WILLIAMSVILLE, N.Y., Oct. 31, 2019 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2019.

FISCAL 2019 FOURTH QUARTER SUMMARY

• GAAP earnings of $47.3 million, or $0.54 per share, compared to $38.0 million, or $0.44 per share, in the prior year
• Adjusted operating results of $47.0 million, or $0.54 per share, compared to $42.5 million, or $0.49 per share, in the prior year (see non-GAAP reconciliation on page 2)
• Adjusted EBITDA of $157.3 million compared to $148.2 million in the prior year (non-GAAP reconciliation on page 24)
• E&P segment net production of 59.1 Bcfe, an increase of 25% from the prior year and 8% from the third quarter
• Average natural gas prices, after the impact of hedging, of $2.26 per Mcf, down $0.19 per Mcf from the prior year
• Average oil prices, after the impact of hedging, of $61.00 per Bbl, up $3.29 per Bbl from the prior year
• Gathering segment revenues increased $6.7 million, or 24%, on higher throughput from Seneca

FISCAL 2019 HIGHLIGHTS

• GAAP earnings of $304.3 million, or $3.51 per share, compared to $391.5 million, or $4.53 per share, in the prior year
• Adjusted operating results of $299.3 million, or $3.45 per share, compared to $289.4 million, or $3.35 per share, in the prior year (see non-GAAP reconciliation on page 2)
• Adjusted EBITDA of $785.4 million, an increase of $23.9 million over fiscal 2018 (non-GAAP reconciliation on page 24)
• E&P segment net production of 211.8 Bcfe, an increase of 19% over fiscal 2018 and the highest output in Company history
• Proved reserves at September 30, 2019, of 3.1 Tcfe, an increase of 23% from September 30, 2018
• Gathering segment revenues increased $19.2 million, or 18%, on higher throughput from Seneca
• Utility segment net income of $60.9 million, an increase of $9.7 million, or 19%, over fiscal 2018
• Increased shareholder dividend for the 49^th consecutive year to an annual rate of $1.74 per share

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel capped off our 2019 fiscal year with an excellent fourth quarter, including operating results that were up approximately 10% from the prior year.  Despite a challenging commodity price environment, the Company also grew its earnings year over year, evidencing the value of our integrated business model.  The high degree of integration between our Exploration and Production and Gathering operations provided meaningful consolidated benefits, as Seneca’s record annual production drove a significant increase in our Gathering segment revenues this year, offsetting the impact of lower natural gas realizations.  Our regulated Downstream and Midstream operations continue to provide diversification and predictable cash flows.  The Utility segment delivered strong results in 2019, driven largely by modest customer growth and our ongoing investments in the modernization of our distribution network. These investments, which exceeded $74 million this fiscal year, further enhanced the safety and integrity of our pipeline systems, and contributed to earnings and rate base growth.”

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

		Three Months Ended								Fiscal Year Ended
		September 30,								September 30,
(in thousands except per share amounts)		2019				2018				2019				2018
Reported GAAP Earnings		$	47,281			$	37,994			$	304,290			$	391,521
Items impacting comparability
Remeasurement of deferred income taxes under 2017 Tax Reform		—				3,516				(5,000		)		(103,484		)
Mark-to-market adjustments due to hedge ineffectiveness (E&P)		(1,313		)		346				(2,096		)		782
Tax impact of mark-to-market adjustments due to hedge ineffectiveness		276				(85		)		440				(192		)
Unrealized (gain) loss on other investments (Corporate / All Other)		949				—				2,045				—
Tax impact of unrealized (gain) loss on other investments		(199		)		—				(429		)		—
Premium paid on early redemption of debt (E&P)		—				962								962
Tax impact of premium paid on early redemption of debt		—				(235		)						(235		)
Adjusted Operating Results		$	46,994			$	42,498			$	299,250			$	289,354
Reported GAAP Earnings per share		$	0.54			$	0.44			$	3.51			$	4.53
Items impacting comparability
Remeasurement of deferred income taxes under 2017 Tax Reform		—				0.04				(0.06		)		(1.20		)
Mark-to-market adjustments due to hedge ineffectiveness, net of tax (E&P)		(0.01		)		—				(0.02		)		0.01
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		0.01				—				0.02				—
Premium paid on early redemption of debt, net of tax (E&P)		—				0.01				—				0.01
Adjusted Operating Results per share		$	0.54			$	0.49			$	3.45			$	3.35

FISCAL 2020 GUIDANCE UPDATE

National Fuel is revising its fiscal 2020 earnings guidance to reflect updated forecast assumptions and projections, including the expected impact of the decline in near-term natural gas prices that has occurred since the Company’s preliminary guidance was announced in August 2019.  The Company is now projecting that earnings will be within the range of $3.00 to $3.30 per share, or $3.15 per share at the midpoint of the range. The decrease from the preliminary guidance is primarily due to lower expected price realizations on Seneca’s production, higher expected depreciation, depletion and amortization (“DD&A”) rates at Seneca, and higher expected pension and other post-retirement benefit expenses. The increase in Seneca’s projected DD&A rate is largely due to higher expected future plugging and abandonment costs in California. The increase in pension and other post-retirement benefit costs is being driven by changes in actuarial assumptions, primarily a lower discount rate resulting from the recent decline in interest rates.

The Company is now assuming that NYMEX natural gas prices will average $2.40 per MMBtu in fiscal 2020, a decrease of $0.15 per MMBtu from the $2.55 per MMBtu assumed in the preliminary guidance. For guidance purposes, the Company’s updated projections reflect the current NYMEX forward markets for natural gas and oil and consider the impact of local sales point differentials and new physical firm sales, transportation, or financial hedge contracts. During the fourth quarter, Seneca executed approximately 42 billion cubic feet (“Bcf”) of new NYMEX swap contracts. The Company currently has financial hedges and fixed price physical firm sales contracts in place on approximately 60% of Seneca’s expected fiscal 2020 production that, on average, lock-in a price realization of $2.30 per thousand cubic feet (“Mcf”).

The Exploration and Production segment’s fiscal 2020 net production forecast remains unchanged in the range of 235 to 245 billion cubic feet equivalent (“Bcfe”).  The Company’s fiscal 2020 consolidated and individual segment capital expenditures guidance also remains unchanged from the preliminary guidance. The Company announced in August that it plans to reduce Seneca’s development activity in Appalachia in response to the decline in near-term natural gas prices.  As planned, during the second quarter of fiscal 2020, Seneca expects to drop one of the three horizontal drilling rigs it is currently operating in Appalachia.  Because the Company owns a majority of its natural gas interests in fee, Seneca has the flexibility to further reduce its capital investments should market conditions continue to weaken in order to preserve the economics of its development program.

Mr. Bauer added: “As we look to the future, despite the headwind of natural gas prices in fiscal 2020, we are well-positioned to responsibly grow the Company in a manner that maintains the strength of our balance sheet and drives value for our shareholders.  With line of sight on new firm transportation capacity to premium markets, Seneca will maintain its focus on prudently developing its Utica Shale reserves in our Western Development Area, where we are able to utilize our existing infrastructure, including gathering facilities, to enhance our consolidated upstream and midstream returns.  Our Gathering business will continue to grow in lockstep with Seneca’s production, and is expected to see near-term annual revenue growth of approximately 10%.  Our Pipeline and Storage business is targeting the completion of multiple expansion projects by the close of calendar 2021, which we expect to collectively grow annual revenues by approximately $65 million.  And, our Utility business will continue to make investments to modernize its facilities, and to enhance the long-term reliability of our distribution systems, which we expect to modestly grow rate base and margin.  All told, National Fuel is poised for continuing long-term success.”

Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2020 are outlined in the table on page 7.

DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

The following discussion of earnings of each operating segment for the quarter ended September 30, 2019, is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the fiscal year ended September 30, 2019 are summarized on pages 10 and 11).  It may be helpful to refer to those tables while reviewing this discussion.  As of the quarter ended September 30, 2019, the Company is no longer reporting the Energy Marketing operations as a reportable segment.  The Energy Marketing operations have been included in the All Other category in the disclosures and tables that follow below.  Prior year segment information has been restated to reflect this change in presentation.

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.

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 and California.

	Three Months Ended
	September 30,
(in thousands)	2019				2018				Variance
GAAP Earnings	$	25,208			$	19,580			$	5,628
Remeasurement of deferred taxes under 2017 Tax Reform	—				2,804				(2,804		)
Mark-to-market adjustments due to hedge ineffectiveness, net of tax	(1,037		)		261				(1,298		)
Premium paid on early redemption of debt, net of tax	—				727				(727		)
Adjusted Operating Results	$	24,171			$	23,372			$	799
Adjusted EBITDA	$	89,509			$	81,194			$	8,315

Seneca’s fourth quarter GAAP earnings increased $5.6 million versus the prior year, which includes the net impact of non-cash mark-to-market adjustments recorded during the current and prior year relating to hedge ineffectiveness and certain items that impacted earnings in the prior year that did not recur in the current year (see table above).  Excluding these items, Seneca’s fourth quarter earnings increased $0.8 million as the positive impacts of higher production and better realized crude oil prices on operating revenues, along with a lower effective income tax rate, were mostly offset by the negative impacts of lower realized natural gas prices on operating revenues and higher operating expenses.

Seneca produced 59.1 Bcfe during the fourth quarter, an increase of 11.8 Bcfe, or 25%, from the prior year. Natural gas production increased 11.7 billion cubic feet (“Bcf”), or 27%, due primarily to production from new Marcellus and Utica wells completed and connected to sales in Appalachia. Net production in Seneca’s Eastern Development Area increased 7.7 Bcf to 30.7 Bcf due largely to increased Utica development in the EDA-Tioga area and Marcellus development in the EDA-Lycoming area. Net gas production increased 4.0 Bcf to 24.1 Bcf in the WDA-Clermont area, where Seneca continues to experience stronger production and shallower declines from its Utica development program. Seneca’s oil production for the fourth quarter increased 14 thousand barrels ("Mbbl") from the prior year due to new wells coming online in the Pioneer development area in California.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.26 per Mcf, a decrease of $0.19 per Mcf from the prior year. This decline was largely due to lower NYMEX prices and lower spot pricing at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $61.00 per barrel ("Bbl"), an increase of $3.29 per Bbl over the prior year.  The improvement in oil price realizations was due primarily to stronger price differentials at local sales points in California relative to West Texas Intermediate (WTI) prices.

The $22.3 million increase in Seneca’s total operating expenses was largely due to the higher production during the quarter.  On a unit of production basis, operating expenses excluding DD&A expense declined $0.07 per thousand cubic feet equivalent (“Mcfe”), or 5%, to $1.25 per Mcfe from the $1.32 per Mcfe realized in the prior year. Lease operating and transportation (“LOE”) expense, which increased $8.8 million, includes the fees paid to the Company’s Gathering segment for gathering and compression services used to connect Seneca’s Marcellus and Utica production to sales points along interstate pipelines. The $10.6 million increase in DD&A expense was also due to a higher DD&A rate, which was driven by an increase in capitalized costs in Seneca’s full cost pool. The decline in Seneca’s effective tax rate was largely driven by the positive impact of the 2017 Tax Reform Act, a higher Enhanced Oil Recovery credit, and lower state taxes in the current year.

Proved Reserves Year-End Update

Seneca’s total proved natural gas and crude oil reserves at September 30, 2019 were 3,099 Bcfe, an increase of 575 Bcfe, or 23%, from the proved reserves reported at September 30, 2018.  Seneca’s proved developed reserves at the end of fiscal 2019 were 2,081 Bcfe, representing 67% of total proved reserves. The proved reserves base is approximately 95% natural gas and 5% oil.  In fiscal 2019, Seneca recorded 691 Bcfe of proved reserve extensions and discoveries, due primarily to Utica and Marcellus locations in Appalachia, and 96 Bcfe of net positive revisions due largely to improvements in well performance and Seneca’s shift towards drilling wells with longer laterals. As a result, Seneca replaced 372% of its fiscal 2019 production.  Seneca’s three-year average finding and development cost at the end of fiscal 2019 was $0.56 per Mcfe, down $0.18 per Mcfe from the three-year average of $0.74 per Mcfe at the end of fiscal 2018.

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
	September 30,
(in thousands)	2019				2018				Variance
GAAP Earnings	$	15,368			$	15,337			$	31
Adjusted EBITDA	$	35,747			$	37,699			$	(1,952	)

The Pipeline and Storage segment’s fourth quarter GAAP earnings were largely unchanged versus the prior year, as lower operating revenues were offset by lower operation and maintenance (“O&M”) and interest expenses.  The $4.5 million decrease in operating revenues was due largely to the expiration of a significant firm transportation contract on the Empire system in December 2018.  The impact of the contract expiration was partially offset by an increase in Empire’s transportation rates following the settlement of Empire’s rate case that became effective in January 2019.  O&M expense decreased $2.7 million due primarily to lower compressor and facility maintenance costs.  Interest expense decreased $0.8 million due primarily to lower borrowing rates.

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 currently delivers Seneca’s gross Appalachian production to the interstate pipeline system.

	Three Months Ended
	September 30,
(in thousands)	2019				2018				Variance
GAAP Earnings	$	16,902			$	14,783			$	2,119
Remeasurement of deferred taxes under 2017 Tax Reform	—				12				(12		)
Adjusted Operating Results	$	16,902			$	14,795			$	2,107
Adjusted EBITDA	$	29,895			$	23,814			$	6,081

The Gathering segment’s fourth quarter GAAP earnings increased $2.1 million over the prior year.  The increase was driven primarily by higher operating revenues, which were partially offset by modest increases in O&M expense and DD&A expense and the impact of a higher effective tax rate.  Operating revenues increased $6.7 million, or 24%, due primarily to a 12.7 Bcf increase in gathered volume from Seneca’s Appalachian natural gas production. The $0.6 million increase in O&M expense was due to an increase in compressor station operating and preventative maintenance activity as a result of higher throughput during the quarter. The $0.6 million increase in DD&A expense was due primarily to a $46 million increase in average plant assets in-service versus the prior year.

The increase in the Gathering segment’s effective tax rate was largely due to a deferred state tax adjustment that lowered prior year income tax expense. This nonrecurring item was partially offset by the impact of the 2017 Tax Reform Act, which lowered the Company’s statutory federal income tax rate from a blended 24.5% in fiscal 2018 to 21% in fiscal 2019.

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
	September 30,
(in thousands)	2019				2018				Variance
GAAP Earnings	$	(7,728	)		$	(7,067	)		$	(661	)
Adjusted EBITDA	$	6,714			$	10,514			$	(3,800	)

The $0.7 million increase in the Utility segment’s fourth quarter net loss was due largely to lower margin (operating revenues less purchased gas sold), partially offset by lower interest expense.  A number of items contributed to the decrease in customer margin, including warmer weather and the net impact of revenue adjustments related to regulatory rate mechanisms.  These items were offset partially by an increase in revenues relating to a system modernization tracking mechanism that became effective in December 2018.  Interest expense decreased $1.0 million due primarily to lower borrowing rates following the Company’s early refinancing of an 8.75% coupon 10-year note at the end of the prior year.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other, which now include the Company’s energy marketing business, generated a combined net loss of $2.5 million in the current year fourth quarter, which was $2.1 million lower than the loss of $4.6 million in the prior-year fourth quarter.  The reduction in the net loss was driven primarily by lower interest expense and lower income tax expense. The lower income tax expense was due, in part, to the impact of the 2017 Tax Reform Act, which resulted in a remeasurement of deferred taxes that increased income tax expense in the prior year.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 1, 2019, 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) 833-287-0795, using conference ID number “4581569”.  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 “4581569”.  Both the webcast and a telephonic replay will be available until the close of business on Friday, November 8, 2019.

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:	Kenneth E. Webster	716-857-7067
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; 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 the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; 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 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; 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; the impact of  information technology, cybersecurity or data security breaches; 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.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on pages 2 and 3, the Company is revising its earnings guidance for fiscal 2020.  Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

	Preliminary FY 2020 Guidance		Updated FY 2020 Guidance
Consolidated Earnings per Share	$3.25 to $3.55		$3.00 to $3.30
Consolidated Effective Tax Rate	~ 25%		~ 25%
Capital Expenditures (Millions)
Exploration and Production	$415 - $455		$415 - $455
Pipeline and Storage	$180 - $215		$180 - $215
Gathering	$40 - $50		$40 - $50
Utility	$90 - $100		$90 - $100
Consolidated Capital Expenditures	$725 - $820		$725 - $820
Exploration & Production Segment Guidance
Commodity Price Assumptions
NYMEX natural gas price	$2.55 /MMBtu		$2.40 /MMBtu
Appalachian basin spot price (winter | summer)	$2.20 /MMBtu | $2.00 /MMBtu		$2.20 /MMBtu | $2.00 /MMBtu
NYMEX (WTI) crude oil price	$55.00 /Bbl		$55.00 /Bbl
California oil price premium (% of WTI)	108%		106%
Production (Bcfe)
East Division - Appalachia	219 to 229		219 to 229
West Division - California	~ 16		~ 16
Total Production	235 to 245		235 to 245
E&P Operating Costs ($/Mcfe)
LOE	$0.85 - $0.90		$0.85 - $0.89
G&A	$0.25 - $0.30		$0.27 - $0.30
DD&A	$0.70 - $0.75		$0.73 - $0.77
Other Business Segment Guidance (Millions)
Gathering Segment Revenues	$135 - $145		$135 - $145
Pipeline and Storage Segment Revenues	$290 - $295		$290 - $295

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2019
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fourth quarter 2018 GAAP earnings	$	19,580			$	15,337			$	14,783			$	(7,067	)		$	(4,639	)		$	37,994
Items impacting comparability:
Remeasurement of deferred taxes under 2017 Tax Reform	2,804								12								700				3,516
Mark-to-market adjustments due to hedge ineffectiveness	346																				346
Tax impact of mark-to-market adjustments due to hedge ineffectiveness	(85		)																		(85		)
Premium paid on early redemption of debt	962																				962
Tax impact of premium paid on early redemption of debt	(235		)																		(235		)
Fourth quarter 2018 adjusted operating results	23,372				15,337				14,795				(7,067		)		(3,939		)		42,498
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	21,591																				21,591
Higher (lower) crude oil production	593																				593
Higher (lower) realized natural gas prices, after hedging	(7,923		)																		(7,923		)
Higher (lower) realized crude oil prices, after hedging	1,521																				1,521
Midstream Revenues
Higher (lower) operating revenues					(3,404		)		5,051												1,647
Downstream Margins***
Impact of usage and weather													(1,131		)						(1,131		)
System modernization tracker revenues													484								484
Regulatory revenue adjustments													(757		)						(757		)
Operating Expenses
Lower (higher) lease operating and transportation expenses	(6,619		)																		(6,619		)
Lower (higher) operating expenses	(1,862		)		2,043				(464		)		(815		)						(1,098		)
Lower (higher) depreciation / depletion	(7,983		)						(489		)										(8,472		)
Other Income (Expense)
(Higher) lower other deductions					860								1,394								2,254
(Higher) lower interest expense	(672		)		629				(140		)		751				736				1,304
Income Taxes
Impact of tax rate reduction due to 2017 Tax Reform	1,543				675				547				(562		)		(23		)		2,180
Lower (higher) income tax expense / effective tax rate	1,551				(473		)		(2,408		)		895				726				291
All other / rounding	(941		)		(299		)		10				(920		)		781				(1,369		)
Fourth quarter 2019 adjusted operating results	24,171				15,368				16,902				(7,728		)		(1,719		)		46,994
Items impacting comparability:
Mark-to-market adjustments due to hedge ineffectiveness	1,313																				1,313
Tax impact of mark-to-market adjustments due to hedge ineffectiveness	(276		)																		(276		)
Unrealized gain (loss) on other investments																	(949		)		(949		)
Tax impact of unrealized gain (loss) on other investments																	199				199
Fourth quarter 2019 GAAP earnings	$	25,208			$	15,368			$	16,902			$	(7,728	)		$	(2,469	)		$	47,281
* Amounts do not reflect intercompany eliminations
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2019
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fourth quarter 2018 GAAP earnings per share	$	0.23			$	0.18			$	0.17			$	(0.08	)		$	(0.06	)		$	0.44
Items impacting comparability:
Remeasurement of deferred taxes under 2017 Tax Reform	0.03								—								0.01				0.04
Mark-to-market adjustments due to hedge ineffectiveness, net of tax	—																				—
Premium paid on early redemption of debt, net of tax	0.01																				0.01
Fourth quarter 2018 adjusted operating results per share	0.27				0.18				0.17				(0.08		)		(0.05		)		0.49
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	0.25																				0.25
Higher (lower) crude oil production	0.01																				0.01
Higher (lower) realized natural gas prices, after hedging	(0.09		)																		(0.09		)
Higher (lower) realized crude oil prices, after hedging	0.02																				0.02
Midstream Revenues
Higher (lower) operating revenues					(0.04		)		0.06												0.02
Downstream Margins***
Impact of usage and weather													(0.01		)						(0.01		)
System modernization tracker revenues													0.01								0.01
Regulatory revenue adjustments													(0.01		)						(0.01		)
Operating Expenses
Lower (higher) lease operating and transportation expenses	(0.08		)																		(0.08		)
Lower (higher) operating expenses	(0.02		)		0.02				(0.01		)		(0.01		)						(0.02		)
Lower (higher) depreciation / depletion	(0.09		)						(0.01		)										(0.10		)
Other Income (Expense)
(Higher) lower other deductions					0.01								0.02								0.03
(Higher) lower interest expense	(0.01		)		0.01				—				0.01				0.01				0.02
Income Taxes
Impact of tax rate reduction due to 2017 Tax Reform	0.02				0.01				0.01				(0.01		)		—				0.03
Lower (higher) income tax expense / effective tax rate	0.02				(0.01		)		(0.03		)		0.01				0.01				—
All other / rounding	(0.02		)		—				—				(0.02		)		0.01				(0.03		)
Fourth quarter 2019 adjusted operating results per share	0.28				0.18				0.19				(0.09		)		(0.02		)		0.54
Items impacting comparability:
Mark-to-market adjustments due to hedge ineffectiveness, net of tax	0.01																				0.01
Unrealized gain (loss) on other investments, net of tax																	(0.01		)		(0.01		)
Fourth quarter 2019 GAAP earnings per share	$	0.29			$	0.18			$	0.19			$	(0.09	)		$	(0.03	)		$	0.54
* Amounts do not reflect intercompany eliminations
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2019
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fiscal 2018 GAAP earnings	$	180,632			$	97,246			$	83,519			$	51,217			$	(21,093	)		$	391,521
Items impacting comparability:
Remeasurement of deferred taxes under 2017 Tax Reform	(73,706		)		(14,100		)		(34,488		)						18,810				(103,484		)
Mark-to-market adjustments due to hedge ineffectiveness	782																				782
Tax impact of mark-to-market adjustments due to hedge ineffectiveness	(192		)																		(192		)
Premium paid on early redemption of debt	962																				962
Tax impact of premium paid on early redemption of debt	(235		)																		(235		)
Fiscal 2018 adjusted operating results	108,243				83,146				49,031				51,217				(2,283		)		289,354
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	66,573																				66,573
Higher (lower) crude oil production	(9,372		)																		(9,372		)
Higher (lower) realized natural gas prices, after hedging	(12,350		)																		(12,350		)
Higher (lower) realized crude oil prices, after hedging	5,243																				5,243
Midstream Revenues
Higher (lower) operating revenues					(9,092		)		14,479												5,387
Downstream Margins***
Impact of usage and weather													2,554								2,554
System modernization tracker revenues													3,085								3,085
Lower (higher) refund provision on tax rate change													(3,783		)						(3,783		)
Regulatory revenue adjustments													416								416
Higher (lower) energy marketing margins																	(3,841		)		(3,841		)
Operating Expenses
Lower (higher) lease operating and transportation expenses	(18,048		)																		(18,048		)
Lower (higher) operating expenses	(3,497		)		(5,914		)		(2,144		)		(1,710		)						(13,265		)
Lower (higher) property, franchise and other taxes	(2,511		)		(1,055		)														(3,566		)
Lower (higher) depreciation / depletion	(23,035		)		(1,120		)		(2,057		)										(26,212		)
Other Income (Expense)
(Higher) lower other deductions					2,439								3,814								6,253
(Higher) lower interest expense	(1,096		)		1,692				116				2,501				1,925				5,138
Income Taxes
Impact of tax rate reduction due to 2017 Tax Reform	5,099				2,895				2,516				2,251				(315		)		12,446
Lower (higher) income tax expense / effective tax rate	(5,825		)		1,411				(3,801		)		1,089				1,792				(5,334		)
All other / rounding	(263		)		(391		)		(227		)		(563		)		16				(1,428		)
Fiscal 2019 adjusted operating results	109,161				74,011				57,913				60,871				(2,706		)		299,250
Items impacting comparability:
Remeasurement of deferred taxes under 2017 Tax Reform	990								500								3,510				5,000
Mark-to-market adjustments due to hedge ineffectiveness	2,096																				2,096
Tax impact of mark-to-market adjustments due to hedge ineffectiveness	(440		)																		(440		)
Unrealized gain (loss) on other investments																	(2,045		)		(2,045		)
Tax impact of unrealized gain (loss) on other investments																	429				429
Fiscal 2019 GAAP earnings	$	111,807			$	74,011			$	58,413			$	60,871			$	(812	)		$	304,290
* Amounts do not reflect intercompany eliminations
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2019
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fiscal 2018 GAAP earnings per share	$	2.09			$	1.13			$	0.97			$	0.59			$	(0.25	)		$	4.53
Items impacting comparability:
Remeasurement of deferred taxes under 2017 Tax Reform	(0.85		)		(0.16		)		(0.40		)						0.21				(1.20		)
Mark-to-market adjustments due to hedge ineffectiveness, net of tax	0.01																				0.01
Premium paid on early redemption of debt, net of tax	0.01																				0.01
Rounding	(0.01		)		(0.01		)		—				—				0.02				—
Fiscal 2018 adjusted operating results per share	1.25				0.96				0.57				0.59				(0.02		)		3.35
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	0.77																				0.77
Higher (lower) crude oil production	(0.11		)																		(0.11		)
Higher (lower) realized natural gas prices, after hedging	(0.14		)																		(0.14		)
Higher (lower) realized crude oil prices, after hedging	0.06																				0.06
Midstream Revenues
Higher (lower) operating revenues					(0.10		)		0.17												0.07
Downstream Margins***
Impact of usage and weather													0.03								0.03
System modernization tracker revenues													0.04								0.04
Lower (higher) refund provision on tax rate change													(0.04		)						(0.04		)
Regulatory revenue adjustments													—								—
Higher (lower) energy marketing margins																	(0.04		)		(0.04		)
Operating Expenses
Lower (higher) lease operating and transportation expenses	(0.21		)																		(0.21		)
Lower (higher) operating expenses	(0.04		)		(0.07		)		(0.02		)		(0.02		)						(0.15		)
Lower (higher) property, franchise and other taxes	(0.03		)		(0.01		)														(0.04		)
Lower (higher) depreciation / depletion	(0.27		)		(0.01		)		(0.02		)										(0.30		)
Other Income (Expense)
(Higher) lower other deductions					0.03								0.04								0.07
(Higher) lower interest expense	(0.01		)		0.02				—				0.03				0.02				0.06
Income Taxes
Impact of tax rate reduction due to 2017 Tax Reform	0.06				0.03				0.03				0.03				—				0.15
Lower (higher) income tax expense / effective tax rate	(0.07		)		0.02				(0.04		)		0.01				0.02				(0.06		)
All other / rounding	—				(0.02		)		(0.02		)		(0.01		)		(0.01		)		(0.06		)
Fiscal 2019 adjusted operating results per share	1.26				0.85				0.67				0.70				(0.03		)		3.45
Items impacting comparability:
Remeasurement of deferred taxes under 2017 Tax Reform	0.01								0.01								0.04				0.06
Mark-to-market adjustments due to hedge ineffectiveness, net of tax	0.02																				0.02
Unrealized gain (loss) on other investments, net of tax																	(0.02		)		(0.02		)
Rounding									(0.01		)						0.01				—
Fiscal 2019 GAAP earnings per share	$	1.29			$	0.85			$	0.67			$	0.70			$	—			$	3.51
* Amounts do not reflect intercompany eliminations
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
	Three Months Ended								Twelve Months Ended
	September 30,								September 30,
	(Unaudited)								(Unaudited)
SUMMARY OF OPERATIONS	2019				2018				2019				2018
Operating Revenues:
Utility and Energy Marketing Revenues	$	79,925			$	93,240			$	860,985			$	812,474
Exploration and Production and Other Revenues	166,262				143,998				636,528				569,808
Pipeline and Storage and Gathering Revenues	47,153				51,958				195,819				210,386
	293,340				289,196				1,693,332				1,592,668
Operating Expenses:
Purchased Gas	4,728				14,968				386,265				337,822
Operation and Maintenance:
Utility and Energy Marketing	39,390				38,537				171,472				168,885
Exploration and Production and Other	38,847				34,656				147,457				139,546
Pipeline and Storage and Gathering	30,926				33,067				111,783				101,338
Property, Franchise and Other Taxes	20,839				20,148				88,886				84,393
Depreciation, Depletion and Amortization	74,670				63,159				275,660				240,961
	209,400				204,535				1,181,523				1,072,945
Operating Income	83,940				84,661				511,809				519,723
Other Income (Expense):
Other Income (Deductions)	1,435				(968		)		(15,542		)		(21,174		)
Interest Expense on Long-Term Debt	(25,598		)		(28,534		)		(101,614		)		(110,946		)
Other Interest Expense	(1,081		)		(834		)		(5,142		)		(3,576		)
Income Before Income Taxes	58,696				54,325				389,511				384,027
Income Tax Expense (Benefit)	11,415				16,331				85,221				(7,494		)
Net Income Available for Common Stock	$	47,281			$	37,994			$	304,290			$	391,521
Earnings Per Common Share
Basic	$	0.55			$	0.44			$	3.53			$	4.56
Diluted	$	0.54			$	0.44			$	3.51			$	4.53
Weighted Average Common Shares:
Used in Basic Calculation	86,315,038				85,953,204				86,235,550				85,830,597
Used in Diluted Calculation	86,807,821				86,650,677				86,773,259				86,439,698

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	September 30,				September 30,
(Thousands of Dollars)	2019				2018
ASSETS
Property, Plant and Equipment	$	11,204,838			$	10,439,839
Less - Accumulated Depreciation, Depletion and Amortization		5,695,328				5,462,696
Net Property, Plant and Equipment		5,509,510				4,977,143
Current Assets:
Cash and Temporary Cash Investments		20,428				229,606
Hedging Collateral Deposits		6,832				3,441
Receivables - Net		139,956				141,498
Unbilled Revenue		18,758				24,182
Gas Stored Underground		36,632				37,813
Materials and Supplies - at average cost		40,717				35,823
Unrecovered Purchased Gas Costs		2,246				4,204
Other Current Assets		97,054				68,024
Total Current Assets		362,623				544,591
Other Assets:
Recoverable Future Taxes		115,197				115,460
Unamortized Debt Expense		14,005				15,975
Other Regulatory Assets		167,320				112,918
Deferred Charges		33,843				40,025
Other Investments		144,917				132,545
Goodwill		5,476				5,476
Prepaid Post-Retirement Benefit Costs		60,517				82,733
Fair Value of Derivative Financial Instruments		48,669				9,518
Other		80				102
Total Other Assets		590,024				514,752
Total Assets	$	6,462,157			$	6,036,486
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 86,315,287 Shares and 85,956,814 Shares, Respectively	$	86,315			$	85,957
Paid in Capital		832,264				820,223
Earnings Reinvested in the Business		1,272,601				1,098,900
Accumulated Other Comprehensive Loss		(52,155	)			(67,750	)
Total Comprehensive Shareholders' Equity		2,139,025				1,937,330
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,133,718				2,131,365
Total Capitalization		4,272,743				4,068,695
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		55,200				—
Current Portion of Long-Term Debt		—				—
Accounts Payable		132,208				160,031
Amounts Payable to Customers		7,445				3,394
Dividends Payable		37,547				36,532
Interest Payable on Long-Term Debt		18,508				19,062
Customer Advances		13,044				13,609
Customer Security Deposits		16,210				25,703
Other Accruals and Current Liabilities		139,600				132,693
Fair Value of Derivative Financial Instruments		5,574				49,036
Total Current and Accrued Liabilities		425,336				440,060
Deferred Credits:
Deferred Income Taxes		653,382				512,686
Taxes Refundable to Customers		366,503				370,628
Cost of Removal Regulatory Liability		221,699				212,311
Other Regulatory Liabilities		138,939				146,743
Pension and Other Post-Retirement Liabilities		133,729				66,103
Asset Retirement Obligations		127,458				108,235
Other Deferred Credits		122,368				111,025
Total Deferred Credits		1,764,078				1,527,731
Commitments and Contingencies		—				—
Total Capitalization and Liabilities	$	6,462,157			$	6,036,486

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Twelve Months Ended
	September 30,
(Thousands of Dollars)	2019				2018
Operating Activities:
Net Income Available for Common Stock	$	304,290			$	391,521
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization	275,660				240,961
Deferred Income Taxes	122,265				(18,153		)
Stock-Based Compensation	21,186				15,762
Other	8,608				16,133
Change in:
Receivables and Unbilled Revenue	6,379				(30,882		)
Gas Stored Underground and Materials and Supplies	(3,713		)		(4,021		)
Unrecovered Purchased Gas Costs	1,958				419
Other Current Assets	(29,030		)		(16,519		)
Accounts Payable	(24,770		)		17,962
Amounts Payable to Customers	4,051				3,394
Customer Advances	(565		)		(2,092		)
Customer Security Deposits	(9,493		)		5,331
Other Accruals and Current Liabilities	10,992				3,865
Other Assets	5,115				(9,556		)
Other Liabilities	1,550				1,178
Net Cash Provided by Operating Activities	$	694,483			$	615,303
Investing Activities:
Capital Expenditures	$	(788,938	)		$	(584,004	)
Net Proceeds from Sale of Oil and Gas Producing Properties	—				55,506
Other	(10,237		)		(389		)
Net Cash Used in Investing Activities	$	(799,175	)		$	(528,887	)
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper	$	55,200			$	—
Reduction of Long-Term Debt	—				(566,512		)
Dividends Paid on Common Stock	(147,418		)		(143,258		)
Net Proceeds From Issuance of Long-Term Debt	—				295,020
Net Proceeds from Issuance (Repurchase) of Common Stock	(8,877		)		4,110
Net Cash Used in Financing Activities	$	(101,095	)		$	(410,640	)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash	(205,787		)		(324,224		)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	233,047				557,271
Cash, Cash Equivalents, and Restricted Cash at September 30	$	27,260			$	233,047

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
	Three Months Ended												Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,												September 30,
EXPLORATION AND PRODUCTION SEGMENT	2019				2018				Variance				2019			2018			Variance
Total Operating Revenues	$	164,887			$	143,167			$	21,720			$	632,740		$	564,547		$	68,193
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense	16,063				14,127				1,936				64,003			59,424			4,579
Lease Operating and Transportation Expense	50,409				41,642				8,767				186,626			162,721			23,905
All Other Operation and Maintenance Expense	3,425				2,895				530				11,130			11,077			53
Property, Franchise and Other Taxes	4,168				3,655				513				17,726			14,400			3,326
Depreciation, Depletion and Amortization	44,141				33,567				10,574				154,784			124,274			30,510
	118,206				95,886				22,320				434,269			371,896			62,373
Operating Income	46,681				47,281				(600		)		198,471			192,651			5,820
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(4		)		(293		)		289				(16		)	(1,172		)	1,156
Interest and Other Income	273				392				(119		)		1,107			1,479			(372		)
Interest Expense on Long-Term Debt	—				(962		)		962				—			(962		)	962
Other Interest Expense	(14,216		)		(13,326		)		(890		)		(54,777		)	(53,326		)	(1,451		)
Income Before Income Taxes	32,734				33,092				(358		)		144,785			138,670			6,115
Income Tax Expense (Benefit)	7,526				13,512				(5,986		)		32,978			(41,962		)	74,940
Net Income	$	25,208			$	19,580			$	5,628			$	111,807		$	180,632		$	(68,825	)
Net Income Per Share (Diluted)	$	0.29			$	0.23			$	0.06			$	1.29		$	2.09		$	(0.80	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
	Three Months Ended												Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,												September 30,
PIPELINE AND STORAGE SEGMENT	2019				2018				Variance				2019			2018			Variance
Revenues from External Customers	$	47,143			$	51,958			$	(4,815	)		$	195,808		$	210,345		$	(14,537	)
Intersegment Revenues	22,764				22,457				307				92,475			89,981			2,494
Total Operating Revenues	69,907				74,415				(4,508		)		288,283			300,326			(12,043		)
Operating Expenses:
Purchased Gas	241				341				(100		)		1,124			607			517
Operation and Maintenance	26,099				28,805				(2,706		)		94,710			86,877			7,833
Property, Franchise and Other Taxes	7,820				7,570				250				30,268			28,870			1,398
Depreciation, Depletion and Amortization	11,387				11,141				246				44,947			43,463			1,484
	45,547				47,857				(2,310		)		171,049			159,817			11,232
Operating Income	24,360				26,558				(2,198		)		117,234			140,509			(23,275		)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit	930				353				577				3,257			1,421			1,836
Interest and Other Income	1,882				1,320				562				5,900			4,505			1,395
Interest Expense	(7,132		)		(7,965		)		833				(29,142		)	(31,383		)	2,241
Income Before Income Taxes	20,040				20,266				(226		)		97,249			115,052			(17,803		)
Income Tax Expense	4,672				4,929				(257		)		23,238			17,806			5,432
Net Income	$	15,368			$	15,337			$	31			$	74,011		$	97,246		$	(23,235	)
Net Income Per Share (Diluted)	$	0.18			$	0.18			$	—			$	0.85		$	1.13		$	(0.28	)
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
GATHERING SEGMENT	2019				2018				Variance				2019			2018			Variance
Revenues from External Customers	$	10			$	—			$	10			$	11		$	41		$	(30	)
Intersegment Revenues	35,132				28,452				6,680				127,064			107,856			19,208
Total Operating Revenues	35,142				28,452				6,690				127,075			107,897			19,178
Operating Expenses:
Operation and Maintenance	5,229				4,615				614				18,702			15,862			2,840
Property, Franchise and Other Taxes	18				23				(5		)		81			98			(17		)
Depreciation, Depletion and Amortization	5,202				4,554				648				20,038			17,313			2,725
	10,449				9,192				1,257				38,821			33,273			5,548
Operating Income	24,693				19,260				5,433				88,254			74,624			13,630
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(1		)		(82		)		81				(86		)	(328		)	242
Interest and Other Income	57				130				(73		)		546			1,106			(560		)
Interest Expense	(2,397		)		(2,211		)		(186		)		(9,406		)	(9,560		)	154
Income Before Income Taxes	22,352				17,097				5,255				79,308			65,842			13,466
Income Tax Expense (Benefit)	5,450				2,314				3,136				20,895			(17,677		)	38,572
Net Income	$	16,902			$	14,783			$	2,119			$	58,413		$	83,519		$	(25,106	)
Net Income Per Share (Diluted)	$	0.19			$	0.17			$	0.02			$	0.67		$	0.97		$	(0.30	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESS
	Three Months Ended												Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,												September 30,
UTILITY SEGMENT	2019				2018				Variance				2019			2018			Variance
Revenues from External Customers	$	67,189			$	75,231			$	(8,042	)		$	715,813		$	674,726		$	41,087
Intersegment Revenues	1,645				1,399				246				11,629			12,800			(1,171		)
Total Operating Revenues	68,834				76,630				(7,796		)		727,442			687,526			39,916
Operating Expenses:
Purchased Gas	14,712				19,683				(4,971		)		342,832			306,130			36,702
Operation and Maintenance	38,845				37,798				1,047				168,684			165,858			2,826
Property, Franchise and Other Taxes	8,563				8,635				(72		)		39,792			39,984			(192		)
Depreciation, Depletion and Amortization	13,630				13,272				358				53,832			53,253			579
	75,750				79,388				(3,638		)		605,140			565,225			39,915
Operating Income (Loss)	(6,916		)		(2,758		)		(4,158		)		122,302			122,301			1
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(2,040		)		(3,722		)		1,682				(27,600		)	(31,399		)	3,799
Interest and Other Income	870				705				165				3,579			2,326			1,253
Interest Expense	(5,492		)		(6,487		)		995				(23,443		)	(26,753		)	3,310
Income (Loss) Before Income Taxes	(13,578		)		(12,262		)		(1,316		)		74,838			66,475			8,363
Income Tax Expense (Benefit)	(5,850		)		(5,195		)		(655		)		13,967			15,258			(1,291		)
Net Income (Loss)	$	(7,728	)		$	(7,067	)		$	(661	)		$	60,871		$	51,217		$	9,654
Net Income (Loss) Per Share (Diluted)	$	(0.09	)		$	(0.08	)		$	(0.01	)		$	0.70		$	0.59		$	0.11

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
	Three Months Ended												Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,												September 30,
ALL OTHER	2019				2018				Variance				2019			2018			Variance
Revenues from External Customers	$	13,977			$	18,785			$	(4,808	)		$	148,582		$	142,349		$	6,233
Intersegment Revenues	71				237				(166		)		1,127			826			301
Total Operating Revenues	14,048				19,022				(4,974		)		149,709			143,175			6,534
Operating Expenses:
Purchased Gas	13,439				18,242				(4,803		)		144,292			131,481			12,811
Operation and Maintenance	1,837				1,833				4				7,549			7,438			111
Property, Franchise and Other Taxes	141				140				1				540			565			(25		)
Depreciation, Depletion and Amortization	115				436				(321		)		1,291			1,902			(611		)
	15,532				20,651				(5,119		)		153,672			141,386			12,286
Operating Income (Loss)	(1,484		)		(1,629		)		145				(3,963		)	1,789			(5,752		)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(11		)		(133		)		122				(153		)	(535		)	382
Interest and Other Income	319				335				(16		)		1,371			1,154			217
Other Interest Expense	(6		)		(5		)		(1		)		(21		)	(22		)	1
Income (Loss) Before Income Taxes	(1,182		)		(1,432		)		250				(2,766		)	2,386			(5,152		)
Income Tax Expense (Benefit)	(316		)		(474		)		158				(955		)	2,125			(3,080		)
Net Income (Loss)	$	(866	)		$	(958	)		$	92			$	(1,811	)	$	261		$	(2,072	)
Net Income (Loss) Per Share (Diluted)	$	(0.01	)		$	(0.01	)		$	—			$	(0.02	)	$	—		$	(0.02	)
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
CORPORATE	2019				2018				Variance				2019			2018			Variance
Revenues from External Customers	$	134			$	55			$	79			$	378		$	660		$	(282	)
Intersegment Revenues	1,144				1,047				97				4,638			4,045			593
Total Operating Revenues	1,278				1,102				176				5,016			4,705			311
Operating Expenses:
Operation and Maintenance	4,348				4,839				(491		)		14,258			15,624			(1,366		)
Property, Franchise and Other Taxes	129				125				4				479			476			3
Depreciation, Depletion and Amortization	195				189				6				768			756			12
	4,672				5,153				(481		)		15,505			16,856			(1,351		)
Operating Loss	(3,394		)		(4,051		)		657				(10,489		)	(12,151		)	1,662
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(647		)		(156		)		(491		)		(2,679		)	(624		)	(2,055		)
Interest and Other Income	28,993				30,552				(1,559		)		115,605			124,002			(8,397		)
Interest Expense on Long-Term Debt	(25,598		)		(27,572		)		1,974				(101,614		)	(109,984		)	8,370
Other Interest Expense	(1,024		)		(1,209		)		185				(4,726		)	(5,641		)	915
Loss before Income Taxes	(1,670		)		(2,436		)		766				(3,903		)	(4,398		)	495
Income Tax Expense (Benefit)	(67		)		1,245				(1,312		)		(4,902		)	16,956			(21,858		)
Net Income (Loss)	$	(1,603	)		$	(3,681	)		$	2,078			$	999		$	(21,354	)	$	22,353
Net Income (Loss) Per Share (Diluted)	$	(0.02	)		$	(0.05	)		$	0.03			$	0.02		$	(0.25	)	$	0.27
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
INTERSEGMENT ELIMINATIONS	2019				2018				Variance				2019			2018			Variance
Intersegment Revenues	$	(60,756	)		$	(53,592	)		$	(7,164	)		$	(236,933	)	$	(215,508	)	$	(21,425	)
Operating Expenses:
Purchased Gas	(23,664		)		(23,298		)		(366		)		(101,983		)	(100,396		)	(1,587		)
Operation and Maintenance	(37,092		)		(30,294		)		(6,798		)		(134,950		)	(115,112		)	(19,838		)
	(60,756		)		(53,592		)		(7,164		)		(236,933		)	(215,508		)	(21,425		)
Operating Income	—				—				—				—			—			—
Other Income (Expense):
Interest and Other Deductions	(29,186		)		(30,369		)		1,183				(116,373		)	(123,109		)	6,736
Interest Expense	29,186				30,369				(1,183		)		116,373			123,109			(6,736		)
Net Income (Loss)	$	—			$	—			$	—			$	—		$	—		$	—
Net Income (Loss) Per Share (Diluted)	$	—			$	—			$	—			$	—		$	—		$	—

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
	(Unaudited)												(Unaudited)
									Increase												Increase
	2019				2018				(Decrease)				2019				2018				(Decrease)
Capital Expenditures:
Exploration and Production	$	100,215		(1)	$	110,801		(2)	$	(10,586	)		$	491,889		(1)(2)	$	380,677		(2)(3)	$	111,212
Pipeline and Storage	54,878			(1)	39,476			(2)	15,402				143,005			(1)(2)	92,832			(2)(3)	50,173
Gathering	10,254			(1)	13,961			(2)	(3,707		)		49,650			(1)(2)	61,728			(2)(3)	(12,078		)
Utility	37,483			(1)	33,621			(2)	3,862				95,847			(1)(2)	85,648			(2)(3)	10,199
Total Reportable Segments	202,830				197,859				4,971				780,391				620,885				159,506
All Other	5				7				(2		)		128				41				87
Corporate	358				131				227				727				181				546
Eliminations	—				(583		)		583				—				(20,505		)		20,505
Total Capital Expenditures	$	203,193			$	197,414			$	5,779			$	781,246			$	600,602			$	180,644

⁽¹⁾  Capital expenditures for the quarter and year ended September 30, 2019, include accounts payable and accrued liabilities related to capital expenditures of $38.0 million, $23.8 million, $6.6 million, and $12.7 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 September 30, 2019, since they represent non-cash investing activities at that date.

⁽²⁾  Capital expenditures for the year ended September 30, 2019, exclude capital expenditures of $51.3 million, $21.9 million, $6.1 million and $9.5 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, 2018 and paid during the year ended September 30, 2019.  These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2018, since they represented non-cash investing activities at that date.  These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2019.

⁽³⁾  Capital expenditures for the year ended September 30, 2018, exclude capital expenditures of $36.5 million, $25.1 million, $3.9 million and $6.7 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, 2017 and paid during the year ended September 30, 2018.  These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represented non-cash investing activities at that date.  These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2018.

DEGREE DAYS
							Percent Colder
							(Warmer) Than:
Three Months Ended September 30	Normal		2019		2018		Normal (1)			Last Year (1)
Buffalo, NY	162		45		83		(72.2	)		(45.8	)
Erie, PA	124		12		47		(90.3	)		(74.5	)
Twelve Months Ended September 30
Buffalo, NY	6,617		6,699		6,391		1.2			4.8
Erie, PA	6,147		5,911		5,976		(3.8	)		(1.1	)

⁽¹⁾  Percents compare actual 2019 degree days to normal degree days and actual 2019 degree days to actual 2018 degree days.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
		Three Months Ended												Twelve Months Ended
		September 30,												September 30,
										Increase												Increase
		2019				2018				(Decrease)				2019				2018				(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia		54,952				43,238				11,714				195,906				160,499				35,407
West Coast		491				511				(20		)		1,974				2,407				(433		)
Total Production		55,443				43,749				11,694				197,880				162,906				34,974
Average Prices (Per Mcf)
Appalachia		$	1.95			$	2.34			$	(0.39	)		$	2.40			$	2.36			$	0.04
West Coast		3.94				5.73				(1.79		)		5.15				4.86				0.29
Weighted Average		1.97				2.38				(0.41		)		2.43				2.40				0.03
Weighted Average after Hedging		2.26				2.45				(0.19		)		2.44				2.52				(0.08		)
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia		1				1				—				3				4				(1		)
West Coast		611				597				14				2,320				2,531				(211		)
Total Production		612				598				14				2,323				2,535				(212		)
Average Prices (Per Barrel)
Appalachia		$	60.70			$	66.97			$	(6.27	)		$	57.14			$	57.76			$	(0.62	)
West Coast		61.85				71.91				(10.06		)		64.18				66.39				(2.21		)
Weighted Average		61.85				71.90				(10.05		)		64.17				66.38				(2.21		)
Weighted Average after Hedging		61.00				57.71				3.29				61.65				58.66				2.99
Total Production (MMcfe)		59,115				47,337				11,778				211,818				178,116				33,702
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)		$	0.27			$	0.30			$	(0.03	)		$	0.30			$	0.33			$	(0.03	)
Lease Operating and Transportation Expense per Mcfe (1)(2)		$	0.85			$	0.88			$	(0.03	)		$	0.88			$	0.91			$	(0.03	)
Depreciation, Depletion & Amortization per Mcfe (1)		$	0.75			$	0.71			$	0.04			$	0.73			$	0.70			$	0.03

⁽¹⁾  Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

⁽²⁾  Amounts include transportation expense of $0.56 and $0.53 per Mcfe for the three months ended September 30, 2019 and September 30, 2018, respectively. Amounts include transportation expense of $0.56 and $0.54 per Mcfe for the twelve months ended September 30, 2019 and September 30, 2018, respectively.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Fiscal 2020		Volume						Average Hedge Price
Oil Swaps
Brent		1,260,000		BBL		$		64.66 / BBL
NYMEX		324,000		BBL		$		50.52 / BBL
Total		1,584,000		BBL		$		61.77 / BBL
Gas Swaps
NYMEX		84,630,000		MMBTU		$		2.72 / MMBTU
DAWN		7,200,000		MMBTU		$		3.00 / MMBTU
Fixed Price Physical Sales		48,281,386		MMBTU		$		2.38 / MMBTU
Total		140,111,386		MMBTU		$		2.62 / MMBTU
Hedging Summary for Fiscal 2021		Volume						Average Hedge Price
Oil Swaps
Brent		576,000		BBL		$		64.48 / BBL
NYMEX		156,000		BBL		$		51.00 / BBL
Total		732,000		BBL		$		61.61 / BBL
Gas Swaps
NYMEX		10,630,000		MMBTU		$		2.80 / MMBTU
DAWN		600,000		MMBTU		$		3.00 / MMBTU
Fixed Price Physical Sales		41,206,344		MMBTU		$		2.21 / MMBTU
Total		52,436,344		MMBTU		$		2.34 / MMBTU
Hedging Summary for Fiscal 2022		Volume						Average Hedge Price
Oil Swaps
Brent		300,000		BBL		$		60.07 / BBL
NYMEX		156,000		BBL		$		51.00 / BBL
Total		456,000		BBL		$		56.97 / BBL
Fixed Price Physical Sales		40,242,536		MMBTU		$		2.23 / MMBTU
Hedging Summary for Fiscal 2023		Volume						Average Hedge Price
Fixed Price Physical Sales		36,807,532		MMBTU		$		2.25 / MMBTU
Hedging Summary for Fiscal 2024		Volume						Average Hedge Price
Fixed Price Physical Sales		20,801,194		MMBTU		$		2.25 / MMBTU
Hedging Summary for Fiscal 2025		Volume						Average Hedge Price
Fixed Price Physical Sales		2,293,200		MMBTU		$		2.18 / MMBTU

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Reserve Quantity Information
(Unaudited)
		Gas MMcf
		U.S.
		Appalachian		West Coast		Total
		Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2018		2,320,502		36,840		2,357,342
Extensions and Discoveries		686,549		—		686,549
Revisions of Previous Estimates		104,741		(1,233	)	103,508
Production		(195,906	)	(1,974	)	(197,880	)
September 30, 2019		2,915,886		33,633		2,949,519
Proved Developed Reserves:
September 30, 2018		1,569,692		36,840		1,606,532
September 30, 2019		1,901,162		33,633		1,934,795
		Oil Mbbl
		U.S.
		Appalachian		West Coast		Total
		Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2018		14		27,649		27,663
Extensions and Discoveries		—		787		787
Revisions of Previous Estimates		2		(1,256	)	(1,254	)
Production		(3	)	(2,320	)	(2,323	)
September 30, 2019		13		24,860		24,873
Proved Developed Reserves:
September 30, 2018		14		26,689		26,703
September 30, 2019		13		24,246		24,259

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
		Three Months Ended									Twelve Months Ended
		September 30,									September 30,
								Increase									Increase
		2019			2018			(Decrease)			2019			2018			(Decrease)
Firm Transportation - Affiliated		14,194			15,058			(864	)		121,618			119,164			2,454
Firm Transportation - Non-Affiliated		153,838			165,809			(11,971	)		596,676			645,156			(48,480	)
Interruptible Transportation		189			393			(204	)		2,163			3,546			(1,383	)
		168,221			181,260			(13,039	)		720,457			767,866			(47,409	)
Gathering Volume - (MMcf)
		Three Months Ended									Twelve Months Ended
		September 30,									September 30,
								Increase									Increase
		2019			2018			(Decrease)			2019			2018			(Decrease)
Gathered Volume - Affiliated		65,170			52,427			12,743			234,760			198,355			36,405
Utility Throughput - (MMcf)
		Three Months Ended									Twelve Months Ended
		September 30,									September 30,
								Increase									Increase
		2019			2018			(Decrease)			2019			2018			(Decrease)
Retail Sales:
Residential Sales		3,247			3,707			(460	)		63,828			60,174			3,654
Commercial Sales		490			567			(77	)		9,489			9,187			302
Industrial Sales		63			63			—			702			623			79
		3,800			4,337			(537	)		74,019			69,984			4,035
Off-System Sales		—			—			—			—			141			(141	)
Transportation		10,115			10,430			(315	)		76,028			76,828			(800	)
		13,915			14,767			(852	)		150,047			146,953			3,094

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 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 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 twelve months ended September 30, 2019 and 2018:

		Three Months Ended								Twelve Months Ended
		September 30,								September 30,
(in thousands except per share amounts)		2019				2018				2019				2018
Reported GAAP Earnings		$	47,281			$	37,994			$	304,290			$	391,521
Items impacting comparability
Remeasurement of deferred income taxes under 2017 Tax Reform		—				3,516				(5,000		)		(103,484		)
Mark-to-market adjustments due to hedge ineffectiveness (E&P)		(1,313		)		346				(2,096		)		782
Tax impact of mark-to-market adjustments due to hedge ineffectiveness		276				(85		)		440				(192		)
Unrealized (gain) loss on other investments (Corporate/All Other)		949				—				2,045				—
Tax impact of unrealized (gain) loss on other investments		(199		)		—				(429		)		—
Premium paid on early redemption of debt (E&P)		—				962				—				962
Tax impact of premium paid on early redemption of debt		—				(235		)		—				(235		)
Adjusted Operating Results		$	46,994			$	42,498			$	299,250			$	289,354
Reported GAAP Earnings per share		$	0.54			$	0.44			$	3.51			$	4.53
Items impacting comparability
Remeasurement of deferred income taxes under 2017 Tax Reform		—				0.04				(0.06		)		(1.20		)
Mark-to-market adjustments due to hedge ineffectiveness, net of tax (E&P)		(0.01		)		—				(0.02		)		0.01
Unrealized (gain) loss on other investments, net of tax (Corporate/All Other)		0.01				—				0.02				—
Premium paid on early redemption of debt, net of tax (E&P)		—				0.01				—				0.01
Adjusted Operating Results per share		$	0.54			$	0.49			$	3.45			$	3.35

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 twelve months ended September 30, 2019 and 2018:

		Three Months Ended								Twelve Months Ended
		September 30,								September 30,
(in thousands)		2019				2018				2019				2018
Reported GAAP Earnings		$	47,281			$	37,994			$	304,290			$	391,521
Depreciation, Depletion and Amortization		74,670				63,159				275,660				240,961
Other (Income) Deductions		(1,435		)		968				15,542				21,174
Interest Expense		26,679				29,368				106,756				114,522
Income Taxes		11,415				16,331				85,221				(7,494		)
Mark-to-Market Adjustments due to Hedge Ineffectiveness		(1,313		)		346				(2,096		)		782
Adjusted EBITDA		$	157,297			$	148,166			$	785,373			$	761,466
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA		$	35,747			$	37,699			$	162,181			$	183,972
Gathering Adjusted EBITDA		29,895				23,814				108,292				91,937
Total Midstream Businesses Adjusted EBITDA		65,642				61,513				270,473				275,909
Exploration and Production Adjusted EBITDA		89,509				81,194				351,159				317,707
Utility Adjusted EBITDA		6,714				10,514				176,134				175,554
Corporate and All Other Adjusted EBITDA		(4,568		)		(5,055		)		(12,393		)		(7,704		)
Total Adjusted EBITDA		$	157,297			$	148,166			$	785,373			$	761,466

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
 SEGMENT ADJUSTED EBITDA

		Three Months Ended								Twelve Months Ended
		September 30,								September 30,
(in thousands)		2019				2018				2019				2018
Exploration and Production Segment
Reported GAAP Earnings		$	25,208			$	19,580			$	111,807			$	180,632
Depreciation, Depletion and Amortization		44,141				33,567				154,784				124,274
Other (Income) Deductions		(269		)		(99		)		(1,091		)		(307		)
Interest Expense		14,216				14,288				54,777				54,288
Income Taxes		7,526				13,512				32,978				(41,962		)
Mark-to-Market Adjustments due to Hedge Ineffectiveness		(1,313		)		346				(2,096		)		782
Adjusted EBITDA		$	89,509			$	81,194			$	351,159			$	317,707
Pipeline and Storage Segment
Reported GAAP Earnings		$	15,368			$	15,337			$	74,011			$	97,246
Depreciation, Depletion and Amortization		11,387				11,141				44,947				43,463
Other (Income) Deductions		(2,812		)		(1,673		)		(9,157		)		(5,926		)
Interest Expense		7,132				7,965				29,142				31,383
Income Taxes		4,672				4,929				23,238				17,806
Adjusted EBITDA		$	35,747			$	37,699			$	162,181			$	183,972
Gathering Segment
Reported GAAP Earnings		$	16,902			$	14,783			$	58,413			$	83,519
Depreciation, Depletion and Amortization		5,202				4,554				20,038				17,313
Other (Income) Deductions		(56		)		(48		)		(460		)		(778		)
Interest Expense		2,397				2,211				9,406				9,560
Income Taxes		5,450				2,314				20,895				(17,677		)
Adjusted EBITDA		$	29,895			$	23,814			$	108,292			$	91,937
Utility Segment
Reported GAAP Earnings		$	(7,728	)		$	(7,067	)		$	60,871			$	51,217
Depreciation, Depletion and Amortization		13,630				13,272				53,832				53,253
Other (Income) Deductions		1,170				3,017				24,021				29,073
Interest Expense		5,492				6,487				23,443				26,753
Income Taxes		(5,850		)		(5,195		)		13,967				15,258
Adjusted EBITDA		$	6,714			$	10,514			$	176,134			$	175,554
Corporate and All Other
Reported GAAP Earnings		$	(2,469	)		$	(4,639	)		$	(812	)		$	(21,093	)
Depreciation, Depletion and Amortization		310				625				2,059				2,658
Other (Income) Deductions		532				(229		)		2,229				(888		)
Interest Expense		(2,558		)		(1,583		)		(10,012		)		(7,462		)
Income Taxes		(383		)		771				(5,857		)		19,081
Adjusted EBITDA		$	(4,568	)		$	(5,055	)		$	(12,393	)		$	(7,704	)