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Press Release: National Fuel Reports First -4-

· 02/04/2021 16:45
NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS QUARTER ENDED DECEMBER 31, 2020 (Unaudited) Upstream Midstream Downstream ------------- --------------------- ------------ Pipeline Exploration & & Corporate / (Thousands of Dollars) Production Storage Gathering Utility All Other Consolidated* ------------- -------- ----------- ------------ ----------- ----------------- First quarter 2020 GAAP earnings $ 23,977 $18,105 $ 15,944 $ 26,583 $ 1,982 $ 86,591 Items impacting comparability: Unrealized (gain) loss on other investments 1,019 1,019 Tax impact of unrealized (gain) loss on other investments (214) (214) First quarter 2020 adjusted operating results 23,977 18,105 15,944 26,583 2,787 87,396 Drivers of adjusted operating results** Upstream Revenues Higher (lower) natural gas production 39,164 39,164 Higher (lower) crude oil production (1,885) (1,885) Higher (lower) realized natural gas prices, after hedging (11,301) (11,301) Higher (lower) realized crude oil prices, after hedging (5,791) (5,791) Midstream Revenues Higher (lower) operating revenues 12,280 9,655 21,935 Downstream Margins*** Impact of usage and weather (1,164) (1,164) System modernization tracker revenues 920 920 Higher (lower) energy marketing margins (2,340) (2,340) Operating Expenses Lower (higher) lease operating and transportation expenses (11,677) (11,677) Lower (higher) operating expenses (1,806) (1,470) (1,956) 777 (4,455) Lower (higher) depreciation / depletion (935) (3,052) (2,185) (6,172) Other Income (Expense) (Higher) lower other deductions (510) 1,213 703 (Higher) lower interest expense (1,132) (2,859) (1,510) (346) (5,847) Income Taxes Lower (higher) income tax expense / effective tax rate (3,163) 301 (18) (1,358) 2,306 (1,932) All other / rounding 98 (82) 134 12 (741) (579) ------------ ------- ---------- ----------- ---------- ------------- First quarter 2021 adjusted operating results 25,549 24,183 20,550 23,037 3,656 96,975 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) Unrealized gain (loss) on other investments (1,298) (1,298) Tax impact of unrealized gain (loss) on other investments 272 272 ------------- -------- ----------- ------------ ---------- ------------- First quarter 2021 GAAP earnings $ (29,623) $24,183 $ 20,550 $ 23,037 $ 39,627 $ 77,774 ======== ====== ====== ======= ====== === ======== * Amounts do not reflect intercompany eliminations ** Drivers of 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 DECEMBER 31, 2020 (Unaudited) Upstream Midstream Downstream ------------- ----------------------- ------------ Exploration & Pipeline & Corporate / Production Storage Gathering Utility All Other Consolidated* ------------- ---------- ----------- ------------ ----------- ----------------- First quarter 2020 GAAP earnings per share $ 0.28 $ 0.21 $ 0.18 $ 0.31 $ 0.02 $ 1.00 Items impacting comparability: Unrealized (gain) loss on other investments, net of tax 0.01 0.01 First quarter 2020 adjusted operating results per share 0.28 0.21 0.18 0.31 0.03 1.01 Drivers of adjusted operating results** Upstream Revenues Higher (lower) natural gas production 0.43 0.43 Higher (lower) crude oil production (0.02) (0.02) Higher (lower) realized natural gas prices, after hedging (0.12) (0.12) Higher (lower) realized crude oil prices, after hedging (0.06) (0.06) Midstream Revenues Higher (lower) operating revenues 0.13 0.11 0.24 Downstream Margins*** Impact of usage and weather (0.01) (0.01) System modernization tracker revenues 0.01 0.01 Higher (lower) energy marketing margins (0.03) (0.03) Operating Expenses Lower (higher) lease operating and transportation expenses (0.13) (0.13) Lower (higher) operating expenses (0.02) (0.02) (0.02) 0.01 (0.05) Lower (higher) depreciation / depletion (0.01) (0.03) (0.02) (0.06) Other Income (Expense) (Higher) lower otherExploration and Production $350 - $390 $350 - $390 Pipeline and Storage $250 - $300 $250 - $300 Gathering $30 - $40 $30 - $40 Utility $90 - $100 $90 - $100 ------------------------ ------------------------ Consolidated Capital Expenditures $720 - $830 $720 - $830 Exploration & Production Segment Guidance* Commodity Price Assumptions NYMEX natural gas price $2.75 /MMBtu $3.00 /MMBtu Appalachian basin spot price (winter I $2.25 /MMBtu | $2.05 $2.50 /MMBtu | $2.10 summer) /MMBtu /MMBtu NYMEX (WTI) crude oil price $52.50 /Bbl $37.50 /Bbl California oil price premium (% of WTI) 96% 94% Production (Bcfe) East Division - Appalachia 295 to 320 290 to 320 West Division - California 15 15 ------------------------ ------------------------ Total Production 310 to 335 305 to 335 E&P Operating Costs ($/Mcfe) LOE $0.83 - $0.85 $0.83 - $0.86 G&A $0.20 - $0.22 $0.21 - $0.23 DD&A $0.58 - $0.62 $0.60 - $0.65 Other Business Segment Guidance (Millions) Gathering Segment Revenues $185 - $200 $185 - $200 Pipeline and Storage Segment Revenues $330 - $340 $330 - $340

* Commodity price assumptions are for the remaining 9 months of the fiscal year.

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February 04, 2021 16:45 ET (21:45 GMT)