National Fuel Reports Fourth Quarter and Full Year Fiscal 2021 Earnings

WILLIAMSVILLE, N.Y., Nov. 04, 2021 (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, 2021.

FISCAL 2021 FOURTH QUARTER SUMMARY

• GAAP net income of $87.0 million, or $0.95 per share, compared to GAAP net loss of $145.5 million, or $1.60 per share, in the prior year.
• Adjusted operating results of $87.3 million, or $0.95 per share, an increase of 138%, compared to $0.40 per share in the prior year (see non-GAAP reconciliation on page 2).
• Adjusted EBITDA of $215.9 million, an increase of 35%, compared to $159.6 million in the prior year (see non-GAAP reconciliation on page 25).
• E&P segment Adjusted EBITDA of $120.6 million, an increase of 60% from the prior year.
• E&P segment net production of 79.6 Bcfe, an increase of 12.3 Bcfe, or 18%, from the prior year.
• Gathering segment Adjusted EBITDA of $37.9 million, an increase of 15% from the prior year.
• Pipeline & Storage segment Adjusted EBITDA of $49.1 million, an increase of 5% from the prior year.
  

FISCAL 2021 HIGHLIGHTS

• GAAP net income of $363.6 million, or $3.97 per share, compared to GAAP net loss of $123.8 million, or $1.41 per share, in the prior year.
• Adjusted operating results of $393.1 million, or $4.29 per share, an increase of 47%, compared to $2.92 per share in the prior year (see non-GAAP reconciliation on page 2).
• Successfully integrated the Company's fiscal 2020 Appalachian acquisition, with E&P segment net production of 327.4 Bcfe, an increase of 85.9 Bcfe, or 36%, from the prior year, and a corresponding 38% increase in Gathering segment throughput.
• Reduced E&P segment cash operating costs (combined G&A expense, LOE expense, other operation and maintenance expense, and property, franchise, and other taxes) to $1.14 per Mcfe, a decrease of approximately $0.09 per Mcfe, or 7%, from the prior year.
• Continued growth of Pipeline & Storage segment, with revenues of $343.6 million, an increase of $34.0 million, or 11%, from the prior year, driven largely by the Company's Empire North expansion project.
• Invested $79.7 million in Utility system modernization and reliability, replacing over 150 miles of older vintage mains and services, and bringing 5-year total to over $358 million.
• Increased shareholder dividend for the 51^st consecutive year to an annual rate of $1.82 per share.
• Published second annual Corporate Responsibility Report in September 2021, which includes additional climate-related information under the Task Force on Climate-Related Financial Disclosures framework, enhanced disclosure of scope 1 and scope 2 emissions, and methane intensity and greenhouse gas emission reduction targets.

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel closed out an excellent fiscal 2021, with a 47% increase in our adjusted operating results compared to last year. The successful integration of our fiscal 2020 Appalachian acquisition, continued growth of our FERC-regulated pipeline business, and higher commodity prices all contributed to the strong results and position National Fuel for success in the coming years.

“As we move into fiscal 2022, the expected December 1, 2021 in-service of our FM100 expansion and modernization project will drive further growth for National Fuel. Once complete, this project is expected to deliver approximately $50 million in incremental annual revenues for the Pipeline and Storage segment, and will provide desirable pipeline takeaway capacity to higher value Mid-Atlantic markets, allowing for further growth in both our Exploration and Production and Gathering segments.

“Overall, the FM100 Project serves as a key example of the value of our integrated business model. Coupled with the Company’s commitment to reducing our emissions footprint in all segments, as evidenced by our targets set out in our recently published Corporate Responsibility Report, we believe we can generate strong, sustainable returns in the years ahead and deliver long-term value for our shareholders.”

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

		Three Months Ended								Fiscal Year Ended
		September 30,								September 30,
(in thousands except per share amounts)		2021				2020				2021				2020
Reported GAAP Earnings		$	86,962			$	(145,545	)		$	363,647			$	(123,772	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)		—				253,441				76,152				449,438
Tax impact of impairment of oil and gas properties		—				(69,698		)		(20,980		)		(123,187		)
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		)		—
Deferred tax valuation allowance		—				—				—				56,770
Unrealized (gain) loss on other investments (Corporate / All Other)		395				(2,439		)		(181		)		(1,645		)
Tax impact of unrealized (gain) loss on other investments		(83		)		512				38				345
Adjusted Operating Results		$	87,274			$	36,271			$	393,073			$	257,949
Reported GAAP Earnings Per Share		$	0.95			$	(1.60	)		$	3.97			$	(1.41	)
Items impacting comparability:
Impairment of oil and gas properties, net of tax (E&P)		—				2.02				0.60				3.71
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				—
Deferred tax valuation allowance		—				—				—				0.65
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		—				(0.02		)		—				(0.01		)
Earnings per share impact of diluted shares		—				—				—				(0.02		)
Adjusted Operating Results Per Share		$	0.95			$	0.40			$	4.29			$	2.92

FISCAL 2022 GUIDANCE UPDATE

National Fuel is revising its fiscal 2022 earnings guidance to reflect updated forecast assumptions and projections, including the impact of increased natural gas price expectations since the Company’s preliminary guidance was announced in August 2021. The Company is now projecting that earnings will be within the range of $5.05 to $5.45 per share, an increase of 22% from the Company’s 2021 adjusted operating results at the midpoint of the updated guidance range.

Due to the meaningful difference between current winter and summer NYMEX forward natural gas prices for fiscal 2022, the Company is revising its guidance to reflect projections for both the first half and second half of this fiscal year. The Company is now assuming that NYMEX natural gas prices will average $5.50 per MMBtu for the first six months of fiscal 2022 (October-March) and $3.75 per MMBtu for the second half of fiscal 2022 (April-September). Additionally, the Company is now assuming that WTI oil prices will average $75.00 per Bbl in fiscal 2022, a $10.00 increase from the $65.00 per Bbl assumed in the previous guidance. For guidance purposes, the Company’s updated projections approximate 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, and financial hedge contracts.

Consistent with preliminary guidance, the Exploration and Production segment’s fiscal 2022 net production remains unchanged, which is expected to be in the range of 335 to 365 Bcfe. Seneca currently has firm sales contracts in place for approximately 93% of its projected fiscal 2022 Appalachian production, limiting its exposure to in-basin markets. Approximately 76% of Seneca’s expected Appalachian production is either matched by a financial hedge, including a combination of swaps and no-cost collars, or were entered into at a fixed price. The Company’s consolidated and individual segment capital expenditures guidance also remain unchanged from the preliminary guidance.

The Company's other guidance assumptions remain largely unchanged from the previous guidance. Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2022 are outlined in the table on page 8.

DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended September 30, 2021 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the fiscal year ended September 30, 2021 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.

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)	2021				2020				Variance
GAAP Earnings	$	55,703			$	(169,171	)		$	224,874
Impairment of oil and gas properties, net of tax	—				183,743				(183,743		)
Adjusted Operating Results	$	55,703			$	14,572			$	41,131
Adjusted EBITDA	$	120,588			$	75,439			$	45,149

Seneca’s fourth quarter GAAP earnings increased $224.9 million versus the prior year, primarily due to the prior-year fourth quarter impact of a non-cash ceiling test impairment charge of $183.7 million (after-tax). Excluding this item, Seneca’s fourth quarter earnings increased $41.1 million primarily due to higher natural gas production and higher realized natural gas and crude oil prices, as well as lower interest expense and a lower effective income tax rate, partially offset by higher operating expenses.

Seneca produced 79.6 Bcfe during the fourth quarter, an increase of 12.3 Bcfe, or 18%, from the prior year. The improvement was due to an increase in natural gas production, primarily due to the Company's fourth quarter fiscal 2020 Appalachian acquisition coupled with production growth from Seneca's other core development areas. Approximately 6.7 Bcf of the natural gas production increase came from the Eastern Development Area ("EDA"), while the remaining increase of 5.6 Bcf was attributable to Seneca’s Western Development Area ("WDA"). Seneca's crude oil production in California decreased 4 MBbls, or 1%, versus the prior year.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.37 per Mcf, an increase of $0.45 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 $60.04 per Bbl, an increase of $4.34 per Bbl compared to the prior year. The improvement in oil price realizations was primarily due to stronger commodity pricing.

Lease operating and transportation (“LOE”) expense increased $13.0 million primarily due to higher transportation costs in Appalachia from increased production, as well as higher well repairs, workover activity and steam fuel costs in California. LOE expense includes $45.8 million in intercompany expense for gathering and compression services used to connect Seneca’s Appalachian production to sales points along interstate pipelines. DD&A expense increased $1.7 million due largely to higher natural gas production, partially offset by the impact of ceiling test impairments recorded during fiscal 2020. Other taxes increased $2.2 million primarily due to higher impact fee accruals in Pennsylvania, driven by higher expected NYMEX natural gas prices for calendar 2021.

Interest expense decreased $3.6 million due primarily to lower weighted average interest rates as a result of the Company's issuance of a 2.95% coupon 10-year note in February 2021, which replaced a 4.9% coupon 10-year note that was retired in March 2021. The reduction in Seneca's effective income tax rate was primarily driven by a decrease to a valuation allowance for deferred tax assets that was initially established in the second quarter of fiscal 2020, partially offset by a higher effective state income tax rate as a result of the Company's Appalachian acquisition that caused a change in the mix of earnings between state jurisdictions.

Proved Reserves Year-End Update

Seneca’s total proved natural gas and crude oil reserves at September 30, 2021 were 3,853 Bcfe, an increase of 395 Bcfe, or 11%, from September 30, 2020. Seneca’s proved developed reserves at the end of fiscal 2021 were 3,217 Bcfe, representing 84% of total proved reserves, which is consistent with the prior year. The proved reserves base is approximately 97% natural gas and 3% oil. In fiscal 2021, Seneca recorded 696 Bcfe of proved reserve extensions and discoveries, due primarily to Utica and Marcellus locations, and 27 Bcfe of net positive revisions due primarily to certain price-related revisions, improvements in well performance and changes in development plans. As a result, Seneca replaced 221% of its fiscal 2021 production.

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)	2021				2020				Variance
GAAP Earnings	$	21,482			$	16,045			$	5,437
Adjusted EBITDA	$	49,131			$	46,966			$	2,165

The Pipeline and Storage segment’s fourth quarter GAAP earnings increased $5.4 million versus the prior year primarily due to higher operating revenues and an increase in other income, as well as a lower effective income tax rate, partially offset by higher O&M expense and higher DD&A expense. The increase in operating revenues of $4.7 million, or 6%, was largely due to new demand charges for transportation service from the Company's Empire North expansion project, which was placed in service near the end of the fourth quarter of fiscal 2020, combined with an increase in revenues from a surcharge for pipeline safety and greenhouse gas regulatory costs, which went into effect in November 2020 in accordance with Supply Corporation's fiscal 2020 rate case settlement. Additionally, the Company recognized increased revenue from a surcharge mechanism for power costs related to electric motor drive compression on the Empire North project, for which offsetting O&M expense was recognized during the quarter. These positive items were partially offset by a modest decrease in transportation revenue from miscellaneous contract revisions. The increase in other income of $2.0 million was primarily due to an increase in allowance for funds used during construction (AFUDC) related to Supply Corporation's FM100 project. The reduction in the Pipeline and Storage segment's effective income tax rate was primarily due to timing differences in book and tax deductions. O&M expense increased $1.5 million primarily due to higher pipeline integrity costs, higher vehicle fuel costs and higher personnel costs, as well as the aforementioned Empire power costs. The increase in DD&A expense of $1.0 million was primarily attributable to incremental depreciation from the Empire North expansion 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
	September 30,
(in thousands)	2021				2020				Variance
GAAP Earnings	$	18,597			$	17,550			$	1,047
Adjusted EBITDA	$	37,858			$	33,062			$	4,796

The Gathering segment’s fourth quarter GAAP earnings increased $1.0 million versus the prior year. The earnings increase was primarily driven by higher operating revenues, which was partially offset by higher DD&A expense, higher O&M expense and a higher effective income tax rate. Operating revenues increased $7.8 million, or 20%, primarily due to new Marcellus and Utica wells that were brought online, as well as from increased gathering throughput resulting from the Company's Appalachian acquisition in August 2020. Compression leasing expenses associated with the Appalachian acquisition were partially responsible for the $3.0 million increase in O&M expense, with the remainder of the increase due to higher compression facility and maintenance costs, as well as higher fuel costs. The increase in DD&A expense of $1.4 million was primarily attributable to incremental depreciation expense related to the Company's Appalachian acquisition, as well as higher average depreciable plant in service compared to the prior year. The increase in the Gathering segment's effective income tax rate was primarily driven by a higher effective state income tax rate as a result of the Company's Appalachian acquisition that caused a change in the mix of earnings between state jurisdictions.

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)	2021				2020				Variance
GAAP Earnings	$	(5,587	)		$	(6,969	)		$	1,382
Adjusted EBITDA	$	11,093			$	8,550			$	2,543

The Utility segment’s fourth quarter net loss was $1.4 million lower than the prior-year fourth quarter primarily due to higher customer margins (operating revenues less purchased gas sold) and lower O&M expense, partially offset by higher DD&A expense. The increase in customer margin was due primarily to the positive impact of adjustments related to certain regulatory rate and cost recovery mechanisms subject to annual reconciliation, as well as higher revenues from the Company's system modernization tracking mechanism in its New York service territory. O&M expense decreased $0.7 million primarily due to lower mandated regulatory compliance fees as well as lower accruals for the allowance for uncollectible accounts, which were higher in the prior-year fourth quarter from the economic backdrop brought on by COVID-19, partially offset by an increase in vehicle fuel costs. The $0.6 million increase in DD&A expense was primarily attributable to higher average depreciable plant in service compared to the prior year.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.2 million in the current year fourth quarter, generally consistent with the combined net loss of $3.0 million generated in the prior-year fourth quarter.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 5, 2021, 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: http://www.directeventreg.com/registration/event/1909399. To access the webcast, visit the Events Calendar under the News & Events page on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay of the conference call will be available approximately two hours following the teleconference at the same website link and by phone (toll-free) at 800-585-8367 using conference ID number “1909399”. Both the webcast and conference call replay will be available until the close of business on Friday, November 12, 2021.

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.

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; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; 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; changes in the price of natural gas or oil; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; 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 and oil reserves; delays or changes in costs or 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 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; 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 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; 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; 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 page 2, the Company is revising its earnings guidance for fiscal 2022. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

While the Company expects to record certain adjustments to unrealized gain or loss on investments during the fiscal year 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.

	Preliminary FY 2022 Guidance		Updated FY 2022 Guidance
Consolidated Earnings per Share, excluding items impacting comparability	$4.40 to $4.80		$5.05 to $5.45
Consolidated Effective Tax Rate	~ 25-26%		~ 25-26%
Capital Expenditures (Millions)
Exploration and Production	$400 - $450		$400 - $450
Pipeline and Storage	$100 - $150		$100 - $150
Gathering	$50 - $60		$50 - $60
Utility	$90 - $100		$90 - $100
Consolidated Capital Expenditures	$640 - $760		$640 - $760
Exploration & Production Segment Guidance
Commodity Price Assumptions
NYMEX natural gas price (Oct - Mar | Apr - Sep)	$3.50 /MMBtu		$5.50 /MMBtu | $3.75 /MMBtu
Appalachian basin spot price (Oct - Mar | Apr - Sep)	$2.85 /MMBtu | $2.25 /MMBtu		$4.80 /MMBtu | $2.75 /MMBtu
NYMEX (WTI) crude oil price	$65.00 /Bbl		$75.00 /Bbl
California oil price premium (% of WTI)	96%		97%
Production (Bcfe)	335 to 365		335 to 365
E&P Operating Costs ($/Mcfe)
LOE	$0.82 - $0.85		$0.83 - $0.86
G&A	$0.19 - $0.21		$0.19 - $0.21
DD&A	$0.59 - $0.62		$0.59 - $0.62
Other Business Segment Guidance (Millions)
Gathering Segment Revenues	$200 - $225		$200 - $225
Pipeline and Storage Segment Revenues	$360 - $380		$360 - $380

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2021
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fourth quarter 2020 GAAP earnings	$	(169,171	)		$	16,045			$	17,550			$	(6,969	)		$	(3,000	)		$	(145,545	)
Items impacting comparability:
Impairment of oil and gas properties	253,441																				253,441
Tax impact of impairment of oil and gas properties	(69,698		)																		(69,698		)
Unrealized (gain) loss on other investments																	(2,439		)		(2,439		)
Tax impact of unrealized (gain) loss on other investments																	512				512
Fourth quarter 2020 adjusted operating results	14,572				16,045				17,550				(6,969		)		(4,927		)		36,271
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	18,648																				18,648
Higher (lower) crude oil production	(179		)																		(179		)
Higher (lower) realized natural gas prices, after hedging	27,146																				27,146
Higher (lower) realized crude oil prices, after hedging	1,893																				1,893
Midstream and All Other Revenues
Higher (lower) operating revenues					3,712				6,160								(768		)		9,104
Downstream Margins***
Impact of usage and weather													(591		)						(591		)
System modernization tracker revenues													829								829
Regulatory revenue adjustments													1,439								1,439
Operating Expenses
Lower (higher) lease operating and transportation expenses	(10,298		)																		(10,298		)
Lower (higher) operating expenses					(1,178		)		(2,371		)		615				2,199				(735		)
Lower (higher) property, franchise and other taxes	(1,737		)		(279		)														(2,016		)
Lower (higher) depreciation / depletion	(1,318		)		(781		)		(1,133		)		(505		)		912				(2,825		)
Other Income (Expense)
(Higher) lower other deductions					1,998												528				2,526
(Higher) lower interest expense	2,854				847								273				(916		)		3,058
Income Taxes
Lower (higher) income tax expense / effective tax rate	3,906				1,662				(1,360		)		(551		)		114				3,771
All other / rounding	216				(544		)		(249		)		(127		)		(63		)		(767		)
Fourth quarter 2021 adjusted operating results	55,703				21,482				18,597				(5,587		)		(2,921		)		87,274
Items impacting comparability:
Unrealized gain (loss) on other investments																	(395		)		(395		)
Tax impact of unrealized gain (loss) on other investments																	83				83
Fourth quarter 2021 GAAP earnings	$	55,703			$	21,482			$	18,597			$	(5,587	)		$	(3,233	)		$	86,962
* 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.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2021
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fourth quarter 2020 GAAP earnings per share	$	(1.86	)		$	0.18			$	0.19			$	(0.08	)		$	(0.03	)		$	(1.60	)
Items impacting comparability:
Impairment of oil and gas properties, net of tax	2.02																				2.02
Unrealized (gain) loss on other investments, net of tax																	(0.02		)		(0.02		)
Fourth quarter 2020 adjusted operating results per share	0.16				0.18				0.19				(0.08		)		(0.05		)		0.40
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	0.20																				0.20
Higher (lower) crude oil production	—																				—
Higher (lower) realized natural gas prices, after hedging	0.30																				0.30
Higher (lower) realized crude oil prices, after hedging	0.02																				0.02
Midstream and All Other Revenues
Higher (lower) operating revenues					0.04				0.07								(0.01		)		0.10
Downstream Margins***
Impact of usage and weather													(0.01		)						(0.01		)
System modernization tracker revenues													0.01								0.01
Regulatory revenue adjustments													0.02								0.02
Operating Expenses
Lower (higher) lease operating and transportation expenses	(0.11		)																		(0.11		)
Lower (higher) operating expenses					(0.01		)		(0.03		)		0.01				0.02				(0.01		)
Lower (higher) property, franchise and other taxes	(0.02		)		—																(0.02		)
Lower (higher) depreciation / depletion	(0.01		)		(0.01		)		(0.01		)		(0.01		)		0.01				(0.03		)
Other Income (Expense)
(Higher) lower other deductions					0.02												0.01				0.03
(Higher) lower interest expense	0.03				0.01								—				(0.01		)		0.03
Income Taxes
Lower (higher) income tax expense / effective tax rate	0.04				0.02				(0.01		)		(0.01		)		—				0.04
All other / rounding	—				(0.02		)		(0.01		)		0.01				—				(0.02		)
Fourth quarter 2021 adjusted operating results per share	0.61				0.23				0.20				(0.06		)		(0.03		)		0.95
Items impacting comparability:
Unrealized gain (loss) on other investments, net of tax																	—				—
Fourth quarter 2021 GAAP earnings per share	$	0.61			$	0.23			$	0.20			$	(0.06	)		$	(0.03	)		$	0.95
* 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.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2021
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fiscal 2020 GAAP earnings	$	(326,904	)		$	78,860			$	68,631			$	57,366			$	(1,725	)		$	(123,772	)
Items impacting comparability:
Impairment of oil and gas properties	449,438																				449,438
Tax impact of impairment of oil and gas properties	(123,187		)																		(123,187		)
Deferred tax valuation allowance	60,463								(3,769		)						76				56,770
Unrealized (gain) loss on other investments																	(1,645		)		(1,645		)
Tax impact of unrealized (gain) loss on other investments																	345				345
Fiscal 2020 adjusted operating results	59,810				78,860				64,862				57,366				(2,949		)		257,949
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	141,512																				141,512
Higher (lower) crude oil production	(5,073		)																		(5,073		)
Higher (lower) realized natural gas prices, after hedging	44,183																				44,183
Higher (lower) realized crude oil prices, after hedging	(727		)																		(727		)
Midstream and All Other Revenues
Higher (lower) operating revenues					26,823				39,793								(2,693		)		63,923
Downstream Margins***
Impact of usage and weather													(1,069		)						(1,069		)
System modernization tracker revenues													3,732								3,732
Regulatory revenue adjustments													273								273
Higher (lower) energy marketing margins																	(5,893		)		(5,893		)
Operating Expenses
Lower (higher) lease operating and transportation expenses	(50,280		)																		(50,280		)
Lower (higher) operating expenses	(5,262		)		(2,443		)		(8,899		)		(2,585		)		4,101				(15,088		)
Lower (higher) property, franchise and other taxes	(5,193		)		(435		)														(5,628		)
Lower (higher) depreciation / depletion	(8,191		)		(6,699		)		(7,829		)		(1,745		)		1,439				(23,025		)
Other Income (Expense)
(Higher) lower other deductions					960								(323		)		2,818				3,455
(Higher) lower interest expense	2,534				(6,514		)		(4,464		)						(2,536		)		(10,980		)
Income Taxes
Lower (higher) income tax expense / effective tax rate	(6,679		)		2,716				(2,288		)		(1,216		)		3,401				(4,066		)
All other / rounding	1,164				(726		)		(217		)		(98		)		(248		)		(125		)
Fiscal 2021 adjusted operating results	167,798				92,542				80,958				54,335				(2,560		)		393,073
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																	181				181
Tax impact of unrealized gain (loss) on other investments																	(38		)		(38		)
Fiscal 2021 GAAP earnings	$	101,916			$	92,542			$	80,274			$	54,335			$	34,580			$	363,647
* 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.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2021
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Fiscal 2020 GAAP earnings per share	$	(3.72	)		$	0.90			$	0.78			$	0.65			$	(0.02	)		$	(1.41	)
Items impacting comparability:
Impairment of oil and gas properties, net of tax	3.71																				3.71
Deferred tax valuation allowance	0.69								(0.04		)						—				0.65
Unrealized (gain) loss on other investments, net of tax																	(0.01		)		(0.01		)
Earnings per share impact of diluted shares					(0.01		)		(0.01		)										(0.02		)
Fiscal 2020 adjusted operating results per share	0.68				0.89				0.73				0.65				(0.03		)		2.92
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production	1.54																				1.54
Higher (lower) crude oil production	(0.06		)																		(0.06		)
Higher (lower) realized natural gas prices, after hedging	0.48																				0.48
Higher (lower) realized crude oil prices, after hedging	(0.01		)																		(0.01		)
Midstream and All Other Revenues
Higher (lower) operating revenues					0.29				0.43								(0.03		)		0.69
Downstream Margins***
Impact of usage and weather													(0.01		)						(0.01		)
System modernization tracker revenues													0.04								0.04
Regulatory revenue adjustments													—								—
Higher (lower) energy marketing margins																	(0.06		)		(0.06		)
Operating Expenses
Lower (higher) lease operating and transportation expenses	(0.55		)																		(0.55		)
Lower (higher) operating expenses	(0.06		)		(0.03		)		(0.10		)		(0.03		)		0.04				(0.18		)
Lower (higher) property, franchise and other taxes	(0.06		)		—																(0.06		)
Lower (higher) depreciation / depletion	(0.09		)		(0.07		)		(0.09		)		(0.02		)		0.02				(0.25		)
Other Income (Expense)
(Higher) lower other deductions					0.01								—				0.03				0.04
(Higher) lower interest expense	0.03				(0.07		)		(0.05		)						(0.03		)		(0.12		)
Income Taxes
Lower (higher) income tax expense / effective tax rate	(0.07		)		0.03				(0.02		)		(0.01		)		0.04				(0.03		)
Impact of additional shares	(0.02		)		(0.03		)		(0.03		)		(0.03		)		—				(0.11		)
All other / rounding	0.02				(0.01		)		0.01				—				—				0.02
Fiscal 2021 adjusted operating results per share	1.83				1.01				0.88				0.59				(0.02		)		4.29
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																	—				—
Fiscal 2021 GAAP earnings per share	$	1.11			$	1.01			$	0.88			$	0.59			$	0.38			$	3.97
* 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.

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	2021				2020				2021				2020
Operating Revenues:
Utility and Energy Marketing Revenues	$	80,302			$	78,016			$	667,549			$	728,336
Exploration and Production and Other Revenues	215,664				155,811				837,597				611,885
Pipeline and Storage and Gathering Revenues	60,022				54,162				237,513				206,070
	355,988				287,989				1,742,659				1,546,291
Operating Expenses:
Purchased Gas	(5,190		)		(5,773		)		171,827				233,890
Operation and Maintenance:
Utility and Energy Marketing	40,026				42,120				179,547				181,051
Exploration and Production and Other	46,007				39,800				173,041				148,856
Pipeline and Storage and Gathering	35,747				31,151				123,218				108,640
Property, Franchise and Other Taxes	23,454				21,132				94,713				88,400
Depreciation, Depletion and Amortization	83,671				80,097				335,303				306,158
Impairment of Oil and Gas Producing Properties	—				253,441				76,152				449,438
	223,715				461,968				1,153,801				1,516,433
Gain on Sale of Timber Properties	—				—				51,066				—
Operating Income (Loss)	132,273				(173,979		)		639,924				29,858
Other Income (Expense):
Other Income (Deductions)	(160		)		159				(15,238		)		(17,814		)
Interest Expense on Long-Term Debt	(30,161		)		(32,159		)		(141,457		)		(110,012		)
Other Interest Expense	(270		)		(2,202		)		(4,900		)		(7,065		)
Income (Loss) Before Income Taxes	101,682				(208,181		)		478,329				(105,033		)
Income Tax Expense (Benefit)	14,720				(62,636		)		114,682				18,739
Net Income (Loss) Available for Common Stock	$	86,962			$	(145,545	)		$	363,647			$	(123,772	)
Earnings (Loss) Per Common Share
Basic	$	0.95			$	(1.60	)		$	3.99			$	(1.41	)
Diluted	$	0.95			$	(1.60	)		$	3.97			$	(1.41	)
Weighted Average Common Shares:
Used in Basic Calculation	91,181,292				90,954,447				91,130,941				87,968,895
Used in Diluted Calculation	91,851,443				90,954,447				91,684,583				87,968,895

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	September 30,				September 30,
(Thousands of Dollars)	2021				2020
ASSETS
Property, Plant and Equipment	$	13,103,639			$	12,351,852
Less - Accumulated Depreciation, Depletion and Amortization		6,719,356				6,353,785
Net Property, Plant and Equipment		6,384,283				5,998,067
Assets Held for Sale, Net		—				53,424
Current Assets:
Cash and Temporary Cash Investments		31,528				20,541
Hedging Collateral Deposits		88,610				—
Receivables - Net		205,294				143,583
Unbilled Revenue		17,000				17,302
Gas Stored Underground		33,669				33,338
Materials, Supplies and Emission Allowances		53,560				51,877
Unrecovered Purchased Gas Costs		33,128				—
Other Current Assets		59,660				47,557
Total Current Assets		522,449				314,198
Other Assets:
Recoverable Future Taxes		121,992				118,310
Unamortized Debt Expense		10,589				12,297
Other Regulatory Assets		60,145				156,106
Deferred Charges		59,939				67,131
Other Investments		149,632				154,502
Goodwill		5,476				5,476
Prepaid Post-Retirement Benefit Costs		149,151				76,035
Fair Value of Derivative Financial Instruments		1,169				9,308
Other		—				81
Total Other Assets		558,093				599,246
Total Assets	$	7,464,825			$	6,964,935
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,181,549 Shares and 90,954,696 Shares, Respectively	$	91,182			$	90,955
Paid in Capital		1,017,446				1,004,158
Earnings Reinvested in the Business		1,191,175				991,630
Accumulated Other Comprehensive Loss		(513,597	)			(114,757	)
Total Comprehensive Shareholders' Equity		1,786,206				1,971,986
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,628,687				2,629,576
Total Capitalization		4,414,893				4,601,562
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		158,500				30,000
Accounts Payable		171,655				134,126
Amounts Payable to Customers		21				10,788
Dividends Payable		41,487				40,475
Interest Payable on Long-Term Debt		17,376				27,521
Customer Advances		17,223				15,319
Customer Security Deposits		19,292				17,199
Other Accruals and Current Liabilities		194,169				140,176
Fair Value of Derivative Financial Instruments		616,410				43,969
Total Current and Accrued Liabilities		1,236,133				459,573
Other Liabilities:
Deferred Income Taxes		660,420				696,054
Taxes Refundable to Customers		354,089				357,508
Cost of Removal Regulatory Liability		245,636				230,079
Other Regulatory Liabilities		200,643				161,573
Pension and Other Post-Retirement Liabilities		7,526				127,181
Asset Retirement Obligations		209,639				192,228
Other Liabilities		135,846				139,177
Total Other Liabilities		1,813,799				1,903,800
Commitments and Contingencies		—				—
Total Capitalization and Liabilities	$	7,464,825			$	6,964,935

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Twelve Months Ended
		September 30,
(Thousands of Dollars)		2021				2020
Operating Activities:
Net Income (Loss) Available for Common Stock		$	363,647			$	(123,772	)
Adjustments to Reconcile Net Income (Loss) to Net Cash   Provided by Operating Activities:
Gain on Sale of Timber Properties		(51,066		)		—
Impairment of Oil and Gas Producing Properties		76,152				449,438
Depreciation, Depletion and Amortization		335,303				306,158
Deferred Income Taxes		105,993				54,313
Premium Paid on Early Redemption of Debt		15,715				—
Stock-Based Compensation		17,065				14,931
Other		10,896				6,527
Change in:
Receivables and Unbilled Revenue		(61,413		)		(2,578		)
Gas Stored Underground and Materials, Supplies and Emission Allowances		(2,014		)		(6,625		)
Unrecovered Purchased Gas Costs		(33,128		)		2,246
Other Current Assets		(11,972		)		49,367
Accounts Payable		31,352				(4,657		)
Amounts Payable to Customers		(10,767		)		6,771
Customer Advances		1,904				2,275
Customer Security Deposits		2,093				989
Other Accruals and Current Liabilities		34,314				5,001
Other Assets		1,250				(24,203		)
Other Liabilities		(33,771		)		4,628
Net Cash Provided by Operating Activities		$	791,553			$	740,809
Investing Activities:
Capital Expenditures		$	(751,734	)		$	(716,153	)
Net Proceeds from Sale of Timber Properties		104,582				—
Acquisition of Upstream Assets and Midstream Gathering Assets		—				(506,258		)
Other		13,935				(1,205		)
Net Cash Used in Investing Activities		$	(633,217	)		$	(1,223,616	)
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper		$	128,500			$	(25,200	)
Reduction of Long-Term Debt		(515,715		)		—
Dividends Paid on Common Stock		(163,089		)		(153,322		)
Net Proceeds From Issuance of Long-Term Debt		495,267				493,007
Net Proceeds from Issuance (Repurchase) of Common Stock		(3,702		)		161,603
Net Cash Provided by (Used in) Financing Activities		$	(58,739	)		$	476,088
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		99,597				(6,719		)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		20,541				27,260
Cash, Cash Equivalents, and Restricted Cash at September 30		$	120,138			$	20,541

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	2021				2020				Variance				2021				2020				Variance
Total Operating Revenues	$	215,581			$	154,726			$	60,855			$	836,697			$	607,453			$	229,244
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense	16,957				16,653				304				67,973				63,429				4,544
Lease Operating and Transportation Expense	68,019				54,983				13,036				267,316				203,670				63,646
All Other Operation and Maintenance Expense	3,715				3,548				167				14,659				12,542				2,117
Property, Franchise and Other Taxes	6,302				4,103				2,199				22,220				15,646				6,574
Depreciation, Depletion and Amortization	45,135				43,467				1,668				182,492				172,124				10,368
Impairment of Oil and Gas Producing Properties	—				253,441				(253,441		)		76,152				449,438				(373,286		)
	140,128				376,195				(236,067		)		630,812				916,849				(286,037		)
Operating Income (Loss)	75,453				(221,469		)		296,922				205,885				(309,396		)		515,281
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(289		)		(395		)		106				(1,148		)		(1,580		)		432
Interest and Other Income	35				115				(80		)		211				698				(487		)
Interest Expense on Long-Term Debt	—				—				—				(15,119		)		—				(15,119		)
Interest Expense	(11,942		)		(15,555		)		3,613				(54,543		)		(58,098		)		3,555
Income (Loss) Before Income Taxes	63,257				(237,304		)		300,561				135,286				(368,376		)		503,662
Income Tax Expense (Benefit)	7,554				(68,133		)		75,687				33,370				(41,472		)		74,842
Net Income (Loss)	$	55,703			$	(169,171	)		$	224,874			$	101,916			$	(326,904	)		$	428,820
Net Income (Loss) Per Share (Diluted)	$	0.61			$	(1.86	)		$	2.47			$	1.11			$	(3.72	)		$	4.83

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	2021				2020				Variance				2021				2020				Variance
Revenues from External Customers	$	58,515			$	54,090			$	4,425			$	234,397			$	205,998			$	28,399
Intersegment Revenues	26,510				26,236				274				109,160				103,606				5,554
Total Operating Revenues	85,025				80,326				4,699				343,557				309,604				33,953
Operating Expenses:
Purchased Gas	764				74				690				983				75				908
Operation and Maintenance	26,724				25,233				1,491				90,533				87,440				3,093
Property, Franchise and Other Taxes	8,406				8,053				353				33,120				32,569				551
Depreciation, Depletion and Amortization	15,626				14,638				988				62,431				53,951				8,480
	51,520				47,998				3,522				187,067				174,035				13,032
Operating Income	33,505				32,328				1,177				156,490				135,569				20,921
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit	125				(394		)		519				501				(917		)		1,418
Interest and Other Income	2,180				701				1,479				5,339				5,552				(213		)
Interest Expense	(9,623		)		(10,695		)		1,072				(40,976		)		(32,731		)		(8,245		)
Income Before Income Taxes	26,187				21,940				4,247				121,354				107,473				13,881
Income Tax Expense	4,705				5,895				(1,190		)		28,812				28,613				199
Net Income	$	21,482			$	16,045			$	5,437			$	92,542			$	78,860			$	13,682
Net Income Per Share (Diluted)	$	0.23			$	0.18			$	0.05			$	1.01			$	0.90			$	0.11
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
GATHERING SEGMENT	2021				2020				Variance				2021				2020				Variance
Revenues from External Customers	$	1,507			$	72			$	1,435			$	3,116			$	72			$	3,044
Intersegment Revenues	45,830				39,467				6,363				190,148				142,821				47,327
Total Operating Revenues	47,337				39,539				7,798				193,264				142,893				50,371
Operating Expenses:
Operation and Maintenance	9,456				6,455				3,001				34,207				22,942				11,265
Property, Franchise and Other Taxes	23				22				1				52				72				(20		)
Depreciation, Depletion and Amortization	8,219				6,785				1,434				32,350				22,440				9,910
	17,698				13,262				4,436				66,609				45,454				21,155
Operating Income	29,639				26,277				3,362				126,655				97,439				29,216
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(68		)		(71		)		3				(271		)		(285		)		14
Interest and Other Income	6				346				(340		)		259				545				(286		)
Interest Expense on Long-Term Debt	—				—				—				(965		)		—				(965		)
Interest Expense	(4,093		)		(4,115		)		22				(16,528		)		(10,877		)		(5,651		)
Income Before Income Taxes	25,484				22,437				3,047				109,150				86,822				22,328
Income Tax Expense	6,887				4,887				2,000				28,876				18,191				10,685
Net Income	$	18,597			$	17,550			$	1,047			$	80,274			$	68,631			$	11,643
Net Income Per Share (Diluted)	$	0.20			$	0.19			$	0.01			$	0.88			$	0.78			$	0.10

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	2021				2020				Variance				2021				2020				Variance
Revenues from External Customers	$	80,302			$	73,000			$	7,302			$	666,920			$	642,855			$	24,065
Intersegment Revenues	60				944				(884		)		331				9,443				(9,112		)
Total Operating Revenues	80,362				73,944				6,418				667,251				652,298				14,953
Operating Expenses:
Purchased Gas	19,826				15,243				4,583				274,837				263,112				11,725
Operation and Maintenance	40,855				41,573				(718		)		182,266				178,896				3,370
Property, Franchise and Other Taxes	8,588				8,578				10				38,769				38,872				(103		)
Depreciation, Depletion and Amortization	14,646				14,007				639				57,457				55,248				2,209
	83,915				79,401				4,514				553,329				536,128				17,201
Operating Income (Loss)	(3,553		)		(5,457		)		1,904				113,922				116,170				(2,248		)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(1,985		)		(2,001		)		16				(26,659		)		(26,963		)		304
Interest and Other Income	733				589				144				2,874				3,583				(709		)
Interest Expense	(5,337		)		(5,720		)		383				(21,795		)		(22,150		)		355
Income (Loss) Before Income Taxes	(10,142		)		(12,589		)		2,447				68,342				70,640				(2,298		)
Income Tax Expense (Benefit)	(4,555		)		(5,620		)		1,065				14,007				13,274				733
Net Income (Loss)	$	(5,587	)		$	(6,969	)		$	1,382			$	54,335			$	57,366			$	(3,031	)
Net Income (Loss) Per Share (Diluted)	$	(0.06	)		$	(0.08	)		$	0.02			$	0.59			$	0.65			$	(0.06	)

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	2021				2020				Variance				2021				2020				Variance
Revenues from External Customers	$	—			$	5,988			$	(5,988	)		$	1,173			$	89,435			$	(88,262	)
Intersegment Revenues	26				237				(211		)		49				836				(787		)
Total Operating Revenues	26				6,225				(6,199		)		1,222				90,271				(89,049		)
Operating Expenses:
Purchased Gas	9				5,263				(5,254		)		2,306				80,485				(78,179		)
Operation and Maintenance	(20		)		2,139				(2,159		)		682				7,895				(7,213		)
Property, Franchise and Other Taxes	—				243				(243		)		47				765				(718		)
Depreciation, Depletion and Amortization	—				1,064				(1,064		)		394				1,716				(1,322		)
	(11		)		8,709				(8,720		)		3,429				90,861				(87,432		)
Gain on Sale of Timber Properties	—				—				—				51,066				—				51,066
Operating Income (Loss)	37				(2,484		)		2,521				48,859				(590		)		49,449
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	—				(69		)		69				(7		)		(276		)		269
Interest and Other Income	2				201				(199		)		231				873				(642		)
Interest Expense	—				(13		)		13				—				(66		)		66
Income (Loss) before Income Taxes	39				(2,365		)		2,404				49,083				(59		)		49,142
Income Tax Expense (Benefit)	10				(565		)		575				11,438				210				11,228
Net Income (Loss)	$	29			$	(1,800	)		$	1,829			$	37,645			$	(269	)		$	37,914
Net Income (Loss) Per Share (Diluted)	$	—			$	(0.02	)		$	0.02			$	0.41			$	—			$	0.41
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
CORPORATE	2021				2020				Variance				2021				2020				Variance
Revenues from External Customers	$	83			$	113			$	(30	)		$	356			$	478			$	(122	)
Intersegment Revenues	1,146				1,463				(317		)		3,864				4,744				(880		)
Total Operating Revenues	1,229				1,576				(347		)		4,220				5,222				(1,002		)
Operating Expenses:
Operation and Maintenance	3,857				4,481				(624		)		15,423				13,401				2,022
Property, Franchise and Other Taxes	135				133				2				505				476				29
Depreciation, Depletion and Amortization	45				136				(91		)		179				679				(500		)
	4,037				4,750				(713		)		16,107				14,556				1,551
Operating Loss	(2,808		)		(3,174		)		366				(11,887		)		(9,334		)		(2,553		)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs	(923		)		(775		)		(148		)		(3,692		)		(3,101		)		(591		)
Interest and Other Income	31,154				37,730				(6,576		)		138,882				127,524				11,358
Interest Expense on Long-Term Debt	(30,161		)		(32,159		)		1,998				(125,373		)		(110,012		)		(15,361		)
Other Interest Expense	(405		)		(1,922		)		1,517				(2,816		)		(6,610		)		3,794
Loss before Income Taxes	(3,143		)		(300		)		(2,843		)		(4,886		)		(1,533		)		(3,353		)
Income Tax Expense (Benefit)	119				900				(781		)		(1,821		)		(77		)		(1,744		)
Net Loss	$	(3,262	)		$	(1,200	)		$	(2,062	)		$	(3,065	)		$	(1,456	)		$	(1,609	)
Net Loss Per Share (Diluted)	$	(0.03	)		$	(0.01	)		$	(0.02	)		$	(0.03	)		$	(0.02	)		$	(0.01	)
	Three Months Ended												Twelve Months Ended
	September 30,												September 30,
INTERSEGMENT ELIMINATIONS	2021				2020				Variance				2021				2020				Variance
Intersegment Revenues	$	(73,572	)		$	(68,347	)		$	(5,225	)		$	(303,552	)		$	(261,450	)		$	(42,102	)
Operating Expenses:
Purchased Gas	(25,789		)		(26,353		)		564				(106,299		)		(109,782		)		3,483
Operation and Maintenance	(47,783		)		(41,994		)		(5,789		)		(197,253		)		(151,668		)		(45,585		)
	(73,572		)		(68,347		)		(5,225		)		(303,552		)		(261,450		)		(42,102		)
Operating Income	—				—				—				—				—				—
Other Income (Expense):
Interest and Other Deductions	(31,130		)		(35,818		)		4,688				(131,758		)		(123,467		)		(8,291		)
Interest Expense	31,130				35,818				(4,688		)		131,758				123,467				8,291
Net Income	$	—			$	—			$	—			$	—			$	—			$	—
Net Income 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
	2021				2020				(Decrease)				2021				2020				(Decrease)
Capital Expenditures:
Exploration and Production(4)	$	117,646		(1)	$	375,466		(2)	$	(257,820	)		$	381,408		(1)(2)	$	670,455		(2)(3)	$	(289,047	)
Pipeline and Storage	96,760			(1)	42,520			(2)	54,240				252,316			(1)(2)	166,652			(2)(3)	85,664
Gathering(5)	9,041			(1)	251,606			(2)	(242,565		)		34,669			(1)(2)	297,806			(2)(3)	(263,137		)
Utility	34,154			(1)	32,034			(2)	2,120				100,845			(1)(2)	94,273			(2)(3)	6,572
Total Reportable Segments	257,601				701,626				(444,025		)		769,238				1,229,186				(459,948		)
All Other	—				2				(2		)		—				39				(39		)
Corporate	231				102				129				450				522				(72		)
Eliminations	2,341				(1,130		)		3,471				223				(1,130		)		1,353
Total Capital Expenditures	$	260,173			$	700,600			$	(440,427	)		$	769,911			$	1,228,617			$	(458,706	)

⁽¹⁾ Capital expenditures for the quarter and year ended September 30, 2021, include accounts payable and accrued liabilities related to 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 have been excluded from the Consolidated Statement of Cash Flows at September 30, 2021, since they represent non-cash investing activities at that date.

⁽²⁾ Capital expenditures for the year ended September 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 year ended September 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 September 30, 2021.

⁽³⁾ Capital expenditures for the year ended September 30, 2020, exclude 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 were in accounts payable and accrued liabilities at September 30, 2019 and paid during the year ended September 30, 2020. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2019, 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, 2020.

⁽⁴⁾ 2020 includes $282.8 million related to the acquisition of upstream assets acquired from Shell, of which $281.7 million is included in Property, Plant and Equipment and $1.1 million is included in Materials, Supplies and Emission Allowances.

⁽⁵⁾ 2020 includes $223.5 million related to the acquisition of midstream gathering assets acquired from Shell, of which $223.4 million is included in Property, Plant and Equipment and $0.1 million is included in Materials, Supplies and Emission Allowances.

DEGREE DAYS
										Percent Colder
										(Warmer) Than:
Three Months Ended September 30,	Normal			2021			2020			Normal (1)			Last Year (1)
Buffalo, NY	162			38			101			(76.5	)		(62.4	)
Erie, PA	124			33			68			(73.4	)		(51.5	)
Twelve Months Ended September 30,
Buffalo, NY	6,617			5,731			6,103			(13.4	)		(6.1	)
Erie, PA	6,147			5,221			5,449			(15.1	)		(4.2	)

⁽¹⁾ Percents compare actual 2021 degree days to normal degree days and actual 2021 degree days to actual 2020 degree days.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
		Three Months Ended												Twelve Months Ended
		September 30,												September 30,
										Increase												Increase
		2021				2020				(Decrease)				2021				2020				(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia		75,871				63,548				12,323				312,300				225,513				86,787
West Coast		420				455				(35		)		1,720				1,889				(169		)
Total Production		76,291				64,003				12,288				314,020				227,402				86,618
Average Prices (Per Mcf)
Appalachia		$	3.14			$	1.63			$	1.51			$	2.46			$	1.75			$	0.71
West Coast		7.93				3.31				4.62				6.34				3.82				2.52
Weighted Average		3.16				1.64				1.52				2.49				1.77				0.72
Weighted Average after Hedging		2.37				1.92				0.45				2.25				2.07				0.18
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia		1				1				—				2				3				(1		)
West Coast		551				555				(4		)		2,233				2,345				(112		)
Total Production		552				556				(4		)		2,235				2,348				(113		)
Average Prices (Per Barrel)
Appalachia		$	66.34			$	31.22			$	35.12			$	48.02			$	45.69			$	2.33
West Coast		71.46				41.22				30.24				60.50				45.94				14.56
Weighted Average		71.45				41.21				30.24				60.49				45.94				14.55
Weighted Average after Hedging		60.04				55.70				4.34				56.54				56.96				(0.42		)
Total Production (MMcfe)		79,603				67,339				12,264				327,430				241,490				85,940
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)		$	0.21			$	0.25			$	(0.04	)		$	0.21			$	0.26			$	(0.05	)
Lease Operating and Transportation Expense per Mcfe (1)(2)		$	0.85			$	0.82			$	0.03			$	0.82			$	0.84			$	(0.02	)
Depreciation, Depletion & Amortization per Mcfe (1)		$	0.57			$	0.65			$	(0.08	)		$	0.56			$	0.71			$	(0.15	)

⁽¹⁾ 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.

⁽²⁾ Amounts include transportation expense of $0.55 and $0.57 per Mcfe for the three months ended September 30, 2021 and September 30, 2020, respectively. Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the twelve months ended September 30, 2021 and September 30, 2020, respectively.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Fiscal 2022		Volume					Average Hedge Price
Oil Swaps
Brent		1,140,000		BBL		$	58.28 / BBL
NYMEX		156,000		BBL		$	51.00 / BBL
Total		1,296,000		BBL		$	57.40 / BBL
Gas Swaps
NYMEX		208,500,000		MMBTU		$	2.75 / MMBTU
No Cost Collars		2,350,000		MMBTU		$	2.28 / MMBTU (Floor) / $2.77 / MMBTU (Ceiling)
Fixed Price Physical Sales		52,309,623		MMBTU		$	2.29 / MMBTU
Total		263,159,623		MMBTU
Hedging Summary for Fiscal 2023		Volume					Average Hedge Price
Oil Swaps
Brent		480,000		BBL		$	58.48 / BBL
Total		480,000		BBL		$	58.48 / BBL
Gas Swaps
NYMEX		116,200,000		MMBTU		$	2.79 / MMBTU
No Cost Collars		17,600,000		MMBTU		$	2.78 / MMBTU (Floor) / $3.19 / MMBTU (Ceiling)
Fixed Price Physical Sales		57,082,943		MMBTU		$	2.23 / MMBTU
Total		190,882,943		MMBTU
Hedging Summary for Fiscal 2024		Volume					Average Hedge Price
Oil Swaps
Brent		120,000		BBL		$	50.30 / BBL
Total		120,000		BBL		$	50.30 / BBL
Gas Swaps
NYMEX		61,080,000		MMBTU		$	2.72 / MMBTU
No Cost Collars		1,600,000		MMBTU		$	2.78 / MMBTU (Floor) / $3.19 / MMBTU (Ceiling)
Fixed Price Physical Sales		42,872,216		MMBTU		$	2.19 / MMBTU
Total		105,552,216		MMBTU
Hedging Summary for Fiscal 2025		Volume					Average Hedge Price
Oil Swaps
Brent		120,000		BBL		$	50.32 / BBL
Total		120,000		BBL		$	50.32 / BBL
Gas Swaps
NYMEX		23,660,000		MMBTU		$	2.74 / MMBTU
Fixed Price Physical Sales		36,520,814		MMBTU		$	2.18 / MMBTU
Total		60,180,814		MMBTU
Hedging Summary for Fiscal 2026		Volume					Average Hedge Price
Gas Swaps
NYMEX		1,720,000		MMBTU		$	2.75 / MMBTU
Fixed Price Physical Sales		27,780,276		MMBTU		$	2.19 / MMBTU
Total		29,500,276		MMBTU
Hedging Summary for Fiscal 2027		Volume					Average Hedge Price
Fixed Price Physical Sales		17,348,882		MMBTU		$	2.22 / MMBTU
Hedging Summary for Fiscal 2028		Volume					Average Hedge Price
Fixed Price Physical Sales		1,400,555		MMBTU		$	2.23 / 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, 2020		3,296,113		28,972		3,325,085
Extensions and Discoveries		689,395		—		689,395
Revisions of Previous Estimates		19,940		3,033		22,973
Production		(312,300	)	(1,720	)	(314,020	)
September 30, 2021		3,693,148		30,285		3,723,433
Proved Developed Reserves:
September 30, 2020		2,744,851		28,972		2,773,823
September 30, 2021		3,061,178		30,285		3,091,463
		Oil Mbbl
		U.S.
		Appalachian		West Coast		Total
		Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2020		12		22,088		22,100
Extensions and Discoveries		—		1,041		1,041
Revisions of Previous Estimates		1		630		631
Production		(2	)	(2,233	)	(2,235	)
September 30, 2021		11		21,526		21,537
Proved Developed Reserves:
September 30, 2020		12		22,088		22,100
September 30, 2021		11		20,932		20,943

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
		2021			2020			(Decrease)			2021			2020			(Decrease)
Firm Transportation - Affiliated		14,916			13,021			1,895			107,206			111,166			(3,960	)
Firm Transportation - Non-Affiliated		168,619			162,727			5,892			663,078			641,607			21,471
Interruptible Transportation		256			857			(601	)		1,460			2,859			(1,399	)
		183,791			176,605			7,186			771,744			755,632			16,112
Gathering Volume - (MMcf)
		Three Months Ended									Twelve Months Ended
		September 30,									September 30,
								Increase									Increase
		2021			2020			(Decrease)			2021			2020			(Decrease)
Gathered Volume		90,750			73,441			17,309			366,033			264,305			101,728
Utility Throughput - (MMcf)
		Three Months Ended									Twelve Months Ended
		September 30,									September 30,
								Increase									Increase
		2021			2020			(Decrease)			2021			2020			(Decrease)
Retail Sales:
Residential Sales		3,797			4,033			(236	)		61,038			60,977			61
Commercial Sales		535			503			32			8,741			8,798			(57	)
Industrial Sales		33			31			2			475			537			(62	)
		4,365			4,567			(202	)		70,254			70,312			(58	)
Transportation		10,197			9,040			1,157			66,012			68,272			(2,260	)
		14,562			13,607			955			136,266			138,584			(2,318	)

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 twelve months ended September 30, 2021 and 2020:

		Three Months Ended								Twelve Months Ended
		September 30,								September 30,
(in thousands except per share amounts)		2021				2020				2021				2020
Reported GAAP Earnings		$	86,962			$	(145,545	)		$	363,647			$	(123,772	)
Items impacting comparability:
Impairment of oil and gas properties (E&P)		—				253,441				76,152				449,438
Tax impact of impairment of oil and gas properties		—				(69,698		)		(20,980		)		(123,187		)
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		)		—
Deferred tax valuation allowance		—				—				—				56,770
Unrealized (gain) loss on other investments (Corporate/All Other)		395				(2,439		)		(181		)		(1,645		)
Tax impact of unrealized (gain) loss on other investments		(83		)		512				38				345
Adjusted Operating Results		$	87,274			$	36,271			$	393,073			$	257,949
Reported GAAP Earnings Per Share		$	0.95			$	(1.60	)		$	3.97			$	(1.41	)
Items impacting comparability:
Impairment of oil and gas properties, net of tax (E&P)		—				2.02				0.60				3.71
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				—
Deferred tax valuation allowance		—				—				—				0.65
Unrealized (gain) loss on other investments, net of tax (Corporate/All Other)		—				(0.02		)		—				(0.01		)
Earnings per share impact of diluted shares		—				—				—				(0.02		)
Adjusted Operating Results Per Share		$	0.95			$	0.40			$	4.29			$	2.92

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, 2021 and 2020:

		Three Months Ended								Twelve Months Ended
		September 30,								September 30,
(in thousands)		2021				2020				2021				2020
Reported GAAP Earnings		$	86,962			$	(145,545	)		$	363,647			$	(123,772	)
Depreciation, Depletion and Amortization		83,671				80,097				335,303				306,158
Other (Income) Deductions		160				(159		)		15,238				17,814
Interest Expense		30,431				34,361				146,357				117,077
Income Taxes		14,720				(62,636		)		114,682				18,739
Impairment of Oil and Gas Producing Properties		—				253,441				76,152				449,438
Gain on Sale of Timber Properties		—				—				(51,066		)		—
Adjusted EBITDA		$	215,944			$	159,559			$	1,000,313			$	785,454
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA		$	49,131			$	46,966			$	218,921			$	189,520
Gathering Adjusted EBITDA		37,858				33,062				159,005				119,879
Total Midstream Businesses Adjusted EBITDA		86,989				80,028				377,926				309,399
Exploration and Production Adjusted EBITDA		120,588				75,439				464,529				312,166
Utility Adjusted EBITDA		11,093				8,550				171,379				171,418
Corporate and All Other Adjusted EBITDA		(2,726		)		(4,458		)		(13,521		)		(7,529		)
Total Adjusted EBITDA		$	215,944			$	159,559			$	1,000,313			$	785,454

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)		2021				2020				2021				2020
Exploration and Production Segment
Reported GAAP Earnings		$	55,703			$	(169,171	)		$	101,916			$	(326,904	)
Depreciation, Depletion and Amortization		45,135				43,467				182,492				172,124
Other (Income) Deductions		254				280				937				882
Interest Expense		11,942				15,555				69,662				58,098
Income Taxes		7,554				(68,133		)		33,370				(41,472		)
Impairment of Oil and Gas Producing Properties		—				253,441				76,152				449,438
Adjusted EBITDA		$	120,588			$	75,439			$	464,529			$	312,166
Pipeline and Storage Segment
Reported GAAP Earnings		$	21,482			$	16,045			$	92,542			$	78,860
Depreciation, Depletion and Amortization		15,626				14,638				62,431				53,951
Other (Income) Deductions		(2,305		)		(307		)		(5,840		)		(4,635		)
Interest Expense		9,623				10,695				40,976				32,731
Income Taxes		4,705				5,895				28,812				28,613
Adjusted EBITDA		$	49,131			$	46,966			$	218,921			$	189,520
Gathering Segment
Reported GAAP Earnings		$	18,597			$	17,550			$	80,274			$	68,631
Depreciation, Depletion and Amortization		8,219				6,785				32,350				22,440
Other (Income) Deductions		62				(275		)		12				(260		)
Interest Expense		4,093				4,115				17,493				10,877
Income Taxes		6,887				4,887				28,876				18,191
Adjusted EBITDA		$	37,858			$	33,062			$	159,005			$	119,879
Utility Segment
Reported GAAP Earnings		$	(5,587	)		$	(6,969	)		$	54,335			$	57,366
Depreciation, Depletion and Amortization		14,646				14,007				57,457				55,248
Other (Income) Deductions		1,252				1,412				23,785				23,380
Interest Expense		5,337				5,720				21,795				22,150
Income Taxes		(4,555		)		(5,620		)		14,007				13,274
Adjusted EBITDA		$	11,093			$	8,550			$	171,379			$	171,418
Corporate and All Other
Reported GAAP Earnings		$	(3,233	)		$	(3,000	)		$	34,580			$	(1,725	)
Depreciation, Depletion and Amortization		45				1,200				573				2,395
Gain on Sale of Timber Properties		—				—				(51,066		)		—
Other (Income) Deductions		897				(1,269		)		(3,656		)		(1,553		)
Interest Expense		(564		)		(1,724		)		(3,569		)		(6,779		)
Income Taxes		129				335				9,617				133
Adjusted EBITDA		$	(2,726	)		$	(4,458	)		$	(13,521	)		$	(7,529	)

Management defines free cash flow as funds from operations 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.