National Guel Gas Company 8-K

Exhibit 99


National Fuel Gas Company		Financial News


		6363 Main Street/Williamsville, NY 14221

		Margaret M. Suto
		Investor Relations
		716-857-6987
RELEASE DATE: Immediate May 7, 2007
		Ronald J. Tanski
		Treasurer
		716-857-6981

NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS

Williamsville, New York: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced results for the quarter and six months ended March 31, 2007.

HIGHLIGHTS

•

Reported GAAP earnings per share for the quarter of $0.92 increased $0.01 per share from the prior year’s second quarter. Earnings were higher in the Utility segment, the Energy Marketing segment and the Timber segment. Lower earnings in the Exploration and Production segment and the Pipeline and Storage segment offset those increases.

•

Quarterly operating results before items impacting comparability were $0.89 per share, an increase of $0.04 from the prior year’s second quarter.

•

The Company is increasing and narrowing its GAAP guidance range for fiscal 2007 earnings. The revised earnings guidance range is now $2.25 to $2.40 per share.* It had previously been $2.15 to $2.35 per share.*

•

A conference call is scheduled for Tuesday, May 8, 2007, at 11:00 am Eastern Time.

MANAGEMENT COMMENTS

Philip C. Ackerman, Chairman and Chief Executive Officer of National Fuel Gas Company stated: “We have just had another very solid quarter. In particular, extremes of weather with weekly temperatures ranging from 46% warmer than normal to 30% colder than normal emphasized the importance of storage capacity and the talents of our employees in meeting customer needs. An increase in gas production and an increase in realized oil prices were offset by a higher effective tax rate, but our Exploration and Production segment continues to make progress with increasing emphasis on Appalachia, the hiring of a new exploration and production manager and the possible sale of our Canadian operations.”

-more-

Page 2.

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended March 31, 2007 of $78.4 million, a decrease of $0.2 million from the prior year’s second quarter of $78.6 million. Consolidated earnings per share of $0.92 increased $0.01 due to a lower number of weighted average shares outstanding compared to the prior year. The decrease in weighted average shares outstanding is a result of the Company’s share repurchase program (note: all references to earnings per share are to diluted earnings per share and all amounts are stated in U.S. dollars).

Consolidated earnings for the six months ended March 31, 2007 of $133.0 million or $1.57 per share decreased $3.0 million or $0.01 per share from the prior year’s earnings. The Company’s consolidated earnings per share would have been $0.02 per share lower if not for the fact that the weighted average shares outstanding have decreased compared to the prior year, mostly due to the share repurchase program.


	Three Months						Six Months
	Ended March 31,						Ended March 31,
(in thousands except per share amounts)	2007			2006			2007			2006
Reported GAAP earnings	$	78,447		$	78,594		$	132,967		$	136,013
Items impacting comparability:
Resolution of purchased gas contingency¹		(2,344	)					(2,344	)
Discontinuance of hedge accounting¹								(1,888	)
Income tax adjustment¹					(5,080	)					(5,080	)
Out-of-period symmetrical sharing adjustment¹											(2,551	)

Operating results	$	76,103		$	73,514		$	128,735		$	128,382


Reported GAAP earnings per share	$	0.92		$	0.91		$	1.57		$	1.58
Items impacting comparability:
Resolution of purchased gas contingency¹		(0.03	)					(0.03	)
Discontinuance of hedge accounting¹								(0.02	)
Income tax adjustment¹					(0.06	)					(0.06	)
Out-of-period symmetrical sharing adjustment¹											(0.03	)

Operating results	$	0.89		$	0.85		$	1.52		$	1.49


¹		See discussion of these items below.

As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s operating results when comparing the second quarter and six months ended March 31, 2007 to the comparable periods in fiscal 2006. Excluding these items, operating results for the current second quarter of $76.1 million or $0.89 per share increased $2.6 million or $0.04 per share. Excluding these items, operating results for the six months ended March 31, 2007 of $128.7 million or $1.52 per share increased $0.4 million or $0.03 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

-more-

Page 3.

DISCUSSION OF RESULTS BY SEGMENT

(The following discussion of the earnings of each segment is summarized in a tabular form at pages 9 through 12 of this report. It may be helpful to refer to those tables while reviewing this discussion.)

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania. The Utility segment’s earnings of approximately $33.4 million or $0.39 per share, for the quarter ended March 31, 2007 increased $4.8 million or $0.06 per share compared to the prior year’s second quarter. In the New York division, earnings decreased $1.3 million mainly due to higher operating expenses. In the Pennsylvania division, operating results increased $6.1 million due to the impact of weather that was 16.5 percent colder than the prior year and the increase in base rates taking effect early in this quarter. On January 1, 2007, Distribution implemented the Settlement Agreement approved by the Pennsylvania Public Utility Commission, which among other things provided for a $14.3 million (before tax) annual base rate increase. A lower effective tax rate also contributed to the increase in this segment’s quarterly earnings.

The Utility segment’s earnings of $50.6 million or $0.60 per share for the six months ended March 31, 2007 increased $0.2 million compared to the six months ended March 31, 2006. Earnings in Distribution’s New York Division for the six months ended March 31, 2007 of $35.1 million decreased $5.6 million compared to the prior year. The comparability of the six month results is impacted by a $2.6 million positive out-of-period adjustment recorded in the first quarter of fiscal 2006 to correct Distribution’s calculation of the symmetrical sharing component of New York’s gas adjustment rate. Excluding this item, operating results decreased $3.1 million or $0.04 per share. This decrease is mainly due to higher bad debt and other operating expenses and higher property taxes.

For the six months ended March 31, 2007, earnings in Distribution’s Pennsylvania Division of $15.5 million or $0.18 per share, increased $5.8 million, or $0.07 per share, compared to the prior year. Earnings increased primarily due to the impact of weather that was 5.8 percent colder than the prior year, the annual $14.3 million (before taxes) increase in base rates taking effect on January 1, 2007 and a lower effective tax rate. Partially offsetting the increase was higher intercompany interest expense.

Pipeline and Storage Segment

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

-more-

Page 4.

The Pipeline and Storage segment’s earnings of $13.9 million, or $0.16 per share, for the quarter ended March 31, 2007, decreased $3.0 million, or $0.04 per share, when compared with the same period in the prior fiscal year. The decrease is primarily due to lower efficiency gas revenue resulting from lower retained volumes and lower natural gas prices compared to the prior year’s quarter. The lower volumes of efficiency gas are part of a FERC approved settlement of a complaint filed by various parties against Supply Corporation under Sections 5(a) and 13 of the Natural Gas Act (the FERC settlement) effective December 1, 2006. The FERC settlement also lowered Supply Corporation’s depreciation rates, which resulted in lower depreciation expense for the quarter. While the settlement increased Supply Corporation’s expense for postretirement benefits, this increase was substantially offset by decreases in the depreciation expense and other operating expenses.

Earnings of $27.6 million, or $0.33 per share, for the six months ended March 31, 2007, decreased $5.1 million, or $0.05 per share, when compared with the six months ended March 31, 2006. The comparability of the results for the six months ended March 31, 2007 is impacted by a $1.9 million gain associated with the prepayment in the first quarter of 2007 of the project financing debt for the Empire State Pipeline. Upon the payment of that debt, the corresponding interest rate collar no longer qualified for hedge accounting, and gains and losses could no longer be deferred. Excluding that gain, operating results decreased $7.0 million for the six months ended March 31, 2007 mainly due to lower efficiency gas revenue resulting from both lower natural gas prices and lower retained volumes due to the FERC settlement discussed above. Higher throughput realized in the first quarter of the prior year caused by the hurricanes in the fall of 2005 did not recur this year. An increase in postretirement benefits expense, also due to the FERC settlement, and higher intercompany interest expense contributed to the decline in earnings. The decrease was partially offset by lower depreciation expense, resulting from the FERC settlement, and lower other operating expenses.

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and purchases natural gas and oil reserves in California, in the Appalachian region, in the Gulf Coast region of Texas, Louisiana and Alabama, and in the western provinces of Canada.

The Exploration and Production segment’s earnings in the second quarter of fiscal 2007 decreased $6.0 million or $0.07 per share to $19.8 million or $0.23 per share, when compared with the same period in the prior fiscal year. The comparability of the quarterly results is impacted by a positive tax adjustment of $5.1 million recorded in the second quarter of fiscal 2006. This benefit to earnings resulted from an adjustment to a deferred income tax balance. Under generally accepted accounting principles, a company may recognize the benefit of certain expected future income tax deductions as a deferred tax asset only if it anticipates sufficient future taxable income to utilize those deductions. As a result of changing circumstances, Seneca increased its forecast of future taxable income in the Canadian division and, consequently, recorded a deferred tax asset for certain costs related to capital expenditures that it now expects to deduct on future income tax returns. Excluding this item, operating results in the Exploration and Production segment decreased $1.0 million or $0.01 per share. The decrease was mainly due to a higher effective tax rate as a result of higher state income taxes. Partially offsetting this

-more-

Page 5.

decrease was a 19.3 percent increase in oil prices realized after hedging that more than offset a drop in gas prices realized after hedging of 7.0 percent. For the quarter ended March 31, 2007, the weighted average oil price received by Seneca (after hedging) was $48.09/barrel (“Bbl”), an increase of $7.79/Bbl from the prior year’s quarter. This increase in the weighted average oil price was mainly due to the expiration of older hedges. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2007 was $6.87/thousand cubic feet (“Mcf”), a decrease of $0.52/Mcf from the prior year’s quarter. Overall production for the quarter was 12.2 Bcfe, an increase of 0.1 Bcfe over the prior year’s quarter. An increase in natural gas production more than offset a drop in crude oil production.

The Exploration and Production segment’s earnings of $40.5 million, or $0.48 per share, for the six months ended March 31, 2007 decreased $2.8 million, or $0.02 per share, when compared with the six months ended March 31, 2006. The comparability of the six month results is impacted by a positive tax adjustment recorded in the second quarter of fiscal 2006 as described above. Excluding this item, operating results for the six months ended March 31, 2007 in the Exploration and Production segment increased $2.3 million, or $0.04 per share, from the prior year. This increase is mainly due to a nearly 1.0 Bcfe increase in production. A minor drop in oil production was more than offset by an increase in gas production while the drop in gas prices realized after hedging was more than offset by the increase in oil prices realized after hedging. For the six months ended March 31, 2007, the weighted average oil price received by Seneca (after hedging) was $45.90/Bbl, an increase of $9.20/Bbl from the prior year. This increase in the weighted average oil price was mainly due to the expiration of older hedges. The weighted average natural gas price received by Seneca (after hedging) was $6.90/Mcf, a decrease of $0.98/Mcf from the prior year. In addition a higher effective tax rate contributed to this decline.

Energy Marketing

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

The Energy Marketing segment’s earnings for the quarter ended March 31, 2007 of $6.7 million or $0.08 per share increased $2.8 million or $0.04 per share compared to the second quarter of last year. The comparability of the quarterly results is impacted by a $2.3 million reversal of an accrual for purchased gas expense for which a contingency was resolved during the quarter. Excluding this item earnings for the quarter increased $0.5 million primarily due to a 15 percent increase in sales throughput during the quarter.

Earnings for the six months ended March 31, 2007 in the Energy Marketing segment of $7.2 million, or $0.08 per share, increased $2.3 million, or $0.02 per share. The comparability of the quarterly results is impacted by a $2.3 million reversal of an accrual for purchased gas expense noted above. Excluding this item earnings for the six months ended March 31, 2007 were flat compared to the prior year.

Timber Segment

-more-

Page 6

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

The Timber segment’s earnings for the quarter ended March 31, 2007 of $3.2 million or $0.04 per share increased $1.0 million or $0.01 per share from the prior year’s second quarter. Favorable weather conditions facilitated the harvesting of both veneer and saw logs during the quarter. Although the overall volume of log and lumber sales was down, most of the current quarter’s harvest was from low or no basis Company-owned property thus resulting in an increase in gross margins from the prior year’s quarter.

Earnings for the six months ended March 31, 2007 of $3.4 million decreased $0.3 million from the prior year’s earnings. The decrease is due to unfavorable weather conditions in the first quarter that hindered the harvesting of both veneer and saw logs. This resulted in lower sales of both logs and lumber for the six months ended March 31, 2007. Harvesting from Company-owned property resulted in improved margins in the second quarter and offset some of the decline in earnings experienced in the first quarter.

Corporate and All Other

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

Earnings in the Corporate and All Other category for the quarter ended March 31, 2007 were $1.4 million, an increase of $0.3 million when compared to the prior year’s second quarter earnings of $1.1 million. The increase is due to higher earnings in Horizon LFG, Inc. and higher intercompany interest income partially offset by higher operating costs and higher interest expense.

Earnings in the Corporate and All Other category for the six months ended March 31, 2007 were $3.6 million, an increase of $2.6 million when compared to the prior year’s earnings. The increase is mainly due to higher earnings in Horizon LFG, Inc. and higher intercompany interest income partially offset by higher operating costs and higher interest expense.

EARNINGS GUIDANCE

The Company is increasing, and narrowing, its guidance range for fiscal 2007 earnings. The revised earnings guidance range is now $2.25 to $2.40 per share.* It had previously been $2.15 to $2.35 per share.* The narrowing of the range is possible because the most sensitivity to earnings variance in the Utility segment typically occurs during the first two fiscal quarters, which are now completed. The increase in the upper end of the guidance range is made possible primarily due to the certainty of pricing on planned gas sales in the Pipeline and Storage

-more-

Page 7.

segment, which are now hedged. This guidance is still based on the September 21, 2006 commodity pricing incorporated in the Company’s original guidance. To the extent that actual pricing during the remainder of the fiscal year varies from those September 21, 2006 prices, the fiscal year earnings will be affected as detailed in the earnings sensitivity table on page 24 of this release.*

EARNINGS TELECONFERENCE

The Company will host a conference call on Tuesday, May 8, 2007, at 11 a.m. (Eastern Standard Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit National Fuel’s Web site at nationalfuelgas.com and click on the “For Investors” link at the top of the homepage. For those without Internet access, access is also provided by dialing (toll-free) 1-800-798-2796, and using the passcode “74463473.” For those unable to listen to the live conference call, a replay will be available approximately one hour after the conclusion of the call at the same Web site link and by phone at (toll free) 888-286-8010 using passcode “99121557.” Both the webcast and telephonic replay will be available until the close of business on Tuesday, May 15, 2007.

National Fuel is an integrated energy company with $4.0 billion in assets comprised of the following five operating segments: Utility, Pipeline and Storage, Exploration and Production, Energy Marketing, and Timber. Additional information about National Fuel is available on its Internet Web site: nationalfuelgas.com or through its investor information service at 1-800-334-2188.


Analyst Contact:		Margaret M. Suto (716) 857-6987
Media Contact:		Julie Coppola Cox (716) 857-7079


*		- Certain statements contained herein, including those which are designated with an asterisk (“*”) and those which use words such as “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations; changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents; changes in demographic patterns and weather conditions, including the occurrence of severe weather, such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment or valuation of derivative financial instruments or the Company’s natural gas and oil reserves; impairments under the Securities and Exchange Commission’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans, including changes in the plans of the sponsors of the proposed Millennium Pipeline with respect to that

-more-

Page 8.

project, and the ability to obtain necessary environmental permits; the nature and projected profitability of pending and potential projects and other investments; occurrences affecting the Company’s ability to obtain funds from operations or from issuances of debt or equity securities to finance needed capital expenditures and other investments, including any downgrades in the Company’s credit ratings; uncertainty of oil and gas reserve estimates; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves; significant changes from expectations in the Company’s actual production levels for natural gas or oil; regarding foreign operations, changes in trade and monetary policies, inflation and exchange rates, taxes, operating conditions, laws and regulations related to foreign operations, and political and governmental changes; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company; changes in actuarial assumptions and the return on assets with respect to the Company’s retirement plan and post retirement benefit plans; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide post retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

-more-

Page 9

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2007


				Pipeline &						Energy						Corporate /
(Thousands of Dollars)	Utility			Storage			E&P			Marketing			Timber			All Other			Consolidated

Second quarter 2006 GAAP earnings	$	28,654		$	16,892		$	25,845		$	3,877		$	2,242		$	1,084		$	78,594
Items impacting comparability:
Income tax adjustment								(5,080	)											(5,080	)

Second quarter 2006 operating results		28,654			16,892			20,765			3,877			2,242			1,084			73,514

Drivers of operating results
Colder weather in Pennsylvania		1,843																		1,843
Base rate increase in Pennsylvania		3,034																		3,034

Lower efficiency gas revenues					(3,170	)														(3,170	)
Higher operating costs		(1,719	)		(516	)											(542	)		(2,777	)
Lower depreciation / depletion					1,048									484						1,532

Higher crude oil prices								4,380												4,380
Lower natural gas prices								(2,369	)											(2,369	)
Higher natural gas production								1,518												1,518
Lower crude oil production								(914	)											(914	)
Lower (higher) effective tax rate		1,301						(3,829	)											(2,528	)

Higher margins											752			629			274			1,655

Higher interest income (expense)					(900	)											1,038			138

All other / rounding		331			582			250			(267	)		(155	)		(494	)		247


Second quarter 2007 operating results		33,444			13,936			19,801			4,362			3,200			1,360			76,103
Items impacting comparability:
Resolution of a purchased gas contingency											2,344									2,344

Second quarter 2007 GAAP earnings	$	33,444		$	13,936		$	19,801		$	6,706		$	3,200		$	1,360		$	78,447

Page 10

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2007


				Pipeline &						Energy				Corporate /
	Utility			Storage			E&P			Marketing		Timber		All Other			Consolidated

Second quarter 2006 GAAP earnings	$	0.33		$	0.20		$	0.30		$	0.04	$	0.03	$	0.01		$	0.91
Items impacting comparability:
Income tax adjustment								(0.06	)									(0.06	)

Second quarter 2006 operating results		0.33			0.20			0.24			0.04		0.03		0.01			0.85

Drivers of operating results
Colder weather in Pennsylvania		0.02																0.02
Base rate increase in Pennsylvania		0.04																0.04

Lower efficiency gas revenues					(0.04	)												(0.04	)
Higher operating costs		(0.02	)		(0.01	)									(0.01	)		(0.04	)
Lower depreciation / depletion					0.01								—					0.01

Higher crude oil prices								0.05										0.05
Lower natural gas prices								(0.03	)									(0.03	)
Higher natural gas production								0.02										0.02
Lower crude oil production								(0.01	)									(0.01	)
Lower (higher) effective tax rate		0.02						(0.04	)									(0.02	)

Higher margins											0.01		0.01		—			0.02

Higher interest income (expense)					(0.01	)									0.01			—

All other / rounding		—			0.01			—			—		—		0.01			0.02


Second quarter 2007 operating results		0.39			0.16			0.23			0.05		0.04		0.02			0.89
Items impacting comparability:
Resolution of a purchased gas contingency											0.03							0.03

Second quarter 2007 GAAP earnings	$	0.39		$	0.16		$	0.23		$	0.08	$	0.04	$	0.02		$	0.92

Page 11

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2007


				Pipeline &						Energy						Corporate /
(Thousands of Dollars)	Utility			Storage			E&P			Marketing			Timber			All Other			Consolidated

Six months ended March 31, 2006 GAAP earnings	$	50,407		$	32,742		$	43,280		$	4,864		$	3,706		$	1,014		$	136,013
Items impacting comparability:
Out-of-period adjustment to symmetrical sharing		(2,551	)																	(2,551	)
Income tax adjustment								(5,080	)											(5,080	)

Six months ended March 31, 2006 operating results		47,856			32,742			38,200			4,864			3,706			1,014			128,382

Drivers of operating results
Colder weather in Pennsylvania		2,111																		2,111
Base rate increase in Pennsylvania		3,034																		3,034
Higher operating costs		(2,400	)														(421	)		(2,821	)
Higher property taxes		(554	)																	(554	)

Lower transportation and storage revenues					(1,025	)														(1,025	)
Lower efficiency gas revenues					(5,823	)														(5,823	)
Lower depreciation / depletion					977									902						1,879

Higher crude oil prices								10,412												10,412
Lower natural gas prices								(8,784	)											(8,784	)
Higher natural gas production								6,397												6,397
Lower crude oil production								(1,137	)											(1,137	)
Lower (higher) effective tax rate		1,447						(4,090	)											(2,643	)

Higher (lower) margins											303			(1,035	)		727			(5	)

Higher interest income (expense)		(677	)		(2,030	)											2,017			(690	)

All other / rounding		(199	)		895			(475	)		(313	)		(156	)		250			2


Six months ended March 31, 2007 operating results		50,618			25,736			40,523			4,854			3,417			3,587			128,735
Items impacting comparability:
Resolution of a purchased gas contingency											2,344									2,344
Discontinuance of hedge accounting					1,888															1,888

Six months ended March 31, 2007 GAAP earnings	$	50,618		$	27,624		$	40,523		$	7,198		$	3,417		$	3,587		$	132,967

Page 12

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2007


				Pipeline &						Energy						Corporate /
	Utility			Storage			E&P			Marketing			Timber			All Other			Consolidated

Six months ended March 31, 2006 GAAP earnings	$	0.58		$	0.38		$	0.50		$	0.06		$	0.04		$	0.02		$	1.58
Items impacting comparability:
Out-of-period adjustment to symmetrical sharing		(0.03	)																	(0.03	)
Income tax adjustment								(0.06	)											(0.06	)

Six months ended March 31, 2006 operating results		0.55			0.38			0.44			0.06			0.04			0.02			1.49

Drivers of operating results
Colder weather in Pennsylvania		0.02																		0.02
Base rate increase in Pennsylvania		0.04																		0.04
Higher operating costs		(0.03	)														—			(0.03	)
Higher property taxes		(0.01	)																	(0.01	)

Lower transportation and storage revenues					(0.01	)														(0.01	)
Lower efficiency gas revenues					(0.07	)														(0.07	)
Lower depreciation / depletion					0.01									0.01						0.02

Higher crude oil prices								0.12												0.12
Lower natural gas prices								(0.10	)											(0.10	)
Higher natural gas production								0.07												0.07
Lower crude oil production								(0.01	)											(0.01	)
Lower (higher) effective tax rate		0.02						(0.05	)											(0.03	)

Higher (lower) margins											—			(0.01	)		0.01			—

Higher interest income (expense)		(0.01	)		(0.02	)											0.02			(0.01	)

All other / rounding / impact of lower shares outstanding		0.02			0.02			0.01			(0.01	)		—			(0.01	)		0.03


Six months ended March 31, 2007 operating results		0.60			0.31			0.48			0.05			0.04			0.04			1.52
Items impacting comparability:
Resolution of a purchased gas contingency											0.03									0.03
Discontinuance of hedge accounting					0.02															0.02

Six months ended March 31, 2007 GAAP earnings	$	0.60		$	0.33		$	0.48		$	0.08		$	0.04		$	0.04		$	1.57

Page 13

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES


	Three Months Ended						Six Months Ended
	March 31,						March 31,
	(Unaudited)						(Unaudited)
(Thousands of Dollars, except per share amounts)	2007			2006			2007			2006
SUMMARY OF OPERATIONS
Operating Revenues	$	812,156		$	890,981		$	1,316,396		$	1,601,737


Operating Expenses:
Purchased Gas		476,904			566,540			719,843			1,003,317
Operation and Maintenance		125,539			121,076			224,913			224,704
Property, Franchise and Other Taxes		20,233			20,120			37,345			37,302
Depreciation, Depletion and Amortization		42,061			44,278			84,886			87,324

		664,737			752,014			1,066,987			1,352,647

Operating Income		147,419			138,967			249,409			249,090

Other Income (Expense):
Income from Unconsolidated Subsidiaries		942			720			2,173			1,985
Interest Income		885			965			2,248			2,098
Other Income		2,526			248			3,241			989
Interest Expense on Long-Term Debt		(17,888	)		(18,149	)		(33,931	)		(36,367	)
Other Interest Expense		(1,516	)		(1,465	)		(3,366	)		(3,240	)


Income Before Income Taxes		132,368			121,286			219,774			214,555

Income Tax Expense		53,921			42,692			86,807			78,542


Net Income Available for Common Stock	$	78,447		$	78,594		$	132,967		$	136,013


Earnings Per Common Share:
Basic	$	0.95		$	0.93		$	1.61		$	1.61

Diluted	$	0.92		$	0.91		$	1.57		$	1.58


Weighted Average Common Shares:
Used in Basic Calculation		82,895,087			84,346,733			82,786,027			84,385,140

Used in Diluted Calculation		85,033,127			86,253,597			84,891,742			86,256,515

Page 14

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


	March 31,		September 30,
(Thousands of Dollars)	2007		2006

ASSETS
Property, Plant and Equipment	$	4,820,700	$	4,703,040
Less — Accumulated Depreciation, Depletion and Amortization		1,893,449		1,825,314

Net Property, Plant and Equipment		2,927,251		2,877,726


Current Assets:
Cash and Temporary Cash Investments		121,809		69,611
Hedging Collateral Deposits		2,034		19,676
Receivables — Net		335,666		144,254
Unbilled Utility Revenue		58,850		25,538
Gas Stored Underground		17,021		59,461
Materials and Supplies — at average cost		31,853		36,693
Unrecovered Purchased Gas Costs		13,962		12,970
Prepaid Pension and Post-Retirement Benefit Costs		68,483		64,125
Other Current Assets		30,700		63,723
Deferred Income Taxes		23,951		23,402

Total Current Assets		704,329		519,453


Other Assets:
Recoverable Future Taxes		79,177		79,511
Unamortized Debt Expense		14,482		15,492
Other Regulatory Assets		85,427		76,917
Deferred Charges		5,234		3,558
Other Investments		80,866		88,414
Investments in Unconsolidated Subsidiaries		15,850		11,590
Goodwill		5,476		5,476
Intangible Assets		30,423		31,498
Fair Value of Derivative Financial Instruments		1,866		11,305
Deferred Income Taxes		4,627		9,003
Other		6,010		4,388

Total Other Assets		329,438		337,152

Total Assets	$	3,961,018	$	3,734,331


CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 83,132,149 Shares and 83,402,670 Shares, Respectively	$	83,132	$	83,403
Paid in Capital		565,809		543,730
Earnings Reinvested in the Business		834,902		786,013

Total Common Shareholder Equity Before Items of Other Comprehensive Income		1,483,843		1,413,146
Accumulated Other Comprehensive Income		21,733		30,416

Total Comprehensive Shareholders’ Equity		1,505,576		1,443,562
Long-Term Debt, Net of Current Portion		999,000		1,095,675

Total Capitalization		2,504,576		2,539,237


Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		—		—
Current Portion of Long-Term Debt		96,393		22,925
Accounts Payable		166,990		133,034
Amounts Payable to Customers		10,596		23,935
Dividends Payable		24,927		25,008
Interest Payable on Long-Term Debt		18,419		18,420
Other Accruals and Current Liabilities		176,307		27,040
Fair Value of Derivative Financial Instruments		32,122		39,983

Total Current and Accrued Liabilities		525,754		290,345


Deferred Credits:
Deferred Income Taxes		556,115		544,502
Taxes Refundable to Customers		10,433		10,426
Unamortized Investment Tax Credit		5,743		6,094
Cost of Removal Regulatory Liability		87,986		85,076
Other Regulatory Liabilities		70,842		75,456
Post-Retirement Liabilities		26,953		32,918
Asset Retirement Obligations		79,609		77,392
Other Deferred Credits		93,007		72,885

Total Deferred Credits		930,688		904,749

Commitments and Contingencies		—		—

Total Capitalization and Liabilities	$	3,961,018	$	3,734,331

Page 15

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


	Six Months Ended
	March 31,
(Thousands of Dollars)	2007			2006

Operating Activities:
Net Income Available for Common Stock	$	132,967		$	136,013
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		84,886			87,324
Deferred Income Taxes		21,803			(1,435	)
Income from Unconsolidated Subsidiaries, Net of Cash Distributions		(960	)		1,166
Excess Tax Benefits Associated with Stock-Based Compensation Awards		(13,689	)		(6,515	)
Other		3,818			(5,297	)
Change in:
Hedging Collateral Deposits		17,642			60,894
Receivables and Unbilled Utility Revenue		(225,511	)		(249,466	)
Gas Stored Underground and Materials and Supplies		47,243			33,486
Unrecovered Purchased Gas Costs		(992	)		14,817
Prepayments and Other Current Assets		28,659			24,372
Accounts Payable		34,417			(9,951	)
Amounts Payable to Customers		(13,339	)		11,492
Other Accruals and Current Liabilities		163,928			139,020
Other Assets		(3,765	)		(11,837	)
Other Liabilities		(2,434	)		19,107

Net Cash Provided by Operating Activities	$	274,673		$	243,190


Investing Activities:
Capital Expenditures	$	(132,313	)	$	(134,961	)
Investment in Partnership		(3,300	)		—
Net Proceeds from Sale of Oil and Gas Producing Properties		2,330			4
Other		(339	)		(1,396	)

Net Cash Used in Investing Activities	$	(133,622	)	$	(136,353	)


Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	13,689		$	6,515
Shares Repurchased under Repurchase Plan		(43,344	)		(26,577	)
Reduction of Long-Term Debt		(23,207	)		(4,529	)
Dividends Paid on Common Stock		(49,808	)		(48,933	)
Proceeds From Issuance of Common Stock		14,604			7,164

Net Cash Used In Financing Activities	$	(88,066	)	$	(66,360	)

Effect of Exchange Rates on Cash		(787	)		15

Net Increase in Cash and Temporary Cash Investments	$	52,198		$	40,492
Cash and Temporary Cash Investments at Beginning of Period		69,611			57,607

Cash and Temporary Cash Investments at March 31	$	121,809		$	98,099

Page 16

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)	2007			2006			Variance			2007			2006			Variance

UTILITY SEGMENT
Revenues from External Customers	$	501,473		$	536,235		$	(34,762	)	$	790,256		$	967,714		$	(177,458	)
Intersegment Revenues		5,941			5,681			260			9,970			9,803			167

Total Operating Revenues		507,414			541,916			(34,502	)		800,226			977,517			(177,291	)


Operating Expenses:
Purchased Gas		352,864			394,803			(41,939	)		539,225			715,360			(176,135	)
Operation and Maintenance		67,448			65,496			1,952			118,215			117,209			1,006
Property, Franchise and Other Taxes		14,107			14,259			(152	)		25,298			25,773			(475	)
Depreciation, Depletion and Amortization		10,321			10,027			294			20,100			20,004			96

		444,740			484,585			(39,845	)		702,838			878,346			(175,508	)


Operating Income		62,674			57,331			5,343			97,388			99,171			(1,783	)

Other Income (Expense):
Interest Income		177			179			(2	)		462			380			82
Other Income		368			192			176			653			404			249
Other Interest Expense		(7,269	)		(6,880	)		(389	)		(14,646	)		(13,603	)		(1,043	)


Income Before Income Taxes		55,950			50,822			5,128			83,857			86,352			(2,495	)
Income Tax Expense		22,506			22,168			338			33,239			35,945			(2,706	)

Net Income	$	33,444		$	28,654		$	4,790		$	50,618		$	50,407		$	211


Net Income Per Share (Diluted)	$	0.39		$	0.33		$	0.06		$	0.60		$	0.58		$	0.02


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2007			2006			Variance			2007			2006			Variance

PIPELINE AND STORAGE SEGMENT
Revenues from External Customers	$	34,952		$	39,346		$	(4,394	)	$	64,761		$	74,085		$	(9,324	)
Intersegment Revenues		20,884			19,711			1,173			41,252			41,006			246

Total Operating Revenues		55,836			59,057			(3,221	)		106,013			115,091			(9,078	)


Operating Expenses:
Purchased Gas		2			78			(76	)		(11	)		62			(73	)
Operation and Maintenance		17,744			16,949			795			32,647			32,265			382
Property, Franchise and Other Taxes		4,335			4,010			325			8,613			7,966			647
Depreciation, Depletion and Amortization		7,563			9,176			(1,613	)		16,855			18,359			(1,504	)

		29,644			30,213			(569	)		58,104			58,652			(548	)


Operating Income		26,192			28,844			(2,652	)		47,909			56,439			(8,530	)

Other Income (Expense):
Interest Income		39			144			(105	)		123			196			(73	)
Other Income		80			60			20			264			268			(4	)
Interest Expense on Long-Term Debt		(10	)		(274	)		264			1,829			(592	)		2,421
Other Interest Expense		(2,741	)		(1,093	)		(1,648	)		(5,028	)		(2,389	)		(2,639	)


Income Before Income Taxes		23,560			27,681			(4,121	)		45,097			53,922			(8,825	)
Income Tax Expense		9,624			10,789			(1,165	)		17,473			21,180			(3,707	)

Net Income	$	13,936		$	16,892		$	(2,956	)	$	27,624		$	32,742		$	(5,118	)


Net Income Per Share (Diluted)	$	0.16		$	0.20		$	(0.04	)	$	0.33		$	0.38		$	(0.05	)

Page 17

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)	2007			2006			Variance			2007			2006			Variance

EXPLORATION AND PRODUCTION SEGMENT
Operating Revenues	$	92,610		$	88,719		$	3,891		$	181,318		$	170,806		$	10,512


Operating Expenses:
Purchased Gas		—			4			(4	)		—			98			(98	)
Operation and Maintenance:
General and Administrative Expense		5,949			6,381			(432	)		11,520			12,682			(1,162	)
Lease Operating Expense		14,945			13,155			1,790			28,401			26,694			1,707
All Other Operation and Maintenance Expense		2,070			2,021			49			4,711			3,992			719
Property, Franchise and Other Taxes (Lease Operating Expense)		1,241			1,528			(287	)		2,391			2,736			(345	)
Depreciation, Depletion and Amortization		22,914			23,118			(204	)		44,922			44,658			264

		47,119			46,207			912			91,945			90,860			1,085


Operating Income		45,491			42,512			2,979			89,373			79,946			9,427

Other Income (Expense):
Interest Income		2,644			1,940			704			5,188			3,781			1,407
Other Interest Expense		(12,949	)		(12,521	)		(428	)		(25,897	)		(24,950	)		(947	)


Income Before Income Taxes		35,186			31,931			3,255			68,664			58,777			9,887
Income Tax Expense		15,385			6,086			9,299			28,141			15,497			12,644

Net Income	$	19,801		$	25,845		$	(6,044	)	$	40,523		$	43,280		$	(2,757	)


Net Income Per Share (Diluted)	$	0.23		$	0.30		$	(0.07	)	$	0.48		$	0.50		$	(0.02	)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2007			2006			Variance			2007			2006			Variance

ENERGY MARKETING SEGMENT
Operating Revenues	$	163,338		$	206,061		$	(42,723	)	$	246,656		$	351,620		$	(104,964	)


Operating Expenses:
Purchased Gas		151,027			198,562			(47,535	)		232,282			341,391			(109,109	)
Operation and Maintenance		1,218			1,259			(41	)		2,512			2,489			23
Property, Franchise and Other Taxes		24			(249	)		273			35			(240	)		275
Depreciation, Depletion and Amortization		7			16			(9	)		14			37			(23	)

		152,276			199,588			(47,312	)		234,843			343,677			(108,834	)


Operating Income		11,062			6,473			4,589			11,813			7,943			3,870

Other Income (Expense):
Interest Income		78			43			35			140			169			(29	)
Other Income		181			121			60			317			219			98
Other Interest Expense		(125	)		(129	)		4			(252	)		(191	)		(61	)


Income Before Income Taxes		11,196			6,508			4,688			12,018			8,140			3,878
Income Tax Expense		4,490			2,631			1,859			4,820			3,276			1,544

Net Income	$	6,706		$	3,877		$	2,829		$	7,198		$	4,864		$	2,334


Net Income Per Share (Diluted)	$	0.08		$	0.04		$	0.04		$	0.08		$	0.06		$	0.02

Page 18

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)	2007			2006			Variance			2007			2006			Variance

TIMBER SEGMENT
Revenues from External Customers	$	18,184		$	19,157		$	(973	)	$	29,947		$	36,066		$	(6,119	)
Intersegment Revenues		—			(23	)		23			—			—			—

Total Operating Revenues		18,184			19,134			(950	)		29,947			36,066			(6,119	)


Operating Expenses:
Operation and Maintenance		10,969			12,746			(1,777	)		20,111			24,430			(4,319	)
Property, Franchise and Other Taxes		426			478			(52	)		819			859			(40	)
Depreciation, Depletion and Amortization		883			1,627			(744	)		2,251			3,638			(1,387	)

		12,278			14,851			(2,573	)		23,181			28,927			(5,746	)


Operating Income		5,906			4,283			1,623			6,766			7,139			(373	)

Other Income (Expense):
Interest Income		296			164			132			612			301			311
Other Income		—			35			(35	)		21			52			(31	)
Other Interest Expense		(791	)		(758	)		(33	)		(1,594	)		(1,521	)		(73	)


Income Before Income Taxes		5,411			3,724			1,687			5,805			5,971			(166	)
Income Tax Expense		2,211			1,482			729			2,388			2,265			123

Net Income	$	3,200		$	2,242		$	958		$	3,417		$	3,706		$	(289	)


Net Income Per Share (Diluted)	$	0.04		$	0.03		$	0.01		$	0.04		$	0.04		$	—


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2007			2006			Variance			2007			2006			Variance

ALL OTHER
Revenues from External Customers	$	1,403		$	1,075		$	328		$	3,079		$	1,058		$	2,021
Intersegment Revenues		2,090			2,057			33			4,287			6,584			(2,297	)

Total Operating Revenues		3,493			3,132			361			7,366			7,642			(276	)


Operating Expenses:
Purchased Gas		1,822			1,866			(44	)		3,650			4,972			(1,322	)
Operation and Maintenance		950			922			28			1,755			1,795			(40	)
Property, Franchise and Other Taxes		28			23			5			48			42			6
Depreciation, Depletion and Amortization		197			197			—			393			397			(4	)

		2,997			3,008			(11	)		5,846			7,206			(1,360	)


Operating Income		496			124			372			1,520			436			1,084

Other Income (Expense):
Income from Unconsolidated Subsidiaries		942			720			222			2,173			1,985			188
Interest Income		4			7			(3	)		7			13			(6	)
Other Income		12			14			(2	)		25			16			9
Other Interest Expense		(667	)		(616	)		(51	)		(1,337	)		(1,206	)		(131	)


Income Before Income Taxes		787			249			538			2,388			1,244			1,144
Income Tax Expense		320			203			117			935			628			307

Net Income	$	467		$	46		$	421		$	1,453		$	616		$	837


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

Page 19

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)	2007			2006			Variance			2007			2006			Variance

CORPORATE
Revenues from External Customers	$	196		$	388		$	(192	)	$	379		$	388		$	(9	)
Intersegment Revenues		912			782			130			1,764			1,475			289

Total Operating Revenues		1,108			1,170			(62	)		2,143			1,863			280


Operating Expenses:
Operation and Maintenance		5,262			1,582			3,680			7,011			3,450			3,561
Property, Franchise and Other Taxes		72			71			1			141			166			(25	)
Depreciation, Depletion and Amortization		176			117			59			351			231			120

		5,510			1,770			3,740			7,503			3,847			3,656


Operating Loss		(4,402	)		(600	)		(3,802	)		(5,360	)		(1,984	)		(3,376	)

Other Income (Expense):
Interest Income		22,138			19,979			2,159			44,067			39,703			4,364
Other Income		1,885			(174	)		2,059			1,961			30			1,931
Interest Expense on Long-Term Debt		(17,878	)		(17,875	)		(3	)		(35,760	)		(35,775	)		15
Other Interest Expense		(1,465	)		(959	)		(506	)		(2,963	)		(1,825	)		(1,138	)


Income Before Income Taxes		278			371			(93	)		1,945			149			1,796
Income Tax Benefit		(615	)		(667	)		52			(189	)		(249	)		60

Net Income	$	893		$	1,038		$	(145	)	$	2,134		$	398		$	1,736


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


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2007			2006			Variance			2007			2006			Variance

INTERSEGMENT ELIMINATIONS
Intersegment Revenues	$	(29,827	)	$	(28,208	)	$	(1,619	)	$	(57,273	)	$	(58,868	)	$	1,595


Operating Expenses:
Purchased Gas		(28,811	)		(28,773	)		(38	)		(55,303	)		(58,566	)		3,263
Operation and Maintenance		(1,016	)		565			(1,581	)		(1,970	)		(302	)		(1,668	)

		(29,827	)		(28,208	)		(1,619	)		(57,273	)		(58,868	)		1,595


Operating Income		—			—			—			—			—			—

Other Income (Expense):
Interest Income		(24,491	)		(21,491	)		(3,000	)		(48,351	)		(42,445	)		(5,906	)
Other Interest Expense		24,491			21,491			3,000			48,351			42,445			5,906


Net Income	$	—		$	—		$	—		$	—		$	—		$	—


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

Page 20

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
	2007			2006		(Decrease)			2007			2006		(Decrease)
Capital Expenditures:
Utility	$	12,679		$	13,006	$	(327	)	$	25,558		$	25,360	$	198
Pipeline and Storage		5,201			4,165		1,036			10,153			10,328		(175	)
Exploration and Production		49,277			45,401		3,876			95,866			96,324		(458	)
Energy Marketing		8			1		7			17			6		11
Timber		401			257		144			1,207			752		455

Total Reportable Segments		67,566			62,830		4,736			132,801			132,770		31
All Other		55			56		(1	)		84			56		28
Corporate		(610	)		1,707		(2,317	)		(572	)		2,135		(2,707	)

Total Consolidated	$	67,011		$	64,593	$	2,418		$	132,313		$	134,961	$	(2,648	)

DEGREE DAYS


							Percent Colder
							(Warmer) Than:
	Normal		2007		2006		Normal			Last Year
Three Months Ended March 31

Buffalo, NY		3,327		3,327		2,875		—			15.7
Erie, PA		3,142		3,152		2,705		0.3			16.5

Six Months Ended March 31

Buffalo, NY		5,587		5,274		5,085		(5.6	)		3.7
Erie, PA		5,223		5,030		4,753		(3.7	)		5.8

Page 21

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Gas Production/Prices:
Production (MMcf)
Gulf Coast		2,893		2,752		141			5,616		4,419		1,197
West Coast		920		933		(13	)		1,865		1,951		(86	)
Appalachia		1,339		1,246		93			2,732		2,499		233
Canada		1,856		1,761		95			3,577		3,672		(95	)

		7,008		6,692		316			13,790		12,541		1,249

Average Prices (Per Mcf)
Gulf Coast	$	6.42	$	8.47	$	(2.05	)	$	6.48	$	9.33	$	(2.85	)
West Coast		6.95		8.02		(1.07	)		6.51		9.62		(3.11	)
Appalachia		7.39		10.03		(2.64	)		7.30		11.83		(4.53	)
Canada		5.87		7.21		(1.34	)		6.12		9.06		(2.94	)
Weighted Average		6.53		8.37		(1.84	)		6.56		9.79		(3.23	)
Weighted Average after Hedging		6.87		7.39		(0.52	)		6.90		7.88		(0.98	)

Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast		174		181		(7	)		376		288		88
West Coast		599		639		(40	)		1,190		1,324		(134	)
Appalachia		31		12		19			58		22		36
Canada		61		68		(7	)		117		155		(38	)

		865		900		(35	)		1,741		1,789		(48	)


Average Prices (Per Barrel)
Gulf Coast	$	57.21	$	58.69	$	(1.48	)	$	56.84	$	58.39	$	(1.55	)
West Coast		49.99		53.65		(3.66	)		50.55		52.46		(1.91	)
Appalachia		57.88		60.28		(2.40	)		58.76		60.84		(2.08	)
Canada		49.98		48.63		1.35			46.45		45.57		0.88
Weighted Average		51.73		54.37		(2.64	)		51.91		52.92		(1.01	)
Weighted Average after Hedging		48.09		40.30		7.79			45.90		36.70		9.20

Total Production (Mmcfe)		12,198		12,092		106			24,236		23,275		961


Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe ⁽¹⁾	$	0.49	$	0.53	$	(0.04	)	$	0.48	$	0.54	$	(0.06	)
Lease Operating Expense per Mcfe ⁽¹⁾	$	1.33	$	1.21	$	0.12		$	1.27	$	1.26	$	0.01
Depreciation, Depletion & Amortization per Mcfe ⁽¹⁾	$	1.88	$	1.91	$	(0.03	)	$	1.85	$	1.92	$	(0.07	)


⁽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 22

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for Fiscal 2007


SWAPS	Volume	Average Hedge Price
Oil	0.4 MMBBL	$37.86 / BBL
Gas	6.3 BCF	$7.38 / MCF

No-cost Collars

Volume

Floor Price

Ceiling Price

Oil

0.1 MMBBL

$70.00 / BBL

$77.00 / BBL

Gas

2.5 BCF

$7.42 / MCF

$16.42 / MCF

Hedging Summary for Fiscal 2008


SWAPS	Volume	Average Hedge Price
Oil	0.6 MMBBL	$52.45 / BBL
Gas	7.9 BCF	$8.38 / MCF

No-cost Collars

Volume

Floor Price

Ceiling Price

Gas

1.4 BCF

$8.83 / MCF

$16.45 / MCF

Hedging Summary for Fiscal 2009


SWAPS	Volume	Average Hedge Price
Oil	0.2 MMBBL	$54.70 / BBL

Gross Wells in Process of Drilling
Six Months Ended March 31, 2007


							Total				Total
	Gulf		West		East		U.S.		Canada		Company
Wells in Process — Beginning Period
Exploratory		4.00		1.00		10.00		15.00		5.00		20.00
Developmental		1.00		5.00		44.00		50.00		0.00		50.00
Wells Commenced
Exploratory		4.00		0.00		9.00		13.00		6.00		19.00
Developmental		0.00		36.00		46.00		82.00		3.00		85.00
Wells Completed
Exploratory		1.00		1.00		2.00		4.00		4.00		8.00
Developmental		0.00		36.00		67.00		103.00		2.00		105.00
Wells Plugged & Abandoned
Exploratory		3.00		0.00		0.00		3.00		0.00		3.00
Developmental		0.00		0.00		1.00		1.00		0.00		1.00
Wells in Process — End of Period
Exploratory		4.00		0.00		17.00		21.00		7.00		28.00
Developmental		1.00		5.00		22.00		28.00		1.00		29.00

Net Wells in Process of Drilling
Six Months Ended March 31, 2007


							Total				Total
	Gulf		West		East		U.S.		Canada		Company
Wells in Process — Beginning Period
Exploratory		2.02		0.50		10.00		12.52		2.13		14.65
Developmental		0.67		5.00		44.00		49.67		0.00		49.67
Wells Commenced
Exploratory		1.90		0.00		8.10		10.00		3.95		13.95
Developmental		0.00		36.00		44.00		80.00		1.80		81.80
Wells Completed
Exploratory		0.35		0.50		1.60		2.45		2.75		5.20
Developmental		0.00		36.00		65.00		101.00		0.80		101.80
Wells Plugged & Abandoned
Exploratory		1.42		0.00		0.00		1.42		0.00		1.42
Developmental		0.00		0.00		1.00		1.00		0.00		1.00
Wells in Process — End of Period
Exploratory		2.15		0.00		16.50		18.65		3.33		21.98
Developmental		0.67		5.00		22.00		27.67		1.00		28.67

Page 23

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

Utility Throughput — (millions of cubic feet — MMcf)


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Retail Sales:
Residential Sales		29,372		26,807		2,565			46,050		46,331		(281	)
Commercial Sales		5,428		5,038		390			8,296		8,481		(185	)
Industrial Sales		323		459		(136	)		514		786		(272	)

		35,123		32,304		2,819			54,860		55,598		(738	)
Transportation		24,723		22,119		2,604			40,576		36,461		4,115

		59,846		54,423		5,423			95,436		92,059		3,377

Pipeline & Storage Throughput — (MMcf)


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Firm Transportation — Affiliated		51,016		43,637		7,379			80,746		76,862		3,884
Firm Transportation — Non-Affiliated		69,615		71,191		(1,576	)		114,312		140,788		(26,476	)
Interruptible Transportation		932		1,831		(899	)		1,927		5,554		(3,627	)

		121,563		116,659		4,904			196,985		223,204		(26,219	)

Energy Marketing Volumes


	Three Months Ended						Six Months Ended
	March 31,						March 31,
					Increase						Increase
	2007		2006		(Decrease)		2007		2006		(Decrease)
Natural Gas (MMcf)		19,935		17,332		2,603		31,049		27,306		3,743

Timber Board Feet (Thousands)


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Log Sales		3,025		3,282		(257	)		4,734		5,774		(1,040	)
Green Lumber Sales		2,380		2,982		(602	)		3,910		4,956		(1,046	)
Kiln Dry Lumber Sales		3,794		4,512		(718	)		6,952		8,998		(2,046	)

		9,199		10,776		(1,577	)		15,596		19,728		(4,132	)

Page 24

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2007 EARNINGS GUIDANCE AND SENSITIVITIES

Earnings per share sensitivity to changes

Fiscal 2007 (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

$2.25 - $2.40

+ $0.06

- $0.05

+ $0.05

- $0.05


NYMEX Settlement Prices at September 21, 2006
	Natural Gas		Oil
	($ per MMBtu)		($ per Bbl)
Apr-07	$	7.166	$	65.18
May-07	$	7.126	$	65.61
Jun-07	$	7.221	$	65.96
Jul-07	$	7.311	$	66.25
Aug-07	$	7.391	$	66.49
Sep-07	$	7.476	$	66.67

Average	$	7.282	$	66.03


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

^		This sensitivity table is current as of May 1, 2007 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. 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 NYMEX hedge contracts at their maturity.

Page 25

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES


	2007		2006
Quarter Ended March 31 (unaudited)

Operating Revenues	$	812,156,000	$	890,981,000


Net Income Available for Common Stock	$	78,447,000	$	78,594,000


Earnings Per Common Share:
Basic	$	0.95	$	0.93

Diluted	$	0.92	$	0.91


Weighted Average Common Shares:
Used in Basic Calculation		82,895,087		84,346,733

Used in Diluted Calculation		85,033,127		86,253,597


Six Months Ended March 31 (unaudited)

Operating Revenues	$	1,316,396,000	$	1,601,737,000


Net Income Available for Common Stock	$	132,967,000	$	136,013,000


Earnings Per Common Share:
Basic	$	1.61	$	1.61

Diluted	$	1.57	$	1.58


Weighted Average Common Shares:
Used in Basic Calculation		82,786,027		84,385,140

Used in Diluted Calculation		84,891,742		86,256,515


Twelve Months Ended March 31 (unaudited)

Operating Revenues	$	2,026,317,000	$	2,289,160,000


Income from Continuing Operations	$	135,045,000	$	180,717,000
Income from Discontinued Operations, Net of Tax		—		23,663,000

Net Income Available for Common Stock	$	135,045,000	$	204,380,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	1.62	$	2.15
Income from Discontinued Operations		—		0.28

Net Income Available for Common Stock	$	1.62	$	2.43


Diluted:
Income from Continuing Operations	$	1.58	$	2.11
Income from Discontinued Operations		—		0.27

Net Income Available for Common Stock	$	1.58	$	2.38


Weighted Average Common Shares:
Used in Basic Calculation		83,232,743		84,116,896

Used in Diluted Calculation		85,352,796		85,810,270


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


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



		NATIONAL FUEL GAS COMPANY

		By:		/s/ James R. Peterson

				James R. Peterson
				Assistant Secretary


Exhibit Number		Description

99		Press Release issued May 7, 2007 regarding earnings for the quarter ended March 31, 2007