31,418
Six months ended March 31, 2011 GAAP earnings	$	60,672		$	19,533		$	56,071		$	7,231		$	30,647		$	174,154

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

Page 13

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2011

	Exploration &			Pipeline &						Energy		Corporate /
	Production			Storage			Utility			Marketing		All Other **			Consolidated***
Six months ended March 31, 2010 GAAP earnings	$	0.69		$	0.28		$	0.68		$	0.09	$	0.02		$	1.76
Items impacting comparability:
Income from discontinued operations													(0.01	)		(0.01	)
Six months ended March 31, 2010 operating results		0.69			0.28			0.68			0.09		0.01			1.75
Drivers of operating results
Higher (lower) crude oil prices		0.04														0.04
Higher (lower) natural gas prices		(0.22	)													(0.22	)
Higher (lower) natural gas production		0.56														0.56
Higher (lower) crude oil production		(0.06	)													(0.06	)
Lower (higher) lease operating expenses		(0.07	)													(0.07	)
Lower (higher) depreciation / depletion		(0.19	)		—			—					0.02			(0.17	)
Higher (lower) processing plant revenues		0.01														0.01
Higher (lower) transportation revenues					(0.02	)										(0.02	)
Higher (lower) gathering and processing revenues													0.03			0.03
Lower (higher) operating expenses		(0.05	)		(0.02	)		—			—		(0.01	)		(0.08	)
Lower (higher) property, franchise and other taxes		(0.02	)		—			(0.01	)							(0.03	)
Usage								0.02								0.02
Colder weather in Pennsylvania								0.01								0.01
Regulatory true-up adjustments								(0.02	)							(0.02	)
Higher (lower) income from unconsolidated subsidiaries													(0.01	)		(0.01	)
Higher (lower) margins											—		(0.06	)		(0.06	)
Higher AFUDC *					0.01											0.01
Higher (lower) interest income													(0.04	)		(0.04	)
Lower (higher) interest expense		0.04						—					0.04			0.08
(Higher) lower income tax expense		(0.01	)		—			(0.01	)							(0.02	)
All other / rounding		0.01			(0.02	)		—			—		—			(0.01	)
Six months ended March 31, 2011 operating results		0.73			0.23			0.67			0.09		(0.02	)		1.70
Items impacting comparability:
Gain on sale of unconsolidated subsidiaries													0.38			0.38
Six months ended March 31, 2011 GAAP earnings	$	0.73		$	0.23		$	0.67		$	0.09	$	0.36		$	2.08

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

Page 14

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	2011			2010			2011			2010
Operating Revenues	$	660,881		$	667,980		$	1,111,829		$	1,122,115
Operating Expenses:
Purchased Gas		306,595			332,923			469,633			504,213
Operation and Maintenance		116,721			116,261			214,171			210,031
Property, Franchise and Other Taxes		23,798			20,440			43,534			39,090
Depreciation, Depletion and Amortization		60,011			46,725			113,324			91,513
		507,125			516,349			840,662			844,847
Operating Income		153,756			151,631			271,167			277,268
Other Income (Expense):
Income (Loss) from Unconsolidated Subsidiaries		479			672			(621	)		1,073
Gain on Sale of Unconsolidated Subsidiaries		50,879			—			50,879			—
Other Income		1,945			1,266			2,938			1,622
Interest Income		68			326			951			1,480
Interest Expense on Long-Term Debt		(17,926	)		(22,061	)		(38,118	)		(44,124	)
Other Interest Expense		(1,454	)		(2,002	)		(2,855	)		(3,379	)
Income from Continuing Operations Before Income Taxes		187,747			129,832			284,341			233,940
Income Tax Expense		72,136			49,958			110,187			89,841
Income from Continuing Operations		115,611			79,874			174,154			144,099
Income from Discontinued Operations, Net of Tax		—			554			—			828
Net Income Available for Common Stock	$	115,611		$	80,428		$	174,154		$	144,927
Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	1.40		$	0.98		$	2.12		$	1.78
Income from Discontinued Operations		—			0.01			—			0.01
Net Income Available for Common Stock	$	1.40		$	0.99		$	2.12		$	1.79
Diluted:
Income from Continuing Operations	$	1.38		$	0.96		$	2.08		$	1.75
Income from Discontinued Operations		—			0.01			—			0.01
Net Income Available for Common Stock	$	1.38		$	0.97		$	2.08		$	1.76
Weighted Average Common Shares:
Used in Basic Calculation		82,400,851			81,175,261			82,311,162			80,866,311
Used in Diluted Calculation		83,673,977			82,569,323			83,561,775			82,347,254

Page 15

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

	March 31,			September 30,
(Thousands of Dollars)	2011			2010
ASSETS
Property, Plant and Equipment	$	6,019,453		$	5,637,498
Less — Accumulated Depreciation, Depletion and Amortization		2,285,313			2,187,269
Net Property, Plant and Equipment		3,734,140			3,450,229
Current Assets:
Cash and Temporary Cash Investments		144,767			397,171
Hedging Collateral Deposits		61,826			11,134
Receivables — Net		227,898			132,136
Unbilled Utility Revenue		48,551			20,920
Gas Stored Underground		11,927			48,584
Materials and Supplies — at average cost		31,707			24,987
Other Current Assets		58,522			115,969
Deferred Income Taxes		34,917			24,476
Total Current Assets		620,115			775,377
Other Assets:
Recoverable Future Taxes		152,017			149,712
Unamortized Debt Expense		11,547			12,550
Other Regulatory Assets		529,420			542,801
Deferred Charges		5,960			9,646
Other Investments		83,744			77,839
Investments in Unconsolidated Subsidiaries		1,443			14,828
Goodwill		5,476			5,476
Fair Value of Derivative Financial Instruments		37,708			65,184
Other		1,747			1,983
Total Other Assets		829,062			880,019
Total Assets	$	5,183,317		$	5,105,625
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized — 200,000,000 Shares; Issued and Outstanding — 82,544,193 Shares and 82,075,470 Shares, Respectively	$	82,544		$	82,075
Paid in Capital		645,961			645,619
Earnings Reinvested in the Business		1,180,531			1,063,262
Total Common Shareholders’ Equity Before Items of Other Comprehensive Loss		1,909,036			1,790,956
Accumulated Other Comprehensive Loss		(92,521	)		(44,985	)
Total Comprehensive Shareholders’ Equity		1,816,515			1,745,971
Long-Term Debt, Net of Current Portion		899,000			1,049,000
Total Capitalization		2,715,515			2,794,971
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		—			—
Current Portion of Long-Term Debt		150,000			200,000
Accounts Payable		122,911			89,677
Amounts Payable to Customers		25,475			38,109
Dividends Payable		28,478			28,316
Interest Payable on Long-Term Debt		25,512			30,512
Customer Advances		2,700			27,638
Customer Security Deposits		18,064			18,320
Other Accruals and Current Liabilities		160,363			71,592
Fair Value of Derivative Financial Instruments		70,115			20,160
Total Current and Accrued Liabilities		603,618			524,324
Deferred Credits:
Deferred Income Taxes		886,824			800,758
Taxes Refundable to Customers		69,592			69,585
Unamortized Investment Tax Credit		2,937			3,288
Cost of Removal Regulatory Liability		131,958			124,032
Other Regulatory Liabilities		88,825			89,334
Pension and Other Post-Retirement Liabilities		434,488			446,082
Asset Retirement Obligations		102,094			101,618
Other Deferred Credits		147,466			151,633
Total Deferred Credits		1,864,184			1,786,330
Commitments and Contingencies		—			—
Total Capitalization and Liabilities	$	5,183,317		$	5,105,625

Page 16

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

	Six Months Ended
	March 31,
(Thousands of Dollars)	2011			2010
Operating Activities:
Net Income Available for Common Stock	$	174,154		$	144,927
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Gain on Sale of Unconsolidated Subsidiaries		(50,879	)		—
Depreciation, Depletion and Amortization		113,324			91,846
Deferred Income Taxes		106,510			41,795
(Income) Loss from Unconsolidated Subsidiaries, Net of Cash Distributions		4,899			1,228
Excess Tax Benefits Associated with Stock-Based Compensation Awards		—			(13,437	)
Other		804			6,271
Change in:
Hedging Collateral Deposits		(50,692	)		(12,809	)
Receivables and Unbilled Utility Revenue		(123,393	)		(101,881	)
Gas Stored Underground and Materials and Supplies		30,144			37,932
Prepayments and Other Current Assets		57,447			31,318
Accounts Payable		33,234			12,178
Amounts Payable to Customers		(12,634	)		(41,442	)
Customer Advances		(24,938	)		(21,840	)
Customer Security Deposits		(256	)		1,996
Other Accruals and Current Liabilities		93,473			90,499
Other Assets		15,710			11,285
Other Liabilities		(23,685	)		(535	)
Net Cash Provided by Operating Activities	$	343,222		$	279,331
Investing Activities:
Capital Expenditures		($392,338	)		($230,530	)
Net Proceeds from Sale of Unconsolidated Subsidiaries		59,365			—
Other		(3,097	)		(115	)
Net Cash Used in Investing Activities		($336,070	)		($230,645	)
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	—		$	13,437
Reduction of Long-Term Debt		(200,000	)		—
Dividends Paid on Common Stock		(56,723	)		(54,096	)
Net Proceeds From Issuance (Repurchase) of Common Stock		(2,833	)		10,724
Net Cash Used In Financing Activities		($259,556	)		($29,935	)
Net Increase (Decrease) in Cash and Temporary Cash Investments		(252,404	)		18,751
Cash and Temporary Cash Investments at Beginning of Period		397,171			410,053
Cash and Temporary Cash Investments at March 31	$	144,767		$	428,804

Page 17

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
EXPLORATION AND PRODUCTION SEGMENT	2011			2010			Variance			2011			2010			Variance
Operating Revenues	$	137,430		$	109,158		$	28,272		$	257,598		$	215,511		$	42,087
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		12,798			8,858			3,940			23,988			17,347			6,641
Lease Operating Expense		18,966			15,688			3,278			36,315			27,932			8,383
All Other Operation and Maintenance Expense		1,900			2,149			(249	)		3,942			4,333			(391	)
Property, Franchise and Other Taxes (Lease Operating Expense)		4,690			2,652			2,038			7,520			5,004			2,516
Depreciation, Depletion and Amortization		39,984			25,891			14,093			73,652			49,803			23,849
		78,338			55,238			23,100			145,417			104,419			40,998
Operating Income		59,092			53,920			5,172			112,181			111,092			1,089
Other Income (Expense):
Interest Income		(51	)		156			(207	)		(1	)		309			(310	)
Other Interest Expense		(3,906	)		(7,885	)		3,979			(10,008	)		(15,753	)		5,745
Income Before Income Taxes		55,135			46,191			8,944			102,172			95,648			6,524
Income Tax Expense		21,836			18,808			3,028			41,500			38,485			3,015
Net Income	$	33,299		$	27,383		$	5,916		$	60,672		$	57,163		$	3,509
Net Income Per Share (Diluted)	$	0.40		$	0.33		$	0.07		$	0.73		$	0.69		$	0.04

	Three Months Ended									Six Months Ended
	March 31,									March 31,
PIPELINE AND STORAGE SEGMENT	2011			2010			Variance			2011			2010			Variance
Revenues from External Customers	$	39,669		$	40,971		$	(1,302	)	$	73,182		$	75,475		$	(2,293	)
Intersegment Revenues		20,632			20,565			67			40,514			40,822			(308	)
Total Operating Revenues		60,301			61,536			(1,235	)		113,696			116,297			(2,601	)
Operating Expenses:
Purchased Gas		8			135			(127	)		(25	)		72			(97	)
Operation and Maintenance		21,462			20,130			1,332			39,983			37,162			2,821
Property, Franchise and Other Taxes		5,397			4,988			409			10,608			10,096			512
Depreciation, Depletion and Amortization		9,242			8,883			359			18,229			17,722			507
		36,109			34,136			1,973			68,795			65,052			3,743
Operating Income		24,192			27,400			(3,208	)		44,901			51,245			(6,344	)
Other Income (Expense):
Interest Income		103			21			82			178			52			126
Other Income		449			147			302			715			245			470
Other Interest Expense		(6,505	)		(6,581	)		76			(13,082	)		(13,177	)		95
Income Before Income Taxes		18,239			20,987			(2,748	)		32,712			38,365			(5,653	)
Income Tax Expense		7,284			8,539			(1,255	)		13,179			15,563			(2,384	)
Net Income	$	10,955		$	12,448		$	(1,493	)	$	19,533		$	22,802		$	(3,269	)
Net Income Per Share (Diluted)	$	0.13		$	0.15		$	(0.02	)	$	0.23		$	0.28		$	(0.05	)

Page 18

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
UTILITY SEGMENT	2011			2010			Variance			2011			2010			Variance
Revenues from External Customers	$	361,745		$	348,593		$	13,152		$	604,587		$	580,997		$	23,590
Intersegment Revenues		6,635			6,149			486			11,205			10,662			543
Total Operating Revenues		368,380			354,742			13,638			615,792			591,659			24,133
Operating Expenses:
Purchased Gas		224,274			212,197			12,077			361,049			339,587			21,462
Operation and Maintenance		58,808			58,441			367			104,025			103,427			598
Property, Franchise and Other Taxes		12,960			12,267			693			23,901			23,002			899
Depreciation, Depletion and Amortization		10,382			10,077			305			20,623			19,997			626
		306,424			292,982			13,442			509,598			486,013			23,585
Operating Income		61,956			61,760			196			106,194			105,646			548
Other Income (Expense):
Interest Income		3			136			(133	)		447			854			(407	)
Other Income		279			243			36			596			512			84
Other Interest Expense		(8,852	)		(9,331	)		479			(17,589	)		(18,054	)		465
Income Before Income Taxes		53,386			52,808			578			89,648			88,958			690
Income Tax Expense		20,305			19,535			770			33,577			32,672			905
Net Income	$	33,081		$	33,273		$	(192	)	$	56,071		$	56,286		$	(215	)
Net Income Per Share (Diluted)	$	0.40		$	0.40		$	—		$	0.67		$	0.68		$	(0.01	)

	Three Months Ended									Six Months Ended
	March 31,									March 31,
ENERGY MARKETING SEGMENT	2011			2010			Variance			2011			2010			Variance
Operating Revenues	$	121,321		$	158,537		$	(37,216	)	$	174,973		$	230,273		$	(55,300	)
Operating Expenses:
Purchased Gas		109,445			147,165			(37,720	)		160,003			215,769			(55,766	)
Operation and Maintenance		1,582			1,543			39			3,140			2,876			264
Property, Franchise and Other Taxes		18			7			11			26			17			9
Depreciation, Depletion and Amortization		9			11			(2	)		18			21			(3	)
		111,054			148,726			(37,672	)		163,187			218,683			(55,496	)
Operating Income		10,267			9,811			456			11,786			11,590			196
Other Income (Expense):
Interest Income		26			8			18			35			14			21
Other Income		25			30			(5	)		33			46			(13	)
Other Interest Expense		(5	)		(9	)		4			(10	)		(15	)		5
Income Before Income Taxes		10,313			9,840			473			11,844			11,635			209
Income Tax Expense		4,014			3,871			143			4,613			4,574			39
Net Income	$	6,299		$	5,969		$	330		$	7,231		$	7,061		$	170
Net Income Per Share (Diluted)	$	0.07		$	0.07		$	—		$	0.09		$	0.09		$	—

Page 19

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
ALL OTHER	2011			2010			Variance			2011			2010			Variance
Revenues from External Customers	$	472		$	10,503		$	(10,031	)	$	1,021		$	19,430		$	(18,409	)
Intersegment Revenues		2,538			—			2,538			4,216			—			4,216
Total Operating Revenues		3,010			10,503			(7,493	)		5,237			19,430			(14,193	)
Operating Expenses:
Purchased Gas		—			—			—			49			—			49
Operation and Maintenance		1,129			7,088			(5,959	)		2,187			12,098			(9,911	)
Property, Franchise and Other Taxes		183			455			(272	)		400			830			(430	)
Depreciation, Depletion and Amortization		207			1,688			(1,481	)		427			3,621			(3,194	)
		1,519			9,231			(7,712	)		3,063			16,549			(13,486	)
Operating Income		1,491			1,272			219			2,174			2,881			(707	)
Other Income (Expense):
Income (Loss) from Unconsolidated Subsidiaries		479			672			(193	)		(621	)		1,073			(1,694	)
Gain on Sale of Unconsolidated Subsidiaries		50,879			—			50,879			50,879			—			50,879
Interest Income		85			28			57			150			57			93
Other Income		30			12			18			35			40			(5	)
Other Interest Expense		(550	)		(536	)		(14	)		(1,095	)		(1,071	)		(24	)
Income from Continuing Operations Before Income Taxes		52,414			1,448			50,966			51,522			2,980			48,542
Income Tax Expense		20,233			428			19,805			19,916			1,070			18,846
Income from Continuing Operations		32,181			1,020			31,161			31,606			1,910			29,696
Income from Discontinued Operations, Net of Tax		—			554			(554	)		—			828			(828	)
Net Income	$	32,181		$	1,574		$	30,607		$	31,606		$	2,738		$	28,868
Income from Continuing Operations Per Share (Diluted)	$	0.38		$	0.01		$	0.37		$	0.37		$	0.02		$	0.35
Income from Discontinued Operations, Net of Tax, Per Share (Diluted)		—			0.01			(0.01	)		—			0.01			(0.01	)
Net Income Per Share (Diluted)	$	0.38		$	0.02		$	0.36		$	0.37		$	0.03		$	0.34

Page 20

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Six Months Ended
	March 31,									March 31,
(Thousands of Dollars, except per share amounts)	2011			2010			Variance			2011			2010			Variance
CORPORATE
Revenues from External Customers	$	244		$	218		$	26		$	468		$	429		$	39
Intersegment Revenues		899			1,003			(104	)		1,927			1,542			385
Total Operating Revenues		1,143			1,221			(78	)		2,395			1,971			424
Operating Expenses:
Operation and Maintenance		3,648			3,507			141			7,010			6,667			343
Property, Franchise and Other Taxes		550			71			479			1,079			141			938
Depreciation, Depletion and Amortization		187			175			12			375			349			26
		4,385			3,753			632			8,464			7,157			1,307
Operating Loss		(3,242	)		(2,532	)		(710	)		(6,069	)		(5,186	)		(883	)
Other Income (Expense):
Interest Income		18,739			22,379			(3,640	)		39,820			45,061			(5,241	)
Other Income		1,162			834			328			1,559			779			780
Interest Expense on Long-Term Debt		(17,926	)		(22,061	)		4,135			(38,118	)		(44,124	)		6,006
Other Interest Expense		(473	)		(62	)		(411	)		(749	)		(176	)		(573	)
Loss Before Income Taxes		(1,740	)		(1,442	)		(298	)		(3,557	)		(3,646	)		89
Income Tax Benefit		(1,536	)		(1,223	)		(313	)		(2,598	)		(2,523	)		(75	)
Net Loss	$	(204	)	$	(219	)	$	15		$	(959	)	$	(1,123	)	$	164
Net Loss Per Share (Diluted)	$	—		$	—		$	—		$	(0.01	)	$	(0.01	)	$	—

	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2011			2010			Variance			2011			2010			Variance
INTERSEGMENT ELIMINATIONS
Intersegment Revenues	$	(30,704	)	$	(27,717	)	$	(2,987	)	$	(57,862	)	$	(53,026	)	$	(4,836	)
Operating Expenses:
Purchased Gas		(27,132	)		(26,574	)		(558	)		(51,443	)		(51,215	)		(228	)
Operation and Maintenance		(3,572	)		(1,143	)		(2,429	)		(6,419	)		(1,811	)		(4,608	)
		(30,704	)		(27,717	)		(2,987	)		(57,862	)		(53,026	)		(4,836	)
Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest Income		(18,837	)		(22,402	)		3,565			(39,678	)		(44,867	)		5,189
Other Interest Expense		18,837			22,402			(3,565	)		39,678			44,867			(5,189	)
Net Income	$	—		$	—		$	—		$	—		$	—		$	—
Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—

Page 21

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
	2011			2010			(Decrease)			2011			2010			(Decrease)
Capital Expenditures:
Exploration and Production	$	135,364	(1)	$	143,249	(4)	$	(7,885	)	$	315,194	(1)(2)	$	190,986	(4)(5)	$	124,208
Pipeline and Storage		30,279	(3)		8,491			21,788			39,498	(3)		15,478			24,020
Utility		14,514			13,573			941			25,435			25,525			(90	)
Energy Marketing		174			95			79			261			99			162
Total Reportable Segments		180,331			165,408			14,923			380,388			232,088			148,300
All Other		1,440			2,824			(1,384	)		2,269			3,783	(5)		(1,514	)
Corporate		4			107			(103	)		15			134			(119	)
Total Expenditures from Continuing Operations		181,775			168,339			13,436			382,672			236,005			146,667
Discontinued Operations		—			27			(27	)		—			54			(54	)
Total Capital Expenditures	$	181,775		$	168,366		$	13,409		$	382,672		$	236,059		$	146,613

(1)	Amount for the quarter and six months ended March 31, 2011 includes $43.9 million of accrued capital expenditures, the majority of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at March 31, 2011 since it represents a non-cash investing activity at that date.
(2)	Capital expenditures for the Exploration and Production segment for the six months ended March 31, 2011 exclude $55.5 million of capital expenditures, the majority of which was in the Appalachian region. This amount was accrued at September 30, 2010 and paid during the six months ended March 31, 2011. This amount was excluded from the Consolidated Statements of Cash Flows at September 30, 2010 since it represented a non-cash investing activity at that date. This amount has been included in the Consolidated Statement of Cash Flows at March 31, 2011.
(3)	Amount for the quarter and six months ended March 31, 2011 includes $2.0 million of accrued capital expenditures. This amount has been excluded from the Consolidated Statement of Cash Flows at March 31, 2011 since it represents a non-cash investing activity at that date.
(4)	Amount for the quarter and six months ended March 31, 2010 includes $15.3 million of accrued capital expenditures, the majority of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at March 31, 2010 since it represents a non-cash investing activity at that date.
(5)	Capital expenditures for the Exploration and Production segment for the six months ended March 31, 2010 exclude $9.1 million of capital expenditures, the majority of which was in the Appalachian region. Capital expenditures for All Other for the six months ended March 31, 2010 exclude $0.7 million of capital expenditures related to the construction of the Midstream Covington Gathering System. Both of these amounts were accrued at September 30, 2009 and paid during the six months ended March 31, 2010. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2009 since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2010.

DEGREE DAYS

							Percent Colder
							(Warmer) Than:
	Normal		2011		2010		Normal (1)		Last Year (1)
Three Months Ended March 31
Buffalo, NY		3,327		3,494		3,241		5.0		7.8
Erie, PA		3,142		3,312		3,163		5.4		4.7
Six Months Ended March 31
Buffalo, NY		5,587		5,826		5,487		4.3		6.2
Erie, PA		5,223		5,472		5,211		4.8		5.0

⁽¹⁾ Percents compare actual 2011 degree days to normal degree days and actual 2011 degree days to actual 2010 degree days.

Page 22

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2011		2010		(Decrease)			2011		2010		(Decrease)
Gas Production/Prices:
Production (MMcf)
Gulf Coast		2,056		2,643		(587	)		4,070		5,333		(1,263	)
West Coast		855		930		(75	)		1,790		1,926		(136	)
Appalachia		10,848		3,542		7,306			18,930		6,344		12,586
Total Production		13,759		7,115		6,644			24,790		13,603		11,187
Average Prices (Per Mcf)
Gulf Coast	$	4.87	$	6.02	$	(1.15	)	$	4.71	$	5.42	$	(0.71	)
West Coast		4.46		5.79		(1.33	)		4.18		5.19		(1.01	)
Appalachia		4.40		5.97		(1.57	)		4.24		5.57		(1.33	)
Weighted Average		4.48		5.96		(1.48	)		4.31		5.46		(1.15	)
Weighted Average after Hedging		5.32		6.54		(1.22	)		5.30		6.42		(1.12	)
Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast		92		109		(17	)		197		255		(58	)
West Coast		643		661		(18	)		1,297		1,345		(48	)
Appalachia		11		9		2			21		20		1
Total Production		746		779		(33	)		1,515		1,620		(105	)
Average Prices (Per Barrel)
Gulf Coast	$	96.12	$	89.22	$	6.90		$	89.61	$	79.81	$	9.80
West Coast		95.35		73.16		22.19			87.84		71.72		16.12
Appalachia		86.53		73.80		12.73			84.07		79.67		4.40
Weighted Average		95.31		75.41		19.90			88.01		73.09		14.92
Weighted Average after Hedging		82.28		77.29		4.99			79.21		75.86		3.35
Total Production (Mmcfe)		18,235		11,789		6,446			33,880		23,323		10,557
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)	$	0.70	$	0.75	$	(0.05	)	$	0.71	$	0.74	$	(0.03	)
Lease Operating Expense per Mcfe (1)	$	1.04	$	1.33	$	(0.29	)	$	1.07	$	1.20	$	(0.13	)
Depreciation, Depletion & Amortization per Mcfe (1)	$	2.19	$	2.20	$	(0.01	)	$	2.17	$	2.14	$	0.03

⁽¹⁾ Refer to page 17 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

Page 23

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for the Remaining Six Months of Fiscal 2011

SWAPS	Volume	Average Hedge Price
Oil	0.9 MMBBL	$70.93 / BBL
Gas	14.6 BCF	$6.05 / MCF

Hedging Summary for Fiscal 2012

SWAPS	Volume	Average Hedge Price
Oil	1.6 MMBBL	$77.03 / BBL
Gas	35.0 BCF	$5.89 / MCF

Hedging Summary for Fiscal 2013

SWAPS	Volume	Average Hedge Price
Oil	0.9 MMBBL	$86.21 / BBL
Gas	23.9 BCF	$5.67 / MCF

Hedging Summary for Fiscal 2014

SWAPS	Volume	Average Hedge Price
Oil	0.2 MMBBL	$94.90 / BBL
Gas	4.6 BCF	$5.89 / MCF

Gross Wells in Process of Drilling
Six Months Ended March 31, 2011

					East
					Marcellus			Upper		Total
	Gulf		West		Shale			Devonian		Company
Wells in Process — Beginning of Period
Exploratory		0.00		0.00		4.00			23.00		27.00
Developmental		1.00		0.00		58.00	(1)		19.00		78.00
Wells Commenced
Exploratory		0.00		1.00		4.00			0.00		5.00
Developmental		1.00		27.00		43.00			3.00		74.00
Wells Completed
Exploratory		0.00		0.00		0.00			2.00		2.00
Developmental		2.00		25.00		29.00			3.00		59.00
Wells Plugged & Abandoned
Exploratory		0.00		0.00		0.00			0.00		0.00
Developmental		0.00		1.00		0.00			0.00		1.00
Wells in Process — End of Period
Exploratory		0.00		1.00		8.00			21.00		30.00
Developmental		0.00		1.00		72.00			19.00		92.00

⁽¹⁾ Amount increased by 19 for wells overlooked in the prior year.

Net Wells in Process of Drilling
Six Months Ended March 31, 2011

					East
					Marcellus			Upper		Total
	Gulf		West		Shale			Devonian		Company
Wells in Process — Beginning of Period
Exploratory		0.00		0.00		4.00			22.00		26.00
Developmental		0.20		0.00		36.50	(2)		18.00		54.70
Wells Commenced
Exploratory		0.00		0.13		4.00			0.00		4.13
Developmental		0.20		26.31		32.16			2.60		61.27
Wells Completed
Exploratory		0.00		0.00		0.00			2.00		2.00
Developmental		0.40		24.31		22.50			2.60		49.81
Wells Plugged & Abandoned
Exploratory		0.00		0.00		0.00			0.00		0.00
Developmental		0.00		1.00		0.00			0.00		1.00
Wells in Process — End of Period
Exploratory		0.00		0.13		8.00			20.00		28.13
Developmental		0.00		1.00		46.16			18.00		65.16

⁽²⁾ Marcellus Shale net developmental wells were increased by 1.88 due to the acquisition of a joint venture partner’s working interest in seven wells, which totaled 1.88 net wells. In addition, this amount increased by 12 for wells overlooked in the prior year.

Page 24

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

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

	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2011		2010		(Decrease)			2011		2010		(Decrease)
Firm Transportation — Affiliated		46,277		43,587		2,690			78,345		73,763		4,582
Firm Transportation — Non-Affiliated		77,692		68,559		9,133			134,873		119,022		15,851
Interruptible Transportation		1,095		1,804		(709	)		1,220		2,559		(1,339	)
		125,064		113,950		11,114			214,438		195,344		19,094

Utility Throughput — (MMcf)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
					Increase						Increase
	2011		2010		(Decrease)		2011		2010		(Decrease)
Retail Sales:
Residential Sales		28,048		26,413		1,635		45,207		43,237		1,970
Commercial Sales		4,372		4,256		116		6,842		6,746		96
Industrial Sales		393		288		105		539		446		93
		32,813		30,957		1,856		52,588		50,429		2,159
Off-System Sales		3,458		2,554		904		5,321		2,910		2,411
Transportation		27,472		24,366		3,106		45,581		41,427		4,154
		63,743		57,877		5,866		103,490		94,766		8,724

Energy Marketing Volumes

	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2011		2010		(Decrease)			2011		2010		(Decrease)
Natural Gas (MMcf)		21,609		23,996		(2,387	)		32,355		38,097		(5,742	)

Page 25

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2011 EARNINGS GUIDANCE AND SENSITIVITIES

			Earnings per share sensitivity to changes
Fiscal 2011 (Diluted earnings per share guidance*)			from NYMEX prices used in guidance* ^
			$1 change per MMBtu gas				$5 change per Bbl oil
	Range		Increase		Decrease		Increase		Decrease
Consolidated Earnings	$	2.83 - $2.98		+ $0.08		- $0.08		+ $0.02		- $0.02

*

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

^

This sensitivity table is current as of May 5, 2011 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. This revenue is based upon pricing used in the Company’s earnings forecast. For its fiscal 2011 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $4 per MMBtu for natural gas and $80 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca’s production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity.

Page 26

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

	2011		2010
Quarter Ended March 31 (unaudited)
Operating Revenues	$	660,881,000	$	667,980,000
Income from Continuing Operations	$	115,611,000	$	79,874,000
Income from Discontinued Operations, Net of Tax		—		554,000
Net Income Available for Common Stock	$	115,611,000	$	80,428,000
Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	1.40	$	0.98
Income from Discontinued Operations		—		0.01
Net Income Available for Common Stock	$	1.40	$	0.99
Diluted:
Income from Continuing Operations	$	1.38	$	0.96
Income from Discontinued Operations		—		0.01
Net Income Available for Common Stock	$	1.38	$	0.97
Weighted Average Common Shares:
Used in Basic Calculation		82,400,851		81,175,261
Used in Diluted Calculation		83,673,977		82,569,323
Six Months Ended March 31 (unaudited)
Operating Revenues	$	1,111,829,000	$	1,122,115,000
Income from Continuing Operations	$	174,154,000	$	144,099,000
Income from Discontinued Operations, Net of Tax		—		828,000
Net Income Available for Common Stock	$	174,154,000	$	144,927,000
Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	2.12	$	1.78
Income from Discontinued Operations		—		0.01
Net Income Available for Common Stock	$	2.12	$	1.79
Diluted:
Income from Continuing Operations	$	2.08	$	1.75
Income from Discontinued Operations		—		0.01
Net Income Available for Common Stock	$	2.08	$	1.76
Weighted Average Common Shares:
Used in Basic Calculation		82,311,162		80,866,311
Used in Diluted Calculation		83,561,775		82,347,254
Twelve Months Ended March 31 (unaudited)
Operating Revenues	$	1,750,217,000	$	1,764,489,000
Income from Continuing Operations	$	249,189,000	$	217,103,000
Income (Loss) from Discontinued Operations, Net of Tax		5,952,000		(2,274,000	)
Net Income Available for Common Stock	$	255,141,000	$	214,829,000
Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	3.04	$	2.70
Income (Loss) from Discontinued Operations		0.07		(0.03	)
Net Income Available for Common Stock	$	3.11	$	2.67
Diluted:
Income from Continuing Operations	$	2.99	$	2.66
Income (Loss) from Discontinued Operations		0.07		(0.03	)
Net Income Available for Common Stock	$	3.06	$	2.63
Weighted Average Common Shares:
Used in Basic Calculation		82,100,883		80,380,789
Used in Diluted Calculation		83,283,900		81,749,193