National Fuel Gas Company	Financial News
	6363 Main Street/Williamsville, NY 14221
	James C. Welch
	Investor Relations
	716-857-6987
Release Date: Immediate August 2, 2007
	Ronald J. Tanski
	Treasurer
	716-857-6981

NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS

Williamsville, New York: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the quarter ended June 30, 2007.

HIGHLIGHTS

• Reported GAAP earnings for the third quarter were $46.8 million or $0.55 per share. This is an increase of $46.7 million or $0.55 per share from the prior year’s quarter. With the exception of the Timber segment, earnings for the quarter increased in all segments compared to the prior year.

• Quarterly operating results before items impacting comparability were $42.0 million or $0.49 per share, an increase of $8.5 million or $0.10 per share from the prior year’s third quarter.

• The Company is increasing and narrowing its GAAP guidance range for fiscal 2007 earnings to a range of $2.38 to $2.46 per share.* This guidance excludes any effects from a sale by the Company’s Exploration and Production segment of its Canadian operations. The Company’s preliminary GAAP guidance for fiscal 2008 is in the range of $2.45 to $2.65 per share.* This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 billion cubic feet equivalent (“Bcfe”) but excludes any Canadian production.*

• A conference call is scheduled for Friday, August 3, 2007 at 11:00 am Eastern Time.

MANAGEMENT COMMENTS

     Philip C. Ackerman, Chairman and Chief Executive Officer of National Fuel Gas Company stated: “This was another solid quarter and a record third quarter for the Company. Our GAAP earnings increased in all segments, with the exception of the Timber segment. Both our GAAP earnings of $0.55 per share and operating results of $0.49 per share exceed market estimates, and are the highest achieved in the third quarter in our history. Our business model of participating in all areas of the natural gas industry, coupled with our employees’ continued dedication to operating our assets in an efficient and safe manner, made these results attainable.”

     “We are also pleased to announce significant milestones toward achieving an in-service date of November 2008 for the Empire Connector pipeline.* At this time, all major regulatory approvals have been received, a service agreement has been signed with KeySpan Gas East

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Corporation, our anchor shipper, and we have finalized the contracts for two crucial components of the project; at present the pipe and compression equipment is being manufactured. In an effort to accelerate our construction schedule, we will begin contacting landowners next week to coordinate construction activities for at least 20 miles of the pipeline by calendar-year end.* This project demonstrates our strong commitment to the Pipeline and Storage segment, and our pursuit of projects that add critical infrastructure to serve the growing markets in the New England and the Mid-Atlantic regions.”*

SUMMARY OF RESULTS

     National Fuel had consolidated earnings for the quarter ended June 30, 2007, of $46.8 million, an increase of $46.7 million, or $0.55 per share, from the prior year’s third quarter of $0.1 million or less than $0.01 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 earnings and operating results discussions are after tax unless otherwise noted).

     Consolidated earnings for the nine months ended June 30, 2007, of $179.8 million, or $2.11 per share, increased $43.6 million, or $0.53 per share, from the same period in the prior year, where earnings were $136.1 million, or $1.58 per share.

	Three Months						Nine Months
	Ended June 30,						Ended June 30,
(in thousands except per share amounts)	2007			2006			2007			2006
Reported GAAP earnings	$	46,798		$	111		$	179,765		$	136,123
Items impacting comparability1:
Reversal of reserve for preliminary project costs		(4,787	)					(4,787	)
Resolution of purchased gas contingency								(2,344	)
Discontinuation of hedge accounting								(1,888	)
Impairment of Canadian oil and gas producing properties					39,502						39,502
Income tax adjustments					(6,122	)					(11,202	)
Out-of-period symmetrical sharing adjustment											(2,551	)
Operating results	$	42,011		$	33,491		$	170,746		$	161,872
Reported GAAP earnings per share	$	0.55		$	0.00		$	2.11		$	1.58
Items impacting comparability1:
Reversal of reserve for preliminary project costs		(0.06	)					(0.06	)
Resolution of purchased gas contingency								(0.03	)
Discontinuation of hedge accounting								(0.02	)
Impairment of Canadian oil and gas producing properties					0.46						0.46
Income tax adjustments					(0.07	)					(0.13	)
Out-of-period symmetrical sharing adjustment											(0.03	)
Earnings excluding these items	$	0.49		$	0.39		$	2.00		$	1.88

¹ See discussion of these individual items below.

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     As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s operating results when comparing the third quarter and nine months ended June 30, 2007 to the comparable periods in fiscal 2006. Excluding these items, operating results for the current third quarter of $42.0 million or $0.49 per share increased $8.5 million or $0.10 per share. Excluding these items, operating results for the nine months ended June 30, 2007 of $170.7 million or $2.00 per share increased $8.9 million or $0.12 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 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 $3.7 million, or $0.04 per share for the quarter ended June 30, 2007, increased $2.9 million, or $0.03 per share, compared to the prior year’s third quarter. In the New York Division, earnings increased $0.9 million mainly due to higher customer usage per account, partially offset by higher operating expenses, a higher effective tax rate and higher interest expense. In the Pennsylvania division, earnings increased $1.9 million compared to the prior year’s third quarter, mainly due to the impact of an increase in base rates. 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. Colder weather in April and higher customer usage per account also contributed to the increase. The increase was partially offset by slightly higher operating expenses and interest expense.

     The Utility segment’s earnings of $54.3 million, or $0.64 per share, for the nine months ended June 30, 2007, increased $3.1 million, or $0.05 per share, compared to the nine months ended June 30, 2006. Earnings in Distribution’s New York Division for the nine months ended June 30, 2007, of $36.0 million decreased $4.7 million compared to the prior year. The comparability of the nine month results is impacted by a $2.6 million out-of-period adjustment recorded in the first quarter of fiscal 2006 to correct Distribution’s calculation of the symmetrical sharing component of the New York Division’s gas adjustment rate. Excluding this item, operating results in the New York Division decreased $2.1 million, or $0.03 per share. This decrease is mainly due to higher bad debt and other operating expenses and higher property taxes. Increased customer usage per account partially offset the decrease.

     For the nine months ended June 30, 2007, earnings in Distribution’s Pennsylvania Division of $18.3 million, or $0.22 per share, increased $7.8 million, or $0.09 per share, compared to the prior year. Earnings increased primarily due to the impact of weather that was 6.6 percent colder than the prior year and the annual $14.3 million (before tax) increase in base rates described above. A lower effective tax rate also contributed to the increase. Partially offsetting the increase was higher interest expense.

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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.

     The Pipeline and Storage segment’s earnings of $15.5 million, or $0.18 per share, for the quarter ended June 30, 2007, increased $2.8 million, or $0.03 per share, when compared with the same period in the prior fiscal year. The comparability of the quarterly results is impacted by the reversal of a $4.8 million reserve for preliminary project costs on the Empire Connector project. Empire recorded a reserve against any project development costs until such time that it was probable that the project was likely to be built and placed in service. In June 2007, Empire and KeySpan Gas East Corporation signed a firm transportation service agreement that obligates Empire to perform transportation services, requiring Empire to construct and operate the Empire Connector. Excluding this item, operating results for the Pipeline and Storage segment decreased $2.0 million. The decrease is primarily due to lower efficiency gas revenue resulting from lower retained volumes compared to the prior year’s third quarter. The lower volumes of efficiency gas result from 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”) that was generally effective as of December 1, 2006. The FERC settlement also increased Supply Corporation’s expense for post-retirement benefits, which resulted in higher operating expenses for the quarter. Partially offsetting these items, the FERC settlement lowered Supply Corporation’s depreciation rates, which resulted in lower depreciation expense for the quarter. Higher interest expense and a higher effective tax rate in the quarter also contributed to the decrease in operating results for the quarter.

     Earnings of $43.1 million, or $0.51 per share, for the nine months ended June 30, 2007, decreased $2.3 million, or $0.02 per share, when compared with the nine months ended June 30, 2006. The comparability of the results for the nine months ended June 30, 2007, is impacted by the $4.8 million reversal of the reserve for preliminary project costs on the Empire Connector project described above, and 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 these items, operating results decreased $9.0 million, or $0.10 per share, for the nine months ended June 30, 2007, mainly due to lower efficiency gas revenue resulting from lower natural gas prices and lower retained volumes due to the FERC settlement discussed above, as well as a gain on sales of efficiency gas that was recorded in the nine months ended June 30, 2006, that did not recur in the nine months ended June 30, 2007. An increase in post-retirement benefits expense, also due to the FERC settlement, and higher interest expense, contributed to the decline in operating results. The decrease was partially offset by lower depreciation expense, resulting from the FERC settlement.

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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, the Appalachian region, and in the Gulf Coast regions of Texas, Louisiana and Alabama. Seneca is currently negotiating the sale of its assets in the western provinces of Canada and expects that it may complete a sale by September 30, 2007.*

     The Exploration and Production segment’s earnings in the third quarter of fiscal 2007 of $24.4 million or $0.29 per share increased $39.6 million or $0.47 per share when compared with the prior year’s third quarter. The comparability of the quarterly results is impacted by a non-cash charge of $39.5 million recorded in the third quarter of fiscal 2006 to write down the value of Seneca’s Canadian oil and natural gas producing properties that did not recur this year. Seneca uses the full cost method of accounting for determining the book value of its oil and natural gas properties. This method requires that Seneca perform a quarterly “ceiling test” to compare, on a country-by-country basis, the present value of future revenues from its oil and natural gas reserves based on current market prices (“the ceiling”) with the book value of those reserves at the balance sheet date. If the book value of the reserves in any country exceeds the ceiling, a non-cash charge must be recorded to reduce the book value of the reserves to the calculated ceiling. In addition, in the third quarter of fiscal 2006, Seneca recognized a $6.1 million benefit to earnings related to income taxes. The Company reversed a valuation allowance associated with the capital loss carryforward that resulted from the 2003 sale of certain Seneca oil properties and also recognized a tax benefit related to the favorable resolution of certain open tax issues.

     Excluding these items, operating results in the Exploration and Production segment increased $6.2 million, or $0.08 per share, for the third quarter of fiscal 2007. The increase was mainly due to higher crude oil and natural gas prices realized after hedging. For the quarter ended June 30, 2007, the weighted average oil price received by Seneca (after hedging) was $53.40 per barrel (“Bbl”), an increase of $8.27 per Bbl, or 18.3 percent from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended June 30, 2007, was $7.33 per thousand cubic feet (“Mcf”), an increase of $0.76 per Mcf, or 11.6 percent from the prior year’s quarter. The increase in commodity prices more than offset a 0.6 Bcfe decrease in production. Operating expenses for the quarter, were up slightly compared to the prior year quarter. Lower depletion expense, which on a per unit basis, decreased $0.25 per thousand cubic feet equivalent (“Mcfe”) to $1.92 per Mcfe was offset by higher lease operating expenses (“LOE”). The decrease in depletion expense is mainly due to the lower book value of the Canadian oil and gas properties as a result of the write down described above. The increase in LOE is due primarily to escalating service costs. A lower effective tax rate also contributed to the increase in operating results.

     The Exploration and Productions segment’s earnings of $65.0 million, or $0.76 per share, for the nine months ended June 30, 2007, increased $36.8 million, or $0.43 per share, when compared with the nine months ended June 30, 2006. The comparability of the nine-month results is impacted by the charge to write down the value of Seneca’s Canadian oil and natural gas producing properties and the tax adjustment described above. Also impacting comparability is an adjustment to the deferred income tax balance recorded in the second quarter of fiscal 2006.

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     Excluding these items, operating results for the nine months ended June 30, 2007, in the Exploration and Production segment increased $8.5 million, or $0.10 per share, from the prior year. This increase is mainly due to higher crude oil prices realized after hedging, combined with a 0.3 Bcfe increase in production. A decrease in oil production was offset by an increase in gas production, while a drop in gas prices realized after hedging was more than offset by an increase in oil prices realized after hedging. For the nine months ended June 30, 2007, the weighted average oil price received by Seneca (after hedging) was $48.37 per Bbl, an increase of $8.81 per Bbl, or 22.3 percent, from the prior year. The weighted average natural gas price received by Seneca (after hedging) was $7.04 per Mcf, a decrease of $0.39 per Mcf, or 5.2 percent, from the prior year. Operating expenses for the nine months ended June 30, 2007 were slightly higher than the prior year. Lower depletion expense was more than offset by the increase in LOE. The increase in LOE was mostly in the Gulf of Mexico due to the hurricane related shut-ins experienced in fiscal year 2006 and new producing fields coming on line in fiscal 2007. Operating results were also impacted by a higher effective tax rate.

Energy Marketing

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

     The Energy Marketing segment’s net income for the third quarter of fiscal 2007 of $1.2 million or $0.01 per share, increased $0.2 million compared to the third quarter last year. Earnings for the nine months ended June 30, 2007, of $8.4 million, or $0.10 per share, increased $2.5 million, or $0.03 per share, compared to the nine months ended June 30, 2006. The comparability of the nine month results is impacted by a $2.3 million reversal of an accrual for purchased gas expense for which a contingency was resolved during the second quarter. Excluding this item, operating results for the Energy Marketing segment for the nine month ended June 30, 2007 were flat compared to the nine months ended June 30, 2006.

Timber Segment

     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 net loss for the quarter ended June 30, 2007, of $0.4 million or less than $0.01 per share, is a decrease of $1.9 million from earnings of $1.5 million in the prior year’s third quarter. The decrease is due to lower margins primarily on logs, green lumber and kiln-dried lumber. The decreased margins are due to a combination of lower sales volumes and prices received mainly for kiln-dried cherry lumber and soft and hard maple green lumber.

     Earnings for the nine months ended June 30, 2007, of $3.1 million decreased $2.2 million from the prior year’s earnings. The decrease is due to lower margins on logs, green lumber and kiln-dried lumber. The decreased margins are due to a combination of lower sales volumes and prices. The wet weather early in the year resulted in lower harvest volumes. This, combined

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with lower unit prices, resulted in lower revenues for kiln-dried cherry lumber and soft and hard maple green lumber. The mix of lumber grades also contributed to the decrease.

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 which are fueled with natural gas or landfill gas.

     Earnings in the Corporate and All Other category for the quarter ended June 30, 2007, were $2.3 million, an increase of $3.1 million when compared to the prior year’s third quarter loss of $0.8 million. The increase is due to higher margins in Horizon LFG, Inc., higher income from unconsolidated subsidiaries in Horizon Power Inc., higher intercompany interest income, lower operating costs and a lower effective tax rate.

     Earnings in the Corporate and All Other category for the nine months ended June 30, 2007, were $5.9 million, an increase of $5.7 million when compared to the prior year’s earnings. The increase is mainly due to higher margins in Horizon LFG, Inc., higher income from unconsolidated subsidiaries in Horizon Power, Inc., higher intercompany interest income and a lower effective tax rate.

EARNINGS GUIDANCE

     The Company is increasing and narrowing its GAAP guidance range for fiscal 2007 earnings to a range of $2.38 to $2.46 per share.* This guidance excludes any effects from a sale by Seneca of its Canadian operations. The Company’s preliminary GAAP guidance for fiscal 2008 is in the range of $2.45 to $2.65 per share.* This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 Bcfe.* The Company is not including any forecast with respect to production volumes in Canada. Further details regarding the production guidance are included on page 23 of this document.

EARNINGS TELECONFERENCE

     The Company will host a conference call on Friday, August 3, 2007 at 11 a.m. (Eastern 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) 1-800-237-9752, and using the passcode “86158770.” 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 “27159393.” Both the webcast and telephonic replay will be available until the close of business on Friday, August 10, 2007.

     National Fuel is an integrated energy company with $3.8 billion in assets comprised of the following five operating segments: Utility, Pipeline and Storage, Exploration and Production,

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Energy Marketing, and Timber. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

Analyst Contact:	James C. Welch	(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 project; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; occurrences affecting the Company’s ability to obtain funds from operations or from issuances of short-term notes or 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.

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2007

				Pipeline &			Exploration &			Energy					Corporate /
(Thousands of Dollars)	Utility			Storage			Production			Marketing		Timber			All Other			Consolidated
Third quarter 2006 GAAP earnings	$	827		$	12,642		$	(15,127	)	$	1,045	$	1,529		$	(805	)	$	111
Items impacting comparability:
Income tax adjustments								(6,122	)										(6,122	)
Impairment of oil and gas properties								39,502											39,502
Third quarter 2006 operating results		827			12,642			18,253			1,045		1,529			(805	)		33,491
Drivers of operating results
Base rate increase in Pennsylvania		1,826																	1,826
Usage		2,855																	2,855
Lower efficiency gas revenues					(1,175	)													(1,175	)
Lower (higher) operating costs		(674	)		(794	)										326			(1,142	)
Lower depreciation / depletion					844			2,707					281						3,832
Higher crude oil prices								4,588											4,588
Higher natural gas prices								3,110											3,110
Lower natural gas production								(1,177	)										(1,177	)
Lower crude oil production								(1,792	)										(1,792	)
Higher lease operating expenses								(2,598	)										(2,598	)
Lower (higher) effective tax rate		(556	)		(486	)		1,575								620			1,153
Income from unconsolidated subsidiaries																462			462
Higher (lower) margins													(2,047	)		209			(1,838	)
Higher interest income (expense)		(590	)		(1,007	)										1,351			(246	)
All other / rounding		17			640			(231	)		188		(127	)		175			662
Third quarter 2007 operating results		3,705			10,664			24,435			1,233		(364	)		2,338			42,011
Items impacting comparability:
Reversal of reserve for preliminary project costs					4,787														4,787
Third quarter 2007 GAAP earnings	$	3,705		$	15,451		$	24,435		$	1,233	$	(364	)	$	2,338		$	46,798

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2007

				Pipeline &			Exploration &			Energy					Corporate /
	Utility			Storage			Production			Marketing		Timber			All Other			Consolidated
Third quarter 2006 GAAP earnings	$	0.01		$	0.15		$	(0.18	)	$	0.01	$	0.02		$	(0.01	)	$	—
Items impacting comparability:
Income tax adjustment								(0.07	)										(0.07	)
Impairment of oil and gas properties								0.46											0.46
Third quarter 2006 operating results		0.01			0.15			0.21			0.01		0.02			(0.01	)		0.39
Drivers of operating results
Base rate increase in Pennsylvania		0.02																	0.02
Usage		0.03																	0.03
Lower efficiency gas revenues					(0.01	)													(0.01	)
Lower (higher) operating costs		(0.01	)		(0.01	)										—			(0.02	)
Lower depreciation / depletion					0.01			0.03					—						0.04
Higher crude oil prices								0.05											0.05
Higher natural gas prices								0.04											0.04
Lower natural gas production								(0.01	)										(0.01	)
Lower crude oil production								(0.02	)										(0.02	)
Higher lease operating expenses								(0.03	)										(0.03	)
Lower (higher) effective tax rate		(0.01	)		(0.01	)		0.02								0.01			0.01
Income from unconsolidated subsidiaries																0.01			0.01
Higher (lower) margins													(0.02	)		—			(0.02	)
Higher interest income (expense)		(0.01	)		(0.01	)										0.02			—
All other / rounding		0.01			—			—			—		—			—			0.01
Third quarter 2007 operating results		0.04			0.12			0.29			0.01		—			0.03			0.49
Items impacting comparability:
Reversal of reserve for preliminary project costs					0.06														0.06
Third quarter 2007 GAAP earnings	$	0.04		$	0.18		$	0.29		$	0.01	$	—		$	0.03		$	0.55

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2007

				Pipeline &			Exploration &			Energy						Corporate /
(Thousands of Dollars)	Utility			Storage			Production			Marketing			Timber			All Other			Consolidated
Nine months ended June 30, 2006 GAAP earnings	$	51,234		$	45,384		$	28,152		$	5,909		$	5,235		$	209		$	136,123
Items impacting comparability:
Out-of-period adjustment to symmetrical sharing		(2,551	)																	(2,551	)
Income tax adjustments								(11,202	)											(11,202	)
Impairment of oil and gas properties								39,502												39,502
Nine months ended June 30, 2006 operating results		48,683			45,384			56,452			5,909			5,235			209			161,872
Drivers of operating results
Colder weather in Pennsylvania		2,272																		2,272
Base rate increase in Pennsylvania		4,859																		4,859
Lower (higher) operating costs		(3,073	)		(1,041	)											(260	)		(4,374	)
Higher property taxes		(863	)																	(863	)
Usage		2,575																		2,575
Lower efficiency gas revenues					(6,998	)														(6,998	)
Lower depreciation / depletion					1,830			2,536						1,183						5,549
Higher crude oil prices								14,866												14,866
Lower natural gas prices								(5,108	)											(5,108	)
Higher natural gas production								4,699												4,699
Lower crude oil production								(2,796	)											(2,796	)
Higher lease operating expenses								(3,483	)											(3,483	)
Lower (higher) effective tax rate		1,342						(2,527	)								1,282			97
Income from unconsolidated subsidiaries																	585			585
Higher (lower) margins											264			(3,080	)		936			(1,880	)
Higher interest income (expense)		(1,268	)		(2,376	)											3,369			(275	)
All other / rounding		(205	)		(399	)		319			(86	)		(285	)		(195	)		(851	)
Nine months ended June 30, 2007 operating results		54,322			36,400			64,958			6,087			3,053			5,926			170,746
Items impacting comparability:
Reversal of reserve for preliminary project costs					4,787															4,787
Resolution of a purchased gas contingency											2,344									2,344
Discontinuance of hedge accounting					1,888															1,888
Nine months ended June 30, 2007 GAAP earnings	$	54,322		$	43,075		$	64,958		$	8,431		$	3,053		$	5,926		$	179,765

Page 12

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2007

				Pipeline &			Exploration &			Energy					Corporate /
	Utility			Storage			Production			Marketing		Timber			All Other			Consolidated
Nine months ended June 30, 2006 GAAP earnings	$	0.59		$	0.53		$	0.33		$	0.07	$	0.06		$	—		$	1.58
Items impacting comparability:
Out-of-period adjustment to symmetrical sharing		(0.03	)																(0.03	)
Income tax adjustments								(0.13	)										(0.13	)
Impairment of oil and gas properties								0.46											0.46
Nine months ended June 30, 2006 operating results		0.56			0.53			0.66			0.07		0.06			—			1.88
Drivers of operating results
Colder weather in Pennsylvania		0.03																	0.03
Base rate increase in Pennsylvania		0.06																	0.06
Lower (higher) operating costs		(0.04	)		(0.01	)										—			(0.05	)
Higher property taxes		(0.01	)																(0.01	)
Usage		0.03																	0.03
Lower efficiency gas revenues					(0.08	)													(0.08	)
Lower depreciation / depletion					0.02			0.03					0.01						0.06
Higher crude oil prices								0.17											0.17
Lower natural gas prices								(0.06	)										(0.06	)
Higher natural gas production								0.06											0.06
Lower crude oil production								(0.03	)										(0.03	)
Higher lease operating expenses								(0.04	)										(0.04	)
Lower (higher) effective tax rate		0.02						(0.03	)							0.01			—
Income from unconsolidated subsidiaries																0.01			0.01
Higher (lower) margins													(0.04	)		0.01			(0.03	)
Higher interest income (expense)		(0.01	)		(0.03	)										0.04			—
All other / rounding		—			—			—			—		0.01			(0.01	)		—
Nine months ended June 30, 2007 operating results		0.64			0.43			0.76			0.07		0.04			0.06			2.00
Items impacting comparability:
Reversal of reserve for preliminary project costs					0.06														0.06
Resolution of a purchased gas contingency											0.03								0.03
Discontinuance of hedge accounting					0.02														0.02
Nine months ended June 30, 2007 GAAP earnings	$	0.64		$	0.51		$	0.76		$	0.10	$	0.04		$	0.06		$	2.11

Page 13

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	(Unaudited)						(Unaudited)
(Thousands of Dollars, except per share amounts)	2007			2006			2007			2006
SUMMARY OF OPERATIONS
Operating Revenues	$	463,145		$	415,452		$	1,779,541		$	2,017,189
Operating Expenses:
Purchased Gas		219,075			184,635			938,918			1,187,952
Operation and Maintenance		96,782			96,117			321,695			320,821
Property, Franchise and Other Taxes		17,804			16,845			55,149			54,147
Depreciation, Depletion and Amortization		41,100			46,943			125,986			134,267
Impairment of Oil and Gas Producing Properties		—			62,371			—			62,371
		374,761			406,911			1,441,748			1,759,558
Operating Income		88,384			8,541			337,793			257,631
Other Income (Expense):
Income from Unconsolidated Subsidiaries		926			215			3,099			2,199
Interest Income		1,649			2,203			3,897			4,301
Other Income		787			546			4,028			1,535
Interest Expense on Long-Term Debt		(18,226	)		(18,135	)		(52,158	)		(54,502	)
Other Interest Expense		(1,512	)		(1,026	)		(4,877	)		(4,266	)
Income (Loss) Before Income Taxes		72,008			(7,656	)		291,782			206,898
Income Tax Expense (Benefit)		25,210			(7,767	)		112,017			70,775
Net Income Available for Common Stock	$	46,798		$	111		$	179,765		$	136,123
Earnings Per Common Share:
Basic	$	0.56		$	—		$	2.17		$	1.62
Diluted	$	0.55		$	—		$	2.11		$	1.58
Weighted Average Common Shares:
Used in Basic Calculation		83,483,718			84,013,556			83,018,583			84,231,490
Used in Diluted Calculation		85,668,055			86,016,131			85,192,777			86,150,927

Page 14

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

	June 30,		September 30,
(Thousands of Dollars)	2007		2006
ASSETS
Property, Plant and Equipment	$	4,928,627	$	4,703,040
Less - Accumulated Depreciation, Depletion and Amortization		1,960,265		1,825,314
Net Property, Plant and Equipment		2,968,362		2,877,726
Current Assets:
Cash and Temporary Cash Investments		62,530		69,611
Hedging Collateral Deposits		3,400		19,676
Receivables - Net		222,249		144,254
Unbilled Utility Revenue		20,569		25,538
Gas Stored Underground		30,829		59,461
Materials and Supplies — at average cost		30,621		36,693
Unrecovered Purchased Gas Costs		—		12,970
Prepaid Pension and Post-Retirement Benefit Costs		70,858		64,125
Other Current Assets		26,324		63,723
Deferred Income Taxes		21,271		23,402
Total Current Assets		488,651		519,453
Other Assets:
Recoverable Future Taxes		79,010		79,511
Unamortized Debt Expense		12,555		15,492
Other Regulatory Assets		84,325		76,917
Deferred Charges		5,861		3,558
Other Investments		83,444		88,414
Investments in Unconsolidated Subsidiaries		16,377		11,590
Goodwill		5,476		5,476
Intangible Assets		29,757		31,498
Fair Value of Derivative Financial Instruments		6,170		11,305
Deferred Income Taxes		5,421		9,003
Other		7,716		4,388
Total Other Assets		336,112		337,152
Total Assets	$	3,793,125	$	3,734,331
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 83,536,549 Shares and 83,402,670 Shares, Respectively	$	83,537	$	83,403
Paid in Capital		568,537		543,730
Earnings Reinvested in the Business		855,803		786,013
Total Common Shareholder Equity Before Items of Other Comprehensive Income		1,507,877		1,413,146
Accumulated Other Comprehensive Income		43,984		30,416
Total Comprehensive Shareholders’ Equity		1,551,861		1,443,562
Long-Term Debt, Net of Current Portion		799,000		1,095,675
Total Capitalization		2,350,861		2,539,237
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		—		—
Current Portion of Long-Term Debt		200,050		22,925
Accounts Payable		120,978		133,034
Amounts Payable to Customers		19,197		23,935
Dividends Payable		25,897		25,008
Interest Payable on Long-Term Debt		13,541		18,420
Other Accruals and Current Liabilities		96,587		27,040
Fair Value of Derivative Financial Instruments		17,133		39,983
Total Current and Accrued Liabilities		493,383		290,345
Deferred Credits:
Deferred Income Taxes		566,133		544,502
Taxes Refundable to Customers		10,437		10,426
Unamortized Investment Tax Credit		5,568		6,094
Cost of Removal Regulatory Liability		88,949		85,076
Other Regulatory Liabilities		73,212		75,456
Post-Retirement Liabilities		24,310		32,918
Asset Retirement Obligations		80,739		77,392
Other Deferred Credits		99,533		72,885
Total Deferred Credits		948,881		904,749
Commitments and Contingencies		—		—
Total Capitalization and Liabilities	$	3,793,125	$	3,734,331

Page 15

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

	Nine Months Ended
	June 30,
(Thousands of Dollars)	2007			2006
Operating Activities:
Net Income Available for Common Stock	$	179,765		$	136,123
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Impairment of Oil and Gas Producing Properties		—			62,371
Depreciation, Depletion and Amortization		125,986			134,267
Deferred Income Taxes		27,107			(17,430	)
Income from Unconsolidated Subsidiaries, Net of Cash Distributions		(1,486	)		2,452
Excess Tax Benefits Associated with Stock-Based Compensation Awards		(13,689	)		(6,515	)
Other		4,722			(6,493	)
Change in:
Hedging Collateral Deposits		16,276			63,100
Receivables and Unbilled Utility Revenue		(73,150	)		(72,496	)
Gas Stored Underground and Materials and Supplies		34,725			21,098
Unrecovered Purchased Gas Costs		12,970			14,817
Prepayments and Other Current Assets		30,685			21,800
Accounts Payable		(12,560	)		(24,650	)
Amounts Payable to Customers		(4,738	)		30,418
Other Accruals and Current Liabilities		77,842			49,950
Other Assets		918			(15,753	)
Other Liabilities		(821	)		16,855
Net Cash Provided by Operating Activities	$	404,552		$	409,914
Investing Activities:
Capital Expenditures		($206,509	)		($218,658	)
Investment in Partnership		(3,300	)		—
Net Proceeds from Sale of Oil and Gas Producing Properties		5,137			4
Other		(1,072	)		(1,578	)
Net Cash Used in Investing Activities		($205,744	)		($220,232	)
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	13,689		$	6,515
Shares Repurchased under Repurchase Plan		(43,344	)		(76,540	)
Reduction of Long-Term Debt		(119,550	)		(7,157	)
Dividends Paid on Common Stock		(74,748	)		(73,275	)
Proceeds From Issuance of Common Stock		16,819			23,399
Net Cash Used In Financing Activities		($207,134	)		($127,058	)
Effect of Exchange Rates on Cash		1,245			1,395
Net Increase (Decrease) in Cash and Temporary Cash Investments		(7,081	)		64,019
Cash and Temporary Cash Investments at Beginning of Period		69,611			57,607
Cash and Temporary Cash Investments at June 30	$	62,530		$	121,626

Page 16

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2007			2006			Variance			2007			2006			Variance
UTILITY SEGMENT
Revenues from External Customers	$	210,604		$	186,661		$	23,943		$	1,000,860		$	1,154,375		$	(153,515	)
Intersegment Revenues		2,586			2,514			72			12,556			12,317			239
Total Operating Revenues		213,190			189,175			24,015			1,013,416			1,166,692			(153,276	)
Operating Expenses:
Purchased Gas		131,469			115,463			16,006			670,694			830,823			(160,129	)
Operation and Maintenance		47,231			45,889			1,342			165,446			163,098			2,348
Property, Franchise and Other Taxes		11,688			11,106			582			36,986			36,878			108
Depreciation, Depletion and Amortization		10,053			10,054			(1	)		30,153			30,058			95
		200,441			182,512			17,929			903,279			1,060,857			(157,578	)
Operating Income		12,749			6,663			6,086			110,137			105,835			4,302
Other Income (Expense):
Interest Income		100			162			(62	)		562			542			20
Other Income		273			205			68			926			609			317
Other Interest Expense		(6,697	)		(5,789	)		(908	)		(21,343	)		(19,392	)		(1,951	)
Income Before Income Taxes		6,425			1,241			5,184			90,282			87,594			2,688
Income Tax Expense		2,720			414			2,306			35,960			36,360			(400	)
Net Income	$	3,705		$	827		$	2,878		$	54,322		$	51,234		$	3,088
										-
Net Income Per Share (Diluted)	$	0.04		$	0.01		$	0.03		$	0.64		$	0.59		$	0.05
										-

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	2007			2006			Variance			2007			2006			Variance
PIPELINE AND STORAGE SEGMENT
Revenues from External Customers	$	30,128		$	30,750		$	(622	)	$	94,889		$	104,835		$	(9,946	)
Intersegment Revenues		20,332			20,298			34			61,585			61,304			281
Total Operating Revenues		50,460			51,048			(588	)		156,474			166,139			(9,665	)
Operating Expenses:
Purchased Gas		—			(80	)		80			(11	)		(18	)		7
Operation and Maintenance		9,471			15,613			(6,142	)		42,118			47,878			(5,760	)
Property, Franchise and Other Taxes		4,182			4,012			170			12,795			11,979			816
Depreciation, Depletion and Amortization		7,995			9,290			(1,295	)		24,851			27,649			(2,798	)
		21,648			28,835			(7,187	)		79,753			87,488			(7,735	)
Operating Income		28,812			22,213			6,599			76,721			78,651			(1,930	)
Other Income (Expense):
Interest Income		100			120			(20	)		224			316			(92	)
Other Income		154			116			38			418			384			34
Interest Expense on Long-Term Debt		(21	)		(245	)		224			1,807			(837	)		2,644
Other Interest Expense		(3,112	)		(1,339	)		(1,773	)		(8,140	)		(3,728	)		(4,412	)
Income Before Income Taxes		25,933			20,865			5,068			71,030			74,786			(3,756	)
Income Tax Expense		10,482			8,223			2,259			27,955			29,402			(1,447	)
Net Income	$	15,451		$	12,642		$	2,809		$	43,075		$	45,384		$	(2,309	)
Net Income Per Share (Diluted)	$	0.18		$	0.15		$	0.03		$	0.51		$	0.53		$	(0.02	)

Page 17

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2007			2006			Variance			2007			2006			Variance
EXPLORATION AND PRODUCTION SEGMENT
Operating Revenues	$	94,394		$	86,600		$	7,794		$	275,712		$	257,406		$	18,306
Operating Expenses:
Purchased Gas		—			—			—			—			98			(98	)
Operation and Maintenance:
General and Administrative Expense		6,860			5,783			1,077			18,379			18,465			(86	)
Lease Operating Expense		15,248			11,485			3,763			43,649			38,179			5,470
All Other Operation and Maintenance Expense		2,397			1,976			421			7,108			5,968			1,140
Property, Franchise and Other Taxes (Lease Operating Expense)		1,470			1,236			234			3,861			3,972			(111	)
Depreciation, Depletion and Amortization		21,832			25,997			(4,165	)		66,755			70,655			(3,900	)
Impairment of Oil and Gas Producing Properties		—			62,371			(62,371	)		—			62,371			(62,371	)
		47,807			108,848			(61,041	)		139,752			199,708			(59,956	)
Operating Income (Loss)		46,587			(22,248	)		68,835			135,960			57,698			78,262
Other Income (Expense):
Interest Income		2,383			2,332			51			7,570			6,113			1,457
Interest Expense on Long-Term Debt		(1,188	)		—			(1,188	)		(1,188	)		—			(1,188	)
Other Interest Expense		(12,510	)		(12,671	)		161			(38,406	)		(37,622	)		(784	)
Income (Loss) Before Income Taxes		35,272			(32,587	)		67,859			103,936			26,189			77,747
Income Tax Expense (Benefit)		10,837			(17,460	)		28,297			38,978			(1,963	)		40,941
Net Income (Loss)	$	24,435		$	(15,127	)	$	39,562		$	64,958		$	28,152		$	36,806
Net Income (Loss) Per Share (Diluted)	$	0.29		$	(0.18	)	$	0.47		$	0.76		$	0.33		$	0.43

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	2007			2006			Variance			2007			2006			Variance
ENERGY MARKETING SEGMENT
Operating Revenues	$	113,380		$	94,747		$	18,633		$	360,036		$	446,367		$	(86,331	)
Operating Expenses:
Purchased Gas		110,765			91,920			18,845			343,047			433,311			(90,264	)
Operation and Maintenance		1,199			1,404			(205	)		3,711			3,894			(183	)
Property, Franchise and Other Taxes		11			8			3			46			(232	)		278
Depreciation, Depletion and Amortization		9			10			(1	)		23			46			(23	)
		111,984			93,342			18,642			346,827			437,019			(90,192	)
Operating Income		1,396			1,405			(9	)		13,209			9,348			3,861
Other Income (Expense):
Interest Income		359			132			227			498			301			197
Other Income		273			143			130			590			363			227
Other Interest Expense		(2	)		(16	)		14			(253	)		(207	)		(46	)
Income Before Income Taxes		2,026			1,664			362			14,044			9,805			4,239
Income Tax Expense		793			619			174			5,613			3,896			1,717
Net Income	$	1,233		$	1,045		$	188		$	8,431		$	5,909		$	2,522
Net Income Per Share (Diluted)	$	0.01		$	0.01		$	—		$	0.10		$	0.07		$	0.03

Page 18

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
(Thousands of Dollars, except per share amounts)	2007			2006			Variance			2007			2006			Variance
TIMBER SEGMENT
Revenues from External Customers	$	13,131		$	15,311		$	(2,180	)	$	43,079		$	51,377		$	(8,298	)
Intersegment Revenues		—			4			(4	)		—			4			(4	)
Total Operating Revenues		13,131			15,315			(2,184	)		43,079			51,381			(8,302	)
Operating Expenses:
Operation and Maintenance		11,919			10,898			1,021			32,031			35,328			(3,297	)
Property, Franchise and Other Taxes		363			382			(19	)		1,183			1,241			(58	)
Depreciation, Depletion and Amortization		843			1,275			(432	)		3,093			4,913			(1,820	)
		13,125			12,555			570			36,307			41,482			(5,175	)
Operating Income		6			2,760			(2,754	)		6,772			9,899			(3,127	)
Other Income (Expense):
Interest Income		310			217			93			923			518			405
Other Income		—			—			—			21			52			(31	)
Other Interest Expense		(808	)		(778	)		(30	)		(2,403	)		(2,299	)		(104	)
Income (Loss) Before Income Taxes		(492	)		2,199			(2,691	)		5,313			8,170			(2,857	)
Income Tax Expense (Benefit)		(128	)		670			(798	)		2,260			2,935			(675	)
Net Income (Loss)	$	(364	)	$	1,529		$	(1,893	)	$	3,053		$	5,235		$	(2,182	)
Net Income (Loss) Per Share (Diluted)	$	—		$	0.02		$	(0.02	)	$	0.04		$	0.06		$	(0.02	)

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
	2007			2006			Variance			2007			2006			Variance
ALL OTHER
Revenues from External Customers	$	1,308		$	1,192		$	116		$	4,387		$	2,250		$	2,137
Intersegment Revenues		2,253			1,354			899			6,540			7,938			(1,398	)
Total Operating Revenues		3,561			2,546			1,015			10,927			10,188			739
Operating Expenses:
Purchased Gas		1,910			1,395			515			5,560			6,366			(806	)
Operation and Maintenance		1,007			803			204			2,763			2,598			165
Property, Franchise and Other Taxes		22			33			(11	)		69			75			(6	)
Depreciation, Depletion and Amortization		196			196			—			589			593			(4	)
		3,135			2,427			708			8,981			9,632			(651	)
Operating Income		426			119			307			1,946			556			1,390
Other Income (Expense):
Income from Unconsolidated Subsidiaries		926			215			711			3,099			2,199			900
Interest Income		4			7			(3	)		11			20			(9	)
Other Income		12			27			(15	)		37			42			(5	)
Other Interest Expense		(662	)		(668	)		6			(1,999	)		(1,874	)		(125	)
Income (Loss) Before Income Taxes		706			(300	)		1,006			3,094			943			2,151
Income Tax Expense (Benefit)		248			(88	)		336			1,183			539			644
Net Income (Loss)	$	458		$	(212	)	$	670		$	1,911		$	404		$	1,507
Net Income (Loss) Per Share (Diluted)	$	0.01		$	—		$	0.01		$	0.02		$	—		$	0.02

Page 19

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Nine Months Ended
(Thousands of Dollars, except per share amounts)	June 30,									June 30,
CORPORATE	2007			2006			Variance			2007			2006			Variance
Revenues from External Customers	$	200		$	191		$	9		$	578		$	579		$	(1	)
Intersegment Revenues		853			737			116			2,616			2,212			404
Total Operating Revenues		1,053			928			125			3,194			2,791			403
Operating Expenses:
Operation and Maintenance		2,405			3,110			(705	)		9,415			6,560			2,855
Property, Franchise and Other Taxes		68			68			—			209			234			(25	)
Depreciation, Depletion and Amortization		172			121			51			522			353			169
		2,645			3,299			(654	)		10,146			7,147			2,999
Operating Income (Loss)		(1,592	)		(2,371	)		779			(6,952	)		(4,356	)		(2,596	)
Other Income (Expense):
Interest Income		21,711			20,424			1,287			65,778			60,127			5,651
Other Income		75			55			20			2,036			85			1,951
Interest Expense on Long-Term Debt		(17,017	)		(17,890	)		873			(52,777	)		(53,665	)		888
Other Interest Expense		(1,039	)		(956	)		(83	)		(4,002	)		(2,780	)		(1,222	)
Income (Loss) Before Income Taxes		2,138			(738	)		2,876			4,083			(589	)		4,672
Income Tax Expense (Benefit)		258			(145	)		403			68			(394	)		462
Net Income (Loss)	$	1,880		$	(593	)	$	2,473		$	4,015		$	(195	)	$	4,210
Net Income (Loss) Per Share (Diluted)	$	0.02		$	(0.01	)	$	0.03		$	0.04		$	—		$	0.04

	Three Months Ended									Nine Months Ended
	June 30,									June 30,
INTERSEGMENT ELIMINATIONS	2007			2006			Variance			2007			2006			Variance
Intersegment Revenues	$	(26,024	)	$	(24,907	)	$	(1,117	)	$	(83,297	)	$	(83,775	)	$	478
Operating Expenses:
Purchased Gas		(25,069	)		(24,063	)		(1,006	)		(80,372	)		(82,628	)		2,256
Operation and Maintenance		(955	)		(844	)		(111	)		(2,925	)		(1,147	)		(1,778	)
		(26,024	)		(24,907	)		(1,117	)		(83,297	)		(83,775	)		478
Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest Income		(23,318	)		(21,191	)		(2,127	)		(71,669	)		(63,636	)		(8,033	)
Other Interest Expense		23,318			21,191			2,127			71,669			63,636			8,033
Net Income	$	—		$	—		$	—		$	—		$	—		$	—
Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—

Page 20

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)
(Thousands of Dollars)

	Three Months Ended							Nine Months Ended
	June 30,							June 30,
	(Unaudited)							(Unaudited)
					Increase								Increase
	2007		2006		(Decrease)			2007			2006		(Decrease)
Capital Expenditures:
Utility	$	14,387	$	14,012	$	375		$	39,945		$	39,372	$	573
Pipeline and Storage		16,255		5,033		11,222			26,408			15,361		11,047
Exploration and Production		42,421		63,999		(21,578	)		138,287			160,323		(22,036	)
Energy Marketing		41		—		41			57			6		51
Timber		1,056		378		678			2,263			1,130		1,133
Total Reportable Segments		74,160		83,422		(9,262	)		206,960			216,192		(9,232	)
All Other		3		22		(19	)		87			78		9
Corporate		33		253		(220	)		(538	)		2,388		(2,926	)
Total Consolidated	$	74,196	$	83,697	$	(9,501	)	$	206,509		$	218,658	$	(12,149	)

     DEGREE DAYS

							Percent Colder
							(Warmer) Than:
	Normal		2007		2006		Normal			Last Year
Three Months Ended June 30
Buffalo, NY		927		921		731		(0.6	)		26.0
Erie, PA		885		900		812		1.7			10.8
Nine Months Ended June 30
Buffalo, NY		6,514		6,195		5,816		(4.9	)		6.5
Erie, PA		6,108		5,930		5,565		(2.9	)		6.6

Page 21

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Gas Production/Prices:
Production (MMcf)
Gulf Coast		2,317		2,109		208			7,934		6,529		1,405
West Coast		1,019		983		36			2,883		2,933		(50	)
Appalachia		1,266		1,267		(1	)		3,998		3,766		232
Canada		1,639		2,158		(519	)		5,216		5,830		(614	)
		6,241		6,517		(276	)		20,031		19,058		973
Average Prices (Per Mcf)
Gulf Coast	$	7.37	$	6.97	$	0.40		$	6.74	$	8.56	$	(1.82	)
West Coast		7.20		6.06		1.14			6.76		8.42		(1.66	)
Appalachia		8.59		7.26		1.33			7.71		10.29		(2.58	)
Canada		6.82		5.54		1.28			6.34		7.75		(1.41	)
Weighted Average		7.45		6.41		1.04			6.83		8.64		(1.81	)
Weighted Average after Hedging		7.33		6.57		0.76			7.04		7.43		(0.39	)
Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast		165		192		(27	)		540		479		61
West Coast		599		638		(39	)		1,789		1,962		(173	)
Appalachia		32		19		13			91		41		50
Canada		58		66		(8	)		175		221		(46	)
		854		915		(61	)		2,595		2,703		(108	)
Average Prices (Per Barrel)
Gulf Coast	$	65.17	$	67.52	$	(2.35	)	$	59.37	$	62.04	$	(2.67	)
West Coast		57.77		61.51		(3.74	)		52.96		55.40		(2.44	)
Appalachia		60.43		63.15		(2.72	)		59.35		61.92		(2.57	)
Canada		51.58		57.88		(6.30	)		48.16		49.25		(1.09	)
Weighted Average		58.87		62.54		(3.67	)		54.20		56.17		(1.97	)
Weighted Average after Hedging		53.40		45.13		8.27			48.37		39.56		8.81
Total Production (Mmcfe)		11,365		12,007		(642	)		35,601		35,276		325
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)	$	0.60	$	0.48	$	0.12		$	0.52	$	0.52	$	—
Lease Operating Expense per Mcfe (1)	$	1.47	$	1.06	$	0.41		$	1.33	$	1.19	$	0.14
Depreciation, Depletion & Amortization per Mcfe (1)	$	1.92	$	2.17	$	(0.25	)	$	1.88	$	2.00	$	(0.12	)

⁽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 the Remaining Three Months of Fiscal 2007

SWAPS	Volume	Average Hedge Price
Oil	0.2 MMBBL	$37.86 / BBL
Gas	3.3 BCF	$7.41 / MCF

No-cost Collars	Volume	Floor Price	Ceiling Price
Gas	1.3 BCF	$7.42 / MCF	$16.42 / MCF

Hedging Summary for Fiscal 2008

SWAPS	Volume	Average Hedge Price
Oil Gas	0.8 MMBBL 7.9 BCF	$54.27 / BBL $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
Nine Months Ended June 30, 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		5.00		0.00		15.00		20.00		8.00		28.00
Developmental		2.00		60.00		127.00		189.00		3.00		192.00
Wells Completed
Exploratory		3.00		1.00		3.00		7.00		10.00		17.00
Developmental		2.00		59.00		115.00		176.00		3.00		179.00
Wells Plugged & Abandoned
Exploratory		3.00		0.00		0.00		3.00		0.00		3.00
Developmental		0.00		2.00		2.00		4.00		0.00		4.00
Wells in Process - End of Period
Exploratory		3.00		0.00		22.00		25.00		3.00		28.00
Developmental		1.00		4.00		54.00		59.00		0.00		59.00

Net Wells in Process of Drilling
Nine Months Ended June 30, 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		2.01		0.00		13.60		15.61		4.54		20.15
Developmental		1.00		59.99		124.00		184.99		1.80		186.79
Wells Completed
Exploratory		1.20		0.50		2.60		4.30		5.88		10.18
Developmental		1.00		58.99		113.00		172.99		1.80		174.79
Wells Plugged & Abandoned
Exploratory		1.42		0.00		0.00		1.42		0.00		1.42
Developmental		0.00		2.00		2.00		4.00		0.00		4.00
Wells in Process - End of Period
Exploratory		1.41		0.00		21.00		22.41		0.79		23.20
Developmental		0.67		4.00		53.00		57.67		0.00		57.67

Page 23

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Fiscal 2008 Financial & Operating Guidance

Total Production (Bcfe)		38 - 44
Production by Division (Bcfe)
Gulf		14.5 - 17.5
East		6.5 - 7.5
West		17 - 19
Crude Oil Average 2008 NYMEX ($/Bbl) as of July 24, 2007 (without hedges):			$	72.69
Forecast price differentials
Gulf	-$2.00 to -$5.00
East	-$3.00 to -$5.00
West	-$9.00 to -$13.00
Natural Gas Average 2008 NYMEX ($/Mmbtu) as of July 24, 2007 (without hedges):			$	7.79
Forecast price differentials
Gulf	-$0.25 to -$0.75
East	-$0.25 to +$0.25
West	-$1.00 to -$1.50
Cost and Expenses $  per Mcfe
Lease Operating Expenses	$	1.10 - $1.25
Depreciation, Depletion and Amortization	$	2.20 - $2.30
Other Taxes (% of Revenue)	$	0.20 - $0.25
Other Operating Expenses	$	6M - $7M
General and Administrative	$	20M - $22M

	Capital Investment by Division	Number of Wells to be Drilled
Gulf	$50M — $52M	4 — 8
East	$57M — $60M	230 — 270
West	$44M — $47M	75 — 90
Total	$151M — $159M

Page 24

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

Utility Throughput — (millions of cubic feet — MMcf)

	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Retail Sales:
Residential Sales		10,679		8,740		1,939			56,729		55,071		1,658
Commercial Sales		1,836		1,459		377			10,132		9,940		192
Industrial Sales		113		114		(1	)		628		900		(272	)
		12,628		10,313		2,315			67,489		65,911		1,578
Off-System Sales		467		—		467			467		—		467
Transportation		12,981		12,185		796			53,556		48,646		4,910
		26,076		22,498		3,578			121,512		114,557		6,955

Pipeline & Storage Throughput- (MMcf)

	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Firm Transportation - Affiliated		19,817		15,753		4,064			100,563		92,615		7,948
Firm Transportation - Non-Affiliated		58,638		54,867		3,771			172,950		195,655		(22,705	)
Interruptible Transportation		1,670		2,220		(550	)		3,597		7,774		(4,177	)
		80,125		72,840		7,285			277,110		296,044		(18,934	)

Energy Marketing Volumes

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
					Increase						Increase
	2007		2006		(Decrease)		2007		2006		(Decrease)
Natural Gas (MMcf)		13,014		11,190		1,824		44,063		38,496		5,567

Timber Board Feet (Thousands)

	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2007		2006		(Decrease)			2007		2006		(Decrease)
Log Sales		1,724		1,767		(43	)		6,458		7,540		(1,082	)
Green Lumber Sales		2,709		3,126		(417	)		6,619		8,082		(1,463	)
Kiln-dried Lumber Sales		4,001		4,240		(239	)		10,953		13,239		(2,286	)
		8,434		9,133		(699	)		24,030		28,861		(4,831	)

Page 25

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2008 EARNINGS GUIDANCE AND SENSITIVITY

Earnings per share sensitivity to changes

Fiscal 2008 (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

$

2.45

-

$

2.65

+ $0.09

- $0.09

+ $0.08

- $0.08

NYMEX Settlement Prices at July 24, 2007
	Natural Gas		Oil
	($ per MMBtu)		($ per Bbl)
Oct-07	$	6.128	$	73.39
Nov-07	$	7.078	$	73.25
Dec-07	$	8.028	$	73.10
Jan-08	$	8.468	$	72.95
Feb-08	$	8.488	$	72.82
Mar-08	$	8.338	$	72.70
Apr-08	$	7.713	$	72.59
May-08	$	7.678	$	72.48
Jun-08	$	7.768	$	72.39
Jul-08	$	7.866	$	72.29
Aug-08	$	7.939	$	72.19
Sep-08	$	7.994	$	72.09
Average	$	7.791	$	72.69

*

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

^

This sensitivity table is current as of August 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 26

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

Quarter Ended June 30 (unaudited)	2007		2006
Operating Revenues	$	463,145,000	$	415,452,000
Net Income Available for Common Stock	$	46,798,000	$	111,000
Earnings Per Common Share:
Basic	$	0.56	$	—
Diluted	$	0.55	$	—
Weighted Average Common Shares:
Used in Basic Calculation		83,483,718		84,013,556
Used in Diluted Calculation		85,668,055		86,016,131
Nine Months Ended June 30 (unaudited)
Operating Revenues	$	1,779,541,000	$	2,017,189,000
Net Income Available for Common Stock	$	179,765,000	$	136,123,000
Earnings Per Common Share:
Basic	$	2.17	$	1.62
Diluted	$	2.11	$	1.58
Weighted Average Common Shares:
Used in Basic Calculation		83,018,583		84,231,490
Used in Diluted Calculation		85,192,777		86,150,927
Twelve Months Ended June 30 (unaudited)
Operating Revenues	$	2,074,010,000	$	2,304,253,000
Income from Continuing Operations	$	181,733,000	$	154,435,000
Income from Discontinued Operations, Net of Tax		—		30,900,000
Net Income Available for Common Stock	$	181,733,000	$	185,335,000
Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	2.19	$	1.83
Income from Discontinued Operations		—		0.37
Net Income Available for Common Stock	$	2.19	$	2.20
Diluted:
Income from Continuing Operations	$	2.13	$	1.79
Income from Discontinued Operations		—		0.36
Net Income Available for Common Stock	$	2.13	$	2.15
Weighted Average Common Shares:
Used in Basic Calculation		83,122,932		84,205,652
Used in Diluted Calculation		85,290,812		86,063,076