National Fuel Gas Company 8-K

Exhibit 99


		National Fuel Gas Company		Financial News


		6363 Main Street/Williamsville, NY 14221

		James C. Welch Investor Relations 716-857-6987
Release Date:	Immediate August 7, 2008
		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 earnings for the third quarter of its 2008 fiscal year and for the nine months ended June 30, 2008.

HIGHLIGHTS

•

Earnings of $59.9 million, or $0.72 per share, for the third quarter were up 28% from the prior year, an increase of $13.1 million, or $0.17 per share. Increased earnings in the Exploration and Production segment provided the majority of the increase. Higher average commodity prices realized and increased natural gas production were the main drivers of the higher earnings.

•

Quarterly operating results before items impacting comparability increased 71% to $0.72 per share, an increase of $0.30 per share from the prior year’s third quarter. Operating results increased in the Exploration and Production, Pipeline and Storage, and Utility segments from the prior year’s third quarter.

•

The Company is increasing its GAAP earnings guidance for fiscal 2008 earnings to a range of $3.10 to $3.20 per share. It had previously been in the range of $2.90 to $3.00 per share.

•

A conference call is scheduled for Friday, August 8, 2008, at 11:00 a.m. Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chief Executive Officer and President of National Fuel Gas Company stated: “This was another outstanding quarter for the Company. Our GAAP earnings of $0.72 per share set a record for earnings in the third quarter, as did operating results, which increased

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71 percent quarter over quarter. Much of this growth is due to higher average commodity prices realized in our Exploration and Production segment and higher natural gas production in the Gulf of Mexico and Appalachia. Our Pipeline and Storage and Utility segments also posted strong results for the quarter.”

“We are pleased to report continued progress toward achieving a completion date of November 2008 for the Empire Connector Pipeline. Of course, our target in-service date is contingent on the downstream Millennium Pipeline being ready to accept deliveries. Our operating staff will be coordinating our commencement of deliveries with the operators of Millennium. It is our intent to continue to grow this important segment of our regulated business to enhance the stable and consistent base of earnings that these assets provide.”

Smith continued: “We will continue to aggressively pursue long-lived reserve opportunities on our Appalachian mineral acreage. Based on the success of our Upper Devonian drilling program in Appalachia, and the Marcellus shale potential across a portion of this acreage, we have increased our capital budget for fiscal 2009 in Appalachia to a range of $110 to $150 million, a significant increase from the 2008 budget of approximately $71 million.”

“While we are excited about our long-term growth opportunities in our Pipeline and Storage and Exploration and Production segments, we remain concerned about the immediate impact high energy costs are having on our Utility customers. While the price of natural gas is set by the market, and therefore is principally determined by the forces of supply and demand, we are working hard to help our Utility customers prepare for the coming heating season by encouraging them to take steps now to become as energy efficient as possible and to be aware of the array of programs and services we offer to help them manage their bills.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended June 30, 2008 of $59.9 million, an increase of $13.1 million, or $0.17 per share, from the prior year’s third quarter of $46.8 million, or $0.55 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, 2008, of $225.5 million, or $2.65 per share, increased $45.7 million, or $0.54 per share, from the same period in the prior year, where earnings were $179.8 million, or $2.11 per share.

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	Three Months					Nine Months
	Ended June 30,					Ended June 30,
	2008		2007			2008			2007
(in thousands except per share amounts)
Reported GAAP earnings	$	59,855	$	46,798		$	225,463		$	179,765
Items impacting comparability¹:
Gain on sale of turbine							(586	)
Reversal of reserve for preliminary project costs				(4,787	)					(4,787	)
Income from discontinued operations				(5,586	)					(12,385	)
Resolution of purchased gas contingency										(2,344	)
Discontinuation of hedge accounting										(1,888	)


Operating results	$	59,855	$	36,425		$	224,877		$	158,361


Reported GAAP earnings per share	$	0.72	$	0.55		$	2.65		$	2.11
Items impacting comparability¹:
Gain on sale of turbine							(0.01	)
Reversal of reserve for preliminary project costs				(0.06	)					(0.06	)
Income from discontinued operations				(0.07	)					(0.15	)
Resolution of purchased gas contingency										(0.03	)
Discontinuation of hedge accounting										(0.02	)


Earnings excluding these items	$	0.72	$	0.42		$	2.64		$	1.85


¹		See discussion of these individual items below.

As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s operating results when comparing the quarter and nine months ended June 30, 2008, to the comparable periods in fiscal 2007. Excluding these items, most of which occurred in fiscal 2007, operating results for the current third quarter of $59.9 million, or $0.72 per share, increased $23.4 million, or $0.30 per share. Excluding these items for the nine month period ended June 30, 2008, operating results of $224.9 million, or $2.64 per share, increased $66.5 million, or $0.79 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 11 through 14 of this report. It may be helpful to refer to those tables while reviewing this discussion.)

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and purchases natural gas and oil reserves in California, in the Appalachian region, and in the Gulf of Mexico. Seneca previously had Canadian Exploration and Production operations, which it sold on August 31, 2007. As a

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result of that sale, the Company has presented the Canadian operations as discontinued operations.

The Exploration and Production segment’s earnings in the third quarter of fiscal 2008 of $39.8 million, or $0.48 per share, increased $15.4 million, or $0.19 per share, when compared with the prior year’s third quarter. Excluding earnings from discontinued operations discussed below, operating results in the Exploration and Production segment increased $20.9 million, or $0.26 per share, for the third quarter of fiscal 2008. The increase was primarily due to higher crude oil and natural gas prices realized after hedging and higher natural gas production. For the quarter ended June 30, 2008, the weighted average oil price received by Seneca (after hedging) was $89.55 per Bbl, an increase of $36.01 per Bbl, or 67.3 percent, from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended June 30, 2008, was $9.73 per thousand cubic feet (“Mcf”), an increase of $2.19 per Mcf, or 29.0 percent. Lower interest expense during the quarter also contributed to the growth in operating results.

Overall production for the quarter was 10.3 Bcfe, an increase of 0.9 Bcfe compared to the prior year’s quarter. A 26.4 percent increase in natural gas production more than offset a drop in crude oil production. The increase in natural gas production occurred in the Gulf of Mexico where production increased 0.7 billion cubic feet (“Bcf”) or 30.3 percent mainly due to the production from the High Island 24L field that came on production in October 2007. Production in the Appalachian region was up 0.5 Bcf, or 41.6 percent, over the prior year’s quarter. The decrease in crude oil volumes occurred mostly in the Gulf Division and was attributable to the natural production decline of Seneca’s properties.

Other items impacting operating results for the quarter were higher depletion expense, lease operating expenses (“LOE”), state income taxes and general and administrative expenses. The increase in depletion expense was caused by higher production and a $0.29 increase in the per unit depletion rate, which was mainly due to the reduction in proved reserves in California, primarily in the Midway Sunset field, at the end of fiscal 2007. That reduction resulted from an audit by Netherland, Sewell & Associates which determined that reduced performance from certain wells in the field supported a reduction in proved reserves. The increase in LOE is due to the High Island 24L field that began production in October 2007, higher steaming costs in California and an increase in costs associated with a higher number of producing properties in Appalachia.

The Exploration and Production segment’s earnings of $108.4 million, or $1.28 per share, for the nine months ended June 30, 2008, increased $43.4 million, or $0.52 per share, when compared with the nine months ended June 30, 2007. Excluding earnings from discontinued operations, operating results for the nine months ended June 30, 2008, increased $55.8 million, or $0.67 per share, from the prior year. The increase was primarily due to higher crude oil and natural gas prices realized after hedging and was also significantly impacted by higher natural gas production. For the nine months ended June 30, 2008, the weighted average oil price received by Seneca (after hedging) was $79.97 per Bbl, an increase of $31.58 per Bbl, or 65.3 percent, from the prior year’s nine month period. The weighted average natural gas price received by Seneca (after hedging) for the nine months ended June 30, 2008, was $8.95 per Mcf, an increase of $1.66 per Mcf, or 22.8 percent. Overall production for the nine months ended June 30, 2008, was 31.3 Bcfe, an increase of 2.0 Bcfe, compared to the prior year’s nine month period.

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An increase in natural gas production of 17.6 percent more than offset a 4.0 percent decline in crude oil production. Higher interest income and lower interest expense during the current nine month period also contributed to the increase in operating results.

Other items impacting operating results for the nine months ended June 30, 2008, were higher depletion expense, LOE, general and administrative expenses, state income taxes and mark-to-market adjustments to recognize hedge ineffectiveness on certain derivative financial instruments used to hedge prices on Seneca’s oil and gas production. The increase in depletion expense is due to higher production and a higher per unit rate as discussed above. Similar to the quarterly results described above, the increase in LOE is due to the High Island 24L field that began production in October 2007, higher steaming costs in California, and an increase in costs associated with a higher number of producing properties in Appalachia.

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 $12.5 million, or $0.15 per share, for the quarter ended June 30, 2008, decreased $2.9 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 in the prior year’s third quarter of a $4.8 million reserve for preliminary project costs on the Empire Connector project. Empire recorded a reserve against project development costs until such time that it was probable that the project would be built and placed in service. Excluding this item, operating results for the Pipeline and Storage segment increased $1.9 million or $0.03 per share. Higher efficiency gas revenue due to both higher natural gas prices and higher retained volumes compared to the prior year’s quarter was the primary reason for the increase. An increase in the allowance for funds used during construction (“AFUDC”) resulting from the construction of the Empire Connector and lower income taxes, partially offset by higher interest expense, also contributed to the increase in operating results for the quarter.

The Pipeline and Storage segment’s earnings of $40.9 million, or $0.48 per share, for the nine months ended June 30, 2008, decreased $2.1 million, or $0.03 per share, when compared with the nine months ended June 30, 2007. The comparability of the results for the nine months ended June 30, 2008, is impacted by the reversal in the prior year of a $4.8 million reserve for preliminary project costs on the Empire Connector project discussed 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. Excluding these items, operating results increased $4.5 million for the nine months ended June 30, 2008, mainly due to higher transportation and storage revenues and higher efficiency gas revenues. Higher AFUDC also contributed to the increase in operating results. Higher operating expenses and interest expense during the nine month period partially offset those items.

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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 $7.8 million, or $0.09 per share for the quarter ended June 30, 2008, increased $4.1 million, or $0.05 per share when compared with the prior year’s third quarter; however, the results are not directly comparable to the prior year’s third quarter due to a rate design change in the New York Division discussed below.

In the New York Division, earnings increased $4.4 million or $0.05 per share. On December 21, 2007, the New York Public Service Commission issued an order allowing Distribution to increase annual revenues by $1.8 million. In addition to the revenue increase, the order approved a rate design change, which allows Distribution to recover a greater amount of its operating costs in the minimum bill amount. This results in shifting more than $4.3 million of earnings from the second quarter of fiscal 2008 and spreading it to the third and fourth quarters of the fiscal year. As a result of this change, earnings for the third quarter of fiscal 2008 increased from the third quarter of fiscal 2007. Also contributing to the increase in earnings was a regulatory adjustment in the third quarter of fiscal 2007 that did not recur in 2008, a lower effective tax rate and lower operating expenses mostly related to postretirement benefits. Partially offsetting this increase was a decrease in customer usage per account. In the Pennsylvania Division, earnings decreased $0.3 million. A decrease in customer usage per account was partially offset by lower operating expense compared to the prior year’s third quarter.

The Utility segment’s earnings of $62.2 million, or $0.73 per share, for the nine months ended June 30, 2008, increased $7.9 million, or $0.09 per share, compared to the nine months ended June 30, 2007. Earnings in Distribution’s New York Division for the nine months ended June 30, 2008, of $41.2 million increased $5.2 million, or $0.06 per share, compared to the prior year. The increase is mainly due to lower postretirement benefits and bad debt expenses, lower property and other taxes, and the positive impact of certain routine regulatory adjustments. The impact of these items more than offset the impact on earnings of the rate design change included in the rate order discussed above.

For the nine months ended June 30, 2008, earnings in Distribution’s Pennsylvania Division of $21.0 million, or $0.25 per share, increased $2.7 million, or $0.03 per share, compared to the prior year. Earnings increased primarily due to an increase in base rates, higher usage per customer and a decrease in bad debt expense. On January 1, 2007, Distribution implemented a Settlement Agreement approved by the Pennsylvania Public Utility Commission that provided for a $14.3 million (before tax) annual base rate increase. Warmer weather during the nine months ended June 30, 2008 partially offset the increase in earnings.

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.

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The Energy Marketing segment’s earnings for the quarter ended June 30, 2008, of $0.5 million, decreased $0.8 million, or $0.01 per share, compared to the third quarter of last year, primarily due to higher bad debt expense.

Earnings for the nine months ended June 30, 2008, in the Energy Marketing segment of $7.1 million, or $0.08 per share, decreased $1.4 million, or $0.02 per share, from the prior period. The comparability of the 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 of fiscal 2007. Excluding this item, operating results for the nine months ended June 30, 2008, increased $1.0 million, or $0.01 per share, compared to the prior year, mainly due to increased sales throughput. NFR also benefited from the profitable sale of certain gas held as inventory and from the marketing flexibility that it derives from its contracts for significant storage capacity. Higher bad debt expense partially offset these items.

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 loss for the quarter ended June 30, 2008, of $2.1 million, or $0.02 per share, increased $1.7 million, or $0.02 per share from the prior year’s third quarter loss of $0.4 million, or less than $0.01 per share. The increased loss is due to lower sales volumes resulting from a combination of reduced demand and wet weather that hampered harvesting.

Earnings for the nine months ended June 30, 2008, of $2.2 million, decreased $0.8 million from the prior year’s earnings. Although overall sales volumes increased for the current nine month period, a decrease in high margin cherry veneer logs and cherry kiln dry lumber, combined with lower prices on most products, were the main reasons for the decrease in earnings.

Corporate and All Other

Other direct, wholly-owned subsidiaries of the Company include: 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, 2008, were $1.3 million, a $1.1 million decrease compared to the prior year’s third quarter earnings. Higher income from unconsolidated subsidiaries and lower income taxes were more than offset by higher interest expense and higher operating expenses mainly related to the proxy contest initiated by a shareholder.

Earnings in the Corporate and All Other category for the nine months ended June 30, 2008, were $4.6 million, a decrease of $1.3 million when compared to the prior year’s earnings. The comparability of the nine month results is impacted by a $0.6 million gain on the sale of a gas-

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powered turbine the Company had previously planned to use in the development of a co-generation plant. Excluding this item, operating results decreased $1.9 million. Higher margins from the landfill gas operations, higher income from unconsolidated subsidiaries, lower interest expense and lower income taxes were more than offset by lower interest income and higher operating expenses mainly related to the proxy contest noted above.

Discontinued Operations

On August 31, 2007, Seneca completed the sale of its Canadian subsidiary. As a result of that sale, the Company has presented the Canadian operations as discontinued operations. Earnings in the third quarter of fiscal 2007 include earnings from discontinued operations of $5.6 million. There were no earnings from discontinued operations in the third quarter of fiscal 2008.

Earnings for the nine months ended June 30, 2007, include earnings from discontinued operations of $12.4 million. There were no earnings from discontinued operations for the nine months ended June 30, 2008.

EARNINGS GUIDANCE

The Company is increasing its GAAP earnings guidance for fiscal 2008 earnings to a range of $3.10 to $3.20 per share. Earnings guidance had previously been in the range of $2.90 to $3.00 per share.

The Company is providing preliminary GAAP guidance for fiscal 2009 in the range of $3.20 to $3.40 per share. This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 Bcfe and is based on an assumed average NYMEX price, exclusive of basis differential, of $9.50 per MMBtu for natural gas and $115 per Bbl for crude oil. Further details regarding the production guidance are included on page 25 of this document. The Company is currently exploring a possible sale of certain landfill gas related assets. The preliminary guidance for fiscal 2009 does not take into account any earnings impacts resulting from such possible sale or sales. If a sale were to occur, certain earnings that have historically been included in operating results would be changed to a non-operating classification, as would any gain or loss on the sale.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, August 8, 2008, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s Web site at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-578-5788, and using the passcode “35482868.” 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) 1-888-286-8010 using passcode “23769429.” Both the webcast and telephonic replay will be available until the close of business on Friday, August 15, 2008.

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National Fuel is an integrated energy company with $4.3 billion in assets comprised of the following five operating segments: Exploration and Production, Pipeline and Storage, Utility, 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 regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents, and downturns in economic activity including national or regional recessions; 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 of derivative financial instruments or the valuation of the Company’s natural gas and oil reserves; uncertainty of oil and gas reserve estimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including shortages, delays or unavailability of equipment and services required in drilling operations; significant changes from expectations in the Company’s actual production levels for natural gas or oil; 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; changes in laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations; 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; 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, from borrowings under our credit lines or other credit facilities or from issuances of other 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; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the market price of timber and the impact such changes might have on the types and quantity of timber harvested by the Company; 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

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2008


	Exploration &			Pipeline &						Energy						Corporate /
(Thousands of Dollars)	Production *			Storage			Utility			Marketing			Timber			All Other			Consolidated


Third quarter 2007 GAAP earnings	$	24,435		$	15,451		$	3,705		$	1,233		$	(364	)	$	2,338		$	46,798
Items impacting comparability:
Income from discontinued operations		(5,586	)																	(5,586	)
Reversal of reserve for preliminary project costs					(4,787	)														(4,787	)

Third quarter 2007 operating results		18,849			10,664			3,705			1,233			(364	)		2,338			36,425

Drivers of operating results
Higher (lower) crude oil prices		17,434																		17,434
Higher (lower) natural gas prices		8,259																		8,259
Higher (lower) natural gas production		5,963																		5,963
Higher (lower) crude oil production		(1,757	)																	(1,757	)
Lower (higher) lease operating expenses		(4,164	)																	(4,164	)

Higher (lower) efficiency gas revenues					1,216															1,216
Lower (higher) operating costs		(1,500	)		241			2,226			(785	)					(755	)		(573	)
Lower (higher) depreciation / depletion		(3,093	)											(237	)					(3,330	)
Lower (higher) property, franchise and other taxes								473												473

Base rate and minimum bill change in New York								1,702												1,702
Higher (lower) usage								(2,361	)											(2,361	)
Regulatory true-up adjustment								900												900

Income from unconsolidated subsidiaries																	413			413

Higher (lower) margins											128			(1,690	)					(1,562	)

Higher (lower) AFUDC**					1,021															1,021
Higher (lower) interest income																	156			156
Lower (higher) interest expense		2,106			(791	)											(1,282	)		33

Lower (higher) income tax expense / effective tax rate		(2,479	)		477			950									377			(675	)

All other / rounding		173			(294	)		253			(98	)		225			23			282


Third quarter 2008 operating results		39,791			12,534			7,848			478			(2,066	)		1,270			59,855
Items impacting comparability		—			—			—			—			—			—			—

Third quarter 2008 GAAP earnings	$	39,791		$	12,534		$	7,848		$	478		$	(2,066	)	$	1,270		$	59,855


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2008


	Exploration &			Pipeline &						Energy						Corporate /
	Production *			Storage			Utility			Marketing			Timber			All Other			Consolidated


Third quarter 2007 GAAP earnings	$	0.29		$	0.18		$	0.04		$	0.01		$	—		$	0.03		$	0.55
Items impacting comparability:
Income from discontinued operations		(0.07	)																	(0.07	)
Reversal of reserve for preliminary project costs					(0.06	)														(0.06	)

Third quarter 2007 operating results		0.22			0.12			0.04			0.01			—			0.03			0.42

Drivers of operating results
Higher (lower) crude oil prices		0.21																		0.21
Higher (lower) natural gas prices		0.10																		0.10
Higher (lower) natural gas production		0.07																		0.07
Higher (lower) crude oil production		(0.02	)																	(0.02	)
Lower (higher) lease operating expenses		(0.05	)																	(0.05	)

Higher (lower) efficiency gas revenues					0.01															0.01
Lower (higher) operating costs		(0.02	)		—			0.03			(0.01	)					(0.01	)		(0.01	)
Lower (higher) depreciation / depletion		(0.04	)											—						(0.04	)
Lower (higher) property, franchise and other taxes								0.01												0.01

Base rate and minimum bill change in New York								0.02												0.02
Higher (lower) usage								(0.03	)											(0.03	)
Regulatory true-up adjustment								0.01												0.01

Income from unconsolidated subsidiaries																	0.01			0.01

Higher (lower) margins											—			(0.02	)					(0.02	)

Higher (lower) AFUDC**					0.01															0.01
Higher (lower) interest income																	—			—
Lower (higher) interest expense		0.03			(0.01	)											(0.02	)		—

Lower (higher) income tax expense / effective tax rate		(0.03	)		0.01			0.01									0.01			—

All other / rounding		0.01			0.01			—			—			—			—			0.02


Third quarter 2008 operating results		0.48			0.15			0.09			—			(0.02	)		0.02			0.72
Items impacting comparability		—			—			—			—			—			—			—

Third quarter 2008 GAAP earnings	$	0.48		$	0.15		$	0.09		$	—		$	(0.02	)	$	0.02		$	0.72


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

Page 13

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2008


	Exploration &			Pipeline &						Energy						Corporate /
(Thousands of Dollars)	Production *			Storage			Utility			Marketing			Timber			All Other			Consolidated


Nine months ended June 30, 2007 GAAP earnings	$	64,958		$	43,075		$	54,322		$	8,431		$	3,053		$	5,926		$	179,765
Items impacting comparability:
Income from discontinued operations		(12,385	)																	(12,385	)
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 operating results		52,573			36,400			54,322			6,087			3,053			5,926			158,361

Drivers of operating results
Higher (lower) crude oil prices		47,657																		47,657
Higher (lower) natural gas prices		18,763																		18,763
Higher (lower) natural gas production		12,319																		12,319
Higher (lower) crude oil production		(3,089	)																	(3,089	)
Derivative mark to market adjustment		(1,283	)																	(1,283	)
Lower (higher) lease operating expenses		(9,035	)																	(9,035	)

Higher (lower) transportation and storage revenues					2,527															2,527
Higher (lower) efficiency gas revenues					2,049															2,049
Lower (higher) operating costs		(3,764	)		(908	)		5,578			(1,019	)					(4,500	)		(4,613	)
Lower (higher) depreciation / depletion		(8,950	)					456						(603	)					(9,097	)
Lower (higher) property, franchise and other taxes								895												895

Warmer weather in Pennsylvania								(1,451	)											(1,451	)
Base rate and minimum bill change in New York								(3,121	)											(3,121	)
Base rate increase in Pennsylvania								2,572												2,572
Higher (lower) usage								1,277												1,277
Regulatory true-up adjustments								1,612												1,612

Income from unconsolidated subsidiaries																	1,148			1,148

Higher (lower) margins											1,851			(127	)		330			2,054

Higher (lower) AFUDC**					2,251															2,251
Higher (lower) interest income		1,631															(586	)		1,045
Lower (higher) interest expense		4,497			(1,137	)											736			4,096

Lower (higher) income tax expense / effective tax rate		(3,408	)														770			(2,638	)

All other / rounding		474			(251	)		88			160			(109	)		216			578


Nine months ended June 30, 2008 operating results		108,385			40,931			62,228			7,079			2,214			4,040			224,877
Items impacting comparability:
Gain on sale of turbine																	586			586

Nine months ended June 30, 2008 GAAP earnings	$	108,385		$	40,931		$	62,228		$	7,079		$	2,214		$	4,626		$	225,463


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

Page 14

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2008


	Exploration &			Pipeline &						Energy						Corporate /
	Production *			Storage			Utility			Marketing			Timber			All Other			Consolidated
Nine months ended June 30, 2007 GAAP earnings	$	0.76		$	0.51		$	0.64		$	0.10		$	0.04		$	0.06		$	2.11
Items impacting comparability:
Income from discontinued operations		(0.15	)																	(0.15	)
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 operating results		0.61			0.43			0.64			0.07			0.04			0.06			1.85

Drivers of operating results
Higher (lower) crude oil prices		0.56																		0.56
Higher (lower) natural gas prices		0.22																		0.22
Higher (lower) natural gas production		0.14																		0.14
Higher (lower) crude oil production		(0.04	)																	(0.04	)
Derivative mark to market adjustment		(0.01	)																	(0.01	)
Lower (higher) lease operating expenses		(0.11	)																	(0.11	)

Higher (lower) transportation and storage revenues					0.03															0.03
Higher (lower) efficiency gas revenues					0.02															0.02
Lower (higher) operating costs		(0.04	)		(0.01	)		0.07			(0.01	)					(0.05	)		(0.04	)
Lower (higher) depreciation / depletion		(0.10	)					0.01						(0.01	)					(0.10	)
Lower (higher) property, franchise and other taxes								0.01												0.01

Warmer weather in Pennsylvania								(0.02	)											(0.02	)
Base rate and minimum bill change in New York								(0.04	)											(0.04	)
Base rate increase in Pennsylvania								0.03												0.03
Higher (lower) usage								0.01												0.01
Regulatory true-up adjustments								0.02												0.02

Income from unconsolidated subsidiaries																	0.01			0.01

Higher (lower) margins											0.02			—			—			0.02

Higher (lower) AFUDC**					0.03															0.03
Higher (lower) interest income		0.02															(0.01	)		0.01
Lower (higher) interest expense		0.05			(0.01	)											0.01			0.05

Lower (higher) income tax expense / effective tax rate		(0.04	)														0.01			(0.03	)

All other / rounding		0.02			(0.01	)		—			—			—			0.01			0.02


Nine months ended June 30, 2008 operating results		1.28			0.48			0.73			0.08			0.03			0.04			2.64
Items impacting comparability:
Gain on sale of turbine																	0.01			0.01

Nine months ended June 30, 2008 GAAP earnings	$	1.28		$	0.48		$	0.73		$	0.08		$	0.03		$	0.05		$	2.65


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

Page 15

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	(Unaudited)						(Unaudited)
SUMMARY OF OPERATIONS	2008			2007			2008			2007
Operating Revenues	$	548,382		$	448,779		$	2,002,503		$	1,737,537


Operating Expenses:
Purchased Gas		272,893			219,075			1,082,340			938,918
Operation and Maintenance		102,602			90,390			325,642			305,502
Property, Franchise and Other Taxes		19,135			17,622			58,206			54,562
Depreciation, Depletion and Amortization		42,804			37,759			129,337			115,561

		437,434			364,846			1,595,525			1,414,543

Operating Income		110,948			83,933			406,978			322,994

Other Income (Expense):
Income from Unconsolidated Subsidiaries		1,561			926			4,866			3,099
Interest Income		3,086			1,377			8,356			3,098
Other Income		1,649			787			4,982			4,028
Interest Expense on Long-Term Debt		(19,468	)		(18,226	)		(52,045	)		(52,158	)
Other Interest Expense		(1,199	)		(1,512	)		(4,209	)		(4,877	)


Income from Continuing Operations Before Income Taxes		96,577			67,285			368,928			276,184

Income Tax Expense		36,722			26,073			143,465			108,804


Income from Continuing Operations		59,855			41,212			225,463			167,380

Income from Discontinued Operations, Net of Tax		—			5,586			—			12,385


Net Income Available for Common Stock	$	59,855		$	46,798		$	225,463		$	179,765


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	0.74		$	0.49		$	2.72		$	2.02
Income from Discontinued Operations		—			0.07			—			0.15

Net Income Available for Common Stock	$	0.74		$	0.56		$	2.72		$	2.17


Diluted:
Income from Continuing Operations	$	0.72		$	0.48		$	2.65		$	1.96
Income from Discontinued Operations		—			0.07			—			0.15

Net Income Available for Common Stock	$	0.72		$	0.55		$	2.65		$	2.11


Weighted Average Common Shares:
Used in Basic Calculation		81,342,788			83,483,718			82,789,748			83,018,583

Used in Diluted Calculation		83,712,193			85,668,055			85,000,381			85,192,777

Page 16

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


	June 30,			September 30,
(Thousands of Dollars)	2008			2007


ASSETS
Property, Plant and Equipment	$	4,730,708		$	4,461,586
Less — Accumulated Depreciation, Depletion and Amortization		1,686,616			1,583,181

Net Property, Plant and Equipment		3,044,092			2,878,405


Current Assets:
Cash and Temporary Cash Investments		259,198			124,806
Cash Held in Escrow		—			61,964
Hedging Collateral Deposits		30,778			4,066
Receivables — Net		302,522			172,380
Unbilled Utility Revenue		19,580			20,682
Gas Stored Underground		53,735			66,195
Materials and Supplies — at average cost		33,310			35,669
Unrecovered Purchased Gas Costs		5,680			14,769
Other Current Assets		31,767			45,057
Deferred Income Taxes		84,297			8,550

Total Current Assets		820,867			554,138


Other Assets:
Recoverable Future Taxes		83,453			83,954
Unamortized Debt Expense		14,501			12,070
Other Regulatory Assets		129,640			137,577
Deferred Charges		5,235			5,545
Other Investments		82,474			85,902
Investments in Unconsolidated Subsidiaries		16,916			18,256
Goodwill		5,476			5,476
Intangible Assets		26,839			28,836
Prepaid Pension and Post-Retirement Benefit Costs		56,926			61,006
Fair Value of Derivative Financial Instruments		—			9,188
Other		7,442			8,059

Total Other Assets		428,902			455,869

Total Assets	$	4,293,861		$	3,888,412


CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized — 200,000,000 Shares; Issued and Outstanding — 81,473,550 Shares and 83,461,308 Shares, Respectively	$	81,474		$	83,461
Paid in Capital		583,693			569,085
Earnings Reinvested in the Business		1,024,377			983,776

Total Common Shareholder Equity Before Items of Other Comprehensive Loss		1,689,544			1,636,322
Accumulated Other Comprehensive Loss		(105,872	)		(6,203	)

Total Comprehensive Shareholders’ Equity		1,583,672			1,630,119
Long-Term Debt, Net of Current Portion		999,000			799,000

Total Capitalization		2,582,672			2,429,119


Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		—			—
Current Portion of Long-Term Debt		100,000			200,024
Accounts Payable		162,838			109,757
Amounts Payable to Customers		12,864			10,409
Dividends Payable		26,479			25,873
Interest Payable on Long-Term Debt		15,774			18,158
Customer Advances		—			22,863
Other Accruals and Current Liabilities		136,458			36,062
Fair Value of Derivative Financial Instruments		180,255			16,200

Total Current and Accrued Liabilities		634,668			439,346


Deferred Credits:
Deferred Income Taxes		605,818			575,356
Taxes Refundable to Customers		14,037			14,026
Unamortized Investment Tax Credit		4,866			5,392
Cost of Removal Regulatory Liability		101,251			91,226
Other Regulatory Liabilities		95,846			76,659
Post-Retirement Liabilities		60,152			70,555
Asset Retirement Obligations		74,653			75,939
Other Deferred Credits		119,898			110,794

Total Deferred Credits		1,076,521			1,019,947

Commitments and Contingencies		—			—

Total Capitalization and Liabilities	$	4,293,861		$	3,888,412

Page 17

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


	Nine Months Ended
	June 30,
(Thousands of Dollars)	2008			2007


Operating Activities:
Net Income Available for Common Stock	$	225,463		$	179,765
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		129,337			125,986
Deferred Income Taxes		27,603			27,107
Income from Unconsolidated Subsidiaries, Net of Cash Distributions		1,340			(1,486	)
Excess Tax Benefits Associated with Stock-Based Compensation Awards		(16,275	)		(13,689	)
Other		(1,120	)		4,722
Change in:
Hedging Collateral Deposits		(26,712	)		16,276
Receivables and Unbilled Utility Revenue		(129,102	)		(43,733	)
Gas Stored Underground and Materials and Supplies		14,819			34,725
Unrecovered Purchased Gas Costs		9,089			12,970
Prepayments and Other Current Assets		17,370			30,685
Accounts Payable		53,081			(12,560	)
Amounts Payable to Customers		2,455			(4,738	)
Customer Advances		(22,863	)		(29,417	)
Other Accruals and Current Liabilities		94,031			77,842
Other Assets		19,178			918
Other Liabilities		17,373			(821	)

Net Cash Provided by Operating Activities	$	415,067		$	404,552


Investing Activities:
Capital Expenditures		($264,728	)		($206,509	)
Investment in Partnership		—			(3,300	)
Cash Held in Escrow		58,397			—
Net Proceeds from Sale of Oil and Gas Producing Properties		5,675			5,137
Other		(3,414	)		(1,072	)

Net Cash Used in Investing Activities		($204,070	)		($205,744	)


Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	16,275		$	13,689
Shares Repurchased under Repurchase Plan		(129,592	)		(43,344	)
Net Proceeds from Issuance of Long-Term Debt		296,655			—
Reduction of Long-Term Debt		(200,024	)		(119,550	)
Dividends Paid on Common Stock		(77,204	)		(74,748	)
Proceeds From Issuance of Common Stock		17,285			16,819

Net Cash Used In Financing Activities		($76,605	)		($207,134	)

Effect of Exchange Rates on Cash		—			1,245

Net Increase (Decrease) in Cash and Temporary Cash Investments		134,392			(7,081	)
Cash and Temporary Cash Investments at Beginning of Period		124,806			69,611

Cash and Temporary Cash Investments at June 30	$	259,198		$	62,530

Page 18

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,
EXPLORATION AND PRODUCTION SEGMENT	2008			2007			Variance			2008			2007			Variance

Operating Revenues	$	126,154		$	80,028		$	46,126		$	348,829		$	233,708		$	115,121


Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		5,924			4,999			925			18,676			13,703			4,973
Lease Operating Expense		14,964			10,788			4,176			41,112			32,332			8,780
All Other Operation and Maintenance Expense		3,708			2,326			1,382			7,727			6,908			819
Property, Franchise and Other Taxes (Lease Operating Expense)		3,518			1,288			2,230			8,394			3,274			5,120
Depreciation, Depletion and Amortization		23,249			18,491			4,758			70,098			56,330			13,768

		51,363			37,892			13,471			146,007			112,547			33,460


Operating Income		74,791			42,136			32,655			202,822			121,161			81,661

Other Income (Expense):
Interest Income		2,247			2,111			136			9,280			6,771			2,509
Other Income		—			—			—			18			—			18
Interest Expense on Long-Term Debt		—			(1,188	)		1,188			—			(1,188	)		1,188
Other Interest Expense		(10,457	)		(12,510	)		2,053			(32,675	)		(38,406	)		5,731

Income from Continuing Operations Before Income Taxes		66,581			30,549			36,032			179,445			88,338			91,107
Income Tax Expense		26,790			11,700			15,090			71,060			35,765			35,295

Income from Continuing Operations		39,791			18,849			20,942			108,385			52,573			55,812

Income from Discontinued Operations, Net of Tax		—			5,586			(5,586	)		—			12,385			(12,385	)


Net Income	$	39,791		$	24,435		$	15,356		$	108,385		$	64,958		$	43,427


Income from Continuing Operations Per Share (Diluted)	$	0.48		$	0.22		$	0.26		$	1.28		$	0.61		$	0.67
Income from Discontinued Operations, Net of Tax, Per Share (Diluted)		—			0.07			(0.07	)		—			0.15			(0.15	)

Net Income Per Share (Diluted)	$	0.48		$	0.29		$	0.19		$	1.28		$	0.76		$	0.52


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
PIPELINE AND STORAGE SEGMENT	2008			2007			Variance			2008			2007			Variance

Revenues from External Customers	$	32,054		$	30,128		$	1,926		$	101,871		$	94,889		$	6,982
Intersegment Revenues		20,131			20,332			(201	)		61,340			61,585			(245	)

Total Operating Revenues		52,185			50,460			1,725			163,211			156,474			6,737


Operating Expenses:
Purchased Gas		(4	)		—			(4	)		(13	)		(11	)		(2	)
Operation and Maintenance		16,462			9,471			6,991			50,877			42,118			8,759
Property, Franchise and Other Taxes		4,007			4,182			(175	)		12,539			12,795			(256	)
Depreciation, Depletion and Amortization		8,344			7,995			349			24,629			24,851			(222	)

		28,809			21,648			7,161			88,032			79,753			8,279


Operating Income		23,376			28,812			(5,436	)		75,179			76,721			(1,542	)

Other Income (Expense):
Interest Income		562			100			462			726			224			502
Other Income		1,124			154			970			2,545			418			2,127
Interest Expense on Long-Term Debt		—			(21	)		21			(31	)		1,807			(1,838	)
Other Interest Expense		(4,350	)		(3,112	)		(1,238	)		(9,938	)		(8,140	)		(1,798	)


Income Before Income Taxes		20,712			25,933			(5,221	)		68,481			71,030			(2,549	)
Income Tax Expense		8,178			10,482			(2,304	)		27,550			27,955			(405	)

Net Income	$	12,534		$	15,451		$	(2,917	)	$	40,931		$	43,075		$	(2,144	)


Net Income Per Share (Diluted)	$	0.15		$	0.18		$	(0.03	)	$	0.48		$	0.51		$	(0.03	)

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,
UTILITY SEGMENT	2008			2007			Variance			2008			2007			Variance

Revenues from External Customers	$	217,339		$	210,604		$	6,735		$	1,067,194		$	1,000,860		$	66,334
Intersegment Revenues		3,154			2,586			568			13,567			12,556			1,011

Total Operating Revenues		220,493			213,190			7,303			1,080,761			1,013,416			67,345


Operating Expenses:
Purchased Gas		137,949			131,469			6,480			735,259			670,694			64,565
Operation and Maintenance		44,202			47,231			(3,029	)		157,980			165,446			(7,466	)
Property, Franchise and Other Taxes		11,120			11,688			(568	)		35,750			36,986			(1,236	)
Depreciation, Depletion and Amortization		9,625			10,053			(428	)		29,452			30,153			(701	)

		202,896			200,441			2,455			958,441			903,279			55,162


Operating Income		17,597			12,749			4,848			122,320			110,137			12,183

Other Income (Expense):
Interest Income		326			100			226			688			562			126
Other Income		279			273			6			883			926			(43	)
Other Interest Expense		(6,865	)		(6,697	)		(168	)		(21,770	)		(21,343	)		(427	)


Income Before Income Taxes		11,337			6,425			4,912			102,121			90,282			11,839
Income Tax Expense		3,489			2,720			769			39,893			35,960			3,933

Net Income	$	7,848		$	3,705		$	4,143		$	62,228		$	54,322		$	7,906


Net Income Per Share (Diluted)	$	0.09		$	0.04		$	0.05		$	0.73		$	0.64		$	0.09


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
ENERGY MARKETING SEGMENT	2008			2007			Variance			2008			2007			Variance

Operating Revenues	$	162,129		$	113,380		$	48,749		$	440,111		$	360,036		$	80,075


Operating Expenses:
Purchased Gas		159,339			110,765			48,574			423,991			343,047			80,944
Operation and Maintenance		2,384			1,199			1,185			5,170			3,711			1,459
Property, Franchise and Other Taxes		9			11			(2	)		32			46			(14	)
Depreciation, Depletion and Amortization		10			9			1			32			23			9

		161,742			111,984			49,758			429,225			346,827			82,398


Operating Income		387			1,396			(1,009	)		10,886			13,209			(2,323	)

Other Income (Expense):
Interest Income		206			359			(153	)		293			498			(205	)
Other Income		73			273			(200	)		206			590			(384	)
Other Interest Expense		(6	)		(2	)		(4	)		(133	)		(253	)		120


Income Before Income Taxes		660			2,026			(1,366	)		11,252			14,044			(2,792	)
Income Tax Expense		182			793			(611	)		4,173			5,613			(1,440	)

Net Income	$	478		$	1,233		$	(755	)	$	7,079		$	8,431		$	(1,352	)


Net Income Per Share (Diluted)	$	—		$	0.01		$	(0.01	)	$	0.08		$	0.10		$	(0.02	)

Page 20

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,
TIMBER SEGMENT	2008			2007			Variance			2008			2007			Variance

Operating Revenues	$	10,114		$	13,131		$	(3,017	)	$	40,438		$	43,079		$	(2,641	)

Operating Expenses:
Operation and Maintenance		11,448			11,919			(471	)		30,091			32,031			(1,940	)
Property, Franchise and Other Taxes		393			363			30			1,220			1,183			37
Depreciation, Depletion and Amortization		1,208			843			365			4,021			3,093			928

		13,049			13,125			(76	)		35,332			36,307			(975	)


Operating Income (Loss)		(2,935	)		6			(2,941	)		5,106			6,772			(1,666	)

Other Income (Expense):
Interest Income		233			310			(77	)		812			923			(111	)
Other Income		111			—			111			111			21			90
Other Interest Expense		(742	)		(808	)		66			(2,392	)		(2,403	)		11

Income (Loss) Before Income Taxes		(3,333	)		(492	)		(2,841	)		3,637			5,313			(1,676	)
Income Tax Expense (Benefit)		(1,267	)		(128	)		(1,139	)		1,423			2,260			(837	)

Net Income (Loss)	$	(2,066	)	$	(364	)	$	(1,702	)	$	2,214		$	3,053		$	(839	)

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


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
ALL OTHER	2008			2007			Variance			2008			2007			Variance

Revenues from External Customers	$	395		$	1,308		$	(913	)	$	3,564		$	4,387		$	(823	)
Intersegment Revenues		4,439			2,253			2,186			10,251			6,540			3,711

Total Operating Revenues		4,834			3,561			1,273			13,815			10,927			2,888

Operating Expenses:
Purchased Gas		3,229			1,910			1,319			7,941			5,560			2,381
Operation and Maintenance		1,184			1,007			177			3,297			2,763			534
Property, Franchise and Other Taxes		17			22			(5	)		57			69			(12	)
Depreciation, Depletion and Amortization		195			196			(1	)		588			589			(1	)

		4,625			3,135			1,490			11,883			8,981			2,902

Operating Income		209			426			(217	)		1,932			1,946			(14	)
Other Income (Expense):
Income from Unconsolidated Subsidiaries		1,561			926			635			4,866			3,099			1,767
Interest Income		65			4			61			108			11			97
Other Income		21			12			9			941			37			904
Other Interest Expense		(106	)		(662	)		556			(535	)		(1,999	)		1,464

Income Before Income Taxes		1,750			706			1,044			7,312			3,094			4,218
Income Tax Expense		644			248			396			2,175			1,183			992

Net Income	$	1,106		$	458		$	648		$	5,137		$	1,911		$	3,226

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

Page 21

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	2008			2007			Variance			2008			2007			Variance

Revenues from External Customers	$	197		$	200		$	(3	)	$	496		$	578		$	(82	)
Intersegment Revenues		961			853			108			2,883			2,616			267

Total Operating Revenues		1,158			1,053			105			3,379			3,194			185


Operating Expenses:
Operation and Maintenance		3,391			2,405			986			13,915			9,415			4,500
Property, Franchise and Other Taxes		71			68			3			214			209			5
Depreciation, Depletion and Amortization		173			172			1			517			522			(5	)

		3,635			2,645			990			14,646			10,146			4,500


Operating Loss		(2,477	)		(1,592	)		(885	)		(11,267	)		(6,952	)		(4,315	)

Other Income (Expense):
Interest Income		21,890			21,711			179			64,780			65,778			(998	)
Other Income		41			75			(34	)		278			2,036			(1,758	)
Interest Expense on Long-Term Debt		(19,468	)		(17,017	)		(2,451	)		(52,014	)		(52,777	)		763
Other Interest Expense		(1,116	)		(1,039	)		(77	)		(5,097	)		(4,002	)		(1,095	)

Income (Loss) Before Income Taxes		(1,130	)		2,138			(3,268	)		(3,320	)		4,083			(7,403	)
Income Tax Expense (Benefit)		(1,294	)		258			(1,552	)		(2,809	)		68			(2,877	)

Net Income (Loss)	$	164		$	1,880		$	(1,716	)	$	(511	)	$	4,015		$	(4,526	)


Net Income (Loss) Per Share (Diluted)	$	—		$	0.02		$	(0.02	)	$	(0.01	)	$	0.04		$	(0.05	)


	Three Months Ended									Nine Months Ended
	June 30,									June 30,
INTERSEGMENT ELIMINATIONS	2008			2007			Variance			2008			2007			Variance

Intersegment Revenues	$	(28,685	)	$	(26,024	)	$	(2,661	)	$	(88,041	)	$	(83,297	)	$	(4,744	)


Operating Expenses:
Purchased Gas		(27,620	)		(25,069	)		(2,551	)		(84,838	)		(80,372	)		(4,466	)
Operation and Maintenance		(1,065	)		(955	)		(110	)		(3,203	)		(2,925	)		(278	)

		(28,685	)		(26,024	)		(2,661	)		(88,041	)		(83,297	)		(4,744	)


Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest Income		(22,443	)		(23,318	)		875			(68,331	)		(71,669	)		3,338
Other Interest Expense		22,443			23,318			(875	)		68,331			71,669			(3,338	)


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


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

Page 22

NATIONAL FUEL GAS COMPANY

SEGMENT INFORMATION (Continued)
(Thousands of Dollars)


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
	(Unaudited)							(Unaudited)
					Increase									Increase
	2008		2007		(Decrease)			2008			2007			(Decrease)

Capital Expenditures:
Exploration and Production	$	75,681	$	36,870	$	38,811		$	140,543		$	112,789		$	27,754
Pipeline and Storage ⁽¹⁾		49,094		16,255		32,839			106,204			26,408			79,796
Utility		14,939		14,387		552			38,836			39,945			(1,109	)
Energy Marketing		6		41		(35	)		21			57			(36	)
Timber		31		1,056		(1,025	)		1,174			2,263			(1,089	)

Total Reportable Segments		139,751		68,609		71,142			286,778			181,462			105,316
All Other		77		3		74			129			87			42
Corporate		48		33		15			83			(538	)		621
Eliminations		—		—		—			(2,407	)		—			(2,407	)

Total Expenditures from Continuing Operations		139,876		68,645		71,231			284,583			181,011			103,572
Discontinued Operations		—		5,551		(5,551	)		—			25,498			(25,498	)

Total Capital Expenditures	$	139,876	$	74,196	$	65,680		$	284,583		$	206,509		$	78,074


⁽¹⁾		Amount for the quarter and nine months ended June 30, 2008 includes $19.9 million of accrued capital expenditures related to the Empire Connector project. This amount has been excluded from the Consolidated Statement of Cash Flows at June 30, 2008 since it represents a non-cash investing activity at that date.

DEGREE DAYS


							Percent Colder
							(Warmer) Than:
	Normal		2008		2007		Normal			Last Year
Three Months Ended June 30

Buffalo, NY		927		817		921		(11.9	)		(11.3	)
Erie, PA		885		762		900		(13.9	)		(15.3	)

Nine Months Ended June 30

Buffalo, NY		6,551		6,175		6,195		(5.7	)		(0.3	)
Erie, PA		6,142		5,737		5,930		(6.6	)		(3.3	)

Page 23

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)

Gas Production/Prices:
Production (MMcf)
Gulf Coast		3,019		2,317		702			8,868		7,934		934
West Coast		1,007		1,019		(12	)		3,010		2,883		127
Appalachia		1,793		1,266		527			5,538		3,998		1,540

Total Production from Continuing Operations		5,819		4,602		1,217			17,416		14,815		2,601
Canada — Discontinued Operations		—		1,639		(1,639	)		—		5,216		(5,216	)

Total Production		5,819		6,241		(422	)		17,416		20,031		(2,615	)


Average Prices (Per Mcf)
Gulf Coast	$	12.17	$	7.37	$	4.80		$	9.66	$	6.74	$	2.92
West Coast		10.61		7.20		3.41			8.43		6.76		1.67
Appalachia		11.53		8.59		2.94			9.25		7.71		1.54
Weighted Average for Continuing Operations		11.71		7.67		4.04			9.32		7.01		2.31
Weighted Average after Hedging for Continuing Operations		9.73		7.54		2.19			8.95		7.29		1.66
Canada — Discontinued Operations		N/M		6.82		N/M			N/M		6.34		N/M

Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast		124		165		(41	)		409		540		(131	)
West Coast		598		599		(1	)		1,825		1,789		36
Appalachia		23		32		(9	)		88		91		(3	)

Total Production from Continuing Operations		745		796		(51	)		2,322		2,420		(98	)
Canada — Discontinued Operations		—		58		(58	)		—		175		(175	)

Total Production		745		854		(109	)		2,322		2,595		(273	)


Average Prices (Per Barrel)
Gulf Coast	$	124.43	$	65.17	$	59.26		$	103.46	$	59.37	$	44.09
West Coast		114.35		57.77		56.58			94.64		52.96		41.68
Appalachia		114.99		60.43		54.56			94.18		59.35		34.83
Weighted Average for Continuing Operations		116.05		59.41		56.64			96.17		54.63		41.54
Weighted Average after Hedging for Continuing Operations		89.55		53.54		36.01			79.97		48.39		31.58
Canada — Discontinued Operations		N/M		51.58		N/M			N/M		48.16		N/M

Total Production from Continuing Operations (Mmcfe)		10,289		9,378		911			31,348		29,335		2,013
Total Canadian Production (Mmcfe)		—		1,987		(1,987	)		—		6,266		(6,266	)

Total Production (Mmcfe)		10,289		11,365		(1,076	)		31,348		35,601		(4,253	)


Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe ⁽¹⁾	$	0.58	$	0.53	$	0.05		$	0.60	$	0.47	$	0.13
Lease Operating Expense per Mcfe ⁽¹⁾	$	1.80	$	1.29	$	0.51		$	1.58	$	1.21	$	0.37
Depreciation, Depletion & Amortization per Mcfe ⁽¹⁾	$	2.26	$	1.97	$	0.29		$	2.24	$	1.92	$	0.32


⁽¹⁾		Refer to page 18 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. Amounts exclude discontinued operations of Canada.

N/M =		Not meaningful

Page 24

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for the Remaining Three Months of Fiscal 2008


SWAPS	Volume	Average Hedge Price
Oil	0.4 MMBBL	$65.72 / BBL
Gas	3.7 BCF	$8.50 / MCF

Hedging Summary for Fiscal 2009


SWAPS	Volume	Average Hedge Price
Oil	1.1 MMBBL	$80.89 / BBL
Gas	10.1 BCF	$9.49 / MCF

Hedging Summary for Fiscal 2010


SWAPS	Volume	Average Hedge Price
Oil	0.6 MMBBL	$102.52 / BBL
Gas	3.0 BCF	$11.04 / MCF

Hedging Summary for Fiscal 2011


SWAPS	Volume	Average Hedge Price
Oil	0.1 MMBBL	$125.25 / BBL

Gross Wells in Process of Drilling
Nine Months Ended June 30, 2008


							Total
	Gulf		West		East		Company

Wells in Process — Beginning of Period
Exploratory		2.00		0.00		21.00		23.00
Developmental		0.00		4.00		69.00		73.00
Wells Commenced
Exploratory		5.00		1.00		11.00		17.00
Developmental		1.00		51.00		136.00		188.00
Wells Completed
Exploratory		2.00		0.00		6.00		8.00
Developmental		0.00		49.00		136.00		185.00
Wells Plugged & Abandoned
Exploratory		0.00		0.00		1.00		1.00
Developmental		0.00		1.00		0.00		1.00
Wells Sold
Exploratory		2.00		0.00		0.00		2.00
Developmental		0.00		0.00		0.00		0.00
Wells in Process — End of Period
Exploratory		3.00		1.00		25.00		29.00
Developmental		1.00		5.00		69.00		75.00

Net Wells in Process of Drilling
Nine Months Ended June 30, 2008


							Total
	Gulf		West		East		Company

Wells in Process — Beginning of Period
Exploratory		1.30		0.00		20.00		21.30
Developmental		0.00		4.00		68.00		72.00
Wells Commenced
Exploratory		1.80		1.00		11.00		13.80
Developmental		0.30		51.00		135.00		186.30
Wells Completed
Exploratory		0.84		0.00		6.00		6.84
Developmental		0.00		49.00		135.00		184.00
Wells Plugged & Abandoned
Exploratory		0.00		0.00		1.00		1.00
Developmental		0.00		1.00		0.00		1.00
Wells Sold
Exploratory		1.30		0.00		0.00		1.30
Developmental		0.00		0.00		0.00		0.00
Wells in Process — End of Period
Exploratory		0.96		1.00		24.00		25.96
Developmental		0.30		5.00		68.00		73.30

Page 25

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Fiscal 2009 Financial & Operating Guidance


Total Production (Bcfe)		38 - 44

Production by Division (Bcfe)


Gulf		11 - 15
East		9 - 10
West		18 - 19

Guidance Based on Crude Oil Average 2009 NYMEX Price ($/Bbl) (without hedges) of $115.00

Forecast price differentials


Gulf		-$2.00 to $1.00
East		-$5.00 to -$8.00
West		-$15.00 to -$20.00

Guidance Based on Natural Gas Average 2009 NYMEX Price ($/MMBtu) (without hedges) of $9.50

Forecast price differentials


Gulf		$0.00 to -$0.50
East		$0.00 to +$0.50
West		-$1.00 to -$1.50

Cost and Expenses $ per Mcfe


Lease Operating Expenses		$1.80 - $2.00
Depreciation, Depletion and Amortization		$2.35 - $2.50
Other Taxes (% of Revenue)		$0.35 - $0.45

Other Operating Expenses		$7M - $8M
General and Administrative		$27M - $29M


	Capital Investment by Division	Number of Wells to be Drilled

Gulf	$35M - $60M	3 - 6
East	$110M - $150M	300 - 360
West	$50M - $60M	70 - 80
Total	$195M - $270M

Page 26

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

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


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Firm Transportation — Affiliated		16,697		19,817		(3,120	)		96,849		100,563		(3,714	)
Firm Transportation — Non-Affiliated		51,566		58,638		(7,072	)		186,255		172,950		13,305
Interruptible Transportation		1,540		1,670		(130	)		3,844		3,597		247

		69,803		80,125		(10,322	)		286,948		277,110		9,838

Utility Throughput — (MMcf)


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Retail Sales:
Residential Sales		8,618		10,679		(2,061	)		53,881		56,729		(2,848	)
Commercial Sales		1,334		1,836		(502	)		9,197		10,132		(935	)
Industrial Sales		77		113		(36	)		524		628		(104	)

		10,029		12,628		(2,599	)		63,602		67,489		(3,887	)
Off-System Sales		1,711		467		1,244			4,790		467		4,323
Transportation		12,086		12,981		(895	)		55,966		53,556		2,410

		23,826		26,076		(2,250	)		124,358		121,512		2,846

Energy Marketing Volumes


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
					Increase						Increase
	2008		2007		(Decrease)		2008		2007		(Decrease)
Natural Gas (MMcf)		14,641		13,014		1,627		47,189		44,063		3,126

Timber Board Feet (Thousands)


	Three Months Ended							Nine Months Ended
	June 30,							June 30,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Log Sales		1,527		1,724		(197	)		7,140		6,458		682
Green Lumber Sales		2,273		2,709		(436	)		7,496		6,619		877
Kiln-Dried Lumber Sales		3,436		4,001		(565	)		10,536		10,953		(417	)

		7,236		8,434		(1,198	)		25,172		24,030		1,142

Page 27

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2009 EARNINGS GUIDANCE AND SENSITIVITY

Earnings per share sensitivity to changes

Fiscal 2009 (Diluted earnings per share guidance*)

from prices used in guidance* ^

$1 change per MMBtu gas

$5 change per Bbl oil

Earnings Range

Increase

Decrease

Increase

Decrease

Consolidated Earnings

3.20 — $3.40

+ $0.08

- $0.08

+ $0.07

- $0.07


*		Please refer to forward looking statement footnote at page 9 of this document.

^		This sensitivity table is current as of August 7, 2008 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. This revenue is based upon pricing used in the Company’s preliminary earnings forecast. For its fiscal 2009 earnings forecast, the Company is utilizing flat commodity pricing, exclusive of basis differential, of $9.50 per MMBtu for natural gas and $115 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca’s production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity.

Page 28

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES


	2008		2007
Quarter Ended June 30 (unaudited)

Operating Revenues	$	548,382,000	$	448,779,000


Income from Continuing Operations	$	59,855,000	$	41,212,000
Income from Discontinued Operations, Net of Tax		—		5,586,000

Net Income Available for Common Stock	$	59,855,000	$	46,798,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	0.74	$	0.49
Income from Discontinued Operations		—		0.07

Net Income Available for Common Stock	$	0.74	$	0.56


Diluted:
Income from Continuing Operations	$	0.72	$	0.48
Income from Discontinued Operations		—		0.07

Net Income Available for Common Stock	$	0.72	$	0.55


Weighted Average Common Shares:
Used in Basic Calculation		81,342,788		83,483,718

Used in Diluted Calculation		83,712,193		85,668,055


Nine Months Ended June 30 (unaudited)

Operating Revenues	$	2,002,503,000	$	1,737,537,000


Income from Continuing Operations	$	225,463,000	$	167,380,000
Income from Discontinued Operations, Net of Tax		—		12,385,000

Net Income Available for Common Stock	$	225,463,000	$	179,765,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	2.72	$	2.02
Income from Discontinued Operations		—		0.15

Net Income Available for Common Stock	$	2.72	$	2.17


Diluted:
Income from Continuing Operations	$	2.65	$	1.96
Income from Discontinued Operations		—		0.15

Net Income Available for Common Stock	$	2.65	$	2.11


Weighted Average Common Shares:
Used in Basic Calculation		82,789,748		83,018,583

Used in Diluted Calculation		85,000,381		85,192,777


Twelve Months Ended June 30 (unaudited)

Operating Revenues	$	2,304,533,000	$	2,018,043,000


Income from Continuing Operations	$	259,757,000	$	195,965,000
Income (Loss) from Discontinued Operations, Net of Tax		123,395,000		(14,232,000	)

Net Income Available for Common Stock	$	383,152,000	$	181,733,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	3.13	$	2.36
Income (Loss) from Discontinued Operations		1.49		(0.17	)

Net Income Available for Common Stock	$	4.62	$	2.19


Diluted:
Income from Continuing Operations	$	3.05	$	2.30
Income (Loss) from Discontinued Operations		1.45		(0.17	)

Net Income Available for Common Stock	$	4.50	$	2.13


Weighted Average Common Shares:
Used in Basic Calculation		82,969,977		83,122,932

Used in Diluted Calculation		85,150,920		85,290,812


	NATIONAL FUEL GAS COMPANY
	By:	/s/ James R. Peterson
		James R. Peterson
Dated: August 8, 2008		Assistant Secretary


Exhibit Number		Description

99		Press release issued August 7, 2008 regarding earnings for the quarter ended June 30, 2008


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


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


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


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


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


Item 9.01		Financial Statements and Exhibits.