National Fuel Reports Second Quarter Earnings

National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the second quarter of fiscal 2014 and for the six months ended March 31, 2014.

HIGHLIGHTS

• Earnings for the second quarter of fiscal 2014 of $95.2 million, or $1.12 per share, increased $9.5 million, or $0.10 per share, compared to $85.7 million, or $1.02 per share, for the prior year’s second quarter.
• Earnings for the second quarter of fiscal 2014 were reduced by adjustments netting to $1.8 million (see table on page 3) that impacted the comparability of the Company’s financial results when comparing the quarter ended March 31, 2014, to the prior year’s second quarter. Excluding these items, consolidated earnings before items impacting comparability (“Operating Results”) for the second quarter of fiscal 2014 were $97.0 million, or $1.15 per share, an increase of $11.3 million or $0.13 per share.
• Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) for the six months ended March 31, 2014, were $528.7 million compared to $446.6 million for the prior year’s six-month period, an increase of 18%.
• Seneca Resources Corporation’s (“Seneca”) second quarter production of natural gas and crude oil was 36.9 billion cubic feet equivalent (“Bcfe”), an increase of 8.0 Bcfe or approximately 28% over the prior year’s second quarter. Average daily production during the quarter was 410 million cubic feet equivalent (“MMcfe”) per day.
• The Company is revising its production guidance range for fiscal 2014 to a range of 155 to 165 Bcfe. The previous production range was 145 to 165 Bcfe. The new range represents a 28% to 37% increase over fiscal 2013 production.
• The Company is revising its GAAP earnings guidance range for fiscal 2014 to a range of $3.40 to $3.55 per share. The previous earnings guidance had been a range of $3.20 to $3.40 per share. This guidance assumes a flat NYMEX price of $4.50 per Million British Thermal Units ("MMBtu") for natural gas and $95 per barrel ("Bbl") for crude oil for unhedged production for the remainder of the fiscal year.
• A conference call is scheduled for Friday, May 9, 2014, at 11 a.m. Eastern Time.

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had an outstanding second quarter, with all of our major business segments contributing to a nearly 13 percent increase in Operating Results over the prior year’s second quarter. Operationally, the challenges of a harsh winter were met with great success by employees across our system, as they ensured both the safety and reliability that are critical to our long-term results. The prolonged extreme temperatures also increased regional demand for natural gas, leading to higher throughput in our regulated businesses and stronger market prices for our exploration and production subsidiary Seneca Resources.

"As expected, Seneca’s production, while up 28 percent from the prior year’s quarter, was flat compared with the quarter ended December 31, 2013. Over the course of the next few months, Seneca expects to commence production from 3 new multi-well pads in our Eastern Development Area. In addition, our development program in the Greater Clermont Area in our Western Development Area is well underway and should begin production this summer. Based on these development activities, we have raised the lower end of Seneca’s production guidance for the entire fiscal year. With about 70 percent and 48 percent of our 2014 and 2015 Appalachian production currently subject to firm sale commitments, we are confident in our ability to continue our growth in production.”

EXPLORATION AND PRODUCTION SEGMENT OPERATIONS UPDATE

Seneca’s activities during the second quarter were primarily focused on multi-well pads in DCNR Tract 100 in Lycoming County, Pa., in the Eastern Development Area (“EDA”) and its Greater Clermont Area in Elk and Cameron counties, located in its Western Development Area (“WDA”).

Recently, Seneca brought 7 new wells on line in Tract 100 with 24-hour peak production rates that averaged 18.7 million cubic feet (“MMcf”) per day per well. These wells had an average lateral length of 5,109 feet. Additionally, the wells were completed using a reduced cluster spacing (“RCS”) design, with an average of 34 stages per well. Procurement initiatives and continued improvements in efficiencies are driving faster spud-to-sales timing and lower well costs, with the average well cost on the most recent pad estimated at $6.0 million per well to drill and complete.

In the EDA, an additional 10 wells located on Tract 100 and 6 wells on DCNR Tract 595 are targeted to commence production during the fourth quarter of this fiscal year.

In its Greater Clermont Area, completion operations are ongoing on a total of 15 wells from its first 2 multi-well pads. The first 9-well pad will be brought on line early in the fiscal 2014 fourth quarter in conjunction with the placing into service of National Fuel Gas Midstream Corporation’s Clermont Gathering System. The remaining 6-well pad will follow late in the fourth quarter.

Combined, Seneca plans to bring 31 wells on line during the fiscal 2014 fourth quarter, which should drive its fiscal year exit production to record highs.

Seneca plans to operate 2 of its 3 horizontal drilling rigs in the WDA for the remainder of the fiscal year. The third rig will be focused on development drilling in the EDA along with several delineation wells targeting both the Marcellus and Utica shales.

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended March 31, 2014, of $95.2 million, or $1.12 per share, compared to the prior year’s second quarter of $85.7 million, or $1.02 per share, an increase of $9.5 million or $0.10 per share. The increase is due to higher earnings in the Midstream and Downstream businesses and the Corporate and All Other category. (Note: All references to earnings per share are to diluted earnings per share and all amounts used in the discussion of earnings are after tax unless otherwise noted.)

Consolidated earnings for the six months ended March 31, 2014, of $177.5 million, or $2.09 per share, increased $23.8 million, or $0.26 per share, from the same period in the prior year where earnings were $153.7 million or $1.83 per share.

OPERATING RESULTS
				Three Months									Six Months
				Ended March 31,									Ended March 31,
				2014				2013					2014				2013
(in thousands except per share amounts)
Reported GAAP earnings				$	95,211			$	85,720				$	177,463			$	153,664
Items impacting comparability1:
Plugging and abandonment accrual				2,445									3,251
Deferred state income tax adjustment				3,000									3,000
Gain on life insurance policies				(3,635		)							(3,635		)
Operating Results				$	97,021			$	85,720				$	180,079			$	153,664
Reported GAAP earnings per share				$	1.12			$	1.02				$	2.09			$	1.83
Items impacting comparability1:
Plugging and abandonment accrual				0.03									0.04
Deferred state income tax adjustment				0.04									0.04
Gain on life insurance policies				(0.04		)							(0.04		)
Operating Results				$	1.15			$	1.02				$	2.13			$	1.83

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, 2014, to the comparable periods in fiscal 2013. Excluding these items, Operating Results for the current quarter of $97.0 million, or $1.15 per share, increased $11.3 million, or $0.13 per share, from the prior year’s second quarter when Operating Results were $85.7 million or $1.02 per share. Excluding these items, Operating Results for the six months ended March 31, 2014, of $180.1 million, or $2.13 per share, increased $26.4 million, or $0.30 per share, from the same period in the prior year when Operating Results were $153.7 million or $1.83 per share. Items impacting comparability will be discussed in more detail with the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form at pages 11 through 14 of this report. It may be helpful to refer to those tables while reviewing this discussion.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves in Pennsylvania, California and Kansas.

The Exploration and Production segment’s earnings in the second quarter of fiscal 2014 of $24.4 million, or $0.29 per share, decreased $3.3 million, or $0.04 per share, when compared with the prior year’s second quarter. Earnings for the current year’s second quarter were reduced by a $3.8 million (pre-tax) accrual for well plugging and abandonment costs associated with an offshore Gulf of Mexico mineral lease (High Island 74) that Seneca had previously farmed out to an operator who subsequently filed for bankruptcy. As the original lessee, Seneca has become responsible for a portion of the costs to plug and abandon wells on the lease. In addition, Seneca increased its state deferred income tax liability by $3.0 million to reflect the net impact of its growing presence in Pennsylvania ($5.8 million increase) and a reduction in New York state corporate income tax rates ($2.8 million decrease). Excluding these items, Operating Results in the Exploration and Production segment of $29.8 million, or $0.36 per share, increased $2.1 million, or $0.03 per share, when compared to the prior year’s second quarter.

Overall production of natural gas and crude oil for the current quarter of 36.9 Bcfe increased approximately 8.0 Bcfe, or 27.8 percent, compared to the prior year’s second quarter. Production from Seneca’s Appalachia properties increased approximately 7.5 Bcfe or 31.3 percent. California production of 5.3 Bcfe increased 10.4 percent compared with the prior year’s second quarter.

Lower commodity prices realized after hedging reduced earnings. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2014, was $3.89 per thousand cubic feet (“Mcf”), a decrease of $0.17 per Mcf compared to the prior year’s second quarter. The weighted average crude oil price realized after hedging for the quarter ended March 31, 2014, was $96.85 per Bbl, a decrease of $2.23 per Bbl compared to the prior year’s second quarter.

On a per unit basis, depletion expense of $1.88 per thousand cubic feet equivalent (“Mcfe”), decreased $0.17 per Mcfe due to higher natural gas reserve balances at March 31, 2014, compared to the prior year’s second quarter. On a per unit basis, lease operating and transportation expenses (“LOE”) at $1.08 per Mcfe increased $0.11 per Mcfe compared to the prior year’s second quarter due to higher transportation costs associated with production from Tract 100 in Lycoming County, Pa., and higher steam fuel costs in California. General and administrative expenses (“G&A”) decreased $0.13 per Mcfe compared to the prior year’s second quarter, also due to higher production. Operating Results were also impacted by higher property taxes in California and a higher Pennsylvania impact fee due to increased well activity.

The Exploration and Production segment’s earnings were $55.5 million, or $0.65 per share, for the six months ended March 31, 2014, compared to earnings of $54.4 million, or $0.65 per share for the six months ended March 31, 2013. Excluding the accrual for well plugging and abandonment costs and the increase to state deferred income taxes discussed above, Operating Results in the Exploration and Production segment of $61.7 million, or $0.73 per share, increased $7.3 million or $0.08 per share, when compared to the prior year’s six-month period.

Overall production of natural gas and crude oil for the six months ended March 31, 2014, of 74.0 Bcfe increased approximately 20.6 Bcfe, or 38.6 percent, compared to the prior year’s six-month period. Production from Seneca’s Appalachia properties increased approximately 20.1 Bcfe or 46.1 percent. California production of 10.3 Bcfe increased 5.3 percent compared with the prior year’s six-month period.

Lower commodity prices realized after hedging in the current six-month period reduced earnings. The weighted average natural gas price received by Seneca (after hedging) for the six months ended March 31, 2014, was $3.79 per Mcf, a decrease of $0.33 per Mcf compared to the prior year’s six-month period. The weighted average crude oil price realized after hedging for the six months ended March 31, 2014, was $95.47 per Bbl, a decrease of $2.39 per Bbl.

On a per unit basis for the six months ended March 31, 2014, depletion expense of $1.90 per Mcfe decreased $0.18 per Mcfe due to higher natural gas reserve balances at March 31, 2014, LOE of $1.02 per Mcfe increased $0.02 per Mcfe due to higher transportation costs, and G&A of $0.44 per Mcfe decreased $0.15 per Mcfe compared to the prior year’s six-month period, also due to higher production. Operating Results for the six months ended March 31, 2014, were reduced by higher property taxes in California, a higher Pennsylvania impact fee, and higher interest expense due to a higher outstanding debt balance.

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.

The Pipeline and Storage segment’s earnings of $21.4 million, or $0.25 per share, for the quarter ended March 31, 2014, increased $4.6 million, or $0.05 per share, when compared with the same period in the prior fiscal year. The increase in earnings is mainly due to higher non-affiliated transportation revenues from new transportation contracts. As a result of colder weather and the ongoing pricing basis differentials in the Marcellus basin, the Pipeline and Storage segment continues to see increased demand for transportation services from producers and marketers. Earnings for the quarter also benefitted from lower pension and other post retirement benefit costs.

The Pipeline and Storage segment’s earnings of $40.5 million, or $0.48 per share, for the six months ended March 31, 2014, increased $6.8 million, or $0.08 per share, when compared with the same period in the prior fiscal year. The increase was mostly due to higher non-affiliated transportation revenues from the Northern Access and Line N 2012 Expansion projects and lower pension and other post retirement benefit costs. Earnings for the current six-month period were reduced by a lower allowance for funds used during construction due to the completion in the prior year of the expansion projects mentioned above.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Corporation’s (“Midstream”) subsidiary limited liability companies. The Gathering segment constructs, owns and operates natural gas pipeline gathering and processing facilities in the Appalachian region and currently provides the critical gathering infrastructure for transporting Seneca’s Marcellus Shale production to the interstate pipeline system.

The Gathering segment’s earnings of $7.3 million, or $0.09 per share, for the quarter ended March 31, 2014, increased $4.2 million, or $0.05 per share, when compared with the same period in the prior fiscal year. The increase in earnings is mainly due to higher gathering revenues from Midstream’s Trout Run gathering system in Lycoming County, Pa.

The Gathering segment’s earnings of $13.5 million, or $0.16 per share, for the six months ended March 31, 2014, increased $8.4 million, or $0.10 per share, when compared with the same period in the prior fiscal year. The increase in earnings is mainly due to higher gathering revenues from Midstream’s Trout Run gathering system in Lycoming County, Pa.

Downstream Businesses

Utility Segment

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

The Utility segment’s earnings of $35.5 million, or $0.42 per share, for the quarter ended March 31, 2014, increased $1.0 million, or $0.01 per share, when compared with the same period in the prior fiscal year. Colder weather in Pennsylvania was a major reason for the increase in earnings in the current year’s second quarter. Temperatures in Pennsylvania were 21.2 percent colder in the quarter ended March 31, 2014, than in the prior year’s second quarter. In New York, the impact of weather variations on earnings is mitigated by that jurisdiction’s weather normalization clause. Higher operating expenses, consisting mostly of higher pension related costs, and an accrual for earnings sharing, which was primarily the result of the settlement of the rate proceeding in New York, reduced earnings in the current year’s second quarter.

The Utility segment’s earnings of $59.8 million, or $0.70 per share, for the six months ended March 31, 2014, increased $2.4 million, or $0.02 per share, when compared with the same period in the prior fiscal year. Colder weather in Pennsylvania was a major reason for the increase in earnings in the current year’s six-month period. Temperatures in Pennsylvania were 17.4 percent colder in the six months ended March 31, 2014, than in the prior year’s six-month period. In New York, the impact of weather variations on earnings is mitigated by that jurisdiction’s weather normalization clause. Lower interest expense due to a lower outstanding debt balance also increased earnings. Higher operating expenses, consisting mostly of higher pension related costs, which were primarily the result of the settlement of the rate proceeding in New York, reduced earnings in the current year’s six-month period. Higher income taxes, due to a non-recurring tax benefit recorded in the prior year six-month period, also reduced earnings.

Energy Marketing Segment

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 and six months ended March 31, 2014, of $3.8 million and $5.4 million, respectively, were largely unchanged from the equivalent periods in the prior year.

Corporate and All Other

The Corporate and All Other category primarily includes corporate operations. The category also includes the remaining operations of Seneca’s Northeast division that markets high quality hardwoods from Appalachian land holdings.

The Corporate and All Other category earnings of $2.8 million, for the quarter ended March 31, 2014, compares to a loss of $0.7 million for the prior year’s second quarter. The comparability of the quarterly results is impacted by a $3.6 million gain recognized on corporate-owned executive life insurance policies. Excluding this item, Operating Results for the quarter, a loss of $0.8 million, compares to a loss of $0.7 million in the prior year’s second quarter. The lower Operating Results were due to higher operating expenses.

The Corporate and All Other category earnings of $2.9 million, for the six months ended March 31, 2014, compares to a loss of $1.7 million for the prior year’s six-month period. The comparability of the six month results is impacted by a $3.6 million gain recognized on corporate-owned executive life insurance policies. Excluding this item, Operating Results for the six-month period, a loss of $0.8 million, compares to a loss of $1.7 million in the prior year’s six-month period. The improved Operating Results were due to higher margins from the Company’s timber operations.

EARNINGS GUIDANCE

The Company is revising its GAAP earnings guidance range for fiscal 2014 to a range of $3.40 to $3.55 per share. The previous earnings guidance had been a range of $3.20 to $3.40 per share. This guidance includes forecast oil and gas production for fiscal 2014 in the range between 155 to 165 Bcfe (previous guidance 145 to 165 Bcfe), hedges currently in place and a flat NYMEX price of $4.50 per MMBtu for natural gas and $95 per Bbl for crude oil for unhedged production for the remainder of the fiscal year.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 9, 2014, 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 website at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-877-280-4957, using passcode “82946243.” For those unable to listen to the live conference call, a replay will be available at approximately 3 p.m. Eastern Time at the same website link and by phone at (toll-free) 1-888-286-8010, using passcode “28597692.” Both the webcast and telephonic replay will be available until the close of business on Friday, May 16, 2014.

National Fuel is an integrated energy company with $6.6 billion in assets comprised of the following five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; 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, allowed rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in the price of natural gas or oil; changes in price differential between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas and oil having different quality, heating value, hydrocarbon mix or delivery date; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; 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; 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 major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; 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; 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 thereof.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2014
				Upstream				Midstream Businesses								Downstream Businesses
				Exploration &				Pipeline &												Energy				Corporate /
(Thousands of Dollars)				Production				Storage				Gathering				Utility				Marketing				All Other				Consolidated*
Second quarter 2013 GAAP earnings				$	27,711			$	16,796			$	3,093			$	34,516			$	4,283			$	(679	)		$	85,720
Drivers of operating results
Higher (lower) crude oil prices				(1,091		)																						(1,091		)
Higher (lower) natural gas prices				(3,565		)																						(3,565		)
Higher (lower) natural gas production				20,119																								20,119
Higher (lower) crude oil production				4,094																								4,094
Derivative mark to market adjustments				(898		)																						(898		)
Lower (higher) lease operating and transportation expenses				(7,861		)																						(7,861		)
Lower (higher) depreciation / depletion				(6,555		)																						(6,555		)
Higher (lower) transportation revenues								3,835																				3,835
Higher (lower) gathering and processing revenues												4,826																4,826
Lower (higher) operating expenses				(1,463		)		1,007								(1,299		)						(615		)		(2,370		)
Lower (higher) property, franchise and other taxes				(1,091		)																		267				(824		)
Colder weather																4,471												4,471
Regulatory true-up adjustments																(891		)										(891		)
Higher (lower) margins																				(522		)						(522		)
Income (loss) from unconsolidated subsidiaries																								258				258
Lower (higher) income tax expense / effective tax rate												(643		)		(1,333		)										(1,976		)
All other / rounding				435				(266		)		48				81				4				(51		)		251
Second quarter 2014 operating results				29,835				21,372				7,324				35,545				3,765				(820		)		97,021
Items impacting comparability:
Plugging and abandonment accrual				(2,445		)																						(2,445		)
Deferred state income tax adjustment				(3,000		)																						(3,000		)
Gain on life insurance policies																								3,635				3,635
Second quarter 2014 GAAP earnings				$	24,390			$	21,372			$	7,324			$	35,545			$	3,765			$	2,815			$	95,211
* Amounts do not reflect intercompany eliminations

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2014
				Upstream				Midstream Businesses								Downstream Businesses
				Exploration &				Pipeline &												Energy				Corporate /
				Production				Storage				Gathering				Utility				Marketing				All Other				Consolidated*
Second quarter 2013 GAAP earnings				$	0.33			$	0.20			$	0.04			$	0.41			$	0.05			$	(0.01	)		$	1.02
Drivers of operating results
Higher (lower) crude oil prices				(0.01		)																						(0.01		)
Higher (lower) natural gas prices				(0.04		)																						(0.04		)
Higher (lower) natural gas production				0.24																								0.24
Higher (lower) crude oil production				0.05																								0.05
Derivative mark to market adjustments				(0.01		)																						(0.01		)
Lower (higher) lease operating and transportation expenses				(0.09		)																						(0.09		)
Lower (higher) depreciation / depletion				(0.08		)																						(0.08		)
Higher (lower) transportation revenues								0.05																				0.05
Higher (lower) gathering and processing revenues												0.06																0.06
Lower (higher) operating expenses				(0.02		)		0.01								(0.02		)						(0.01		)		(0.04		)
Lower (higher) property, franchise and other taxes				(0.01		)																		—				(0.01		)
Colder weather																0.05												0.05
Regulatory true-up adjustments																(0.01		)										(0.01		)
Higher (lower) margins																				(0.01		)						(0.01		)
Income (loss) from unconsolidated subsidiaries																								—				—
Lower (higher) income tax expense / effective tax rate												(0.01		)		(0.02		)										(0.03		)
All other / rounding				—				(0.01		)		—				0.01				—				0.01				0.01
Second quarter 2014 operating results				0.36				0.25				0.09				0.42				0.04				(0.01		)		1.15
Items impacting comparability:
Plugging and abandonment accrual				(0.03		)																						(0.03		)
Deferred state income tax adjustment				(0.04		)																						(0.04		)
Gain on life insurance policies																								0.04				0.04
Second quarter 2014 GAAP earnings				$	0.29			$	0.25			$	0.09			$	0.42			$	0.04			$	0.03			$	1.12
* Amounts do not reflect intercompany eliminations

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2014
				Upstream				Midstream Businesses								Downstream Businesses
				Exploration &				Pipeline &												Energy				Corporate /
(Thousands of Dollars)				Production				Storage				Gathering				Utility				Marketing				All Other				Consolidated*
Six months ended March 31, 2013 GAAP earnings				$	54,391			$	33,728			$	5,035			$	57,394			$	4,778			$	(1,662	)		$	153,664
Drivers of operating results
Higher (lower) crude oil prices				(2,291		)																						(2,291		)
Higher (lower) natural gas prices				(13,669		)																						(13,669		)
Higher (lower) natural gas production				54,129																								54,129
Higher (lower) crude oil production				4,136																								4,136
Derivative mark to market adjustments				305																								305
Insurance settlement proceeds				1,261																				342				1,603
Lower (higher) lease operating and transportation expenses				(14,020		)																						(14,020		)
Lower (higher) depreciation / depletion				(19,027		)		(547		)		(508		)										314				(19,768		)
Higher (lower) transportation revenues								7,498																				7,498
Higher (lower) gathering and processing revenues												10,613																10,613
Lower (higher) operating expenses				(152		)		2,667				(472		)		(3,715		)						(1,008		)		(2,680		)
Lower (higher) property, franchise and other taxes				(1,745		)																		360				(1,385		)
Colder weather																6,378												6,378
Higher (lower) margins																				632				338				970
Income (loss) from unconsolidated subsidiaries																								268				268
Higher (lower) AFUDC**								(1,446		)																		(1,446		)
Lower (higher) interest expense				(1,797		)		(396		)						798												(1,395		)
Lower (higher) income tax expense / effective tax rate				(866		)		(846		)		(1,302		)		(1,644		)										(4,658		)
All other / rounding				1,083				(148		)		105				549				(41		)		279				1,827
Six months ended March 31, 2014 operating results				61,738				40,510				13,471				59,760				5,369				(769		)		180,079
Items impacting comparability:
Plugging and abandonment accrual				(3,251		)																						(3,251		)
Deferred state income tax adjustment				(3,000		)																						(3,000		)
Gain on life insurance policies																								3,635				3,635
Six months ended March 31, 2014 GAAP earnings				$	55,487			$	40,510			$	13,471			$	59,760			$	5,369			$	2,866			$	177,463
* Amounts do not reflect intercompany eliminations
** 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, 2014
				Upstream				Midstream Businesses								Downstream Businesses
				Exploration &				Pipeline &												Energy				Corporate /
				Production				Storage				Gathering				Utility				Marketing				All Other				Consolidated*
Six months ended March 31, 2013 GAAP earnings				$	0.65			$	0.40			$	0.06			$	0.68			$	0.06			$	(0.02	)		$	1.83
Drivers of operating results
Higher (lower) crude oil prices				(0.03		)																						(0.03		)
Higher (lower) natural gas prices				(0.16		)																						(0.16		)
Higher (lower) natural gas production				0.64																								0.64
Higher (lower) crude oil production				0.05																								0.05
Derivative mark to market adjustments				—																								—
Insurance settlement proceeds				0.01																				—				0.01
Lower (higher) lease operating and transportation expenses				(0.17		)																						(0.17		)
Lower (higher) depreciation / depletion				(0.22		)		(0.01		)		(0.01		)										—				(0.24		)
Higher (lower) transportation revenues								0.09																				0.09
Higher (lower) gathering and processing revenues												0.13																0.13
Lower (higher) operating expenses				—				0.03				(0.01		)			(0.04	)						(0.01		)		(0.03		)
Lower (higher) property, franchise and other taxes				(0.02		)																		—				(0.02		)
Colder weather																	0.08											0.08
Higher (lower) margins																				0.01				—				0.01
Income (loss) from unconsolidated subsidiaries																								—				—
Higher (lower) AFUDC**								(0.02		)																		(0.02		)
Lower (higher) interest expense				(0.02		)		—									0.01											(0.01		)
Lower (higher) income tax expense / effective tax rate				(0.01		)		(0.01		)		(0.02		)			(0.02	)										(0.06		)
All other / rounding				0.01				—				0.01					(0.01	)		(0.01		)		0.03				0.03
Six months ended March 31, 2014 operating results				0.73				0.48				0.16					0.70			0.06				—				2.13
Items impacting comparability:
Plugging and abandonment accrual				(0.04		)																						(0.04		)
Deferred state income tax adjustment				(0.04		)																						(0.04		)
Gain on life insurance policies																								0.04				0.04
Six months ended March 31, 2014 GAAP earnings				$	0.65			$	0.48			$	0.16			$	0.70			$	0.06			$	0.04			$	2.09
* Amounts do not reflect intercompany eliminations
** 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				2014				2013				2014				2013
Operating Revenues				$	756,242			$	597,826			$	1,306,314			$	1,050,680
Operating Expenses:
Purchased Gas				322,772				209,817				490,378				331,735
Operation and Maintenance				137,716				122,303				245,562				230,035
Property, Franchise and Other Taxes				25,704				22,685				46,630				42,348
Depreciation, Depletion and Amortization				89,975				80,030				183,089				152,361
				576,167				434,835				965,659				756,479
Operating Income				180,075				162,991				340,655				294,201
Other Income (Expense):
Interest Income				249				140				951				1,526
Other Income				5,123				1,087				5,352				2,501
Interest Expense on Long-Term Debt				(22,766		)		(22,786		)		(45,651		)		(44,234		)
Other Interest Expense				(1,375		)		(526		)		(2,324		)		(1,595		)
Income Before Income Taxes				161,306				140,906				298,983				252,399
Income Tax Expense				66,095				55,186				121,520				98,735
Net Income Available for Common Stock				$	95,211			$	85,720			$	177,463			$	153,664
Earnings Per Common Share:
Basic				$	1.14			$	1.03			$	2.12			$	1.84
Diluted				$	1.12			$	1.02			$	2.09			$	1.83
Weighted Average Common Shares:
Used in Basic Calculation				83,856,120				83,498,508				83,781,085				83,443,805
Used in Diluted Calculation				84,837,123				84,159,734				84,787,610				84,127,705

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,				September 30,
(Thousands of Dollars)	2014				2013
ASSETS
Property, Plant and Equipment	$	7,689,518			$	7,313,203
Less - Accumulated Depreciation, Depletion and Amortization		2,325,636				2,161,477
Net Property, Plant and Equipment		5,363,882				5,151,726
Current Assets:
Cash and Temporary Cash Investments		150,864				64,858
Hedging Collateral Deposits		—				1,094
Receivables - Net		267,512				133,182
Unbilled Revenue		83,378				19,483
Gas Stored Underground		3,176				51,484
Materials and Supplies - at average cost		25,551				29,904
Unrecovered Purchased Gas Costs		1,825				12,408
Other Current Assets		54,903				56,905
Deferred Income Taxes		39,650				79,359
Total Current Assets		626,859				448,677
Other Assets:
Recoverable Future Taxes		161,258				163,355
Unamortized Debt Expense		15,478				16,645
Other Regulatory Assets		244,486				252,568
Deferred Charges		9,050				9,382
Other Investments		85,825				96,308
Goodwill		5,476				5,476
Prepaid Post-Retirement Benefit Costs		28,366				22,774
Fair Value of Derivative Financial Instruments		25,777				48,989
Other		738				2,447
Total Other Assets		576,454				617,944
Total Assets	$	6,567,195			$	6,218,347
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 83,980,596 Shares
and 83,661,969 Shares, Respectively	$	83,981			$	83,662
Paid in Capital		703,422				687,684
Earnings Reinvested in the Business		1,557,184				1,442,617
Accumulated Other Comprehensive Loss		(45,055	)			(19,234	)
Total Comprehensive Shareholders' Equity		2,299,532				2,194,729
Long-Term Debt, Net of Current Portion		1,649,000				1,649,000
Total Capitalization		3,948,532				3,843,729
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		—				—
Current Portion of Long-Term Debt		—				—
Accounts Payable		153,147				105,283
Amounts Payable to Customers		24,665				12,828
Dividends Payable		31,493				31,373
Interest Payable on Long-Term Debt		29,960				29,960
Customer Advances		81				21,959
Customer Security Deposits		15,581				16,183
Other Accruals and Current Liabilities		235,900				83,946
Fair Value of Derivative Financial Instruments		22,236				639
Total Current and Accrued Liabilities		513,063				302,171
Deferred Credits:
Deferred Income Taxes		1,352,731				1,347,007
Taxes Refundable to Customers		90,779				85,655
Unamortized Investment Tax Credit		1,361				1,579
Cost of Removal Regulatory Liability		165,138				157,622
Other Regulatory Liabilities		94,000				61,549
Pension and Other Post-Retirement Liabilities		145,085				158,014
Asset Retirement Obligations		120,884				119,511
Other Deferred Credits		135,622				141,510
Total Deferred Credits		2,105,600				2,072,447
Commitments and Contingencies		—				—
Total Capitalization and Liabilities	$	6,567,195			$	6,218,347

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
				Six Months Ended
				March 31,
(Thousands of Dollars)				2014				2013
Operating Activities:
Net Income Available for Common Stock				$	177,463			$	153,664
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization				183,089				152,361
Deferred Income Taxes				71,939				102,557
Excess Tax Benefits Associated with Stock-Based Compensation Awards				(3,149		)		—
Stock-Based Compensation				8,045				6,596
Other				(118		)		8,013
Change in:
Hedging Collateral Deposits				1,094				(386		)
Receivables and Unbilled Revenue				(198,277		)		(109,403		)
Gas Stored Underground and Materials and Supplies				52,661				32,391
Unrecovered Purchased Gas Costs				10,583				—
Other Current Assets				(443		)		4,389
Accounts Payable				69,379				20,456
Amounts Payable to Customers				11,837				(1,725		)
Customer Advances				(21,878		)		(23,910		)
Customer Security Deposits				(602		)		(804		)
Other Accruals and Current Liabilities				102,222				39,273
Other Assets				23,445				(6,200		)
Other Liabilities				15,946				(10,417		)
Net Cash Provided by Operating Activities				$	503,236			$	366,855
Investing Activities:
Capital Expenditures				$	(367,393	)		$	(339,737	)
Other				4,927				(3,445		)
Net Cash Used in Investing Activities				$	(362,466	)		$	(343,182	)
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper				$	—			$	(171,000	)
Excess Tax Benefits Associated with Stock-Based Compensation Awards				3,149				—
Reduction of Long-Term Debt				—				(250,000		)
Net Proceeds From Issuance of Long-Term Debt				—				495,415
Dividends Paid on Common Stock				(62,776		)		(60,879		)
Net Proceeds From Issuance of Common Stock				4,863				710
Net Cash Provided By (Used in) Financing Activities				$	(54,764	)		$	14,246
Net Increase in Cash and Temporary Cash Investments				86,006				37,919
Cash and Temporary Cash Investments at Beginning of Period				64,858				74,494
Cash and Temporary Cash Investments at March 31				$	150,864			$	112,413

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
				Three Months Ended										Six Months Ended
(Thousands of Dollars, except per share amounts)				March 31,										March 31,
EXPLORATION AND PRODUCTION SEGMENT				2014			2013			Variance				2014			2013			Variance
Total Operating Revenues				$	199,561		$	168,080		$	31,481			$	392,607		$	323,529		$	69,078
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense				17,079			16,940			139				32,213			31,372			841
Lease Operating and Transportation Expense				39,957			27,863			12,094				75,127			53,558			21,569
All Other Operation and Maintenance Expense				9,033			1,920			7,113				11,816			7,420			4,396
Property, Franchise and Other Taxes				5,854			4,176			1,678				10,118			7,434			2,684
Depreciation, Depletion and Amortization				69,232			59,147			10,085				140,342			111,070			29,272
				141,155			110,046			31,109				269,616			210,854			58,762
Operating Income				58,406			58,034			372				122,991			112,675			10,316
Other Income (Expense):
Interest Income				405			404			1				956			874			82
Other Interest Expense				(10,775		)	(10,041		)	(734)				(21,500		)	(18,736		)	(2,764		)
Income Before Income Taxes				48,036			48,397			(361		)		102,447			94,813			7,634
Income Tax Expense				23,646			20,686			2,960				46,960			40,422			6,538
Net Income				$	24,390		$	27,711		$	(3,321	)		$	55,487		$	54,391		$	1,096
Net Income Per Share (Diluted)				$	0.29		$	0.33		$	(0.04	)		$	0.65		$	0.65		$	—

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
				Three Months Ended										Six Months Ended
(Thousands of Dollars, except per share amounts)				March 31,										March 31,
PIPELINE AND STORAGE SEGMENT				2014			2013			Variance				2014			2013			Variance
Revenues from External Customers				$	53,571		$	46,383		$	7,188			$	104,784		$	89,842		$	14,942
Intersegment Revenues				22,235			23,712			(1,477		)		42,974			46,509			(3,535		)
Total Operating Revenues				75,806			70,095			5,711				147,758			136,351			11,407
Operating Expenses:
Purchased Gas				38			309			(271		)		1,301			1,095			206
Operation and Maintenance				18,885			20,433			(1,548		)		35,770			39,873			(4,103		)
Property, Franchise and Other Taxes				6,107			5,684			423				11,795			11,117			678
Depreciation, Depletion and Amortization				9,069			8,823			246				18,190			17,349			841
				34,099			35,249			(1,150		)		67,056			69,434			(2,378		)
Operating Income				41,707			34,846			6,861				80,702			66,917			13,785
Other Income (Expense):
Interest Income				57			56			1				131			120			11
Other Income (Loss)				192			106			86				(1		)	1,449			(1,450		)
Other Interest Expense				(6,646		)	(6,659		)	13				(13,445		)	(12,835		)	(610		)
Income Before Income Taxes				35,310			28,349			6,961				67,387			55,651			11,736
Income Tax Expense				13,938			11,553			2,385				26,877			21,923			4,954
Net Income				$	21,372		$	16,796		$	4,576			$	40,510		$	33,728		$	6,782
Net Income Per Share (Diluted)				$	0.25		$	0.20		$	0.05			$	0.48		$	0.40		$	0.08
				Three Months Ended										Six Months Ended
				March 31,										March 31,
GATHERING SEGMENT				2014			2013			Variance				2014			2013			Variance
Revenues from External Customers				$	195		$	324		$	(129	)		$	429		$	526		$	(97	)
Intersegment Revenues				15,452			7,898			7,554				29,802			13,377			16,425
Total Operating Revenues				15,647			8,222			7,425				30,231			13,903			16,328
Operating Expenses:
Operation and Maintenance				1,530			1,027			503				2,697			1,970			727
Property, Franchise and Other Taxes				60			51			9				92			192			(100		)
Depreciation, Depletion and Amortization				614			1,062			(448		)		2,523			1,742			781
				2,204			2,140			64				5,312			3,904			1,408
Operating Income				13,443			6,082			7,361				24,919			9,999			14,920
Other Income (Expense):
Interest Income				26			10			16				65			11			54
Other Income				4			—			4				5			1			4
Other Interest Expense				(460		)	(577		)	117				(1,043		)	(1,046		)	3
Income Before Income Taxes				13,013			5,515			7,498				23,946			8,965			14,981
Income Tax Expense				5,689			2,422			3,267				10,475			3,930			6,545
Net Income				$	7,324		$	3,093		$	4,231			$	13,471		$	5,035		$	8,436
Net Income Per Share (Diluted)				$	0.09		$	0.04		$	0.05			$	0.16		$	0.06		$	0.10

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESSES
				Three Months Ended										Six Months Ended
(Thousands of Dollars, except per share amounts)				March 31,										March 31,
UTILITY SEGMENT				2014			2013			Variance				2014			2013			Variance
Revenues from External Customers				$	377,647		$	303,389		$	74,258			$	608,100		$	511,953		$	96,147
Intersegment Revenues				8,204			6,396			1,808				12,911			10,707			2,204
Total Operating Revenues				385,851			309,785			76,066				621,011			522,660			98,351
Operating Expenses:
Purchased Gas				235,784			168,143			67,641				357,711			274,084			83,627
Operation and Maintenance				61,653			58,331			3,322				108,925			101,592			7,333
Property, Franchise and Other Taxes				13,370			12,054			1,316				24,037			22,409			1,628
Depreciation, Depletion and Amortization				10,798			10,737			61				21,509			21,244			265
				321,605			249,265			72,340				512,182			419,329			92,853
Operating Income				64,246			60,520			3,726				108,829			103,331			5,498
Other Income (Expense):
Interest Income				73			67			6				151			953			(802		)
Other Income				318			222			96				688			441			247
Other Interest Expense				(7,079		)	(6,885		)	(194		)		(13,893		)	(15,120		)	1,227
Income Before Income Taxes				57,558			53,924			3,634				95,775			89,605			6,170
Income Tax Expense				22,013			19,408			2,605				36,015			32,211			3,804
Net Income				$	35,545		$	34,516		$	1,029			$	59,760		$	57,394		$	2,366
Net Income Per Share (Diluted)				$	0.42		$	0.41		$	0.01			$	0.70		$	0.68		$	0.02
				Three Months Ended										Six Months Ended
				March 31,										March 31,
ENERGY MARKETING SEGMENT				2014			2013			Variance				2014			2013			Variance
Revenues from External Customers				$	124,439		$	78,989		$	45,450			$	197,598		$	123,154		$	74,444
Intersegment Revenues				5			208			(203		)		260			634			(374		)
Total Operating Revenues				124,444			79,197			45,247				197,858			123,788			74,070
Operating Expenses:
Purchased Gas				116,615			70,565			46,050				185,818			112,721			73,097
Operation and Maintenance				1,701			1,651			50				3,293			3,245			48
Property, Franchise and Other Taxes				13			9			4				13			67			(54		)
Depreciation, Depletion and Amortization				48			23			25				96			45			51
				118,377			72,248			46,129				189,220			116,078			73,142
Operating Income				6,067			6,949			(882		)		8,638			7,710			928
Other Income (Expense):
Interest Income				33			43			(10		)		77			96			(19		)
Other Income				34			15			19				49			28			21
Other Interest Expense				(8		)	(9		)	1				(17		)	(20		)	3
Income Before Income Taxes				6,126			6,998			(872		)		8,747			7,814			933
Income Tax Expense				2,361			2,715			(354		)		3,378			3,036			342
Net Income				$	3,765		$	4,283		$	(518	)		$	5,369		$	4,778		$	591
Net Income Per Share (Diluted)				$	0.04		$	0.05		$	(0.01	)		$	0.06		$	0.06		$	—

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				2014			2013			Variance				2014			2013			Variance
Total Operating Revenues				$	597		$	437		$	160			$	2,298		$	1,252		$	1,046
Operating Expenses:
Operation and Maintenance				305			330			(25		)		658			612			46
Property, Franchise and Other Taxes				177			166			11				335			322			13
Depreciation, Depletion and Amortization				57			38			19				114			511			(397		)
				539			534			5				1,107			1,445			(338		)
Operating Income (Loss)				58			(97		)	155				1,191			(193		)	1,384
Other Income (Expense):
Interest Income				25			32			(7		)		59			71			(12		)
Other Income (Loss)				378			(1		)	379				399			(37		)	436
Other Interest Expense				—			(1		)	1				(1		)	(2		)	1
Income (Loss) Before Income Taxes				461			(67		)	528				1,648			(161		)	1,809
Income Tax Expense (Benefit)				183			(38		)	221				694			(76		)	770
Net Income (Loss)				$	278		$	(29	)	$	307			$	954		$	(85	)	$	1,039
Net Income (Loss) Per Share (Diluted)				$	—		$	—		$	—			$	0.01		$	—		$	0.01
				Three Months Ended										Six Months Ended
				March 31,										March 31,
CORPORATE				2014			2013			Variance				2014			2013			Variance
Revenues from External Customers				$	232		$	224		$	8			$	498		$	424		$	74
Intersegment Revenues				946			957			(11		)		1,908			1,505			403
Total Operating Revenues				1,178			1,181			(3		)		2,406			1,929			477
Operating Expenses:
Operation and Maintenance				4,750			3,779			971				8,466			6,960			1,506
Property, Franchise and Other Taxes				123			545			(422		)		240			807			(567		)
Depreciation, Depletion and Amortization				157			200			(43		)		315			400			(85		)
				5,030			4,524			506				9,021			8,167			854
Operating Loss				(3,852		)	(3,343		)	(509		)		(6,615		)	(6,238		)	(377		)
Other Income (Expense):
Interest Income				24,028			23,892			136				48,635			47,196			1,439
Other Income				4,197			745			3,452				4,212			619			3,593
Interest Expense on Long-Term Debt				(22,766		)	(22,786		)	20				(45,651		)	(44,234		)	(1,417		)
Other Interest Expense				(805		)	(718		)	(87		)		(1,548		)	(1,631		)	83
Income (Loss) Before Income Taxes				802			(2,210		)	3,012				(967		)	(4,288		)	3,321
Income Tax Benefit				(1,735		)	(1,560		)	(175		)		(2,879		)	(2,711		)	(168		)
Net Income (Loss)				$	2,537		$	(650	)	$	3,187			$	1,912		$	(1,577	)	$	3,489
Net Income (Loss) Per Share (Diluted)				$	0.03		$	(0.01	)	$	0.04			$	0.03		$	(0.02	)	$	0.05
				Three Months Ended										Six Months Ended
				March 31,										March 31,
INTERSEGMENT ELIMINATIONS				2014			2013			Variance				2014			2013			Variance
Intersegment Revenues				$	(46,842	)	$	(39,171	)	$	(7,671	)		$	(87,855	)	$	(72,732	)	$	(15,123	)
Operating Expenses:
Purchased Gas				(29,665		)	(29,200		)	(465		)		(54,452		)	(56,165		)	1,713
Operation and Maintenance				(17,177		)	(9,971		)	(7,206		)		(33,403		)	(16,567		)	(16,836		)
				(46,842		)	(39,171		)	(7,671		)		(87,855		)	(72,732		)	(15,123		)
Operating Income				—			—			—				—			—			—
Other Income (Expense):
Interest Income				(24,398		)	(24,364		)	(34		)		(49,123		)	(47,795		)	(1,328		)
Other Interest Expense				24,398			24,364			34				49,123			47,795			1,328
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
				2014					2013					(Decrease)				2014					2013					(Decrease)
Capital Expenditures:
Exploration and Production				$	164,987		(1)		$	132,886		(3)		$	32,101			$	276,328		(1)(2)		$	260,538		(3)(4)		$	15,790
Pipeline and Storage				19,155			(1)		11,614			(3)		7,541				29,093			(1)(2)		37,365			(3)(4)		(8,272		)
Gathering				24,823			(1)		8,966			(3)		15,857				48,285			(1)(2)		22,524			(3)(4)		25,761
Utility				19,921			(1)		14,132			(3)		5,789				41,581			(1)(2)		28,496			(3)(4)		13,085
Energy Marketing				70					122					(52		)		113					305					(192		)
Total Reportable Segments				228,956					167,720					61,236				395,400					349,228					46,172
All Other				80					(14		)			94				140					91					49
Corporate				54					—					54				70					8					62
Total Capital Expenditures				$	229,090				$	167,706				$	61,384			$	395,610				$	349,327				$	46,283

		(1)		Capital expenditures for the quarter and six months ended March 31, 2014, include accounts payable and accrued liabilities related to capital expenditures of $90.3 million, $5.1 million, $8.7 million, and $5.3 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 March 31, 2014, since they represent non-cash investing activities at that date.
		(2)		Capital expenditures for the six months ended March 31, 2014, exclude capital expenditures of $58.5 million, $5.6 million, $6.7 million and $10.3 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, 2013 and paid during the six months ended March 31, 2014. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2013, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2014.
		(3)		Capital expenditures for the quarter and six months ended March 31, 2013, include accounts payable and accrued liabilities related to capital expenditures of $66.2 million, $7.8 million, $2.4 million, and $0.7 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 March 31, 2013, since they represent non-cash investing activities at that date.
		(4)		Capital expenditures for the six months ended March 31, 2013, exclude capital expenditures of $38.9 million, $12.7 million, $12.7 million and $3.2 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, 2012 and paid during the six months ended March 31, 2013. These amounts were excluded from the Consolidated Statements of Cash Flows at September 30, 2012, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2013.

DEGREE DAYS
												Percent Colder
												(Warmer) Than:
Three Months Ended March 31						Normal		2014		2013		Normal (1)		Last Year (1)
Buffalo, NY						3,290		3,826		3,145		16.3		21.7
Erie, PA						3,108		3,718		3,067		19.6		21.2
Six Months Ended March 31
Buffalo, NY						5,543		6,116		5,181		10.3		18.0
Erie, PA						5,152		5,828		4,965		13.1		17.4

		(1)		Percents compare actual 2014 degree days to normal degree days and actual 2014 degree days to actual 2013 degree days.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
				Three Months Ended												Six Months Ended
				March 31,												March 31,
												Increase												Increase
				2014				2013				(Decrease)				2014				2013				(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia				31,490				23,983				7,507				63,543				43,479				20,064
West Coast				841				716				125				1,626				1,461				165
Total Production				32,331				24,699				7,632				65,169				44,940				20,229
Average Prices (Per Mcf)
Appalachia				$	4.44			$	3.29			$	1.15			$	3.86			$	3.32			$	0.54
West Coast (3)				7.57				6.38				1.19				6.77				6.46				0.31
Weighted Average				4.52				3.38				1.14				3.93				3.42				0.51
Weighted Average after Hedging				3.89				4.06				(0.17		)		3.79				4.12				(0.33		)
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia				7				6				1				17				12				5
West Coast				748				685				63				1,453				1,393				60
Total Production				755				691				64				1,470				1,405				65
Average Prices (Per Barrel)
Appalachia				$	94.15			$	95.20			$	(1.05	)		$	95.21			$	91.72			$	3.49
West Coast				99.98				106.29				(6.31		)		98.75				103.14				(4.39		)
Weighted Average				99.93				106.19				(6.26		)		98.71				103.05				(4.34		)
Weighted Average after Hedging				96.85				99.08				(2.23		)		95.47				97.86				(2.39		)
Total Production (Mmcfe)				36,861				28,845				8,016				73,989				53,370				20,619
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)				$	0.46			$	0.59			$	(0.13	)		$	0.44			$	0.59			$	(0.15	)
Lease Operating and Transportation Expense per Mcfe (1)(2)				$	1.08			$	0.97			$	0.11			$	1.02			$	1.00			$	0.02
Depreciation, Depletion & Amortization per Mcfe (1)				$	1.88			$	2.05			$	(0.17	)		$	1.90			$	2.08			$	(0.18	)

		(1)		Refer to page 18 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
		(2)		Amounts include transportation expense of $0.45 and $0.37 per Mcfe for the three months ended March 31, 2014 and March 31, 2013, respectively. Amounts include transportation expense of $0.43 and $0.34 per Mcfe for the six months ended March 31, 2014 and March 31, 2013, respectively.
		(3)		Prices reflect revenues from gas produced on the West Coast, including natural gas liquids.

NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for the Remaining Six Months of Fiscal 2014

SWAPS

Volume

Average Hedge Price

Oil

Midway Sunset (MWSS)

312,000

BBL

$

95.68 / BBL

Brent

672,000

BBL

$

102.32 / BBL

Total

984,000

BBL

$

100.22 / BBL

Gas

NYMEX

44,100,000

MMBTU

$

4.07 / MMBTU

Dominion Transmission Appalachian (DOM)

14,400,000

MMBTU

$

4.06 / MMBTU

Southern California City Gate (SoCal)

600,000

MMBTU

$

4.35 / MMBTU

Total

59,100,000

MMBTU

$

4.07 / MMBTU

Hedging Summary for Fiscal 2015

SWAPS

Volume

Average Hedge Price

Oil

MWSS

258,000

BBL

$

92.10 / BBL

Brent

903,000

BBL

$

98.42 / BBL

NYMEX

396,000

BBL

$

90.14 / BBL

Total

1,557,000

BBL

$

95.27 / BBL

Gas

NYMEX

69,590,000

MMBTU

$

4.16 / MMBTU

DOM

18,720,000

MMBTU

$

3.88 / MMBTU

SoCal

1,200,000

MMBTU

$

4.35 / MMBTU

Total

89,510,000

MMBTU

$

4.10 / MMBTU

Hedging Summary for Fiscal 2016

SWAPS

Volume

Average Hedge Price

Oil

MWSS

36,000

BBL

$

92.10 / BBL

Brent

933,000

BBL

$

95.18 / BBL

NYMEX

300,000

BBL

$

86.09 / BBL

Total

1,269,000

BBL

$

92.95 / BBL

Gas

NYMEX

37,740,000

MMBTU

$

4.25 / MMBTU

DOM

18,840,000

MMBTU

$

3.88 / MMBTU

Total

56,580,000

MMBTU

$

4.12 / MMBTU

Hedging Summary for Fiscal 2017

SWAPS

Volume

Average Hedge Price

Oil

Brent

384,000

BBL

$

92.30 / BBL

Gas

NYMEX

24,960,000

MMBTU

$

4.49 / MMBTU

DOM

18,840,000

MMBTU

$

3.88 / MMBTU

Total

43,800,000

MMBTU

$

4.23 / MMBTU

Hedging Summary for Fiscal 2018

SWAPS

Volume

Average Hedge Price

Oil

Brent

75,000

BBL

$

91.00 / BBL

Gas

NYMEX

5,550,000

MMBTU

$

4.59 / MMBTU

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Gross Wells in Process of Drilling
Six Months Ended March 31, 2014
															Total
					East						West				Company
Wells in Process - Beginning of Period
Exploratory					1.000		(1)				0.000				1.000
Developmental					72.000		(1)(2)				0.000				72.000
Wells Commenced
Exploratory					4.000						2.000				6.000
Developmental					24.000						45.000				69.000
Wells Completed
Exploratory					1.000						2.000				3.000
Developmental					17.000						41.000				58.000
Wells Plugged & Abandoned
Exploratory					0.000						0.000				0.000
Developmental					2.000						1.000				3.000
Wells in Process - End of Period
Exploratory					4.000						0.000				4.000
Developmental					77.000						3.000				80.000

(1)		Gross exploratory wells were increased by 1 and developmental wells were decreased by 1.
(2)		Beginning of year number has been adjusted to remove 3 developmental wells.

Net Wells in Process of Drilling
Six Months Ended March 31, 2014
															Total
					East						West				Company
Wells in Process - Beginning of Period
Exploratory					1.000		(1)				0.000				1.000
Developmental					57.000		(1)(2)				0.000				57.000
Wells Commenced
Exploratory					3.771						1.533				5.304
Developmental					24.000						45.000				69.000
Wells Completed
Exploratory					1.000						1.533				2.533
Developmental					17.000						41.000				58.000
Wells Plugged & Abandoned
Exploratory					0.000						0.000				0.000
Developmental					2.000						1.000				3.000
Wells in Process - End of Period
Exploratory					3.771						0.000				3.771
Developmental					62.000						3.000				65.000

(1)		Net exploratory wells were increased by 1 and developmental wells were decreased by 1.
(2)		Beginning of year number has been adjusted to remove 3 developmental wells.

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
				2014			2013			(Decrease)			2014			2013			(Decrease)
Firm Transportation - Affiliated				48,163			43,228			4,935			77,849			71,462			6,387
Firm Transportation - Non-Affiliated				176,815			131,547			45,268			338,785			226,726			112,059
Interruptible Transportation				1,458			714			744			2,780			1,966			814
				226,436			175,489			50,947			419,414			300,154			119,260
Gathering Volume - (MMcf)
				Three Months Ended									Six Months Ended
				March 31,									March 31,
										Increase									Increase
				2014			2013			(Decrease)			2014			2013			(Decrease)
Gathered Volume - Affiliated				30,955			21,918			9,037			61,969			38,729			23,240
Utility Throughput - (MMcf)
				Three Months Ended									Six Months Ended
				March 31,									March 31,
										Increase									Increase
				2014			2013			(Decrease)			2014			2013			(Decrease)
Retail Sales:
Residential Sales				30,640			25,372			5,268			47,647			40,525			7,122
Commercial Sales				4,759			3,871			888			7,119			5,838			1,281
Industrial Sales				297			405			(108	)		389			706			(317	)
				35,696			29,648			6,048			55,155			47,069			8,086
Off-System Sales				1,832			4,288			(2,456	)		3,810			6,716			(2,906	)
Transportation				34,157			27,616			6,541			55,347			46,254			9,093
				71,685			61,552			10,133			114,312			100,039			14,273
Energy Marketing Volume
				Three Months Ended									Six Months Ended
				March 31,									March 31,
										Increase									Increase
				2014			2013			(Decrease)			2014			2013			(Decrease)
Natural Gas (MMcf)				20,910			17,393			3,517			36,918			27,758			9,160

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2014 EARNINGS GUIDANCE AND SENSITIVITIES
																Earnings per share sensitivity to changes
Fiscal 2014 (Diluted earnings per share guidance*)																from prices used in guidance* ^
																$0.50 change per MMBtu gas										$5 change per Bbl oil
				Range												Increase					Decrease					Increase					Decrease
Consolidated Earnings				$	3.40		-			$	3.55					+	$	0.07			-	$	0.07			+	$	0.02			-	$	0.02

* Please refer to forward looking statement footnote beginning at page 9 of document.

^ This sensitivity table is current as of May 8, 2014 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 its fiscal 2014 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $4.50 per MMBtu for natural gas and $95 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.

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 Operating Results and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

Management defines Operating Results as reported GAAP earnings before items impacting comparability. The table at page 3 of this report reconciles National Fuel's reported GAAP earnings to Operating Results for the three and six months ended March 31, 2014 and 2013.

Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, depreciation, depletion and amortization, interest and other income, impairments, items impacting comparability and income taxes.

The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and six months ended March 31, 2014:

				Three Months Ended								Six Months Ended
				March 31,								March 31,
				2014				2013				2014				2013
(in thousands)
Reported GAAP Earnings				$	95,211			$	85,720			$	177,463			$	153,664
Depreciation, Depletion and Amortization				89,975				80,030				183,089				152,361
Interest and Other Income				(5,372		)		(1,227		)		(6,303		)		(4,027		)
Interest Expense				24,141				23,312				47,975				45,829
Income Taxes				66,095				55,186				121,520				98,735
Plugging and Abandonment Accrual				3,761				—				5,002				—
Adjusted EBITDA				$	273,811			$	243,021			$	528,746			$	446,562

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Quarter Ended March 31 (unaudited)						2014				2013
Operating Revenues						$	756,242,000			$	597,826,000
Net Income Available for Common Stock						$	95,211,000			$	85,720,000
Earnings Per Common Share:
Basic						$	1.14			$	1.03
Diluted						$	1.12			$	1.02
Weighted Average Common Shares:
Used in Basic Calculation						83,856,120				83,498,508
Used in Diluted Calculation						84,837,123				84,159,734
Six Months Ended March 31 (unaudited)
Operating Revenues						$	1,306,314,000			$	1,050,680,000
Net Income Available for Common Stock						$	177,463,000			$	153,664,000
Earnings Per Common Share:
Basic						$	2.12			$	1.84
Diluted						$	2.09			$	1.83
Weighted Average Common Shares:
Used in Basic Calculation						83,781,085				83,443,805
Used in Diluted Calculation						84,787,610				84,127,705
Twelve Months Ended March 31 (unaudited)
Operating Revenues						$	2,085,185,000			$	1,692,801,000
Net Income Available for Common Stock						$	283,800,000			$	245,650,000
Earnings Per Common Share:
Basic						$	3.39			$	2.95
Diluted						$	3.35			$	2.93
Weighted Average Common Shares:
Used in Basic Calculation						83,687,056				83,355,109
Used in Diluted Calculation						84,601,418				83,928,901