0000070145false00000701452023-08-022023-08-02

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2023

NATIONAL FUEL GAS COMPANY
(Exact name of registrant as specified in its charter)
New Jersey1-388013-1086010
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
6363 Main Street
Williamsville,New York14221
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (716) 857-7000

Former name or former address, if changed since last report: Not Applicable

    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $1.00 per shareNFGNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02    Results of Operations and Financial Condition.

On August 2, 2023, National Fuel Gas Company (the “Company”) issued a press release regarding its earnings for the quarter and nine months ended June 30, 2023. A copy of the press release is furnished as part of this Current Report as Exhibit 99.

Neither the furnishing of the press release as an exhibit to this Current Report nor the inclusion in such press release of any reference to the Company’s internet address shall, under any circumstances, be deemed to incorporate the information available at such internet address into this Current Report. The information available at the Company’s internet address is not part of this Current Report or any other report filed or furnished by the Company with the Securities and Exchange Commission.

In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), the press release furnished as part of this Current Report as Exhibit 99 contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, 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 prepared in accordance with GAAP.

Certain statements contained herein or in the press release furnished as part of this Current Report, including statements 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” and “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. There can be no assurance that the Company’s projections will in fact be achieved nor do these projections reflect any acquisitions or divestitures that may occur in the future. While the Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those projected in forward-looking statements. Furthermore, each forward-looking statement speaks only as of the date on which it is made. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the



Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company’s ability to complete planned strategic transactions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.


Item 9.01    Financial Statements and Exhibits.

    (d)    Exhibits
Exhibit 104
Cover Page Interactive Data File (embedded within the Inline XBRL document)






SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


NATIONAL FUEL GAS COMPANY
By:/s/ Michael W. Reville
Michael W. Reville
General Counsel and Secretary

Dated: August 3, 2023



Exhibit 99

exhibit998kimagea15a.jpg
6363 Main Street/Williamsville, NY 14221
Release Date:Immediate August 2, 2023Brandon J. Haspett
Investor Relations
716-857-7697
Timothy J. Silverstein
Treasurer
716-857-6987

NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS AND ANNOUNCES PRELIMINARY GUIDANCE FOR FISCAL 2024

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2023 fiscal year and for the nine months ended June 30, 2023.

FISCAL 2023 THIRD QUARTER SUMMARY
GAAP net income of $92.6 million, or $1.00 per share, compared to GAAP net income of $108.2 million, or $1.17 per share, in the prior year.
Adjusted operating results of $93.4 million, or $1.01 per share, compared to $141.9 million, or $1.54 per share, in the prior year (see non-GAAP reconciliation on page 2).
E&P segment net Appalachian natural gas production of 94.7 Bcfe, an increase of 5.9 Bcfe, or 7%, compared to the prior year, and a 2% increase when compared to fiscal 2023 second quarter.
Successfully closed on the purchase of three separate upstream assets that total approximately 36,000 net acres with flowing net production of approximately 16 million cubic feet per day in the E&P segment’s Eastern Development Area, for total consideration of $138.9 million.
The Pennsylvania Public Utility Commission approved a joint settlement in the Utility segment’s Pennsylvania rate case proceeding that, effective August 1, 2023, will increase annual base rate delivery revenues by $23 million and, among other stipulations, includes a newly implemented weather normalization adjustment mechanism.
The Company is narrowing its fiscal 2023 earnings guidance to a range of $5.15 to $5.25 per share, excluding items impacting comparability, and initiating its fiscal 2024 earnings guidance with a range of $5.50 to $6.00 per share, an increase of 11% from fiscal 2023, at the midpoint (see Guidance Summary on page 8).

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel achieved strong operational results in the third quarter, but lower natural gas price realizations at Seneca and higher operating expenses across our regulated operations weighed on our financial results. Looking ahead to fiscal 2024, we expect significant earnings growth, driven by our integrated development program coupled with improved earnings at our rate-regulated businesses as a result of rate case outcomes.

“Longer-term, our continued investment in the modernization of our rate-regulated infrastructure, along with a disciplined approach to Seneca’s development program and an improved long-term outlook for natural gas prices, positions the Company well to deliver shareholder value through future earnings growth and increasing free cash flow generation.”





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RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS
Three Months EndedNine Months Ended
June 30,June 30,
(in thousands except per share amounts)2023202220232022
Reported GAAP Earnings$92,620 $108,158 $403,189 $407,879 
Items impacting comparability:
Unrealized (gain) loss on derivative asset (E&P)1,430 — 3,702 — 
Tax impact of unrealized (gain) loss on derivative asset(392)— (1,015)— 
Unrealized (gain) loss on other investments (Corporate / All Other)
(355)3,434 (1,632)10,093 
Tax impact of unrealized (gain) loss on other investments
74 (721)343 (2,120)
Items impacting comparability from West Coast asset sale (E&P) (1)
— 41,589 — 41,589 
Tax impact of items impacting comparability from West Coast asset sale (1)
— (10,533)— (10,533)
Reduction of other post-retirement regulatory liability (Utility)— — — (18,533)
Tax impact of reduction of other post-retirement regulatory liability— — — 3,892 
Adjusted Operating Results$93,377 $141,927 $404,587 $432,267 
Reported GAAP Earnings Per Share$1.00 $1.17 $4.37 $4.43 
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax (E&P)0.01 — 0.03 — 
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)
— 0.03 (0.01)0.08 
Items impacting comparability from West Coast asset sale, net of tax (E&P) (1)
— 0.34 — 0.34 
Reduction of other post-retirement regulatory liability, net of tax (Utility)— — — (0.16)
Rounding— — (0.01)— 
Adjusted Operating Results Per Share$1.01 $1.54 $4.38 $4.69 

(1) Refer to non-GAAP reconciliation on page 24 for a separate breakout of items impacting comparability from the West Coast asset sale.

DISCUSSION OF GUIDANCE UPDATE

National Fuel is revising its fiscal 2023 earnings guidance range and is now projecting that earnings, excluding items impacting comparability, will be within the range of $5.15 to $5.25 per share. This updated range reflects the results of the third quarter, along with updated assumptions for the balance of the year, as detailed on page 8.

The Exploration and Production segment’s fiscal 2023 net production is now expected to be in the range of 370 to 380 Bcfe, which reflects the impacts of over 5 Bcfe of price-related curtailments and volumes shut-in due to the operational impacts of low in-basin pricing and third-party pipeline system constraints during the third quarter. This guidance range does not incorporate any additional price-related curtailments over the remainder of the fiscal year. Seneca currently has firm sales contracts in place for approximately 95% of its projected remaining fiscal 2023 natural gas production, significantly limiting its exposure to in-basin markets. Approximately 80% of expected remaining production is either matched by a financial hedge or was entered into at a fixed price.

The Company is also initiating preliminary guidance for fiscal 2024 with earnings projected to be within a range of $5.50 to $6.00 per share, or $5.75 per share at the midpoint of the range, an increase of 11% from the midpoint of the revised fiscal 2023 guidance range. Drivers of the expected increase in earnings include anticipated higher natural gas price realizations, further growth in natural gas production and the associated impact on Gathering segment revenues, and substantial growth in earnings from the regulated segments expected as a result of anticipated base rate increases.

Seneca’s fiscal 2024 net production forecast is increasing to an expected range of 390 to 410 Bcfe, an increase of 7% versus fiscal 2023 at the midpoint of the guidance range. In addition, the Company is assuming NYMEX natural gas prices of $3.25 per MMBtu for the year, which will drive expected natural gas price realizations after hedging to increase by approximately $0.10 per Mcf from its estimated fiscal 2023 realizations. Overall, Seneca has firm sales contracts in place for approximately 88% of its expected fiscal 2024 natural gas production, significantly limiting its exposure to in-basin markets. Approximately 67% of expected production is supported by financial hedges or fixed price contracts, limiting exposure to potential swings in natural gas prices in fiscal 2024.

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The Company’s consolidated capital expenditures in fiscal 2024 are expected to be in a range of $865 million to $975 million, which at the midpoint, is generally in line with its fiscal 2023 guidance.
Capital expenditures in the Company’s rate-regulated Pipeline and Storage and Utility segments are expected to be in the range of $250 million to $290 million for fiscal 2024, an increase of $25 million from fiscal 2023 at the midpoint. Most of this spending will be focused on ongoing infrastructure modernization programs that are geared toward enhancing the safety, reliability, and resiliency of the Company's critical infrastructure, as well as contributing to the ongoing reduction in the Company’s emissions profile. The ability to ramp up growth investments in these businesses provides for the ability to generate stable, predictable, value-accretive returns, and is an efficient means of deploying excess free cash flow generated across the Company to the long-term benefit of shareholders.

In the Exploration and Production segment, Seneca’s activity is expected to further moderate as it continues a planned transition that targets a maintenance-to-low single-digit, long-term production growth profile. Capital spending for fiscal 2024 is expected to be in the range of $525 million to $575 million, a decrease of 7% from fiscal 2023 at the midpoint. In addition to moderating long-term capital spending levels, Seneca is shifting the vast majority of its development activity to its highly prolific Eastern Development Area where, as a result of acquisitions over the past three years, it has a significant inventory of well locations that generate superior returns. As part of this transition, costs related to water management will lead to modestly higher capital spending on a per foot basis as the transition is fully executed. Further, Seneca plans to spend more than $35 million of one-time costs in fiscal 2024 related to this transition as it bolsters its seismic inventory, expands its produced water infrastructure, and increases its leasehold position in Lycoming County. In addition, the Gathering segment will continue its multi-year build out of key infrastructure in the Tioga County region and as a result, expects spending to be in the range of $90 million to $110 million, which is generally consistent with the current fiscal year.

Additional details on the Company’s updated forecast assumptions and business segment guidance for fiscal 2023 and fiscal 2024 are outlined in the table on page 8.

DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended June 30, 2023 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the nine months ended June 30, 2023 are summarized on pages 11 and 12). It may be helpful to refer to those tables while reviewing this discussion.

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

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.
Three Months Ended
June 30
(in thousands)20232022Variance
GAAP Earnings$43,329 $56,497 $(13,168)
Unrealized (gain) loss on derivative asset, net of tax1,038 — 1,038 
Gain on sale of West Coast assets, net of tax— (9,511)9,511 
Loss from discontinuance of crude oil cash flow hedges, net of tax— 33,329 (33,329)
Transaction and severance costs related to West Coast asset sale, net of tax— 7,238 (7,238)
Adjusted Operating Results$44,367 $87,553 $(43,186)
Adjusted EBITDA$134,236 $184,622 $(50,386)

Seneca’s third quarter GAAP earnings decreased $13.2 million versus the prior year. Last year’s third quarter earnings included several one-time items impacting comparability shown in the table above related to the divestiture of Seneca’s
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California assets in June 2022 that did not recur this year. Earnings were also impacted by an unrealized loss of $1.4 million ($1.0 million after-tax) recognized during the current-year third quarter from a reduction in the implied fair value of an asset related to the contingent consideration in connection with this divestiture. Excluding these items, Seneca’s earnings decreased $43.2 million. Higher natural gas production was more than offset by lower Appalachian realized natural gas prices and the loss of earnings related to the divestiture of Seneca’s crude oil production in California.

Seneca produced 94.8 Bcfe during the third quarter, an increase of 2.3 Bcfe, or 3%, from the prior year. Despite the combined impact of approximately 5 Bcfe of price-related curtailments and other volumes shut-in due to the operational impacts of low in-basin pricing and third-party pipeline system constraints, production in Appalachia increased 5.9 Bcfe, or 7%. This increase was partially offset by a 3.5 Bcfe decrease in production related to the aforementioned California sale.

Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.27 per Mcf, a decrease of $0.60 per Mcf from the prior year. Lower natural gas prices, before the impact of hedging, were partially offset by an increase in the weighted average hedge price compared to the prior-year third quarter.

On an absolute basis, lease operating and transportation expense (“LOE”) decreased $17.7 million primarily due to the California sale, slightly offset by increases in LOE from higher well repair costs in Appalachia. LOE expense includes $54.3 million in intercompany expense for gathering and compression services used to connect Seneca’s production to sales points along interstate pipelines. On a per unit basis, LOE was $0.65 per Mcfe, a decrease of $0.21 per Mcfe from the prior year.

The decrease in Seneca’s other operating expense of $6.5 million was primarily due to the prior-year third quarter, non-recurring accrual of plugging and abandonment expenses related to certain formerly owned offshore Gulf of Mexico wells that were sold in prior years, as well as the sale of Seneca’s California assets. Other taxes decreased $4.8 million largely attributable to both the impact of the sale of Seneca's California assets as well as lower Impact Fees in Pennsylvania due to the decrease in NYMEX natural gas prices.

Depreciation, depletion and amortization (“DD&A”) expense increased $5.4 million due to higher natural gas production and a higher per unit DD&A rate, which was driven by an increase in capitalized costs in Seneca’s full cost pool. DD&A expense was $0.64 per Mcfe, an increase of $0.04 per Mcfe from the prior year.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.
Three Months Ended
June 30
(in thousands)20232022Variance
GAAP Earnings$23,813 $26,599 $(2,786)
Adjusted EBITDA$57,636 $62,565 $(4,929)

The Pipeline and Storage segment’s third quarter GAAP earnings decreased $2.8 million versus the prior year primarily due to lower operating revenues and higher operation and maintenance (“O&M”) expense, partially offset by an increase in other income. The decrease in operating revenues of $3.2 million was primarily attributable to contract expirations, partially offset by an increase in new short-term contracts. O&M expense increased $1.6 million primarily due to higher pipeline integrity and personnel costs. The increase in other income of $1.7 million was primarily attributable to a higher weighted average interest rate on intercompany short-term notes receivables.

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Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.
Three Months Ended
June 30
(in thousands)20232022Variance
GAAP Earnings$24,135 $24,658 $(523)
Adjusted EBITDA$46,032 $46,151 $(119)

The Gathering segment’s third quarter GAAP earnings decreased $0.5 million versus the prior year primarily due to higher O&M expense and higher income tax expense, both of which were almost entirely offset by higher operating revenues. Operating revenues increased $3.0 million, or 5%, which was the result of an 8.9 Bcf increase in gathered volumes due to an increase in natural gas production from both Seneca and non-affiliated parties. The increase in O&M expense of $3.1 million was due to an increase in compressor station preventative maintenance activity and higher compression leasing expenses, as well as increases in personnel expenses and costs for materials. The increase in material costs primarily reflects a higher amount of materials being purchased as a result of the increase in gathered volume, and to a lesser extent, rising costs from inflation. The increase in income tax expense was primarily driven by a higher effective state income tax rate.

Downstream Business

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.
Three Months Ended
June 30
(in thousands)20232022Variance
GAAP Earnings$37 $4,622 $(4,585)
Adjusted EBITDA$20,912 $27,042 $(6,130)

The Utility segment’s third quarter GAAP earnings decreased $4.6 million versus the prior year primarily due to lower customer margins (operating revenues less purchased gas sold), as well as increases in O&M and interest expense, partially offset by a decrease in non-service pension and OPEB costs and higher other income.

The decline in customer margin of $2.9 million was due primarily to a $2.6 million reduction in base rates in New York as a result of a rate proceeding that became effective October 1, 2022 which temporarily reduced the Utility’s recovery of pension and other post-employment benefit (“OPEB”) expenses to zero. In addition to lowering rates, the proceeding mandated a corresponding decrease in pension and OPEB expense, most of which had been previously recorded in “below the line” non-service pension and OPEB costs. This decrease was partially offset by higher revenues from the Company’s system modernization and improvement tracking mechanisms in its New York service territory.

O&M expense increased by $3.7 million due primarily to higher personnel costs and an increase in legal and consulting expenses. An increase in the cost of materials and transportation expenses, primarily as a result of rising costs from inflation, also contributed to higher O&M expense for the quarter. Interest expense increased $2.4 million due primarily to a higher weighted average interest rate on intercompany short-term borrowings. The increase in other income of $1.3 million was primarily attributable to interest earned on deferred gas costs.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated combined earnings of $1.3 million in the current quarter, which was a $5.5 million increase over the combined net loss of $4.2 million in the prior-year third quarter. The increase in earnings was primarily driven by unrealized gains on investment securities recognized in the current
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quarter compared to unrealized losses on investment securities recognized in the prior-year third quarter. Also contributing to the increase were changes in cash surrender value of life insurance policies, which increased in value $1.1 million during the current quarter compared to a decrease in value of less than $0.1 million during the prior-year third quarter.


EARNINGS TELECONFERENCE

The Company will host a conference call on Thursday, August 3, 2023, at 10 a.m. Eastern Time to discuss this announcement. To pre-register for this call (recommended), please visit https://conferencingportals.com/event/ygNxHFJo. After registering, you will receive your access details via email. To join by telephone on the day of the call, dial U.S. toll free 1-888–330–2513 and provide Conference ID 47961. The teleconference will be simultaneously webcast online and can be accessed on the NFG Investor Relations website at investor.nationalfuelgas.com. An audio replay of the teleconference call will be available until Thursday, August 10, 2023. To access the telephone replay, dial U.S. toll free 1-800-770-2030 and provide Conference ID 47961.

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

Analyst Contact:Brandon J. Haspett716-857-7697
Media Contact:Karen L. Merkel716-857-7654
Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company’s ability to complete planned strategic transactions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate
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change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.
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NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2023 and initiating guidance for fiscal 2024. Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2023 and fiscal 2024 are outlined in the table below.

The revised earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the nine months ended June 30, 2023, including: (1) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.03 per share; and (2) after-tax unrealized gains on other investments, which increased earnings by $0.01 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the three months ending September 30, 2023, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.
Updated FY 2023 GuidancePreliminary FY 2024 Guidance
Adjusted Consolidated Earnings per Share, excluding items impacting comparability$5.15 to $5.25$5.50 to $6.00
Consolidated Effective Tax Rate~ 25.5%~ 25.5 - 26%
Capital Expenditures (Millions)*
    Exploration and Production$575 - $600$525 - $575
    Pipeline and Storage$110 - $130$120 - $140
    Gathering$95 - $105$90 - $110
    Utility$125 - $135$130 - $150
    Consolidated Capital Expenditures$905 - $970$865 - $975
Exploration & Production Segment Guidance**
    Commodity Price Assumptions
    NYMEX natural gas price
$2.60 /MMBtu
$3.25 /MMBtu
    Appalachian basin spot price
$1.60 /MMBtu
$2.45 /MMBtu
    Production (Bcfe)370 to 380390 to 410
    E&P Operating Costs ($/Mcfe)
    LOE$0.67 - $0.68$0.69 - $0.71
    G&A ~$0.18$0.17 - $0.19
    DD&A$0.62 - $0.64$0.66 - $0.70
Other Business Segment Guidance (Millions)
    Gathering Segment Revenues$225 - $235$240 - $260
    Pipeline and Storage Segment Revenues $370 - $380$380 - $420

* Capital expenditures guidance for fiscal 2023 excludes capital related to acquisitions announced during the fiscal year.
** Fiscal 2023 commodity price assumptions are for the remaining three months of the fiscal year.











Page 9.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*
Third quarter 2022 GAAP earnings$56,497 $26,599 $24,658 $4,622 $(4,218)$108,158 
Items impacting comparability:
Gain on sale of West Coast assets(12,736)(12,736)
Tax impact of gain on sale of West Coast assets3,225 3,225 
Loss from discontinuance of crude oil cash flow hedges44,632 44,632 
Tax impact of loss from discontinuance of crude oil cash flow hedges(11,303)(11,303)
Transaction and severance costs related to West Coast asset sale9,693 9,693 
Tax impact of transaction and severance costs related to West Coast asset sale(2,455)(2,455)
Unrealized (gain) loss on other investments3,434 3,434 
Tax impact of unrealized (gain) loss on other investments
(721)(721)
Third quarter 2022 adjusted operating results87,553 26,599 24,658 4,622 (1,505)141,927 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production12,371 12,371 
Higher (lower) crude oil production(31,860)(31,860)
Higher (lower) realized natural gas prices, after hedging(44,649)(44,649)
Midstream Revenues
Higher (lower) operating revenues(2,491)2,350 (141)
Downstream Margins***
Impact of new rates****(2,015)(2,015)
System modernization and improvement tracker revenues866 866 
Operating Expenses
Lower (higher) lease operating and transportation expenses13,994 13,994 
Lower (higher) operating expenses6,138 (1,239)(2,432)(3,105)(638)
Lower (higher) property, franchise and other taxes3,807 3,807 
Lower (higher) depreciation / depletion(4,304)(324)(314)(4,942)
Other Income (Expense)
(Higher) lower other deductions533 1,292 3,188 5,013 
(Higher) lower interest expense759 435 (2,154)2,199 1,239 
Income Taxes
Lower (higher) income tax expense / effective tax rate(370)187 (631)(884)146 (1,552)
All other / rounding395 (211)69 (481)185 (43)
Third quarter 2023 adjusted operating results44,367 23,813 24,135 37 1,025 93,377 
Items impacting comparability:
Unrealized gain (loss) on derivative asset(1,430)(1,430)
Tax impact of unrealized gain (loss) on derivative asset392 392 
Unrealized gain (loss) on other investments355 355 
Tax impact of unrealized gain (loss) on other investments(74)(74)
Third quarter 2023 GAAP earnings$43,329 $23,813 $24,135 $37 $1,306 $92,620 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and will have no earnings impact for the year ended September 30, 2023.




Page 10.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
ProductionStorageGatheringUtilityAll OtherConsolidated*
Third quarter 2022 GAAP earnings per share$0.61 $0.29 $0.27 $0.05 $(0.05)$1.17 
Items impacting comparability:
Gain on sale of West Coast assets, net of tax(0.10)(0.10)
Loss from discontinuance of crude oil cash flow hedges, net of tax0.36 0.36 
Transaction and severance costs related to West Coast asset sale, net of tax0.08 0.08 
Unrealized (gain) loss on other investments, net of tax0.03 0.03 
Third quarter 2022 adjusted operating results per share0.95 0.29 0.27 0.05 (0.02)1.54 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production0.13 0.13 
Higher (lower) crude oil production(0.35)(0.35)
Higher (lower) realized natural gas prices, after hedging(0.48)(0.48)
Midstream Revenues
Higher (lower) operating revenues(0.03)0.03 — 
Downstream Margins***
Impact of new rates****(0.02)(0.02)
System modernization and improvement tracker revenues0.01 0.01 
Operating Expenses
Lower (higher) lease operating and transportation expenses0.15 0.15 
Lower (higher) operating expenses0.07 (0.01)(0.03)(0.03)— 
Lower (higher) property, franchise and other taxes0.04 0.04 
Lower (higher) depreciation / depletion(0.05)— — (0.05)
Other Income (Expense)
(Higher) lower other deductions0.01 0.01 0.03 0.05 
(Higher) lower interest expense0.01 — (0.02)0.02 0.01 
Income Taxes
Lower (higher) income tax expense / effective tax rate— — (0.01)(0.01)— (0.02)
All other / rounding— — — (0.01)0.01 — 
Third quarter 2023 adjusted operating results per share0.48 0.26 0.26 — 0.01 1.01 
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax(0.01)(0.01)
Unrealized gain (loss) on other investments, net of tax— — 
Third quarter 2023 GAAP earnings per share$0.47 $0.26 $0.26 $— $0.01 $1.00 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and will have no earnings impact for the year ended September 30, 2023.












Page 11.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*
Nine months ended June 30, 2022 GAAP earnings$189,987 $77,236 $69,887 $79,800 $(9,031)$407,879 
Items impacting comparability:
Reduction of other post-retirement regulatory liability(18,533)(18,533)
Tax impact of reduction of other post-retirement regulatory liability3,892 3,892 
Gain on sale of West Coast assets(12,736)(12,736)
Tax impact of gain on sale of West Coast assets3,225 3,225 
Loss from discontinuance of crude oil cash flow hedges44,632 44,632 
Tax impact of loss from discontinuance of crude oil cash flow hedges(11,303)(11,303)
Transaction and severance costs related to West Coast asset sale9,693 9,693 
Tax impact of transaction and severance costs related to West Coast asset sale(2,455)(2,455)
Unrealized (gain) loss on other investments10,093 10,093 
Tax impact of unrealized (gain) loss on other investments
(2,120)(2,120)
Nine months ended June 30, 2022 adjusted operating results221,043 77,236 69,887 65,159 (1,058)432,267 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production49,567 49,567 
Higher (lower) crude oil production(87,986)(87,986)
Higher (lower) realized natural gas prices, after hedging(10,815)(10,815)
Higher (lower) other operating revenues(2,161)(2,161)
Midstream Revenues
Higher (lower) operating revenues4,629 9,117 13,746 
Downstream Margins***
Impact of new rates****(11,126)(11,126)
System modernization and improvement tracker revenues3,462 3,462 
Operating Expenses
Lower (higher) lease operating and transportation expenses25,335 25,335 
Lower (higher) operating expenses12,644 (4,939)(4,537)(7,213)(590)(4,635)
Lower (higher) property, franchise and other taxes4,697 4,697 
Lower (higher) depreciation / depletion(15,450)(1,941)(1,003)(18,394)
Other Income (Expense)
(Higher) lower other deductions2,837 2,810 519 12,840 (3,585)15,421 
(Higher) lower interest expense(899)653 (7,577)5,837 (1,986)
Income Taxes
Lower (higher) income tax expense / effective tax rate(1,807)(64)(1,408)(144)(13)(3,436)
All other / rounding286 315 (21)173 (122)631 
Nine months ended June 30, 2023 adjusted operating results198,190 77,147 73,207 55,574 469 404,587 
Items impacting comparability:
Unrealized gain (loss) on derivative asset(3,702)(3,702)
Tax impact of unrealized gain (loss) on derivative asset1,015 1,015 
Unrealized gain (loss) on other investments1,632 1,632 
Tax impact of unrealized gain (loss) on other investments(343)(343)
Nine months ended June 30, 2023 GAAP earnings$195,503 $77,147 $73,207 $55,574 $1,758 $403,189 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and will have no earnings impact for the year ended September 30, 2023.




Page 12.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
ProductionStorageGatheringUtilityAll OtherConsolidated*
Nine months ended June 30, 2022 GAAP earnings per share$2.06 $0.84 $0.76 $0.87 $(0.10)$4.43 
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax(0.16)(0.16)
Gain on sale of West Coast assets, net of tax(0.10)(0.10)
Loss from discontinuance of crude oil cash flow hedges, net of tax0.36 0.36 
Transaction and severance costs related to West Coast asset sale, net of tax0.08 0.08 
Unrealized (gain) loss on other investments, net of tax0.08 0.08 
Nine months ended June 30, 2022 adjusted operating results per share2.40 0.84 0.76 0.71 (0.02)4.69 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production0.54 0.54 
Higher (lower) crude oil production(0.95)(0.95)
Higher (lower) realized natural gas prices, after hedging
(0.12)(0.12)
Higher (lower) other operating revenues(0.02)(0.02)
Midstream Revenues
Higher (lower) operating revenues0.05 0.10 0.15 
Downstream Margins***
Impact of new rates****(0.12)(0.12)
System modernization and improvement tracker revenues0.04 0.04 
Operating Expenses
Lower (higher) lease operating and transportation expenses
0.27 0.27 
Lower (higher) operating expenses0.14 (0.05)(0.05)(0.08)(0.01)(0.05)
Lower (higher) property, franchise and other taxes0.05 0.05 
Lower (higher) depreciation / depletion(0.17)(0.02)(0.01)(0.20)
Other Income (Expense)
(Higher) lower other deductions0.03 0.03 0.01 0.14 (0.04)0.17 
(Higher) lower interest expense(0.01)0.01 (0.08)0.06 (0.02)
Income Taxes
Lower (higher) income tax expense / effective tax rate
(0.02)— (0.02)— — (0.04)
All other / rounding— — (0.01)(0.01)0.01 (0.01)
Nine months ended June 30, 2023 adjusted operating results per share2.15 0.84 0.79 0.60 — 4.38 
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax(0.03)(0.03)
Unrealized gain (loss) on other investments, net of tax
0.01 0.01 
Rounding0.01 0.01 
Nine months ended June 30, 2023 GAAP earnings per share$2.12 $0.84 $0.79 $0.60 $0.02 $4.37 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and will have no earnings impact for the year ended September 30, 2023.



Page 13.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
Three Months Ended Nine Months Ended
June 30,June 30,
(Unaudited)(Unaudited)
SUMMARY OF OPERATIONS2023202220232022
Operating Revenues:
Utility Revenues$144,538 $179,888 $862,914 $785,664 
Exploration and Production and Other Revenues216,581 252,638 738,107 758,594 
Pipeline and Storage and Gathering Revenues67,585 70,098 203,803 206,642 
428,704 502,624 1,804,824 1,750,900 
Operating Expenses:
Purchased Gas35,425 67,948 450,461 369,168 
Operation and Maintenance:
      Utility50,080 46,403 156,885 146,523 
      Exploration and Production and Other27,659 64,593 86,315 160,016 
      Pipeline and Storage and Gathering38,607 33,988 109,347 97,434 
Property, Franchise and Other Taxes20,427 25,874 71,999 78,093 
Depreciation, Depletion and Amortization102,410 95,857 299,973 275,681 
274,608 334,663 1,174,980 1,126,915 
Gain on Sale of Assets— 12,736 — 12,736 
Operating Income154,096 180,697 629,844 636,721 
Other Income (Expense):
Other Income (Deductions)3,551 (5,649)12,754 3,291 
Interest Expense on Long-Term Debt(26,311)(30,091)(83,499)(90,300)
Other Interest Expense(5,781)(3,882)(15,485)(6,561)
Income Before Income Taxes125,555 141,075 543,614 543,151 
Income Tax Expense32,935 32,917 140,425 135,272 
Net Income Available for Common Stock$92,620 $108,158 $403,189 $407,879 
Earnings Per Common Share
Basic$1.01 $1.18 $4.40 $4.46 
Diluted$1.00 $1.17 $4.37 $4.43 
Weighted Average Common Shares:
Used in Basic Calculation91,803,63891,456,26591,725,28691,388,417
Used in Diluted Calculation92,294,66692,168,51892,268,90492,083,560










Page 14.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,September 30,
(Thousands of Dollars)20232022
ASSETS
Property, Plant and Equipment$13,326,563 $12,551,909 
Less - Accumulated Depreciation, Depletion and Amortization6,245,650 5,985,432 
Net Property, Plant and Equipment
7,080,913 6,566,477 
Current Assets:
Cash and Temporary Cash Investments53,415 46,048 
Hedging Collateral Deposits— 91,670 
Receivables - Net183,377 361,626 
Unbilled Revenue13,476 30,075 
Gas Stored Underground13,047 32,364 
Materials and Supplies - at average cost48,288 40,637 
Unrecovered Purchased Gas Costs24,098 99,342 
Other Current Assets71,586 59,369 
Total Current Assets
407,287 761,131 
Other Assets:
Recoverable Future Taxes104,794 106,247 
Unamortized Debt Expense7,651 8,884 
Other Regulatory Assets63,398 67,101 
Deferred Charges77,886 77,472 
Other Investments74,777 95,025 
Goodwill5,476 5,476 
Prepaid Pension and Post-Retirement Benefit Costs234,425 196,597 
Fair Value of Derivative Financial Instruments46,280 9,175 
Other3,745 2,677 
Total Other Assets
618,432 568,654 
Total Assets$8,106,632 $7,896,262 
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,803,996 Shares and 91,478,064 Shares, Respectively
$91,804 $91,478 
Paid in Capital1,035,852 1,027,066 
Earnings Reinvested in the Business1,857,630 1,587,085 
Accumulated Other Comprehensive Loss(49,384)(625,733)
Total Comprehensive Shareholders' Equity2,935,902 2,079,896 
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs2,383,685 2,083,409 
Total Capitalization
5,319,587 4,163,305 
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper138,500 60,000 
Current Portion of Long-Term Debt— 549,000 
Accounts Payable91,808 178,945 
Amounts Payable to Customers22,391 419 
Dividends Payable45,444 43,452 
Interest Payable on Long-Term Debt40,134 17,376 
Customer Advances— 26,108 
Customer Security Deposits34,024 24,283 
Other Accruals and Current Liabilities260,897 257,327 
Fair Value of Derivative Financial Instruments32,502 785,659 
Total Current and Accrued Liabilities
665,700 1,942,569 
Other Liabilities:
Deferred Income Taxes1,030,526 698,229 
Taxes Refundable to Customers347,066 362,098 
Cost of Removal Regulatory Liability272,740 259,947 
Other Regulatory Liabilities190,907 188,803 
Other Post-Retirement Liabilities2,921 3,065 
Asset Retirement Obligations160,415 161,545 
Other Liabilities116,770 116,701 
Total Other Liabilities2,121,345 1,790,388 
Commitments and Contingencies— — 
Total Capitalization and Liabilities$8,106,632 $7,896,262 




Page 15.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
June 30,
(Thousands of Dollars)20232022
Operating Activities:
Net Income Available for Common Stock$403,189 $407,879 
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
  
Gain on Sale of Assets— (12,736)
Depreciation, Depletion and Amortization299,973 275,681 
Deferred Income Taxes101,096 121,150 
Stock-Based Compensation15,807 15,178 
Reduction of Other Post-Retirement Regulatory Liability— (18,533)
Other16,640 27,527 
Change in:  
Receivables and Unbilled Revenue192,324 (194,832)
Gas Stored Underground and Materials, Supplies and Emission Allowances11,757 24,141 
Unrecovered Purchased Gas Costs75,244 716 
Other Current Assets(12,230)(1,699)
Accounts Payable(52,340)19,259 
Amounts Payable to Customers21,972 271 
Customer Advances(26,108)(17,223)
Customer Security Deposits9,741 5,908 
Other Accruals and Current Liabilities45,363 61,322 
Other Assets(39,367)(44,184)
Other Liabilities(7,949)(15,809)
Net Cash Provided by Operating Activities$1,055,112 $654,016 
Investing Activities:
Capital Expenditures$(727,738)$(592,487)
Net Proceeds from Sale of Oil and Gas Producing Properties— 254,439 
Acquisition of Upstream Assets(124,758)— 
Sale of Fixed Income Mutual Fund Shares in Grantor Trust10,000 30,000 
Other13,397 13,528 
Net Cash Used in Investing Activities$(829,099)$(294,520)
Financing Activities:
Proceeds from Issuance of Short-Term Note Payable to Bank$250,000 $— 
Repayment of Short-Term Note Payable to Bank(250,000)— 
Net Change in Other Short-Term Notes Payable to Banks and Commercial Paper78,500 241,500 
Reduction of Long-Term Debt(549,000)— 
Dividends Paid on Common Stock(130,653)(124,701)
Net Proceeds From Issuance of Long-Term Debt297,533 — 
Net Repurchases of Common Stock(6,696)(9,387)
Net Cash Provided by (Used in) Financing Activities$(310,316)$107,412 
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash(84,303)466,908 
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period137,718 120,138 
Cash, Cash Equivalents, and Restricted Cash at June 30$53,415 $587,046 










Page 16.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts)June 30,June 30,
EXPLORATION AND PRODUCTION SEGMENT20232022Variance20232022Variance
Total Operating Revenues$216,581 $252,638 $(36,057)$738,107 $758,428 $(20,321)
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense15,877 26,844 (10,967)48,910 63,396 (14,486)
Lease Operating and Transportation Expense61,815 79,529 (17,714)189,144 221,213 (32,069)
All Other Operation and Maintenance Expense2,358 8,854 (6,496)6,970 18,183 (11,213)
Property, Franchise and Other Taxes2,295 7,114 (4,819)13,943 19,888 (5,945)
Depreciation, Depletion and Amortization60,584 55,136 5,448 174,747 155,190 19,557 
142,929 177,477 (34,548)433,714 477,870 (44,156)
Gain on Sale of Assets— 12,736 (12,736)— 12,736 (12,736)
Operating Income73,652 87,897(14,245)304,393 293,29411,099 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit347 (186)533 1,042 (558)1,600 
Interest and Other Income (Deductions)(806)482 (1,288)(1,098)613 (1,711)
Interest Expense(13,628)(14,589)961 (39,049)(38,927)(122)
Income Before Income Taxes59,565 73,604 (14,039)265,288 254,422 10,866 
Income Tax Expense16,236 17,107 (871)69,785 64,435 5,350 
Net Income$43,329 $56,497 $(13,168)$195,503 $189,987 $5,516 
Net Income Per Share (Diluted)$0.47 $0.61 $(0.14)$2.12 $2.06 $0.06 













Page 17.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts)June 30,June 30,
PIPELINE AND STORAGE SEGMENT20232022Variance20232022Variance
Revenues from External Customers$62,956 $67,236 $(4,280)$194,800 $196,579 $(1,779)
Intersegment Revenues29,439 28,312 1,127 90,354 82,716 7,638 
Total Operating Revenues92,395 95,548 (3,153)285,154 279,295 5,859 
Operating Expenses:
Purchased Gas223 (139)362 1,111 1,298 (187)
Operation and Maintenance26,207 24,639 1,568 77,501 71,249 6,252 
Property, Franchise and Other Taxes8,329 8,483 (154)25,452 25,664 (212)
Depreciation, Depletion and Amortization17,732 17,322 410 52,874 50,417 2,457 
52,491 50,305 2,186 156,938 148,628 8,310 
Operating Income39,904 45,243 (5,339)128,216 130,667 (2,451)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit1,330 767 563 3,990 2,302 1,688 
Interest and Other Income1,831 735 1,096 4,653 2,330 2,323 
Interest Expense(10,873)(10,813)(60)(32,702)(31,564)(1,138)
Income Before Income Taxes32,192 35,932 (3,740)104,157 103,735 422 
Income Tax Expense8,379 9,333 (954)27,010 26,499 511 
Net Income$23,813 $26,599 $(2,786)$77,147 $77,236 $(89)
Net Income Per Share (Diluted)$0.26 $0.29 $(0.03)$0.84 $0.84 $— 
Three Months Ended Nine Months Ended
June 30, June 30,
GATHERING SEGMENT20232022Variance20232022Variance
Revenues from External Customers$4,629 $2,862 $1,767 $9,003 $10,063 $(1,060)
Intersegment Revenues54,277 53,069 1,208 163,297 150,696 12,601 
Total Operating Revenues58,906 55,931 2,975 172,300 160,759 11,541 
Operating Expenses:
Operation and Maintenance12,849 9,770 3,079 33,252 27,509 5,743 
Property, Franchise and Other Taxes25 10 15 39 12 27 
Depreciation, Depletion and Amortization8,987 8,589 398 26,613 25,343 1,270 
21,861 18,369 3,492 59,904 52,864 7,040 
Operating Income37,045 37,562 (517)112,396 107,895 4,501 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit37 (56)93 112 (168)280 
Interest and Other Income63 53 10 458 81 377 
Interest Expense(3,613)(4,164)551 (11,556)(12,383)827 
Income Before Income Taxes33,532 33,395 137 101,410 95,425 5,985 
Income Tax Expense9,397 8,737