NFG National Fuel Gas Co

National Fuel Gas Company (�National Fuel� or the �Company�) (NYSE:NFG) today announced consolidated earnings for the second quarter of fiscal 2009 and for the six-months ended March 31, 2009.

HIGHLIGHTS

• Reported GAAP earnings for the second quarter were $73.5 million or $0.92 per share, a decrease of $21.5 million, or $0.19 per share from the second quarter of 2008. Lower average commodity prices realized in the Exploration and Production segment were the main drivers of the decrease in earnings.
• Quarterly operating results before items impacting comparability (�Operating Results�) were $73.5 million or $0.92 per share, a decrease of $20.9 million, or $0.18 per share, from the prior year�s second quarter.
• Appalachian production increased nearly 7 percent and California production increased 7.5 percent during the quarter. Continuing curtailments in the Gulf of Mexico caused by Hurricane Ike caused a decrease in production in the Gulf Division. All pre-hurricane production is currently back on line. Total forecast production for the entire 2009 fiscal year remains in the previously announced range between 38 and 44 Bcfe.
• The Company is revising its GAAP earnings guidance range for fiscal 2009 to a range of $0.95 to $1.10 per share. The previous guidance range had been $1.10 to $1.30 per share. The revised guidance includes the ceiling test impairment charge recorded in the first quarter, and a revised natural gas NYMEX equivalent price of $3.50 per million British thermal units (�MMBtu�) for unhedged production for the remainder of the fiscal year. The pricing assumption for unhedged crude oil remains at $45.00 per barrel.
• A conference call is scheduled for Friday, May 1, 2009, at 11:00 a.m. Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chief Executive Officer and President of National Fuel Gas Company stated: �During our second quarter, the steady and predictable performance of our regulated businesses kept our Company on course despite the impact of the negative commodity price environment on our Exploration and Production segment. The consistent earnings from the Pipeline and Utility businesses support our commitment to a strong dividend to benefit our shareholders. In addition we are able to continue to invest in infrastructure projects and resource development that position the Company for future growth.

�In order to protect the Company against the uncertainties in the financial markets making daily news, earlier this month the Company issued $250 million of 10 year long-term debt. While the debt rates were higher this year than last, the strong demand for the notes issued by the Company is a vote of confidence in the Company by the financial markets.�

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended March 31, 2009, of $73.5 million or $0.92 per share, a decrease of $21.5 million, or $0.19 per share, from the prior year�s second quarter of $95.0 million or $1.11 per share. The per share amounts reflect a lower number of shares outstanding in the current quarter resulting mainly from the impact of the Company�s repurchase of approximately 5.2 million shares of National Fuel common stock in the prior fiscal year. (note: all references to earnings per share are to diluted earnings per share, all amounts are stated in U.S. dollars and all amounts used in the earnings and Operating Results discussions are after tax, unless otherwise noted.)

Consolidated earnings for the six months ended March 31, 2009, of $30.8 million, or $0.38 per share, decreased $134.8 million, or $1.55 per share, from the same period in the prior year, where earnings were $165.6 million, or $1.93 per share.

� Three Months � Six Months Ended March 31, Ended March 31, 2009 � 2008 2009 � 2008 (in thousands except per share amounts) Reported GAAP earnings $ 73,484 $ 95,004 $ 30,806 $ 165,608 Items impacting comparability1: Gain on sale of turbine (586 ) (586 ) Impairment of oil and gas producing properties 108,207 Impairment of investment in partnership 1,085 Gain on life insurance proceeds (2,312 ) � � � � Operating Results $ 73,484 $ 94,418 � $ 137,786 � $ 165,022 � � Reported GAAP earnings per share $ 0.92 $ 1.11 $ 0.38 $ 1.93 Items impacting comparability1: Gain on sale of turbine (0.01 ) (0.01 ) Impairment of oil and gas producing properties 1.35 Impairment of investment in partnership 0.01 Gain on life insurance proceeds (0.03 ) � � � � Earnings excluding these items $ 0.92 $ 1.10 � $ 1.71 � $ 1.92 �

1 See discussion of these individual items below.

As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company�s financial results when comparing the quarter and six months ended March 31, 2009, to the comparable periods in fiscal 2008. Excluding these items, Operating Results for the current second quarter of $73.5 million, or $0.92 per share, decreased $20.9 million, or $0.18 per share from the previous year�s second quarter. Excluding these items, Operating Results for the six months ended March 31, 2009 of $137.8 million, or $1.71 per share, decreased $27.2 million, or $0.21 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

(The following discussion of earnings for each segment is summarized in a tabular form at the end of this report. It may be helpful to refer to those tables while reviewing this discussion.)

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (�Seneca�). Seneca explores for, develops and purchases natural gas and oil reserves in California, in the Appalachian region, and in the Gulf of Mexico.

The Exploration and Production segment�s earnings in the second quarter of fiscal 2009 of $18.1 million, or $0.23 per share, decreased $16.5 million, or $0.17 per share, when compared with the prior year�s second quarter. The decrease was primarily due to lower crude oil and natural gas prices realized after hedging and lower natural gas production in the Gulf of Mexico. For the quarter ended March 31, 2009, the weighted average oil price received by Seneca (after hedging) was $56.39 per barrel (�Bbl�), a decrease of $22.15 per Bbl from the prior year�s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2009, was $7.53 per thousand cubic feet (�Mcf�), a decrease of $1.68 per Mcf.

In the first quarter of fiscal 2009 Seneca recorded a non-cash charge of $108.2 million to write down the value of its oil and natural gas producing properties. Seneca uses the full cost method of accounting for determining the book value of its oil and natural gas properties. This accounting method requires that Seneca perform a quarterly �ceiling test� to compare the present value of future revenues from its oil and natural gas reserves based on period end spot prices (the �ceiling�) with the book value of those reserves at the balance sheet date. If the book value of the reserves exceeds the ceiling calculation, a non-cash charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling. The impairment was mainly driven by a significant decrease in commodity prices.

In the second quarter of fiscal 2009, despite a decrease in natural gas spot prices at March 31, 2009, compared to December 31, 2008, Seneca�s quarterly �ceiling test� indicated that the book value of the reserves did not exceed the ceiling and it was not necessary to record an impairment charge. An increase in crude oil prices combined with the decrease in the basis differential between prices at Cushing, Oklahoma, for West Texas Intermediate oil and prices for Seneca�s California oil at March 31, 2009, were the main drivers of the increase in the ceiling calculation.

Overall crude oil and natural gas production for the quarter was 10.1 Bcfe. Production increased in California and the Appalachian region by nearly 8 percent and 7 percent, respectively, compared to the prior year�s second quarter. Continuing curtailments from third party pipelines damaged by Hurricane Ike caused production in the Gulf of Mexico to decrease 0.7 Bcfe.

Other items impacting earnings for the quarter were lower depletion and lease operating expenses (�LOE�) and higher other operating expenses. The decrease in depletion expense was due to an increase in proved reserves and a lower depletable base resulting from the ceiling test impairment recorded in the first quarter of fiscal 2009 described above. The decrease in LOE is due to lower steaming costs in California, lower workover expenses and the continued shut-in of certain properties related to Hurricane Ike in the Gulf of Mexico. The increase in other operating expenses is due to a bad debt charge and recognition of actual plugging costs in excess of amounts previously accrued. Earnings also benefited from the positive impact of period-to-period changes in the mark-to-market adjustments to recognize hedge ineffectiveness on certain derivative financial instruments used to hedge prices on Seneca�s oil and gas production.

The Exploration and Production segment�s loss of $65.5 million, or $0.82 per share, for the six months ended March 31, 2009, compares to earnings of $68.6 million, or $0.80 per share, for the six months ended March 31, 2008. The decrease was mainly due to the non-cash charge of $108.2 million to write down the value of Seneca�s oil and natural gas producing properties in the first quarter of the current fiscal year, as explained earlier in this release.

Excluding the impact of the ceiling test charge in the first quarter of fiscal 2009, Operating Results for the six months ended March 31, 2009, of $42.8 million or $0.53 per share decreased $25.8 million, or $0.27 per share, from the prior year. The decrease was primarily due to lower crude oil and natural gas prices realized after hedging and was also impacted by lower production, primarily in the Gulf of Mexico. For the six months ended March 31, 2009, the weighted average oil price received by Seneca (after hedging) was $60.36 per Bbl, a decrease of $15.08 per Bbl from the prior year�s six month period. The weighted average natural gas price received by Seneca (after hedging) for the six months ended March 31, 2009, was $8.18 per Mcf, a decrease of $0.37 per Mcf.

Overall production for the six months ended March 31, 2009, was 19.7 Bcfe, a decrease of 1.4 Bcfe compared to the prior year�s six month period. The decrease was primarily in the Gulf Division as a result of continuing curtailments due to Hurricane Ike.

Other items impacting Operating Results for the six months ended March 31, 2009, were lower depletion and LOE and higher other operating expenses. The decrease in depletion expense was mainly due to the increase in proved reserves and a lower depletable base resulting from the ceiling test impairment recorded in the first quarter of fiscal 2009 described above. The increase in other operating expenses is due to a bad debt charge and recognition of actual plugging costs in excess of amounts previously accrued. Operating Results also benefited from the positive impact of period-to-period changes in the mark-to-market adjustments to recognize hedge ineffectiveness on certain derivative financial instruments used to hedge prices on Seneca�s oil and gas production.

The Exploration and Production segment continued to evaluate and develop the Company�s significant Marcellus shale acreage position. Seneca participated in two horizontal wells operated by joint-venture partner, EOG, in the second quarter, one of which was fracture stimulated this week. Additionally, a Seneca-operated vertical drilling program was initiated in February and Seneca is currently drilling its fourth vertical Marcellus Shale well. Seneca has contracted a new horizontal rig, which is expected to arrive in July to begin drilling Seneca�s horizontal Marcellus Shale development program.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (�Supply Corporation�) and Empire Pipeline, Inc. (�Empire�). These companies provide 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 western Pennsylvania.

The Pipeline and Storage segment�s earnings of $15.2 million, for the quarter ended March 31, 2009, were essentially flat when compared with the same period in the prior fiscal year. Supply Corporation�s earnings decreased by $2.2 million primarily due to lower efficiency gas revenues, mainly the result of lower commodity prices. An increase in Empire�s earnings as a result of the Empire Connector that was placed in service in mid December 2008 mostly offset the decrease in Supply�s earnings.

The Pipeline and Storage segment�s earnings of $32.4 million, for the six months ended March 31, 2009, increased $4.0 million when compared with the six months ended March 31, 2008. The increase is due to higher transportation and storage revenues, mainly the result of incremental revenue from the Empire Connector that was placed in service in mid December 2008 and the addition of several new contracts for firm transportation services. Higher AFUDC related to the construction of the Empire Connector also contributed to the increase in earnings for the current six month period. Partially offsetting the increased earning were lower efficiency gas revenues mainly due to lower natural gas prices, higher depreciation expense and higher interest expense during the current six month period.

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. The Utility segment�s earnings of $32.8 million, or $0.41 per share, for the quarter ended March 31, 2009, compares to earnings of $34.2 million, or $0.40 per share, for the quarter ended March 31, 2008.

In the New York Division, earnings decreased $0.7 million. The decrease is primarily due to the impact of certain regulatory adjustments and higher interest expense. Higher bad debt expense was offset by lower other operating expenses. In the Pennsylvania Division, earnings decreased $0.7 million due to higher bad debt expense. The positive impact on earnings of colder weather during the current quarter was offset by lower customer usage due to customer conservation efforts.

The Utility segment�s earnings of $54.9 million for the six months ended March 31, 2009, increased from earnings of $54.4 million for the six months ended March 31, 2008. Earnings in Distribution�s New York Division for the six months ended March 31, 2009, of $36.5 million increased $0.6 million compared to the prior year. Lower operating expenses, property taxes and interest expense more than offset the impact of lower margins in the first quarter of fiscal 2009 primarily as a result of the rate design change approved by the New York State Public Service Commission�s December 28, 2007, rate order.

For the six months ended March 31, 2009, earnings in Distribution�s Pennsylvania Division of $18.4 million were flat compared to the prior year. The positive impact of colder weather and lower interest expense was offset by lower customer usage per account and higher bad debt expense.

Energy Marketing

National Fuel Resources, Inc. (�NFR�) comprises the Company�s Energy Marketing segment. NFR markets natural gas to industrial, wholesale, commercial, public authority and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.

The Energy Marketing segment�s earnings for the quarter ended March 31, 2009, of $5.6 million were flat compared to the second quarter of last year. Higher margins mainly due to increased volumes were offset by higher operating expenses and higher state income taxes.

Earnings for the six months ended March 31, 2009, in the Energy Marketing segment of $6.2 million decreased $0.4 million compared to the prior year. Higher operating expenses and state income taxes offset an increase in margin.

Corporate and All Other

Other active, wholly owned subsidiaries of the Company include Highland Forest Resources, Inc., a corporation that markets high quality hardwoods from New York and Pennsylvania land holdings; Horizon LFG, Inc., a corporation engaged, through subsidiaries, in the purchase, processing, transportation and sale of landfill gas; and Horizon Power, Inc., a corporation that develops and owns independent electric generation facilities that are fueled by natural gas or landfill gas.

Earnings in the Corporate and All Other category for the quarter ended March 31, 2009, were $1.8 million, a decrease of $3.2 million compared to the prior year�s second quarter earnings of $5.0 million. The comparability of the quarterly results is impacted by a $0.6 million gain in the second quarter of fiscal 2008 related to the sale of a gas-powered turbine that the Company had previously planned to use in the development of a co-generation plant. Excluding this item, Operating Results for the quarter decreased $2.6 million. Lower margins from the timber operations as a result of decreased sales volumes and prices, lower margins in the landfill gas operations and lower interest income contributed to the decrease in Operating Results. Lower corporate operating expenses and lower income taxes partially offset the decrease in Operating Results. Operating expenses related to a proxy contest in the prior year did not recur in fiscal 2009.

Earnings in the Corporate and All Other category for the six months ended March 31, 2009, were $2.8 million, a decrease of $4.8 million when compared to the prior year�s earnings. The comparability of the results for the six months ended March 31, 2009, is impacted by the $0.6 million gain on the sale of the turbine described above, a $2.3 million gain recognized on executive life insurance policies and a $1.1 million impairment in the value of Horizon Power�s 50 percent investment in Energy Systems North East, LLC, a partnership that owns an 80-megawatt combined cycle, natural gas-fired power plant in the town of North East, Pennsylvania. Excluding these items, Operating Results decreased $5.5 million. Lower margins from the timber operations as a result of decreased sales volumes and prices, lower margins in the landfill gas operations and a decrease in income from unconsolidated subsidiaries contributed to the decrease in Operating Results. Lower corporate operating expenses related to the proxy contest noted above and lower income taxes partially offset the decrease in Operating Results.

EARNINGS GUIDANCE

The Company is revising its earnings guidance for fiscal 2009 to reflect actual results for the six months ended March 31, 2009, as well as a change in pricing assumptions for unhedged natural gas for the remainder of the fiscal year. The revised GAAP earnings range is $0.95 to $1.10 per share. The previous guidance range had been $1.10 to $1.30 per share. The revised guidance includes the impairment charge recorded in the first quarter, forecasted oil and gas production for fiscal 2009 for the Exploration and Production segment in a range between 38 and 44 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential of $3.50 per MMBtu for natural gas and $45.00 per Bbl for crude oil. The main driver for the reduction in the earnings guidance range is the decrease in the natural gas pricing assumption to $3.50 per MMBtu from the previous assumption of $5.50 per MMBtu.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 1, 2009, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel�s Web site at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-713-8567, and using the passcode �31616911.� For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. (Eastern Time) at the same Web site link and by phone at (toll free) 888-286-8010 using passcode �32497080.� Both the webcast and telephonic replay will be available until the close of business on Friday, May 8, 2009.

National Fuel is an integrated energy company with $4.2 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words �anticipates,� �estimates,� �expects,� �forecasts,� �intends,� �plans,� �predicts,� �projects,� �believes,� �seeks,� �will,� �may� and similar expressions, 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: financial and economic conditions, including the availability of credit, and their effect on the Company�s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments; occurrences affecting the Company�s ability to obtain financing under credit lines or other credit facilities or through the issuance of commercial paper, other short-term notes or debt or equity securities, including any downgrades in the Company�s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers� ability to pay for, the Company�s products and services; the creditworthiness or performance of the Company�s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from terrorist activities, acts of war, major accidents, fires, hurricanes, other severe weather, pest infestation or other natural disasters; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company�s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company�s natural gas and oil reserves; impairments under the SEC�s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and gas reserve estimates; 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, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, and the need to obtain governmental approvals and permits and comply with environmental laws and regulations; significant differences between the Company�s projected and actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between oil having different quality and/or different geographic locations, or changes in the price differentials between natural gas having different heating values and/or different geographic locations; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant differences between the Company�s projected and actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company�s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS QUARTER ENDED MARCH 31, 2009 � � � � � � Exploration & Pipeline & Energy Corporate / (Thousands of Dollars) Production � Storage � Utility � Marketing � All Other � Consolidated � Second quarter 2008 GAAP earnings $ 34,572 $ 15,618 $ 34,164 $ 5,647 $ 5,003 $ 95,004 Items impacting comparability: Gain on sale of turbine � � � � � � � � � (586 ) � � (586 ) Second quarter 2008 operating results 34,572 15,618 34,164 5,647 4,417 94,418 � Drivers of operating results Higher (lower) crude oil prices (11,894 ) (11,894 ) Higher (lower) natural gas prices (5,606 ) (5,606 ) Higher (lower) natural gas production (4,042 ) (4,042 ) Higher (lower) crude oil production 3,617 3,617 Derivative mark to market adjustment 1,155 1,155 Lower (higher) lease operating expenses 1,633 1,633 � Higher (lower) transportation and storage revenues 4,417 4,417 Higher (lower) efficiency gas revenues (3,157 ) (3,157 ) Lower (higher) operating expenses (1,764 ) 462 (162 ) 1,586 122 Lower (higher) depreciation / depletion 1,470 (1,064 ) 406 � Usage (1,657 ) (1,657 ) Colder weather in Pennsylvania 1,338 1,338 Regulatory true-up adjustments (527 ) (527 ) � Higher (lower) margins 369 (4,990 ) (4,621 ) � Higher (lower) AFUDC * (501 ) (501 ) Higher (lower) interest income (1,732 ) 204 (946 ) (2,474 ) (Higher) lower interest expense 1,521 (1,313 ) 408 (23 ) 593 � (Higher) lower income tax expense (239 ) 1,648 1,409 � All other / rounding � (823 ) � � 520 � � � (907 ) � � (36 ) � � 101 � � � (1,145 ) � Second quarter 2009 GAAP earnings $ 18,107 � � $ 15,186 � � $ 32,819 � � $ 5,579 � � $ 1,793 � � $ 73,484 � � * AFUDC = Allowance for Funds Used During Construction NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE QUARTER ENDED MARCH 31, 2009 � � � � � � Exploration & Pipeline & Energy Corporate / Production � Storage � Utility � Marketing � All Other � Consolidated � Second quarter 2008 GAAP earnings $ 0.40 $ 0.18 $ 0.40 $ 0.07 $ 0.06 $ 1.11 Items impacting comparability: Gain on sale of turbine � � � � � � � � � (0.01 ) � � (0.01 ) Second quarter 2008 operating results 0.40 0.18 0.40 0.07 0.05 1.10 � Drivers of operating results Higher (lower) crude oil prices (0.15 ) (0.15 ) Higher (lower) natural gas prices (0.07 ) (0.07 ) Higher (lower) natural gas production (0.05 ) (0.05 ) Higher (lower) crude oil production 0.05 0.05 Derivative mark to market adjustment 0.01 0.01 Lower (higher) lease operating expenses 0.02 0.02 � Higher (lower) transportation and storage revenues 0.06 0.06 Higher (lower) efficiency gas revenues (0.04 ) (0.04 ) Lower (higher) operating expenses (0.02 ) 0.01 - 0.02 0.01 Lower (higher) depreciation / depletion 0.02 (0.01 ) 0.01 � Usage (0.02 ) (0.02 ) Colder weather in Pennsylvania 0.02 0.02 Regulatory true-up adjustments (0.01 ) (0.01 ) � Higher (lower) margins - (0.06 ) (0.06 ) � Higher AFUDC * (0.01 ) (0.01 ) Higher (lower) interest income (0.02 ) - (0.01 ) (0.03 ) (Higher) lower interest expense 0.02 (0.02 ) 0.01 - 0.01 � (Higher) lower income tax expense - 0.02 0.02 � All other / rounding � 0.02 � � � 0.02 � � � 0.01 � � � � � - � � � 0.05 � � Second quarter 2009 GAAP earnings $ 0.23 � � $ 0.19 � � $ 0.41 � � $ 0.07 � $ 0.02 � � $ 0.92 � � * AFUDC = Allowance for Funds Used During Construction NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS SIX MONTHS ENDED MARCH 31, 2009 � � � � � � Exploration & Pipeline & Energy Corporate / (Thousands of Dollars) Production � Storage � Utility � Marketing � All Other � Consolidated � Six months ended March 31, 2008 GAAP earnings $ 68,594 $ 28,397 $ 54,380 $ 6,602 $ 7,635 $ 165,608 Items impacting comparability: Gain on sale of turbine � � � � � � � � � (586 ) � � (586 ) Six months ended March 31, 2008 operating results 68,594 28,397 54,380 6,602 7,049 165,022 � Drivers of operating results Higher (lower) crude oil prices (16,185 ) (16,185 ) Higher (lower) natural gas prices (2,394 ) (2,394 ) Higher (lower) natural gas production (10,156 ) (10,156 ) Higher (lower) crude oil production 3,637 3,637 Derivative mark to market adjustment 1,343 1,343 Lower (higher) lease operating expenses 308 308 � Higher (lower) transportation and storage revenues 5,636 5,636 Higher (lower) efficiency gas revenues (1,850 ) (1,850 ) Lower (higher) operating expenses (3,329 ) 362 1,216 (241 ) 2,602 610 Lower (higher) depreciation / depletion 2,056 (898 ) 1,158 � Usage (1,459 ) (1,459 ) Colder weather in Pennsylvania 2,161 2,161 Regulatory true-up adjustments (422 ) (422 ) � Higher (lower) margins (1,419 ) 216 (6,653 ) (7,856 ) � Higher (lower) income from unconsolidated subsidiaries (876 ) (876 ) � Higher AFUDC * 1,597 1,597 Higher (lower) interest income (3,357 ) 151 (2,166 ) (5,372 ) Lower (higher) interest expense 3,036 (1,713 ) 1,178 (567 ) 1,934 � (Higher) lower income tax expense (307 ) 2,673 2,366 � All other / rounding � (796 ) � � 680 � � � (728 ) � � (92 ) � � (480 ) � � (1,416 ) � Six months ended March 31, 2009 operating results 42,757 32,362 54,907 6,178 1,582 137,786 Items impacting comparability: Gain on life insurance policies 2,312 2,312 Impairment of investment in partnership (1,085 ) (1,085 ) Impairment of oil and gas properties � (108,207 ) � � � � � � � � � � (108,207 ) Six months ended March 31, 2009 GAAP earnings $ (65,450 ) � $ 32,362 � � $ 54,907 � � $ 6,178 � � $ 2,809 � � $ 30,806 � � * AFUDC = Allowance for Funds Used During Construction NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE SIX MONTHS ENDED MARCH 31, 2009 � � � � � � Exploration & Pipeline & Energy Corporate / Production � Storage � Utility � Marketing � All Other � Consolidated � Six months ended March 31, 2008 GAAP earnings $ 0.80 $ 0.33 $ 0.64 $ 0.07 $ 0.09 $ 1.93 Items impacting comparability: Gain on sale of turbine � � � � � � � � � (0.01 ) � � (0.01 ) Six months ended March 31, 2008 operating results 0.80 0.33 0.64 0.07 0.08 1.92 � Drivers of operating results Higher (lower) crude oil prices (0.20 ) (0.20 ) Higher (lower) natural gas prices (0.03 ) (0.03 ) Higher (lower) natural gas production (0.13 ) (0.13 ) Higher (lower) crude oil production 0.05 0.05 Derivative mark to market adjustment 0.02 0.02 Lower (higher) lease operating expenses - - � Higher (lower) transportation and storage revenues 0.07 0.07 Higher (lower) efficiency gas revenues (0.02 ) (0.02 ) Lower (higher) operating expenses (0.04 ) - 0.02 - 0.03 0.01 Lower (higher) depreciation / depletion 0.03 (0.01 ) 0.02 � Usage (0.02 ) (0.02 ) Colder weather in Pennsylvania 0.03 0.03 Regulatory true-up adjustments (0.01 ) (0.01 ) � Higher (lower) margins (0.02 ) - (0.08 ) (0.10 ) � Higher (lower) income from unconsolidated subsidiaries (0.01 ) (0.01 ) � Higher AFUDC * 0.02 0.02 Higher (lower) interest income (0.04 ) - (0.03 ) (0.07 ) Lower (higher) interest expense 0.04 (0.02 ) 0.01 (0.01 ) 0.02 � (Higher) lower income tax expense - 0.03 0.03 � All other / rounding � 0.03 � � � 0.03 � � � 0.03 � � � 0.01 � � 0.01 � � � 0.11 � Six months ended March 31, 2009 operating results 0.53 0.40 0.68 0.08 0.02 1.71 Items impacting comparability: Gain on life insurance policies 0.03 0.03 Impairment of investment in partnership (0.01 ) (0.01 ) Impairment of oil and gas properties � (1.35 ) � � � � � � � � � � (1.35 ) Six months ended March 31, 2009 GAAP earnings $ (0.82 ) � $ 0.40 � � $ 0.68 � � $ 0.08 � $ 0.04 � � $ 0.38 � � * AFUDC = Allowance for Funds Used During Construction NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � (Thousands of Dollars, except per share amounts) Three Months Ended Six Months Ended March 31, March 31, (Unaudited) (Unaudited)

SUMMARY OF OPERATIONS

2009 2008 2009 2008 Operating Revenues $ 804,645 � $ 885,853 � $ 1,411,808 � $ 1,454,121 � � Operating Expenses: Purchased Gas 485,468 531,438 814,201 809,448 Operation and Maintenance 118,449 120,584 219,784 223,040 Property, Franchise and Other Taxes 20,372 21,398 39,134 39,070 Depreciation, Depletion and Amortization 41,714 42,412 84,056 86,533 Impairment of Oil and Gas Producing Properties � - � � - � � 182,811 � � - � 666,003 715,832 1,339,986 1,158,091 � Operating Income 138,642 170,021 71,822 296,030 � Other Income (Expense): Income from Unconsolidated Subsidiaries 974 1,030 288 3,305 Other Income 468 2,080 5,795 3,334 Interest Income 1,005 2,177 2,898 5,270 Interest Expense on Long-Term Debt (17,545 ) (16,289 ) (35,601 ) (32,577 ) Other Interest Expense � (2,849 ) � (2,285 ) � (2,474 ) � (3,010 ) � Income Before Income Taxes 120,695 156,734 42,728 272,352 � Income Tax Expense � 47,211 � � 61,730 � � 11,922 � � 106,744 � � Net Income Available for Common Stock $ 73,484 � $ 95,004 � $ 30,806 � $ 165,608 � � Earnings Per Common Share: Basic $ 0.92 � $ 1.14 � $ 0.39 � $ 1.98 � Diluted $ 0.92 � $ 1.11 � $ 0.38 � $ 1.93 � � Weighted Average Common Shares: Used in Basic Calculation � 79,514,793 � � 83,406,242 � � 79,400,660 � � 83,509,268 � Used in Diluted Calculation � 80,129,743 � � 85,385,944 � � 80,156,407 � � 85,603,033 � NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) � � March 31, September 30, (Thousands of Dollars) � 2009 � 2008 � ASSETS Property, Plant and Equipment $ 5,032,215 $ 4,873,969 Less - Accumulated Depreciation, Depletion and Amortization � 1,973,743 � � 1,719,869 Net Property, Plant and Equipment � 3,058,472 � � 3,154,100 � Current Assets: Cash and Temporary Cash Investments 86,048 68,239 Hedging Collateral Deposits 22,195 1 Receivables - Net 304,500 185,397 Unbilled Utility Revenue 55,070 24,364 Gas Stored Underground 15,950 87,294 Materials and Supplies - at average cost 24,257 31,317 Unrecovered Purchased Gas Costs 2,926 37,708 Other Current Assets 53,718 65,158 Deferred Income Taxes � 26,197 � � - Total Current Assets � 590,861 � � 499,478 � Other Assets: Recoverable Future Taxes 83,541 82,506 Unamortized Debt Expense 13,029 13,978 Other Regulatory Assets 189,394 189,587 Deferred Charges 2,196 4,417 Other Investments 67,335 80,640 Investments in Unconsolidated Subsidiaries 13,667 16,279 Goodwill 5,476 5,476 Intangible Assets 25,123 26,174 Prepaid Post-Retirement Benefit Costs 21,447 21,034 Fair Value of Derivative Financial Instruments 112,723 28,786 Other � 12,273 � � 7,732 Total Other Assets � 546,204 � � 476,609 Total Assets $ 4,195,537 � $ 4,130,187 � CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity

Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 79,514,816 Shares and 79,120,544 Shares, Respectively

$ 79,515 $ 79,121 Paid in Capital 581,189 567,716 Earnings Reinvested in the Business � 932,119 � � 953,799

Total Common Shareholder Equity Before Items of Other Comprehensive Income

1,592,823 1,600,636 Accumulated Other Comprehensive Income � 44,171 � � 2,963 Total Comprehensive Shareholders' Equity 1,636,994 1,603,599 Long-Term Debt, Net of Current Portion � 999,000 � � 999,000 Total Capitalization � 2,635,994 � � 2,602,599 � Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper - - Current Portion of Long-Term Debt - 100,000 Accounts Payable 105,048 142,520 Amounts Payable to Customers 21,650 2,753 Dividends Payable 25,841 25,714 Interest Payable on Long-Term Debt 21,397 22,114 Customer Advances 1,828 33,017 Other Accruals and Current Liabilities 246,291 45,220 Deferred Income Taxes - 1,871 Fair Value of Derivative Financial Instruments � 11,084 � � 1,362 Total Current and Accrued Liabilities � 433,139 � � 374,571 � Deferred Credits: Deferred Income Taxes 606,893 634,372 Taxes Refundable to Customers 18,456 18,449 Unamortized Investment Tax Credit 4,340 4,691 Cost of Removal Regulatory Liability 105,855 103,100 Other Regulatory Liabilities 105,874 91,933 Pension and Other Post-Retirement Liabilities 67,203 78,909 Asset Retirement Obligations 90,954 93,247 Other Deferred Credits � 126,829 � � 128,316 Total Deferred Credits � 1,126,404 � � 1,153,017 Commitments and Contingencies � - � � - Total Capitalization and Liabilities $ 4,195,537 � $ 4,130,187 NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) � � Six Months Ended March 31, (Thousands of Dollars) � 2009 � 2008 � Operating Activities: Net Income Available for Common Stock $ 30,806 $ 165,608 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Impairment of Oil and Gas Producing Properties 182,811 - Depreciation, Depletion and Amortization 84,056 86,533 Deferred Income Taxes (80,857 ) 12,817 Income from Unconsolidated Subsidiaries, Net of Cash Distributions 808 1,651 Impairment of Investment in Partnership 1,804 - Excess Tax Benefits Associated with Stock-Based Compensation Awards (5,927 ) (16,275 ) Other 6,611 (194 ) Change in: Hedging Collateral Deposits (22,194 ) 1,712 Receivables and Unbilled Utility Revenue (149,895 ) (245,912 )

Gas Stored Underground and Materials and Supplies

79,128 44,734 Unrecovered Purchased Gas Costs 34,782 13,347 Prepayments and Other Current Assets 16,954 15,878 Accounts Payable (45,186 ) 39,838 Amounts Payable to Customers 18,897 (5,424 ) Customer Advances (31,189 ) (22,863 ) Other Accruals and Current Liabilities 216,249 192,787 Other Assets 2,399 18,127 Other Liabilities � � (4,301 ) � � 4,504 � Net Cash Provided by Operating Activities � $ 335,756 � � $ 306,868 � � Investing Activities: Capital Expenditures ($178,772 ) ($144,707 ) Cash Held in Escrow - 58,397 Net Proceeds from Sale of Oil and Gas Producing Properties 60 2,313 Other � � (595 ) � � 1,557 � Net Cash Used in Investing Activities � � ($179,307 ) � � ($82,440 ) � Financing Activities: Excess Tax Benefits Associated with Stock-Based Compensation Awards $ 5,927 $ 16,275 Shares Repurchased under Repurchase Plan - (108,941 ) Reduction of Long-Term Debt (100,000 ) (24 ) Dividends Paid on Common Stock (51,556 ) (51,896 ) Proceeds From Issuance of Common Stock � � 6,989 � � � 11,764 � Net Cash Used In Financing Activities � � ($138,640 ) � � ($132,822 )

Net Increase in Cash and Temporary Cash Investments

17,809 91,606

Cash and Temporary Cash Investments at Beginning of Period

� � 68,239 � � � 124,806 �

Cash and Temporary Cash Investments at March 31

� $ 86,048 � � $ 216,412 � NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � � SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED) � Three Months Ended Six Months Ended

(Thousands of Dollars, except per share amounts)

March 31, March 31,

EXPLORATION AND PRODUCTION SEGMENT

2009 � 2008 � Variance 2009 � 2008 � Variance Operating Revenues $ 87,077 � � $ 114,720 � � $ (27,643 ) $ 183,790 � � $ 222,675 � � $ (38,885 ) � Operating Expenses: Purchased Gas - - - - - - Operation and Maintenance: General and Administrative Expense 8,525 7,171 1,354 15,617 12,752 2,865 Lease Operating Expense 12,555 14,421 (1,866 ) 25,169 26,148 (979 ) All Other Operation and Maintenance Expense 3,644 2,284 1,360 6,274 4,018 2,256 Property, Franchise and Other Taxes (Lease Operating Expense) 2,426 3,074 (648 ) 5,381 4,876 505 Depreciation, Depletion and Amortization 20,543 22,804 (2,261 ) 43,687 46,849 (3,162 ) Impairment of Oil and Gas Producing Properties � - � � � - � � � - � � 182,811 � � � - � � � 182,811 � � 47,693 � � � 49,754 � � � (2,061 ) � 278,939 � � � 94,643 � � � 184,296 � � Operating Income (Loss) 39,384 64,966 (25,582 ) (95,149 ) 128,032 (223,181 ) � Other Income (Expense): Interest Income 479 3,144 (2,665 ) 1,868 7,032 (5,164 ) Other Income - (65 ) 65 - 18 (18 ) Other Interest Expense � (8,733 ) � � (11,073 ) � � 2,340 � � (17,547 ) � � (22,218 ) � � 4,671 � � Income (Loss) Before Income Taxes 31,130 56,972 (25,842 ) (110,828 ) 112,864 (223,692 ) Income Tax Expense (Benefit) � 13,023 � � � 22,400 � � � (9,377 ) � (45,378 ) � � 44,270 � � � (89,648 ) Net Income (Loss) $ 18,107 � � $ 34,572 � � $ (16,465 ) $ (65,450 ) � $ 68,594 � � $ (134,044 ) � Net Income (Loss) Per Share (Diluted) $ 0.23 � � $ 0.40 � � $ (0.17 ) $ (0.82 ) � $ 0.80 � � $ (1.62 ) � � Three Months Ended Six Months Ended March 31, March 31,

PIPELINE AND STORAGE SEGMENT

2009 � 2008 � Variance 2009 � 2008 � Variance Revenues from External Customers $ 39,846 $ 37,934 $ 1,912 $ 75,113 $ 69,817 $ 5,296 Intersegment Revenues � 21,156 � � � 20,861 � � � 295 � � 41,993 � � � 41,209 � � � 784 � Total Operating Revenues � 61,002 � � � 58,795 � � � 2,207 � � 117,106 � � � 111,026 � � � 6,080 � � Operating Expenses: Purchased Gas 115 (14 ) 129 129 (8 ) 137 Operation and Maintenance 17,708 18,417 (709 ) 33,855 34,415 (560 ) Property, Franchise and Other Taxes 4,269 4,259 10 8,509 8,532 (23 ) Depreciation, Depletion and Amortization � 9,813 � � � 8,176 � � � 1,637 � � 17,666 � � � 16,285 � � � 1,381 � � 31,905 � � � 30,838 � � � 1,067 � � 60,159 � � � 59,224 � � � 935 � � Operating Income 29,097 27,957 1,140 56,947 51,802 5,145 � Other Income (Expense): Interest Income 384 70 314 398 165 233 Other Income 230 731 (501 ) 3,017 1,421 1,596 Interest Expense on Long-Term Debt - (16 ) 16 - (31 ) 31 Other Interest Expense � (4,588 ) � � (2,552 ) � � (2,036 ) � (8,255 ) � � (5,588 ) � � (2,667 ) � Income Before Income Taxes 25,123 26,190 (1,067 ) 52,107 47,769 4,338 Income Tax Expense � 9,937 � � � 10,572 � � � (635 ) � 19,745 � � � 19,372 � � � 373 � Net Income $ 15,186 � � $ 15,618 � � $ (432 ) $ 32,362 � � $ 28,397 � � $ 3,965 � � Net Income Per Share (Diluted) $ 0.19 � � $ 0.18 � � $ 0.01 � $ 0.40 � � $ 0.33 � � $ 0.07 � NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � � SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED) � Three Months Ended Six Months Ended (Thousands of Dollars, except per share amounts) March 31, March 31,

UTILITY SEGMENT

2009 � 2008 � Variance 2009 � 2008 � Variance Revenues from External Customers $ 502,016 $ 522,730 $ (20,714 ) $ 851,653 $ 849,855 $ 1,798 Intersegment Revenues � 5,846 � � � 6,114 � � � (268 ) � 10,399 � � � 10,413 � � � (14 ) Total Operating Revenues � 507,862 � � � 528,844 � � � (20,982 ) � 862,052 � � � 860,268 � � � 1,784 � � Operating Expenses: Purchased Gas 359,588 378,187 (18,599 ) 601,484 597,310 4,174 Operation and Maintenance 63,070 62,796 274 112,683 113,778 (1,095 ) Property, Franchise and Other Taxes 13,206 13,531 (325 ) 24,332 24,629 (297 ) Depreciation, Depletion and Amortization � 9,937 � � � 9,786 � � � 151 � � 19,661 � � � 19,827 � � � (166 ) � 445,801 � � � 464,300 � � � (18,499 ) � 758,160 � � � 755,544 � � � 2,616 � � Operating Income 62,061 64,544 (2,483 ) 103,892 104,724 (832 ) � Other Income (Expense): Interest Income 123 164 (41 ) 919 362 557 Other Income 237 259 (22 ) 512 604 (92 ) Other Interest Expense � (7,026 ) � � (7,654 ) � � 628 � � (13,092 ) � � (14,905 ) � � 1,813 � � Income Before Income Taxes 55,395 57,313 (1,918 ) 92,231 90,785 1,446 Income Tax Expense � 22,576 � � � 23,149 � � � (573 ) � 37,324 � � � 36,405 � � � 919 � Net Income $ 32,819 � � $ 34,164 � � $ (1,345 ) $ 54,907 � � $ 54,380 � � $ 527 � � Net Income Per Share (Diluted) $ 0.41 � � $ 0.40 � � $ 0.01 � $ 0.68 � � $ 0.64 � � $ 0.04 � � � Three Months Ended Six Months Ended March 31, March 31,

ENERGY MARKETING SEGMENT

2009 � 2008 � Variance 2009 � 2008 � Variance Operating Revenues $ 163,545 � � $ 191,263 � � $ (27,718 ) $ 278,551 � � $ 277,982 � � $ 569 � � Operating Expenses: Purchased Gas 152,438 180,723 (28,285 ) 264,888 264,652 236 Operation and Maintenance 1,688 1,439 249 3,156 2,785 371 Property, Franchise and Other Taxes 9 14 (5 ) 15 23 (8 ) Depreciation, Depletion and Amortization � 9 � � � 11 � � � (2 ) � 20 � � � 22 � � � (2 ) � 154,144 � � � 182,187 � � � (28,043 ) � 268,079 � � � 267,482 � � � 597 � � Operating Income 9,401 9,076 325 10,472 10,500 (28 ) � Other Income (Expense): Interest Income 24 63 (39 ) 27 87 (60 ) Other Income 67 74 (7 ) 110 133 (23 ) Other Interest Expense � (60 ) � � (44 ) � � (16 ) � (195 ) � � (127 ) � � (68 ) � Income Before Income Taxes 9,432 9,169 263 10,414 10,593 (179 ) Income Tax Expense � 3,853 � � � 3,522 � � � 331 � � 4,236 � � � 3,991 � � � 245 � Net Income $ 5,579 � � $ 5,647 � � $ (68 ) $ 6,178 � � $ 6,602 � � $ (424 ) � Net Income Per Share (Diluted) $ 0.07 � � $ 0.07 � � $ - � $ 0.08 � � $ 0.07 � � $ 0.01 � NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � � SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED) � Three Months Ended Six Months Ended (Thousands of Dollars, except per share amounts) March 31, March 31,

ALL OTHER

2009 � 2008 � Variance 2009 � 2008 � Variance Revenues from External Customers $ 11,929 $ 19,043 $ (7,114 ) $ 22,254 $ 33,493 $ (11,239 ) Intersegment Revenues � 1,194 � � � 3,099 � � � (1,905 ) � 3,516 � � � 5,812 � � � (2,296 ) Total Operating Revenues � 13,123 � � � 22,142 � � � (9,019 ) � 25,770 � � � 39,305 � � � (13,535 ) � Operating Expenses: Purchased Gas 1,397 2,510 (1,113 ) 3,357 4,712 (1,355 ) Operation and Maintenance 9,871 9,740 131 19,404 20,757 (1,353 ) Property, Franchise and Other Taxes 392 447 (55 ) 756 867 (111 ) Depreciation, Depletion and Amortization � 1,237 � � � 1,463 � � � (226 ) � 2,675 � � � 3,206 � � � (531 ) � 12,897 � � � 14,160 � � � (1,263 ) � 26,192 � � � 29,542 � � � (3,350 ) � Operating Income (Loss) 226 7,982 (7,756 ) (422 ) 9,763 (10,185 ) � Other Income (Expense): Income from Unconsolidated Subsidiaries 974 1,030 (56 ) 288 3,305 (3,017 ) Interest Income 241 217 24 490 622 (132 ) Other Income 10 912 (902 ) 12 921 (909 ) Other Interest Expense � (587 ) � � (932 ) � � 345 � � (1,360 ) � � (2,079 ) � � 719 � � Income (Loss) Before Income Taxes 864 9,209 (8,345 ) (992 ) 12,532 (13,524 ) Income Tax Expense (Benefit) � (1,043 ) � � 3,634 � � � (4,677 ) � (2,032 ) � � 4,222 � � � (6,254 ) Net Income $ 1,907 � � $ 5,575 � � $ (3,668 ) $ 1,040 � � $ 8,310 � � $ (7,270 ) � Net Income Per Share (Diluted) $ 0.02 � � $ 0.07 � � $ (0.05 ) $ 0.02 � � $ 0.10 � � $ (0.08 ) NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � � SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED) � Three Months Ended Six Months Ended (Thousands of Dollars, except per share amounts) March 31, March 31,

CORPORATE

2009 � 2008 � Variance 2009 � 2008 � Variance Revenues from External Customers $ 232 $ 163 $ 69 $ 447 $ 299 $ 148 Intersegment Revenues � 1,055 � � � 961 � � � 94 � � 2,058 � � � 1,922 � � � 136 � Total Operating Revenues � 1,287 � � � 1,124 � � � 163 � � 2,505 � � � 2,221 � � � 284 � � Operating Expenses: Operation and Maintenance 2,569 5,383 (2,814 ) 5,935 10,525 (4,590 ) Property, Franchise and Other Taxes 70 73 (3 ) 141 143 (2 ) Depreciation, Depletion and Amortization � 175 � � � 172 � � � 3 � � 347 � � � 344 � � � 3 � � 2,814 � � � 5,628 � � � (2,814 ) � 6,423 � � � 11,012 � � � (4,589 ) � Operating Loss (1,527 ) (4,504 ) 2,977 (3,918 ) (8,791 ) 4,873 � Other Income (Expense): Interest Income 18,706 20,186 (1,480 ) 39,689 42,890 (3,201 ) Other Income (76 ) 169 (245 ) 2,144 237 1,907 Interest Expense on Long-Term Debt (17,545 ) (16,273 ) (1,272 ) (35,601 ) (32,546 ) (3,055 ) Other Interest Expense � (807 ) � � (1,697 ) � � 890 � � (2,518 ) � � (3,981 ) � � 1,463 � � Income (Loss) Before Income Taxes (1,249 ) (2,119 ) 870 (204 ) (2,191 ) 1,987 Income Tax Benefit � (1,135 ) � � (1,547 ) � � 412 � � (1,973 ) � � (1,516 ) � � (457 ) Net Income (Loss) $ (114 ) � $ (572 ) � $ 458 � $ 1,769 � � $ (675 ) � $ 2,444 � � Net Income (Loss) Per Share (Diluted) $ - � � $ (0.01 ) � $ 0.01 � $ 0.02 � � $ (0.01 ) � $ 0.03 � � � Three Months Ended Six Months Ended March 31, March 31,

INTERSEGMENT ELIMINATIONS

2009 � 2008 � Variance 2009 � 2008 � Variance Intersegment Revenues $ (29,251 ) � $ (31,035 ) � $ 1,784 � $ (57,966 ) � $ (59,356 ) � $ 1,390 � � Operating Expenses: Purchased Gas (28,070 ) (29,968 ) 1,898 (55,657 ) (57,218 ) 1,561 Operation and Maintenance � (1,181 ) � � (1,067 ) � � (114 ) � (2,309 ) � � (2,138 ) � � (171 ) � (29,251 ) � � (31,035 ) � � 1,784 � � (57,966 ) � � (59,356 ) � � 1,390 � � Operating Income - - - - - - � Other Income (Expense): Interest Income (18,952 ) (21,667 ) 2,715 (40,493 ) (45,888 ) 5,395 Other Interest Expense � 18,952 � � � 21,667 � � � (2,715 ) � 40,493 � � � 45,888 � � � (5,395 ) � Net Income $ - � � $ - � � $ - � $ - � � $ - � � $ - � � Net Income Per Share (Diluted) $ - � � $ - � � $ - � $ - � � $ - � � $ - � NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � �

SEGMENT INFORMATION (Continued)

(Thousands of Dollars) � Three Months Ended Six Months Ended March 31, March 31, (Unaudited) (Unaudited) � Increase Increase 2009 2008 (Decrease) 2009 2008 (Decrease) �

Capital Expenditures:

Exploration and Production (1) $ 30,751 $ 34,195 $ (3,444 ) $ 117,161 $ 64,861 $ 52,300 Pipeline and Storage (2) (3) 8,333 31,739 (23,406 ) 27,834 57,110 (29,276 ) Utility 12,234 11,188 1,046 25,823 23,896 1,927 Energy Marketing � 9 � 7 � � 2 � � 11 � � 15 � � (4 ) Total Reportable Segments 51,327 77,129 (25,802 ) 170,829 145,882 24,947 All Other 22 214 (192 ) 74 1,197 (1,123 ) Corporate 14 27 (13 ) 45 35 10 Eliminations � - � (2,407 ) � 2,407 � � (344 ) � (2,407 ) � 2,063 � Total Capital Expenditures $ 51,363 $ 74,963 � $ (23,600 ) $ 170,604 � $ 144,707 � $ 25,897 � �

(1) Amount for the quarter and six months ended March 31, 2009 includes $7.7 million of accrued capital expenditures, the majority of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at March 31, 2009 since it represents a non-cash investing activity at that date.

�

(2) Amount for the quarter and six months ended March 31, 2009 includes $0.9 million of accrued capital expenditures related to the Empire Connector project. This amount has been excluded from the Consolidated Statement of Cash Flows at March 31, 2009 since it represents a non-cash investing activity at that date.

�

(3) Amount for the six months ended March 31, 2009 excludes $16.8 million of capital expenditures related to the Empire Connector project accrued at September 30, 2008 and paid during the six months ended March 31, 2009. This amount was excluded from the Consolidated Statement of Cash Flows at September 30, 2008 since it represented a non-cash investing activity at that date. The amount has been included in the Consolidated Statement of Cash Flows at March 31, 2009.

DEGREE DAYS

� � � � � � Percent Colder (Warmer) Than:

Three Months Ended March 31

Normal 2009 2008 Normal Last Year � Buffalo, NY 3,327 3,391 3,264 1.9 3.9 Erie, PA 3,142 3,176 3,104 1.1 2.3 �

Six Months Ended March 31

� Buffalo, NY 5,587 5,704 5,358 2.1 6.5 Erie, PA 5,223 5,243 4,975 0.4 5.4 NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � �

EXPLORATION AND PRODUCTION INFORMATION

� Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2009 2008 (Decrease) 2009 2008 (Decrease) �

Gas Production/Prices:

Production (MMcf) Gulf Coast 2,065 3,022 (957 ) 3,811 5,849 (2,038 ) West Coast 1,027 977 50 2,049 2,004 45 Appalachia � 2,059 � 1,828 � 231 � � 3,910 � 3,744 � 166 � Total Production � 5,151 � 5,827 � (676 ) � 9,770 � 11,597 � (1,827 ) � Average Prices (Per Mcf) Gulf Coast $ 4.61 $ 9.50 $ (4.89 ) $ 5.72 $ 8.36 $ (2.64 ) West Coast 4.22 7.93 (3.71 ) 4.62 7.34 (2.72 ) Appalachia 5.87 8.90 (3.03 ) 7.13 8.15 (1.02 ) Weighted Average 5.03 9.05 (4.02 ) 6.05 8.12 (2.07 ) Weighted Average after Hedging 7.53 9.21 (1.68 ) 8.18 8.55 (0.37 ) �

Oil Production/Prices:

Production (Thousands of Barrels) Gulf Coast 166 128 38 294 285 9 West Coast 648 599 49 1,330 1,227 103 Appalachia � 12 � 28 � (16 ) � 27 � 65 � (38 ) Total Production � 826 � 755 � 71 � � 1,651 � 1,577 � 74 � � Average Prices (Per Barrel) Gulf Coast $ 40.43 $ 99.75 $ (59.32 ) $ 47.26 $ 94.31 $ (47.05 ) West Coast 36.60 88.45 (51.85 ) 42.45 85.04 (42.59 ) Appalachia 43.55 90.15 (46.60 ) 58.10 86.73 (28.63 ) Weighted Average 37.47 90.43 (52.96 ) 43.56 86.78 (43.22 ) Weighted Average after Hedging 56.39 78.54 (22.15 ) 60.36 75.44 (15.08 ) � Total Production (Mmcfe) � 10,107 � 10,357 � (250 ) � 19,676 � 21,059 � (1,383 ) �

Selected Operating Performance Statistics:

General & Administrative Expense per Mcfe (1) $ 0.84 $ 0.69 $ 0.15 $ 0.79 $ 0.61 $ 0.18 Lease Operating Expense per Mcfe (1) $ 1.48 $ 1.69 $ (0.21 ) $ 1.55 $ 1.47 $ 0.08 Depreciation, Depletion & Amortization per Mcfe (1) $ 2.03 $ 2.20 $ (0.17 ) $ 2.22 $ 2.22 $ - �

(1) Refer to the chart titled, �Segment Operating Results and Statistics (Unaudited),� for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � �

EXPLORATION AND PRODUCTION INFORMATION

� Hedging Summary for the Remaining Six Months of Fiscal 2009 �

SWAPS

Volume

Average Hedge Price

Oil 0.6 MMBBL $83.12 / BBL Gas 4.7 BCF $9.44 / MCF � Hedging Summary for Fiscal 2010 �

SWAPS

Volume

Average Hedge Price

Oil 0.6 MMBBL $102.52 / BBL Gas 5.7 BCF $9.16 / MCF � Hedging Summary for Fiscal 2011 �

SWAPS

Volume

Average Hedge Price

Oil 0.1 MMBBL $125.25 / BBL Gas 3.6 BCF $7.81 / MCF � Hedging Summary for Fiscal 2012 �

SWAPS

Volume

Average Hedge Price

Gas 2.2 BCF $7.71 / MCF

Gross Wells in Process of Drilling

Six Months Ended March 31, 2009

� � � � Total

Gulf

West

East

Company

� Wells in Process - Beginning Period Exploratory 1.00 0.00 25.00 26.00 Developmental 1.00 1.00 123.00 125.00 Wells Commenced Exploratory 0.00 0.00 8.00 8.00 Developmental 0.00 26.00 108.00 134.00 Wells Completed Exploratory 1.00 0.00 2.00 3.00 Developmental 0.00 26.00 138.00 164.00 Wells Plugged & Abandoned Exploratory 0.00 0.00 2.00 2.00 Developmental 1.00 0.00 0.00 1.00 Wells in Process - End of Period Exploratory 0.00 0.00 29.00 29.00 Developmental 0.00 1.00 93.00 94.00 � �

Net Wells in Process of Drilling

Six Months Ended March 31, 2009

Total

Gulf

West

East

Company

� Wells in Process - Beginning Period Exploratory 0.29 0.00 24.00 24.29 Developmental 0.30 1.00 122.00 123.30 Wells Commenced Exploratory 0.00 0.00 6.00 6.00 Developmental 0.00 26.00 108.00 134.00 Wells Completed Exploratory 0.29 0.00 2.00 2.29 Developmental 0.00 26.00 138.00 164.00 Wells Plugged & Abandoned Exploratory 0.00 0.00 2.00 2.00 Developmental 0.30 0.00 0.00 0.30 Wells in Process - End of Period Exploratory 0.00 0.00 26.00 26.00 Developmental 0.00 1.00 92.00 93.00 NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � � � � � � � Pipeline & Storage Throughput - (millions of cubic feet - MMcf) � Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2009 2008 (Decrease) 2009 2008 (Decrease) Firm Transportation - Affiliated 47,255 48,817 (1,562 ) 82,197 80,152 2,045 Firm Transportation - Non-Affiliated 86,217 73,142 13,075 162,006 134,689 27,317 Interruptible Transportation 1,256 1,221 35 � 3,057 2,304 753 � 134,728 123,180 11,548 � 247,260 217,145 30,115 � � Utility Throughput - (MMcf) � Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2009 2008 (Decrease) 2009 2008 (Decrease) Retail Sales: Residential Sales 28,366 28,136 230 46,533 45,263 1,270 Commercial Sales 4,852 4,986 (134 ) 7,762 7,863 (101 ) Industrial Sales 302 323 (21 ) 445 446 (1 ) 33,520 33,445 75 54,740 53,572 1,168 Off-System Sales 1 2,048 (2,047 ) 513 3,080 (2,567 ) Transportation 24,256 26,054 (1,798 ) 41,729 43,881 (2,152 ) 57,777 61,547 (3,770 ) 96,982 100,533 (3,551 ) � Energy Marketing Volumes � Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2009 2008 (Decrease) 2009 2008 (Decrease) Natural Gas (MMcf) 22,689 21,707 982 � 35,825 32,548 3,277 � NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES FISCAL 2009 EARNINGS GUIDANCE AND SENSITIVITIES � � � �

�

Fiscal 2009 (Diluted earnings per share guidance*)

Earnings per share sensitivity to changes from NYMEX prices used in guidance* ^

� � � $1 change per MMBtu gas $5 change per Bbl oil Range Increase � Decrease Increase � Decrease � Consolidated Earnings

$0.95 - $1.10

+ $0.05 - $0.05 + $0.03 - $0.03 �

* Please refer to forward looking statement footnote in this document.

�

^ This sensitivity table is current as of April 29, 2009 and only considers revenue from the Exploration and Production segment's crude oil and natural gas sales. This revenue is based upon pricing used in the Company's earnings forecast. For the last two quarters of its fiscal 2009 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $3.50 per MMBtu for natural gas and $45 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca's production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity. This table does not factor in any possible additional reduction to earnings due to future "ceiling test" impairments as described in the text of this earnings release.

NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES � �

Quarter Ended March 31 (unaudited)

2009 2008 � Operating Revenues $ 804,645,000 $ 885,853,000 � Net Income Available for Common Stock $ 73,484,000 $ 95,004,000 � Earnings Per Common Share: Basic $ 0.92 $ 1.14 Diluted $ 0.92 $ 1.11 � Weighted Average Common Shares: Used in Basic Calculation � 79,514,793 � 83,406,242 Used in Diluted Calculation � 80,129,743 � 85,385,944 � �

Six Months Ended March 31 (unaudited)

� Operating Revenues $ 1,411,808,000 $ 1,454,121,000 � Net Income Available for Common Stock $ 30,806,000 $ 165,608,000 � Earnings Per Common Share: Basic $ 0.39 $ 1.98 Diluted $ 0.38 $ 1.93 � Weighted Average Common Shares: Used in Basic Calculation � 79,400,660 � 83,509,268 Used in Diluted Calculation � 80,156,407 � 85,603,033 � �

Twelve Months Ended March 31 (unaudited)

� Operating Revenues $ 2,358,048,000 $ 2,204,929,000 � Income from Continuing Operations $ 133,926,000 $ 241,115,000 Income from Discontinued Operations, Net of Tax � - � 128,981,000 Net Income Available for Common Stock $ 133,926,000 $ 370,096,000 � Earnings Per Common Share: Basic: Income from Continuing Operations $ 1.67 $ 2.89 Income from Discontinued Operations � - � 1.54 Net Income Available for Common Stock $ 1.67 $ 4.43 � Diluted: Income from Continuing Operations $ 1.64 $ 2.82 Income from Discontinued Operations � � 1.50 Net Income Available for Common Stock $ 1.64 $ 4.32 � Weighted Average Common Shares: Used in Basic Calculation � 80,252,366 � 83,502,281 Used in Diluted Calculation � 81,882,711 � 85,610,528