National Fuel Reports Third Quarter Earnings

National Fuel Gas Company ("National Fuel” or the "Company”) (NYSE:NFG) today announced consolidated earnings for the third quarter of fiscal 2009 and for the nine months ended June 30, 2009.

HIGHLIGHTS

• Earnings for the third quarter were $42.9 million or $0.53 per share, a decrease of $17.0 million, or $0.19 per share from the third quarter of 2008. A 33% decrease in average commodity prices realized in the quarter this year in the Exploration and Production segment was the main driver of the decrease in earnings.
• Production in the Exploration and Production segment for the current quarter increased over 12% with increases in all three divisions. Appalachian and Gulf of Mexico production each increased 16%. California production increased 7% during the quarter. Total production for the entire 2009 fiscal year is expected to be in the upper half of the previously announced range of 38 to 44 billion cubic feet equivalent ("Bcfe”).
• Seneca Resources Corporation ("Seneca”) and joint-venture partner EOG Resources, Inc. ("EOG”) have now completed and flow tested four horizontal Marcellus Shale wells at an average initial production ("IP”) rate of 2.3 million cubic feet per day ("MMCFD”). Seneca estimates 4 to 8 trillion cubic feet ("TCF”) of net risked Marcellus resource potential across an area of 720,000 acres that it considers to be prospective in the Marcellus Shale.
• The Company is revising its GAAP earnings guidance range for fiscal 2009 to a range of $1.20 to $1.30 per share. The previous guidance range had been $0.95 to $1.10 per share.
• The Company’s preliminary GAAP earnings guidance for fiscal 2010 is in the range of $2.30 to $2.60 per share. The 2010 preliminary guidance includes oil and gas production for the Exploration and Production segment in the range of 42 to 48 billion cubic feet equivalent ("Bcfe”) and is based on an assumed average NYMEX price, exclusive of basis differential, of $5.00 per Million British Thermal Units ("MMBtu”) for natural gas and $75.00 per barrel ("Bbl”) for crude oil.
• A conference call is scheduled for Friday, August 7, 2009, at 11:00 a.m. Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chief Executive Officer and President of National Fuel Gas Company stated: "It’s no surprise that the dramatic drop in commodity prices compared to a year ago had a considerable impact on the earnings of our Exploration and Production segment and Pipeline and Storage segment. But putting aside the effect of commodity price changes, the third quarter was another strong quarter for the Company. Production was up 12% over the prior year, and our regulated operations delivered another quarter of consistent results.

"We continue to execute on our Appalachian growth strategy. Last month, we spudded our first Seneca operated Marcellus Shale horizontal well and we commenced construction of National Fuel Gas Midstream Corporation’s first Appalachian-region gathering system. While the Marcellus Shale remains our top priority, we believe the current economic climate will create opportunities to invest in additional energy properties, such as our recently announced acquisition of production properties in California. The balance among our various operating segments continues to provide a solid base of earnings and financial strength to allow us to capitalize on these opportunities and others going forward.

"As we prepare for our next heating season, we are injecting natural gas into storage at rates that are substantially below last year’s prices. These lower prices should help our customers moderate their utility bills over the upcoming heating season.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended June 30, 2009, of $42.9 million or $0.53 per share, a decrease of $17.0 million, or $0.19 per share, from the prior year’s third quarter earnings of $59.9 million or $0.72 per share. The per share amounts reflect a lower number of shares outstanding in the current quarter resulting mainly from the impact of the Company’s repurchase of approximately 5.2 million shares of National Fuel common stock in the prior fiscal year. (note: all references to earnings per share are to diluted earnings per share, all amounts are stated in U.S. dollars and all amounts used in the discussions of earnings and operating results before items impacting comparability ("Operating Results”) are stated on an after tax basis, unless otherwise noted.)

Consolidated earnings for the nine months ended June 30, 2009, of $73.7 million, or $0.92 per share, decreased $151.8 million, or $1.73 per share, from the same period in the prior year, where earnings were $225.5 million, or $2.65 per share.

		Three Months							Nine Months
		Ended June 30,							Ended June 30,
		2009			2008					2009				2008
(in thousands except per share amounts)
Reported GAAP earnings		$	42,904		$	59,855			$	73,710			$	225,463
Items impacting comparability1:
Gain on sale of turbine														(586	)
Impairment of oil and gas producing properties										108,207
Impairment of investment in partnership										1,085
Gain on life insurance proceeds										(2,312	)
Operating Results		$	42,904		$	59,855			$	180,690			$	224,877
Reported GAAP earnings per share		$	0.53		$	0.72			$	0.92			$	2.65
Items impacting comparability1:
Gain on sale of turbine														(0.01	)
Impairment of oil and gas producing properties										1.35
Impairment of investment in partnership										0.01
Gain on life insurance proceeds										(0.03	)
Earnings excluding these items		$	0.53		$	0.72			$	2.25			$	2.64

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 nine months ended June 30, 2009, to the comparable period in fiscal 2008. Excluding these items, Operating Results for the nine months ended June 30, 2009, of $180.7 million, or $2.25 per share, decreased $44.2 million, or $0.39 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

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

Exploration and Production Segment

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

The Exploration and Production segment’s earnings in the third quarter of fiscal 2009 of $27.1 million, or $0.33 per share, decreased $12.7 million, or $0.15 per share, when compared with the prior year’s third quarter. The decrease was primarily due to lower crude oil and natural gas prices realized after hedging. Higher production across all three divisions, lower lease operating expenses ("LOE”) and a lower effective tax rate partially offset the impact of lower commodity prices. The decrease in LOE is due to lower steam fuel costs in California.

For the quarter ended June 30, 2009, the weighted average oil price received by Seneca (after hedging) was $67.19 per Bbl, a decrease of $22.36 per Bbl from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended June 30, 2009, was $5.94 per thousand cubic feet ("Mcf”), a decrease of $3.79 per Mcf.

Overall crude oil and natural gas production for the current quarter of 11.5 Bcfe increased over 12 percent compared to the prior year’s third quarter. Production increased 16 percent in both the Gulf of Mexico and Appalachian region and seven percent in California.

The Exploration and Production segment’s loss of $38.4 million, or $0.47 per share, for the nine months ended June 30, 2009, compares to earnings of $108.4 million, or $1.28 per share, for the nine months ended June 30, 2008. The decrease was due to a non-cash charge of $108.2 million in the first quarter of fiscal 2009 to write down the value of Seneca’s oil and natural gas producing properties.

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

Excluding the impact of the ceiling test charge in the first quarter of fiscal 2009, Operating Results for the nine months ended June 30, 2009, of $69.8 million or $0.88 per share decreased $38.5 million, or $0.40 per share, from the prior year. The decrease was primarily due to lower crude oil and natural gas prices realized after hedging. For the nine months ended June 30, 2009, the weighted average oil price received by Seneca (after hedging) was $62.67 per Bbl, a decrease of $17.30 per Bbl from the prior year’s nine-month period. The weighted average natural gas price received by Seneca (after hedging) for the nine months ended June 30, 2009, was $7.28 per Mcf, a decrease of $1.67 per Mcf.

Overall production for the nine months ended June 30, 2009, was 31.2 Bcfe compared to 31.3 Bcfe for the prior year nine-month period. Lower production in the Gulf of Mexico as a result of curtailments due to Hurricane Ike, was offset by increases in both California and Appalachia.

Other items impacting Operating Results for the nine months ended June 30, 2009, were lower depletion and LOE and higher general and administrative ("G&A”) expenses. The impact of lower state income taxes had a positive impact on earnings for the current nine month period. The decrease in depletion expense was mainly due to a lower depletable base resulting from the ceiling test impairment recorded in the first quarter of fiscal 2009 described above. The decrease in LOE is due to lower steam fuel costs in California, lower workover expenses and the shut-in of certain properties related to Hurricane Ike in the Gulf of Mexico. The increase in G&A expenses is due to additional staffing and other costs in the East division, and a bad debt charge related to a refiner bankruptcy in California.

Seneca continues to evaluate and develop the Company’s significant Marcellus Shale acreage position. Seneca and joint-venture partner EOG have now completed and flow tested four horizontal Marcellus Shale wells. The IP rates of those wells ranged from 1.4 to 3.3 million cubic feet per day ("MMCFD”) and averaged 2.3 MMCFD. Seneca has also drilled seven vertical wells outside of the joint venture with EOG and is currently drilling its second Seneca-operated horizontal well in Tioga County, Pennsylvania. Seneca estimates 4 to 8 TCF of net risked Marcellus resource potential across an area of 720,000 acres that it considers to be prospective in the Marcellus Shale. This estimate is based upon certain risk assumptions that vary across the acreage.

On July 17, 2009, Seneca completed the purchase of Ivanhoe Energy’s U.S. oil and gas subsidiary for $39.2 million. Assets acquired include proved oil and gas reserves of 1.8 million barrels of oil equivalent ("MMBOE”) and approximately $5 million of other assets, such that the cost of the reserves was approximately $34 million, or $19 per proved Bbl.

Pipeline and Storage Segment

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

The Pipeline and Storage segment’s earnings of $9.2 million, for the quarter ended June 30, 2009, decreased $3.3 million when compared with the same period in the prior fiscal year. The decrease was primarily due to lower efficiency gas revenues, mainly the result of lower commodity prices and lower transported volumes during the quarter. Higher transportation revenues from the Empire Connector, which was placed in service in mid December 2008, partially offset these decreases. Higher interest expense and a lower allowance for funds used during construction ("AFUDC”) in the third quarter of the current fiscal year also contributed to the decrease in earnings compared to the prior year’s third quarter.

The Pipeline and Storage segment’s earnings of $41.6 million for the nine months ended June 30, 2009, increased $0.7 million when compared with the nine months ended June 30, 2008. The increase is due to higher transportation revenues, mainly the result of incremental revenue from the Empire Connector, which was placed in service in mid December 2008 and the addition of several new contracts for firm transportation services. Higher AFUDC related to the construction of the Empire Connector also contributed to the increase in earnings for the current nine-month period. Partially offsetting the increased earnings were lower efficiency gas revenues mainly due to lower natural gas prices, higher depreciation expense and higher interest expense during the current nine month period.

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation ("Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania. The Utility segment’s earnings of $5.4 million, or $0.07 per share, for the quarter ended June 30, 2009, compares to earnings of $7.8 million, or $0.09 per share, for the quarter ended June 30, 2008.

In the New York Division, earnings decreased $1.1 million. The decrease is primarily due to higher interest expense partially offset by lower operating expenses. In the Pennsylvania Division, earnings decreased $1.3 million. The decrease is mainly due to lower customer usage due to customer conservation efforts and higher interest expense.

The Utility segment’s earnings of $60.3 million for the nine months ended June 30, 2009, decreased $1.9 million compared to the nine months ended June 30, 2008. Earnings in Distribution’s New York Division for the nine months ended June 30, 2009, of $40.7 million decreased $0.5 million compared to the prior year. Lower margins in the first quarter of fiscal 2009 primarily as a result of the rate design change approved by the New York State Public Service Commission’s December 28, 2007 rate order and higher interest expense more than offset the impact of lower operating expenses.

For the nine months ended June 30, 2009, earnings in Distribution’s Pennsylvania Division of $19.6 million decreased $1.4 million compared to the prior year. The positive impact of colder weather and lower interest expense was offset by lower customer usage per account, higher bad debt expense and a higher effective tax rate.

Energy Marketing

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

The Energy Marketing segment’s earnings for the quarter ended June 30, 2009, of $1.3 million increased $0.9 million compared to the third quarter of last year. Earnings increased as a result of lower bad debt expense and higher margins, primarily driven by lower pipeline transportation fuel costs due to lower natural gas commodity prices.

The Energy Marketing segment’s earnings for the nine months ended June 30, 2009, of $7.5 million increased $0.4 million compared to the prior year. An increase in margin and lower operating expenses due to lower bad debt expense were somewhat offset by higher state income taxes.

Corporate and All Other

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

The Corporate and All Other category had a loss of $0.1 million for the quarter ended June 30, 2009 compared to a loss of $0.8 million in the prior year’s third quarter. Expenses related to a proxy contest in fiscal 2008 did not recur in the current year and lower income taxes were the primary reasons for the decreased loss. The positive impact of these items was partially offset by lower income from unconsolidated subsidiaries and higher interest expense.

Earnings in the Corporate and All Other category for the nine months ended June 30, 2009, were $2.7 million, a decrease of $4.1 million when compared to the prior year’s earnings. The comparability of the results for the nine months ended June 30, 2009, is impacted by a $0.6 million gain in the second quarter of fiscal 2008 related to the sale of a gas-powered turbine that the Company had previously planned to use in the development of a co-generation plant, and in the first quarter of fiscal 2009, by a $2.3 million gain recognized on executive life insurance policies and a $1.1 million impairment in the value of Horizon Power’s 50 percent investment in Energy Systems North East, LLC, a partnership that owns an 80-megawatt combined cycle, natural gas-fired power plant in the town of North East, Pennsylvania. Excluding these items, Operating Results decreased $4.8 million. Lower margins from the timber operations as a result of decreased sales volumes and prices, lower margins in the landfill gas operations and a decrease in income from unconsolidated subsidiaries contributed to the decrease in Operating Results. The non-recurrence of expenses related to the proxy contest, noted above, and lower income taxes partially offset the decrease in Operating Results.

EARNINGS GUIDANCE

The Company is revising its earnings guidance for fiscal 2009 to reflect actual results for the nine months ended June 30, 2009. The revised GAAP earnings range is $1.20 to $1.30 per share. The previous guidance range had been $0.95 to $1.10 per share. The revised guidance includes actual results for the first nine months of fiscal 2009, the impairment charge recorded in the first quarter, forecasted oil and gas production for fiscal 2009 for the Exploration and Production segment in the upper half of the previously announced range of 38 to 44 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential, of $3.53 per MMBtu for natural gas and $60.50 per Bbl for crude oil.

The Company’s preliminary GAAP earnings guidance for fiscal 2010 is in the range of $2.30 to $2.60 per share. This includes oil and gas production for the Exploration and Production segment in the range of 42 to 48 Bcfe and is based on an assumed average NYMEX price, exclusive of basis differential, of $5.00 per MMBtu for natural gas and $75.00 per Bbl for crude oil. Further details regarding the production guidance are included within this document.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, August 7, 2009, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s Web site at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-700-7441, and using the passcode "18477482.” For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. (Eastern Time) at the same Web site link and by phone at (toll free) 888-286-8010 using passcode "79992917.” Both the webcast and telephonic replay will be available until the close of business on Tuesday, September 8, 2009.

National Fuel is an integrated energy company with $4.4 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

The Securities and Exchange Commission (the "SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company uses the terms "probable,” "possible,” "resource potential” and other descriptions of volumes of reserves or resources potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines would prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and, accordingly, are subject to substantially greater risk of being actually realized. Investors are urged to consider closely the disclosure in our Form 10-K and Forms 10-Q, available at www.nationalfuelgas.com. You can also obtain these forms on the SEC’s website at www.sec.gov.

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words "anticipates,” "estimates,” "expects,” "forecasts,” "intends,” "plans,” "predicts,” "projects,” "believes,” "seeks,” "will,” "may” and similar expressions, are "forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and their effect on the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments; occurrences affecting the Company’s ability to obtain financing under credit lines or other credit facilities or through the issuance of commercial paper, other short-term notes or debt or equity securities, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from terrorist activities, acts of war, major accidents, fires, hurricanes, other severe weather, pest infestation or other natural disasters; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company’s natural gas and oil reserves; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and gas reserve estimates; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, and the need to obtain governmental approvals and permits and comply with environmental laws and regulations; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between oil having different quality and/or different geographic locations, or changes in the price differentials between natural gas having different heating values and/or different geographic locations; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant differences between the Company’s projected and actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2009
		Exploration &				Pipeline &								Energy				Corporate /
(Thousands of Dollars)		Production				Storage				Utility				Marketing				All Other				Consolidated
Third quarter 2008 GAAP earnings		$	39,791			$	12,534			$	7,848			$	478			$	(796	)		$	59,855
Drivers of operating results
Higher (lower) crude oil prices			(12,261	)																			(12,261	)
Higher (lower) natural gas prices			(15,946	)																			(15,946	)
Higher (lower) natural gas production			4,155																				4,155
Higher (lower) crude oil production			5,758																				5,758
Lower (higher) lease operating expenses			2,838																				2,838
Higher (lower) transportation revenues							2,183																2,183
Higher (lower) efficiency gas revenues							(2,534	)															(2,534	)
Lower (higher) operating costs											480				632				1,063				2,175
Higher (lower) usage											(430	)											(430	)
Income from unconsolidated subsidiaries																			(607	)			(607	)
Higher (lower) margins															395				(234	)			161
Higher (lower) AFUDC*							(937	)															(937	)
Higher (lower) interest income			(1,254	)															272				(982	)
Lower (higher) interest expense			1,659				(1,401	)			(1,861	)							(774	)			(2,377	)
Lower (higher) income tax expense / effective tax rate			2,443																803				3,246
All other / rounding			(100	)			(624	)			(641	)			(174	)			146				(1,393	)
Third quarter 2009 GAAP earnings		$	27,083			$	9,221			$	5,396			$	1,331			$	(127	)		$	42,904
* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2009
		Exploration &				Pipeline &								Energy			Corporate /
		Production				Storage				Utility				Marketing			All Other				Consolidated
Third quarter 2008 GAAP earnings		$	0.48			$	0.15			$	0.09			$	-		$	-			$	0.72
Drivers of operating results
Higher (lower) crude oil prices			(0.15	)																		(0.15	)
Higher (lower) natural gas prices			(0.20	)																		(0.20	)
Higher (lower) natural gas production			0.05																			0.05
Higher (lower) crude oil production			0.07																			0.07
Lower (higher) lease operating expenses			0.04																			0.04
Higher (lower) transportation and storage revenues							0.03															0.03
Higher (lower) efficiency gas revenues							(0.03	)														(0.03	)
Lower (higher) operating costs											0.01				0.01			0.01				0.03
Higher (lower) usage											(0.01	)										(0.01	)
Income from unconsolidated subsidiaries																		(0.01	)			(0.01	)
Higher (lower) margins															0.01			-				0.01
Higher (lower) AFUDC*							(0.01	)														(0.01	)
Higher (lower) interest income			(0.02	)														-				(0.02	)
Lower (higher) interest expense			0.02				(0.02	)			(0.02	)						(0.01	)			(0.03	)
Lower (higher) income tax expense / effective tax rate			0.03															0.01				0.04
All other / rounding (including impact of lower weighted average shares)			0.01				(0.01	)			-				-			-				-
Third quarter 2009 GAAP earnings		$	0.33			$	0.11			$	0.07			$	0.02		$	-			$	0.53
* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2009
		Exploration &				Pipeline &								Energy				Corporate /
(Thousands of Dollars)		Production				Storage				Utility				Marketing				All Other				Consolidated
Nine months ended June 30, 2008 GAAP earnings		$	108,385			$	40,931			$	62,228			$	7,079			$	6,840			$	225,463
Items impacting comparability:
Gain on sale of turbine																			(586	)			(586	)
Nine months ended June 30, 2008 operating results			108,385				40,931				62,228				7,079				6,254				224,877
Drivers of operating results
Higher (lower) crude oil prices			(28,048	)																			(28,048	)
Higher (lower) natural gas prices			(17,543	)																			(17,543	)
Higher (lower) natural gas production			(6,799	)																			(6,799	)
Higher (lower) crude oil production			8,996																				8,996
Lower (higher) lease operating expenses			3,145																				3,145
Higher (lower) transportation revenues							7,884																7,884
Higher (lower) efficiency gas revenues							(4,384	)															(4,384	)
Lower (higher) operating costs			(3,030	)							1,695				391				3,665				2,721
Lower (higher) depreciation / depletion			1,911				(1,162	)															749
Colder weather in Pennsylvania											1,961												1,961
Higher (lower) usage											(1,886	)											(1,886	)
Regulatory true-up adjustments											(356	)											(356	)
Income from unconsolidated subsidiaries																			(1,483	)			(1,483	)
Higher (lower) margins											(1,419	)			612				(6,887	)			(7,694	)
Higher (lower) AFUDC*							661																661
Higher (lower) interest income			(4,611	)			141												(1,895	)			(6,365	)
Lower (higher) interest expense			4,695				(3,114	)			(683	)							(1,341	)			(443	)
Lower (higher) income tax expense / effective tax rate			3,180								(1,212	)			(380	)			3,474				5,062
All other / rounding			(440	)			625				(25	)			(193	)			(332	)			(365	)
Nine months ended June 30, 2009 operating results			69,841				41,582				60,303				7,509				1,455				180,690
Items impacting comparability:
Gain on life insurance policies																			2,312				2,312
Impairment of investment in partnership																			(1,085	)			(1,085	)
Impairment of oil and gas properties			(108,207	)																			(108,207	)
Nine months ended June 30, 2009 GAAP earnings		$	(38,366	)		$	41,582			$	60,303			$	7,509			$	2,682			$	73,710
* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2009
		Exploration &				Pipeline &								Energy			Corporate /
		Production				Storage				Utility				Marketing			All Other				Consolidated
Nine months ended June 30, 2008 GAAP earnings		$	1.28			$	0.48			$	0.73			$	0.08		$	0.08			$	2.65
Items impacting comparability:
Gain on sale of turbine																		(0.01	)			(0.01	)
Nine months ended June 30, 2008 operating results			1.28				0.48				0.73				0.08			0.07				2.64
Drivers of operating results
Higher (lower) crude oil prices			(0.35	)																		(0.35	)
Higher (lower) natural gas prices			(0.22	)																		(0.22	)
Higher (lower) natural gas production			(0.08	)																		(0.08	)
Higher (lower) crude oil production			0.11																			0.11
Lower (higher) lease operating expenses			0.04																			0.04
Higher (lower) transportation and storage revenues							0.10															0.10
Higher (lower) efficiency gas revenues							(0.05	)														(0.05	)
Lower (higher) operating costs			(0.04	)							0.02				-			0.05				0.03
Lower (higher) depreciation / depletion			0.02				(0.01	)														0.01
Colder weather in Pennsylvania											0.02											0.02
Higher (lower) usage											(0.02	)										(0.02	)
Regulatory true-up adjustments											-											-
Income from unconsolidated subsidiaries																		(0.02	)			(0.02	)
Higher (lower) margins											(0.02	)			0.01			(0.09	)			(0.10	)
Higher (lower) AFUDC*							0.01															0.01
Higher (lower) interest income			(0.06	)			-											(0.02	)			(0.08	)
Lower (higher) interest expense			0.06				(0.04	)			(0.01	)						(0.02	)			(0.01	)
Lower (higher) income tax expense / effective tax rate			0.04								(0.02	)			-			0.04				0.06
All other / rounding (including impact of lower weighted average shares)			0.08				0.03				0.05				-			-				0.16
Nine months ended June 30, 2009 operating results			0.88				0.52				0.75				0.09			0.01				2.25
Items impacting comparability:
Gain on life insurance policies																		0.03				0.03
Impairment of investment in partnership																		(0.01	)			(0.01	)
Impairment of oil and gas properties			(1.35	)																		(1.35	)
Nine months ended June 30, 2009 GAAP earnings		$	(0.47	)		$	0.52			$	0.75			$	0.09		$	0.03			$	0.92
* AFUDC = Allowance for Funds Used During Construction

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
		Three Months Ended								Nine Months Ended
		June 30,								June 30,
		(Unaudited)								(Unaudited)
SUMMARY OF OPERATIONS			2009				2008				2009				2008
Operating Revenues		$	367,111			$	548,382			$	1,778,919			$	2,002,503
Operating Expenses:
Purchased Gas			126,969				272,893				941,171				1,082,340
Operation and Maintenance			90,821				102,602				310,605				325,642
Property, Franchise and Other Taxes			17,576				19,135				56,709				58,206
Depreciation, Depletion and Amortization			43,659				42,804				127,715				129,337
Impairment of Oil and Gas Producing Properties			-				-				182,811				-
			279,025				437,434				1,619,011				1,595,525
Operating Income			88,086				110,948				159,908				406,978
Other Income (Expense):
Income from Unconsolidated Subsidiaries			627				1,561				915				4,866
Interest Income			1,460				3,086				4,358				8,356
Other Income			664				1,649				6,459				4,982
Interest Expense on Long-Term Debt			(21,756	)			(19,468	)			(57,357	)			(52,045	)
Other Interest Expense			(2,539	)			(1,199	)			(5,013	)			(4,209	)
Income Before Income Taxes			66,542				96,577				109,270				368,928
Income Tax Expense			23,638				36,722				35,560				143,465
Net Income Available for Common Stock		$	42,904			$	59,855			$	73,710			$	225,463
Earnings Per Common Share:
Basic		$	0.54			$	0.74			$	0.93			$	2.72
Diluted		$	0.53			$	0.72			$	0.92			$	2.65
Weighted Average Common Shares:
Used in Basic Calculation			79,551,195				81,342,788				79,450,838				82,789,748
Used in Diluted Calculation			80,391,402				83,712,193				80,248,787				85,000,381

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
		June 30,			September 30,
(Thousands of Dollars)		2009			2008
ASSETS
Property, Plant and Equipment		$	5,078,088		$	4,873,969
Less - Accumulated Depreciation, Depletion and Amortization			2,010,584			1,719,869
Net Property, Plant and Equipment			3,067,504			3,154,100
Current Assets:
Cash and Temporary Cash Investments			433,230			68,239
Cash Held in Escrow			2,000			-
Hedging Collateral Deposits			6,359			1
Receivables - Net			200,594			185,397
Unbilled Utility Revenue			14,568			24,364
Gas Stored Underground			27,721			87,294
Materials and Supplies - at average cost			24,768			31,317
Unrecovered Purchased Gas Costs			1,900			37,708
Other Current Assets			32,477			65,158
Deferred Income Taxes			33,009			-
Total Current Assets			776,626			499,478
Other Assets:
Recoverable Future Taxes			83,543			82,506
Unamortized Debt Expense			15,345			13,978
Other Regulatory Assets			196,278			189,587
Deferred Charges			1,790			4,417
Other Investments			73,174			80,640
Investments in Unconsolidated Subsidiaries			15,094			16,279
Goodwill			5,476			5,476
Intangible Assets			24,627			26,174
Prepaid Post-Retirement Benefit Costs			21,738			21,034
Fair Value of Derivative Financial Instruments			66,193			28,786
Other			7,914			7,732
Total Other Assets			511,172			476,609
Total Assets		$	4,355,302		$	4,130,187
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000
Shares; Issued and Outstanding - 79,881,482 Shares
and 79,120,544 Shares, Respectively		$	79,881		$	79,121
Paid in Capital			589,295			567,716
Earnings Reinvested in the Business			948,262			953,799
Total Common Shareholder Equity Before
Items of Other Comprehensive Income			1,617,438			1,600,636
Accumulated Other Comprehensive Income			17,234			2,963
Total Comprehensive Shareholders' Equity			1,634,672			1,603,599
Long-Term Debt, Net of Current Portion			1,249,000			999,000
Total Capitalization			2,883,672			2,602,599
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper			-			-
Current Portion of Long-Term Debt			-			100,000
Accounts Payable			69,762			142,520
Amounts Payable to Customers			45,772			2,753
Dividends Payable			26,761			25,714
Interest Payable on Long-Term Debt			18,722			22,114
Customer Advances			3,229			33,017
Other Accruals and Current Liabilities			198,057			45,220
Deferred Income Taxes			-			1,871
Fair Value of Derivative Financial Instruments			1,815			1,362
Total Current and Accrued Liabilities			364,118			374,571
Deferred Credits:
Deferred Income Taxes			589,380			634,372
Taxes Refundable to Customers			18,459			18,449
Unamortized Investment Tax Credit			4,165			4,691
Cost of Removal Regulatory Liability			107,245			103,100
Other Regulatory Liabilities			115,617			91,933
Pension and Other Post-Retirement Liabilities			61,404			78,909
Asset Retirement Obligations			86,559			93,247
Other Deferred Credits			124,683			128,316
Total Deferred Credits			1,107,512			1,153,017
Commitments and Contingencies			-			-
Total Capitalization and Liabilities		$	4,355,302		$	4,130,187

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Nine Months Ended
		June 30,
(Thousands of Dollars)			2009				2008
Operating Activities:
Net Income Available for Common Stock		$	73,710			$	225,463
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Impairment of Oil and Gas Producing Properties			182,811				-
Depreciation, Depletion and Amortization			127,715				129,337
Deferred Income Taxes			(85,494	)			27,603
Income from Unconsolidated Subsidiaries, Net of Cash Distributions			180				1,340
Impairment of Investment in Partnership			1,804				-
Excess Tax Benefits Associated with Stock-Based Compensation Awards			(5,927	)			(16,275	)
Other			9,365				(1,120	)
Change in:
Hedging Collateral Deposits			(6,358	)			(26,712	)
Receivables and Unbilled Utility Revenue			(5,520	)			(129,102	)
Gas Stored Underground and Materials and
Supplies			71,491				14,819
Unrecovered Purchased Gas Costs			35,808				9,089
Prepayments and Other Current Assets			37,904				17,370
Accounts Payable			(82,146	)			53,081
Amounts Payable to Customers			43,019				2,455
Customer Advances			(29,788	)			(22,863	)
Other Accruals and Current Liabilities			166,217				94,031
Other Assets			(8,517	)			19,178
Other Liabilities			(14,453	)			17,373
Net Cash Provided by Operating Activities		$	511,821			$	415,067
Investing Activities:
Capital Expenditures			($237,126	)			($264,728	)
Investment in Partnership			(800	)			-
Cash Held in Escrow			(2,000	)			58,397
Net Proceeds from Sale of Oil and Gas Producing Properties			3,701				5,675
Other			(1,674	)			(3,414	)
Net Cash Used in Investing Activities			($237,899	)			($204,070	)
Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards		$	5,927			$	16,275
Shares Repurchased under Repurchase Plan			-				(129,592	)
Net Proceeds from Issuance of Long-Term Debt			247,780				296,655
Reduction of Long-Term Debt			(100,000	)			(200,024	)
Dividends Paid on Common Stock			(77,398	)			(77,204	)
Proceeds From Issuance of Common Stock			14,760				17,285
Net Cash Provided by (Used In) Financing Activities		$	91,069				($76,605	)
Net Increase in Cash and Temporary
Cash Investments			364,991				134,392
Cash and Temporary Cash Investments
at Beginning of Period			68,239				124,806
Cash and Temporary Cash Investments
at June 30		$	433,230			$	259,198

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
		Three Months Ended												Nine Months Ended
(Thousands of Dollars, except per share amounts)		June 30,												June 30,
EXPLORATION AND PRODUCTION SEGMENT			2009				2008			Variance					2009				2008			Variance
Operating Revenues		$	97,619			$	126,154			$	(28,535	)		$	281,410			$	348,829			$	(67,419	)
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense			6,849				5,924				925				22,465				18,676				3,789
Lease Operating Expense			11,775				14,964				(3,189	)			36,944				41,112				(4,168	)
All Other Operation and Maintenance Expense			2,325				3,708				(1,383	)			8,599				7,727				872
Property, Franchise and Other Taxes (Lease Operating Expense)			2,341				3,518				(1,177	)			7,722				8,394				(672	)
Depreciation, Depletion and Amortization			23,472				23,249				223				67,159				70,098				(2,939	)
Impairment of Oil and Gas Producing Properties			-				-				-				182,811				-				182,811
			46,762				51,363				(4,601	)			325,700				146,007				179,693
Operating Income (Loss)			50,857				74,791				(23,934	)			(44,290	)			202,822				(247,112	)
Other Income (Expense):
Interest Income			319				2,247				(1,928	)			2,186				9,280				(7,094	)
Other Income			-				-				-				-				18				(18	)
Other Interest Expense			(7,905	)			(10,457	)			2,552				(25,452	)			(32,675	)			7,223
Income (Loss) Before Income Taxes			43,271				66,581				(23,310	)			(67,556	)			179,445				(247,001	)
Income Tax Expense (Benefit)			16,188				26,790				(10,602	)			(29,190	)			71,060				(100,250	)
Net Income (Loss)		$	27,083			$	39,791			$	(12,708	)		$	(38,366	)		$	108,385			$	(146,751	)
Net Income (Loss) Per Share (Diluted)		$	0.33			$	0.48			$	(0.15	)		$	(0.47	)		$	1.28			$	(1.75	)
		Three Months Ended												Nine Months Ended
		June 30,												June 30,
PIPELINE AND STORAGE SEGMENT			2009				2008			Variance					2009				2008			Variance
Revenues from External Customers		$	30,791			$	32,054			$	(1,263	)		$	105,904			$	101,871			$	4,033
Intersegment Revenues			20,033				20,131				(98	)			62,026				61,340				686
Total Operating Revenues			50,824				52,185				(1,361	)			167,930				163,211				4,719
Operating Expenses:
Purchased Gas			8				(4	)			12				137				(13	)			150
Operation and Maintenance			16,690				16,462				228				50,546				50,877				(331	)
Property, Franchise and Other Taxes			4,281				4,007				274				12,789				12,539				250
Depreciation, Depletion and Amortization			8,750				8,344				406				26,416				24,629				1,787
			29,729				28,809				920				89,888				88,032				1,856
Operating Income			21,095				23,376				(2,281	)			78,042				75,179				2,863
Other Income (Expense):
Interest Income			546				562				(16	)			943				726				217
Other Income			175				1,124				(949	)			3,192				2,545				647
Interest Expense on Long-Term Debt			-				-				-				-				(31	)			31
Other Interest Expense			(6,505	)			(4,350	)			(2,155	)			(14,760	)			(9,938	)			(4,822	)
Income Before Income Taxes			15,311				20,712				(5,401	)			67,417				68,481				(1,064	)
Income Tax Expense			6,090				8,178				(2,088	)			25,835				27,550				(1,715	)
Net Income		$	9,221			$	12,534			$	(3,313	)		$	41,582			$	40,931			$	651
Net Income Per Share (Diluted)		$	0.11			$	0.15			$	(0.04	)		$	0.52			$	0.48			$	0.04

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
		Three Months Ended												Nine Months Ended
(Thousands of Dollars, except per share amounts)		June 30,												June 30,
UTILITY SEGMENT			2009				2008			Variance					2009				2008			Variance
Revenues from External Customers		$	158,310			$	217,339			$	(59,029	)		$	1,009,962			$	1,067,194			$	(57,232	)
Intersegment Revenues			2,940				3,154				(214	)			13,339				13,567				(228	)
Total Operating Revenues			161,250				220,493				(59,243	)			1,023,301				1,080,761				(57,460	)
Operating Expenses:
Purchased Gas			80,505				137,949				(57,444	)			681,989				735,259				(53,270	)
Operation and Maintenance			42,404				44,202				(1,798	)			155,088				157,980				(2,892	)
Property, Franchise and Other Taxes			10,491				11,120				(629	)			34,822				35,750				(928	)
Depreciation, Depletion and Amortization			10,010				9,625				385				29,670				29,452				218
			143,410				202,896				(59,486	)			901,569				958,441				(56,872	)
Operating Income			17,840				17,597				243				121,732				122,320				(588	)
Other Income (Expense):
Interest Income			430				326				104				1,349				688				661
Other Income			251				279				(28	)			763				883				(120	)
Other Interest Expense			(9,728	)			(6,865	)			(2,863	)			(22,820	)			(21,770	)			(1,050	)
Income Before Income Taxes			8,793				11,337				(2,544	)			101,024				102,121				(1,097	)
Income Tax Expense			3,397				3,489				(92	)			40,721				39,893				828
Net Income		$	5,396			$	7,848			$	(2,452	)		$	60,303			$	62,228			$	(1,925	)
Net Income Per Share (Diluted)		$	0.07			$	0.09			$	(0.02	)		$	0.75			$	0.73			$	0.02
		Three Months Ended												Nine Months Ended
		June 30,												June 30,
ENERGY MARKETING SEGMENT			2009				2008			Variance					2009				2008			Variance
Operating Revenues		$	71,894			$	162,129			$	(90,235	)		$	350,445			$	440,111			$	(89,666	)
Operating Expenses:
Purchased Gas			68,496				159,339				(90,843	)			333,386				423,991				(90,605	)
Operation and Maintenance			1,412				2,384				(972	)			4,568				5,170				(602	)
Property, Franchise and Other Taxes			6				9				(3	)			22				32				(10	)
Depreciation, Depletion and Amortization			11				10				1				31				32				(1	)
			69,925				161,742				(91,817	)			338,007				429,225				(91,218	)
Operating Income			1,969				387				1,582				12,438				10,886				1,552
Other Income (Expense):
Interest Income			39				206				(167	)			67				293				(226	)
Other Income			91				73				18				201				206				(5	)
Other Interest Expense			(14	)			(6	)			(8	)			(209	)			(133	)			(76	)
Income Before Income Taxes			2,085				660				1,425				12,497				11,252				1,245
Income Tax Expense			754				182				572				4,988				4,173				815
Net Income		$	1,331			$	478			$	853			$	7,509			$	7,079			$	430
Net Income Per Share (Diluted)		$	0.02			$	-			$	0.02			$	0.09			$	0.08			$	0.01

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
		Three Months Ended												Nine Months Ended
(Thousands of Dollars, except per share amounts)		June 30,												June 30,
ALL OTHER			2009				2008			Variance					2009				2008			Variance
Revenues from External Customers		$	8,269			$	10,509			$	(2,240	)		$	30,523			$	44,002			$	(13,479	)
Intersegment Revenues			374				4,439				(4,065	)			3,890				10,251				(6,361	)
Total Operating Revenues			8,643				14,948				(6,305	)			34,413				54,253				(19,840	)
Operating Expenses:
Purchased Gas			1,181				3,229				(2,048	)			4,538				7,941				(3,403	)
Operation and Maintenance			8,748				12,632				(3,884	)			28,151				33,388				(5,237	)
Property, Franchise and Other Taxes			385				410				(25	)			1,140				1,277				(137	)
Depreciation, Depletion and Amortization			1,243				1,403				(160	)			3,918				4,609				(691	)
			11,557				17,674				(6,117	)			37,747				47,215				(9,468	)
Operating Income (Loss)			(2,914	)			(2,726	)			(188	)			(3,334	)			7,038				(10,372	)
Other Income (Expense):
Income from Unconsolidated Subsidiaries			627				1,561				(934	)			915				4,866				(3,951	)
Interest Income			52				298				(246	)			543				920				(377	)
Other Income			26				132				(106	)			38				1,052				(1,014	)
Other Interest Expense			(560	)			(848	)			288				(1,921	)			(2,927	)			1,006
Income (Loss) Before Income Taxes			(2,769	)			(1,583	)			(1,186	)			(3,759	)			10,949				(14,708	)
Income Tax Expense (Benefit)			(1,683	)			(623	)			(1,060	)			(3,713	)			3,598				(7,311	)
Net Income (Loss)		$	(1,086	)		$	(960	)		$	(126	)		$	(46	)		$	7,351			$	(7,397	)
Net Income Per Share (Diluted)		$	(0.01	)		$	-			$	(0.01	)		$	-			$	0.09			$	(0.09	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
		Three Months Ended												Nine Months Ended
(Thousands of Dollars, except per share amounts)		June 30,												June 30,
CORPORATE			2009				2008			Variance					2009				2008			Variance
Revenues from External Customers		$	228			$	197			$	31			$	675			$	496			$	179
Intersegment Revenues			1,003				961				42				3,062				2,883				179
Total Operating Revenues			1,231				1,158				73				3,737				3,379				358
Operating Expenses:
Operation and Maintenance			1,747				3,391				(1,644	)			7,682				13,915				(6,233	)
Property, Franchise and Other Taxes			72				71				1				214				214				-
Depreciation, Depletion and Amortization			173				173				-				521				517				4
			1,992				3,635				(1,643	)			8,417				14,646				(6,229	)
Operating Loss			(761	)			(2,477	)			1,716				(4,680	)			(11,267	)			6,587
Other Income (Expense):
Interest Income			22,553				21,890				663				62,243				64,780				(2,537	)
Other Income			121				41				80				2,265				278				1,987
Interest Expense on Long-Term Debt			(21,756	)			(19,468	)			(2,288	)			(57,357	)			(52,014	)			(5,343	)
Other Interest Expense			(306	)			(1,116	)			810				(2,824	)			(5,097	)			2,273
Income (Loss) Before Income Taxes			(149	)			(1,130	)			981				(353	)			(3,320	)			2,967
Income Tax Benefit			(1,108	)			(1,294	)			186				(3,081	)			(2,809	)			(272	)
Net Income (Loss)		$	959			$	164			$	795			$	2,728			$	(511	)		$	3,239
Net Income (Loss) Per Share (Diluted)		$	0.01			$	-			$	0.01			$	0.03			$	(0.01	)		$	0.04
		Three Months Ended												Nine Months Ended
		June 30,												June 30,
INTERSEGMENT ELIMINATIONS			2009				2008			Variance					2009				2008			Variance
Intersegment Revenues		$	(24,350	)		$	(28,685	)		$	4,335			$	(82,317	)		$	(88,041	)		$	5,724
Operating Expenses:
Purchased Gas			(23,221	)			(27,620	)			4,399				(78,879	)			(84,838	)			5,959
Operation and Maintenance			(1,129	)			(1,065	)			(64	)			(3,438	)			(3,203	)			(235	)
			(24,350	)			(28,685	)			4,335				(82,317	)			(88,041	)			5,724
Operating Income			-				-				-				-				-				-
Other Income (Expense):
Interest Income			(22,479	)			(22,443	)			(36	)			(62,973	)			(68,331	)			5,358
Other Interest Expense			22,479				22,443				36				62,973				68,331				(5,358	)
Net Income		$	-			$	-			$	-			$	-			$	-			$	-
Net Income Per Share (Diluted)		$	-			$	-			$	-			$	-			$	-			$	-

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
		Three Months Ended										Nine Months Ended
		June 30,										June 30,
		(Unaudited)										(Unaudited)
								Increase												Increase
		2009			2008			(Decrease)					2009				2008			(Decrease)
Capital Expenditures:
Exploration and Production (1)		$	34,517		$	75,681		$	(41,164	)		$	151,678			$	140,543			$	11,135
Pipeline and Storage (2)			7,020			49,094			(42,074	)			34,854				106,204				(71,350	)
Utility			14,557			14,939			(382	)			40,380				38,836				1,544
Energy Marketing			14			6			8				25				21				4
Total Reportable Segments			56,108			139,720			(83,612	)			226,937				285,604				(58,667	)
All Other			2,931			108			2,823				3,005				1,303				1,702
Corporate			104			48			56				149				83				66
Eliminations			-			-			-				(344	)			(2,407	)			2,063
Total Capital Expenditures		$	59,143		$	139,876		$	(80,733	)		$	229,747			$	284,583			$	(54,836	)

⁽¹⁾ Amount for the nine months ended June 30, 2009 includes $9.4 million of accrued capital expenditures, the majority of which was in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at June 30, 2009 since it represents a non-cash investing activity at that date.

⁽²⁾ Amount for the nine months ended June 30, 2009 excludes $16.8 million of capital expenditures related to the Empire Connector project accrued at September 30, 2008 and paid during the nine months ended June 30, 2009. This amount was excluded from the Consolidated Statement of Cash Flows at September 30, 2008 since it represented a non-cash investing activity at that date. The amount has been included in the Consolidated Statement of Cash Flows at June 30, 2009.

DEGREE DAYS
								Percent Colder
								(Warmer) Than:
Three Months Ended June 30		Normal		2009		2008		Normal		Last Year
Buffalo, NY		927		854		817		(7.9)		4.5
Erie, PA		885		821		762		(7.2)		7.7
Nine Months Ended June 30
Buffalo, NY		6,514		6,558		6,175		0.7		6.2
Erie, PA		6,108		6,064		5,737		(0.7)		5.7

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
		Three Months Ended										Nine Months Ended
		June 30,										June 30,
								Increase										Increase
		2009			2008			(Decrease)					2009			2008		(Decrease)
Gas Production/Prices:
Production (MMcf)
Gulf Coast			3,307			3,019			288				7,118			8,868			(1,750	)
West Coast			1,014			1,007			7				3,063			3,010			53
Appalachia			2,155			1,793			362				6,065			5,538			527
Total Production			6,476			5,819			657				16,246			17,416			(1,170	)
Average Prices (Per  Mcf)
Gulf Coast		$	3.95		$	12.17		$	(8.22	)		$	4.90		$	9.66		$	(4.76	)
West Coast			3.04			10.61			(7.57	)			4.10			8.43			(4.33	)
Appalachia			4.11			11.53			(7.42	)			6.06			9.25			(3.19	)
Weighted Average			3.86			11.71			(7.85	)			5.18			9.32			(4.14	)
Weighted Average after Hedging			5.94			9.73			(3.79	)			7.28			8.95			(1.67	)
Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast			176			124			52				470			409			61
West Coast			654			598			56				1,984			1,825			159
Appalachia			14			23			(9	)			41			88			(47	)
Total Production			844			745			99				2,495			2,322			173
Average Prices (Per Barrel)
Gulf Coast		$	56.29		$	124.43		$	(68.14	)		$	50.64		$	103.46		$	(52.82	)
West Coast			55.77			114.35			(58.58	)			46.84			94.64			(47.80	)
Appalachia			48.93			114.99			(66.06	)			54.90			94.18			(39.28	)
Weighted Average			55.77			116.05			(60.28	)			47.69			96.17			(48.48	)
Weighted Average after Hedging			67.19			89.55			(22.36	)			62.67			79.97			(17.30	)
Total Production (Mmcfe)			11,540			10,289			1,251				31,216			31,348			(132	)
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (1)		$	0.59		$	0.58		$	0.01			$	0.72		$	0.60		$	0.12
Lease Operating Expense per Mcfe (1)		$	1.22		$	1.80		$	(0.58	)		$	1.43		$	1.58		$	(0.15	)
Depreciation, Depletion & Amortization per Mcfe (1)		$	2.03		$	2.26		$	(0.23	)		$	2.15		$	2.24		$	(0.09	)

⁽¹⁾ Refer to the corresponding table above for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Three Months of Fiscal 2009
SWAPS					Volume		Average Hedge Price
Oil					0.3 MMBBL		$83.12 / BBL
Gas					2.3 BCF		$9.44 / MCF
Hedging Summary for Fiscal 2010
SWAPS					Volume		Average Hedge Price
Oil					1.4 MMBBL		$77.83 / BBL
Gas					13.0 BCF		$7.22 / MCF
Hedging Summary for Fiscal 2011
SWAPS					Volume		Average Hedge Price
Oil					0.6 MMBBL		$66.54 / BBL
Gas					9.1 BCF		$7.31 / MCF
Hedging Summary for Fiscal 2012
SWAPS					Volume		Average Hedge Price
Oil					0.4 MMBBL		$62.95 / BBL
Gas					7.7 BCF		$7.50 / MCF
Gross Wells in Process of Drilling
Nine Months Ended June 30, 2009
							Total
	Gulf		West		East		Company
Wells in Process - Beginning of Period
Exploratory	1.00		0.00		25.00		26.00
Developmental	1.00		1.00		123.00		125.00
Wells Commenced
Exploratory	0.00		0.00		12.00		12.00
Developmental	0.00		26.00		146.00		172.00
Wells Completed
Exploratory	1.00		0.00		2.00		3.00
Developmental	0.00		26.00		183.00		209.00
Wells Plugged & Abandoned
Exploratory	0.00		0.00		3.00		3.00
Developmental	1.00		0.00		0.00		1.00
Wells in Process - End of Period
Exploratory	0.00		0.00		32.00		32.00
Developmental	0.00		1.00		86.00		87.00
Net Wells in Process of Drilling
Nine Months Ended June 30, 2009
							Total
	Gulf		West		East		Company
Wells in Process - Beginning of Period
Exploratory	0.29		0.00		24.00		24.29
Developmental	0.30		1.00		122.00		123.30
Wells Commenced
Exploratory	0.00		0.00		9.50		9.50
Developmental	0.00		26.00		145.00		171.00
Wells Completed
Exploratory	0.29		0.00		2.00		2.29
Developmental	0.00		26.00		183.00		209.00
Wells Plugged & Abandoned
Exploratory	0.00		0.00		3.00		3.00
Developmental	0.30		0.00		0.00		0.30
Wells in Process - End of Period
Exploratory	0.00		0.00		28.50		28.50
Developmental	0.00		1.00		84.00		85.00

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Fiscal 2010 Financial & Operating Guidance
Total Production (Bcfe)		42 - 48
Production by Division (Bcfe)
Gulf		11 - 13
East		11 - 14
West		20 - 21
Guidance Based on Crude Oil Average 2010 NYMEX Price ($/Bbl) (without hedges) of $75.00
Forecast price differentials
Gulf		-$2.00 to -$8.00
East		-$5.00 to -$7.00
West		-$8.00 to -$11.00
Guidance Based on Natural Gas Average 2010 NYMEX Price ($/MMBtu) (without hedges) of $5.00
Forecast price differentials
Gulf		$0.00 to -$0.20
East		$0.00 to +$0.50
West		-$0.75 to -$1.00
Cost and Expenses $ per Mcfe
Lease Operating Expenses		$1.35 - $1.50
Depreciation, Depletion and Amortization		$2.25 - $2.45
Other Taxes (% of Revenue)		$0.10 - $0.20
Other Operating Expenses		$8M - $9M
General and Administrative		$30M - $32M
Capital Investment by Division		Number of Wells to be Drilled
Gulf       $10M - $18M		0 - 2
East       $150M - $182M		160 - 220
West       $15M - $25M		25 - 45
Total      $175M - $225M

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput- (millions of cubic feet - MMcf)
		Three Months Ended							Nine Months Ended
		June 30,							June 30,
						Increase							Increase
		2009		2008		(Decrease)			2009		2008		(Decrease)
Firm Transportation - Affiliated		17,214		16,697		517			99,411		96,849		2,562
Firm Transportation - Non-Affiliated		43,584		51,566		(7,982	)		205,590		186,255		19,335
Interruptible Transportation		501		1,540		(1,039	)		3,558		3,844		(286	)
		61,299		69,803		(8,504	)		308,559		286,948		21,611
Utility Throughput - (MMcf)
		Three Months Ended							Nine Months Ended
		June 30,							June 30,
						Increase							Increase
		2009		2008		(Decrease)			2009		2008		(Decrease)
Retail Sales:
Residential Sales		8,468		8,618		(150	)		55,001		53,881		1,120
Commercial Sales		1,221		1,334		(113	)		8,984		9,197		(213	)
Industrial Sales		55		77		(22	)		499		524		(25	)
		9,744		10,029		(285	)		64,484		63,602		882
Off-System Sales		-		1,711		(1,711	)		513		4,790		(4,277	)
Transportation		10,747		12,086		(1,339	)		52,476		55,966		(3,490	)
		20,491		23,826		(3,335	)		117,473		124,358		(6,885	)
Energy Marketing Volumes
		Three Months Ended							Nine Months Ended
		June 30,							June 30,
						Increase							Increase
		2009		2008		(Decrease)			2009		2008		(Decrease)
Natural Gas (MMcf)		14,634		14,641		(7	)		50,459		47,189		3,270

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2010 EARNINGS GUIDANCE AND SENSITIVITY
						Earnings per share sensitivity to changes
Fiscal 2010 (Diluted earnings per share guidance*)						from prices used in guidance* ^
						$1 change per MMBtu gas			$5 change per Bbl oil
		Earnings Range				Increase	Decrease		Increase	Decrease
Consolidated Earnings		$2.30	-	$2.60		+ $0.08	- $0.08		+ $0.08	- $0.08

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

^ This sensitivity table is current as of August 7, 2009 and only considers revenue from the Exploration and Production segment's crude oil and natural gas sales. This revenue is based upon pricing used in the Company's preliminary earnings forecast. For its fiscal 2010 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $5 per MMBtu for natural gas and $75 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
Quarter Ended June 30 (unaudited)		2009			2008
Operating Revenues		$	367,111,000		$	548,382,000
Net Income Available for Common Stock		$	42,904,000		$	59,855,000
Earnings Per Common Share:
Basic		$	0.54		$	0.74
Diluted		$	0.53		$	0.72
Weighted Average Common Shares:
Used in Basic Calculation			79,551,195			81,342,788
Used in Diluted Calculation			80,391,402			83,712,193
Nine Months Ended June 30 (unaudited)
Operating Revenues		$	1,778,919,000		$	2,002,503,000
Net Income Available for Common Stock		$	73,710,000		$	225,463,000
Earnings Per Common Share:
Basic		$	0.93		$	2.72
Diluted		$	0.92		$	2.65
Weighted Average Common Shares:
Used in Basic Calculation			79,450,838			82,789,748
Used in Diluted Calculation			80,248,787			85,000,381
Twelve Months Ended June 30 (unaudited)
Operating Revenues		$	2,176,776,000		$	2,304,533,000
Income from Continuing Operations		$	116,976,000		$	259,757,000
Income from Discontinued Operations, Net of Tax			-			123,395,000
Net Income Available for Common Stock		$	116,976,000		$	383,152,000
Earnings Per Common Share:
Basic:
Income from Continuing Operations		$	1.47		$	3.13
Income from Discontinued Operations			-			1.49
Net Income Available for Common Stock		$	1.47		$	4.62
Diluted:
Income from Continuing Operations		$	1.44		$	3.05
Income from Discontinued Operations			-			1.45
Net Income Available for Common Stock		$	1.44		$	4.50
Weighted Average Common Shares:
Used in Basic Calculation			79,805,689			82,969,977
Used in Diluted Calculation			80,994,294			85,150,920