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0000070145false00000701452022-08-042022-08-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): August 4, 2022

NATIONAL FUEL GAS COMPANY
(Exact name of registrant as specified in its charter)
New Jersey 1-3880 13-1086010
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
6363 Main Street
Williamsville, New York 14221
(Address of principal executive offices) (Zip Code)

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

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

    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, par value $1.00 per share NFG New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02    Results of Operations and Financial Condition.

On August 4, 2022, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter and nine months ended June 30, 2022. A copy of the press release is furnished as part of this Current Report as Exhibit 99.

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

In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), the press release furnished as part of this Current Report as Exhibit 99 contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, for measuring the Company’s cash flow and liquidity, 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 prepared in accordance with GAAP.

Certain statements contained herein or in the press release furnished as part of this Current Report, including statements regarding estimated future earnings and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will” and “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There can be no assurance that the Company’s projections will in fact be achieved nor do these projections reflect any acquisitions or divestitures that may occur in the future. While the Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. Furthermore, each forward-looking statement speaks only as of the date on which it is made.


In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: 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; 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 and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; 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; impairments under the SEC’s full cost ceiling test for natural gas; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company’s ability to complete planned strategic transactions; the Company’s ability to successfully integrate acquired assets and achieve expected cost synergies; changes in price differentials between similar quantities of natural gas 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; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas 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; other changes in price differentials between similar quantities of natural gas 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; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; 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; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.


Item 9.01    Financial Statements and Exhibits.

    (d)    Exhibits
Exhibit 104
Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURES

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


NATIONAL FUEL GAS COMPANY
By: /s/ Sarah J. Mugel
Sarah J. Mugel
General Counsel and Secretary

Dated: August 5, 2022


EX-99 2 nfg-6302022xexhibit99x8k.htm EX-99 Document

Exhibit 99
exhibit998kimagea15.jpg
6363 Main Street/Williamsville, NY 14221
Release Date: Immediate August 4, 2022 Brandon J. Haspett
Investor Relations
716-857-7697		 Karen M. Camiolo
Treasurer
716-857-7344

NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS
AND ANNOUNCES PRELIMINARY GUIDANCE FOR FISCAL 2023

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2022 fiscal year and for the nine months ended June 30, 2022.

FISCAL 2022 THIRD QUARTER SUMMARY
•GAAP net income of $108.2 million, or $1.17 per share, compared to GAAP net income of $86.5 million, or $0.94 per share, in the prior year, an increase of 24% per share.
•Adjusted operating results of $141.9 million, or $1.54 per share, an increase of 66%, compared to $0.93 per share, in the prior year (see non-GAAP reconciliation on page 2).
•Adjusted EBITDA of $318.1 million, an increase of 36%, compared to $234.2 million in the prior year (see non-GAAP reconciliation on page 25).
•Successfully closed the sale of the Company's California assets for net cash proceeds of approximately $241 million, after customary closing adjustments, and future contingent consideration with a potential value of up to $30 million.
•Company is revising its fiscal 2022 earnings guidance to a range of $5.85 to $5.95 per share, excluding items impacting comparability, and initiating its fiscal 2023 earnings guidance with a range of $7.25 to $7.75 per share, an increase of 27% from fiscal 2022, at the midpoint (see Guidance Summary on page 8).


MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had an excellent third quarter, with adjusted operating results increasing 66% compared to the prior year. The benefits of our integrated approach to development were evident during the quarter, with the FM100 Project driving meaningful growth in our Pipeline and Storage segment, while providing a valuable outlet for Seneca’s natural gas production. Moreover, our coordinated approach to Appalachian development, in which we own and operate 100% of our gathering infrastructure, allowed us to maximize Seneca’s production during the quarter, capitalizing on the further improved commodity price environment.”

"As we look to next year, the Company is poised for continued earnings growth and sustained free cash flow generation. Underpinned by our highly-efficient Appalachian development program, our valuable firm transportation portfolio, and a strong natural gas price outlook, we expect to continue to grow our natural gas production base, with our gathering business growing in lockstep. This, coupled with our ongoing investment in modernizing our resilient and reliable transmission, storage, and distribution infrastructure, positions the Company to deliver value through further earnings growth, deleveraging our balance sheet, and the predictable return of an increasing amount of cash to shareholders.”



Page 2.


RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS
Three Months Ended  Nine Months Ended
 June 30,  June 30,
(in thousands except per share amounts) 2022 2021 2022 2021
Reported GAAP Earnings $ 108,158  $ 86,475  $ 407,879  $ 276,685 
Items impacting comparability:
Items related to West Coast asset sale:
   Gain on sale of West Coast assets (E&P) (12,736) —  (12,736) — 
   Tax impact of gain on sale of West Coast assets 3,225  —  3,225  — 
   Loss from discontinuance of crude oil cash flow hedges (E&P) 44,632  —  44,632  — 
   Tax impact of loss from discontinuance of crude oil cash flow hedges (11,303) —  (11,303) — 
   Transaction and severance costs (E&P) 9,693  —  9,693  — 
   Tax impact of transaction and severance costs (2,455) —  (2,455) — 
   Total items impacting comparability related to West Coast asset sale 31,056  —  31,056  — 
Reduction of other post-retirement regulatory liability (Utility) —  —  (18,533) — 
Tax impact of reduction of other post-retirement regulatory liability —  —  3,892  — 
Unrealized (gain) loss on other investments (Corporate / All Other)
 3,434  (1,025) 10,093  (575)
Tax impact of unrealized (gain) loss on other investments
 (721) 215  (2,120) 120 
Impairment of oil and gas properties (E&P)
 —  —  —  76,152 
Tax impact of impairment of oil and gas properties
 —  —  —  (20,980)
Gain on sale of timber properties (Corporate / All Other) —  —  —  (51,066)
Tax impact of gain on sale of timber properties —  —  —  14,069 
Premium paid on early redemption of debt —  —  —  15,715 
Tax impact of premium paid on early redemption of debt —  —  —  (4,321)
Adjusted Operating Results $ 141,927  $ 85,665  $ 432,267  $ 305,799 
Reported GAAP Earnings Per Share $ 1.17  $ 0.94  $ 4.43  $ 3.02 
Items impacting comparability:
Items related to West Coast asset sale:
   Gain on sale of West Coast assets, net of tax (E&P) (0.10) —  (0.10) — 
   Loss from discontinuance of crude oil cash flow hedges, net of tax (E&P) 0.36  —  0.36  — 
   Transaction and severance costs, net of tax (E&P) 0.08  —  0.08  — 
   Total items impacting comparability related to West Coast asset sale 0.34  —  0.34  — 
Reduction of other post-retirement regulatory liability, net of tax (Utility) —  —  (0.16) — 
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)
 0.03  (0.01) 0.08  — 
Impairment of oil and gas properties, net of tax (E&P)
 —  —  —  0.60 
Gain on sale of timber properties, net of tax (Corporate / All Other) —  —  —  (0.40)
Premium paid on early redemption of debt, net of tax —  —  —  0.12 
Adjusted Operating Results Per Share $ 1.54  $ 0.93  $ 4.69  $ 3.34 


DISCUSSION OF GUIDANCE UPDATE

National Fuel is revising its fiscal 2022 earnings guidance range and is now projecting earnings, excluding items impacting comparability, will be within the range of $5.85 to $5.95 per share. This updated range reflects the results of the third quarter, along with updated assumptions for the balance of the year, as detailed on page 8.

The Exploration and Production segment’s fiscal 2022 net production is expected to be in the range of 350 to 355 Bcfe, an increase of 2.5 Bcfe from the prior midpoint. Seneca currently has firm sales contracts in place for approximately 90% of its projected remaining fiscal 2022 natural gas production, limiting its exposure to in-basin markets. Approximately 80% of expected remaining Appalachian production is either matched by a financial hedge or was entered into at a fixed price.

The Company is also initiating preliminary guidance for fiscal 2023 with earnings projected to be within a range of $7.25 to $7.75 per share, or $7.50 per share at the midpoint of the range, an increase of 27% from the midpoint of the fiscal 2022 Page 3.
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guidance range. The anticipated increase in earnings is being driven largely by higher anticipated commodity price realizations, as well as forecasted growth in natural gas production and the associated impact on Gathering revenues.

Seneca’s fiscal 2023 net production is increasing to an expected range of 370 to 390 Bcfe, an increase of 27.5 Bcfe versus fiscal 2022 at the midpoint of the respective guidance ranges. When adjusting for the sale of Seneca’s California properties, fiscal 2023 production is expected to be 11% higher than fiscal 2022, at the midpoint of the respective guidance ranges.

In addition, the Company anticipates its natural gas price realizations after hedging to increase by approximately $0.62 per Mcf from its estimated fiscal 2022 realizations, driven in large part by lower expected hedge losses. Overall, Seneca has firm sales contracts in place for approximately 87% of its expected fiscal 2023 natural gas production, limiting its exposure to in-basin markets, while also having 67% supported by financial hedges, limiting exposure to potential swings in natural gas prices in fiscal 2023.

The Company’s consolidated capital expenditures in fiscal 2023 are expected to be in a range of $830 million to $940 million, an increase of $77.5 million versus the midpoint of its fiscal 2022 guidance. This preliminary guidance range incorporates planned activity, as described below, as well as anticipated inflationary impacts across all segments.

The Exploration and Production segment expects to maintain its current two-rig program for the entirety of fiscal 2023, and modestly increase completion activity relative to fiscal 2022. This increased level of completion activity is expected to be coupled with a greater share of our development program targeting the prolific Tioga County acreage. This will require incremental near-term capital expenditures in the Gathering segment to build out necessary infrastructure to support Seneca's growing production in the region.

In the Company’s regulated Pipeline and Storage and Utility segments, capital expenditures are primarily focused on modernizing existing infrastructure, which is expected to drive rate base growth in the range of 3% to 5%, on average over the next several years. These modernization efforts continue to enhance the safety and resiliency of our infrastructure and contribute to the ongoing reduction in the Company’s emissions profile.

Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2022 and fiscal 2023 are outlined in the table on page 8.


DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended June 30, 2022 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the nine months ended June 30, 2022 are summarized on pages 11 and 12). It may be helpful to refer to those tables while reviewing this discussion.

Note that management defines Adjusted Operating Results as reported GAAP earnings adjusted for items impacting comparability, and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

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Page 4.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC ("Seneca"). Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania.
Three Months Ended
June 30,
(in thousands) 2022 2021 Variance
GAAP Earnings $ 56,497  $ 39,015  $ 17,482 
Gain on sale of West Coast assets, net of tax (9,511) —  (9,511)
Loss from discontinuance of crude oil cash flow hedges, net of tax 33,329  —  33,329 
Transaction and severance costs related to West Coast asset sale, net of tax 7,238  —  7,238 
Adjusted Operating Results $ 87,553  $ 39,015  $ 48,538 
Adjusted EBITDA $ 184,622  $ 116,052  $ 68,570 

Seneca’s third quarter GAAP earnings, which increased $17.5 million versus the prior year, include several items related to the sale of its California assets. In particular, Seneca recorded a $12.7 million ($9.5 million after-tax) gain related to assets that were not subject to the full cost method of accounting. The Company also recorded a loss of $44.6 million ($33.3 million after-tax) related to the termination of its remaining crude oil derivative contracts as a result of the sale. In addition, the Company incurred transaction and severance costs of $9.7 million ($7.2 million after-tax) related to the California asset sale. Excluding these items noted above, Seneca’s earnings increased $48.5 million primarily due to higher realized natural gas and crude oil prices, higher natural gas production, and a lower effective income tax rate, all of which were partially offset by higher operating expenses and higher interest expense.

Seneca produced 92.4 Bcfe during the third quarter, an increase of 9.4 Bcfe, or 11%, from the prior year. This is a result of a 9.5 Bcf increase in natural gas production primarily due to growth from Seneca's development program in Appalachia. Seneca's crude oil production decreased 32 MBbls, or 6%, versus the prior year primarily due to natural production decline in California.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.87 per Mcf, an increase of $0.67 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $77.65 per Bbl, an increase of $18.43 per Bbl compared to the prior year.

Lease operating and transportation (“LOE”) expense increased $12.8 million primarily due to higher transportation costs in Appalachia as a result of increased production, and higher steam fuel, labor, utilities, well repair and workover expenses in California. LOE expense includes $53.1 million in intercompany expense for gathering and compression services used to connect Seneca's Appalachian production to sales points along interstate pipelines. Depreciation, depletion and amortization ("DD&A") expense increased $9.3 million due to higher natural gas production and a higher per unit DD&A rate, which was driven by an increase in capitalized costs in Seneca's full cost pool. Excluding the impact of the transaction and severance costs related to the sale of Seneca's California assets noted above, Seneca's other operating expenses increased $6.1 million due primarily to the accrual of estimated plugging and abandonment expenses related to certain offshore Gulf of Mexico wells that were formerly owned by the Company. Several years ago, Seneca sold those wells to an operator that has since gone bankrupt. As a result of that bankruptcy, the cost of abandoning the wells will likely revert back to Seneca.

Interest expense increased $2.6 million due primarily to a higher average amount of intercompany short-term borrowings outstanding coupled with a higher weighted average interest rate on such borrowings. The reduction in Seneca's effective income tax rate was primarily driven by the realization of the Enhanced Oil Recovery tax credit in fiscal 2022, which was not available in the prior year.

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Page 5.

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
June 30,
(in thousands) 2022 2021 Variance
GAAP Earnings $ 26,599  $ 21,948  $ 4,651 
Adjusted EBITDA $ 62,565  $ 53,086  $ 9,479 

The Pipeline and Storage segment’s third quarter GAAP earnings increased $4.7 million versus the prior year primarily due to an increase in operating revenues, partially offset by higher operation and maintenance ("O&M") expense and higher DD&A expense. The increase in operating revenues of $11.5 million was primarily attributable to higher transportation revenues from Supply Corporation's FM100 Project, which was placed in service in December 2021. O&M expense increased $1.7 million primarily due to an increase in personnel costs, as well as higher vehicle fuel costs and compressor station maintenance costs. The increase in DD&A expense of $1.7 million was primarily attributable to incremental depreciation expense from the FM100 Project.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which primarily delivers Seneca’s gross Appalachian production to the interstate pipeline system.
Three Months Ended
June 30,
(in thousands) 2022 2021 Variance
GAAP Earnings $ 24,658  $ 20,427  $ 4,231 
Adjusted EBITDA $ 46,151  $ 39,929  $ 6,222 

The Gathering segment’s third quarter GAAP earnings increased $4.2 million versus the prior year primarily due to higher operating revenues, which was partially offset by higher O&M expense. Operating revenues increased $7.3 million, or 15%, primarily driven by an 18.0 Bcf increase in gathered volumes from new wells that were brought on-line in Appalachia. The increase in O&M expense of $1.1 million was primarily due to an increase in personnel costs, higher costs for materials, and an increase in compressor station operating and preventative maintenance activity during the quarter.


Downstream Business

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
June 30,
(in thousands) 2022 2021 Variance
GAAP Earnings $ 4,622  $ 4,841  $ (219)
Adjusted EBITDA $ 27,042  $ 29,431  $ (2,389)

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Page 6.

The Utility segment’s third quarter GAAP earnings were essentially flat versus the prior year as the benefit of higher customer margin (operating revenues less purchased gas sold) and a decrease in non-service post-retirement benefit costs recorded in other income (deductions) were offset by higher O&M expense. The increase in customer margin was due primarily to higher revenues from the Company's system modernization tracking mechanism in its New York service territory, partially offset by a reduction in base rates in Pennsylvania as a result of a rate proceeding in Pennsylvania that concluded in the second quarter whereby the Utility agreed to lower the amount of other post-employment benefit (“OPEB”) expense it recovers in rates. With the elimination of OPEB expenses in rates, there was also a decrease in non-service post-retirement benefit costs recorded in other income (deductions). The increase in O&M expense was primarily attributable to higher personnel costs and an increase in vehicle fuel costs.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $4.2 million in the current year third quarter, which was a $4.4 million decrease from the combined earnings of $0.2 million generated in the prior-year third quarter. The decrease in earnings was primarily driven by unrealized losses on investment securities recognized in the current quarter compared to unrealized gains on investment securities in the prior-year third quarter.


EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, August 5, 2022, at 11 a.m. Eastern Time to discuss this announcement. Pre-registration is required to access the teleconference by phone in a listen-only mode by following this link: https://conferencingportals.com/event/LUMnWUbV. To access the webcast, visit the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. An audio replay of the teleconference call will be available approximately two hours following the teleconference at the same website link and by phone at 800-770-2030 or 647-362-9199 using conference ID number “99543”. Both the webcast and conference call replay will be available until the close of business on Friday, August 12, 2022.

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

Analyst Contact: Brandon J. Haspett 716-857-7697
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: 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; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; 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; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of Page 7.
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interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; changes in price differentials between similar quantities of natural gas 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; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas 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; other changes in price differentials between similar quantities of natural gas 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; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; 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; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; 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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Page 8.


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2022 and initiating guidance for fiscal 2023. Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2022 and fiscal 2023 are outlined in the table below.

The revised earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the nine months ended June 30, 2022, including: (1) the after-tax gain on the sale of West Coast assets, which increased earnings by $0.10 per share; (2) the after-tax loss from the discontinuance of crude oil cash flow hedges, which reduced earnings by $0.36 per share; (3) after-tax transaction and severance costs related to the West Coast asset sale, which reduced earnings by $0.08 per share; (4) the after-tax reduction of an other post-retirement regulatory liability, which increased earnings by $0.16 per share; and (5) after-tax unrealized losses on other investments, which reduced earnings by $0.08 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the three months ending September 30, 2022, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.
Updated FY 2022 Guidance Preliminary FY 2023 Guidance
Consolidated Earnings per Share, excluding items impacting comparability
 $5.85 to $5.95 $7.25 to $7.75
Consolidated Effective Tax Rate ~ 25 - 25.5% ~ 25.5 - 26%
Capital Expenditures (Millions)
    Exploration and Production $525 - $550 $525 - $575
    Pipeline and Storage $100 - $120 $110 - $130
    Gathering $50 - $60 $85 - $105
    Utility $100 - $110 $110 - $130
    Consolidated Capital Expenditures $775 - $840 $830 - $940
Exploration & Production Segment Guidance*
    Commodity Price Assumptions
    NYMEX natural gas price (Oct - Mar | Apr - Sep)
$7.75 /MMBtu
$7.50 /MMBtu l $5.00 /MMBtu
    Appalachian basin spot price (Oct - Mar | Apr - Sep)
$7.20 /MMBtu
$6.50 /MMBtu l $3.90 /MMBtu
    Production (Bcfe) 350 to 355 370 to 390
    E&P Operating Costs ($/Mcfe)
    LOE $0.70 - $0.71 $0.67 - $0.69
    G&A ~$0.18 $0.17 - $0.19
    DD&A $0.57 - $0.59 $0.60 - $0.64
Other Business Segment Guidance (Millions)
    Gathering Segment Revenues $210 - $220 $235 - $250
    Pipeline and Storage Segment Revenues $365 - $375 $360 - $380

* Fiscal 2022 commodity price assumptions and operating costs are for the remaining 3 months of the fiscal year.










Page 9.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2022
(Unaudited)
Upstream Midstream Downstream
Exploration & Pipeline & Corporate /
(Thousands of Dollars) Production Storage Gathering Utility All Other Consolidated*
Third quarter 2021 GAAP earnings $ 39,015  $ 21,948  $ 20,427  $ 4,841  $ 244  $ 86,475 
Items impacting comparability:
Unrealized (gain) loss on other investments (1,025) (1,025)
Tax impact of unrealized (gain) loss on other investments
 215  215 
Third quarter 2021 adjusted operating results 39,015  21,948  20,427  4,841  (566) 85,665 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production 16,589  16,589 
Higher (lower) crude oil production (1,499) (1,499)
Higher (lower) realized natural gas prices, after hedging 47,404  47,404 
Higher (lower) realized crude oil prices, after hedging 7,663  7,663 
Midstream Revenues
Higher (lower) operating revenues 9,174  5,747  14,921 
Downstream Margins***
Impact of usage and weather 232  232 
Impact of new rates (1,105) (1,105)
System modernization tracker revenues 1,345  1,345 
Operating Expenses
Lower (higher) lease operating and transportation expenses (10,129) (10,129)
Lower (higher) operating expenses (4,806) (1,360) (833) (2,629) 1,616  (8,012)
Lower (higher) depreciation / depletion (7,308) (1,353) (8,661)
Other Income (Expense)
(Higher) lower other deductions 1,938  (1,781) 157 
(Higher) lower interest expense (2,039) (587) (508) 965  (2,169)
Income Taxes
Lower (higher) income tax expense / effective tax rate 3,267  (658) (317) 388  (1,715) 965 
All other / rounding (604) (565) (366) 120  (24) (1,439)
Third quarter 2022 adjusted operating results 87,553  26,599  24,658  4,622  (1,505) 141,927 
Items impacting comparability:
Gain on sale of West Coast assets 12,736  12,736 
Tax impact of gain on sale of West Coast assets (3,225) (3,225)
Loss from discontinuance of crude oil cash flow hedges (44,632) (44,632)
Tax impact of loss from discontinuance of crude oil cash flow hedges 11,303  11,303 
Transaction and severance costs related to West Coast asset sale (9,693) (9,693)
Tax impact of transaction and severance costs related to West Coast asset sale 2,455  2,455 
Unrealized gain (loss) on other investments (3,434) (3,434)
Tax impact of unrealized gain (loss) on other investments 721  721 
Third quarter 2022 GAAP earnings $ 56,497  $ 26,599  $ 24,658  $ 4,622  $ (4,218) $ 108,158 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.



Page 10.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2022
(Unaudited)
Upstream Midstream Downstream
Exploration & Pipeline & Corporate /
Production Storage Gathering Utility All Other Consolidated*
Third quarter 2021 GAAP earnings per share $ 0.43  $ 0.24  $ 0.22  $ 0.05  $ —  $ 0.94 
Items impacting comparability:
Unrealized (gain) loss on other investments, net of tax (0.01) (0.01)
Third quarter 2021 adjusted operating results per share 0.43  0.24  0.22  0.05  (0.01) 0.93 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production 0.18  0.18 
Higher (lower) crude oil production (0.02) (0.02)
Higher (lower) realized natural gas prices, after hedging
 0.51  0.51 
Higher (lower) realized crude oil prices, after hedging 0.08  0.08 
Midstream Revenues
Higher (lower) operating revenues 0.10  0.06  0.16 
Downstream Margins***
Impact of usage and weather —  — 
Impact of new rates (0.01) (0.01)
System modernization tracker revenues 0.01  0.01 
Operating Expenses
Lower (higher) lease operating and transportation expenses
 (0.11) (0.11)
Lower (higher) operating expenses (0.05) (0.01) (0.01) (0.03) 0.02  (0.08)
Lower (higher) depreciation / depletion (0.08) (0.01) (0.09)
Other Income (Expense)
(Higher) lower other deductions 0.02  (0.02) — 
(Higher) lower interest expense (0.02) (0.01) (0.01) 0.01  (0.03)
Income Taxes
Lower (higher) income tax expense / effective tax rate
 0.04  (0.01) —  —  (0.02) 0.01 
All other / rounding (0.01) (0.01) —  0.02  —  — 
Third quarter 2022 adjusted operating results per share 0.95  0.29  0.27  0.05  (0.02) 1.54 
Items impacting comparability:
Gain on sale of West Coast assets, net of tax 0.10  0.10 
Loss from discontinuance of crude oil cash flow hedges, net of tax (0.36) (0.36)
Transaction and severance costs related to West Coast asset sale, net of tax (0.08) (0.08)
Unrealized gain (loss) on other investments, net of tax
 (0.03) (0.03)
Third quarter 2022 GAAP earnings per share $ 0.61  $ 0.29  $ 0.27  $ 0.05  $ (0.05) $ 1.17 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.










Page 11.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2022
(Unaudited)
Upstream Midstream Downstream
Exploration & Pipeline & Corporate /
(Thousands of Dollars) Production Storage Gathering Utility All Other Consolidated*
Nine months ended June 30, 2021 GAAP earnings $ 46,213  $ 71,060  $ 61,677  $ 59,922  $ 37,813  $ 276,685 
Items impacting comparability:
Impairment of oil and gas properties 76,152  76,152 
Tax impact of impairment of oil and gas properties (20,980) (20,980)
Gain on sale of timber properties (51,066) (51,066)
Tax impact of gain on sale of timber properties 14,069  14,069 
Premium paid on early redemption of debt
 14,772  943  15,715 
Tax impact of premium paid on early redemption of debt
 (4,062) (259) (4,321)
Unrealized (gain) loss on other investments (575) (575)
Tax impact of unrealized (gain) loss on other investments
 120  120 
Nine months ended June 30, 2021 adjusted operating results 112,095  71,060  62,361  59,922  361  305,799 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production 30,188  30,188 
Higher (lower) crude oil production (3,787) (3,787)
Higher (lower) realized natural gas prices, after hedging 93,251  93,251 
Higher (lower) realized crude oil prices, after hedging 19,312  19,312 
Higher (lower) other operating revenues 4,772  4,772 
Midstream Revenues
Higher (lower) operating revenues 15,550  11,717  27,267 
Downstream Margins***
Impact of usage and weather
 3,194  3,194 
Impact of new rates (5,945) (5,945)
System modernization tracker revenues 3,719  3,719 
Regulatory revenue adjustments (1,047) (1,047)
Higher (lower) energy marketing margins 1,301  1,301 
Operating Expenses
Lower (higher) lease operating and transportation expenses
 (17,314) (17,314)
Lower (higher) operating expenses (7,841) (5,878) (2,180) (4,542) 1,756  (18,685)
Lower (higher) property, franchise and other taxes (3,136) (751) (3,887)
Lower (higher) depreciation / depletion (14,089) (2,853) (957) (17,899)
Other Income (Expense)
(Higher) lower other deductions 710  8,828  (1,875) 7,663 
(Higher) lower interest expense 3,176  (679) 2,497 
Income Taxes
Lower (higher) income tax expense / effective tax rate
 3,833  (436) (1,019) 1,243  (2,943) 678 
All other / rounding 583  (166) (35) 466  342  1,190 
Nine months ended June 30, 2022 adjusted operating results 221,043  77,236  69,887  65,159  (1,058) 432,267 
Items impacting comparability:
Reduction of other post-retirement regulatory liability 18,533  18,533 
Tax impact of reduction of other post-retirement regulatory liability (3,892) (3,892)
Gain on sale of West Coast assets 12,736  12,736 
Tax impact of gain on sale of West Coast assets (3,225) (3,225)
Loss from discontinuance of crude oil cash flow hedges (44,632) (44,632)
Tax impact of loss from discontinuance of crude oil cash flow hedges 11,303  11,303 
Transaction and severance costs related to West Coast asset sale (9,693) (9,693)
Tax impact of transaction and severance costs related to West Coast asset sale 2,455  2,455 
Unrealized gain (loss) on other investments
 (10,093) (10,093)
Tax impact of unrealized gain (loss) on other investments
 2,120  2,120 
Nine months ended June 30, 2022 GAAP earnings $ 189,987  $ 77,236  $ 69,887  $ 79,800  $ (9,031) $ 407,879 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.



Page 12.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2022
(Unaudited)
Upstream Midstream Downstream
Exploration & Pipeline & Corporate /
Production Storage Gathering Utility All Other Consolidated*
Nine months ended June 30, 2021 GAAP earnings per share $ 0.50  $ 0.78  $ 0.67  $ 0.65  $ 0.42  $ 3.02 
Items impacting comparability:
Impairment of oil and gas properties, net of tax 0.60  0.60 
Gain on sale of timber properties, net of tax (0.40) (0.40)
Premium paid on early redemption of debt, net of tax
 0.12  —  0.12 
Unrealized (gain) loss on other investments, net of tax —  — 
Rounding 0.01  (0.01) — 
Nine months ended June 30, 2021 adjusted operating results per share 1.22  0.78  0.68  0.65  0.01  3.34 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production 0.33  0.33 
Higher (lower) crude oil production (0.04) (0.04)
Higher (lower) realized natural gas prices, after hedging
 1.01  1.01 
Higher (lower) realized crude oil prices, after hedging 0.21  0.21 
Higher (lower) other operating revenues 0.05  0.05 
Midstream Revenues
Higher (lower) operating revenues 0.17  0.13  0.30 
Downstream Margins***
Impact of usage and weather
 0.03  0.03 
Impact of new rates (0.06) (0.06)
System modernization tracker revenues 0.04  0.04 
Regulatory revenue adjustments (0.01) (0.01)
Higher (lower) energy marketing margins 0.01  0.01 
Operating Expenses
Lower (higher) lease operating and transportation expenses
 (0.19) (0.19)
Lower (higher) operating expenses (0.09) (0.06) (0.02) (0.05) 0.02  (0.20)
Lower (higher) property, franchise and other taxes (0.03) (0.01) (0.04)
Lower (higher) depreciation / depletion (0.15) (0.03) (0.01) (0.19)
Other Income (Expense)
(Higher) lower other deductions 0.01  0.10  (0.02) 0.09 
(Higher) lower interest expense 0.03  (0.01) 0.02 
Income Taxes
Lower (higher) income tax expense / effective tax rate
 0.04  —  (0.01) 0.01  (0.03) 0.01 
All other / rounding 0.01  (0.02) (0.01) 0.01  (0.01) (0.02)
Nine months ended June 30, 2022 adjusted operating results per share 2.40  0.84  0.76  0.71  (0.02) 4.69 
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax 0.16 0.16 
Gain on sale of West Coast assets, net of tax 0.10  0.10 
Loss from discontinuance of crude oil cash flow hedges, net of tax (0.36) (0.36)
Transaction and severance costs related to West Coast asset sale, net of tax (0.08) (0.08)
Unrealized gain (loss) on other investments, net of tax
 (0.08) (0.08)
Nine months ended June 30, 2022 GAAP earnings per share $ 2.06  $ 0.84  $ 0.76  $ 0.87  $ (0.10) $ 4.43 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.




Page 13.

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 2022 2021 2022 2021
Operating Revenues:
Utility and Energy Marketing Revenues $ 179,888  $ 126,933  $ 785,664  $ 587,247 
Exploration and Production and Other Revenues 252,638  209,618  758,594  621,933 
Pipeline and Storage and Gathering Revenues 70,098  57,846  206,642  177,491 
502,624  394,397  1,750,900  1,386,671 
Operating Expenses:
Purchased Gas 67,948  18,737  369,168  177,018 
Operation and Maintenance:
      Utility and Energy Marketing 46,403  42,577  146,523  139,521 
      Exploration and Production and Other 64,593  43,112  160,016  127,033 
      Pipeline and Storage and Gathering 33,988  31,239  97,434  87,471 
Property, Franchise and Other Taxes 25,874  24,492  78,093  71,259 
Depreciation, Depletion and Amortization 95,857  84,170  275,681  251,632 
Impairment of Oil and Gas Producing Properties —  —  —  76,152 
334,663  244,327  1,126,915  930,086 
Gain on Sale of Assets 12,736  —  12,736  51,066 
Operating Income 180,697  150,070  636,721  507,651 
Other Income (Expense):
Other Income (Deductions) (5,649) (2,028) 3,291  (15,078)
Interest Expense on Long-Term Debt (30,091) (30,220) (90,300) (111,296)
Other Interest Expense (3,882) (1,012) (6,561) (4,630)
Income Before Income Taxes 141,075  116,810  543,151  376,647 
Income Tax Expense 32,917  30,335  135,272  99,962 
Net Income Available for Common Stock $ 108,158  $ 86,475  $ 407,879  $ 276,685 
Earnings Per Common Share
Basic $ 1.18  $ 0.95  $ 4.46  $ 3.04 
Diluted $ 1.17  $ 0.94  $ 4.43  $ 3.02 
Weighted Average Common Shares:
Used in Basic Calculation 91,456,265 91,172,683 91,388,417 91,113,973
Used in Diluted Calculation 92,168,518 91,762,898 92,083,560 91,642,849









Page 14.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, September 30,
(Thousands of Dollars) 2022 2021
ASSETS
Property, Plant and Equipment $12,299,545  $13,103,639 
Less - Accumulated Depreciation, Depletion and Amortization 5,914,097  6,719,356 
Net Property, Plant and Equipment
 6,385,448  6,384,283 
Current Assets:
Cash and Temporary Cash Investments 432,576  31,528 
Hedging Collateral Deposits 154,470  88,610 
Receivables - Net 399,033  205,294 
Unbilled Revenue 18,525  17,000 
Gas Stored Underground 12,336  33,669 
Materials, Supplies and Emission Allowances 39,634  53,560 
Unrecovered Purchased Gas Costs 32,412  33,128 
Other Current Assets 61,359  59,660 
Total Current Assets
 1,150,345  522,449 
Other Assets:
Recoverable Future Taxes 125,576  121,992 
Unamortized Debt Expense 9,308  10,589 
Other Regulatory Assets 58,075  60,145 
Deferred Charges 77,542  59,939 
Other Investments 96,566  149,632 
Goodwill 5,476  5,476 
Prepaid Pension and Post-Retirement Benefit Costs 187,692  149,151 
Fair Value of Derivative Financial Instruments 12,571  — 
Other 3,487  1,169 
Total Other Assets
 576,293  558,093 
Total Assets $8,112,086  $7,464,825 
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,465,569 Shares and 91,181,549 Shares, Respectively
 $91,466  $91,182 
Paid in Capital 1,022,954  1,017,446 
Earnings Reinvested in the Business 1,472,395  1,191,175 
Accumulated Other Comprehensive Loss (582,868) (513,597)
Total Comprehensive Shareholders' Equity 2,003,947  1,786,206 
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,082,463  2,628,687 
Total Capitalization
 4,086,410  4,414,893 
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper 400,000  158,500 
Current Portion of Long-Term Debt 549,000  — 
Accounts Payable 145,320  171,655 
Amounts Payable to Customers 292  21 
Dividends Payable 43,446  41,487 
Interest Payable on Long-Term Debt 45,017  17,376 
Customer Advances —  17,223 
Customer Security Deposits 25,200  19,292 
Other Accruals and Current Liabilities 254,383  194,169 
Fair Value of Derivative Financial Instruments 703,788  616,410 
Total Current and Accrued Liabilities
 2,166,446  1,236,133 
Other Liabilities:
Deferred Income Taxes 767,207  660,420 
Taxes Refundable to Customers 346,577  354,089 
Cost of Removal Regulatory Liability 256,092  245,636 
Other Regulatory Liabilities 199,094  200,643 
Pension and Other Post-Retirement Liabilities 4,732  7,526 
Asset Retirement Obligations 152,100  209,639 
Other Liabilities 133,428  135,846 
Total Other Liabilities 1,859,230  1,813,799 
Commitments and Contingencies —  — 
Total Capitalization and Liabilities $8,112,086  $7,464,825 



Page 15.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
June 30,
(Thousands of Dollars) 2022 2021
Operating Activities:
Net Income Available for Common Stock $ 407,879  $ 276,685 
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
    
Gain on Sale of Assets (12,736) (51,066)
Impairment of Oil and Gas Producing Properties —  76,152 
Depreciation, Depletion and Amortization 275,681  251,632 
Deferred Income Taxes 121,150  89,277 
Premium Paid on Early Redemption of Debt —  15,715 
Stock-Based Compensation 15,178  12,296 
Reduction of Other Post-Retirement Regulatory Liability (18,533) — 
Other 27,527  7,795 
Change in:    
Receivables and Unbilled Revenue (194,832) (40,733)
Gas Stored Underground and Materials, Supplies and Emission Allowances 24,141  19,024 
Unrecovered Purchased Gas Costs 716  — 
Other Current Assets (1,699) (4,282)
Accounts Payable 19,259  7,474 
Amounts Payable to Customers 271  (3,595)
Customer Advances (17,223) (15,319)
Customer Security Deposits 5,908  2,073 
Other Accruals and Current Liabilities 61,322  23,154 
Other Assets (44,184) 5,839 
Other Liabilities (15,809) (311)
Net Cash Provided by Operating Activities $ 654,016  $ 671,810 
Investing Activities:
Capital Expenditures $ (592,487) $ (512,775)
Net Proceeds from Sale of Oil and Gas Producing Properties 254,439  — 
Net Proceeds from Sale of Timber Properties —  104,582 
Sale of Fixed Income Mutual Fund Shares in Grantor Trust 30,000  — 
Other 13,528  11,223 
Net Cash Used in Investing Activities $ (294,520) $ (396,970)
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper $ 241,500  $ (30,000)
Reduction of Long-Term Debt —  (515,715)
Dividends Paid on Common Stock (124,701) (121,606)
Net Proceeds From Issuance of Long-Term Debt —  495,267 
Net Repurchases of Common Stock (9,387) (3,605)
Net Cash Provided by (Used in) Financing Activities $ 107,412  $ (175,659)
Net Increase in Cash, Cash Equivalents, and Restricted Cash 466,908  99,181 
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 120,138  20,541 
Cash, Cash Equivalents, and Restricted Cash at June 30 $ 587,046  $ 119,722 









Page 16.




NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts) June 30, June 30,
EXPLORATION AND PRODUCTION SEGMENT 2022 2021 Variance 2022 2021 Variance
Total Operating Revenues $ 252,638  $ 209,535  $ 43,103  $ 758,428  $ 621,116  $ 137,312 
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense 26,844  16,165  10,679  63,396  51,017  12,379 
Lease Operating and Transportation Expense 79,529  66,708  12,821  221,213  199,296  21,917 
All Other Operation and Maintenance Expense 8,854  3,757  5,097  18,183  10,944  7,239 
Property, Franchise and Other Taxes 7,114  6,853  261  19,888  15,918  3,970 
Depreciation, Depletion and Amortization 55,136  45,886  9,250  155,190  137,356  17,834 
Impairment of Oil and Gas Producing Properties —  —  —  —  76,152  (76,152)
177,477  139,369  38,108  477,870  490,683  (12,813)
Gain on Sale of Assets 12,736  —  12,736  12,736  —  12,736 
Operating Income 87,897  70,166 17,731  293,294  130,433 162,861 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs (186) (289) 103  (558) (860) 302 
Interest and Other Income 482  18  464  613  176  437 
Interest Expense on Long-Term Debt —  —  —  —  (15,119) 15,119 
Interest Expense (14,589) (12,008) (2,581) (38,927) (42,601) 3,674 
Income Before Income Taxes 73,604  57,887  15,717  254,422  72,029  182,393 
Income Tax Expense 17,107  18,872  (1,765) 64,435  25,816  38,619 
Net Income $ 56,497  $ 39,015  $ 17,482  $ 189,987  $ 46,213  $ 143,774 
Net Income Per Share (Diluted) $ 0.61  $ 0.43  $ 0.18  $ 2.06  $ 0.50  $ 1.56 












Page 17.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts) June 30, June 30,
PIPELINE AND STORAGE SEGMENT 2022 2021 Variance 2022 2021 Variance
Revenues from External Customers $ 67,236  $ 57,258  $ 9,978  $ 196,579  $ 175,881  $ 20,698 
Intersegment Revenues 28,312  26,805  1,507  82,716  82,651  65 
Total Operating Revenues 95,548  84,063  11,485  279,295  258,532  20,763 
Operating Expenses:
Purchased Gas (139) (11) (128) 1,298  219  1,079 
Operation and Maintenance 24,639  22,918  1,721  71,249  63,809  7,440 
Property, Franchise and Other Taxes 8,483  8,070  413  25,664  24,713  951 
Depreciation, Depletion and Amortization 17,322  15,609  1,713  50,417  46,806  3,611 
50,305  46,586  3,719  148,628  135,547  13,081 
Operating Income 45,243  37,477  7,766  130,667  122,985  7,682 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit 767  125  642  2,302  376  1,926 
Interest and Other Income 735  1,364  (629) 2,330  3,159  (829)
Interest Expense (10,813) (10,070) (743) (31,564) (31,353) (211)
Income Before Income Taxes 35,932  28,896  7,036  103,735  95,167  8,568 
Income Tax Expense 9,333  6,948  2,385  26,499  24,107  2,392 
Net Income $ 26,599  $ 21,948  $ 4,651  $ 77,236  $ 71,060  $ 6,176 
Net Income Per Share (Diluted) $ 0.29  $ 0.24  $ 0.05  $ 0.84  $ 0.78  $ 0.06 
Three Months Ended Nine Months Ended
March 31, June 30,
GATHERING SEGMENT 2022 2021 Variance 2022 2021 Variance
Revenues from External Customers $ 2,862  $ 588  $ 2,274  $ 10,063  $ 1,610  $ 8,453 
Intersegment Revenues 53,069  48,068  5,001  150,696  144,317  6,379 
Total Operating Revenues 55,931  48,656  7,275  160,759  145,927  14,832 
Operating Expenses:
Operation and Maintenance 9,770  8,715  1,055  27,509  24,750  2,759 
Property, Franchise and Other Taxes 10  12  (2) 12  30  (18)
Depreciation, Depletion and Amortization 8,589  8,131  458  25,343  24,132  1,211 
18,369  16,858  1,511  52,864  48,912  3,952 
Operating Income 37,562  31,798  5,764  107,895  97,015  10,880 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs (56) (68) 12  (168) (203) 35 
Interest and Other Income 53  10  43  81  253  (172)
Interest Expense on Long-Term Debt —  —  —  —  (965) 965 
Interest Expense (4,164) (4,102) (62) (12,383) (12,435) 52 
Income Before Income Taxes 33,395  27,638  5,757  95,425  83,665  11,760 
Income Tax Expense 8,737  7,211  1,526  25,538  21,988  3,550 
Net Income $ 24,658  $ 20,427  $ 4,231  $ 69,887  $ 61,677  $ 8,210 
Net Income Per Share (Diluted) $ 0.27  $ 0.22  $ 0.05  $ 0.76  $ 0.67  $ 0.09 


Page 18.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESS
Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts) June 30, June 30,
UTILITY SEGMENT 2022 2021 Variance 2022 2021 Variance
Revenues from External Customers $ 179,888  $ 126,934  $ 52,954  $ 785,664  $ 586,618  $ 199,046 
Intersegment Revenues 60  74  (14) 245  271  (26)
Total Operating Revenues 179,948  127,008  52,940  785,909  586,889  199,020 
Operating Expenses:
Purchased Gas 95,587  44,848  50,739  448,268  255,011  193,257 
Operation and Maintenance 47,176  43,296  3,880  148,885  141,412  7,473 
Property, Franchise and Other Taxes 10,143  9,433  710  32,156  30,181  1,975 
Depreciation, Depletion and Amortization 14,765  14,505  260  44,592  42,811  1,781 
167,671  112,082  55,589  673,901  469,415  204,486 
Operating Income 12,277  14,926  (2,649) 112,008  117,474  (5,466)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit (Costs) (2,678) (5,747) 3,069  6,018  (24,674) 30,692 
Interest and Other Income 349  960  (611) 1,162  2,142  (980)
Interest Expense (6,087) (5,510) (577) (17,115) (16,457) (658)
Income Before Income Taxes 3,861  4,629  (768) 102,073  78,485  23,588 
Income Tax Expense (Benefit) (761) (212) (549) 22,273  18,563  3,710 
Net Income $ 4,622  $ 4,841  $ (219) $ 79,800  $ 59,922  $ 19,878 
Net Income Per Share (Diluted) $ 0.05  $ 0.05  $ —  $ 0.87  $ 0.65  $ 0.22 




























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,
ALL OTHER 2022 2021 Variance 2022 2021 Variance
Revenues from External Customers $ —  $ (1) $ 1  $ —  $ 1,174  $ (1,174)
Intersegment Revenues —  2  (2) 6  22  (16)
Total Operating Revenues —  1  (1) 6  1,196  (1,190)
Operating Expenses:
Purchased Gas —  4  (4) 6  2,297  (2,291)
Operation and Maintenance —  17  (17) 5  701  (696)
Property, Franchise and Other Taxes —  —  —  —  47  (47)
Depreciation, Depletion and Amortization —  —  —  —  394  (394)
—  21  (21) 11  3,439  (3,428)
Gain on Sale of Assets —  —  —  —  51,066  (51,066)
Operating Income (Loss) —  (20) 20  (5) 48,823  (48,828)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs —  —  —  —  (7) 7 
Interest and Other Income —  3  (3) 2  229  (227)
Income (Loss) before Income Taxes —  (17) 17  (3) 49,045  (49,048)
Income Tax Expense (Benefit) —  (1,056) 1,056  4  11,428  (11,424)
Net Income (Loss) $ —  $ 1,039  $ (1,039) $ (7) $ 37,617  $ (37,624)
Net Income (Loss) Per Share (Diluted) $ —  $ 0.01  $ (0.01) $ —  $ 0.41  $ (0.41)
Three Months Ended Nine Months Ended
June 30, June 30,
CORPORATE 2022 2021 Variance 2022 2021 Variance
Revenues from External Customers $ —  $ 83  $ (83) $ 166  $ 272  $ (106)
Intersegment Revenues 1,082  1,027  55  3,247  2,718  529 
Total Operating Revenues 1,082  1,110  (28) 3,413  2,990  423 
Operating Expenses:
Operation and Maintenance 3,195  5,224  (2,029) 10,039  11,566  (1,527)
Property, Franchise and Other Taxes 124  124  —  373  370  3 
Depreciation, Depletion and Amortization 45  39  6  139  133  6 
3,364  5,387  (2,023) 10,551  12,069  (1,518)
Operating Loss (2,282) (4,277) 1,995  (7,138) (9,079) 1,941 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs (1,017) (923) (94) (3,052) (2,769) (283)
Interest and Other Income 31,019  33,433  (2,414) 92,937  107,728  (14,791)
Interest Expense on Long-Term Debt (30,091) (30,220) 129  (90,300) (95,212) 4,912 
Other Interest Expense (3,346) (236) (3,110) (4,948) (2,412) (2,536)
Loss before Income Taxes (5,717) (2,223) (3,494) (12,501) (1,744) (10,757)
Income Tax Benefit (1,499) (1,428) (71) (3,477) (1,940) (1,537)
Net Income (Loss) $ (4,218) $ (795) $ (3,423) $ (9,024) $ 196  $ (9,220)
Net Income (Loss) Per Share (Diluted) $ (0.05) $ (0.01) $ (0.04) $ (0.10) $ 0.01  $ (0.11)
Three Months Ended Nine Months Ended
June 30, June 30,
INTERSEGMENT ELIMINATIONS 2022 2021 Variance 2022 2021 Variance
Intersegment Revenues $ (82,523) $ (75,976) $ (6,547) $ (236,910) $ (229,979) $ (6,931)
Operating Expenses:
Purchased Gas (27,500) (26,104) (1,396) (80,404) (80,509) 105 
Operation and Maintenance (55,023) (49,872) (5,151) (156,506) (149,470) (7,036)
(82,523) (75,976) (6,547) (236,910) (229,979) (6,931)
Operating Income —  —  —  —  —  — 
Other Income (Expense):
Interest and Other Deductions (35,117) (30,914) (4,203) (98,376) (100,628) 2,252 
Interest Expense 35,117  30,914  4,203  98,376  100,628  (2,252)
Net Income $ —  $ —  $ —  $ —  $ —  $ — 
Net Income Per Share (Diluted) $ —  $ —  $ —  $ —  $ —  $ — 



Page 20.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
Three Months Ended Nine Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
Increase Increase
2022 2021 (Decrease) 2022 2021 (Decrease)
Capital Expenditures:
Exploration and Production $ 131,776 
'(1)
 $ 94,152 
'(3)
 $ 37,624  $ 405,736 
(1)(2)
 $ 263,763 
(3)(4)
 $ 141,973 
Pipeline and Storage 19,778 
'(1)
 63,863 
'(3)
 (44,085) 58,243 
(1)(2)
 155,556 
(3)(4)
 (97,313)
Gathering 8,614 
'(1)
 6,209 
'(3)
 2,405  28,588 
(1)(2)
 25,628 
(3)(4)
 2,960 
Utility 27,664 
'(1)
 24,866 
'(3)
 2,798  70,972 
(1)(2)
 66,691 
(3)(4)
 4,281 
Total Reportable Segments 187,832  189,090  (1,258) 563,539  511,638  51,901 
All Other —  —  —  —  —  — 
Corporate 166  129  37  663  218  445 
Eliminations —  (1,898) 1,898  —  (2,118) 2,118 
Total Capital Expenditures $ 187,998  $ 187,321  $ 677  $ 564,202  $ 509,738  $ 54,464 


(1)Capital expenditures for the quarter and nine months ended June 30, 2022, include accounts payable and accrued liabilities related to capital expenditures of $62.0 million, $5.2 million, $2.5 million, and $4.7 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 June 30, 2022, since they represent non-cash investing activities at that date.

(2)Capital expenditures for the nine months ended June 30, 2022, exclude capital expenditures of $47.9 million, $39.4 million, $4.8 million and $10.6 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, 2021 and paid during the nine months ended June 30, 2022. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2021, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2022.

(3)Capital expenditures for the quarter and nine months ended June 30, 2021, include accounts payable and accrued liabilities related to capital expenditures of $49.7 million, $25.8 million, $0.9 million, and $5.1 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 June 30, 2021, since they represent non-cash investing activities at that date.

(4)Capital expenditures for the nine months ended June 30, 2021, exclude capital expenditures of $45.8 million, $17.3 million, $13.5 million and $10.7 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, 2020 and paid during the nine months ended June 30, 2021. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2020, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2021.

DEGREE DAYS
Percent Colder
(Warmer) Than:
Three Months Ended June 30, Normal 2022 2021
  Normal (1)
Last Year (1)
Buffalo, NY 912 797 794 (12.6) 0.4 
Erie, PA 871 741 741 (14.9) — 
Nine Months Ended June 30,
Buffalo, NY 6,455 5,662 5,693 (12.3) (0.5)
Erie, PA 6,023 5,274 5,188 (12.4) 1.7 
(1)Percents compare actual 2022 degree days to normal degree days and actual 2022 degree days to actual 2021 degree days.



Page 21.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Three Months Ended Nine Months Ended
June 30, June 30,
Increase Increase
2022 2021 (Decrease) 2022 2021 (Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia 88,888  79,314  9,574  253,842  236,429  17,413 
West Coast 405  431  (26) 1,210  1,300  (90)
Total Production 89,293  79,745  9,548  255,052  237,729  17,323 
Average Prices (Per Mcf)
Appalachia $ 5.50  $ 2.29  $ 3.21  $ 4.64  $ 2.25  $ 2.39 
West Coast 10.29  5.36  4.93  10.04  5.83  4.21 
Weighted Average 5.52  2.31  3.21  4.67  2.27  2.40 
Weighted Average after Hedging 2.87  2.20  0.67  2.67  2.21  0.46 
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia 7  1  6  8  2  6 
West Coast 519  557  (38) 1,589  1,681  (92)
Total Production 526  558  (32) 1,597  1,683  (86)
Average Prices (Per Barrel)
Appalachia $ 108.47  $ 42.09  $ 66.38  $ 104.83  $ 43.13  $ 61.70 
West Coast 110.79  67.55  43.24  94.06  56.92  37.14 
Weighted Average 110.76  67.52  43.24  94.11  56.90  37.21 
Weighted Average after Hedging (1)
 77.65  59.22  18.43  70.71  55.40  15.31 
Total Production (MMcfe) 92,449  83,093  9,356  264,634  247,827  16,807 
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (2)
 $ 0.19  $ 0.19  $ —  $ 0.20  $ 0.21  $ (0.01)
Lease Operating and Transportation Expense per Mcfe (2)(3)
 $ 0.86  $ 0.80  $ 0.06  $ 0.84  $ 0.80  $ 0.04 
Depreciation, Depletion & Amortization per Mcfe (2)
 $ 0.60  $ 0.55  $ 0.05  $ 0.59  $ 0.55  $ 0.04 
(1)Weighted average oil price after hedging for the three and nine months ended June 30, 2022 excludes a loss on discontinuance of crude oil cash flow hedges of $44,632.

(2)Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. General and Administrative Expense per Mcfe for the three and nine months ended June 30, 2022 excludes transaction and severance costs related to the California asset sale.
(3)Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the three months ended June 30, 2022 and June 30, 2021, respectively. Amounts include transportation expense of $0.56 and $0.57 per Mcfe for the nine months ended June 30, 2022 and June 30, 2021, respectively.







Page 22.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Remaining Three Months of Fiscal 2022 Volume Average Hedge Price
Gas Swaps
NYMEX 53,580,000  MMBTU $ 2.76 / MMBTU
Fixed Price Physical Sales 18,940,197  MMBTU $ 2.62 / MMBTU
Total 72,520,197  MMBTU $ 2.72 / MMBTU
Hedging Summary for Fiscal 2023 Volume Average Hedge Price
Gas Swaps
NYMEX 116,200,000  MMBTU $ 2.79 / MMBTU
No Cost Collars 70,400,000  MMBTU $ 3.11 / MMBTU (Floor) / $3.64 / MMBTU (Ceiling)
Fixed Price Physical Sales 73,107,694  MMBTU $ 2.44 / MMBTU
Total 259,707,694  MMBTU
Hedging Summary for Fiscal 2024 Volume Average Hedge Price
Gas Swaps
NYMEX 61,080,000  MMBTU $ 2.72 / MMBTU
No Cost Collars 59,200,000  MMBTU $ 3.20 / MMBTU (Floor) / $3.78 / MMBTU (Ceiling)
Fixed Price Physical Sales 60,223,801  MMBTU $ 2.22 / MMBTU
Total 180,503,801  MMBTU
Hedging Summary for Fiscal 2025 Volume Average Hedge Price
Gas Swaps
NYMEX 23,660,000  MMBTU $ 2.74 / MMBTU
No Cost Collars 43,960,000  MMBTU $ 3.49 / MMBTU (Floor) / $4.65 / MMBTU (Ceiling)
Fixed Price Physical Sales 57,180,046  MMBTU $ 2.21 / MMBTU
Total 124,800,046  MMBTU
Hedging Summary for Fiscal 2026 Volume Average Hedge Price
Gas Swaps
NYMEX 1,720,000  MMBTU $ 2.75 / MMBTU
No Cost Collars 42,720,000  MMBTU $ 3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales 60,185,049  MMBTU $ 2.30 / MMBTU
Total 104,625,049  MMBTU
Hedging Summary for Fiscal 2027 Volume Average Hedge Price
No Cost Collars 3,560,000  MMBTU $ 3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales 43,434,257  MMBTU $ 2.35 / MMBTU
Total 46,994,257  MMBTU
Hedging Summary for Fiscal 2028 Volume Average Hedge Price
Fixed Price Physical Sales 11,850,451  MMBTU $ 2.48 / MMBTU
Hedging Summary for Fiscal 2029 Volume Average Hedge Price
Fixed Price Physical Sales 766,673  MMBTU $ 2.54 / MMBTU


Page 23.

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
2022 2021 (Decrease) 2022 2021 (Decrease)
Firm Transportation - Affiliated 19,558  19,202  356  94,213  92,290  1,923 
Firm Transportation - Non-Affiliated 156,310  155,022  1,288  507,278  494,458  12,820 
Interruptible Transportation 206  181  25  1,726  1,205  521 
176,074  174,405  1,669  603,217  587,953  15,264 
Gathering Volume - (MMcf)
Three Months Ended Nine Months Ended
June 30, June 30,
Increase Increase
2022 2021 (Decrease) 2022 2021 (Decrease)
Gathered Volume 109,797  91,817  17,980  314,625  275,283  39,342 
Utility Throughput - (MMcf)
Three Months Ended Nine Months Ended
June 30, June 30,
Increase Increase
2022 2021 (Decrease) 2022 2021 (Decrease)
Retail Sales:
Residential Sales 10,344  9,776  568  59,865  57,241  2,624 
Commercial Sales 1,511  1,369  142  8,977  8,206  771 
Industrial Sales 74  65  9  466  441  25 
11,929  11,210  719  69,308  65,888  3,420 
Transportation 12,936  13,298  (362) 56,274  55,815  459 
24,865  24,508  357  125,582  121,703  3,879 























Page 24.

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 Adjusted Operating Results, Adjusted EBITDA and free cash flow, 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 or liquidity 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 Adjusted Operating Results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the three and nine months ended June 30, 2022 and 2021:
Three Months Ended Nine Months Ended
June 30, June 30,
(in thousands except per share amounts) 2022 2021 2022 2021
Reported GAAP Earnings $ 108,158  $ 86,475  $ 407,879  $ 276,685 
Items impacting comparability:
Items related to West Coast asset sale:
Gain on sale of West Coast assets (E&P) (12,736) —  (12,736) — 
Tax impact of gain on sale of West Coast assets 3,225  —  3,225  — 
Loss from discontinuance of crude oil cash flow hedges (E&P) 44,632  —  44,632  — 
Tax impact of loss from discontinuance of crude oil cash flow hedges (11,303) —  (11,303) — 
Transaction and severance costs (E&P) 9,693  —  9,693  — 
Tax impact of transaction and severance costs (2,455) —  (2,455) — 
Total items impacting comparability related to West Coast asset sale 31,056  —  31,056  — 
Reduction of other post-retirement regulatory liability (Utility) —  —  (18,533) — 
Tax impact of reduction of other post-retirement regulatory liability —  —  3,892  — 
Unrealized (gain) loss on other investments (Corporate/All Other) 3,434  (1,025) 10,093  (575)
Tax impact of unrealized (gain) loss on other investments (721) 215  (2,120) 120 
Impairment of oil and gas properties (E&P) —  —  —  76,152 
Tax impact of impairment of oil and gas properties —  —  —  (20,980)
Gain on sale of timber properties (Corporate/All Other) —  —  —  (51,066)
Tax impact of gain on sale of timber properties —  —  —  14,069 
Premium paid on early redemption of debt —  —  —  15,715 
Tax impact of premium paid on early redemption of debt —  —  —  (4,321)
Adjusted Operating Results $ 141,927  $ 85,665  $ 432,267  $ 305,799 
Reported GAAP Earnings Per Share $ 1.17  $ 0.94  $ 4.43  $ 3.02 
Items impacting comparability:
Items related to West Coast asset sale:
Gain on sale of West Coast assets, net of tax (E&P) (0.10) —  (0.10) — 
Loss from discontinuance of crude oil cash flow hedges, net of tax (E&P) 0.36  —  0.36  — 
Transaction and severance costs, net of tax (E&P) 0.08  —  0.08  — 
Total items impacting comparability related to West Coast asset sale 0.34  —  0.34  — 
Reduction of other post-retirement regulatory liability, net of tax (Utility) —  —  (0.16) — 
Unrealized (gain) loss on other investments, net of tax (Corporate/All Other) 0.03  (0.01) 0.08  — 
Impairment of oil and gas properties, net of tax (E&P) —  —  —  0.60 
Gain on sale of timber properties, net of tax (Corporate/All Other) —  —  —  (0.40)
Premium paid on early redemption of debt, net of tax —  —  —  0.12 
Adjusted Operating Results Per Share $ 1.54  $ 0.93  $ 4.69  $ 3.34 







Page 25.



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES (Continued)


Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and nine months ended June 30, 2022 and 2021:


Three Months Ended Nine Months Ended
June 30, June 30,
(in thousands) 2022 2021 2022 2021
Reported GAAP Earnings $ 108,158  $ 86,475  $ 407,879  $ 276,685 
Depreciation, Depletion and Amortization 95,857  84,170  275,681  251,632 
Other (Income) Deductions 5,649  2,028  (3,291) 15,078 
Interest Expense 33,973  31,232  96,861  115,926 
Income Taxes 32,917  30,335  135,272  99,962 
Impairment of Oil and Gas Producing Properties —  —  —  76,152 
Gain on Sale of Assets (12,736) —  (12,736) (51,066)
Loss from discontinuance of crude oil cash flow hedges (E&P) 44,632  —  44,632  — 
Transaction and severance costs related to West Coast asset sale (E&P) 9,693  —  9,693  — 
Adjusted EBITDA $ 318,143  $ 234,240  $ 953,991  $ 784,369 
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA $ 62,565  $ 53,086  $ 181,084  $ 169,791 
Gathering Adjusted EBITDA 46,151  39,929  133,238  121,147 
Total Midstream Businesses Adjusted EBITDA 108,716  93,015  314,322  290,938 
Exploration and Production Adjusted EBITDA 184,622  116,052  490,073  343,941 
Utility Adjusted EBITDA 27,042  29,431  156,600  160,285 
Corporate and All Other Adjusted EBITDA (2,237) (4,258) (7,004) (10,795)
Total Adjusted EBITDA $ 318,143  $ 234,240  $ 953,991  $ 784,369 



























Page 26.


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
Three Months Ended Nine Months Ended
June 30, June 30,
(in thousands) 2022 2021 2022 2021
Exploration and Production Segment
Reported GAAP Earnings $ 56,497  $ 39,015  $ 189,987  $ 46,213 
Depreciation, Depletion and Amortization 55,136  45,886  155,190  137,356 
Other (Income) Deductions (296) 271  (55) 684 
Interest Expense 14,589  12,008  38,927  57,720 
Income Taxes 17,107  18,872  64,435  25,816 
Impairment of Oil and Gas Producing Properties —  —  —  76,152 
Gain on Sale of West Coast assets (12,736) —  (12,736) — 
Loss from discontinuance of crude oil cash flow hedges 44,632  —  44,632  — 
Transaction and severance costs related to West Coast asset sale 9,693  —  9,693  — 
Adjusted EBITDA $ 184,622  $ 116,052  $ 490,073  $ 343,941 
Pipeline and Storage Segment
Reported GAAP Earnings $ 26,599  $ 21,948  $ 77,236  $ 71,060 
Depreciation, Depletion and Amortization 17,322  15,609  50,417  46,806 
Other (Income) Deductions (1,502) (1,489) (4,632) (3,535)
Interest Expense 10,813  10,070  31,564  31,353 
Income Taxes 9,333  6,948  26,499  24,107 
Adjusted EBITDA $ 62,565  $ 53,086  $ 181,084  $ 169,791 
Gathering Segment
Reported GAAP Earnings $ 24,658  $ 20,427  $ 69,887  $ 61,677 
Depreciation, Depletion and Amortization 8,589  8,131  25,343  24,132 
Other (Income) Deductions 3  58  87  (50)
Interest Expense 4,164  4,102  12,383  13,400 
Income Taxes 8,737  7,211  25,538  21,988 
Adjusted EBITDA $ 46,151  $ 39,929  $ 133,238  $ 121,147 
Utility Segment
Reported GAAP Earnings $ 4,622  $ 4,841  $ 79,800  $ 59,922 
Depreciation, Depletion and Amortization 14,765  14,505  44,592  42,811 
Other (Income) Deductions 2,329  4,787  (7,180) 22,532 
Interest Expense 6,087  5,510  17,115  16,457 
Income Taxes (761) (212) 22,273  18,563 
Adjusted EBITDA $ 27,042  $ 29,431  $ 156,600  $ 160,285 
Corporate and All Other
Reported GAAP Earnings $ (4,218) $ 244  $ (9,031) $ 37,813 
Depreciation, Depletion and Amortization 45  39  139  527 
Other (Income) Deductions 5,115  (1,599) 8,489  (4,553)
Interest Expense (1,680) (458) (3,128) (3,004)
Income Taxes (1,499) (2,484) (3,473) 9,488 
Gain on Sale of Timber Properties —  —  —  (51.066)
Adjusted EBITDA $ (2,237) $ (4,258) $ (7,004) $ (10,795)

Management defines free cash flow as funds from operations (net cash provided by operating activities less changes in working capital) less capital expenditures. The Company is unable to provide a reconciliation of projected free cash flow as described in this release to its comparable financial measure calculated in accordance with GAAP without unreasonable efforts. This is due to our inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.