National Fuel Reports Third Quarter Earnings and Announces Preliminary Guidance For Fiscal 2023

WILLIAMSVILLE, N.Y., Aug. 04, 2022 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2022 fiscal year and for the nine months ended June 30, 2022.

FISCAL 2022 THIRD QUARTER SUMMARY

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

MANAGEMENT COMMENTS

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

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

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

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

DISCUSSION OF GUIDANCE UPDATE

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

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

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

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

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

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

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

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

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

DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT

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

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

Upstream Business

Exploration and Production Segment

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

	Three Months Ended
	June 30,
(in thousands)		2022				2021		Variance
GAAP Earnings	$	56,497			$	39,015		$	17,482
Gain on sale of West Coast assets, net of tax		(9,511	)			—			(9,511	)
Loss from discontinuance of crude oil cash flow hedges, net of tax		33,329				—			33,329
Transaction and severance costs related to West Coast asset sale, net of tax		7,238				—			7,238
Adjusted Operating Results	$	87,553			$	39,015		$	48,538
Adjusted EBITDA	$	184,622			$	116,052		$	68,570

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

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

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

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

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

Midstream Businesses

Pipeline and Storage Segment

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

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

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

Gathering Segment

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

	Three Months Ended
	June 30,
(in thousands)		2022			2021		Variance
GAAP Earnings	$	24,658		$	20,427		$	4,231
Adjusted EBITDA	$	46,151		$	39,929		$	6,222

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

Downstream Business

Utility Segment

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

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

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

Corporate and All Other

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

EARNINGS TELECONFERENCE

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

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

Analyst Contact:	Brandon J. Haspett	716-857-7697
Media Contact:	Karen L. Merkel	716-857-7654

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

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

The revised earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the nine months ended June 30, 2022, including: (1) the after-tax gain on the sale of West Coast assets, which increased earnings by $0.10 per share; (2) the after-tax loss from the discontinuance of crude oil cash flow hedges, which reduced earnings by $0.36 per share; (3) after-tax transaction and severance costs related to the West Coast asset sale, which reduced earnings by $0.08 per share; (4) the after-tax reduction of an other post-retirement regulatory liability, which increased earnings by $0.16 per share; and (5) after-tax unrealized losses on other investments, which reduced earnings by $0.08 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the three months ending September 30, 2022, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	Updated FY 2022 Guidance		Preliminary FY 2023 Guidance
Consolidated Earnings per Share, excluding items impacting comparability	$5.85 to $5.95		$7.25 to $7.75
Consolidated Effective Tax Rate	~ 25 - 25.5%		~ 25.5 - 26%
Capital Expenditures (Millions)
Exploration and Production	$525 - $550		$525 - $575
Pipeline and Storage	$100 - $120		$110 - $130
Gathering	$50 - $60		$85 - $105
Utility	$100 - $110		$110 - $130
Consolidated Capital Expenditures	$775 - $840		$830 - $940
Exploration & Production Segment Guidance*
Commodity Price Assumptions
NYMEX natural gas price (Oct - Mar | Apr - Sep)	$7.75 /MMBtu		$7.50 /MMBtu l $5.00 /MMBtu
Appalachian basin spot price (Oct - Mar | Apr - Sep)	$7.20 /MMBtu		$6.50 /MMBtu l $3.90 /MMBtu
Production (Bcfe)	350 to 355		370 to 390
E&P Operating Costs ($/Mcfe)
LOE	$0.70 - $0.71		$0.67 - $0.69
G&A	~$0.18		$0.17 - $0.19
DD&A	$0.57 - $0.59		$0.60 - $0.64
Other Business Segment Guidance (Millions)
Gathering Segment Revenues	$210 - $220		$235 - $250
Pipeline and Storage Segment Revenues	$365 - $375		$360 - $380

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

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

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

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

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

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

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

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

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

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

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

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

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

⁽¹⁾ Capital expenditures for the quarter and nine months ended June 30, 2022, include accounts payable and accrued liabilities related to capital expenditures of $62.0 million, $5.2 million, $2.5 million, and $4.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2022, since they represent non-cash investing activities at that date.

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

⁽³⁾ Capital expenditures for the quarter and nine months ended June 30, 2021, include accounts payable and accrued liabilities related to capital expenditures of $49.7 million, $25.8 million, $0.9 million, and $5.1 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2021, since they represent non-cash investing activities at that date.

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

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

⁽¹⁾ Percents compare actual 2022 degree days to normal degree days and actual 2022 degree days to actual 2021 degree days.

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

⁽¹⁾ Weighted average oil price after hedging for the three and nine months ended June 30, 2022 excludes a loss on discontinuance of crude oil cash flow hedges of $44,632.

⁽²⁾ Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. General and Administrative Expense per Mcfe for the three and nine months ended June 30, 2022 excludes transaction and severance costs related to the California asset sale.

⁽³⁾ Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the three months ended June 30, 2022 and June 30, 2021, respectively. Amounts include transportation expense of $0.56 and $0.57 per Mcfe for the nine months ended June 30, 2022 and June 30, 2021, respectively.

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

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

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

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

Management defines Adjusted Operating Results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the three and nine months ended June 30, 2022 and 2021:

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

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES (Continued)

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

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

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

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

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