National Fuel Reports Fourth Quarter and Full Year Fiscal 2022 Earnings

Source: Nasdaq GlobeNewswire / 03 Nov 2022 16:45:51 America/New_York

WILLIAMSVILLE, N.Y., Nov. 03, 2022 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2022.

FISCAL 2022 FOURTH QUARTER SUMMARY

GAAP net income of $158.1 million, or $1.71 per share, compared to GAAP net income of $87.0 million, or $0.95 per share, in the prior year, an increase of 80% per share.
Adjusted operating results of $109.3 million, or $1.19 per share, an increase of 25%, compared to $0.95 per share, in the prior year (see non-GAAP reconciliation on page 2).
Adjusted EBITDA of $271.9 million, an increase of 26%, compared to $215.9 million in the prior year (see non-GAAP reconciliation on page 26).

FISCAL 2022 HIGHLIGHTS

GAAP net income of $566.0 million, or $6.15 per share, an increase of 55% per share from the prior year.
Adjusted operating results of $541.6 million, or $5.88 per share, an increase of 37% per share from the prior year (see non-GAAP reconciliation on page 2).
Adjusted EBITDA of $1.2 billion, an increase of 23% from the prior year (see non-GAAP reconciliation on page 26).
E&P segment net production increased by 8% from the prior year, which includes the impact of the divestiture of our California operations.
Gathering segment revenues increased by 11% from the prior year.
Pipeline & Storage segment revenues increased by 10% from the prior year, primarily driven by the completion of the Company's FM100 project.
Utility segment invested $82.6 million in system modernization and reliability, replacing over 150 miles of older vintage mains and services, and bringing 5-year total to over $377 million.
Increased shareholder dividend for the 52^nd consecutive year to an annual rate of $1.90 per share, an increase of 4.4%, continuing our long history of consecutive dividend increases and our 120^th year of uninterrupted dividend payments.
Achieved an "A" certification grade under the MiQ Standard for Methane Emissions Performance, the highest available certification level, for 100% of the Company's natural gas production.
Continued to enhance sustainability disclosures with the publication of the inaugural Climate Report and the third annual Corporate Responsibility Report.

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “The fourth quarter was a terrific ending to a very strong fiscal year for National Fuel. Adjusted operating results for the quarter were up more than 25% compared to last year as a result of higher production at Seneca and the tailwind of improved natural gas prices.

“As we enter fiscal 2023, the outlook for National Fuel is excellent. Continued production growth at Seneca, combined with a strong outlook for natural gas prices, should translate to significant free cash flow, which will be used to deleverage the balance sheet, pursue future growth opportunities, and return capital to shareholders.”

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS


	Three Months Ended						Fiscal Year Ended
	September 30,						September 30,
(in thousands except per share amounts)	2022			2021			2022			2021
Reported GAAP Earnings	$	158,143		$	86,962		$	566,021		$	363,647
Items impacting comparability:
Items impacting comparability from West Coast asset sale (E&P)⁽¹⁾		—			—			41,589			—
Tax impact of items impacting comparability from West Coast asset sale ⁽¹⁾		—			—			(10,533	)		—
Unrealized (gain) loss on derivative asset (E&P)		4,395			—			4,395			—
Tax impact of unrealized (gain) loss on derivative asset		(1,203	)		—			(1,203	)		—
Reversal of deferred tax valuation allowance		(24,850	)		—			(24,850	)		—
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		(28,406	)		—			(28,406	)		—
Reduction of other post-retirement regulatory liability (Utility)		—			—			(18,533	)		—
Tax impact of reduction of other post-retirement regulatory liability		—			—			3,892			—
Unrealized (gain) loss on other investments (Corporate / All Other)		1,532			395			11,625			(181	)
Tax impact of unrealized (gain) loss on other investments		(322	)		(83	)		(2,441	)		38
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
Tax impact of premium paid on early redemption of debt		—			—			—			(4,321	)
Adjusted Operating Results	$	109,289		$	87,274		$	541,556		$	393,073

Reported GAAP Earnings Per Share	$	1.71		$	0.95		$	6.15		$	3.97
Items impacting comparability:
Items impacting comparability from West Coast asset sale, net of tax (E&P)⁽¹⁾		—			—			0.34			—
Unrealized (gain) loss on derivative asset, net of tax (E&P)		0.03			—			0.03			—
Reversal of deferred tax valuation allowance		(0.27	)		—			(0.27	)		—
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		(0.31	)		—			(0.31	)		—
Reduction of other post-retirement regulatory liability, net of tax (Utility)		—			—			(0.16	)		—
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		0.01			—			0.10			—
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
Rounding		0.02			—			—			—
Adjusted Operating Results Per Share	$	1.19		$	0.95		$	5.88		$	4.29

⁽¹⁾

^{Refer to non-GAAP reconciliation on page 25 for a separate breakout of items impacting comparability from the West Coast asset sale.}

FISCAL 2023 GUIDANCE UPDATE

National Fuel is revising its fiscal 2023 earnings guidance to reflect updated forecast assumptions and projections, including the impact of revised natural gas price expectations since the Company’s preliminary guidance was announced in August 2022. The Company is now projecting that earnings will be within the range of $6.40 to $6.90 per share, an increase of 13% from the Company’s 2022 adjusted operating results at the midpoint of the updated guidance range.

The Company is now assuming that NYMEX natural gas prices will average $6.00 per MMBtu for the first six months of fiscal 2023 (October-March) and $4.75 per MMBtu for the second half of fiscal 2023 (April-September). 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.

Consistent with preliminary guidance, the Exploration and Production segment’s fiscal 2023 net production guidance range of 370 to 390 Bcfe remains unchanged. Seneca currently has firm sales contracts in place for approximately 88% of its projected fiscal 2023 Appalachian production, limiting its exposure to in-basin markets. Approximately 67% of Seneca’s expected Appalachian production is either matched by a financial hedge, including a combination of swaps and no-cost collars, or were entered into at a fixed price.

The Company’s consolidated and individual segment capital expenditures guidance also remain unchanged from the preliminary guidance. Other guidance assumptions remain largely unchanged from the previous guidance. The details are outlined in the table on page 8.

DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended September 30, 2022 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the fiscal year ended September 30, 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 primarily natural gas reserves in Pennsylvania.

	Three Months Ended
	September 30,
(in thousands)	2022			2021		Variance
GAAP Earnings	$	116,077		$	55,703	$	60,374
Unrealized (gain) loss on derivative asset, net of tax		3,192			—		3,192
Reversal of deferred tax valuation allowance		(28,589	)		—		(28,589	)
Remeasurement of deferred income tax from Pennsylvania state income tax rate reduction		(16,152	)		—		(16,152	)
Adjusted Operating Results	$	74,528		$	55,703	$	18,825

Adjusted EBITDA	$	166,238		$	120,588	$	45,650

Seneca’s fourth quarter GAAP earnings, which increased $60.4 million versus the prior year, include the impact of several items noted in the table above. In particular, Seneca reversed a valuation allowance of $28.6 million on deferred tax assets related to certain state net operating loss and credit carryforwards as these deferred tax assets are now expected to be realized in the future. Seneca also recorded an income tax benefit of $16.2 million from the remeasurement of deferred state income taxes related to a prospective series of reductions in the Pennsylvania state corporate income tax rate that was signed into law in July 2022. In addition, during the fourth quarter, Seneca recognized an unrealized loss of $4.4 million ($3.2 million after-tax) due to a reduction in the implied fair value of an asset related to contingent consideration in connection with the June 2022 sale of Seneca's California assets.

Excluding these items noted above, Seneca’s earnings increased $18.8 million primarily due to higher realized natural gas prices and higher natural gas production, which were partially offset by the loss of earnings from Seneca's California assets that were sold in June, as well as higher Appalachian operating expenses, higher interest expense and a higher effective income tax rate.

Seneca produced 87.9 Bcfe during the fourth quarter, an increase of 8.3 Bcfe, or 10%, from the prior year. This is a result of an 11.6 Bcf increase in natural gas production primarily due to growth from Seneca's development program in Appalachia. Seneca's crude oil production decreased 545 MBbls versus the prior year due to Seneca's aforementioned sale of its California assets in June 2022.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.84 per Mcf, an increase of $0.47 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.

Lease operating and transportation ("LOE") expense was $0.71 per Mcfe, a decrease of $0.14 per Mcfe from the prior year. General and administrative expense was $0.18 per Mcfe, a decrease of $0.03 per Mcfe from the prior year. Depreciation, depletion and amortization ("DD&A") expense was $0.60 per Mcfe, an increase of $0.03 per Mcfe from the prior year.

On an absolute basis, LOE expense decreased $5.3 million primarily due to the impact of the third quarter sale of Seneca's California assets, partly offset by increases in LOE expense from higher transportation and gathering costs in Appalachia as a result of increased production, as well as higher workover and rental expenses in Appalachia. LOE expense includes $52.1 million in intercompany expense for gathering and compression services used to connect Seneca's Appalachian production to sales points along interstate pipelines. The decrease in Seneca's other operating expenses of $3.1 million was also primarily due to the impact of the third quarter sale of Seneca's California assets. DD&A expense increased $7.8 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.

Interest expense increased $2.5 million due primarily to a higher weighted average interest rate on intercompany short-term borrowings. Excluding the impact of the elimination of the valuation allowance and remeasurement of deferred income taxes from the reduction in the state income tax rate in Pennsylvania, both of which are discussed above, Seneca's effective income tax rate increased. This increase was primarily driven by a reduction to the valuation allowance recorded in the fiscal 2021 fourth quarter.

Proved Reserves Year-End Update

Seneca’s total proved reserves at September 30, 2022 were 4,172 Bcfe, an increase of 319 Bcfe, or 8%, from September 30, 2021. Seneca sold 154 Bcfe of proved reserves (81% of which were oil reserves) with the sale of its California assets, which represented substantially all of Seneca's oil reserves. As a result of the sale, the proved reserves base is now comprised of approximately 100% natural gas. Seneca also sold another 21 Bcfe of proved reserves during fiscal 2022 related to the sale of certain gas assets in Tioga County, Pennsylvania. Seneca’s proved developed reserves at the end of fiscal 2022 were 3,314 Bcfe, representing 79% of total proved reserves, compared to 84% a year ago. In fiscal 2022, Seneca recorded 839 Bcfe of proved reserve extensions and discoveries, and 8 Bcfe of net positive revisions due primarily to certain price-related revisions, improvements in well performance and changes in development plans. Adjusting for sales, Seneca replaced 240% of its fiscal 2022 production.

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
	September 30,
(in thousands)	2022		2021		Variance
GAAP Earnings	$	25,320	$	21,482	$	3,838

Adjusted EBITDA	$	59,819	$	49,131	$	10,688

The Pipeline and Storage segment’s fourth quarter GAAP earnings increased $3.8 million versus the prior year primarily due to an increase in operating revenues, partially offset by higher operation and maintenance ("O&M") expense, higher DD&A expense and a higher effective income tax rate. The increase in operating revenues of $12.7 million was primarily attributable to higher transportation revenues from Supply Corporation's FM100 Project, which was placed in service in December 2021. O&M expense increased $2.1 million primarily due to an increase in personnel costs and compressor station maintenance costs. The increase in DD&A expense of $1.7 million was primarily attributable to incremental depreciation expense from the FM100 Project. The increase in the Pipeline and Storage segment's effective income tax rate was primarily driven by a reduction in benefits associated with the tax sharing agreement with affiliated companies combined with higher state income taxes due to higher pre-tax earnings.

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
	September 30,
(in thousands)	2022			2021		Variance
GAAP Earnings	$	31,224		$	18,597	$	12,627
Reversal of deferred tax valuation allowance		3,739			—		3,739
Remeasurement of deferred income tax from Pennsylvania state income tax rate reduction		(11,856	)		—		(11,856	)
Adjusted Operating Results	$	23,107		$	18,597	$	4,510

Adjusted EBITDA	$	43,335		$	37,858	$	5,477

The Gathering segment’s fourth quarter GAAP earnings increased $12.6 million versus the prior year. Earnings were positively impacted by an $11.9 million income tax benefit recorded due to the remeasurement of deferred income taxes related to the aforementioned reduction in the Pennsylvania corporate income tax rate. Earnings were also impacted by the Gathering segment's recognition of a $3.7 million increase in income tax expense that was recorded as an offset to the reversal of a valuation allowance described above in the Exploration and Production segment due to the Gathering and Exploration and Production segments' subsidiaries filing a combined state tax return. Excluding these items, the Gathering segment's earnings increased $4.5 million. The increase was primarily driven by higher operating revenues, which were partially offset by higher O&M expense. Operating revenues increased $6.7 million, or 14%, primarily driven by a 14.0 Bcf increase in gathered volumes due to an increase in natural gas production from both Seneca and non-affiliated parties. The increase in O&M expense of $1.3 million was primarily due to higher costs for materials and higher compression leasing expenses, which are both primarily attributable to higher throughput, as well as an increase in personnel costs.

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
	September 30,
(in thousands)	2022			2021			Variance
GAAP Earnings	$	(10,852	)	$	(5,587	)	$	(5,265	)

Adjusted EBITDA	$	6,270		$	11,093		$	(4,823	)

The Utility segment’s fourth quarter net loss was $5.3 million higher than the net loss in the prior-year fourth quarter primarily due to higher O&M and interest expense, partially offset by 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 O&M expense of $6.5 million was primarily attributable to higher personnel costs and higher pipeline integrity expenses. Interest expense increased $1.7 million due primarily to a higher weighted average interest rate on intercompany short-term borrowings. The increase in customer margin was due primarily to the positive impact of adjustments related to certain regulatory rate and cost recovery mechanisms subject to annual reconciliation, partially offset by a reduction in base rates in Pennsylvania as a result of a rate proceeding that concluded in the second quarter whereby the Utility agreed to lower the amount of other post-employment benefit (“OPEB”) expense it recovers in rates. With the elimination of OPEB expenses in rates, there was also a decrease in non-service post-retirement benefit costs recorded in other income (deductions).

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.6 million in the current year fourth quarter, which was $0.4 million higher than the combined net loss of $3.2 million in the prior-year fourth quarter. The increase in net loss was primarily driven by a higher amount of unrealized losses on investment securities recognized in the current quarter as compared to the prior-year fourth quarter.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 4, 2022, at 11 a.m. Eastern Time to discuss this announcement. To pre-register for this call (recommended), please visit https://www.netroadshow.com/events/login?show=d40ff074&confId=42546. 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 1-844–200–6205 and provide Access Code 879958. The teleconference will be simultaneously webcast online and can be accessed on the NFG Investor Relations website at investor.nationalfuelgas.com. An audio replay of the teleconference call will be available until Friday November 11, 2022. To access the telephone replay, dial U.S. toll free 866-813-9403 and provide Access Code 533110.

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; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of 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 2023. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

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 fiscal year ending September 30, 2023, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	Preliminary FY 2023 Guidance	Updated FY 2023 Guidance
Consolidated Earnings per Share, excluding items impacting comparability	$7.25 to $7.75	$6.40 to $6.90
Consolidated Effective Tax Rate	~ 25.5 - 26%	~ 25.5 - 26%

Capital Expenditures (Millions)
Exploration and Production	$525 - $575	$525 - $575
Pipeline and Storage	$110 - $130	$110 - $130
Gathering	$85 - $105	$85 - $105
Utility	$110 - $130	$110 - $130
Consolidated Capital Expenditures	$830 - $940	$830 - $940

Exploration & Production Segment Guidance

Commodity Price Assumptions
NYMEX natural gas price (Oct - Mar \| Apr - Sep)	$7.50 /MMBtu l $5.00 /MMBtu	$6.00 /MMBtu l $4.75 /MMBtu
Appalachian basin spot price (Oct - Mar \| Apr - Sep)	$6.50 /MMBtu l $3.90 /MMBtu	$4.95 /MMBtu l $3.55 /MMBtu

Production (Bcfe)	370 to 390	370 to 390

E&P Operating Costs ($/Mcfe)
LOE	$0.67 - $0.69	$0.67 - $0.69
G&A	$0.17 - $0.19	$0.17 - $0.19
DD&A	$0.60 - $0.64	$0.60 - $0.64

Other Business Segment Guidance (Millions)
Gathering Segment Revenues	$235 - $250	$230 - $245
Pipeline and Storage Segment Revenues	$360 - $380	$360 - $380

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2022
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			All Other			Consolidated*

Fourth quarter 2021 GAAP earnings	$	55,703		$	21,482		$	18,597		$	(5,587	)	$	(3,233	)	$	86,962
Items impacting comparability:
Unrealized (gain) loss on other investments														395			395
Tax impact of unrealized (gain) loss on other investments														(83	)		(83	)
Fourth quarter 2021 adjusted operating results		55,703			21,482			18,597			(5,587	)		(2,921	)		87,274
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		21,670															21,670
Higher (lower) crude oil production		(25,805	)														(25,805	)
Higher (lower) realized natural gas prices, after hedging		32,485															32,485
Midstream Revenues
Higher (lower) operating revenues					10,052			5,330									15,382
Downstream Margins***
Impact of usage and weather											507						507
Impact of new rates											(465	)					(465	)
Regulatory revenue adjustments											1,108						1,108
Operating Expenses
Lower (higher) lease operating and transportation expenses		4,201															4,201
Lower (higher) operating expenses		2,410			(1,694	)		(1,003	)		(4,960	)		(762	)		(6,009	)
Lower (higher) property, franchise and other taxes		653															653
Lower (higher) depreciation / depletion		(6,180	)		(1,309	)											(7,489	)
Other Income (Expense)
(Higher) lower other deductions		1,093									939			(1,386	)		646
(Higher) lower interest expense		(2,000	)		(1,032	)					(1,314	)		1,934			(2,412	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(10,151	)		(1,844	)		441			(669	)		374			(11,849	)
All other / rounding		449			(335	)		(258	)		(411	)		(53	)		(608	)
Fourth quarter 2022 adjusted operating results		74,528			25,320			23,107			(10,852	)		(2,814	)		109,289
Items impacting comparability:
Unrealized gain (loss) on derivative asset		(4,395	)														(4,395	)
Tax impact of unrealized gain (loss) on derivative asset		1,203															1,203
Reversal of deferred tax valuation allowance		28,589						(3,739	)								24,850
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		16,152						11,856						398			28,406
Unrealized gain (loss) on other investments														(1,532	)		(1,532	)
Tax impact of unrealized gain (loss) on other investments														322			322
Fourth quarter 2022 GAAP earnings	$	116,077		$	25,320		$	31,224		$	(10,852	)	$	(3,626	)	$	158,143

* 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 SEPTEMBER 30, 2022
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
	Production			Storage			Gathering			Utility			All Other			Consolidated*

Fourth quarter 2021 GAAP earnings per share	$	0.61		$	0.23		$	0.20		$	(0.06	)	$	(0.03	)	$	0.95
Items impacting comparability:
Unrealized (gain) loss on other investments, net of tax														—			—
Fourth quarter 2021 adjusted operating results per share		0.61			0.23			0.20			(0.06	)		(0.03	)		0.95
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.24															0.24
Higher (lower) crude oil production		(0.28	)														(0.28	)
Higher (lower) realized natural gas prices, after hedging		0.35															0.35
Midstream Revenues
Higher (lower) operating revenues					0.11			0.06									0.17
Downstream Margins***
Impact of usage and weather											0.01						0.01
Impact of new rates											(0.01	)					(0.01	)
Regulatory revenue adjustments											0.01						0.01
Operating Expenses
Lower (higher) lease operating and transportation expenses		0.05															0.05
Lower (higher) operating expenses		0.03			(0.02	)		(0.01	)		(0.05	)		(0.01	)		(0.06	)
Lower (higher) property, franchise and other taxes		0.01															0.01
Lower (higher) depreciation / depletion		(0.07	)		(0.01	)											(0.08	)
Other Income (Expense)
(Higher) lower other deductions		0.01									0.01			(0.02	)		—
(Higher) lower interest expense		(0.02	)		(0.01	)					(0.01	)		0.02			(0.02	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(0.11	)		(0.02	)		—			(0.01	)		—			(0.14	)
All other / rounding		(0.01	)		(0.01	)		—			(0.01	)		0.02			(0.01	)
Fourth quarter 2022 adjusted operating results per share		0.81			0.27			0.25			(0.12	)		(0.02	)		1.19
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax		(0.03	)														(0.03	)
Reversal of deferred tax valuation allowance		0.31						(0.04	)								0.27
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		0.18						0.13						—			0.31
Unrealized gain (loss) on other investments, net of tax														(0.01	)		(0.01	)
Rounding		(0.01	)											(0.01	)		(0.02	)
Fourth quarter 2022 GAAP earnings per share	$	1.26		$	0.27		$	0.34		$	(0.12	)	$	(0.04	)	$	1.71

* 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
TWELVE MONTHS ENDED SEPTEMBER 30, 2022
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			All Other			Consolidated*
Fiscal 2021 GAAP earnings	$	101,916		$	92,542		$	80,274		$	54,335		$	34,580		$	363,647
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														(181	)		(181	)
Tax impact of unrealized (gain) loss on other investments														38			38
Fiscal 2021 adjusted operating results		167,798			92,542			80,958			54,335			(2,560	)		393,073
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		51,264															51,264
Higher (lower) crude oil production		(28,169	)														(28,169	)
Higher (lower) realized natural gas prices, after hedging		126,330															126,330
Higher (lower) realized crude oil prices, after hedging		18,071															18,071
Higher (lower) other operating revenues		5,037															5,037
Midstream Revenues
Higher (lower) operating revenues					25,738			17,047									42,785
Downstream Margins***
Impact of usage and weather											2,887						2,887
Impact of new rates											(5,596	)					(5,596	)
System modernization tracker revenues											3,585						3,585
Higher (lower) energy marketing margins														1,287			1,287
Operating Expenses
Lower (higher) lease operating and transportation expenses		(13,112	)														(13,112	)
Lower (higher) operating expenses		(5,432	)		(7,571	)		(3,181	)		(9,502	)		995			(24,691	)
Lower (higher) property, franchise and other taxes		(2,484	)		(800	)											(3,284	)
Lower (higher) depreciation / depletion		(20,268	)		(4,163	)		(1,302	)								(25,733	)
Other Income (Expense)
(Higher) lower other deductions		1,676									9,767			(3,262	)		8,181
(Higher) lower interest expense		1,176			(1,198	)					(1,992	)		2,030			16
Income Taxes
Lower (higher) income tax expense / effective tax rate		(6,318	)		(2,279	)		(578	)		574			(2,569	)		(11,170	)
All other / rounding		2			288			50			249			206			795
Fiscal 2022 adjusted operating results		295,571			102,557			92,994			54,307			(3,873	)		541,556
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	)
Gain on sale of West Coast assets		12,736															12,736
Tax impact of gain on sale of West Coast assets		(3,225	)														(3,225	)
Loss from discontinuance of crude oil cash flow hedges		(44,632	)														(44,632	)
Tax impact of loss from discontinuance of crude oil cash flow hedges		11,303															11,303
Transaction and severance costs related to West Coast asset sale		(9,693	)														(9,693	)
Tax impact of transaction and severance costs related to West Cost asset sale		2,455															2,455
Unrealized gain (loss) on derivative asset		(4,395	)														(4,395	)
Tax impact of unrealized gain (loss) on derivative asset		1,203															1,203
Reversal of deferred tax valuation allowance		28,589						(3,739	)								24,850
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		16,152						11,856						398			28,406
Unrealized gain (loss) on other investments														(11,625	)		(11,625	)
Tax impact of unrealized gain (loss) on other investments														2,441			2,441
Fiscal 2022 GAAP earnings	$	306,064		$	102,557		$	101,111		$	68,948		$	(12,659	)	$	566,021

* 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
TWELVE MONTHS ENDED SEPTEMBER 30, 2022
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
	Production			Storage			Gathering			Utility			All Other			Consolidated*
Fiscal 2021 GAAP earnings per share	$	1.11		$	1.01		$	0.88		$	0.59		$	0.38		$	3.97
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														—			—
Fiscal 2021 adjusted operating results per share		1.83			1.01			0.88			0.59			(0.02	)		4.29
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.56															0.56
Higher (lower) crude oil production		(0.31	)														(0.31	)
Higher (lower) realized natural gas prices, after hedging		1.37															1.37
Higher (lower) realized crude oil prices, after hedging		0.20															0.20
Higher (lower) other operating revenues		0.05															0.05
Midstream Revenues
Higher (lower) operating revenues					0.28			0.19									0.47
Downstream Margins***
Impact of usage and weather											0.03						0.03
Impact of new rates											(0.06	)					(0.06	)
System modernization tracker revenues											0.04						0.04
Higher (lower) energy marketing margins														0.01			0.01
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.14	)														(0.14	)
Lower (higher) operating expenses		(0.06	)		(0.08	)		(0.03	)		(0.10	)		0.01			(0.26	)
Lower (higher) property, franchise and other taxes		(0.03	)		(0.01	)											(0.04	)
Lower (higher) depreciation / depletion		(0.22	)		(0.05	)		(0.01	)								(0.28	)
Other Income (Expense)
(Higher) lower other deductions		0.02									0.11			(0.04	)		0.09
(Higher) lower interest expense		0.01			(0.01	)					(0.02	)		0.02			—
Income Taxes
Lower (higher) income tax expense / effective tax rate		(0.07	)		(0.02	)		(0.01	)		0.01			(0.03	)		(0.12	)
All other / rounding		—			(0.01	)		(0.01	)		(0.01	)		0.01			(0.02	)
Fiscal 2022 adjusted operating results per share		3.21			1.11			1.01			0.59			(0.04	)		5.88
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax											0.16						0.16
Gain on sale of West Coast assets, net of tax		0.10															0.10
Loss from discontinuance of crude oil cash flow hedges, net of tax		(0.36	)														(0.36	)
Transaction and severance costs related to West Coast asset sale, net of tax		(0.08	)														(0.08	)
Unrealized gain (loss) on derivative asset, net of tax		(0.03	)														(0.03	)
Reversal of deferred tax valuation allowance		0.31						(0.04	)								0.27
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		0.18						0.13						—			0.31
Unrealized gain (loss) on other investments, net of tax														(0.10	)		(0.10	)
Rounding		(0.01	)											0.01			—
Fiscal 2022 GAAP earnings per share	$	3.32		$	1.11		$	1.10		$	0.75		$	(0.13	)	$	6.15

* 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						Twelve Months Ended
	September 30,						September 30,
	(Unaudited)						(Unaudited)
SUMMARY OF OPERATIONS	2022			2021			2022			2021
Operating Revenues:
Utility and Energy Marketing Revenues	$	112,252		$	80,302		$	897,916		$	667,549
Exploration and Production and Other Revenues		252,035			215,664			1,010,629			837,597
Pipeline and Storage and Gathering Revenues		70,859			60,022			277,501			237,513
		435,146			355,988			2,186,046			1,742,659
Operating Expenses:
Purchased Gas		22,925			(5,190	)		392,093			171,827
Operation and Maintenance:
Utility and Energy Marketing		46,535			40,026			193,058			179,547
Exploration and Production and Other		31,554			46,007			191,572			173,041
Pipeline and Storage and Gathering		39,138			35,747			136,571			123,218
Property, Franchise and Other Taxes		23,089			23,454			101,182			94,713
Depreciation, Depletion and Amortization		94,109			83,671			369,790			335,303
Impairment of Oil and Gas Producing Properties		—			—			—			76,152
		257,350			223,715			1,384,266			1,153,801
Gain on Sale of Assets		—			—			12,736			51,066
Operating Income		177,796			132,273			814,516			639,924

Other Expense:
Other Income (Deductions)		(4,800	)		(160	)		(1,509	)		(15,238	)
Interest Expense on Long-Term Debt		(30,207	)		(30,161	)		(120,507	)		(141,457	)
Other Interest Expense		(3,289	)		(270	)		(9,850	)		(4,900	)

Income Before Income Taxes		139,500			101,682			682,650			478,329

Income Tax Expense (Benefit)		(18,643	)		14,720			116,629			114,682

Net Income Available for Common Stock	$	158,143		$	86,962		$	566,021		$	363,647

Earnings Per Common Share
Basic	$	1.73		$	0.95		$	6.19		$	3.99
Diluted	$	1.71		$	0.95		$	6.15		$	3.97

Weighted Average Common Shares:
Used in Basic Calculation		91,476,535			91,181,292			91,410,625			91,130,941
Used in Diluted Calculation		92,218,581			91,851,443			92,107,066			91,684,583

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	September 30,			September 30,
(Thousands of Dollars)	2022			2021
ASSETS
Property, Plant and Equipment	$	12,551,909		$	13,103,639
Less - Accumulated Depreciation, Depletion and Amortization		5,985,432			6,719,356
Net Property, Plant and Equipment		6,566,477			6,384,283
Current Assets:
Cash and Temporary Cash Investments		46,048			31,528
Hedging Collateral Deposits		91,670			88,610
Receivables - Net		361,626			205,294
Unbilled Revenue		30,075			17,000
Gas Stored Underground		32,364			33,669
Materials, Supplies and Emission Allowances		40,637			53,560
Unrecovered Purchased Gas Costs		99,342			33,128
Other Current Assets		59,369			59,660
Total Current Assets		761,131			522,449
Other Assets:
Recoverable Future Taxes		106,247			121,992
Unamortized Debt Expense		8,884			10,589
Other Regulatory Assets		67,101			60,145
Deferred Charges		77,472			59,939
Other Investments		95,025			149,632
Goodwill		5,476			5,476
Prepaid Pension and Post-Retirement Benefit Costs		196,597			149,151
Fair Value of Derivative Financial Instruments		9,175			—
Other		2,677			1,169
Total Other Assets		568,654			558,093
Total Assets	$	7,896,262		$	7,464,825
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,478,064 Shares and 91,181,549 Shares, Respectively	$	91,478		$	91,182
Paid in Capital		1,027,066			1,017,446
Earnings Reinvested in the Business		1,587,085			1,191,175
Accumulated Other Comprehensive Loss		(625,733	)		(513,597	)
Total Comprehensive Shareholders' Equity		2,079,896			1,786,206
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,083,409			2,628,687
Total Capitalization		4,163,305			4,414,893
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		60,000			158,500
Current Portion of Long-Term Debt		549,000			—
Accounts Payable		178,945			171,655
Amounts Payable to Customers		419			21
Dividends Payable		43,452			41,487
Interest Payable on Long-Term Debt		17,376			17,376
Customer Advances		26,108			17,223
Customer Security Deposits		24,283			19,292
Other Accruals and Current Liabilities		257,327			194,169
Fair Value of Derivative Financial Instruments		785,659			616,410
Total Current and Accrued Liabilities		1,942,569			1,236,133
Other Liabilities:
Deferred Income Taxes		698,229			660,420
Taxes Refundable to Customers		362,098			354,089
Cost of Removal Regulatory Liability		259,947			245,636
Other Regulatory Liabilities		188,803			200,643
Pension and Other Post-Retirement Liabilities		3,065			7,526
Asset Retirement Obligations		161,545			209,639
Other Liabilities		116,701			135,846
Total Other Liabilities		1,790,388			1,813,799
Commitments and Contingencies		—			—
Total Capitalization and Liabilities	$	7,896,262		$	7,464,825



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Twelve Months Ended
	September 30,
(Thousands of Dollars)	2022			2021

Operating Activities:
Net Income Available for Common Stock	$	566,021		$	363,647
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Gain on Sale of Assets		(12,736	)		(51,066	)
Impairment of Oil and Gas Producing Properties		—			76,152
Depreciation, Depletion and Amortization		369,790			335,303
Deferred Income Taxes		104,415			105,993
Premium Paid on Early Redemption of Debt		—			15,715
Stock-Based Compensation		19,506			17,065
Reduction of Other Post-Retirement Regulatory Liability		(18,533	)		—
Other		31,983			10,896
Change in:
Receivables and Unbilled Revenue		(168,769	)		(61,413	)
Gas Stored Underground and Materials, Supplies and Emission Allowances		3,109			(2,014	)
Unrecovered Purchased Gas Costs		(66,214	)		(33,128	)
Other Current Assets		291			(11,972	)
Accounts Payable		11,907			31,352
Amounts Payable to Customers		398			(10,767	)
Customer Advances		8,885			1,904
Customer Security Deposits		4,991			2,093
Other Accruals and Current Liabilities		34,260			34,314
Other Assets		(58,924	)		1,250
Other Liabilities		(17,859	)		(33,771	)
Net Cash Provided by Operating Activities	$	812,521		$	791,553

Investing Activities:
Capital Expenditures	$	(811,826	)	$	(751,734	)
Net Proceeds from Sale of Oil and Gas Producing Properties		254,439			—
Net Proceeds from Sale of Timber Properties		—			104,582
Sale of Fixed Income Mutual Fund Shares in Grantor Trust		30,000			—
Other		8,683			13,935
Net Cash Used in Investing Activities	$	(518,704	)	$	(633,217	)

Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper	$	(98,500	)	$	128,500
Reduction of Long-Term Debt		—			(515,715	)
Dividends Paid on Common Stock		(168,147	)		(163,089	)
Net Proceeds From Issuance of Long-Term Debt		—			495,267
Net Repurchases of Common Stock		(9,590	)		(3,702	)
Net Cash Used in Financing Activities	$	(276,237	)	$	(58,739	)

Net Increase in Cash, Cash Equivalents, and Restricted Cash		17,580			99,597
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		120,138			20,541
Cash, Cash Equivalents, and Restricted Cash at September 30	$	137,718		$	120,138



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

UPSTREAM BUSINESS


	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
EXPLORATION AND PRODUCTION SEGMENT	2022			2021			Variance			2022			2021			Variance
Total Operating Revenues	$	252,035		$	215,581		$	36,454		$	1,010,464		$	836,697		$	173,767
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		15,664			16,957			(1,293	)		79,061			67,973			11,088
Lease Operating and Transportation Expense		62,701			68,019			(5,318	)		283,914			267,316			16,598
All Other Operation and Maintenance Expense		1,957			3,715			(1,758	)		20,140			14,659			5,481
Property, Franchise and Other Taxes		5,475			6,302			(827	)		25,364			22,220			3,144
Depreciation, Depletion and Amortization		52,958			45,135			7,823			208,148			182,492			25,656
Impairment of Oil and Gas Producing Properties		—			—			—			—			76,152			(76,152	)
		138,755			140,128			(1,373	)		616,627			630,812			(14,185	)
Gain on Sale of Assets		—			—			—			12,736			—			12,736
Operating Income		113,280			75,453			37,827			406,573			205,885			200,688

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(186	)		(289	)		103			(744	)		(1,148	)		404
Interest and Other Income		(3,080	)		35			(3,115	)		(2,466	)		211			(2,677	)
Interest Expense on Long-Term Debt		—			—			—			—			(15,119	)		15,119
Interest Expense		(14,474	)		(11,942	)		(2,532	)		(53,401	)		(54,543	)		1,142
Income Before Income Taxes		95,540			63,257			32,283			349,962			135,286			214,676
Income Tax Expense (Benefit)		(20,537	)		7,554			(28,091	)		43,898			33,370			10,528
Net Income	$	116,077		$	55,703		$	60,374		$	306,064		$	101,916		$	204,148
Net Income Per Share (Diluted)	$	1.26		$	0.61		$	0.65		$	3.32		$	1.11		$	2.21


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

MIDSTREAM BUSINESSES

	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
PIPELINE AND STORAGE SEGMENT	2022			2021			Variance			2022			2021			Variance
Revenues from External Customers	$	68,836		$	58,515		$	10,321		$	265,415		$	234,397		$	31,018
Intersegment Revenues		28,913			26,510			2,403			111,629			109,160			2,469
Total Operating Revenues		97,749			85,025			12,724			377,044			343,557			33,487
Operating Expenses:
Purchased Gas		592			764			(172	)		1,890			983			907
Operation and Maintenance		28,868			26,724			2,144			100,117			90,533			9,584
Property, Franchise and Other Taxes		8,470			8,406			64			34,133			33,120			1,013
Depreciation, Depletion and Amortization		17,283			15,626			1,657			67,701			62,431			5,270
		55,213			51,520			3,693			203,841			187,067			16,774

Operating Income		42,536			33,505			9,031			173,203			156,490			16,713

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		767			125			642			3,069			501			2,568
Interest and Other Income		1,490			2,180			(690	)		3,820			5,339			(1,519	)
Interest Expense		(10,929	)		(9,623	)		(1,306	)		(42,492	)		(40,976	)		(1,516	)
Income Before Income Taxes		33,864			26,187			7,677			137,600			121,354			16,246
Income Tax Expense		8,544			4,705			3,839			35,043			28,812			6,231
Net Income	$	25,320		$	21,482		$	3,838		$	102,557		$	92,542		$	10,015
Net Income Per Share (Diluted)	$	0.27		$	0.23		$	0.04		$	1.11		$	1.01		$	0.10


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
GATHERING SEGMENT	2022			2021			Variance			2022			2021			Variance
Revenues from External Customers	$	2,023		$	1,507		$	516		$	12,086		$	3,116		$	8,970
Intersegment Revenues		52,061			45,830			6,231			202,757			190,148			12,609
Total Operating Revenues		54,084			47,337			6,747			214,843			193,264			21,579
Operating Expenses:
Operation and Maintenance		10,725			9,456			1,269			38,234			34,207			4,027
Property, Franchise and Other Taxes		24			23			1			37			52			(15	)
Depreciation, Depletion and Amortization		8,656			8,219			437			33,998			32,350			1,648
		19,405			17,698			1,707			72,269			66,609			5,660

Operating Income		34,679			29,639			5,040			142,574			126,655			15,919

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(56	)		(68	)		12			(224	)		(271	)		47
Interest and Other Income		117			6			111			198			259			(61	)
Interest Expense on Long-Term Debt		—			—			—			—			(965	)		965
Interest Expense		(4,105	)		(4,093	)		(12	)		(16,488	)		(16,528	)		40
Income Before Income Taxes		30,635			25,484			5,151			126,060			109,150			16,910
Income Tax Expense (Benefit)		(589	)		6,887			(7,476	)		24,949			28,876			(3,927	)
Net Income	$	31,224		$	18,597		$	12,627		$	101,111		$	80,274		$	20,837
Net Income Per Share (Diluted)	$	0.34		$	0.20		$	0.14		$	1.10		$	0.88		$	0.22



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

DOWNSTREAM BUSINESS


	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
UTILITY SEGMENT	2022			2021			Variance			2022			2021			Variance
Revenues from External Customers	$	112,252		$	80,302		$	31,950		$	897,916		$	666,920		$	230,996
Intersegment Revenues		60			60			—			305			331			(26	)
Total Operating Revenues		112,312			80,362			31,950			898,221			667,251			230,970
Operating Expenses:
Purchased Gas		49,692			19,826			29,866			497,959			274,837			223,122
Operation and Maintenance		47,369			40,855			6,514			196,254			182,266			13,988
Property, Franchise and Other Taxes		8,981			8,588			393			41,137			38,769			2,368
Depreciation, Depletion and Amortization		15,167			14,646			521			59,760			57,457			2,303
		121,209			83,915			37,294			795,110			553,329			241,781

Operating Income (Loss)		(8,897	)		(3,553	)		(5,344	)		103,111			113,922			(10,811	)

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit		(492	)		(1,985	)		1,493			5,526			(26,659	)		32,185
Interest and Other Income		429			733			(304	)		1,591			2,874			(1,283	)
Interest Expense		(7,000	)		(5,337	)		(1,663	)		(24,115	)		(21,795	)		(2,320	)
Income (Loss) Before Income Taxes		(15,960	)		(10,142	)		(5,818	)		86,113			68,342			17,771
Income Tax Expense (Benefit)		(5,108	)		(4,555	)		(553	)		17,165			14,007			3,158
Net Income (Loss)	$	(10,852	)	$	(5,587	)	$	(5,265	)	$	68,948		$	54,335		$	14,613
Net Income (Loss) Per Share (Diluted)	$	(0.12	)	$	(0.06	)	$	(0.06	)	$	0.75		$	0.59		$	0.16

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Twelve Months Ended
(Thousands of Dollars, except per share amounts)	September 30,									September 30,
ALL OTHER	2022			2021			Variance			2022			2021			Variance
Revenues from External Customers	$	—		$	—		$	—		$	—		$	1,173		$	(1,173	)
Intersegment Revenues		—			26			(26	)		6			49			(43	)
Total Operating Revenues		—			26			(26	)		6			1,222			(1,216	)
Operating Expenses:
Purchased Gas		—			9			(9	)		6			2,306			(2,300	)
Operation and Maintenance		—			(20	)		20			5			682			(677	)
Property, Franchise and Other Taxes		—			—			—			—			47			(47	)
Depreciation, Depletion and Amortization		—			—			—			—			394			(394	)
		—			(11	)		11			11			3,429			(3,418	)
Gain on Sale of Assets		—			—			—			—			51,066			(51,066	)
Operating Income (Loss)		—			37			(37	)		(5	)		48,859			(48,864	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		—			—			—			—			(7	)		7
Interest and Other Income		1			2			(1	)		3			231			(228	)
Interest Expense		(4	)		—			(4	)		(4	)		—			(4	)
Income (Loss) before Income Taxes		(3	)		39			(42	)		(6	)		49,083			(49,089	)
Income Tax Expense (Benefit)		(1	)		10			(11	)		3			11,438			(11,435	)
Net Income (Loss)	$	(2	)	$	29		$	(31	)	$	(9	)	$	37,645		$	(37,654	)
Net Income (Loss) Per Share (Diluted)	$	—		$	—		$	—		$	—		$	0.41		$	(0.41	)

	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
CORPORATE	2022			2021			Variance			2022			2021			Variance
Revenues from External Customers	$	—		$	83		$	(83	)	$	165		$	356		$	(191	)
Intersegment Revenues		1,183			1,146			37			4,430			3,864			566
Total Operating Revenues		1,183			1,229			(46	)		4,595			4,220			375
Operating Expenses:
Operation and Maintenance		4,801			3,857			944			14,841			15,423			(582	)
Property, Franchise and Other Taxes		139			135			4			511			505			6
Depreciation, Depletion and Amortization		45			45			—			183			179			4
		4,985			4,037			948			15,535			16,107			(572	)

Operating Loss		(3,802	)		(2,808	)		(994	)		(10,940	)		(11,887	)		947
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(1,017	)		(923	)		(94	)		(4,069	)		(3,692	)		(377	)
Interest and Other Income		33,712			31,154			2,558			126,648			138,882			(12,234	)
Interest Expense on Long-Term Debt		(30,207	)		(30,161	)		(46	)		(120,507	)		(125,373	)		4,866
Other Interest Expense		(3,262	)		(405	)		(2,857	)		(8,211	)		(2,816	)		(5,395	)
Loss before Income Taxes		(4,576	)		(3,143	)		(1,433	)		(17,079	)		(4,886	)		(12,193	)
Income Tax Expense (Benefit)		(952	)		119			(1,071	)		(4,429	)		(1,821	)		(2,608	)
Net Loss	$	(3,624	)	$	(3,262	)	$	(362	)	$	(12,650	)	$	(3,065	)	$	(9,585	)
Net Loss Per Share (Diluted)	$	(0.04	)	$	(0.03	)	$	(0.01	)	$	(0.13	)	$	(0.03	)	$	(0.10	)


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
INTERSEGMENT ELIMINATIONS	2022			2021			Variance			2022			2021			Variance
Intersegment Revenues	$	(82,217	)	$	(73,572	)	$	(8,645	)	$	(319,127	)	$	(303,552	)	$	(15,575	)
Operating Expenses:
Purchased Gas		(27,359	)		(25,789	)		(1,570	)		(107,762	)		(106,299	)		(1,463	)
Operation and Maintenance		(54,858	)		(47,783	)		(7,075	)		(211,365	)		(197,253	)		(14,112	)
		(82,217	)		(73,572	)		(8,645	)		(319,127	)		(303,552	)		(15,575	)
Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest and Other Deductions		(36,485	)		(31,130	)		(5,355	)		(134,861	)		(131,758	)		(3,103	)
Interest Expense		36,485			31,130			5,355			134,861			131,758			3,103
Net Income	$	—		$	—		$	—		$	—		$	—		$	—
Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—



NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)
(Thousands of Dollars)


	Three Months Ended									Twelve Months Ended
	September 30,									September 30,
	(Unaudited)									(Unaudited)
							Increase									Increase
	2022			2021			(Decrease)			2022			2021			(Decrease)

Capital Expenditures:
Exploration and Production	$	160,056	⁽¹⁾	$	117,646	⁽²⁾	$	42,410		$	565,791	⁽¹⁾⁽²⁾	$	381,408	⁽²⁾⁽³⁾	$	184,383
Pipeline and Storage		37,563	⁽¹⁾		96,760	⁽²⁾		(59,197	)		95,806	⁽¹⁾⁽²⁾		252,316	⁽²⁾⁽³⁾		(156,510	)
Gathering		26,957	⁽¹⁾		9,041	⁽²⁾		17,916			55,546	⁽¹⁾⁽²⁾		34,669	⁽²⁾⁽³⁾		20,877
Utility		40,061	⁽¹⁾		34,154	⁽²⁾		5,907			111,033	⁽¹⁾⁽²⁾		100,845	⁽²⁾⁽³⁾		10,188
Total Reportable Segments		264,637			257,601			7,036			828,176			769,238			58,938
All Other		—			—			—			—			—			—
Corporate		549			231			318			1,212			450			762
Eliminations		—			2,341			(2,341	)		—			223			(223	)
Total Capital Expenditures	$	265,186		$	260,173		$	5,013		$	829,388		$	769,911		$	59,477

⁽¹⁾		^{Capital expenditures for the quarter and year ended September 30, 2022, include accounts payable and accrued liabilities related to 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 have been excluded from the Consolidated Statement of Cash Flows at September 30, 2022, since they represent non-cash investing activities at that date.}

⁽²⁾		^{Capital expenditures for the year ended September 30, 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 year ended September 30, 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 September 30, 2022.}

⁽³⁾		^{Capital expenditures for the year ended September 30, 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 year ended September 30, 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 September 30, 2021.}


DEGREE DAYS
				Percent Colder
				(Warmer) Than:
Three Months Ended September 30,	Normal	2022	2021	Normal ⁽¹⁾		Last Year ⁽¹⁾
Buffalo, NY	162	107	38	(34.0	)	181.6
Erie, PA	124	94	33	(24.2	)	184.8

Twelve Months Ended September 30,
Buffalo, NY	6,617	5,769	5,731	(12.8	)	0.7
Erie, PA	6,147	5,368	5,221	(12.7	)	2.8

⁽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							Twelve Months Ended
	September 30,							September 30,
					Increase							Increase
	2022		2021		(Decrease)			2022		2021		(Decrease)

Gas Production/Prices:
Production (MMcf)
Appalachia		87,858		75,871		11,987			341,700		312,300		29,400
West Coast		1		420		(419	)		1,211		1,720		(509	)
Total Production		87,859		76,291		11,568			342,911		314,020		28,891

Average Prices (Per Mcf)
Appalachia	$	6.16	$	3.14	$	3.02		$	5.03	$	2.46	$	2.57
West Coast	N/M			7.93	N/M				10.03		6.34		3.69
Weighted Average		6.16		3.16		3.00			5.05		2.49		2.56
Weighted Average after Hedging		2.84		2.37		0.47			2.71		2.25		0.46

Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia		7		1		6			16		2		14
West Coast		—		551		(551	)		1,588		2,233		(645	)
Total Production		7		552		(545	)		1,604		2,235		(631	)

Average Prices (Per Barrel)
Appalachia	$	90.22	$	66.34	$	23.88		$	97.82	$	48.02	$	49.80
West Coast	N/M			71.46	N/M				94.06		60.50		33.56
Weighted Average		90.93		71.45		19.48			94.10		60.49		33.61
Weighted Average after Hedging ⁽¹⁾		90.86		60.04		30.82			70.80		56.54		14.26

Total Production (MMcfe)		87,901		79,603		8,298			352,535		327,430		25,105

Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe ⁽²⁾	$	0.18	$	0.21	$	(0.03	)	$	0.20	$	0.21	$	(0.01	)
Lease Operating and Transportation Expense per Mcfe ⁽²⁾⁽³⁾	$	0.71	$	0.85	$	(0.14	)	$	0.81	$	0.82	$	(0.01	)
Depreciation, Depletion & Amortization per Mcfe ⁽²⁾	$	0.60	$	0.57	$	0.03		$	0.59	$	0.56	$	0.03

N/M Not Meaningful (as a result of the sale of Seneca's West Coast assets in June 2022)

⁽¹⁾		^{Weighted average oil price after hedging for the twelve months ended September 30, 2022 excludes a loss on discontinuance of crude oil cash flow hedges of $44,632.}

⁽²⁾		^{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. General and Administrative Expense per Mcfe for the twelve months ended September 30, 2022 excludes transaction and severance costs related to the California asset sale.}

⁽³⁾		^{Amounts include transportation expense of $0.58 and $0.55 per Mcfe for the three months ended September 30, 2022 and September 30, 2021, respectively. Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the twelve months ended September 30, 2022 and September 30, 2021, respectively.}

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for Fiscal 2023	Volume		Average Hedge Price
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	73,283,422 MMBTU	$	2.44 / MMBTU
Total	259,883,422 MMBTU
Hedging Summary for Fiscal 2024	Volume		Average Hedge Price
Gas Swaps
NYMEX	67,680,000 MMBTU	$	2.98 / MMBTU
No Cost Collars	59,200,000 MMBTU	$	3.20 / MMBTU (Floor) / $3.78 / MMBTU (Ceiling)
Fixed Price Physical Sales	66,115,483 MMBTU	$	2.39 / MMBTU
Total	192,995,483 MMBTU
Hedging Summary for Fiscal 2025	Volume		Average Hedge Price
Gas Swaps
NYMEX	27,560,000 MMBTU	$	3.07 / MMBTU
No Cost Collars	43,960,000 MMBTU	$	3.49 / MMBTU (Floor) / $4.65 / MMBTU (Ceiling)
Fixed Price Physical Sales	64,600,416 MMBTU	$	2.43 / MMBTU
Total	136,120,416 MMBTU
Hedging Summary for Fiscal 2026	Volume		Average Hedge Price
Gas Swaps
NYMEX	2,020,000 MMBTU	$	3.09 / MMBTU
No Cost Collars	42,720,000 MMBTU	$	3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales	62,983,519 MMBTU	$	2.37 / MMBTU
Total	107,723,519 MMBTU
Hedging Summary for Fiscal 2027	Volume		Average Hedge Price
No Cost Collars	3,560,000 MMBTU	$	3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales	46,003,865 MMBTU	$	2.39 / MMBTU
Total	49,563,865 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

EXPLORATION AND PRODUCTION INFORMATION

Reserve Quantity Information
(Unaudited)


	Gas MMcf
	U.S.
	Appalachian		West Coast		Total
	Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2021	3,693,148		30,285		3,723,433
Extensions and Discoveries	837,510		—		837,510
Revisions of Previous Estimates	2,882		71		2,953
Production	(341,700	)	(1,211	)	(342,911	)
Sales of Minerals in Place	(21,178	)	(29,145	)	(50,323	)
September 30, 2022	4,170,662		—		4,170,662

Proved Developed Reserves:
September 30, 2021	3,061,178		30,285		3,091,463
September 30, 2022	3,312,568		—		3,312,568


	Oil Mbbl
	U.S.
	Appalachian		West Coast		Total
	Region		Region		Company
Proved Developed and Undeveloped Reserves:
September 30, 2021	11		21,526		21,537
Extensions and Discoveries	—		296		296
Revisions of Previous Estimates	255		532		787
Production	(16	)	(1,588	)	(1,604	)
Sales of Minerals in Place	—		(20,766	)	(20,766	)
September 30, 2022	250		—		250

Proved Developed Reserves:
September 30, 2021	11		20,932		20,943
September 30, 2022	250		—		250


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES



Pipeline & Storage Throughput - (millions of cubic feet - MMcf)

	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
			Increase				Increase
	2022	2021	(Decrease)		2022	2021	(Decrease)
Firm Transportation - Affiliated	16,943	14,916	2,027		111,157	107,206	3,951
Firm Transportation - Non-Affiliated	171,983	168,619	3,364		679,260	663,078	16,182
Interruptible Transportation	3,886	256	3,630		5,612	1,460	4,152
	192,812	183,791	9,021		796,029	771,744	24,285

Gathering Volume - (MMcf)
	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
			Increase				Increase
	2022	2021	(Decrease)		2022	2021	(Decrease)
Gathered Volume	104,707	90,750	13,957		419,332	366,033	53,299


Utility Throughput - (MMcf)
	Three Months Ended				Twelve Months Ended
	September 30,				September 30,
			Increase				Increase
	2022	2021	(Decrease)		2022	2021	(Decrease)
Retail Sales:
Residential Sales	4,146	3,797	349		64,011	61,038	2,973
Commercial Sales	644	535	109		9,621	8,741	880
Industrial Sales	75	33	42		541	475	66
	4,865	4,365	500		74,173	70,254	3,919
Transportation	9,720	10,197	(477	)	65,993	66,012	(19	)
	14,585	14,562	23		140,166	136,266	3,900

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 three and twelve months ended September 30, 2022 and 2021:

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(in thousands except per share amounts)	2022			2021			2022			2021
Reported GAAP Earnings	$	158,143		$	86,962		$	566,021		$	363,647
Items impacting comparability:
Items related to West Coast asset sale:
Gain on sale of West Coast assets (E&P)		—			—			(12,736	)		—
Tax impact of gain on sale of West Coast assets		—			—			3,225			—
Loss from discontinuance of crude oil cash flow hedges (E&P)		—			—			44,632			—
Tax impact of loss from discontinuance of crude oil cash flow hedges		—			—			(11,303	)		—
Transaction and severance costs (E&P)		—			—			9,693			—
Tax impact of transaction and severance costs		—			—			(2,455	)		—
Total items impacting comparability related to West Coast asset sale		—			—			31,056			—

Unrealized (gain) loss on derivative asset (E&P)		4,395			—			4,395			—
Tax impact of unrealized (gain) loss on derivative asset		(1,203	)		—			(1,203	)		—
Reversal of deferred tax valuation allowance		(24,850	)		—			(24,850	)		—
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		(28,406	)		—			(28,406	)		—
Reduction of other post-retirement regulatory liability (Utility)		—			—			(18,533	)		—
Tax impact of reduction of other post-retirement regulatory liability		—			—			3,892			—
Unrealized (gain) loss on other investments (Corporate / All Other)		1,532			395			11,625			(181	)
Tax impact of unrealized (gain) loss on other investments		(322	)		(83	)		(2,441	)		38
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
Tax impact of premium paid on early redemption of debt		—			—			—			(4,321	)
Adjusted Operating Results	$	109,289		$	87,274		$	541,556		$	393,073

Reported GAAP Earnings Per Share	$	1.71		$	0.95		$	6.15		$	3.97
Items impacting comparability:
Items related to West Coast asset sale:
Gain on sale of West Coast assets, net of tax (E&P)		—			—			(0.10	)		—
Loss from discontinuance of crude oil cash flow hedges, net of tax (E&P)		—			—			0.36			—
Transaction and severance costs, net of tax (E&P)		—			—			0.08			—
Total items impacting comparability related to West Coast asset sale		—			—			0.34			—

Unrealized (gain) loss on derivative asset, net of tax (E&P)		0.03			—			0.03			—
Reversal of deferred tax valuation allowance		(0.27	)		—			(0.27	)		—
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction		(0.31	)		—			(0.31	)		—
Reduction of other post-retirement regulatory liability, net of tax (Utility)		—			—			(0.16	)		—
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		0.01			—			0.10			—
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
Rounding		0.02			—			—			—
Adjusted Operating Results Per Share	$	1.19		$	0.95		$	5.88		$	4.29

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES (Continued)

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 twelve months ended September 30, 2022 and 2021:

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(in thousands)	2022			2021			2022			2021
Reported GAAP Earnings	$	158,143		$	86,962		$	566,021		$	363,647
Depreciation, Depletion and Amortization		94,109			83,671			369,790			335,303
Other (Income) Deductions		4,800			160			1,509			15,238
Interest Expense		33,496			30,431			130,357			146,357
Income Taxes		(18,643	)		14,720			116,629			114,682
Impairment of Oil and Gas Producing Properties		—			—			—			76,152
Gain on Sale of Assets		—			—			(12,736	)		(51,066	)
Loss from Discontinuance of Crude Oil Cash Flow Hedges (E&P)		—			—			44,632			—
Transaction and Severance Costs related to West Coast Asset Sale (E&P)		—			—			9,693			—
Adjusted EBITDA	$	271,905		$	215,944		$	1,225,895		$	1,000,313

Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA	$	59,819		$	49,131		$	240,904		$	218,921
Gathering Adjusted EBITDA		43,335			37,858			176,572			159,005
Total Midstream Businesses Adjusted EBITDA		103,154			86,989			417,476			377,926
Exploration and Production Adjusted EBITDA		166,238			120,588			656,310			464,529
Utility Adjusted EBITDA		6,270			11,093			162,871			171,379
Corporate and All Other Adjusted EBITDA		(3,757	)		(2,726	)		(10,762	)		(13,521	)
Total Adjusted EBITDA	$	271,905		$	215,944		$	1,225,895		$	1,000,313

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

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
(in thousands)	2022			2021			2022			2021
Exploration and Production Segment
Reported GAAP Earnings	$	116,077		$	55,703		$	306,064		$	101,916
Depreciation, Depletion and Amortization		52,958			45,135			208,148			182,492
Other (Income) Deductions		3,266			254			3,210			937
Interest Expense		14,474			11,942			53,401			69,662
Income Taxes		(20,537	)		7,554			43,898			33,370
Impairment of Oil and Gas Producing Properties		—			—			—			76,152
Gain on Sale of West Coast Assets		—			—			(12,736	)		—
Loss from Discontinuance of Crude Oil Cash Flow Hedges		—			—			44,632			—
Transaction and Severance Costs related to West Coast Asset Sale		—			—			9,693			—
Adjusted EBITDA	$	166,238		$	120,588		$	656,310		$	464,529

Pipeline and Storage Segment
Reported GAAP Earnings	$	25,320		$	21,482		$	102,557		$	92,542
Depreciation, Depletion and Amortization		17,283			15,626			67,701			62,431
Other (Income) Deductions		(2,257	)		(2,305	)		(6,889	)		(5,840	)
Interest Expense		10,929			9,623			42,492			40,976
Income Taxes		8,544			4,705			35,043			28,812
Adjusted EBITDA	$	59,819		$	49,131		$	240,904		$	218,921

Gathering Segment
Reported GAAP Earnings	$	31,224		$	18,597		$	101,111		$	80,274
Depreciation, Depletion and Amortization		8,656			8,219			33,998			32,350
Other (Income) Deductions		(61	)		62			26			12
Interest Expense		4,105			4,093			16,488			17,493
Income Taxes		(589	)		6,887			24,949			28,876
Adjusted EBITDA	$	43,335		$	37,858		$	176,572		$	159,005

Utility Segment
Reported GAAP Earnings	$	(10,852	)	$	(5,587	)	$	68,948		$	54,335
Depreciation, Depletion and Amortization		15,167			14,646			59,760			57,457
Other (Income) Deductions		63			1,252			(7,117	)		23,785
Interest Expense		7,000			5,337			24,115			21,795
Income Taxes		(5,108	)		(4,555	)		17,165			14,007
Adjusted EBITDA	$	6,270		$	11,093		$	162,871		$	171,379

Corporate and All Other
Reported GAAP Earnings	$	(3,626	)	$	(3,233	)	$	(12,659	)	$	34,580
Depreciation, Depletion and Amortization		45			45			183			573
Other (Income) Deductions		3,789			897			12,279			(3,656	)
Interest Expense		(3,012	)		(564	)		(6,139	)		(3,569	)
Income Taxes		(953	)		129			(4,426	)		9,617
Gain on Sale of Timber Properties		—			—			—			(51,066	)
Adjusted EBITDA	$	(3,757	)	$	(2,726	)	$	(10,762	)	$	(13,521	)

Management defines free cash flow as funds from operations (net cash provided by operating activities less changes in working capital) 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.

Brandon J. Haspett
Investor Relations
716-857-7697

Karen M. Camiolo
Treasurer
716-857-7344

National Fuel Reports Fourth Quarter and Full Year Fiscal 2022 Earnings

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