National Fuel Reports Second Quarter Earnings

Rhea-AI Summary

National Fuel Gas Company (NFG) reported a GAAP net income of $167.3 million for Q2 FY2022, equating to $1.82 per share, a 48% increase year-over-year. Adjusted earnings were $154.4 million, or $1.68 per share, reflecting a 25% rise. The company increased its fiscal 2022 earnings guidance to $5.70-$6.00 per share, driven by strong Appalachian natural gas production and higher commodity prices. Additionally, NFG plans to divest California assets for $280-310 million, enhancing financial flexibility.

Positive

• Q2 FY2022 GAAP net income increased by 48% to $167.3 million.
• Adjusted operating results improved by 25% year-over-year to $154.4 million.
• Fiscal 2022 earnings guidance raised by $0.50 to a range of $5.70-$6.00 per share.
• Successful certification under Project Canary's TrustWell™ program for responsible gas.
• Proceeds from California asset divestiture will accelerate deleveraging.

Negative

• Loss of approximately 4 Bcfe of production from the California property sale.
• 2.5 Bcfe reduction in fiscal 2022 net production guidance.

WILLIAMSVILLE, N.Y., May 05, 2022 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2022 fiscal year and for the six months ended March 31, 2022.

FISCAL 2022 SECOND QUARTER SUMMARY

• GAAP net income of $167.3 million, or $1.82 per share, compared to GAAP net income of $112.4 million, or $1.23 per share, in the prior year, an increase of 48% per share.
• Adjusted operating results of $154.4 million, or $1.68 per share, an increase of 25%, compared to $1.34 per share, in the prior year (see non-GAAP reconciliation on page 2).
• Adjusted EBITDA of $337.6 million, an increase of 13%, compared to $298.4 million in the prior year (see non-GAAP reconciliation on page 24).
• Published inaugural Climate Report in March 2022, which further aligns the Company's climate-risk disclosures with the Task Force on Climate-Related Financial Disclosures framework, and evaluates the resilience of our operations to potential risks associated with climate change, including a less than 2-degree Celsius scenario.
• Achieved certification under Project Canary's TrustWell™ responsibly sourced gas program with Platinum or Gold ratings for all 121 wells included in pilot, which combined, produce approximately 300 million cubic feet per day, or approximately 30%, of the Company's Appalachian production. This accreditation is in addition to the prior certification of 100% of the Company's Appalachian production as responsibly sourced under Equitable Origin's EO100™ Standard for Responsible Energy Development.
• Company is increasing its fiscal 2022 earnings guidance to a range of $5.70 to $6.00 per share, an increase of $0.50 per share at the midpoint, excluding items impacting comparability (see Guidance Summary on page 8).

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had a strong second quarter, with adjusted operating results increasing 25% compared to the prior year. Led by continued Appalachian natural gas production growth and higher commodity prices at our non-regulated businesses, earnings improved across all segments. With Supply Corporation’s FM100 project in service and Seneca fully utilizing its expanded firm transportation portfolio, we have reached an inflection point where we now anticipate generating meaningful free cash flow into the future. We expect to use that free cash flow to reduce leverage on our balance sheet and pursue shareholder value-enhancing opportunities to deploy capital across the system.”

DIVESTITURE OF CALIFORNIA PROPERTIES

On May 1, 2022, the Company entered into a purchase and sale agreement to sell Seneca’s California oil and gas assets to Sentinel Peak Resources California LLC for total consideration between $280 million and $310 million, depending on oil prices. This consideration consists of $280 million in cash at closing, plus up to three annual contingent payments between calendar 2023 and 2025 that can total $30 million in aggregate. The value of these contingent payments is $1 million for each dollar that Brent crude oil prices average over $95 per barrel in each respective year, with a maximum of $10 million in any given year. The transaction has an effective date of April 1, 2022 and is expected to close on June 30, 2022, subject to customary closing conditions (including waivers of certain transfer restrictions).

Mr. Bauer added: “Our California operations and the team supporting them have been a terrific asset to Seneca over the three-plus decades that we have owned them, generating substantial free cash that supported our significant investment in the Appalachian Basin. However, given the strength of commodity prices, and the continued growth of Seneca’s Appalachian position, the timing was right to pursue a sale. Proceeds from this transaction will help accelerate our deleveraging efforts and provide us additional financial flexibility in the near-term.”

Kirkland & Ellis LLP served as the legal advisor to National Fuel. Lazard Capital served as financial advisor in connection with the transaction.

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

		Three Months Ended								Six Months Ended
		March 31,								March 31,
(in thousands except per share amounts)			2022				2021				2022				2021
Reported GAAP Earnings		$	167,328			$	112,436			$	299,720			$	190,210
Items impacting comparability:
Reduction of other post-retirement regulatory liability (Utility)			(18,533	)			—				(18,533	)			—
Tax impact of reduction of other post-retirement regulatory liability			3,892				—				3,892				—
Impairment of oil and gas properties (E&P)			—				—				—				76,152
Tax impact of impairment of oil and gas properties			—				—				—				(20,980	)
Gain on sale of timber properties (Corporate / All Other)			—				—				—				(51,066	)
Tax impact of gain on sale of timber properties			—				—				—				14,069
Premium paid on early redemption of debt			—				15,715				—				15,715
Tax impact of premium paid on early redemption of debt			—				(4,321	)			—				(4,321	)
Unrealized (gain) loss on other investments (Corporate / All Other)			2,170				(848	)			6,659				450
Tax impact of unrealized (gain) loss on other investments			(456	)			178				(1,398	)			(94	)
Adjusted Operating Results		$	154,401			$	123,160			$	290,340			$	220,135
Reported GAAP Earnings Per Share		$	1.82			$	1.23			$	3.26			$	2.08
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax (Utility)			(0.16	)			—				(0.16	)			—
Impairment of oil and gas properties, net of tax (E&P)			—				—				—				0.60
Gain on sale of timber properties, net of tax (Corporate / All Other)			—				—				—				(0.40	)
Premium paid on early redemption of debt, net of tax			—				0.12				—				0.12
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)			0.02				(0.01	)			0.05				—
Adjusted Operating Results Per Share		$	1.68			$	1.34			$	3.15			$	2.40

FISCAL 2022 GUIDANCE UPDATE

National Fuel is revising its fiscal 2022 earnings guidance range and is now projecting earnings, excluding items impacting comparability, will be within the range of $5.70 to $6.00 per share, an increase of $0.50 per share from the midpoint of the Company’s prior guidance range. This updated range reflects the results of the second quarter, along with updated assumptions for the balance of the year, which have been adjusted to exclude Seneca’s California operations as of June 30, 2022 in conjunction with the expected closing date of its divestiture.

The Company is now assuming that NYMEX natural gas prices will average $7.25 per MMBtu for the remainder of fiscal 2022, a $2.75 increase per MMBtu from the $4.50 per MMBtu assumed in the previous guidance. Additionally, the Company is now projecting that WTI oil prices will average $100.00 per Bbl for the remainder of the year, a $20.00 increase from the $80.00 per Bbl assumed in the previous guidance. For guidance purposes, the Company’s updated projections approximate the current NYMEX forward markets for natural gas and oil and consider the impact of local sales point differentials and new physical firm sales, transportation, and financial hedge contracts.

The Exploration and Production segment’s fiscal 2022 net production is now expected to be in the range of 340 to 360 Bcfe, a 2.5 Bcfe reduction at the midpoint. However, this revised range reflects the loss of approximately 4 Bcfe of production related to the sale of Seneca’s California properties. Seneca currently has firm sales contracts in place for approximately 90% of its projected remaining fiscal 2022 Appalachian production, limiting its exposure to in-basin markets. Approximately 83% of expected remaining Appalachian production is either matched by a financial hedge or was entered into at a fixed price.

As a result of the expected divestiture of its California operations, Seneca has revised its unit costs to reflect the removal of higher cost oil production, when compared to its Appalachian operations. Lease Operating Expense (“LOE”) has been revised lower, now expected to be within the range of $0.78 to $0.80 per Mcfe. Depreciation, Depletion and Amortization (“DD&A”) was revised to a range of $0.58 to $0.60 per Mcfe. Also, General & Administrative ("G&A”) expense has been reduced to a range of $0.19 to $0.20 per Mcfe, which excludes any potential transaction costs associated with sale of the California operations.

The Company’s consolidated capital expenditures are now expected to be in the range of $725 to $870 million, a $60.0 million, or 8%, increase from the midpoint of previous guidance. The $50 million increase at the midpoint in the Exploration and Production segment is largely related to a planned acceleration of completions activity this summer, including utilizing our spot crew on two Tioga County Utica pads sooner than previously forecasted. Increased production resulting from this acceleration is expected to commence later this fiscal year and ramp up in the following quarters, maximizing production for the upcoming winter. Additionally, Seneca continues to experience modest inflation above previous expectations. Lastly, the Utility segment is expecting increased spending during the upcoming construction season as part of its ongoing modernization program focused on replacing aging infrastructure and reducing our emission profile.

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

DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended March 31, 2022 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the six months ended March 31, 2022 are summarized on pages 11 and 12). It may be helpful to refer to those tables while reviewing this discussion.

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

Upstream Business

Exploration and Production Segment

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

	Three Months Ended
	March 31,
(in thousands)		2022			2021		Variance
GAAP Earnings	$	71,121		$	36,822		$	34,299
Premium paid on early redemption of debt, net of tax		—			10,710			(10,710	)
Adjusted Operating Results	$	71,121		$	47,532		$	23,589
Adjusted EBITDA	$	158,450		$	127,146		$	31,304

Seneca’s second quarter GAAP earnings increased $34.3 million versus the prior year. Excluding a $10.7 million (after-tax) loss on the early redemption of long-term debt recorded in the prior year's second quarter, Seneca’s earnings increased $23.6 million primarily due to higher realized natural gas and crude oil prices and higher natural gas production, as well as higher other operating revenues and lower interest expense, partially offset by higher operating expenses.

Seneca produced 87.1 Bcfe during the second quarter, an increase of 1.9 Bcfe, or 2%, from the prior year. This is a result of a 2.1 Bcf increase in natural gas production primarily due to growth from Seneca's two-rig development program in Appalachia. Seneca's crude oil production in California decreased 39 MBbls, or 7%, versus the prior year due to natural production declines.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.60 per Mcf, an increase of $0.32 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $70.45 per Bbl, an increase of $13.34 per Bbl compared to the prior year.

Seneca’s increase in other operating revenues of $4.7 million was primarily attributable to a temporary release of capacity on Leidy South through March 2022.

Lease operating and transportation (“LOE”) expense increased $5.5 million primarily due to higher steam fuel costs as a result of higher natural gas prices, along with higher well repairs and workover activity in California. Depreciation, depletion and amortization ("DD&A") expense increased $4.4 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. Seneca's other operating expenses increased $2.1 million due primarily to higher consulting and technology-related expenses, and an increase in operating costs from additional water treatment plants acquired in September 2021. As a result of the recent increase in natural gas prices, other taxes increased $2.4 million primarily due to a higher expected Impact Fee in Pennsylvania (the Impact Fees are calculated annually based on calendar year NYMEX natural gas prices).

Excluding the premium paid on the early redemption of debt noted above, interest expense decreased $3.2 million due primarily to a decrease in outstanding principal balances associated with Seneca's long-term intercompany borrowings coupled with a lower weighted average interest rate as a result of the Company's issuance of a 2.95% coupon 10-year note in February 2021, which re-financed a 4.9% coupon 10-year note that was redeemed in March 2021.

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
	March 31,
(in thousands)	2022			2021			Variance
GAAP Earnings	$	25,470		$	24,928		$	542
Adjusted EBITDA	$	61,371		$	58,570		$	2,801

The Pipeline and Storage segment’s second quarter GAAP earnings increased $0.5 million versus the prior year primarily due to an increase in operating revenues, partially offset by higher operation and maintenance ("O&M") expense and higher DD&A expense. The increase in operating revenues of $8.7 million was primarily attributable to higher transportation revenues from new demand charges for service on the expansion component of Supply Corporation's FM100 Project, which was placed in service in December 2021. O&M expense increased $4.7 million primarily due to the non-recurrence of a $3.9 million favorable adjustment to the reserve for project development costs recorded in last year's second quarter. Higher pipeline integrity and vehicle fuel costs also contributed to the increase in O&M expense. The increase in DD&A expense of $1.6 million was primarily attributable to incremental depreciation expense from the FM100 Project.

Gathering Segment

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

	Three Months Ended
	March 31,
(in thousands)	2022			2021			Variance
GAAP Earnings	$	22,092		$	20,700		$	1,392
Premium paid on early redemption of debt, net of tax		—			684			(684	)
Adjusted Operating Results	$	22,092		$	21,384		$	708
Adjusted EBITDA	$	43,056		$	41,424		$	1,632

The Gathering segment’s second quarter GAAP earnings increased $1.4 million versus the prior year. Excluding a $0.7 million (after-tax) loss on the early redemption of long-term debt recorded in the prior year's second quarter, the Gathering segment's earnings increased $0.7 million. The earnings increase was primarily driven by higher operating revenues, which was partially offset by higher O&M expense. Operating revenues increased $2.3 million, or 5%, primarily driven by an 8.6 Bcf increase in gathered volumes for a non-affiliated natural gas producer in Appalachia. The increase in O&M expense of $0.7 million was primarily due to higher compressor station operating and preventative maintenance activity during the quarter.

Downstream Business

Utility Segment

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

	Three Months Ended
	March 31,
(in thousands)	2022				2021			Variance
GAAP Earnings	$	53,048			$	32,044		$	21,004
Reduction of other post-retirement regulatory liability, net of tax		(14,641	)			—			(14,641	)
Adjusted Operating Results	$	38,407			$	32,044		$	6,363
Adjusted EBITDA	$	77,529			$	73,885		$	3,644

The Utility segment’s second quarter GAAP earnings increased $21.0 million versus the prior year. In February 2022, the Pennsylvania Public Utilities Commission concluded a regulatory proceeding that addressed Distribution’s recovery of other post-employment benefit (“OPEB”) expenses. As a result of that proceeding, Distribution recorded an adjustment to an OPEB-related regulatory liability that benefitted earnings by $18.5 million ($14.6 million after-tax) and agreed to reduce its base rates in Pennsylvania to eliminate the recovery of OPEB expenses effective October 1, 2021.

Excluding the impact of the reduction in the OPEB regulatory liability, the Utility segment's second quarter earnings increased $6.4 million primarily due to higher customer margin (operating revenues less purchased gas sold) and a decrease in non-service post-retirement benefit costs recorded in other income (deductions). The increase in customer margin was due primarily to increased customer usage, largely attributable to colder weather in Distribution's Pennsylvania territory (Pennsylvania was 8% colder on average than last year), combined with higher revenues from the Company's system modernization tracking mechanism in its New York service territory. These factors were partially offset by the aforementioned reduction in base rates in Pennsylvania. The impact of weather variations on earnings in Distribution's New York service territory is largely mitigated by that jurisdiction's weather normalization clause. With the elimination of OPEB expenses in customer rates, there was a decrease in non-service post-retirement benefit costs recorded in other income (deductions). Distribution’s Pennsylvania service territory recognized OPEB income during the second quarter of fiscal 2022 whereas in the prior year’s second quarter it recognized OPEB expenses to match against the OPEB amounts collected in base rates.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $4.4 million in the current year second quarter, which was a $2.3 million higher than the combined net loss of $2.1 million in the prior-year second quarter. The increase in net loss was primarily driven by unrealized losses on investment securities recognized in the current quarter compared to unrealized gains on investment securities in the prior-year second quarter.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 6, 2022, at 11 a.m. Eastern Time to discuss this announcement. Pre-registration is required to access the teleconference by phone in a listen-only mode by following this link: http://www.directeventreg.com/registration/event/4564187. To access the webcast, visit the Events Calendar under the News & Events page on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay of the conference call will be available approximately two hours following the teleconference at the same website link and by phone at 416-621-4642 or 800-585-8367 using conference ID number “4564187”. Both the webcast and conference call replay will be available until the close of business on Friday, May 13, 2022.

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

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; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; changes in economic conditions, including inflationary pressures and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas or oil; 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 and oil reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; 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 and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; 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 or oil 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 oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2022. Additional details on the Company's forecast assumptions and business segment guidance 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 six months ended March 31, 2022, including: (1) the after-tax reduction of an other post-retirement regulatory liability, which increased earnings by $0.16 per share; and (2) after-tax unrealized losses on other investments, which reduced earnings by $0.05 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the six months ending September 30, 2022, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	Updated FY 2022 Guidance			Previous FY 2022 Guidance
Consolidated Earnings per Share, excluding items impacting comparability	$5.70 to $6.00			$5.20 to $5.50
Consolidated Effective Tax Rate	~ 25-26%			~ 25-26%
Capital Expenditures(Millions)
Exploration and Production	$475 - $550			$425 - $500
Pipeline and Storage	$100 - $150			$100 - $150
Gathering	$50 - $60			$50 - $60
Utility	$100 - $110			$90 - $100
Consolidated Capital Expenditures	$725 - $870			$665 - $810
Exploration & Production Segment Guidance*
Commodity Price Assumptions
NYMEX natural gas price	$7.25 /MMBtu			$4.50 /MMBtu
Appalachian basin spot price	$6.25 /MMBtu			$3.65 /MMBtu
NYMEX (WTI) crude oil price	$100.00 /Bbl			$80.00 /Bbl
California oil price premium (% of WTI)	99%			97%
Production (Bcfe)	340 to 360			340 to 365
E&P Operating Costs($/Mcfe)
LOE	$0.78 - $0.80			$0.81 - $0.84
G&A	$0.19 - $0.20			$0.19 - $0.21
DD&A	$0.58 - $0.60			$0.59 - $0.62
Other Business Segment Guidance(Millions)
Gathering Segment Revenues	$205 - $225			$200 - $225
Pipeline and Storage Segment Revenues	$360 - $380			$360 - $380

* Commodity price assumptions are for the remaining 6 months of the fiscal year.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2022
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Second quarter 2021 GAAP earnings	$	36,822			$	24,928			$	20,700			$	32,044			$	(2,058	)		$	112,436
Items impacting comparability:
Premium paid on early redemption of debt		14,772								943												15,715
Tax impact of premium paid on early redemption of debt		(4,062	)							(259	)											(4,321	)
Unrealized (gain) loss on other investments																		(848	)			(848	)
Tax impact of unrealized (gain) loss on other investments																		178				178
Second quarter 2021 adjusted operating results		47,532				24,928				21,384				32,044				(2,728	)			123,160
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		3,758																				3,758
Higher (lower) crude oil production		(1,755	)																			(1,755	)
Higher (lower) realized natural gas prices, after hedging		21,487																				21,487
Higher (lower) realized crude oil prices, after hedging		5,508																				5,508
Higher (lower) other operating revenues		3,713																				3,713
Midstream Revenues
Higher (lower) operating revenues						6,257				1,850												8,107
Downstream Margins***
Impact of usage and weather														3,014								3,014
Impact of new rates														(3,055	)							(3,055	)
System modernization tracker revenues														1,594								1,594
Operating Expenses
Lower (higher) lease operating and transportation expenses		(4,377	)																			(4,377	)
Lower (higher) operating expenses		(1,690	)			(3,729	)			(567	)											(5,986	)
Lower (higher) property, franchise and other taxes		(1,913	)			(315	)															(2,228	)
Lower (higher) depreciation / depletion		(3,482	)			(1,236	)															(4,718	)
Other Income (Expense)
(Higher) lower other deductions														5,197				(968	)			4,229
(Higher) lower interest expense		2,563																				2,563
Income Taxes
Lower (higher) income tax expense / effective tax rate		(307	)			(171	)			(508	)			(1,164	)			1,201				(949	)
All other / rounding		84				(264	)			(67	)			777				(194	)			336
Second quarter 2022 adjusted operating results		71,121				25,470				22,092				38,407				(2,689	)			154,401
Items impacting comparability:
Reduction of other post-retirement regulatory liability														18,533								18,533
Tax impact of reduction of other post-retirement regulatory liability														(3,892	)							(3,892	)
Unrealized gain (loss) on other investments																		(2,170	)			(2,170	)
Tax impact of unrealized gain (loss) on other investments																		456				456
Second quarter 2022 GAAP earnings	$	71,121			$	25,470			$	22,092			$	53,048			$	(4,403	)		$	167,328
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2022
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Second quarter 2021 GAAP earnings per share	$	0.40			$	0.27			$	0.23			$	0.35			$	(0.02	)		$	1.23
Items impacting comparability:
Premium paid on early redemption of debt, net of tax		0.12								—												0.12
Unrealized (gain) loss on other investments, net of tax																		(0.01	)			(0.01	)
Second quarter 2021 adjusted operating results per share		0.52				0.27				0.23				0.35				(0.03	)			1.34
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.04																				0.04
Higher (lower) crude oil production		(0.02	)																			(0.02	)
Higher (lower) realized natural gas prices, after hedging		0.23																				0.23
Higher (lower) realized crude oil prices, after hedging		0.06																				0.06
Higher (lower) other operating revenues		0.04																				0.04
Midstream Revenues
Higher (lower) operating revenues						0.07				0.02												0.09
Downstream Margins***
Impact of usage and weather														0.03								0.03
Impact of new rates														(0.03	)							(0.03	)
System modernization tracker revenues														0.02								0.02
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.05	)																			(0.05	)
Lower (higher) operating expenses		(0.02	)			(0.04	)			(0.01	)											(0.07	)
Lower (higher) property, franchise and other taxes		(0.02	)			—																(0.02	)
Lower (higher) depreciation / depletion		(0.04	)			(0.01	)															(0.05	)
Other Income (Expense)
(Higher) lower other deductions														0.06				(0.01	)			0.05
(Higher) lower interest expense		0.03																				0.03
Income Taxes
Lower (higher) income tax expense / effective tax rate		—				—				(0.01	)			(0.01	)			0.01				(0.01	)
All other / rounding		—				(0.01	)			0.01				—				—				—
Second quarter 2022 adjusted operating results per share		0.77				0.28				0.24				0.42				(0.03	)			1.68
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax														0.16								0.16
Unrealized gain (loss) on other investments, net of tax																		(0.02	)			(0.02	)
Second quarter 2022 GAAP earnings per share	$	0.77			$	0.28			$	0.24			$	0.58			$	(0.05	)		$	1.82
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2022
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Six months ended March 31, 2021 GAAP earnings	$	7,199			$	49,112			$	41,250			$	55,081			$	37,568			$	190,210
Items impacting comparability:
Impairment of oil and gas properties		76,152																				76,152
Tax impact of impairment of oil and gas properties		(20,980	)																			(20,980	)
Gain on sale of timber properties																		(51,066	)			(51,066	)
Tax impact of gain on sale of timber properties																		14,069				14,069
Premium paid on early redemption of debt		14,772								943												15,715
Tax impact of premium paid on early redemption of debt		(4,062	)							(259	)											(4,321	)
Unrealized (gain) loss on other investments																		450				450
Tax impact of unrealized (gain) loss on other investments																		(94	)			(94	)
Six months ended March 31, 2021 adjusted operating results		73,081				49,112				41,934				55,081				927				220,135
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		13,570																				13,570
Higher (lower) crude oil production		(2,303	)																			(2,303	)
Higher (lower) realized natural gas prices, after hedging		45,877																				45,877
Higher (lower) realized crude oil prices, after hedging		11,664																				11,664
Higher (lower) other operating revenues		5,618																				5,618
Midstream Revenues
Higher (lower) operating revenues						6,375				5,972												12,347
Downstream Margins***
Impact of usage and weather														2,962								2,962
Impact of new rates														(4,840	)							(4,840	)
System modernization tracker revenues														2,375								2,375
Regulatory revenue adjustments														(804	)							(804	)
Higher (lower) energy marketing margins																		1,298				1,298
Operating Expenses
Lower (higher) lease operating and transportation expenses		(7,186	)																			(7,186	)
Lower (higher) operating expenses		(3,035	)			(4,519	)			(1,346	)			(1,913	)							(10,813	)
Lower (higher) property, franchise and other taxes		(2,931	)			(424	)															(3,355	)
Lower (higher) depreciation / depletion		(6,781	)			(1,499	)			(594	)							311				(8,563	)
Other Income (Expense)
(Higher) lower other deductions						949								6,891								7,840
(Higher) lower interest expense		5,216				421												(869	)			4,768
Income Taxes
Lower (higher) income tax expense / effective tax rate		565				222				(703	)			855				(1,226	)			(287	)
All other / rounding		135				—				(34	)			(70	)			6				37
Six months ended March 31, 2022 adjusted operating results		133,490				50,637				45,229				60,537				447				290,340
Items impacting comparability:
Reduction of other post-retirement regulatory liability														18,533								18,533
Tax impact of reduction of other post-retirement regulatory liability														(3,892	)							(3,892	)
Unrealized gain (loss) on other investments																		(6,659	)			(6,659	)
Tax impact of unrealized gain (loss) on other investments																		1,398				1,398
Six months ended March 31, 2022 GAAP earnings	$	133,490			$	50,637			$	45,229			$	75,178			$	(4,814	)		$	299,720
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2022
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Six months ended March 31, 2021 GAAP earnings per share	$	0.08			$	0.54			$	0.45			$	0.60			$	0.41			$	2.08
Items impacting comparability:
Impairment of oil and gas properties, net of tax		0.60																				0.60
Gain on sale of timber properties, net of tax																		(0.40	)			(0.40	)
Premium paid on early redemption of debt, net of tax		0.12								—												0.12
Unrealized (gain) loss on other investments, net of tax																		—				—
Six months ended March 31, 2021 adjusted operating results per share		0.80				0.54				0.45				0.60				0.01				2.40
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.15																				0.15
Higher (lower) crude oil production		(0.03	)																			(0.03	)
Higher (lower) realized natural gas prices, after hedging		0.50																				0.50
Higher (lower) realized crude oil prices, after hedging		0.13																				0.13
Higher (lower) other operating revenues		0.06																				0.06
Midstream Revenues
Higher (lower) operating revenues						0.07				0.06												0.13
Downstream Margins***
Impact of usage and weather														0.03								0.03
Impact of new rates														(0.05	)							(0.05	)
System modernization tracker revenues														0.03								0.03
Regulatory revenue adjustments														(0.01	)							(0.01	)
Higher (lower) energy marketing margins																		0.01				0.01
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.08	)																			(0.08	)
Lower (higher) operating expenses		(0.03	)			(0.05	)			(0.01	)			(0.02	)							(0.11	)
Lower (higher) property, franchise and other taxes		(0.03	)			—																(0.03	)
Lower (higher) depreciation / depletion		(0.07	)			(0.02	)			(0.01	)							—				(0.10	)
Other Income (Expense)
(Higher) lower other deductions						0.01								0.07								0.08
(Higher) lower interest expense		0.06				—												(0.01	)			0.05
Income Taxes
Lower (higher) income tax expense / effective tax rate		0.01				—				(0.01	)			0.01				(0.01	)			—
All other / rounding		(0.02	)			—				0.01				—				—				(0.01	)
Six months ended March 31, 2022 adjusted operating results per share		1.45				0.55				0.49				0.66				—				3.15
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax														0.16								0.16
Unrealized gain (loss) on other investments, net of tax																		(0.05	)			(0.05	)
Six months ended March 31, 2022 GAAP earnings per share	$	1.45			$	0.55			$	0.49			$	0.82			$	(0.05	)		$	3.26
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
	Three Months Ended								Six Months Ended
	March 31,								March 31,
	(Unaudited)								(Unaudited)
SUMMARY OF OPERATIONS		2022				2021				2022				2021
Operating Revenues:
Utility and Energy Marketing Revenues	$	369,092			$	270,849			$	605,776			$	460,315
Exploration and Production and Other Revenues		261,676				220,281				505,957				412,316
Pipeline and Storage and Gathering Revenues		70,952				59,985				136,544				119,644
		701,720				551,115				1,248,277				992,275
Operating Expenses:
Purchased Gas		199,592				106,661				301,219				158,280
Operation and Maintenance:
Utility and Energy Marketing		53,476				52,058				100,120				96,944
Exploration and Production and Other		49,806				41,895				95,425				83,922
Pipeline and Storage and Gathering		33,518				28,133				63,446				56,231
Property, Franchise and Other Taxes		27,717				23,987				52,219				46,768
Depreciation, Depletion and Amortization		91,245				84,342				179,823				167,462
Impairment of Oil and Gas Producing Properties		—				—				—				76,152
		455,354				337,076				792,252				685,759
Gain on Sale of Timber Properties		—				—				—				51,066
Operating Income		246,366				214,039				456,025				357,582
Other Income (Expense):
Other Income (Deductions)		10,018				(10,875	)			8,940				(13,051	)
Interest Expense on Long-Term Debt		(30,079	)			(48,820	)			(60,209	)			(81,076	)
Other Interest Expense		(1,519	)			(1,698	)			(2,680	)			(3,618	)
Income Before Income Taxes		224,786				152,646				402,076				259,837
Income Tax Expense		57,458				40,210				102,356				69,627
Net Income Available for Common Stock	$	167,328			$	112,436			$	299,720			$	190,210
Earnings Per Common Share
Basic	$	1.83			$	1.23			$	3.28			$	2.09
Diluted	$	1.82			$	1.23			$	3.26			$	2.08
Weighted Average Common Shares:
Used in Basic Calculation		91,444,638				91,163,291				91,354,488				91,084,620
Used in Diluted Calculation		92,064,711				91,645,679				92,047,467				91,581,918

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,				September 30,
(Thousands of Dollars)		2022				2021
ASSETS
Property, Plant and Equipment	$	13,457,342			$	13,103,639
Less - Accumulated Depreciation, Depletion and Amortization		6,882,961				6,719,356
Net Property, Plant and Equipment		6,574,381				6,384,283
Current Assets:
Cash and Temporary Cash Investments		52,569				31,528
Hedging Collateral Deposits		102,370				88,610
Receivables - Net		339,421				205,294
Unbilled Revenue		49,551				17,000
Gas Stored Underground		6,302				33,669
Materials, Supplies and Emission Allowances		48,887				53,560
Unrecovered Purchased Gas Costs		3,751				33,128
Other Current Assets		68,265				59,660
Total Current Assets		671,116				522,449
Other Assets:
Recoverable Future Taxes		123,709				121,992
Unamortized Debt Expense		9,735				10,589
Other Regulatory Assets		57,693				60,145
Deferred Charges		81,646				59,939
Other Investments		103,164				149,632
Goodwill		5,476				5,476
Prepaid Pension and Post-Retirement Benefit Costs		178,102				149,151
Fair Value of Derivative Financial Instruments		1				—
Other		—				1,169
Total Other Assets		559,526				558,093
Total Assets	$	7,805,023			$	7,464,825
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,449,226 Shares and 91,181,549 Shares, Respectively	$	91,449			$	91,182
Paid in Capital		1,018,784				1,017,446
Earnings Reinvested in the Business		1,407,683				1,191,175
Accumulated Other Comprehensive Loss		(654,254	)			(513,597	)
Total Comprehensive Shareholders' Equity		1,863,662				1,786,206
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,081,529				2,628,687
Total Capitalization		3,945,191				4,414,893
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		218,000				158,500
Current Portion of Long-Term Debt		549,000				—
Accounts Payable		135,775				171,655
Amounts Payable to Customers		3,422				21
Dividends Payable		41,608				41,487
Interest Payable on Long-Term Debt		17,376				17,376
Customer Advances		—				17,223
Customer Security Deposits		20,766				19,292
Other Accruals and Current Liabilities		218,139				194,169
Fair Value of Derivative Financial Instruments		802,076				616,410
Total Current and Accrued Liabilities		2,006,162				1,236,133
Other Liabilities:
Deferred Income Taxes		709,598				660,420
Taxes Refundable to Customers		348,480				354,089
Cost of Removal Regulatory Liability		252,471				245,636
Other Regulatory Liabilities		196,589				200,643
Pension and Other Post-Retirement Liabilities		4,756				7,526
Asset Retirement Obligations		207,047				209,639
Other Liabilities		134,729				135,846
Total Other Liabilities		1,853,670				1,813,799
Commitments and Contingencies		—				—
Total Capitalization and Liabilities	$	7,805,023			$	7,464,825

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Six Months Ended
		March 31,
(Thousands of Dollars)			2022				2021
Operating Activities:
Net Income Available for Common Stock		$	299,720			$	190,210
Adjustments to Reconcile Net Income to Net Cash   Provided by Operating Activities:
Gain on Sale of Timber Properties			—				(51,066	)
Impairment of Oil and Gas Producing Properties			—				76,152
Depreciation, Depletion and Amortization			179,823				167,462
Deferred Income Taxes			94,212				61,408
Premium Paid on Early Redemption of Debt			—				15,715
Stock-Based Compensation			10,631				8,657
Reduction of Other Post-Retirement Regulatory Liability			(18,533	)			—
Other			14,494				6,742
Change in:
Receivables and Unbilled Revenue			(166,584	)			(101,159	)
Gas Stored Underground and Materials, Supplies and Emission Allowances			32,040				27,258
Unrecovered Purchased Gas Costs			29,377				(479	)
Other Current Assets			(8,605	)			(8,447	)
Accounts Payable			2,006				8,613
Amounts Payable to Customers			3,401				8,980
Customer Advances			(17,223	)			(15,319	)
Customer Security Deposits			1,474				2,304
Other Accruals and Current Liabilities			11,164				9,058
Other Assets			(32,659	)			11,039
Other Liabilities			(9,119	)			5
Net Cash Provided by Operating Activities		$	425,619			$	417,133
Investing Activities:
Capital Expenditures		$	(415,415	)		$	(338,867	)
Net Proceeds from Sale of Oil and Gas Producing Properties			13,525				—
Net Proceeds from Sale of Timber Properties			—				104,582
Sale of Fixed Income Mutual Fund Shares in Grantor Trust			30,000				—
Other			13,689				12,095
Net Cash Used in Investing Activities		$	(358,201	)		$	(222,190	)
Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper		$	59,500			$	(30,000	)
Reduction of Long-Term Debt			—				(515,715	)
Dividends Paid on Common Stock			(83,091	)			(81,035	)
Net Proceeds From Issuance of Long-Term Debt			—				495,267
Net Repurchases of Common Stock			(9,026	)			(3,534	)
Net Cash Used in Financing Activities		$	(32,617	)		$	(135,017	)
Net Increase in Cash, Cash Equivalents, and Restricted Cash			34,801				59,926
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			120,138				20,541
Cash, Cash Equivalents, and Restricted Cash at March 31		$	154,939			$	80,467

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
	Three Months Ended											Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,											March 31,
EXPLORATION AND PRODUCTION SEGMENT		2022				2021			Variance				2022			2021		Variance
Total Operating Revenues	$	261,593			$	220,187			$	41,406		$	505,791		$	411,582		$	94,209
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		18,798				17,899				899			36,553			34,852			1,701
Lease Operating and Transportation Expense		72,548				67,008				5,540			141,684			132,588			9,096
All Other Operation and Maintenance Expense		4,756				3,515				1,241			9,328			7,187			2,141
Property, Franchise and Other Taxes		7,041				4,619				2,422			12,775			9,065			3,710
Depreciation, Depletion and Amortization		50,547				46,139				4,408			100,054			91,471			8,583
Impairment of Oil and Gas Producing Properties		—				—				—			—			76,152			(76,152	)
		153,690				139,180				14,510			300,394			351,315			(50,921	)
Operating Income		107,903				81,007				26,896			205,397			60,267			145,130
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(186	)			(286	)			100			(372	)		(570	)		198
Interest and Other Income		75				67				8			131			158			(27	)
Interest Expense on Long-Term Debt		—				(15,119	)			15,119			—			(15,119	)		15,119
Interest Expense		(12,206	)			(15,103	)			2,897			(24,338	)		(30,594	)		6,256
Income Before Income Taxes		95,586				50,566				45,020			180,818			14,142			166,676
Income Tax Expense		24,465				13,744				10,721			47,328			6,943			40,385
Net Income	$	71,121			$	36,822			$	34,299		$	133,490		$	7,199		$	126,291
Net Income Per Share (Diluted)	$	0.77			$	0.40			$	0.37		$	1.45		$	0.08		$	1.37

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
	Three Months Ended												Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,												March 31,
PIPELINE AND STORAGE SEGMENT		2022				2021			Variance					2022			2021		Variance
Revenues from External Customers	$	67,795			$	59,314			$	8,481			$	129,342		$	118,623		$	10,719
Intersegment Revenues		27,602				27,390				212				54,405			55,846			(1,441	)
Total Operating Revenues		95,397				86,704				8,693				183,747			174,469			9,278
Operating Expenses:
Purchased Gas		989				216				773				1,437			229			1,208
Operation and Maintenance		24,438				19,718				4,720				46,611			40,891			5,720
Property, Franchise and Other Taxes		8,599				8,200				399				17,180			16,643			537
Depreciation, Depletion and Amortization		17,294				15,729				1,565				33,095			31,197			1,898
		51,320				43,863				7,457				98,323			88,960			9,363
Operating Income		44,077				42,841				1,236				85,424			85,509			(85	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		767				125				642				1,534			250			1,284
Interest and Other Income		192				939				(747	)			1,595			1,795			(200	)
Interest Expense		(10,618	)			(10,552	)			(66	)			(20,750	)		(21,283	)		533
Income Before Income Taxes		34,418				33,353				1,065				67,803			66,271			1,532
Income Tax Expense		8,948				8,425				523				17,166			17,159			7
Net Income	$	25,470			$	24,928			$	542			$	50,637		$	49,112		$	1,525
Net Income Per Share (Diluted)	$	0.28			$	0.27			$	0.01			$	0.55		$	0.54		$	0.01
	Three Months Ended												Six Months Ended
	March 31,												March 31,
GATHERING SEGMENT		2022				2021			Variance					2022			2021		Variance
Revenues from External Customers	$	3,157			$	671			$	2,486			$	7,202		$	1,021		$	6,181
Intersegment Revenues		49,447				49,591				(144	)			97,627			96,249			1,378
Total Operating Revenues		52,604				50,262				2,342				104,829			97,270			7,559
Operating Expenses:
Operation and Maintenance		9,551				8,833				718				17,739			16,035			1,704
Property, Franchise and Other Taxes		(3	)			5				(8	)			2			18			(16	)
Depreciation, Depletion and Amortization		8,362				8,096				266				16,753			16,001			752
		17,910				16,934				976				34,494			32,054			2,440
Operating Income		34,694				33,328				1,366				70,335			65,216			5,119
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(56	)			(68	)			12				(112	)		(135	)		23
Interest and Other Income		18				9				9				27			243			(216	)
Interest Expense on Long-Term Debt		—				(965	)			965				—			(965	)		965
Interest Expense		(4,071	)			(4,201	)			130				(8,219	)		(8,332	)		113
Income Before Income Taxes		30,585				28,103				2,482				62,031			56,027			6,004
Income Tax Expense		8,493				7,403				1,090				16,802			14,777			2,025
Net Income	$	22,092			$	20,700			$	1,392			$	45,229		$	41,250		$	3,979
Net Income Per Share (Diluted)	$	0.24			$	0.23			$	0.01			$	0.49		$	0.45		$	0.04

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESS
	Three Months Ended												Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,												March 31,
UTILITY SEGMENT		2022				2021			Variance					2022			2021		Variance
Revenues from External Customers	$	369,092			$	270,784			$	98,308			$	605,776		$	459,684		$	146,092
Intersegment Revenues		110				97				13				184			197			(13	)
Total Operating Revenues		369,202				270,881				98,321				605,960			459,881			146,079
Operating Expenses:
Purchased Gas		225,469				133,132				92,337				352,680			210,164			142,516
Operation and Maintenance		54,249				52,864				1,385				101,710			98,116			3,594
Property, Franchise and Other Taxes		11,955				11,000				955				22,013			20,748			1,265
Depreciation, Depletion and Amortization		14,997				14,311				686				29,827			28,305			1,522
		306,670				211,307				95,363				506,230			357,333			148,897
Operating Income		62,532				59,574				2,958				99,730			102,548			(2,818	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit (Costs)		13,023				(12,243	)			25,266				8,697			(18,927	)		27,624
Interest and Other Income		289				443				(154	)			813			1,181			(368	)
Interest Expense		(5,504	)			(5,495	)			(9	)			(11,028	)		(10,947	)		(81	)
Income Before Income Taxes		70,340				42,279				28,061				98,212			73,855			24,357
Income Tax Expense		17,292				10,235				7,057				23,034			18,774			4,260
Net Income	$	53,048			$	32,044			$	21,004			$	75,178		$	55,081		$	20,097
Net Income Per Share (Diluted)	$	0.58			$	0.35			$	0.23			$	0.82		$	0.60		$	0.22

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
	Three Months Ended												Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,												March 31,
ALL OTHER		2022				2021			Variance					2022			2021		Variance
Revenues from External Customers	$	—			$	64			$	(64	)		$	—		$	1,175		$	(1,175	)
Intersegment Revenues		—				1				(1	)			6			20			(14	)
Total Operating Revenues		—				65				(65	)			6			1,195			(1,189	)
Operating Expenses:
Purchased Gas		—				6				(6	)			6			2,293			(2,287	)
Operation and Maintenance		—				(81	)			81				5			683			(678	)
Property, Franchise and Other Taxes		—				38				(38	)			—			47			(47	)
Depreciation, Depletion and Amortization		—				9				(9	)			—			394			(394	)
		—				(28	)			28				11			3,417			(3,406	)
Gain on Sale of Timber Properties		—				—				—				—			51,066			(51,066	)
Operating Income (Loss)		—				93				(93	)			(5	)		48,844			(48,849	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		—				(3	)			3				—			(7	)		7
Interest and Other Income		—				41				(41	)			2			225			(223	)
Income (Loss) before Income Taxes		—				131				(131	)			(3	)		49,062			(49,065	)
Income Tax Expense		—				1,114				(1,114	)			4			12,485			(12,481	)
Net Income (Loss)	$	—			$	(983	)		$	983			$	(7	)	$	36,577		$	(36,584	)
Net Income (Loss) Per Share (Diluted)	$	—			$	(0.01	)		$	0.01			$	—		$	0.40		$	(0.40	)
	Three Months Ended												Six Months Ended
	March 31,												March 31,
CORPORATE		2022				2021			Variance					2022			2021		Variance
Revenues from External Customers	$	83			$	95			$	(12	)		$	166		$	190		$	(24	)
Intersegment Revenues		1,082				1,027				55				2,165			1,691			474
Total Operating Revenues		1,165				1,122				43				2,331			1,881			450
Operating Expenses:
Operation and Maintenance		3,835				3,743				92				6,844			6,342			502
Property, Franchise and Other Taxes		125				125				—				249			247			2
Depreciation, Depletion and Amortization		45				58				(13	)			94			94			—
		4,005				3,926				79				7,187			6,683			504
Operating Loss		(2,840	)			(2,804	)			(36	)			(4,856	)		(4,802	)		(54	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(1,017	)			(922	)			(95	)			(2,034	)		(1,846	)		(188	)
Interest and Other Income		28,740				35,317				(6,577	)			61,918			74,296			(12,378	)
Interest Expense on Long-Term Debt		(30,079	)			(32,736	)			2,657				(60,209	)		(64,992	)		4,783
Other Interest Expense		(947	)			(641	)			(306	)			(1,604	)		(2,176	)		572
Income (Loss) before Income Taxes		(6,143	)			(1,786	)			(4,357	)			(6,785	)		480			(7,265	)
Income Tax Expense (Benefit)		(1,740	)			(711	)			(1,029	)			(1,978	)		(511	)		(1,467	)
Net Income (Loss)	$	(4,403	)		$	(1,075	)		$	(3,328	)		$	(4,807	)	$	991		$	(5,798	)
Net Income (Loss) Per Share (Diluted)	$	(0.05	)		$	(0.01	)		$	(0.04	)		$	(0.05	)	$	0.01		$	(0.06	)
	Three Months Ended												Six Months Ended
	March 31,												March 31,
INTERSEGMENT ELIMINATIONS		2022				2021			Variance					2022			2021		Variance
Intersegment Revenues	$	(78,241	)		$	(78,106	)		$	(135	)		$	(154,387	)	$	(154,003	)	$	(384	)
Operating Expenses:
Purchased Gas		(26,866	)			(26,693	)			(173	)			(52,904	)		(54,406	)		1,502
Operation and Maintenance		(51,375	)			(51,413	)			38				(101,483	)		(99,597	)		(1,886	)
		(78,241	)			(78,106	)			(135	)			(154,387	)		(154,003	)		(384	)
Operating Income		—				—				—				—			—			—
Other Income (Expense):
Interest and Other Deductions		(31,827	)			(34,294	)			2,467				(63,259	)		(69,714	)		6,455
Interest Expense		31,827				34,294				(2,467	)			63,259			69,714			(6,455	)
Net Income	$	—			$	—			$	—			$	—		$	—		$	—
Net Income Per Share (Diluted)	$	—			$	—			$	—			$	—		$	—		$	—

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
	Three Months Ended										Six Months Ended
	March 31,										March 31,
	(Unaudited)										(Unaudited)
							Increase										Increase
	2022			2021			(Decrease)				2022			2021			(Decrease)
Capital Expenditures:
Exploration and Production	$	134,748	(1)	$	88,271	(3)	$	46,477			$	273,960	(1)(2)	$	169,610	(3)(4)	$	104,350
Pipeline and Storage		14,404	(1)		47,970	(3)		(33,566	)			38,465	(1)(2)		91,693	(3)(4)		(53,228	)
Gathering		11,055	(1)		11,099	(3)		(44	)			19,975	(1)(2)		19,419	(3)(4)		556
Utility		23,925	(1)		24,480	(3)		(555	)			43,308	(1)(2)		41,825	(3)(4)		1,483
Total Reportable Segments		184,132			171,820			12,312				375,708			322,547			53,161
All Other		—			—			—				—			—			—
Corporate		271			50			221				496			89			407
Eliminations		—			(373	)		373				—			(219	)		219
Total Capital Expenditures	$	184,403		$	171,497		$	12,906			$	376,204		$	322,417		$	53,787

(1)		Capital expenditures for the quarter and six months ended March 31, 2022, include accounts payable and accrued liabilities related to capital expenditures of $52.5 million, $3.5 million, $3.4 million, and $4.1 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2022, since they represent non-cash investing activities at that date.
(2)		Capital expenditures for the six months ended March 31, 2022, exclude capital expenditures of $47.9 million, $39.4 million, $4.8 million and $10.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2021 and paid during the six months ended March 31, 2022. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2021, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2022.
(3)		Capital expenditures for the quarter and six months ended March 31, 2021, include accounts payable and accrued liabilities related to capital expenditures of $44.5 million, $16.0 million, $2.9 million, and $4.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2021, since they represent non-cash investing activities at that date.
(4)		Capital expenditures for the six months ended March 31, 2021, exclude capital expenditures of $45.8 million, $17.3 million, $13.5 million and $10.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2020 and paid during the six months ended March 31, 2021. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2020, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2021.

 

DEGREE DAYS
							Percent Colder
							(Warmer) Than:
Three Months Ended March 31,	Normal		2022		2021		Normal(1)			Last Year(1)
Buffalo, NY	3,290		3,161		2,978		(3.9	)		6.1
Erie, PA	3,108		2,973		2,750		(4.3	)		8.1
Six Months Ended March 31,
Buffalo, NY	5,543		4,865		4,899		(12.2	)		(0.7	)
Erie, PA	5,152		4,533		4,447		(12.0	)		1.9

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

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
		Three Months Ended										Six Months Ended
		March 31,										March 31,
								Increase										Increase
		2022				2021		(Decrease)				2022			2021			(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia			83,565			81,446			2,119				164,954			157,115			7,839
West Coast			397			428			(31	)			805			869			(64	)
Total Production			83,962			81,874			2,088				165,759			157,984			7,775
Average Prices (Per Mcf)
Appalachia		$	3.97		$	2.28		$	1.69			$	4.18		$	2.23		$	1.95
West Coast			10.04			7.14			2.90				9.91			6.07			3.84
Weighted Average			4.00			2.31			1.69				4.21			2.25			1.96
Weighted Average after Hedging			2.60			2.28			0.32				2.56			2.21			0.35
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia			1			1			—				1			1			—
West Coast			522			561			(39	)			1,070			1,124			(54	)
Total Production			523			562			(39	)			1,071			1,125			(54	)
Average Prices (Per Barrel)
Appalachia		$	78.32		$	48.47		$	29.85			$	75.38		$	43.83		$	31.55
West Coast			94.95			59.83			35.12				85.93			51.64			34.29
Weighted Average			94.93			59.82			35.11				85.93			51.63			34.30
Weighted Average after Hedging			70.45			57.11			13.34				67.30			53.50			13.80
Total Production (MMcfe)			87,100			85,246			1,854				172,185			164,734			7,451
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe(1)		$	0.22		$	0.21		$	0.01			$	0.21		$	0.21		$	—
Lease Operating and Transportation Expense per Mcfe(1)(2)		$	0.83		$	0.79		$	0.04			$	0.82		$	0.80		$	0.02
Depreciation, Depletion & Amortization per Mcfe(1)		$	0.58		$	0.54		$	0.04			$	0.58		$	0.56		$	0.02

(1)		Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
(2)		Amounts include transportation expense of $0.55 and $0.57 per Mcfe for the three months ended March 31, 2022 and March 31, 2021, respectively. Amounts include transportation expense of $0.56 and $0.57 per Mcfe for the six months ended March 31, 2022 and March 31, 2021, respectively.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Remaining Six Months of Fiscal 2022		Volume						Average Hedge Price
Oil Swaps
Brent		570,000		BBL		$		58.28 / BBL
NYMEX		78,000		BBL		$		51.00 / BBL
Total		648,000		BBL		$		57.40 / BBL
Gas Swaps
NYMEX		107,160,000		MMBTU		$		2.76 / MMBTU
Fixed Price Physical Sales		38,061,033		MMBTU		$		2.65 / MMBTU
Total		145,221,033		MMBTU		$		2.73 / MMBTU
Hedging Summary for Fiscal 2023		Volume						Average Hedge Price
Oil Swaps
Brent		480,000		BBL		$		58.48 / BBL
Total		480,000		BBL		$		58.48 / BBL
Gas Swaps
NYMEX		116,200,000		MMBTU		$		2.79 / MMBTU
No Cost Collars		70,400,000		MMBTU		$		3.11 / MMBTU (Floor) / $3.64 / MMBTU (Ceiling)
Fixed Price Physical Sales		72,896,598		MMBTU		$		2.45 / MMBTU
Total		259,496,598		MMBTU
Hedging Summary for Fiscal 2024		Volume						Average Hedge Price
Oil Swaps
Brent		120,000		BBL		$		50.30 / BBL
Total		120,000		BBL		$		50.30 / BBL
Gas Swaps
NYMEX		61,080,000		MMBTU		$		2.72 / MMBTU
No Cost Collars		59,200,000		MMBTU		$		3.20 / MMBTU (Floor) / $3.78 / MMBTU (Ceiling)
Fixed Price Physical Sales		59,807,855		MMBTU		$		2.22 / MMBTU
Total		180,087,855		MMBTU
Hedging Summary for Fiscal 2025		Volume						Average Hedge Price
Oil Swaps
Brent		120,000		BBL		$		50.32 / BBL
Total		120,000		BBL		$		50.32 / BBL
Gas Swaps
NYMEX		23,660,000		MMBTU		$		2.74 / MMBTU
No Cost Collars		22,400,000		MMBTU		$		3.24 / MMBTU (Floor) / $3.65 / MMBTU (Ceiling)
Fixed Price Physical Sales		56,366,847		MMBTU		$		2.21 / MMBTU
Total		102,426,847		MMBTU
Hedging Summary for Fiscal 2026		Volume						Average Hedge Price
Gas Swaps
NYMEX		1,720,000		MMBTU		$		2.75 / MMBTU
No Cost Collars		19,200,000		MMBTU		$		3.25 / MMBTU (Floor) / $3.61 / MMBTU (Ceiling)
Fixed Price Physical Sales		58,883,559		MMBTU		$		2.30 / MMBTU
Total		79,803,559		MMBTU
Hedging Summary for Fiscal 2027		Volume						Average Hedge Price
No Cost Collars		1,600,000		MMBTU		$		3.25 / MMBTU (Floor) / $3.61 / MMBTU (Ceiling)
Fixed Price Physical Sales		43,434,257		MMBTU		$		2.35 / MMBTU
Total		45,034,257		MMBTU
Hedging Summary for Fiscal 2028		Volume						Average Hedge Price
Fixed Price Physical Sales		11,850,451		MMBTU		$		2.48 / MMBTU
Hedging Summary for Fiscal 2029		Volume						Average Hedge Price
Fixed Price Physical Sales		766,673		MMBTU		$		2.54 / MMBTU

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
		Three Months Ended						Six Months Ended
		March 31,						March 31,
						Increase						Increase
		2022		2021		(Decrease)		2022		2021		(Decrease)
Firm Transportation - Affiliated		46,459		43,124		3,335		74,656		73,088		1,568
Firm Transportation - Non-Affiliated		185,571		166,372		19,199		350,967		339,436		11,531
Interruptible Transportation		752		435		317		1,520		1,024		496
		232,782		209,931		22,851		427,143		413,548		13,595
Gathering Volume - (MMcf)
		Three Months Ended						Six Months Ended
		March 31,						March 31,
						Increase						Increase
		2022		2021		(Decrease)		2022		2021		(Decrease)
Gathered Volume		103,736		95,121		8,615		204,829		183,466		21,363
Utility Throughput - (MMcf)
		Three Months Ended						Six Months Ended
		March 31,						March 31,
						Increase						Increase
		2022		2021		(Decrease)		2022		2021		(Decrease)
Retail Sales:
Residential Sales		32,026		29,052		2,974		49,521		47,465		2,056
Commercial Sales		4,923		4,309		614		7,466		6,836		630
Industrial Sales		268		223		45		392		376		16
		37,217		33,584		3,633		57,379		54,677		2,702
Transportation		25,745		24,584		1,161		43,338		42,518		820
		62,962		58,168		4,794		100,717		97,195		3,522

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

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

Management defines Adjusted Operating Results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the six months ended March 31, 2022 and 2021:

		Three Months Ended								Six Months Ended
		March 31,								March 31,
(in thousands except per share amounts)			2022				2021				2022				2021
Reported GAAP Earnings		$	167,328			$	112,436			$	299,720			$	190,210
Items impacting comparability:
Reduction of other post-retirement regulatory liability (Utility)			(18,533	)			—				(18,533	)			—
Tax impact of reduction of other post-retirement regulatory liability			3,892				—				3,892				—
Impairment of oil and gas properties (E&P)			—				—				—				76,152
Tax impact of impairment of oil and gas properties			—				—				—				(20,980	)
Gain on sale of timber properties (Corporate/All Other)			—				—				—				(51,066	)
Tax impact of gain on sale of timber properties			—				—				—				14,069
Premium paid on early redemption of debt			—				15,715				—				15,715
Tax impact of premium paid on early redemption of debt			—				(4,321	)			—				(4,321	)
Unrealized (gain) loss on other investments (Corporate/All Other)			2,170				(848	)			6,659				450
Tax impact of unrealized (gain) loss on other investments			(456	)			178				(1,398	)			(94	)
Adjusted Operating Results		$	154,401			$	123,160			$	290,340			$	220,135
Reported GAAP Earnings Per Share		$	1.82			$	1.23			$	3.26			$	2.08
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax (Utility)			(0.16	)			—				(0.16	)			—
Impairment of oil and gas properties, net of tax (E&P)			—				—				—				0.60
Gain on sale of timber properties, net of tax (Corporate/All Other)			—				—				—				(0.40	)
Premium paid on early redemption of debt, net of tax			—				0.12				—				0.12
Unrealized (gain) loss on other investments, net of tax (Corporate/All Other)			0.02				(0.01	)			0.05				—
Adjusted Operating Results Per Share		$	1.68			$	1.34			$	3.15			$	2.40

Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and six months ended March 31, 2022 and 2021:

		Three Months Ended								Six Months Ended
		March 31,								March 31,
(in thousands)			2022				2021				2022				2021
Reported GAAP Earnings		$	167,328			$	112,436			$	299,720			$	190,210
Depreciation, Depletion and Amortization			91,245				84,342				179,823				167,462
Other (Income) Deductions			(10,018	)			10,875				(8,940	)			13,051
Interest Expense			31,598				50,518				62,889				84,694
Income Taxes			57,458				40,210				102,356				69,627
Impairment of Oil and Gas Producing Properties			—				—				—				76,152
Gain on Sale of Timber Properties			—				—				—				(51,066	)
Adjusted EBITDA		$	337,611			$	298,381			$	635,848			$	550,130
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA		$	61,371			$	58,570			$	118,519			$	116,706
Gathering Adjusted EBITDA			43,056				41,424				87,088				81,217
Total Midstream Businesses Adjusted EBITDA			104,427				99,994				205,607				197,923
Exploration and Production Adjusted EBITDA			158,450				127,146				305,451				227,890
Utility Adjusted EBITDA			77,529				73,885				129,557				130,853
Corporate and All Other Adjusted EBITDA			(2,795	)			(2,644	)			(4,767	)			(6,536	)
Total Adjusted EBITDA		$	337,611			$	298,381			$	635,848			$	550,130

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

		Three Months Ended								Six Months Ended
		March 31,								March 31,
(in thousands)			2022				2021				2022				2021
Exploration and Production Segment
Reported GAAP Earnings		$	71,121			$	36,822			$	133,490			$	7,199
Depreciation, Depletion and Amortization			50,547				46,139				100,054				91,471
Other (Income) Deductions			111				219				241				412
Interest Expense			12,206				30,222				24,338				45,713
Income Taxes			24,465				13,744				47,328				6,943
Impairment of Oil and Gas Producing Properties			—				—				—				76,152
Adjusted EBITDA		$	158,450			$	127,146			$	305,451			$	227,890
Pipeline and Storage Segment
Reported GAAP Earnings		$	25,470			$	24,928			$	50,637			$	49,112
Depreciation, Depletion and Amortization			17,294				15,729				33,095				31,197
Other (Income) Deductions			(959	)			(1,064	)			(3,129	)			(2,045	)
Interest Expense			10,618				10,552				20,750				21,283
Income Taxes			8,948				8,425				17,166				17,159
Adjusted EBITDA		$	61,371			$	58,570			$	118,519			$	116,706
Gathering Segment
Reported GAAP Earnings		$	22,092			$	20,700			$	45,229			$	41,250
Depreciation, Depletion and Amortization			8,362				8,096				16,753				16,001
Other (Income) Deductions			38				59				85				(108	)
Interest Expense			4,071				5,166				8,219				9,297
Income Taxes			8,493				7,403				16,802				14,777
Adjusted EBITDA		$	43,056			$	41,424			$	87,088			$	81,217
Utility Segment
Reported GAAP Earnings		$	53,048			$	32,044			$	75,178			$	55,081
Depreciation, Depletion and Amortization			14,997				14,311				29,827				28,305
Other (Income) Deductions			(13,312	)			11,800				(9,510	)			17,746
Interest Expense			5,504				5,495				11,028				10,947
Income Taxes			17,292				10,235				23,034				18,774
Adjusted EBITDA		$	77,529			$	73,885			$	129,557			$	130,853
Corporate and All Other
Reported GAAP Earnings		$	(4,403	)		$	(2,058	)		$	(4,814	)		$	37,568
Depreciation, Depletion and Amortization			45				67				94				488
Gain on Sale of Timber Properties			—				—				—				(51,066	)
Other (Income) Deductions			4,104				(139	)			3,373				(2,954	)
Interest Expense			(801	)			(917	)			(1,446	)			(2,546	)
Income Taxes			(1,740	)			403				(1,974	)			11,974
Adjusted EBITDA		$	(2,795	)		$	(2,644	)		$	(4,767	)		$	(6,536	)

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

FAQ

What were National Fuel Gas Company's earnings results for Q2 FY2022?

National Fuel reported a GAAP net income of $167.3 million for Q2 FY2022, or $1.82 per share.

How much has National Fuel adjusted its earnings guidance for FY2022?

National Fuel increased its earnings guidance to a range of $5.70 to $6.00 per share, up by $0.50 at the midpoint.

What is the expected impact of the California asset divestiture on National Fuel's finances?

The divestiture is expected to provide $280-310 million and enhance financial flexibility and deleveraging efforts.

What was the adjusted EBITDA for National Fuel in Q2 FY2022?

Adjusted EBITDA for Q2 FY2022 was $337.6 million, a 13% increase from the previous year.

How much production is National Fuel expected to lose due to the divestiture?

National Fuel expects to lose approximately 4 Bcfe of production due to the sale of its California properties.