National Fuel Reports Second Quarter Earnings

WILLIAMSVILLE, N.Y., May 01, 2024 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2024 fiscal year and for the six months ended March 31, 2024.

FISCAL 2024 SECOND QUARTER SUMMARY

• GAAP net income of $166.3 million, or $1.80 per share, compared to GAAP net income of $140.9 million, or $1.53 per share, in the prior year, an increase of 18% per share.
• Adjusted operating results of $165.3 million, or $1.79 per share, compared to $141.8 million, or $1.54 per share, in the prior year, an increase of 16% per share (see non-GAAP reconciliation on page 2).
• Pipeline and Storage segment revenue was up $12.9 million, or 14%, from the prior year, primarily due to the resolution of the National Fuel Gas Supply Corporation (“Supply Corporation”) rate proceeding, which is expected to increase annual revenues by $56 million.
• Exploration and Production segment produced 103 Bcf of natural gas, an increase of 10% from the prior year, driven by strong operational execution, particularly in the highly productive Eastern Development Area (“EDA”).
• Gathering segment revenue increased $7.0 million, or 12%, from the prior year, primarily as a result of a 15% increase in throughput, driven by both Seneca Resources and third-party producers.
• Utility segment earnings increased by $13.0 million, or 41%, from the prior year largely due to an increase in base rate delivery revenues from our 2023 Pennsylvania jurisdiction rate case settlement.
• Company is revising its fiscal 2024 earnings guidance to a range of $4.75 to $5.05 per share, excluding items impacting comparability, while lowering capital expenditure guidance to a range of $885 to $980 million.
  

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had an excellent second quarter with adjusted operating results increasing 16% compared to the prior year. Leading the way was strong performance from our regulated businesses, which collectively delivered earnings growth of 36%, primarily driven by the completion of rate proceedings in our FERC-regulated Supply Corporation and the Pennsylvania jurisdiction of our Utility business.

“Operationally, we continue to execute on strategic objectives across our asset base. Of note, the ongoing transition to the EDA is exceeding expectations and was the main driver behind the double-digit growth in Seneca’s production and Gathering business throughput. While lower natural gas prices were a headwind compared to last year’s second quarter, our disciplined hedging program mitigated a majority of the commodity price impacts.

“Looking ahead, the underlying strength of each of our businesses, and our commitment to hedging through the cycles, provide confidence in our long-term outlook for the Company. This outlook supports our long-standing commitment to shareholder returns, which was further enhanced in the second quarter with the commencement of a new $200 million share buyback program. Together, our outlook for growth and commitment to returning capital to shareholders position the Company to create value in the coming years.”

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

	Three Months Ended								Six Months Ended
	March 31,								March 31,
(in thousands except per share amounts)		2024				2023				2024				2023
Reported GAAP Earnings	$	166,272			$	140,880			$	299,292			$	310,570
Items impacting comparability:
Unrealized (gain) loss on derivative asset (E&P)		(536	)			2,471				3,662				2,273
Tax impact of unrealized (gain) loss on derivative asset		147				(677	)			(1,004	)			(623	)
Unrealized (gain) loss on other investments (Corporate / All Other)		(769	)			(1,068	)			(1,818	)			(1,278	)
Tax impact of unrealized (gain) loss on other investments		162				224				382				268
Adjusted Operating Results	$	165,276			$	141,830			$	300,514			$	311,210
Reported GAAP Earnings Per Share	$	1.80			$	1.53			$	3.24			$	3.37
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax (E&P)		—				0.02				0.03				0.02
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		(0.01	)			(0.01	)			(0.02	)			(0.01	)
Rounding		—				—				—				(0.01	)
Adjusted Operating Results Per Share	$	1.79			$	1.54			$	3.25			$	3.37

FISCAL 2024 GUIDANCE UPDATE

National Fuel is revising its fiscal 2024 earnings guidance to reflect the results of the second quarter along with updated forecast assumptions and projections. The Company is now projecting that earnings, excluding anticipated non-cash ceiling test impairment charges and other items impacting comparability, will be within the range of $4.75 to $5.05 per share, a decrease of $0.15 per share from the midpoint of the Company’s prior guidance range. The decrease from the Company’s prior earnings guidance primarily reflects the full year impact of lower natural gas prices and price-related production curtailments at Seneca during the second quarter, partially offset by an increase in revenue in the Pipeline and Storage segment.

The Company is now assuming that NYMEX natural gas prices will average $2.00 per MMBtu for the remainder of fiscal 2024, a decrease of $0.40 per MMBtu. For guidance purposes, the Company’s updated natural gas price projections approximate the current NYMEX forward curve and consider the impact of local sales point differentials and new physical firm sales, transportation, and financial hedge contracts. Given the Company's price projections, we expect to experience a ceiling test impairment in each of the two remaining quarters of fiscal 2024.

The Exploration and Production segment’s fiscal 2024 net production is now expected to be in the range of 390 to 405 Bcf, which reflects the impacts of approximately 5 Bcf of price-related curtailments due to low in-basin pricing during the second quarter. This guidance range does not incorporate any additional price-related curtailments over the remainder of the fiscal year. Seneca currently has firm sales contracts in place for approximately 95% of its projected remaining fiscal 2024 natural gas production, significantly limiting its exposure to in-basin markets. Approximately 74% of expected remaining production is either matched by a financial hedge or was entered into at a fixed price.

The Pipeline and Storage segment’s revenues are now expected to be in the range of $400 to $420 million, a $10 million increase at the midpoint. The increase is attributable to several factors, including the settlement of the Supply Corporation rate case.

The Company’s consolidated capital expenditures are now expected to be in the range of $885 to $980 million, a $10 million decrease at the midpoint. During the first half of the fiscal year, the Company operated a two-rig program with a dedicated completion crew, while also periodically utilizing a top-hole rig. As previously planned, the Company dropped a rig at the end of the second quarter and expects to maintain a reduced activity level for the balance of the fiscal year.

The Company’s other guidance assumptions are outlined in the table on page 7.

DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended March 31, 2024 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2024 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

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

Upstream Business

Exploration and Production Segment

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

	Three Months Ended
	March 31,
(in thousands)		2024				2023		Variance
GAAP Earnings	$	62,065			$	60,982		$	1,083
Unrealized (gain) loss on derivative asset, net of tax		(389	)			1,794			(2,183	)
Adjusted Operating Results	$	61,676			$	62,776		$	(1,100	)
Adjusted EBITDA	$	172,068			$	154,574		$	17,494

Seneca’s second quarter GAAP earnings increased $1.1 million versus the prior year. Higher natural gas production, lower per unit lease operating and transportation expense (“LOE”), and lower other taxes were partially offset by lower realized natural gas prices, and increases in per unit depreciation, depletion and amortization (“DD&A”) and interest expenses.

The GAAP earnings increase also includes an unrealized gain of $0.5 million ($0.4 million after-tax) recognized during the current-year second quarter related to an increase in the fair value of contingent consideration Seneca received in connection with the June 2022 divestiture of its California assets. In the prior year's second quarter, Seneca recorded an unrealized loss of $2.5 million ($1.8 million after-tax) on that contingent consideration. Excluding these unrealized gains and losses, Seneca's adjusted operating results decreased $1.1 million.

During the second quarter, Seneca produced 102.9 Bcf of natural gas, an increase of 9.6 Bcf, or 10%, from the prior year, despite the impact of approximately 5 Bcf of price-related curtailments due to low in-basin pricing. The increase in production was largely due to production from new Marcellus and Utica wells in Seneca's EDA.

Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.56 per Mcf, a decrease of $0.02 per Mcf from the prior year. Pre-hedging realized natural gas prices decreased 29% from the prior year; however, Seneca’s hedging portfolio, which experienced a gain of $0.58 per Mcf during the quarter, mitigated a significant portion of this impact.

On a per unit basis, LOE was $0.68 per Mcf, a decrease of $0.03 per Mcf from the prior year. On an absolute basis, LOE increased $3.9 million primarily due to higher transportation and gathering costs as a result of increased production, partially offset by a decrease in water management costs. LOE included $58.1 million for gathering and compression services from the Company's Gathering segment to connect Seneca’s production to sales points along interstate pipelines.

DD&A expense was $0.71 per Mcf, an increase of $0.08 per Mcf from the prior year. Absolute DD&A expense increased $14.8 million due to higher natural gas production and a higher per unit DD&A rate. The higher per unit rate was driven by an increase in Seneca's full cost pool due to a combination of higher capitalized costs and an increase in estimated future development costs related to proved undeveloped wells.

Other taxes decreased $1.6 million largely as a result of lower Impact Fees in Pennsylvania due to the decline in NYMEX natural gas prices.

Interest expense increased $2.9 million primarily due to a higher average amount of net borrowings combined with higher average interest rates.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment’s operations are carried out by 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)		2024			2023		Variance
GAAP Earnings	$	30,737		$	23,858		$	6,879
Adjusted EBITDA	$	70,033		$	58,926		$	11,107

The Pipeline and Storage segment’s second quarter GAAP earnings increased $6.9 million versus the prior year primarily due to higher operating revenues, partly offset by higher operation and maintenance (“O&M”) and DD&A expenses.

The increase in operating revenues of $12.9 million was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with the approved interim rates in connection with its rate case settlement, which is pending final Federal Energy Regulatory Commission approval. In addition, Supply Corporation recorded a final true-up adjustment to a surcharge for pipeline safety and greenhouse gas costs that concluded with the effective date of its rate increase, reflective of investments made in those areas.

O&M expense increased $1.8 million primarily due to an increase in personnel costs and compressor maintenance costs. The increase in DD&A expense of $1.8 million was attributable to higher average depreciable plant in service compared to the prior year.

Gathering Segment

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

	Three Months Ended
	March 31,
(in thousands)		2024			2023		Variance
GAAP Earnings	$	28,706		$	24,334		$	4,372
Adjusted EBITDA	$	53,103		$	46,263		$	6,840

The Gathering segment’s second quarter GAAP earnings increased $4.4 million versus the prior year primarily due to higher operating revenues, partly offset by higher DD&A expense. Operating revenues increased $7.0 million, or 12%, which was the result of a $4.8 million increase in revenue from Seneca and a $2.2 million increase in revenue from non-affiliated parties. DD&A expense increased $0.7 million primarily due to higher average depreciable plant in service compared to the prior year.

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)		2024			2023		Variance
GAAP Earnings	$	44,739		$	31,720		$	13,019
Adjusted EBITDA	$	78,326		$	65,820		$	12,506

The Utility segment’s second quarter GAAP earnings increased $13.0 million versus the prior year due to higher customer margins (operating revenues less purchased gas sold), lower interest expense and a lower effective income tax rate, partially offset by an increase in O&M expense.

The $14.4 million increase in customer margin for the quarter was primarily due to the impact of the base rate increase in Distribution's Pennsylvania jurisdiction. Last year, the Company received approval for a $23 million annual rate increase that went into effect in August 2023 and the ability to implement a weather normalization adjustment (“WNA”), which serves to help mitigate the impact of temperature fluctuations on usage and margin revenues (subject to a 3% deadband). Despite lower usage due to warmer weather, the Company recovered approximately $4.6 million from the Pennsylvania WNA mechanism in the current quarter. Distribution continues to benefit from a WNA mechanism in its New York jurisdiction, which helped to mitigate the impact of warmer weather on margins in the current and prior year quarters. Higher revenues from the Company’s system modernization tracking mechanisms in its New York service territory also contributed to the increase.

O&M expense increased by $2.9 million, primarily driven by higher personnel costs. These increases were partially offset by a decline in the accrual for uncollectible accounts due to a decrease in the natural gas commodity component of customer bills.

Interest expense declined $1.2 million primarily due to lower average amount of net borrowings, partially offset by higher average interest rates.

The reduction in the Utility segment's effective income tax rate was primarily driven by an increase in tax deductions related to certain repairs and maintenance expenditures as a result of updated IRS guidance published in 2023.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated combined earnings of less than $0.1 million in the current-year second quarter, which was essentially flat compared to a combined net loss of less than $0.1 million in the prior-year second quarter.

EARNINGS TELECONFERENCE

The Company will host a conference call on Thursday, May 2, 2024, at 10 a.m. Eastern Time to discuss this announcement. To pre-register for the call (recommended), please visit https://www.netroadshow.com/events/login?show=08edd3c2&confId=6385 .... After registering, you will receive your access details via email. To join by telephone on the day of the call, dial U.S. toll free 1-833–470–1428 and provide Participant Access Code 450696. The teleconference will also be simultaneously webcast online and can be accessed on the NFG Investor Relations website at investor.nationalfuelgas.com. A telephone replay of the teleconference call will be available through the end of the day on Thursday, May 9, 2024. To access the replay, dial U.S. toll free 1-866-813-9403 and provide Replay Access Code 407920.

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

Analyst Contact:	Natalie M. Fischer	716-857-7315
Media Contact:	Karen L. Merkel	716-857-7654

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

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2024. 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, 2024, including: (1) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.03 per share; and (2) after-tax unrealized gains on other investments, which increased earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the six months ending September 30, 2024, the amounts of these and other potential adjustments and charges, including ceiling test impairments, are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	Previous FY 2024 Guidance		Updated FY 2024 Guidance
Adjusted Consolidated Earnings per Share, excluding items impacting comparability	$4.90 to $5.20		$4.75 to $5.05
Consolidated Effective Tax Rate	~ 25 - 25.5%		~ 25%
Capital Expenditures (Millions)
Exploration and Production	$525 - $575		$525 - $555
Pipeline and Storage	$120 - $140		$120 - $140
Gathering	$90 - $110		$90 - $110
Utility	$150 - $175		$150 - $175
Consolidated Capital Expenditures	$885 - $1,000		$885 - $980
Exploration and Production Segment Guidance*
Commodity Price Assumptions
NYMEX natural gas price	$2.40 /MMBtu		$2.00 /MMBtu
Appalachian basin spot price	$1.70 /MMBtu		$1.60 /MMBtu
Production (Bcf)	395 to 410		390 to 405
E&P Operating Costs ($/Mcf)
LOE	$0.69 - $0.70		$0.69 - $0.70
G&A	$0.17 - $0.19		$0.17 - $0.19
DD&A	$0.69 - $0.74		$0.69 - $0.74
Other Business Segment Guidance (Millions)
Gathering Segment Revenues	$245 - $260		$240 - $255
Pipeline and Storage Segment Revenues	$380 - $420		$400 - $420

* 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, 2024
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Second quarter 2023 GAAP earnings	$	60,982			$	23,858			$	24,334			$	31,720			$	(14	)		$	140,880
Items impacting comparability:
Unrealized (gain) loss on derivative asset		2,471																				2,471
Tax impact of unrealized (gain) loss on derivative asset		(677	)																			(677	)
Unrealized (gain) loss on other investments																		(1,068	)			(1,068	)
Tax impact of unrealized (gain) loss on other investments																		224				224
Second quarter 2023 adjusted operating results		62,776				23,858				24,334				31,720				(858	)			141,830
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		19,687																				19,687
Higher (lower) realized natural gas prices, after hedging		(2,006	)																			(2,006	)
Higher (lower) other operating revenues		(1,830	)																			(1,830	)
Midstream Revenues
Higher (lower) operating revenues						10,204				5,539												15,743
Downstream Margins***
Impact of usage and weather														4,452								4,452
Impact of new rates in Pennsylvania														8,530								8,530
System modernization and improvement tracker revenues														1,764								1,764
Regulatory revenue adjustments														(1,554	)							(1,554	)
Higher (lower) other operating revenues														(987	)							(987	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(3,064	)																			(3,064	)
Lower (higher) operating expenses						(1,412	)							(2,320	)			(676	)			(4,408	)
Lower (higher) property, franchise and other taxes		1,261																				1,261
Lower (higher) depreciation / depletion		(11,726	)			(1,392	)			(547	)											(13,665	)
Other Income (Expense)
Higher (lower) other income						941																941
(Higher) lower interest expense		(2,308	)			(981	)							730				900				(1,659	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(521	)			(463	)			(498	)			2,429				178				1,125
All other / rounding		(593	)			(18	)			(122	)			(25	)			(126	)			(884	)
Second quarter 2024 adjusted operating results		61,676				30,737				28,706				44,739				(582	)			165,276
Items impacting comparability:
Unrealized gain (loss) on derivative asset		536																				536
Tax impact of unrealized gain (loss) on derivative asset		(147	)																			(147	)
Unrealized gain (loss) on other investments																		769				769
Tax impact of unrealized gain (loss) on other investments																		(162	)			(162	)
Second quarter 2024 GAAP earnings	$	62,065			$	30,737			$	28,706			$	44,739			$	25			$	166,272
* 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, 2024
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Second quarter 2023 GAAP earnings per share	$	0.66			$	0.26			$	0.26			$	0.35			$	—			$	1.53
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax		0.02																				0.02
Unrealized (gain) loss on other investments, net of tax																		(0.01	)			(0.01	)
Second quarter 2023 adjusted operating results per share		0.68				0.26				0.26				0.35				(0.01	)			1.54
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.21																				0.21
Higher (lower) realized natural gas prices, after hedging		(0.02	)																			(0.02	)
Higher (lower) other operating revenues		(0.02	)																			(0.02	)
Midstream Revenues
Higher (lower) operating revenues						0.11				0.06												0.17
Downstream Margins***
Impact of usage and weather														0.05								0.05
Impact of new rates in Pennsylvania														0.09								0.09
System modernization and improvement tracker revenues														0.02								0.02
Regulatory revenue adjustments														(0.02	)							(0.02	)
Higher (lower) other operating revenues														(0.01	)							(0.01	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.03	)																			(0.03	)
Lower (higher) operating expenses						(0.02	)							(0.03	)			(0.01	)			(0.06	)
Lower (higher) property, franchise and other taxes		0.01																				0.01
Lower (higher) depreciation / depletion		(0.13	)			(0.02	)			(0.01	)											(0.16	)
Other Income (Expense)
Higher (lower) other income						0.01																0.01
(Higher) lower interest expense		(0.02	)			(0.01	)							0.01				0.01				(0.01	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(0.01	)			(0.01	)			(0.01	)			0.03				—				—
All other / rounding		—				0.01				0.01				(0.01	)			0.01				0.02
Second quarter 2024 adjusted operating results per share		0.67				0.33				0.31				0.48				—				1.79
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax		—																				—
Unrealized gain (loss) on other investments, net of tax																		0.01				0.01
Second quarter 2024 GAAP earnings per share	$	0.67			$	0.33			$	0.31			$	0.48			$	0.01			$	1.80
* 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, 2024
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
(Thousands of Dollars)	Production				Storage				Gathering				Utility				All Other				Consolidated*
Six months ended March 31, 2023 GAAP earnings	$	152,174			$	53,335			$	49,072			$	55,537			$	452			$	310,570
Items impacting comparability:
Unrealized (gain) loss on derivative asset		2,273																				2,273
Tax impact of unrealized (gain) loss on derivative asset		(623	)																			(623	)
Unrealized (gain) loss on other investments																		(1,278	)			(1,278	)
Tax impact of unrealized (gain) loss on other investments																		268				268
Six months ended March 31, 2023 adjusted operating results		153,824				53,335				49,072				55,537				(558	)			311,210
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		43,811																				43,811
Higher (lower) realized natural gas prices, after hedging		(42,547	)																			(42,547	)
Higher (lower) other operating revenues		(3,593	)																			(3,593	)
Midstream Revenues
Higher (lower) operating revenues						7,642				10,418												18,060
Downstream Margins***
Impact of usage and weather														1,694								1,694
Impact of new rates in Pennsylvania														15,378								15,378
System modernization and improvement tracker revenues														2,682								2,682
Regulatory revenue adjustments														(1,950	)							(1,950	)
Higher (lower) other operating revenues														(1,488	)							(1,488	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(7,432	)																			(7,432	)
Lower (higher) operating expenses		(4,346	)			(2,938	)							(5,014	)			(1,144	)			(13,442	)
Lower (higher) property, franchise and other taxes		3,898																				3,898
Lower (higher) depreciation / depletion		(24,687	)			(2,024	)			(1,139	)			(1,483	)							(29,333	)
Other Income (Expense)
Higher (lower) other income						890								1,089				(1,170	)			809
(Higher) lower interest expense		(3,916	)			(1,591	)			404								2,180				(2,923	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		1,482				(336	)			(981	)			4,245				207				4,617
All other / rounding		712				(186	)			(243	)			599				181				1,063
Six months ended March 31, 2024 adjusted operating results		117,206				54,792				57,531				71,289				(304	)			300,514
Items impacting comparability:
Unrealized gain (loss) on derivative asset		(3,662	)																			(3,662	)
Tax impact of unrealized gain (loss) on derivative asset		1,004																				1,004
Unrealized gain (loss) on other investments																		1,818				1,818
Tax impact of unrealized gain (loss) on other investments																		(382	)			(382	)
Six months ended March 31, 2024 GAAP earnings	$	114,548			$	54,792			$	57,531			$	71,289			$	1,132			$	299,292
* 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, 2024
(Unaudited)
	Upstream				Midstream								Downstream
	Exploration &				Pipeline &												Corporate /
	Production				Storage				Gathering				Utility				All Other				Consolidated*
Six months ended March 31, 2023 GAAP earnings per share	$	1.65			$	0.58			$	0.53			$	0.60			$	0.01			$	3.37
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax		0.02																				0.02
Unrealized (gain) loss on other investments, net of tax																		(0.01	)			(0.01	)
Rounding																		(0.01	)			(0.01	)
Six months ended March 31, 2023 adjusted operating results per share		1.67				0.58				0.53				0.60				(0.01	)			3.37
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.47																				0.47
Higher (lower) realized natural gas prices, after hedging		(0.46	)																			(0.46	)
Higher (lower) other operating revenues		(0.04	)																			(0.04	)
Midstream Revenues
Higher (lower) operating revenues						0.08				0.11												0.19
Downstream Margins***
Impact of usage and weather														0.02								0.02
Impact of new rates in Pennsylvania														0.17								0.17
System modernization and improvement tracker revenues														0.03								0.03
Regulatory revenue adjustments														(0.02	)							(0.02	)
Higher (lower) other operating revenues														(0.02	)							(0.02	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.08	)																			(0.08	)
Lower (higher) operating expenses		(0.05	)			(0.03	)							(0.05	)			(0.01	)			(0.14	)
Lower (higher) property, franchise and other taxes		0.04																				0.04
Lower (higher) depreciation / depletion		(0.27	)			(0.02	)			(0.01	)			(0.02	)							(0.32	)
Other Income (Expense)
Higher (lower) other income						0.01								0.01				(0.01	)			0.01
(Higher) lower interest expense		(0.04	)			(0.02	)			—								0.02				(0.04	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		0.02				—				(0.01	)			0.05				—				0.06
All other / rounding		0.01				(0.01	)			—				—				0.01				0.01
Six months ended March 31, 2024 adjusted operating results per share		1.27				0.59				0.62				0.77				—				3.25
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax		(0.03	)																			(0.03	)
Unrealized gain (loss) on other investments, net of tax																		0.02				0.02
Six months ended March 31, 2024 GAAP earnings per share	$	1.24			$	0.59			$	0.62			$	0.77			$	0.02			$	3.24
* 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		2024				2023				2024				2023
Operating Revenues:
Utility Revenues	$	290,198			$	406,758			$	492,119			$	718,376
Exploration and Production and Other Revenues		264,614				244,552				518,633				521,525
Pipeline and Storage and Gathering Revenues		75,127				65,951				144,549				136,218
		629,939				717,261				1,155,301				1,376,119
Operating Expenses:
Purchased Gas		105,940				243,839				162,491				415,035
Operation and Maintenance:
Utility		59,288				56,453				112,993				106,805
Exploration and Production and Other		32,794				31,782				67,620				58,655
Pipeline and Storage and Gathering		39,340				37,479				74,303				70,740
Property, Franchise and Other Taxes		23,019				25,367				45,434				51,572
Depreciation, Depletion and Amortization		118,935				100,964				234,725				197,564
		379,316				495,884				697,566				900,371
Operating Income		250,623				221,377				457,735				475,748
Other Income (Expense):
Other Income (Deductions)		6,070				2,884				9,801				9,203
Interest Expense on Long-Term Debt		(28,453	)			(27,583	)			(56,915	)			(57,188	)
Other Interest Expense		(6,636	)			(5,861	)			(12,910	)			(9,704	)
Income Before Income Taxes		221,604				190,817				397,711				418,059
Income Tax Expense		55,332				49,937				98,419				107,489
Net Income Available for Common Stock	$	166,272			$	140,880			$	299,292			$	310,570
Earnings Per Common Share
Basic	$	1.81			$	1.53			$	3.25			$	3.39
Diluted	$	1.80			$	1.53			$	3.24			$	3.37
Weighted Average Common Shares:
Used in Basic Calculation		92,114,415				91,794,765				92,011,772				91,686,110
Used in Diluted Calculation		92,512,447				92,256,348				92,478,604				92,264,717

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,			September 30,
(Thousands of Dollars)		2024			2023
ASSETS
Property, Plant and Equipment	$	14,056,169		$	13,635,303
Less - Accumulated Depreciation, Depletion and Amortization		6,548,662			6,335,441
Net Property, Plant and Equipment		7,507,507			7,299,862
Current Assets:
Cash and Temporary Cash Investments		50,769			55,447
Receivables - Net		180,717			160,601
Unbilled Revenue		46,571			16,622
Gas Stored Underground		8,565			32,509
Materials and Supplies - at average cost		47,258			48,989
Other Current Assets		85,123			100,260
Total Current Assets		419,003			414,428
Other Assets:
Recoverable Future Taxes		77,416			69,045
Unamortized Debt Expense		6,418			7,240
Other Regulatory Assets		69,609			72,138
Deferred Charges		89,004			82,416
Other Investments		78,744			73,976
Goodwill		5,476			5,476
Prepaid Pension and Post-Retirement Benefit Costs		222,834			200,301
Fair Value of Derivative Financial Instruments		196,291			50,487
Other		4,723			4,891
Total Other Assets		750,515			565,970
Total Assets	$	8,677,025		$	8,280,260
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 92,031,724 Shares and 91,819,405 Shares, Respectively	$	92,032		$	91,819
Paid in Capital		1,045,929			1,040,761
Earnings Reinvested in the Business		2,090,172			1,885,856
Accumulated Other Comprehensive Income (Loss)		75,340			(55,060	)
Total Comprehensive Shareholders' Equity		3,303,473			2,963,376
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,386,574			2,384,485
Total Capitalization		5,690,047			5,347,861
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		278,900			287,500
Accounts Payable		93,996			152,193
Amounts Payable to Customers		72,346			59,019
Dividends Payable		45,563			45,451
Interest Payable on Long-Term Debt		22,553			20,399
Customer Advances		—			21,003
Customer Security Deposits		30,600			28,764
Other Accruals and Current Liabilities		183,966			160,974
Fair Value of Derivative Financial Instruments		—			31,009
Total Current and Accrued Liabilities		727,924			806,312
Other Liabilities:
Deferred Income Taxes		1,199,909			1,124,170
Taxes Refundable to Customers		316,455			268,562
Cost of Removal Regulatory Liability		288,819			277,694
Other Regulatory Liabilities		165,023			165,441
Other Post-Retirement Liabilities		2,803			2,915
Asset Retirement Obligations		161,027			165,492
Other Liabilities		125,018			121,813
Total Other Liabilities		2,259,054			2,126,087
Commitments and Contingencies		—			—
Total Capitalization and Liabilities	$	8,677,025		$	8,280,260

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended
	March 31,
(Thousands of Dollars)		2024				2023
Operating Activities:
Net Income Available for Common Stock	$	299,292			$	310,570
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		234,725				197,564
Deferred Income Taxes		65,187				80,745
Stock-Based Compensation		10,477				11,286
Other		11,874				10,758
Change in:
Receivables and Unbilled Revenue		(50,123	)			71,760
Gas Stored Underground and Materials and Supplies		25,675				21,243
Unrecovered Purchased Gas Costs		—				72,491
Other Current Assets		15,201				(15,864	)
Accounts Payable		(15,641	)			(29,169	)
Amounts Payable to Customers		13,327				2,411
Customer Advances		(21,003	)			(26,108	)
Customer Security Deposits		1,836				10,099
Other Accruals and Current Liabilities		26,927				28,741
Other Assets		(22,165	)			(26,901	)
Other Liabilities		(9,328	)			(8,417	)
Net Cash Provided by Operating Activities	$	586,261			$	711,209
Investing Activities:
Capital Expenditures	$	(481,958	)		$	(496,362	)
Deposit Paid for Upstream Assets		—				(12,700	)
Sale of Fixed Income Mutual Fund Shares in Grantor Trust		—				10,000
Other		(1,189	)			14,413
Net Cash Used in Investing Activities	$	(483,147	)		$	(484,649	)
Financing Activities:
Proceeds from Issuance of Short-Term Note Payable to Bank	$	—			$	250,000
Net Change in Other Short-Term Notes Payable to Banks and Commercial Paper		(8,600	)			100,000
Shares Repurchased Under Repurchase Plan		(4,230	)			—
Reduction of Long-Term Debt		—				(549,000	)
Dividends Paid on Common Stock		(91,048	)			(87,051	)
Net Repurchases of Common Stock Under Stock and Benefit Plans		(3,914	)			(6,694	)
Net Cash Used in Financing Activities	$	(107,792	)		$	(292,745	)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash		(4,678	)			(66,185	)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		55,447				137,718
Cash, Cash Equivalents, and Restricted Cash at March 31	$	50,769			$	71,533

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		2024				2023			Variance					2024			2023		Variance
Total Operating Revenues	$	264,614			$	244,552			$	20,062			$	518,633		$	521,525		$	(2,892	)
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		17,165				17,435				(270	)			34,958			33,033			1,925
Lease Operating and Transportation Expense		69,662				65,783				3,879				136,736			127,328			9,408
All Other Operation and Maintenance Expense		2,644				2,089				555				8,188			4,612			3,576
Property, Franchise and Other Taxes		3,075				4,671				(1,596	)			6,713			11,647			(4,934	)
Depreciation, Depletion and Amortization		73,448				58,605				14,843				145,413			114,164			31,249
		165,994				148,583				17,411				332,008			290,784			41,224
Operating Income		98,620				95,969				2,651				186,625			230,741			(44,116	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		100				347				(247	)			201			694			(493	)
Interest and Other Income (Deductions)		1,170				(1,623	)			2,793				(342	)		(292	)		(50	)
Interest Expense		(15,108	)			(12,186	)			(2,922	)			(30,377	)		(25,420	)		(4,957	)
Income Before Income Taxes		84,782				82,507				2,275				156,107			205,723			(49,616	)
Income Tax Expense		22,717				21,525				1,192				41,559			53,549			(11,990	)
Net Income	$	62,065			$	60,982			$	1,083			$	114,548		$	152,174		$	(37,626	)
Net Income Per Share (Diluted)	$	0.67			$	0.66			$	0.01			$	1.24		$	1.65		$	(0.41	)

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		2024				2023			Variance					2024			2023		Variance
Revenues from External Customers	$	71,210			$	64,223			$	6,987			$	136,036		$	131,844		$	4,192
Intersegment Revenues		36,810				30,880				5,930				66,397			60,915			5,482
Total Operating Revenues		108,020				95,103				12,917				202,433			192,759			9,674
Operating Expenses:
Purchased Gas		325				462				(137	)			926			887			39
Operation and Maintenance		29,062				27,275				1,787				55,013			51,294			3,719
Property, Franchise and Other Taxes		8,600				8,440				160				17,320			17,123			197
Depreciation, Depletion and Amortization		19,490				17,728				1,762				37,704			35,142			2,562
		57,477				53,905				3,572				110,963			104,446			6,517
Operating Income		50,543				41,198				9,345				91,470			88,313			3,157
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		1,257				1,330				(73	)			2,515			2,660			(145	)
Interest and Other Income		2,046				958				1,088				3,978			2,822			1,156
Interest Expense		(12,119	)			(10,877	)			(1,242	)			(23,843	)		(21,829	)		(2,014	)
Income Before Income Taxes		41,727				32,609				9,118				74,120			71,966			2,154
Income Tax Expense		10,990				8,751				2,239				19,328			18,631			697
Net Income	$	30,737			$	23,858			$	6,879			$	54,792		$	53,335		$	1,457
Net Income Per Share (Diluted)	$	0.33			$	0.26			$	0.07			$	0.59		$	0.58		$	0.01
	Three Months Ended												Six Months Ended
	March 31,												March 31,
GATHERING SEGMENT		2024				2023			Variance					2024			2023		Variance
Revenues from External Customers	$	3,917			$	1,728			$	2,189			$	8,513		$	4,374		$	4,139
Intersegment Revenues		60,076				55,253				4,823				118,068			109,020			9,048
Total Operating Revenues		63,993				56,981				7,012				126,581			113,394			13,187
Operating Expenses:
Operation and Maintenance		10,796				10,715				81				20,300			20,403			(103	)
Property, Franchise and Other Taxes		94				3				91				117			14			103
Depreciation, Depletion and Amortization		9,611				8,918				693				19,068			17,626			1,442
		20,501				19,636				865				39,485			38,043			1,442
Operating Income		43,492				37,345				6,147				87,096			75,351			11,745
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		9				37				(28	)			19			75			(56	)
Interest and Other Income		72				225				(153	)			143			395			(252	)
Interest Expense		(3,701	)			(3,900	)			199				(7,431	)		(7,943	)		512
Income Before Income Taxes		39,872				33,707				6,165				79,827			67,878			11,949
Income Tax Expense		11,166				9,373				1,793				22,296			18,806			3,490
Net Income	$	28,706			$	24,334			$	4,372			$	57,531		$	49,072		$	8,459
Net Income Per Share (Diluted)	$	0.31			$	0.26			$	0.05			$	0.62		$	0.53		$	0.09

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		2024				2023			Variance					2024			2023		Variance
Revenues from External Customers	$	290,198			$	406,758			$	(116,560	)		$	492,119		$	718,376		$	(226,257	)
Intersegment Revenues		306				358				(52	)			393			420			(27	)
Total Operating Revenues		290,504				407,116				(116,612	)			492,512			718,796			(226,284	)
Operating Expenses:
Purchased Gas		140,836				271,881				(131,045	)			224,886			470,301			(245,415	)
Operation and Maintenance		60,229				57,292				2,937				114,913			108,568			6,345
Property, Franchise and Other Taxes		11,113				12,123				(1,010	)			21,019			22,531			(1,512	)
Depreciation, Depletion and Amortization		16,268				15,553				715				32,305			30,428			1,877
		228,446				356,849				(128,403	)			393,123			631,828			(238,705	)
Operating Income		62,058				50,267				11,791				99,389			86,968			12,421
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit (Costs)		857				(5	)			862				1,327			(13	)		1,340
Interest and Other Income		1,340				1,769				(429	)			3,250			3,211			39
Interest Expense		(8,528	)			(9,709	)			1,181				(16,986	)		(17,752	)		766
Income Before Income Taxes		55,727				42,322				13,405				86,980			72,414			14,566
Income Tax Expense		10,988				10,602				386				15,691			16,877			(1,186	)
Net Income	$	44,739			$	31,720			$	13,019			$	71,289		$	55,537		$	15,752
Net Income Per Share (Diluted)	$	0.48			$	0.35			$	0.13			$	0.77		$	0.60		$	0.17

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		2024				2023			Variance					2024			2023		Variance
Total Operating Revenues	$	—			$	—			$	—			$	—		$	—		$	—
Operating Expenses:
Operation and Maintenance		—				—				—				—			21			(21	)
		—				—				—				—			21			(21	)
Operating Loss		—				—				—				—			(21	)		21
Other Income (Expense):
Interest and Other Income (Deductions)		(41	)			(62	)			21				(119	)		(387	)		268
Interest Expense		(84	)			(28	)			(56	)			(165	)		(49	)		(116	)
Loss before Income Taxes		(125	)			(90	)			(35	)			(284	)		(457	)		173
Income Tax Benefit		(29	)			(21	)			(8	)			(67	)		(107	)		40
Net Loss	$	(96	)		$	(69	)		$	(27	)		$	(217	)	$	(350	)	$	133
Net Loss Per Share (Diluted)	$	—			$	—			$	—			$	—		$	—		$	—
	Three Months Ended												Six Months Ended
	March 31,												March 31,
CORPORATE		2024				2023			Variance					2024			2023		Variance
Revenues from External Customers	$	—			$	—			$	—			$	—		$	—		$	—
Intersegment Revenues		1,286				1,153				133				2,571			2,304			267
Total Operating Revenues		1,286				1,153				133				2,571			2,304			267
Operating Expenses:
Operation and Maintenance		5,121				4,265				856				8,916			7,447			1,469
Property, Franchise and Other Taxes		137				130				7				265			257			8
Depreciation, Depletion and Amortization		118				160				(42	)			235			204			31
		5,376				4,555				821				9,416			7,908			1,508
Operating Loss		(4,090	)			(3,402	)			(688	)			(6,845	)		(5,604	)		(1,241	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(387	)			(354	)			(33	)			(774	)		(709	)		(65	)
Interest and Other Income		40,234				37,409				2,825				81,262			75,286			5,976
Interest Expense on Long-Term Debt		(28,453	)			(27,583	)			(870	)			(56,915	)		(57,188	)		273
Other Interest Expense		(7,683	)			(6,308	)			(1,375	)			(15,767	)		(11,250	)		(4,517	)
Income (Loss) before Income Taxes		(379	)			(238	)			(141	)			961			535			426
Income Tax Benefit		(500	)			(293	)			(207	)			(388	)		(267	)		(121	)
Net Income	$	121			$	55			$	66			$	1,349		$	802		$	547
Net Income Per Share (Diluted)	$	0.01			$	—			$	0.01			$	0.02		$	0.01		$	0.01
	Three Months Ended												Six Months Ended
	March 31,												March 31,
INTERSEGMENT ELIMINATIONS		2024				2023			Variance					2024			2023		Variance
Intersegment Revenues	$	(98,478	)		$	(87,644	)		$	(10,834	)		$	(187,429	)	$	(172,659	)	$	(14,770	)
Operating Expenses:
Purchased Gas		(35,221	)			(28,504	)			(6,717	)			(63,321	)		(56,153	)		(7,168	)
Operation and Maintenance		(63,257	)			(59,140	)			(4,117	)			(124,108	)		(116,506	)		(7,602	)
		(98,478	)			(87,644	)			(10,834	)			(187,429	)		(172,659	)		(14,770	)
Operating Income		—				—				—				—			—			—
Other Income (Expense):
Interest and Other Deductions		(40,587	)			(37,147	)			(3,440	)			(81,659	)		(74,539	)		(7,120	)
Interest Expense		40,587				37,147				3,440				81,659			74,539			7,120
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
		2024			2023		(Decrease)					2024			2023		(Decrease)
Capital Expenditures:
Exploration and Production	$	124,184	(1)	$	155,112	(3)	$	(30,928	)		$	285,141	(1)(2)	$	323,617	(3)(4)	$	(38,476	)
Pipeline and Storage		18,025	(1)		16,838	(3)		1,187				42,579	(1)(2)		33,265	(3)(4)		9,314
Gathering		19,949	(1)		20,788	(3)		(839	)			39,518	(1)(2)		34,081	(3)(4)		5,437
Utility		37,741	(1)		23,942	(3)		13,799				68,251	(1)(2)		49,230	(3)(4)		19,021
Total Reportable Segments		199,899			216,680			(16,781	)			435,489			440,193			(4,704	)
All Other		—			—			—				—			—			—
Corporate		121			391			(270	)			182			403			(221	)
Total Capital Expenditures	$	200,020		$	217,071		$	(17,051	)		$	435,671		$	440,596		$	(4,925	)

(1)	Capital expenditures for the quarter and six months ended March 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $44.4 million, $5.0 million, $5.5 million, and $8.0 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, 2024, since they represent non-cash investing activities at that date.
(2)	Capital expenditures for the six months ended March 31, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 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, 2023 and paid during the six months ended March 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, 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, 2024.
(3)	Capital expenditures for the quarter and six months ended March 31, 2023, include accounts payable and accrued liabilities related to capital expenditures of $56.1 million, $2.2 million, $2.0 million, and $4.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2023, since they represented non-cash investing activities at that date.
(4)	Capital expenditures for the six months ended March 31, 2023, exclude capital expenditures of $83.0 million, $15.2 million, $10.7 million and $11.4 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, 2022 and paid during the six months ended March 31, 2023. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2022, 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, 2023.

DEGREE DAYS
							Percent Colder
							(Warmer) Than:
Three Months Ended March 31,	Normal		2024		2023		Normal (1)			Last Year (1)
Buffalo, NY	3,326		2,705		2,820		(18.7	)		(4.1	)
Erie, PA(2)	3,057		2,576		2,645		(15.7	)		(2.6	)
Six Months Ended March 31,
Buffalo, NY	5,579		4,563		4,868		(18.2	)		(6.3	)
Erie, PA(2)	4,951		4,240		4,632		(14.4	)		(8.5	)

(1)	Percents compare actual 2024 degree days to normal degree days and actual 2024 degree days to actual 2023 degree days.
(2)	Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in Pennsylvania in August 2023.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
	Three Months Ended										Six Months Ended
	March 31,										March 31,
							Increase										Increase
		2024			2023		(Decrease)					2024			2023		(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia		102,883			93,241			9,642				203,640			183,815			19,825
Average Prices (Per Mcf)
Weighted Average	$	1.98		$	2.79		$	(0.81	)			2.14			3.77			(1.63	)
Weighted Average after Hedging		2.56			2.58			(0.02	)			2.53			2.80			(0.27	)
Selected Operating Performance Statistics:
General and Administrative Expense per Mcf (1)	$	0.17		$	0.19		$	(0.02	)		$	0.17		$	0.18		$	(0.01	)
Lease Operating and Transportation Expense per Mcf (1)(2)	$	0.68		$	0.71		$	(0.03	)		$	0.67		$	0.69		$	(0.02	)
Depreciation, Depletion and Amortization per Mcf (1)	$	0.71		$	0.63		$	0.08			$	0.71		$	0.62		$	0.09

(1)	Refer to page 15 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 $0.57 and $0.58 per Mcf for the three months ended March 31, 2024 and March 31, 2023, respectively. Amounts include transportation expense of $0.57 and $0.58 per Mcf for the six months ended March 31, 2024 and March 31, 2023, respectively.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Remaining Six Months of Fiscal 2024		Volume				Average Hedge Price
Gas Swaps
NYMEX		77,340,000	MMBTU		$	3.35 / MMBTU
No Cost Collars		28,800,000	MMBTU		$	3.22 / MMBTU (Floor) / $3.79 / MMBTU (Ceiling)
Fixed Price Physical Sales		40,856,860	MMBTU		$	2.34 / MMBTU
Total		146,996,860	MMBTU
Hedging Summary for Fiscal 2025		Volume				Average Hedge Price
Gas Swaps
NYMEX		101,080,000	MMBTU		$	3.50 / MMBTU
No Cost Collars		43,960,000	MMBTU		$	3.49 / MMBTU (Floor) / $4.65 / MMBTU (Ceiling)
Fixed Price Physical Sales		76,440,261	MMBTU		$	2.47 / MMBTU
Total		221,480,261	MMBTU
Hedging Summary for Fiscal 2026		Volume				Average Hedge Price
Gas Swaps
NYMEX		40,060,000	MMBTU		$	3.96 / MMBTU
No Cost Collars		42,720,000	MMBTU		$	3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales		71,623,404	MMBTU		$	2.42 / MMBTU
Total		154,403,404	MMBTU
Hedging Summary for Fiscal 2027		Volume				Average Hedge Price
Gas Swaps
NYMEX		21,750,000	MMBTU		$	4.16 / MMBTU
No Cost Collars		3,560,000	MMBTU		$	3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales		53,921,121	MMBTU		$	2.46 / MMBTU
Total		79,231,121	MMBTU
Hedging Summary for Fiscal 2028		Volume				Average Hedge Price
Gas Swaps
NYMEX		1,750,000	MMBTU		$	4.16 / MMBTU
Fixed Price Physical Sales		17,189,881	MMBTU		$	2.61 / MMBTU
Total		18,939,881	MMBTU
Hedging Summary for Fiscal 2029		Volume				Average Hedge Price
Fixed Price Physical Sales		3,891,892	MMBTU		$	2.85 / MMBTU
Hedging Summary for Fiscal 2030		Volume				Average Hedge Price
Fixed Price Physical Sales		131,856	MMBTU		$	2.93 / MMBTU

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline and Storage Throughput - (millions of cubic feet - MMcf)
	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2024		2023		(Decrease)			2024		2023		(Decrease)
Firm Transportation - Affiliated	42,561		48,147		(5,586	)		74,056		86,616		(12,560	)
Firm Transportation - Non-Affiliated	179,697		182,934		(3,237	)		348,303		369,089		(20,786	)
Interruptible Transportation	1,271		619		652			1,389		1,927		(538	)
	223,529		231,700		(8,171	)		423,748		457,632		(33,884	)
Gathering Volume - (MMcf)
	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2024		2023		(Decrease)			2024		2023		(Decrease)
Gathered Volume	125,565		109,344		16,221			249,388		217,371		32,017
Utility Throughput - (MMcf)
	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2024		2023		(Decrease)			2024		2023		(Decrease)
Retail Sales:
Residential Sales	27,063		27,884		(821	)		45,045		48,037		(2,992	)
Commercial Sales	4,293		4,384		(91	)		7,093		7,378		(285	)
Industrial Sales	190		267		(77	)		327		418		(91	)
	31,546		32,535		(989	)		52,465		55,833		(3,368	)
Transportation	22,637		22,788		(151	)		40,166		41,098		(932	)
	54,183		55,323		(1,140	)		92,631		96,931		(4,300	)

  

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 and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results 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 three and six months ended March 31, 2024 and 2023:

	Three Months Ended								Six Months Ended
	March 31,								March 31,
(in thousands except per share amounts)		2024				2023				2024				2023
Reported GAAP Earnings	$	166,272			$	140,880			$	299,292			$	310,570
Items impacting comparability:
Unrealized (gain) loss on derivative asset (E&P)		(536	)			2,471				3,662				2,273
Tax impact of unrealized (gain) loss on derivative asset		147				(677	)			(1,004	)			(623	)
Unrealized (gain) loss on other investments (Corporate / All Other)		(769	)			(1,068	)			(1,818	)			(1,278	)
Tax impact of unrealized (gain) loss on other investments		162				224				382				268
Adjusted Operating Results	$	165,276			$	141,830			$	300,514			$	311,210
Reported GAAP Earnings Per Share	$	1.80			$	1.53			$	3.24			$	3.37
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax (E&P)		—				0.02				0.03				0.02
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		(0.01	)			(0.01	)			(0.02	)			(0.01	)
Rounding		—				—				—				(0.01	)
Adjusted Operating Results Per Share	$	1.79			$	1.54			$	3.25			$	3.37

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, 2024 and 2023:

	Three Months Ended								Six Months Ended
	March 31,								March 31,
(in thousands)		2024				2023				2024				2023
Reported GAAP Earnings	$	166,272			$	140,880			$	299,292			$	310,570
Depreciation, Depletion and Amortization		118,935				100,964				234,725				197,564
Other (Income) Deductions		(6,070	)			(2,884	)			(9,801	)			(9,203	)
Interest Expense		35,089				33,444				69,825				66,892
Income Taxes		55,332				49,937				98,419				107,489
Adjusted EBITDA	$	369,558			$	322,341			$	692,460			$	673,312
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA	$	70,033			$	58,926			$	129,174			$	123,455
Gathering Adjusted EBITDA		53,103				46,263				106,164				92,977
Total Midstream Businesses Adjusted EBITDA		123,136				105,189				235,338				216,432
Exploration and Production Adjusted EBITDA		172,068				154,574				332,038				344,905
Utility Adjusted EBITDA		78,326				65,820				131,694				117,396
Corporate and All Other Adjusted EBITDA		(3,972	)			(3,242	)			(6,610	)			(5,421	)
Total Adjusted EBITDA	$	369,558			$	322,341			$	692,460			$	673,312

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)		2024				2023				2024				2023
Exploration and Production Segment
Reported GAAP Earnings	$	62,065			$	60,982			$	114,548			$	152,174
Depreciation, Depletion and Amortization		73,448				58,605				145,413				114,164
Other (Income) Deductions		(1,270	)			1,276				141				(402	)
Interest Expense		15,108				12,186				30,377				25,420
Income Taxes		22,717				21,525				41,559				53,549
Adjusted EBITDA	$	172,068			$	154,574			$	332,038			$	344,905
Pipeline and Storage Segment
Reported GAAP Earnings	$	30,737			$	23,858			$	54,792			$	53,335
Depreciation, Depletion and Amortization		19,490				17,728				37,704				35,142
Other (Income) Deductions		(3,303	)			(2,288	)			(6,493	)			(5,482	)
Interest Expense		12,119				10,877				23,843				21,829
Income Taxes		10,990				8,751				19,328				18,631
Adjusted EBITDA	$	70,033			$	58,926			$	129,174			$	123,455
Gathering Segment
Reported GAAP Earnings	$	28,706			$	24,334			$	57,531			$	49,072
Depreciation, Depletion and Amortization		9,611				8,918				19,068				17,626
Other (Income) Deductions		(81	)			(262	)			(162	)			(470	)
Interest Expense		3,701				3,900				7,431				7,943
Income Taxes		11,166				9,373				22,296				18,806
Adjusted EBITDA	$	53,103			$	46,263			$	106,164			$	92,977
Utility Segment
Reported GAAP Earnings	$	44,739			$	31,720			$	71,289			$	55,537
Depreciation, Depletion and Amortization		16,268				15,553				32,305				30,428
Other (Income) Deductions		(2,197	)			(1,764	)			(4,577	)			(3,198	)
Interest Expense		8,528				9,709				16,986				17,752
Income Taxes		10,988				10,602				15,691				16,877
Adjusted EBITDA	$	78,326			$	65,820			$	131,694			$	117,396
Corporate and All Other
Reported GAAP Earnings	$	25			$	(14	)		$	1,132			$	452
Depreciation, Depletion and Amortization		118				160				235				204
Other (Income) Deductions		781				154				1,290				349
Interest Expense		(4,367	)			(3,228	)			(8,812	)			(6,052	)
Income Taxes		(529	)			(314	)			(455	)			(374	)
Adjusted EBITDA	$	(3,972	)		$	(3,242	)		$	(6,610	)		$	(5,421	)

CONTACT: Natalie M. Fischer
Investor Relations 
716-857-7315

Timothy J. Silverstein
Treasurer
716-857-6987