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Published: 2022-11-04 00:00:00 ET
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Exhibit 99
exhibit998kimagea15.jpg
6363 Main Street/Williamsville, NY 14221
Release Date:Immediate November 3, 2022Brandon 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

WILLIAMSVILLE, N.Y.: 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 52nd 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 120th 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.


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“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 EndedFiscal Year Ended
 September 30, September 30,
(in thousands except per share amounts)2022202120222021
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 
Rounding0.02 — — — 
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
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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)20222021Variance
GAAP Earnings$116,077 $55,703 $60,374 
Unrealized (gain) loss on derivative asset, net of tax3,192 — 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.

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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)20222021Variance
GAAP Earnings$25,320 $21,482 $3,838 
Adjusted EBITDA$59,819 $49,131 $10,688 


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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)20222021Variance
GAAP Earnings$31,224 $18,597 $12,627 
Reversal of deferred tax valuation allowance3,739 — 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)20222021Variance
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
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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.

Analyst Contact:Brandon J. Haspett716-857-7697
Media Contact:Karen L. Merkel716-857-7654
Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; 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,
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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.
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NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2023. 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 GuidanceUpdated 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 $3.55 /MMBtu
    Production (Bcfe)370 to 390370 to 390
    E&P Operating Costs ($/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












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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2022
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*
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 investments395 395 
Tax impact of unrealized (gain) loss on other investments
(83)(83)
Fourth quarter 2021 adjusted operating results55,703 21,482 18,597 (5,587)(2,921)87,274 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production21,670 21,670 
Higher (lower) crude oil production(25,805)(25,805)
Higher (lower) realized natural gas prices, after hedging32,485 32,485 
Midstream Revenues
Higher (lower) operating revenues10,052 5,330 15,382 
Downstream Margins***
Impact of usage and weather507 507 
Impact of new rates(465)(465)
Regulatory revenue adjustments1,108 1,108 
Operating Expenses
Lower (higher) lease operating and transportation expenses4,201 4,201 
Lower (higher) operating expenses2,410 (1,694)(1,003)(4,960)(762)(6,009)
Lower (higher) property, franchise and other taxes653 653 
Lower (higher) depreciation / depletion(6,180)(1,309)(7,489)
Other Income (Expense)
(Higher) lower other deductions1,093 939 (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 / rounding449 (335)(258)(411)(53)(608)
Fourth quarter 2022 adjusted operating results74,528 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 asset1,203 1,203 
Reversal of deferred tax valuation allowance28,589 (3,739)24,850 
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction16,152 11,856 39828,406 
Unrealized gain (loss) on other investments(1,532)(1,532)
Tax impact of unrealized gain (loss) on other investments322 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.



Page 10.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2022
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
ProductionStorageGatheringUtilityAll OtherConsolidated*
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 share0.61 0.23 0.20 (0.06)(0.03)0.95 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production0.24 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 revenues0.11 0.06 0.17 
Downstream Margins***
Impact of usage and weather0.01 0.01 
Impact of new rates(0.01)(0.01)
Regulatory revenue adjustments0.01 0.01 
Operating Expenses
Lower (higher) lease operating and transportation expenses
0.05 0.05 
Lower (higher) operating expenses0.03 (0.02)(0.01)(0.05)(0.01)(0.06)
Lower (higher) property, franchise and other taxes0.01 0.01 
Lower (higher) depreciation / depletion(0.07)(0.01)(0.08)
Other Income (Expense)
(Higher) lower other deductions0.01 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 share0.81 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 allowance0.31 (0.04)0.27 
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction0.18 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.











Page 11.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2022
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*
Fiscal 2021 GAAP earnings$101,916 $92,542 $80,274 $54,335 $34,580 $363,647 
Items impacting comparability:
Impairment of oil and gas properties76,152 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 properties14,069 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 results167,798 92,542 80,958 54,335 (2,560)393,073 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production51,264 51,264 
Higher (lower) crude oil production(28,169)(28,169)
Higher (lower) realized natural gas prices, after hedging126,330 126,330 
Higher (lower) realized crude oil prices, after hedging18,071 18,071 
Higher (lower) other operating revenues5,037 5,037 
Midstream Revenues
Higher (lower) operating revenues25,738 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 revenues3,585 3,585 
Higher (lower) energy marketing margins1,287 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 deductions1,676 9,767 (3,262)8,181 
(Higher) lower interest expense1,176 (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 / rounding2 288 50 249 206 795 
Fiscal 2022 adjusted operating results295,571 102,557 92,994 54,307 (3,873)541,556 
Items impacting comparability:
Reduction of other post-retirement regulatory liability18,533 18,533 
Tax impact of reduction of other post-retirement regulatory liability(3,892)(3,892)
Gain on sale of West Coast assets12,736 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 hedges11,303 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 sale2,455 2,455 
Unrealized gain (loss) on derivative asset(4,395)(4,395)
Tax impact of unrealized gain (loss) on derivative asset1,203 1,203 
Reversal of deferred tax valuation allowance28,589 (3,739)24,850 
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction16,152 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.


Page 12.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2022
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
ProductionStorageGatheringUtilityAll OtherConsolidated*
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 tax0.60 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 share1.83 1.01 0.88 0.59 (0.02)4.29 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production0.56 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 hedging0.20 0.20 
Higher (lower) other operating revenues0.05 0.05 
Midstream Revenues
Higher (lower) operating revenues0.28 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 revenues0.04 0.04 
Higher (lower) energy marketing margins0.01 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 deductions0.02 0.11 (0.04)0.09 
(Higher) lower interest expense0.01 (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 share3.21 1.11 1.01 0.59 (0.04)5.88 
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax0.160.16 
Gain on sale of West Coast assets, net of tax0.10 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 allowance0.31 (0.04)0.27 
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction0.18 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.


Page 13.

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 OPERATIONS2022202120222021
Operating Revenues:
Utility and Energy Marketing Revenues$112,252 $80,302 $897,916 $667,549 
Exploration and Production and Other Revenues252,035 215,664 1,010,629 837,597 
Pipeline and Storage and Gathering Revenues70,859 60,022 277,501 237,513 
435,146 355,988 2,186,046 1,742,659 
Operating Expenses:
Purchased Gas22,925 (5,190)392,093 171,827 
Operation and Maintenance:
      Utility and Energy Marketing46,535 40,026 193,058 179,547 
      Exploration and Production and Other31,554 46,007 191,572 173,041 
      Pipeline and Storage and Gathering39,138 35,747 136,571 123,218 
Property, Franchise and Other Taxes23,089 23,454 101,182 94,713 
Depreciation, Depletion and Amortization94,109 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 Income177,796 132,273 814,516 639,924 
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 Taxes139,500 101,682 682,650 478,329 
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 Calculation91,476,53591,181,29291,410,62591,130,941
Used in Diluted Calculation92,218,58191,851,44392,107,06691,684,583









Page 14.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,September 30,
(Thousands of Dollars)20222021
ASSETS
Property, Plant and Equipment$12,551,909 $13,103,639 
Less - Accumulated Depreciation, Depletion and Amortization5,985,432 6,719,356 
Net Property, Plant and Equipment
6,566,477 6,384,283 
Current Assets:
Cash and Temporary Cash Investments46,048 31,528 
Hedging Collateral Deposits91,670 88,610 
Receivables - Net361,626 205,294 
Unbilled Revenue30,075 17,000 
Gas Stored Underground32,364 33,669 
Materials, Supplies and Emission Allowances40,637 53,560 
Unrecovered Purchased Gas Costs99,342 33,128 
Other Current Assets59,369 59,660 
Total Current Assets
761,131 522,449 
Other Assets:
Recoverable Future Taxes106,247 121,992 
Unamortized Debt Expense8,884 10,589 
Other Regulatory Assets67,101 60,145 
Deferred Charges77,472 59,939 
Other Investments95,025 149,632 
Goodwill5,476 5,476 
Prepaid Pension and Post-Retirement Benefit Costs196,597 149,151 
Fair Value of Derivative Financial Instruments9,175 — 
Other2,677 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 Capital1,027,066 1,017,446 
Earnings Reinvested in the Business1,587,085 1,191,175 
Accumulated Other Comprehensive Loss(625,733)(513,597)
Total Comprehensive Shareholders' Equity2,079,896 1,786,206 
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs2,083,409 2,628,687 
Total Capitalization
4,163,305 4,414,893 
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper60,000 158,500 
Current Portion of Long-Term Debt549,000 — 
Accounts Payable178,945 171,655 
Amounts Payable to Customers419 21 
Dividends Payable43,452 41,487 
Interest Payable on Long-Term Debt17,376 17,376 
Customer Advances26,108 17,223 
Customer Security Deposits24,283 19,292 
Other Accruals and Current Liabilities257,327 194,169 
Fair Value of Derivative Financial Instruments785,659 616,410 
Total Current and Accrued Liabilities
1,942,569 1,236,133 
Other Liabilities:
Deferred Income Taxes698,229 660,420 
Taxes Refundable to Customers362,098 354,089 
Cost of Removal Regulatory Liability259,947 245,636 
Other Regulatory Liabilities188,803 200,643 
Pension and Other Post-Retirement Liabilities3,065 7,526 
Asset Retirement Obligations161,545 209,639 
Other Liabilities116,701 135,846 
Total Other Liabilities1,790,388 1,813,799 
Commitments and Contingencies— — 
Total Capitalization and Liabilities$7,896,262 $7,464,825 



Page 15.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended
September 30,
(Thousands of Dollars)20222021
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 Amortization369,790 335,303 
Deferred Income Taxes104,415 105,993 
Premium Paid on Early Redemption of Debt— 15,715 
Stock-Based Compensation19,506 17,065 
Reduction of Other Post-Retirement Regulatory Liability(18,533)— 
Other31,983 10,896 
Change in:  
Receivables and Unbilled Revenue(168,769)(61,413)
Gas Stored Underground and Materials, Supplies and Emission Allowances3,109 (2,014)
Unrecovered Purchased Gas Costs(66,214)(33,128)
Other Current Assets291 (11,972)
Accounts Payable11,907 31,352 
Amounts Payable to Customers398 (10,767)
Customer Advances8,885 1,904 
Customer Security Deposits4,991 2,093 
Other Accruals and Current Liabilities34,260 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)$(751,734)
Net Proceeds from Sale of Oil and Gas Producing Properties254,439 — 
Net Proceeds from Sale of Timber Properties— 104,582 
Sale of Fixed Income Mutual Fund Shares in Grantor Trust30,000 — 
Other8,683 13,935 
Net Cash Used in Investing Activities$(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 Cash17,580 99,597 
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period120,138 20,541 
Cash, Cash Equivalents, and Restricted Cash at September 30$137,718 $120,138 









Page 16.




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 SEGMENT20222021Variance20222021Variance
Total Operating Revenues$252,035 $215,581 $36,454 $1,010,464 $836,697 $173,767 
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense15,664 16,957 (1,293)79,061 67,973 11,088 
Lease Operating and Transportation Expense62,701 68,019 (5,318)283,914 267,316 16,598 
All Other Operation and Maintenance Expense1,957 3,715 (1,758)20,140 14,659 5,481 
Property, Franchise and Other Taxes5,475 6,302 (827)25,364 22,220 3,144 
Depreciation, Depletion and Amortization52,958 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 Income113,280 75,45337,827 406,573 205,885200,688 
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 Taxes95,540 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 












Page 17.

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 SEGMENT20222021Variance20222021Variance
Revenues from External Customers$68,836 $58,515 $10,321 $265,415 $234,397 $31,018 
Intersegment Revenues28,913 26,510 2,403 111,629 109,160 2,469 
Total Operating Revenues97,749 85,025 12,724 377,044 343,557 33,487 
Operating Expenses:
Purchased Gas592 764 (172)1,890 983 907 
Operation and Maintenance28,868 26,724 2,144 100,117 90,533 9,584 
Property, Franchise and Other Taxes8,470 8,406 64 34,133 33,120 1,013 
Depreciation, Depletion and Amortization17,283 15,626 1,657 67,701 62,431 5,270 
55,213 51,520 3,693 203,841 187,067 16,774 
Operating Income42,536 33,505 9,031 173,203 156,490 16,713 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit767 125 642 3,069 501 2,568 
Interest and Other Income1,490 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 Taxes33,864 26,187 7,677 137,600 121,354 16,246 
Income Tax Expense8,544 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 SEGMENT20222021Variance20222021Variance
Revenues from External Customers$2,023 $1,507 $516 $12,086 $3,116 $8,970 
Intersegment Revenues52,061 45,830 6,231 202,757 190,148 12,609 
Total Operating Revenues54,084 47,337 6,747 214,843 193,264 21,579 
Operating Expenses:
Operation and Maintenance10,725 9,456 1,269 38,234 34,207 4,027 
Property, Franchise and Other Taxes24 23 1 37 52 (15)
Depreciation, Depletion and Amortization8,656 8,219 437 33,998 32,350 1,648 
19,405 17,698 1,707 72,269 66,609 5,660 
Operating Income34,679 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 Income117 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 Taxes30,635 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 


Page 18.

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 SEGMENT20222021Variance20222021Variance
Revenues from External Customers$112,252 $80,302 $31,950 $897,916 $666,920 $230,996 
Intersegment Revenues60 60 — 305 331 (26)
Total Operating Revenues112,312 80,362 31,950 898,221 667,251 230,970 
Operating Expenses:
Purchased Gas49,692 19,826 29,866 497,959 274,837 223,122 
Operation and Maintenance47,369 40,855 6,514 196,254 182,266 13,988 
Property, Franchise and Other Taxes8,981 8,588 393 41,137 38,769 2,368 
Depreciation, Depletion and Amortization15,167 14,646 521 59,760 57,457 2,303 
121,209 83,915 37,294 795,110 553,329 241,781 
Operating Income (Loss)(8,897)(3,553)(5,344)103,111 113,922 (10,811)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit(492)(1,985)1,493 5,526 (26,659)32,185 
Interest and Other Income429 733 (304)1,591 2,874 (1,283)
Interest Expense(7,000)(5,337)(1,663)(24,115)(21,795)(2,320)
Income (Loss) Before Income Taxes(15,960)(10,142)(5,818)86,113 68,342 17,771 
Income Tax Expense (Benefit)(5,108)(4,555)(553)17,165 14,007 3,158 
Net Income (Loss)$(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 




























Page 19.

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 OTHER20222021Variance20222021Variance
Revenues from External Customers$— $— $— $— $1,173 $(1,173)
Intersegment Revenues— 26 (26)6 49 (43)
Total Operating Revenues— 26 (26)6 1,222 (1,216)
Operating Expenses:
Purchased Gas— 9 (9)6 2,306 (2,300)
Operation and Maintenance— (20)20 5 682 (677)
Property, Franchise and Other Taxes— — — — 47 (47)
Depreciation, Depletion and Amortization— — — — 394 (394)
— (11)11 11 3,429 (3,418)
Gain on Sale of Assets— — — — 51,066 (51,066)
Operating Income (Loss)— 37 (37)(5)48,859 (48,864)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs— — — — (7)7 
Interest and Other Income1 2 (1)3 231 (228)
Interest Expense(4)— (4)(4)— (4)
Income (Loss) before Income Taxes(3)39 (42)(6)49,083 (49,089)
Income Tax Expense (Benefit)(1)10 (11)3 11,438 (11,435)
Net Income (Loss)$(2)$29 $(31)$(9)$37,645 $(37,654)
Net Income (Loss) Per Share (Diluted)$— $— $— $— $0.41 $(0.41)
Three Months Ended Twelve Months Ended
September 30,September 30,
CORPORATE20222021Variance20222021Variance
Revenues from External Customers$— $83 $(83)$165 $356 $(191)
Intersegment Revenues1,183 1,146 37 4,430 3,864 566 
Total Operating Revenues1,183 1,229 (46)4,595 4,220 375 
Operating Expenses:
Operation and Maintenance4,801 3,857 944 14,841 15,423 (582)
Property, Franchise and Other Taxes139 135 4 511 505 6 
Depreciation, Depletion and Amortization45 45 — 183 179 4 
4,985 4,037 948 15,535 16,107 (572)
Operating Loss(3,802)(2,808)(994)(10,940)(11,887)947 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs(1,017)(923)(94)(4,069)(3,692)(377)
Interest and Other Income33,712 31,154 2,558 126,648 138,882 (12,234)
Interest Expense on Long-Term Debt(30,207)(30,161)(46)(120,507)(125,373)4,866 
Other Interest Expense(3,262)(405)(2,857)(8,211)(2,816)(5,395)
Loss before Income Taxes(4,576)(3,143)(1,433)(17,079)(4,886)(12,193)
Income Tax Expense (Benefit)(952)119 (1,071)(4,429)(1,821)(2,608)
Net Loss$(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)$(0.10)
Three Months Ended Twelve Months Ended
September 30,September 30,
INTERSEGMENT ELIMINATIONS20222021Variance20222021Variance
Intersegment Revenues$(82,217)$(73,572)$(8,645)$(319,127)$(303,552)$(15,575)
Operating Expenses:
Purchased Gas(27,359)(25,789)(1,570)(107,762)(106,299)(1,463)
Operation and Maintenance(54,858)(47,783)(7,075)(211,365)(197,253)(14,112)
(82,217)(73,572)(8,645)(319,127)(303,552)(15,575)
Operating Income— — — — — — 
Other Income (Expense):
Interest and Other Deductions(36,485)(31,130)(5,355)(134,861)(131,758)(3,103)
Interest Expense36,485 31,130 5,355 134,861 131,758 3,103 
Net Income$— $— $— $— $— $— 
Net Income Per Share (Diluted)$— $— $— $— $— $— 



Page 20.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
Three Months Ended Twelve Months Ended
September 30,September 30,
(Unaudited)(Unaudited)
IncreaseIncrease
20222021(Decrease)20222021(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 Storage37,563 
(1)
96,760 
(2)
(59,197)95,806 
(1)(2)
252,316 
(2)(3)
(156,510)
Gathering26,957 
(1)
9,041 
(2)
17,916 55,546 
(1)(2)
34,669 
(2)(3)
20,877 
Utility40,061 
(1)
34,154 
(2)
5,907 111,033 
(1)(2)
100,845 
(2)(3)
10,188 
Total Reportable Segments264,637 257,601 7,036 828,176 769,238 58,938 
All Other— — — — — — 
Corporate549 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,Normal20222021
  Normal (1)
Last Year (1)
Buffalo, NY16210738(34.0)181.6 
Erie, PA1249433(24.2)184.8 
Twelve Months Ended September 30,
Buffalo, NY6,6175,7695,731(12.8)0.7 
Erie, PA6,1475,3685,221(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.



Page 21.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20222021(Decrease)20222021(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia87,858 75,871 11,987 341,700 312,300 29,400 
West Coast1 420 (419)1,211 1,720 (509)
Total Production87,859 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 CoastN/M7.93 N/M 10.03 6.34 3.69 
Weighted Average6.16 3.16 3.00 5.05 2.49 2.56 
Weighted Average after Hedging2.84 2.37 0.47 2.71 2.25 0.46 
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia7 1 6 16 2 14 
West Coast— 551 (551)1,588 2,233 (645)
Total Production7 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 CoastN/M71.46 N/M94.06 60.50 33.56 
Weighted Average90.93 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.






Page 22.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Fiscal 2023VolumeAverage Hedge Price
Gas Swaps
NYMEX116,200,000 MMBTU$2.79 / MMBTU
No Cost Collars70,400,000 MMBTU$3.11 / MMBTU (Floor) / $3.64 / MMBTU (Ceiling)
Fixed Price Physical Sales73,283,422 MMBTU$2.44 / MMBTU
Total259,883,422 MMBTU
Hedging Summary for Fiscal 2024VolumeAverage Hedge Price
Gas Swaps
NYMEX67,680,000 MMBTU$2.98 / MMBTU
No Cost Collars59,200,000 MMBTU$3.20 / MMBTU (Floor) / $3.78 / MMBTU (Ceiling)
Fixed Price Physical Sales66,115,483 MMBTU$2.39 / MMBTU
Total192,995,483 MMBTU
Hedging Summary for Fiscal 2025VolumeAverage Hedge Price
Gas Swaps
NYMEX27,560,000 MMBTU$3.07 / MMBTU
No Cost Collars43,960,000 MMBTU$3.49 / MMBTU (Floor) / $4.65 / MMBTU (Ceiling)
Fixed Price Physical Sales64,600,416 MMBTU$2.43 / MMBTU
Total136,120,416 MMBTU
Hedging Summary for Fiscal 2026VolumeAverage Hedge Price
Gas Swaps
NYMEX2,020,000 MMBTU$3.09 / MMBTU
No Cost Collars42,720,000 MMBTU$3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales62,983,519 MMBTU$2.37 / MMBTU
Total107,723,519 MMBTU
Hedging Summary for Fiscal 2027VolumeAverage Hedge Price
No Cost Collars3,560,000 MMBTU$3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales46,003,865 MMBTU$2.39 / MMBTU
Total49,563,865 MMBTU
Hedging Summary for Fiscal 2028VolumeAverage Hedge Price
Fixed Price Physical Sales11,850,451 MMBTU$2.48 / MMBTU
Hedging Summary for Fiscal 2029VolumeAverage Hedge Price
Fixed Price Physical Sales766,673 MMBTU$2.54 / MMBTU


Page 23.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Reserve Quantity Information
(Unaudited)
Gas MMcf
U.S.
AppalachianWest CoastTotal
RegionRegionCompany
Proved Developed and Undeveloped Reserves:
September 30, 20213,693,148 30,285 3,723,433 
Extensions and Discoveries837,510 — 837,510 
Revisions of Previous Estimates2,882 71 2,953 
Production(341,700)(1,211)(342,911)
Sales of Minerals in Place(21,178)(29,145)(50,323)
September 30, 20224,170,662 — 4,170,662 
Proved Developed Reserves:
September 30, 20213,061,178 30,285 3,091,463 
September 30, 20223,312,568 — 3,312,568 
Oil Mbbl
U.S.
AppalachianWest CoastTotal
RegionRegionCompany
Proved Developed and Undeveloped Reserves:
September 30, 202111 21,526 21,537 
Extensions and Discoveries— 296 296 
Revisions of Previous Estimates255 532 787 
Production(16)(1,588)(1,604)
Sales of Minerals in Place— (20,766)(20,766)
September 30, 2022250 — 250 
Proved Developed Reserves:
September 30, 202111 20,932 20,943 
September 30, 2022250 — 250 


Page 24.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20222021(Decrease)20222021(Decrease)
Firm Transportation - Affiliated16,943 14,916 2,027 111,157 107,206 3,951 
Firm Transportation - Non-Affiliated171,983 168,619 3,364 679,260 663,078 16,182 
Interruptible Transportation3,886 256 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,
IncreaseIncrease
20222021(Decrease)20222021(Decrease)
Gathered Volume104,707 90,750 13,957 419,332 366,033 53,299 
Utility Throughput - (MMcf)
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20222021(Decrease)20222021(Decrease)
Retail Sales:
Residential Sales4,146 3,797 349 64,011 61,038 2,973 
Commercial Sales644 535 109 9,621 8,741 880 
Industrial Sales75 33 42 541 475 66 
4,865 4,365 500 74,173 70,254 3,919 
Transportation9,720 10,197 (477)65,993 66,012 (19)
14,585 14,562 23 140,166 136,266 3,900 























Page 25.

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)2022202120222021
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 
Rounding0.02 — — — 
Adjusted Operating Results Per Share$1.19 $0.95 $5.88 $4.29 





Page 26.

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)2022202120222021
Reported GAAP Earnings$158,143 $86,962 $566,021 $363,647 
Depreciation, Depletion and Amortization94,109 83,671 369,790 335,303 
Other (Income) Deductions4,800 160 1,509 15,238 
Interest Expense33,496 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 EBITDA43,335 37,858 176,572 159,005 
Total Midstream Businesses Adjusted EBITDA103,154 86,989 417,476 377,926 
Exploration and Production Adjusted EBITDA166,238 120,588 656,310 464,529 
Utility Adjusted EBITDA6,270 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 





























Page 27.

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)2022202120222021
Exploration and Production Segment
Reported GAAP Earnings$116,077 $55,703 $306,064 $101,916 
Depreciation, Depletion and Amortization52,958 45,135 208,148 182,492 
Other (Income) Deductions3,266 254 3,210 937 
Interest Expense14,474 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 Amortization17,283 15,626 67,701 62,431 
Other (Income) Deductions(2,257)(2,305)(6,889)(5,840)
Interest Expense10,929 9,623 42,492 40,976 
Income Taxes8,544 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 Amortization8,656 8,219 33,998 32,350 
Other (Income) Deductions(61)62 26 12 
Interest Expense4,105 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 Amortization15,167 14,646 59,760 57,457 
Other (Income) Deductions63 1,252 (7,117)23,785 
Interest Expense7,000 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)$34,580 
Depreciation, Depletion and Amortization45 45 183 573 
Other (Income) Deductions3,789 897 12,279 (3,656)
Interest Expense(3,012)(564)(6,139)(3,569)
Income Taxes(953)129 (4,426)9,617 
Gain on Sale of Timber Properties— — — (51,066)
Adjusted EBITDA$(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.