National Fuel Gas (NFG) 8-K National Fuel Reports Second Quarter Earnings

Exhibit 99

		6363 Main Street/Williamsville, NY 14221
Release Date:	Immediate May 4, 2017	Brian M. Welsch Investor Relations 716-857-7875	David P. Bauer Treasurer 716-857-7318

NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2017 fiscal year and for the six months ended March 31, 2017.

FISCAL 2017 SECOND QUARTER SUMMARY

• Consolidated net income of $89.3 million or $1.04 per share compared to a consolidated net loss of $147.7 million or $1.74 per share in the prior year

• Adjusted EBITDA of $227.0 million, up from $224.4 million in the prior year (non-GAAP reconciliation on page 22)

• Net production of 45.6 Bcfe, a 16% increase from prior year

• Seneca combined LOE, G&A and DD&A expenses of $1.92 per Mcfe, a $0.48 per Mcfe decrease from the prior year

• Gathering revenues of $28.0 million on 50.6 Bcf of system throughput, a 29% increase from the prior year

• Weather in Utility's Pennsylvania service territory 4.1% warmer than prior year and 15.5% warmer than normal

• Raising and tightening fiscal 2017 earnings guidance to a range of $3.20 to $3.35 per share

• Raising and tightening fiscal 2017 production guidance to a range of 165 to 180 Bcfe

OPERATING RESULTS

	Three Months Ended					Six Months Ended
	March 31,					March 31,
(in thousands except per share amounts)	2017		2016			2017		2016
Reported GAAP earnings (loss)	$	89,284	$	(147,687	)	$	178,191	$	(336,796	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)			397,443					832,894
Tax impact of impairment of oil and gas properties			(166,926		)			(349,814		)
Joint development agreement professional fees (E&P)								4,682
Tax impact of joint development agreement professional fees								(1,966		)
Operating Results	$	89,284	$	82,830		$	178,191	$	149,000
Reported GAAP earnings (loss) per share	$	1.04	$	(1.74	)	$	2.07	$	(3.97	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)			4.69					9.83
Tax impact of impairment of oil and gas properties			(1.97		)			(4.13		)
Joint development agreement professional fees (E&P)								0.06
Tax impact of joint development agreement professional fees								(0.02		)
Earnings per share impact of diluted shares			(0.01		)			(0.02		)
Operating Results per diluted share	$	1.04	$	0.97		$	2.07	$	1.75

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MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “Strong performance in our Exploration & Production and Gathering segments over each of our last two quarters bodes well for our whole fiscal year. These segments continue to benefit from improving natural gas prices in the Appalachian basin. Given the relative near-term strength we are seeing in local pricing, we are positioning our near-term development and marketing plans to target a 10-plus percent annual growth rate in our Appalachian production over the next three years and lock-in attractive returns on our low-cost drilling program and gathering investments. Seneca is in the process of adding a second rig to prepare for the start of its Atlantic Sunrise capacity and eventually begin Utica Shale development in Tioga County, Pa., in fiscal 2018, providing opportunities for further growth.

“The higher earnings in our unregulated segments more than offset the decline in earnings in our regulated Pipeline & Storage and Utility segments, where a number of minor factors drove earnings modestly lower than the previous year. Since most of the daily operational activities of the regulated companies remain fairly routine from year to year, these minor variances are not uncommon. However, the increasingly difficult regulatory policies in New York are impacting our ability to make reasoned decisions with respect to additional investments in these segments in the state. Nonetheless, our dedicated employees continue to execute our operational plan to ensure safe and reliable natural gas service for our customers in New York and Pennsylvania.

“While we sort through the delay of our Northern Access pipeline project, we will concentrate on our investment opportunities outside the state of New York. As we focus on our Exploration & Production and Gathering segments, along with ongoing investment in the expansion and modernization of our pipeline systems where possible, I am confident that we can continue to grow our integrated businesses.”

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form on pages 7 through 10 of this report. It may be helpful to refer to those tables while reviewing this discussion. Note that management defines Operating Results as reported GAAP earnings before items impacting comparability and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, depreciation and amortization, interest and other income, impairments, items impacting comparability, and income taxes.

Upstream Business

Exploration and Production Segment

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

	Three Months Ended							Six Months Ended
	March 31,							March 31,
(in thousands except per share amounts)	2017		2016			Variance		2017		2016			Variance
Net Income / (Loss)	$	33,769	$	(213,335	)	$	247,104	$	68,849	$	(450,421	)	$	519,270
Net Income / (Loss) Per Share (Diluted)	$	0.39	$	(2.52	)	$	2.91	$	0.80	$	(5.32	)	$	6.12
Adjusted EBITDA	$	93,970	$	79,608		$	14,362	$	196,447	$	170,749		$	25,698

Net income in the Exploration and Production segment in the second quarter was $33.8 million or $0.39 per share, compared to a net loss of $213.3 million or $2.52 per share in the prior year second quarter, an increase of $247.1 million or $2.91 per share. Excluding the impact of last year's impairment charge, the increase in the Exploration and Production segment's second quarter earnings is mainly due to higher natural gas production, lower operating expenses and a lower effective income tax rate, offset partially by a decrease in oil production and lower realized natural gas prices after the impact of hedging. In the prior year second quarter, Seneca recorded a $397.4 million ($230.5 million after-tax) ceiling test impairment charge to reduce the value of Seneca’s oil and gas properties. There was no ceiling test impairment charge in the current year’s second quarter.

The full cost method of accounting requires that Seneca perform a quarterly “ceiling test” to compare the present value of future revenues from its oil and natural gas reserves based on an unweighted arithmetic average of the first day of the month oil and gas prices for each month within the 12-month period prior to the end of the reporting period (“the ceiling”) with the book

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value of those reserves at the balance sheet date. If the book value of the reserves exceeds the ceiling, a non-cash impairment charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling. At March 31, 2017, the ceiling exceeded the book value of the oil and gas properties by approximately $201.0 million. Seneca does not expect to incur any impairment charges in fiscal 2017 due to the improvement in oil and gas prices and lower expected operating and well development costs.

Seneca's net production was 45.6 billion cubic feet equivalent ("Bcfe"), an increase of 6.4 Bcfe or 16 percent versus the prior year second quarter, and 0.7 Bcfe or 2 percent versus the first quarter of fiscal 2017. Net natural gas production increased 6.7 Bcf or 19 percent versus the prior year due to higher natural gas production in Appalachia. An improvement in local natural gas pricing in Pennsylvania allowed Seneca to produce all of its available production volumes during the second quarter. Seneca voluntarily curtailed approximately 9.1 Bcf (net) of natural gas production in the prior year second quarter. Seneca’s crude oil production decreased 49 thousand barrels ("Mbbl") or 7 percent due mainly to changes in steam operations and a reduction in well workover activity at its North Midway Sunset field.

Seneca's average realized natural gas price, after the impact of hedging, for the second quarter was $2.96 per thousand cubic feet ("Mcf"), a decrease of $0.03 per Mcf versus the prior year. Seneca's average realized oil price, after the impact of hedging, was $52.92 per barrel ("Bbl"), a decrease of $0.09 per Bbl. Seneca's average realized natural gas and oil prices benefited from an uplift of $0.21 per Mcf and $4.96 per Bbl, respectively, from financial hedges settled during the quarter.

Lease operating and transportation expense ("LOE") increased $5.0 million due mainly to higher production. However, LOE expense on a per unit of production basis decreased from $0.96 per Mcfe to $0.93 per Mcfe. The $0.03 per Mcfe improvement is largely the result of higher Appalachian natural gas production, which carries a lower per unit LOE cost relative to Seneca’s California oil operations, as well as a general reduction in well repair and maintenance costs across Seneca's California and Appalachia divisions.

Seneca’s General & Administrative (“G&A”) expense decreased $2.6 million due to lower personnel costs. Seneca’s per unit of production G&A expense for the quarter was $0.36 per Mcfe, a decrease of $0.13 per Mcfe or 27 percent from the prior year.

Depreciation, depletion and amortization ("DD&A") expense decreased $8.4 million due to lower per unit DD&A, offset partially by the impact of higher production. Seneca’s per unit DD&A decreased by $0.32 per Mcf equivalent ("Mcfe") to $0.63 per Mcfe due to a lower depletable fixed asset balance resulting mainly from the ceiling test impairment charges recorded during the past year.

Seneca’s effective income tax rate decreased in the second quarter due primarily to an enhanced oil recovery tax credit related to Seneca’s California properties. This credit was applicable this year as a result of relatively low domestic crude oil prices.

Midstream Businesses

Pipeline and Storage Segment

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

	Three Months Ended							Six Months Ended
	March 31,							March 31,
(in thousands except per share amounts)	2017		2016		Variance			2017		2016		Variance
Net Income / (Loss)	$	19,256	$	21,194	$	(1,938	)	$	38,624	$	42,470	$	(3,846	)
Net Income / (Loss) Per Share (Diluted)	$	0.22	$	0.25	$	(0.03	)	$	0.45	$	0.50	$	(0.05	)
Adjusted EBITDA	$	49,103	$	53,672	$	(4,569	)	$	97,116	$	104,415	$	(7,299	)

The Pipeline and Storage segment's second quarter earnings decreased from the prior year due primarily to a $3.8 million decline in operating revenues. The decrease in revenues was the result of the reduction in Supply Corporation and Empire’s rates related to their rate case settlements that went into effect in 2016, as well as a decline in short-term transportation contracts in the current quarter.

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Gathering Segment

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

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(in thousands except per share amounts)	2017		2016		Variance		2017		2016		Variance
Net Income / (Loss)	$	10,285	$	7,568	$	2,717	$	21,266	$	12,490	$	8,776
Net Income / (Loss) Per Share (Diluted)	$	0.12	$	0.09	$	0.03	$	0.25	$	0.15	$	0.10
Adjusted EBITDA	$	24,172	$	18,831	$	5,341	$	49,273	$	35,290	$	13,983

The Gathering segment’s second quarter earnings increased $2.7 million or 36 percent versus the prior year on higher revenues offset slightly by higher operating expenses. Operating revenues increased $6.3 million as the increase in Seneca’s gross Appalachian natural gas production, which includes production from joint development wells, helped drive higher volumes across the Company’s gathering systems. The Gathering segment transported 50.6 Bcf on its systems in the second quarter, up 11.4 Bcf or 29 percent from the prior year. Operation and Maintenance (“O&M”) expenses were up $1.0 million versus the prior year due to higher costs associated with operating new compression and dehydration facilities at the segment’s Clermont gathering system.

Downstream Businesses

Utility Segment

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

	Three Months Ended							Six Months Ended
	March 31,							March 31,
(in thousands except per share amounts)	2017		2016		Variance			2017		2016		Variance
Net Income / (Loss)	$	25,581	$	31,960	$	(6,379	)	$	46,755	$	50,566	$	(3,811	)
Net Income / (Loss) Per Share (Diluted)	$	0.30	$	0.38	$	(0.08	)	$	0.54	$	0.60	$	(0.06	)
Adjusted EBITDA	$	61,580	$	69,467	$	(7,887	)	$	113,909	$	115,382	$	(1,473	)

The Utility segment’s second quarter earnings decreased $6.4 million or 20 percent due primarily to higher O&M and DD&A expenses and warmer weather. O&M expense increased $6.5 million versus the prior year due mainly to higher pension and benefits costs and uncollectible accounts. DD&A expense increased $1.7 million due to higher plant balances at March 31, 2017, which was primarily driven by the replacement of Distribution’s legacy customer information system that was placed in service in May 2016.

The weather was 4.1 percent warmer than last year and 15.5 percent warmer than normal in Distribution’s Pennsylvania service territory, resulting in lower retail residential and transportation customer throughput and revenues when compared to both the prior year and Company projections for earnings guidance purposes, which assumes normal weather. In New York, the impact of weather variations on earnings is largely mitigated by that jurisdiction’s weather normalization clause.

Energy Marketing Segment

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

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	Three Months Ended							Six Months Ended
	March 31,							March 31,
(in thousands except per share amounts)	2017		2016		Variance			2017		2016		Variance
Net Income / (Loss)	$	905	$	3,484	$	(2,579	)	$	2,687	$	4,707	$	(2,020	)
Net Income / (Loss) Per Share (Diluted)	$	0.01	$	0.04	$	(0.03	)	$	0.03	$	0.06	$	(0.03	)
Adjusted EBITDA	$	1,382	$	5,653	$	(4,271	)	$	4,230	$	7,500	$	(3,270	)

The Energy Marketing segment's second quarter earnings decreased $2.6 million due to lower margin. NFR’s customer margins were negatively impacted by stronger natural gas prices at local pricing points relative to NYMEX-based sales contracts and lower volumes as a result of warmer weather during the period.

Corporate and All Other

The Corporate and All Other category had a loss of $0.5 million or $0.00 per share for the second quarter compared to earnings of $1.4 million or $0.02 per share in the prior year. The $1.9 million decrease is primarily attributable to the non-recurrence of a death benefit gain on life insurance proceeds and related tax benefits that were recognized in the prior year.

GUIDANCE

The Company is raising and tightening its earnings guidance for fiscal 2017 to a range of $3.20 to $3.35 per share to reflect the impact of actual results for the six months ended March 31, 2017, and updates to key forecast assumptions, including positive revisions to the Exploration & Production segment’s forecasted production and operating expense assumptions, as outlined in the table below.

The Company is also updating fiscal 2017 capital expenditure guidance to a range of $450 to $530 million, a decrease of $100 million at the midpoint. Expected capital expenditures for the Pipeline & Storage segment were reduced by $115 million at the midpoint to reflect the delay in the Northern Access pipeline project. Changes to Exploration & Production, up $30 million at the midpoint of the range, and Gathering, down $15 million at the midpoint, were the result of changes in the timing of Seneca’s Appalachian development activities between fiscal 2017 and fiscal 2018. There were no changes to the Utility segment’s capital expenditure budget.

	Updated FY 2017 Guidance	Previous FY 2017 Guidance
Consolidated Earnings per Share	$3.20 to $3.35	$3.10 to $3.30
Capital Expenditures (Millions)
Exploration & Production (1)	$210 - $250	$180 - $220
Pipeline & Storage	$100 - $120	$200 - $250
Gathering	$50 - $60	$65 - $75
Utility	$90 - $100	$90 - $100
Consolidated Capital Expenditures	$450 - $530	$535 - $645
Exploration & Production Segment Guidance
NYMEX Natural Gas Price Assumption	$3.25	$3.25
NYMEX Crude Oil Price Assumption	$55.00	$55.00
Production (Bcfe)
East Division - Appalachia	145 to 160	135 to 153
West Division - California	~ 20	20 to 22
Total Production	165 to 180	155 to 175
E&P Operating Costs ($/Mcfe)
LOE	$0.95 - $1.00	$0.95 - $1.05
G&A	$0.35 - $0.40	$0.35 - $0.40
DD&A	$0.60 - $0.65	$0.65 - $0.70

(1)    Net of initial conveyance proceeds received from joint development partner for working interest in joint development wells

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EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 5, 2017, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 877-201-0168, using conference ID number “4568855.” For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 800-585-8367 using conference ID number “4568855.” Both the webcast and a telephonic replay will be available until the close of business on Friday, May 12, 2017.

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

Analyst Contact:	Brian M. Welsch	716-857-7875
Media Contact:	Karen L. Merkel	716-857-7654

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

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2017
(Unaudited)
	Upstream			Midstream Businesses						Downstream Businesses
	Exploration &			Pipeline &									Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			Marketing			All Other			Consolidated*
Second quarter 2016 GAAP earnings	$	(213,335	)	$	21,194		$	7,568		$	31,960		$	3,484		$	1,442		$	(147,687	)
Items impacting comparability:
Impairment of oil and gas producing properties	397,443																		397,443
Tax impact of impairment of oil and gas producing properties	(166,926		)																(166,926		)
Second quarter 2016 operating results	17,182			21,194			7,568			31,960			3,484			1,442			82,830
Drivers of operating results
Higher (lower) crude oil prices	(39		)																(39		)
Higher (lower) natural gas prices	(962		)																(962		)
Higher (lower) natural gas production	12,963																		12,963
Higher (lower) crude oil production	(1,680		)																(1,680		)
Lower (higher) lease operating and transportation expenses	(3,234		)																(3,234		)
Lower (higher) depreciation / depletion	5,475			252			(265		)	(1,076		)							4,386
Higher (lower) transportation and storage revenues				(2,288		)													(2,288		)
Higher (lower) gathering and processing revenues							4,098												4,098
Lower (higher) other operating expenses	2,651			(395		)	(647		)	(3,775		)							(2,166		)
Regulatory true-up adjustments										(341		)							(341		)
Warmer weather										(733		)							(733		)
Higher (lower) margins													(2,686		)	(223		)	(2,909		)
Higher (lower) AFUDC**				395						(582		)							(187		)
Lower (higher) interest expense							(206		)										(206		)
Lower (higher) income tax expense / effective tax rate	1,539															(1,037		)	502
All other / rounding	(126		)	98			(263		)	128			107			(694		)	(750		)
Second quarter 2017 GAAP earnings and operating results	$	33,769		$	19,256		$	10,285		$	25,581		$	905		$	(512	)	$	89,284
* Amounts do not reflect intercompany eliminations
** 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 MARCH 31, 2017
(Unaudited)
	Upstream			Midstream Businesses						Downstream Businesses
	Exploration &			Pipeline &									Energy			Corporate /
	Production			Storage			Gathering			Utility			Marketing			All Other			Consolidated*
Second quarter 2016 GAAP earnings	$	(2.52	)	$	0.25		$	0.09		$	0.38		$	0.04		$	0.02		$	(1.74	)
Items impacting comparability:
Impairment of oil and gas producing properties	4.69																		4.69
Tax impact of impairment of oil and gas producing properties	(1.97		)																(1.97		)
Earnings per share impact of diluted shares																(0.01		)	(0.01		)
Second quarter 2016 operating results	0.20			0.25			0.09			0.38			0.04			0.01			0.97
Drivers of operating results
Higher (lower) crude oil prices	—																		—
Higher (lower) natural gas prices	(0.01		)																(0.01		)
Higher (lower) natural gas production	0.15																		0.15
Higher (lower) crude oil production	(0.02		)																(0.02		)
Lower (higher) lease operating and transportation expenses	(0.04		)																(0.04		)
Lower (higher) depreciation / depletion	0.06			—			—			(0.01		)							0.05
Higher (lower) transportation and storage revenues				(0.03		)													(0.03		)
Higher (lower) gathering and processing revenues							0.05												0.05
Lower (higher) other operating expenses	0.03			—			(0.01		)	(0.04		)							(0.02		)
Regulatory true-up adjustments										—									—
Warmer weather										(0.01		)							(0.01		)
Higher (lower) margins													(0.03		)	—			(0.03		)
Higher (lower) AFUDC**				—						(0.01		)							(0.01		)
Lower (higher) interest expense							—												—
Lower (higher) income tax expense / effective tax rate	0.02															(0.01		)	0.01
All other / rounding	—			—			(0.01		)	(0.01		)	—			—			(0.02		)
Second quarter 2017 GAAP earnings and operating results	$	0.39		$	0.22		$	0.12		$	0.30		$	0.01		$	—		$	1.04
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2017
(Unaudited)
	Upstream			Midstream Businesses						Downstream Businesses
	Exploration &			Pipeline &									Energy			Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			Marketing			All Other			Consolidated*
Six months ended March 31, 2016 GAAP earnings	$	(450,421	)	$	42,470		$	12,490		$	50,566		$	4,707		$	3,392		$	(336,796	)
Items impacting comparability:
Impairment of oil and gas producing properties	832,894																		832,894
Tax impact of impairment of oil and gas producing properties	(349,814		)																(349,814		)
Joint development agreement professional fees	4,682																		4,682
Tax impact of joint development agreement professional fees	(1,966		)																(1,966		)
Six months ended March 31, 2016 operating results	35,375			42,470			12,490			50,566			4,707			3,392			149,000
Drivers of operating results
Higher (lower) crude oil prices	(2,356		)																(2,356		)
Higher (lower) natural gas prices	(5,992		)																(5,992		)
Higher (lower) natural gas production	27,346																		27,346
Higher (lower) crude oil production	(2,791		)																(2,791		)
Lower (higher) lease operating and transportation expenses	(3,680		)																(3,680		)
Lower (higher) depreciation / depletion	15,212			639						(2,040		)							13,811
Higher (lower) transportation and storage revenues				(2,373		)													(2,373		)
Higher (lower) gathering and processing revenues							10,014												10,014
Lower (higher) other operating expenses	4,531			(2,116		)	(959		)	(5,647		)				(667		)	(4,858		)
Regulatory true-up adjustments										961									961
Colder weather										2,249									2,249
Higher (lower) usage										1,395									1,395
Higher (lower) margins													(2,090		)	(321		)	(2,411		)
Higher (lower) AFUDC**				(500		)				(1,060		)							(1,560		)
Lower (higher) interest expense	846						428												1,274
Lower (higher) income tax expense / effective tax rate	1,012			517			(854		)							(2,072		)	(1,397		)
All other / rounding	(654		)	(13		)	147			331			70			(322		)	(441		)
Six months ended March 31, 2017 GAAP earnings and operating results	$	68,849		$	38,624		$	21,266		$	46,755		$	2,687		$	10		$	178,191
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

Page 10.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2017
(Unaudited)
	Upstream			Midstream Businesses						Downstream Businesses
	Exploration &			Pipeline &									Energy			Corporate /
	Production			Storage			Gathering			Utility			Marketing			All Other			Consolidated*
Six months ended March 31, 2016 GAAP earnings	$	(5.32	)	$	0.50		$	0.15		$	0.60		$	0.06		$	0.04		$	(3.97	)
Items impacting comparability:
Impairment of oil and gas producing properties	9.83																		9.83
Tax impact of impairment of oil and gas producing properties	(4.13		)																(4.13		)
Joint development agreement professional fees	0.06																		0.06
Tax impact of joint development agreement professional fees	(0.02		)																(0.02		)
Earnings per share impact of diluted shares										(0.01		)	(0.01		)				(0.02		)
Six months ended March 31, 2016 operating results	0.42			0.50			0.15			0.59			0.05			0.04			1.75
Drivers of operating results
Higher (lower) crude oil prices	(0.03		)																(0.03		)
Higher (lower) natural gas prices	(0.07		)																(0.07		)
Higher (lower) natural gas production	0.32																		0.32
Higher (lower) crude oil production	(0.03		)																(0.03		)
Lower (higher) lease operating and transportation expenses	(0.04		)																(0.04		)
Lower (higher) depreciation / depletion	0.18			0.01						(0.02		)							0.17
Higher (lower) transportation and storage revenues				(0.03		)													(0.03		)
Higher (lower) gathering and processing revenues							0.12												0.12
Lower (higher) other operating expenses	0.05			(0.02		)	(0.01		)	(0.07		)				(0.01		)	(0.06		)
Regulatory true-up adjustments										0.01									0.01
Colder weather										0.03									0.03
Higher (lower) usage										0.02									0.02
Higher (lower) margins													(0.02		)	—			(0.02		)
Higher (lower) AFUDC**				(0.01		)				(0.01		)							(0.02		)
Lower (higher) interest expense	0.01						—												0.01
Lower (higher) income tax expense / effective tax rate	0.01			0.01			(0.01		)							(0.02		)	(0.01		)
All other / rounding	(0.02		)	(0.01		)	—			(0.01		)	—			(0.01		)	(0.05		)
Six months ended March 31, 2017 GAAP earnings and operating results	$	0.80		$	0.45		$	0.25		$	0.54		$	0.03		$	—		$	2.07
* Amounts do not reflect intercompany eliminations
** AFUDC = Allowance for Funds Used During Construction

Page 11.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
	Three Months Ended						Six Months Ended
	March 31,						March 31,
	(Unaudited)						(Unaudited)
SUMMARY OF OPERATIONS	2017			2016			2017			2016
Operating Revenues:
Utility and Energy Marketing Revenues	$	308,889		$	248,173		$	516,669		$	417,005
Exploration and Production and Other Revenues	159,997			144,570			321,691			297,454
Pipeline and Storage and Gathering Revenues	53,189			56,389			106,216			109,868
	522,075			449,132			944,576			824,327
Operating Expenses:
Purchased Gas	147,971			81,623			218,214			123,691
Operation and Maintenance:
Utility and Energy Marketing	63,907			57,309			114,329			104,858
Exploration and Production and Other	37,593			42,964			68,055			88,539
Pipeline and Storage and Gathering	23,106			21,541			45,766			41,109
Property, Franchise and Other Taxes	22,542			21,305			42,921			41,662
Depreciation, Depletion and Amortization	56,999			63,947			113,194			134,498
Impairment of Oil and Gas Producing Properties	—			397,443			—			832,894
	352,118			686,132			602,479			1,367,251
Operating Income (Loss)	169,957			(237,000		)	342,097			(542,924		)
Other Income (Expense):
Interest Income	391			278			1,991			2,077
Other Income	1,744			3,236			3,356			5,654
Interest Expense on Long-Term Debt	(28,913		)	(28,994		)	(58,016		)	(59,366		)
Other Interest Expense	(924		)	(1,237		)	(1,834		)	(2,617		)
Income (Loss) Before Income Taxes	142,255			(263,717		)	287,594			(597,176		)
Income Tax Expense (Benefit)	52,971			(116,030		)	109,403			(260,380		)
Net Income (Loss) Available for Common Stock	$	89,284		$	(147,687	)	$	178,191		$	(336,796	)
Earnings (Loss) Per Common Share:
Basic	$	1.05		$	(1.74	)	$	2.09		$	(3.97	)
Diluted	$	1.04		$	(1.74	)	$	2.07		$	(3.97	)
Weighted Average Common Shares:
Used in Basic Calculation	85,334,887			84,806,982			85,261,575			84,728,680
Used in Diluted Calculation	86,006,614			84,806,982			85,897,282			84,728,680

Page 12.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,			September 30,
(Thousands of Dollars)	2017			2016
ASSETS
Property, Plant and Equipment		$9,704,134			$9,539,581
Less - Accumulated Depreciation, Depletion and Amortization	5,185,077			5,085,099
Net Property, Plant and Equipment	4,519,057			4,454,482
Current Assets:
Cash and Temporary Cash Investments	231,173			129,972
Hedging Collateral Deposits	1,771			1,484
Receivables - Net	171,162			133,201
Unbilled Revenue	52,852			18,382
Gas Stored Underground	9,027			34,332
Materials and Supplies - at average cost	34,695			33,866
Unrecovered Purchased Gas Costs	4,681			2,440
Other Current Assets	51,585			59,354
Total Current Assets	556,946			413,031
Other Assets:
Recoverable Future Taxes	179,928			177,261
Unamortized Debt Expense	1,424			1,688
Other Regulatory Assets	314,903			320,750
Deferred Charges	26,128			20,978
Other Investments	117,284			110,664
Goodwill	5,476			5,476
Prepaid Post-Retirement Benefit Costs	18,315			17,649
Fair Value of Derivative Financial Instruments	64,729			113,804
Other	485			604
Total Other Assets	728,672			768,874
Total Assets		$5,804,675			$5,636,387
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 85,375,068 Shares
and 85,118,886 Shares, Respectively		$85,375			$85,119
Paid in Capital	782,688			771,164
Earnings Reinvested in the Business	817,348			676,361
Accumulated Other Comprehensive Loss	(34,091		)	(5,640		)
Total Comprehensive Shareholders' Equity	1,651,320			1,527,004
Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs	2,087,385			2,086,252
Total Capitalization	3,738,705			3,613,256
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper	—			—
Current Portion of Long-Term Debt	—			—
Accounts Payable	111,382			108,056
Amounts Payable to Customers	19,466			19,537
Dividends Payable	34,577			34,473
Interest Payable on Long-Term Debt	34,900			34,900
Customer Advances	300			14,762
Customer Security Deposits	17,512			16,019
Other Accruals and Current Liabilities	106,287			74,430
Fair Value of Derivative Financial Instruments	1,471			1,560
Total Current and Accrued Liabilities	325,895			303,737
Deferred Credits:
Deferred Income Taxes	837,098			823,795
Taxes Refundable to Customers	93,506			93,318
Cost of Removal Regulatory Liability	196,901			193,424
Other Regulatory Liabilities	91,661			99,789
Pension and Other Post-Retirement Liabilities	291,259			277,113
Asset Retirement Obligations	114,014			112,330
Other Deferred Credits	115,636			119,625
Total Deferred Credits	1,740,075			1,719,394
Commitments and Contingencies	—			—
Total Capitalization and Liabilities		$5,804,675			$5,636,387

Page 13.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended
	March 31,
(Thousands of Dollars)	2017			2016
Operating Activities:
Net Income (Loss) Available for Common Stock	$	178,191		$	(336,796	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Impairment of Oil and Gas Producing Properties	—			832,894
Depreciation, Depletion and Amortization	113,194			134,498
Deferred Income Taxes	63,781			(283,912		)
Excess Tax Benefits Associated with Stock-Based Compensation Awards	—			(226		)
Stock-Based Compensation	5,632			2,518
Other	7,713			6,106
Change in:
Hedging Collateral Deposits	(287		)	1,161
Receivables and Unbilled Revenue	(92,155		)	(28,211		)
Gas Stored Underground and Materials and Supplies	24,476			22,637
Unrecovered Purchased Gas Costs	(2,241		)	(1,245		)
Other Current Assets	7,769			4,177
Accounts Payable	13,997			(31,786		)
Amounts Payable to Customers	(71		)	(14,561		)
Customer Advances	(14,462		)	(16,203		)
Customer Security Deposits	1,493			(389		)
Other Accruals and Current Liabilities	44,690			22,420
Other Assets	(32		)	3,754
Other Liabilities	202			(4,073		)
Net Cash Provided by Operating Activities	$	351,890		$	312,763
Investing Activities:
Capital Expenditures	$	(208,231	)	$	(358,981	)
Net Proceeds from Sale of Oil and Gas Producing Properties	26,554			104,938
Other	(3,225		)	(18,249		)
Net Cash Used in Investing Activities	$	(184,902	)	$	(272,292	)
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	—		$	226
Dividends Paid on Common Stock	(69,017		)	(66,887		)
Net Proceeds From Issuance of Common Stock	3,230			6,294
Net Cash Used in Financing Activities	$	(65,787	)	$	(60,367	)
Net Increase (Decrease) in Cash and Temporary Cash Investments	101,201			(19,896		)
Cash and Temporary Cash Investments at Beginning of Period	129,972			113,596
Cash and Temporary Cash Investments at March 31	$	231,173		$	93,700

Page 14.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
EXPLORATION AND PRODUCTION SEGMENT	2017			2016			Variance			2017			2016			Variance
Total Operating Revenues	$	159,553		$	143,783		$	15,770		$	320,485		$	295,749		$	24,736
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense	16,530			19,143			(2,613		)	29,504			39,099			(9,595		)
Lease Operating and Transportation Expense	42,543			37,568			4,975			82,251			76,590			5,661
All Other Operation and Maintenance Expense	2,781			4,247			(1,466		)	5,332			7,391			(2,059		)
Property, Franchise and Other Taxes	3,729			3,217			512			6,951			6,602			349
Depreciation, Depletion and Amortization	28,851			37,274			(8,423		)	57,905			81,307			(23,402		)
Impairment of Oil and Gas Producing Properties	—			397,443			(397,443		)	—			832,894			(832,894		)
	94,434			498,892			(404,458		)	181,943			1,043,883			(861,940		)
Operating Income (Loss)	65,119			(355,109)			420,228			138,542			(748,134)			886,676
Other Income (Expense):
Interest Income	147			27			120			233			693			(460		)
Interest Expense	(13,303		)	(13,546		)	243			(26,826		)	(28,128		)	1,302
Income (Loss) Before Income Taxes	51,963			(368,628		)	420,591			111,949			(775,569		)	887,518
Income Tax Expense (Benefit)	18,194			(155,293		)	173,487			43,100			(325,148		)	368,248
Net Income (Loss)	$	33,769		$	(213,335	)	$	247,104		$	68,849		$	(450,421	)	$	519,270
Net Income (Loss) Per Share (Diluted)	$	0.39		$	(2.52	)	$	2.91		$	0.80		$	(5.32	)	$	6.12

Page 15.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
PIPELINE AND STORAGE SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	53,163		$	56,276		$	(3,113	)	$	106,164		$	109,630		$	(3,466	)
Intersegment Revenues	22,592			23,292			(700		)	44,746			45,477			(731		)
Total Operating Revenues	75,755			79,568			(3,813		)	150,910			155,107			(4,197		)
Operating Expenses:
Purchased Gas	(28		)	245			(273		)	194			703			(509		)
Operation and Maintenance	19,668			19,060			608			39,911			36,653			3,258
Property, Franchise and Other Taxes	7,012			6,591			421			13,689			13,336			353
Depreciation, Depletion and Amortization	10,476			10,865			(389		)	20,138			21,121			(983		)
	37,128			36,761			367			73,932			71,813			2,119
Operating Income	38,627			42,807			(4,180		)	76,978			83,294			(6,316		)
Other Income (Expense):
Interest Income	319			179			140			591			290			301
Other Income	807			413			394			1,494			1,994			(500		)
Interest Expense	(8,342		)	(8,453		)	111			(16,688		)	(16,491		)	(197		)
Income Before Income Taxes	31,411			34,946			(3,535		)	62,375			69,087			(6,712		)
Income Tax Expense	12,155			13,752			(1,597		)	23,751			26,617			(2,866		)
Net Income	$	19,256		$	21,194		$	(1,938	)	$	38,624		$	42,470		$	(3,846	)
Net Income Per Share (Diluted)	$	0.22		$	0.25		$	(0.03	)	$	0.45		$	0.50		$	(0.05	)
	Three Months Ended									Six Months Ended
	March 31,									March 31,
GATHERING SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	26		$	113		$	(87	)	$	52		$	238		$	(186	)
Intersegment Revenues	27,936			21,545			6,391			55,776			40,184			15,592
Total Operating Revenues	27,962			21,658			6,304			55,828			40,422			15,406
Operating Expenses:
Operation and Maintenance	3,769			2,775			994			6,523			5,047			1,476
Property, Franchise and Other Taxes	21			52			(31		)	32			85			(53		)
Depreciation, Depletion and Amortization	3,997			3,589			408			7,877			7,799			78
	7,787			6,416			1,371			14,432			12,931			1,501
Operating Income	20,175			15,242			4,933			41,396			27,491			13,905
Other Income (Expense):
Interest Income	207			68			139			353			101			252
Other Income	—			1			(1		)	1			2			(1		)
Interest Expense	(2,235		)	(1,918		)	(317		)	(4,328		)	(4,987		)	659
Income Before Income Taxes	18,147			13,393			4,754			37,422			22,607			14,815
Income Tax Expense	7,862			5,825			2,037			16,156			10,117			6,039
Net Income	$	10,285		$	7,568		$	2,717		$	21,266		$	12,490		$	8,776
Net Income Per Share (Diluted)	$	0.12		$	0.09		$	0.03		$	0.25		$	0.15		$	0.10

Page 16.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESSES
	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
UTILITY SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	257,949		$	212,737		$	45,212		$	428,919		$	356,585		$	72,334
Intersegment Revenues	6,096			5,364			732			7,922			9,028			(1,106		)
Total Operating Revenues	264,045			218,101			45,944			436,841			365,613			71,228
Operating Expenses:
Purchased Gas	128,212			81,181			47,031			188,945			126,250			62,695
Operation and Maintenance	62,748			56,293			6,455			112,277			102,893			9,384
Property, Franchise and Other Taxes	11,505			11,160			345			21,710			21,088			622
Depreciation, Depletion and Amortization	13,314			11,659			1,655			26,415			23,277			3,138
	215,779			160,293			55,486			349,347			273,508			75,839
Operating Income	48,266			57,808			(9,542		)	87,494			92,105			(4,611		)
Other Income (Expense):
Interest Income	144			122			22			278			207			71
Other Income	45			706			(661		)	137			1,404			(1,267		)
Interest Expense	(7,194		)	(7,158		)	(36		)	(14,392		)	(14,491		)	99
Income Before Income Taxes	41,261			51,478			(10,217		)	73,517			79,225			(5,708		)
Income Tax Expense	15,680			19,518			(3,838		)	26,762			28,659			(1,897		)
Net Income	$	25,581		$	31,960		$	(6,379	)	$	46,755		$	50,566		$	(3,811	)
Net Income Per Share (Diluted)	$	0.30		$	0.38		$	(0.08	)	$	0.54		$	0.60		$	(0.06	)
	Three Months Ended									Six Months Ended
	March 31,									March 31,
ENERGY MARKETING SEGMENT	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	50,940		$	35,436		$	15,504		$	87,750		$	60,420		$	27,330
Intersegment Revenues	16			312			(296		)	35			624			(589		)
Total Operating Revenues	50,956			35,748			15,208			87,785			61,044			26,741
Operating Expenses:
Purchased Gas	47,661			28,321			19,340			79,999			50,044			29,955
Operation and Maintenance	1,913			1,773			140			3,556			3,496			60
Property, Franchise and Other Taxes	—			1			(1		)	—			4			(4		)
Depreciation, Depletion and Amortization	70			69			1			140			139			1
	49,644			30,164			19,480			83,695			53,683			30,012
Operating Income	1,312			5,584			(4,272		)	4,090			7,361			(3,271		)
Other Income (Expense):
Interest Income	138			91			47			271			141			130
Other Income	33			15			18			35			24			11
Interest Expense	(11		)	(7		)	(4		)	(24		)	(25		)	1
Income Before Income Taxes	1,472			5,683			(4,211		)	4,372			7,501			(3,129		)
Income Tax Expense	567			2,199			(1,632		)	1,685			2,794			(1,109		)
Net Income	$	905		$	3,484		$	(2,579	)	$	2,687		$	4,707		$	(2,020	)
Net Income Per Share (Diluted)	$	0.01		$	0.04		$	(0.03	)	$	0.03		$	0.06		$	(0.03	)

Page 17.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
ALL OTHER	2017			2016			Variance			2017			2016			Variance
Total Operating Revenues	$	218		$	561		$	(343	)	$	772		$	1,266		$	(494	)
Operating Expenses:
Operation and Maintenance	394			164			230			909			239			670
Property, Franchise and Other Taxes	150			161			(11		)	294			304			(10		)
Depreciation, Depletion and Amortization	102			306			(204		)	343			488			(145		)
	646			631			15			1,546			1,031			515
Operating Income (Loss)	(428		)	(70		)	(358		)	(774		)	235			(1,009		)
Other Income (Expense):
Interest Income	49			31			18			89			50			39
Income (Loss) Before Income Taxes	(379		)	(39		)	(340		)	(685		)	285			(970		)
Income Tax Expense (Benefit)	(158		)	(16		)	(142		)	(285		)	119			(404		)
Net Income (Loss)	$	(221	)	$	(23	)	$	(198	)	$	(400	)	$	166		$	(566	)
Net Income (Loss) Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—
	Three Months Ended									Six Months Ended
	March 31,									March 31,
CORPORATE	2017			2016			Variance			2017			2016			Variance
Revenues from External Customers	$	226		$	226		$	—		$	434		$	439		$	(5	)
Intersegment Revenues	977			967			10			1,953			1,933			20
Total Operating Revenues	1,203			1,193			10			2,387			2,372			15
Operating Expenses:
Operation and Maintenance	4,003			4,147			(144		)	7,395			7,038			357
Property, Franchise and Other Taxes	125			123			2			245			243			2
Depreciation, Depletion and Amortization	189			185			4			376			367			9
	4,317			4,455			(138		)	8,016			7,648			368
Operating Loss	(3,114		)	(3,262		)	148			(5,629		)	(5,276		)	(353		)
Other Income (Expense):
Interest Income	30,693			30,339			354			62,498			62,083			415
Other Income	859			2,101			(1,242		)	1,689			2,230			(541		)
Interest Expense on Long-Term Debt	(28,913		)	(28,994		)	81			(58,016		)	(59,366		)	1,350
Other Interest Expense	(1,145		)	(734		)	(411		)	(1,898		)	17			(1,915		)
Loss Before Income Taxes	(1,620		)	(550		)	(1,070		)	(1,356		)	(312		)	(1,044		)
Income Tax Benefit	(1,329		)	(2,015		)	686			(1,766		)	(3,538		)	1,772
Net Income (Loss)	$	(291	)	$	1,465		$	(1,756	)	$	410		$	3,226		$	(2,816	)
Net Income (Loss) Per Share (Diluted)	$	—		$	0.02		$	(0.02	)	$	—		$	0.04		$	(0.04	)
	Three Months Ended									Six Months Ended
	March 31,									March 31,
INTERSEGMENT ELIMINATIONS	2017			2016			Variance			2017			2016			Variance
Intersegment Revenues	$	(57,617	)	$	(51,480	)	$	(6,137	)	$	(110,432	)	$	(97,246	)	$	(13,186	)
Operating Expenses:
Purchased Gas	(27,874		)	(28,124		)	250			(50,924		)	(53,306		)	2,382
Operation and Maintenance	(29,743		)	(23,356		)	(6,387		)	(59,508		)	(43,940		)	(15,568		)
	(57,617		)	(51,480		)	(6,137		)	(110,432		)	(97,246		)	(13,186		)
Operating Income	—			—			—			—			—			—
Other Income (Expense):
Interest Income	(31,306		)	(30,579		)	(727		)	(62,322		)	(61,488		)	(834		)
Interest Expense	31,306			30,579			727			62,322			61,488			834
Net Income	$	—		$	—		$	—		$	—		$	—		$	—
Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—

Page 18.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
	Three Months Ended										Six Months Ended
	March 31,										March 31,
	(Unaudited)										(Unaudited)
								Increase										Increase
	2017				2016			(Decrease)			2017				2016			(Decrease)
Capital Expenditures:
Exploration and Production	$	57,137		(1)(2)	$	79,530	(3)	$	(22,393	)	$	97,826		(1)(2)	$	167,654	(3)(4)	$	(69,828	)
Pipeline and Storage	11,386			(1)(2)	26,075		(3)	(14,689		)	36,778			(1)(2)	57,695		(3)(4)	(20,917		)
Gathering	3,147			(1)(2)	12,778		(3)	(9,631		)	14,491			(1)(2)	34,523		(3)(4)	(20,032		)
Utility	19,244			(1)(2)	26,091		(3)	(6,847		)	36,296			(1)(2)	46,008		(3)(4)	(9,712		)
Energy Marketing	5				2			3			11				9			2
Total Reportable Segments	90,919				144,476			(53,557		)	185,402				305,889			(120,487		)
All Other	—				37			(37		)	39				37			2
Corporate	3				106			(103		)	64				155			(91		)
Eliminations	(777		)		—			(777		)	(777		)		—			(777		)
Total Capital Expenditures	$	90,145			$	144,619		$	(54,474	)	$	184,728			$	306,081		$	(121,353	)

⁽¹⁾  Capital expenditures for the quarter and six months ended March 31, 2017, include accounts payable and accrued liabilities related to capital expenditures of $23.2 million, $5.8 million, $2.2 million, and $5.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2017, since they represent non-cash investing activities at that date.

⁽²⁾  Capital expenditures for the six months ended March 31, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2016 and paid during the six months ended March 31, 2017. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2017.

⁽³⁾  Capital expenditures for the quarter and six months ended March 31, 2016, include accounts payable and accrued liabilities related to capital expenditures of $34.0 million, $10.2 million, $12.6 million, and $9.3 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2016, since they represent non-cash investing activities at that date.

⁽⁴⁾  Capital expenditures for the six months ended March 31, 2016, exclude capital expenditures of $46.2 million, $33.9 million, $22.4 million and $16.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2015 and paid during the six months ended March 31, 2016. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2015, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2016.

DEGREE DAYS
				Percent Colder
				(Warmer) Than:
Three Months Ended March 31	Normal	2017	2016	Normal (1)	Last Year (1)
Buffalo, NY	3,290	2,866	2,963	(12.9)	(3.3)
Erie, PA	3,108	2,627	2,739	(15.5)	(4.1)
Six Months Ended March 31
Buffalo, NY	5,543	4,832	4,640	(12.8)	4.1
Erie, PA	5,152	4,377	4,223	(15.0)	3.6

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

Page 19.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2017		2016		(Decrease)			2017		2016		(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia	40,805		34,113		6,692			80,612		66,900		13,712
West Coast	737		764		(27		)	1,513		1,547		(34		)
Total Production	41,542		34,877		6,665			82,125		68,447		13,678
Average Prices (Per Mcf)
Appalachia	$	2.71	$	1.85	$	0.86		$	2.54	$	1.91	$	0.63
West Coast	4.57		2.87		1.70			4.40		3.27		1.13
Weighted Average	2.75		1.87		0.88			2.57		1.94		0.63
Weighted Average after Hedging	2.96		2.99		(0.03		)	2.96		3.08		(0.12		)
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia	2		5		(3		)	2		11		(9		)
West Coast	672		718		(46		)	1,393		1,460		(67		)
Total Production	674		723		(49		)	1,395		1,471		(76		)
Average Prices (Per Barrel)
Appalachia	$	49.87	$	32.81	$	17.06		$	49.04	$	36.74	$	12.30
West Coast	47.96		27.02		20.94			45.75		31.61		14.14
Weighted Average	47.96		27.06		20.90			45.82		31.65		14.17
Weighted Average after Hedging	52.92		53.01		(0.09		)	53.85		56.45		(2.60		)
Total Production (Mmcfe)	45,586		39,215		6,371			90,495		77,273		13,222
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)	$	0.36	$	0.49	$	(0.13	)	$	0.33	$	0.51	$	(0.18	)
Lease Operating and Transportation Expense per Mcfe (1)(2)	$	0.93	$	0.96	$	(0.03	)	$	0.91	$	0.99	$	(0.08	)
Depreciation, Depletion & Amortization per Mcfe (1)	$	0.63	$	0.95	$	(0.32	)	$	0.64	$	1.05	$	(0.41	)

⁽¹⁾  Refer to page 14 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

⁽²⁾  Amounts include transportation expense of $0.54 and $0.51 per Mcfe for the three months ended March 31, 2017 and March 31, 2016, respectively. Amounts include transportation expense of $0.54 and $0.51 per Mcfe for the six months ended March 31, 2017 and March 31, 2016, respectively.

Page 20.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Six Months of Fiscal 2017
	Volume			Average Hedge Price
Oil Swaps
Brent	48,000	BBL	$	91.00 / BBL
NYMEX	792,000	BBL	$	58.34 / BBL
Total	840,000	BBL	$	60.21 / BBL
Gas Swaps
NYMEX	19,980,000	MMBTU	$	4.35 / MMBTU
Dominion Transmission Appalachian (DOM)	900,000	MMBTU	$	3.82 / MMBTU
Dawn Ontario (DAWN)	6,660,000	MMBTU	$	3.71 / MMBTU
Fixed Price Physical Sales	31,359,518	MMBTU	$	2.54 / MMBTU
Total	58,899,518	MMBTU	$	3.30 / MMBTU
Hedging Summary for Fiscal 2018
	Volume			Average Hedge Price
Oil Swaps
Brent	24,000	BBL	$	91.00 / BBL
NYMEX	1,275,000	BBL	$	54.79 / BBL
Total	1,299,000	BBL	$	55.46 / BBL
Gas Swaps
NYMEX	42,570,000	MMBTU	$	3.34 / MMBTU
DOM	180,000	MMBTU	$	3.82 / MMBTU
DAWN	8,400,000	MMBTU	$	3.08 / MMBTU
Fixed Price Physical Sales	35,260,266	MMBTU	$	2.39 / MMBTU
Total	86,410,266	MMBTU	$	2.93 / MMBTU
Hedging Summary for Fiscal 2019
	Volume			Average Hedge Price
Oil Swaps
NYMEX	912,000	BBL	$	53.84 / BBL
Total	912,000	BBL	$	53.84 / BBL
Gas Swaps
NYMEX	27,060,000	MMBTU	$	3.17 / MMBTU
DAWN	7,200,000	MMBTU	$	3.00 / MMBTU
Fixed Price Physical Sales	15,806,706	MMBTU	$	2.83 / MMBTU
Total	50,066,706	MMBTU	$	3.04 / MMBTU
Hedging Summary for Fiscal 2020
	Volume			Average Hedge Price
Gas Swaps
NYMEX	16,880,000	MMBTU	$	3.07 / MMBTU
DAWN	7,200,000	MMBTU	$	3.00 / MMBTU
Fixed Price Physical Sales	11,277,025	MMBTU	$	2.42 / MMBTU
Total	35,357,025	MMBTU	$	2.85 / MMBTU
Hedging Summary for Fiscal 2021
	Volume			Average Hedge Price
Gas Swaps
NYMEX	4,840,000	MMBTU	$	3.01 / MMBTU
DAWN	600,000	MMBTU	$	3.00 / MMBTU
Fixed Price Physical Sales	7,665,000	MMBTU	$	2.03 / MMBTU
Total	13,105,000	MMBTU	$	2.44 / MMBTU
Hedging Summary for Fiscal 2022
	Volume			Average Hedge Price
Fixed Price Physical Sales	3,822,000	MMBTU	$	2.03 / MMBTU
Total	3,822,000	MMBTU	$	2.03 / MMBTU

Page 21.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
	Three Months Ended				Six Months Ended
	March 31,				March 31,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Firm Transportation - Affiliated	43,243	42,624	619		74,850	67,333	7,517
Firm Transportation - Non-Affiliated	170,124	166,326	3,798		329,298	317,448	11,850
Interruptible Transportation	971	6,483	(5,512	)	4,017	12,115	(8,098	)
	214,338	215,433	(1,095	)	408,165	396,896	11,269
Gathering Volume - (MMcf)
	Three Months Ended				Six Months Ended
	March 31,				March 31,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Gathered Volume - Affiliated	50,598	39,195	11,403		101,167	72,995	28,172
Utility Throughput - (MMcf)
	Three Months Ended				Six Months Ended
	March 31,				March 31,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Retail Sales:
Residential Sales	24,949	24,486	463		40,713	37,619	3,094
Commercial Sales	3,903	3,688	215		6,202	5,515	687
Industrial Sales	157	167	(10	)	234	233	1
	29,009	28,341	668		47,149	43,367	3,782
Off-System Sales	1,122	1,243	(121	)	1,295	1,243	52
Transportation	27,089	27,297	(208	)	46,654	44,913	1,741
	57,220	56,881	339		95,098	89,523	5,575
Energy Marketing Volume
	Three Months Ended				Six Months Ended
	March 31,				March 31,
			Increase				Increase
	2017	2016	(Decrease)		2017	2016	(Decrease)
Natural Gas (MMcf)	14,120	15,165	(1,045	)	25,248	25,263	(15	)

Page 22.

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

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

Management defines Operating Results as reported GAAP earnings before items impacting comparability. The table at page 1 of this report reconciles National Fuel's reported GAAP earnings to Operating Results for the three and six months ended March 31, 2017 and 2016.

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

The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and six months ended March 31, 2017 and 2016:

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
(in thousands)
Reported GAAP Earnings	$	89,284		$	(147,687	)	$	178,191		$	(336,796	)
Depreciation, Depletion and Amortization	56,999			63,947			113,194			134,498
Interest and Other Income	(2,135		)	(3,514		)	(5,347		)	(7,731		)
Interest Expense	29,837			30,231			59,850			61,983
Income Taxes	52,971			(116,030		)	109,403			(260,380		)
Impairment of Oil and Gas Producing   Properties	—			397,443			—			832,894
Joint Development Agreement Professional   Fees	—			—			—			4,682
Adjusted EBITDA	$	226,956		$	224,390		$	455,291		$	429,150
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA	$	49,103		$	53,672		$	97,116		$	104,415
Gathering Adjusted EBITDA	24,172			18,831			49,273			35,290
Total Midstream Businesses Adjusted EBITDA	73,275			72,503			146,389			139,705
Exploration and Production Adjusted EBITDA	93,970			79,608			196,447			170,749
Utility Adjusted EBITDA	61,580			69,467			113,909			115,382
Energy Marketing Adjusted EBITDA	1,382			5,653			4,230			7,500
Corporate and All Other Adjusted EBITDA	(3,251		)	(2,841		)	(5,684		)	(4,186		)
Total Adjusted EBITDA	$	226,956		$	224,390		$	455,291		$	429,150

Page 23.

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

SEGMENT ADJUSTED EBITDA

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(in thousands)	2017			2016			2017			2016
Exploration and Production Segment
Reported GAAP Earnings	$	33,769		$	(213,335	)	$	68,849		$	(450,421	)
Depreciation, Depletion and Amortization	28,851			37,274			57,905			81,307
Interest and Other Income	(147		)	(27		)	(233		)	(693		)
Interest Expense	13,303			13,546			26,826			28,128
Income Taxes	18,194			(155,293		)	43,100			(325,148		)
Impairment of Oil and Gas Producing Properties	—			397,443			—			832,894
Joint Development Agreement Professional Fees	—			—			—			4,682
Adjusted EBITDA	$	93,970		$	79,608		$	196,447		$	170,749
Pipeline and Storage Segment
Reported GAAP Earnings	$	19,256		$	21,194		$	38,624		$	42,470
Depreciation, Depletion and Amortization	10,476			10,865			20,138			21,121
Interest and Other Income	(1,126		)	(592		)	(2,085		)	(2,284		)
Interest Expense	8,342			8,453			16,688			16,491
Income Taxes	12,155			13,752			23,751			26,617
Adjusted EBITDA	$	49,103		$	53,672		$	97,116		$	104,415
Gathering Segment
Reported GAAP Earnings	$	10,285		$	7,568		$	21,266		$	12,490
Depreciation, Depletion and Amortization	3,997			3,589			7,877			7,799
Interest and Other Income	(207		)	(69		)	(354		)	(103		)
Interest Expense	2,235			1,918			4,328			4,987
Income Taxes	7,862			5,825			16,156			10,117
Adjusted EBITDA	$	24,172		$	18,831		$	49,273		$	35,290
Utility Segment
Reported GAAP Earnings	$	25,581		$	31,960		$	46,755		$	50,566
Depreciation, Depletion and Amortization	13,314			11,659			26,415			23,277
Interest and Other Income	(189		)	(828		)	(415		)	(1,611		)
Interest Expense	7,194			7,158			14,392			14,491
Income Taxes	15,680			19,518			26,762			28,659
Adjusted EBITDA	$	61,580		$	69,467		$	113,909		$	115,382
Energy Marketing Segment
Reported GAAP Earnings	$	905		$	3,484		$	2,687		$	4,707
Depreciation, Depletion and Amortization	70			69			140			139
Interest and Other Income	(171		)	(106		)	(306		)	(165		)
Interest Expense	11			7			24			25
Income Taxes	567			2,199			1,685			2,794
Adjusted EBITDA	$	1,382		$	5,653		$	4,230		$	7,500
Corporate and All Other
Reported GAAP Earnings	$	(512	)	$	1,442		$	10		$	3,392
Depreciation, Depletion and Amortization	291			491			719			855
Interest and Other Income	(295		)	(1,892		)	(1,954		)	(2,875		)
Interest Expense	(1,248		)	(851		)	(2,408		)	(2,139		)
Income Taxes	(1,487		)	(2,031		)	(2,051		)	(3,419		)
Adjusted EBITDA	$	(3,251	)	$	(2,841	)	$	(5,684	)	$	(4,186	)

Page 24.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Quarter Ended March 31 (unaudited)	2017		2016
Operating Revenues	$	522,075,000	$	449,132,000
Net Income (Loss) Available for Common Stock	$	89,284,000	$	(147,687,000	)
Earnings (Loss) Per Common Share:
Basic	$	1.05	$	(1.74	)
Diluted	$	1.04	$	(1.74	)
Weighted Average Common Shares:
Used in Basic Calculation	85,334,887		84,806,982
Used in Diluted Calculation	86,006,614		84,806,982
Six Months Ended March 31 (unaudited)
Operating Revenues	$	944,576,000	$	824,327,000
Net Income (Loss) Available for Common Stock	$	178,191,000	$	(336,796,000	)
Earnings (Loss) Per Common Share:
Basic	$	2.09	$	(3.97	)
Diluted	$	2.07	$	(3.97	)
Weighted Average Common Shares:
Used in Basic Calculation	85,261,575		84,728,680
Used in Diluted Calculation	85,897,282		84,728,680
Twelve Months Ended March 31 (unaudited)
Operating Revenues	$	1,572,665,000	$	1,465,204,000
Net Income (Loss) Available for Common Stock	$	224,030,000	$	(817,633,000	)
Earnings (Loss) Per Common Share:
Basic	$	2.63	$	(9.66	)
Diluted	$	2.61	$	(9.66	)
Weighted Average Common Shares:
Used in Basic Calculation	85,114,029		84,620,502
Used in Diluted Calculation	85,738,474		84,620,502