National Fuel Company 8-K

EXHIBIT 99


		Financial News
		6363 Main Street/Williamsville, NY 14221

		James C. Welch
		Investor Relations
		716-857-6987
Release Date: Immediate May 1, 2008
		Ronald J. Tanski
		Treasurer
		716-857-6981

NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS

Williamsville, New York: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced record earnings for the second quarter of fiscal 2008 and for the six-months ended March 31, 2008.

HIGHLIGHTS

•		Reported GAAP earnings for the second quarter increased over 21% to $95.0 million or $1.11 per share, an increase of $16.6 million, or $0.19 per share. Increased earnings in the Exploration and Production segment provided the bulk of the increase. Higher average commodity prices realized and increased natural gas production were the main drivers of the higher earnings.

•		Quarterly operating results before items impacting comparability were $94.4 million or $1.10 per share, an increase of $21.3 million, or $0.24 per share, from the prior year’s second quarter. Operating results increased in all segments from the prior year’s second quarter.

•		The Company is increasing and narrowing its GAAP earnings guidance for fiscal 2008 earnings to a range of $2.90 to $3.00 per share. It had previously been in the range of $2.60 to $2.80 per share.

•		A conference call is scheduled for Friday, May 2, 2008 at 11:00 a.m. Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chief Executive Officer and President of National Fuel Gas Company stated: “This was another solid quarter for the Company. Our GAAP earnings of $1.11 per share and our operating results of $1.10 per share are the highest achieved in the second quarter in our history. While these record earnings were driven in large part by increased production and higher average commodity prices that were realized in our Exploration and Production segment, operating results were up in all segments.”

“We recognize, however, that the higher prices for all energy sources will have a negative impact on the customers of our Utility segment. We are pleased to be in a position to offer our New York customers the benefits of our Conservation Incentive Program that was implemented during our most recent rate proceeding. With projected energy costs to remain high during the

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next heating season, it is important for our utility customers to take steps now to conserve during next winter.”

“We are also pleased to report continued progress toward achieving an in-service date of November 2008 for the Empire Connector pipeline. It is our intent to continue to grow this important segment of our regulated business to enhance the stable and consistent base of earnings that these assets provide.”

“In our other growth segment, Exploration and Production, we are increasing our capital spending, particularly in Appalachia, where we will continue to accelerate our conventional upper Devonian drilling program and, additionally, devote increased capital to extract the potential of the Marcellus Shale.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended March 31, 2008, of $95.0 million, an increase of $16.6 million, or $0.19 per share, from the prior year’s second quarter of $78.4 million or $0.92 per share (note: all references to earnings per share are to diluted earnings per share, all amounts are stated in U.S. dollars and all amounts used in the earnings and operating results discussions are after tax unless otherwise noted).

Consolidated earnings for the six months ended March 31, 2008, of $165.6 million, or $1.93 per share, increased $32.6 million, or $0.36 per share, from the same period in the prior year, where earnings were $133.0 million, or $1.57 per share.


	Three Months						Six Months
	Ended March 31,						Ended March 31,
(in thousands except per share amounts)	2008			2007			2008			2007
Reported GAAP earnings	$	95,004		$	78,447		$	165,608		$	132,967
Items impacting comparability¹:
Income from discontinued operations					(2,967	)					(6,799	)
Gain on sale of turbine		(586	)					(586	)
Resolution of purchased gas contingency					(2,344	)					(2,344	)
Discontinuation of hedge accounting											(1,888	)


Operating results	$	94,418		$	73,136		$	165,022		$	121,936


Reported GAAP earnings per share	$	1.11		$	0.92		$	1.93		$	1.57
Items impacting comparability¹:

Income from discontinued operations					(0.03	)					(0.08	)
Gain on sale of turbine		(0.01	)					(0.01	)
Resolution of purchased gas contingency					(0.03	)					(0.03	)
Discontinuation of hedge accounting											(0.02	)


Earnings excluding these items	$	1.10		$	0.86		$	1.92		$	1.44


¹		See discussion of these individual items below.

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As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s operating results when comparing the quarter and six months ended March 31, 2008, to the comparable periods in fiscal 2007. Excluding these items, operating results for the current second quarter of $94.4 million, or $1.10 per share, increased $21.3 million, or $0.24 per share. Excluding these items, operating results for the six months ended March 31, 2008 of $165.0 million, or $1.92 per share, increased $43.1 million, or $0.48 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

(The following discussion of earnings for each segment is summarized in a tabular form at pages 10 through 13 of this report. It may be helpful to refer to those tables while reviewing this discussion.)

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and purchases natural gas and oil reserves in California, in the Appalachian region, and in the Gulf Coast regions of Texas, Louisiana and Alabama. Seneca previously had Canadian Exploration and Production operations, which it sold on August 31, 2007. As a result of that sale, the Company has presented the Canadian operations as discontinued operations.

The Exploration and Production segment’s earnings in the second quarter of fiscal 2008 of $34.6 million, or $0.40 per share, increased $14.8 million, or $0.17 per share, when compared with the prior year’s second quarter. Excluding earnings from discontinued operations discussed below, operating results in the Exploration and Production segment increased $17.7 million, or $0.20 per share, for the second quarter of fiscal 2008. The increase was primarily due to higher crude oil and natural gas prices realized after hedging and was also impacted by higher production. For the quarter ended March 31, 2008, the weighted average oil price received by Seneca (after hedging) was $78.54 per barrel (“Bbl”), an increase of $30.59 per Bbl, or 63.8 percent, from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2008, was $9.21 per thousand cubic feet (“Mcf”), an increase of $1.98 per Mcf, or 27.4 percent.

Overall production for the quarter was 10.4 billion cubic feet equivalent (“Bcfe”), an increase of 0.4 Bcfe compared to the prior year’s quarter. A 13.1 percent increase in natural gas production more than offset a drop in crude oil production. The increase in natural gas production occurred mostly in the Appalachian region, where production was up 0.5 billion cubic feet, or 37 percent, over the prior year’s quarter as a result of Seneca’s continued development of its Upper Devonian acreage position. The decrease in crude oil production occurred mostly in the Gulf Division and was attributable to the natural decline curve of Seneca’s properties.

Other items impacting operating results for the quarter were higher depletion expense, lease operating expenses (“LOE”), general and administrative expenses and mark-to-market

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adjustments to recognize hedge ineffectiveness on certain derivative financial instruments used to hedge prices on Seneca’s oil and gas production. The increase in depletion expense was caused by a $0.27 increase in the per unit depletion rate, which was mainly due to the reduction in proved reserves in California, primarily in the Midway Sunset field at the end of fiscal 2007. That reduction resulted from an audit by Netherland, Sewell & Associates which determined that reduced performance from certain wells in the field supported a reduction in proved reserves. The increase in LOE is due to the High Island 24L well that began production in October 2007, higher steaming costs in California, and an increase in the number of producing properties in Appalachia, where approximately 20 wells are being added each month.

The Exploration and Production segment’s earnings of $68.6 million, or $0.80 per share, for the six months ended March 31, 2008, increased $28.1 million, or $0.32 per share, when compared with the six months ended March 31, 2007. Excluding earnings from discontinued operations, operating results for the six months ended March 31, 2008, increased $34.9 million, or $0.40 per share, from the prior year. The increase was primarily due to higher crude oil and natural gas prices realized after hedging and was also significantly impacted by higher production. For the six months ended March 31, 2008, the weighted average oil price received by Seneca (after hedging) was $75.44 per Bbl, an increase of $29.58 per Bbl, or 64.5 percent, from the prior year’s six month period. The weighted average natural gas price received by Seneca (after hedging) for the six months ended March 31, 2008, was $8.55 per Mcfe, an increase of $1.38, or 19.2 percent. Overall production for the six months ended March 31, 2008, was 21.1 Bcfe, an increase of 1.1 Bcfe, compared to the prior year’s six month period. An increase in natural gas production more than offset a decline in crude oil production. Higher interest income and lower interest expense during the current six month period also contributed to the increase in operating results.

Other items impacting operating results for the six months ended March 31, 2008, were higher depletion expense, LOE, general and administrative expenses, state income taxes and mark-to-market adjustments to recognize hedge ineffectiveness on certain derivative financial instruments used to hedge prices on Seneca’s oil and gas production. The increase in depletion expense is due to higher production and a higher per unit rate as discussed above. Similar to the quarterly results described above, the increase in LOE is due to the High Island 24L well that began production in October 2007, higher steaming costs in California, and an increase in the number of producing properties in Appalachia, where approximately 20 wells are being added each month.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire State Pipeline (“Empire”). These companies provide 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 western Pennsylvania.

The Pipeline and Storage segment’s earnings of $15.6 million, or $0.18 per share, for the quarter ended March 31, 2008, increased $1.7 million, or $0.02 per share, when compared with the same period in the prior fiscal year. The increase is primarily due to higher transportation and storage revenues and higher efficiency gas revenue. The increase in transportation and

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storage revenue is mainly due to additional contracts and higher rates for these services. The increase in efficiency gas revenues is due to both higher natural gas prices and higher retained volumes compared to the prior year’s quarter. An increase in the allowance for funds used during construction (“AFUDC”) resulting from the construction of the Empire Connector also contributed to the increase in earnings for the quarter. Partially offsetting the increased earnings were higher depreciation and operating expenses.

The Pipeline and Storage segment’s earnings of $28.4 million, or $0.33 per share, for the six months ended March 31, 2008, increased $0.8 million when compared with the six months ended March 31, 2007. The comparability of the results for the six months ended March 31, 2008, is impacted by a $1.9 million gain associated with the prepayment in the first quarter of 2007 of the project financing debt for the Empire State Pipeline. Excluding that gain, operating results increased $2.7 million for the six months ended March 31, 2008, mainly due to higher transportation and storage revenues and higher efficiency gas revenues. Higher AFUDC and lower depreciation expense also contributed to the increase in operating results. Higher operating expenses and interest expense during the six month period partially offset those items.

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. The Utility segment’s earnings of $34.2 million, or $0.40 per share for the quarter ended March 31, 2008, increased $0.7 million, or $0.01 per share, however the results are not directly comparable to the prior year’s second quarter due to a rate design change in the New York Division discussed below.

In the New York Division, earnings decreased $0.1 million or less than $0.01 per share. On December 21, 2007, the New York Public Service Commission issued an order allowing Distribution to increase annual revenues by $1.8 million. In addition to the revenue increase, the order approved a rate design change, which allows Distribution to recover a greater amount of its cost in the minimum bill amount. This results in shifting over $6.5 million of revenue from the second quarter and spreading it to the third and fourth quarters of the fiscal year. As a result of this change, earnings for the second quarter of fiscal 2008 decreased from the second quarter of fiscal 2007. The impact of the rate order was mostly offset by a routine regulatory adjustment and lower expenses for bad debts and postretirement benefits. In the Pennsylvania Division, earnings increased $0.8 million due to an increase in customer usage per account and lower bad debt expense partially offset by warmer weather compared to the prior year quarter.

The Utility segment’s earnings of $54.4 million, or $0.64 per share, for the six months ended March 31, 2008, increased $3.8 million, or $0.04 per share, compared to the six months ended March 31, 2007. Earnings in Distribution’s New York Division for the six months ended March 31, 2008, of $35.9 million increased $0.8 million or $0.01 per share, compared to the prior year. The increase is mainly due to an increase in customer usage per account, a routine regulatory adjustment, and lower bad debt and postretirement benefits expenses. The impact of these items more than offset the impact on earnings of the rate design change included in the rate order discussed above.

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For the six months ended March 31, 2008, earnings in Distribution’s Pennsylvania Division of $18.5 million, or $0.22 per share, increased $3.0 million, or $0.03 per share, compared to the prior year. Earnings increased primarily due to an increase in base rates, higher usage per customer and a decrease in bad debt expense. On January 1, 2007, Distribution implemented a Settlement Agreement approved by the Pennsylvania Public Utility Commission that provided for a $14.3 million (before tax) annual base rate increase. Warmer weather during the six months ended March 31, 2008, partially offset the increase in base rates.

Energy Marketing

National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy Marketing segment. NFR markets natural gas to industrial, commercial, public authority and residential customers in western and central New York and northwestern Pennsylvania, offering competitively priced energy and energy management services to its customers.

The Energy Marketing segment’s earnings for the quarter ended March 31, 2008, of $5.6 million, or $0.07 per share, decreased $1.1 million, or $0.01 per share, compared to the second quarter of last year. The comparability of the quarterly results is impacted by a $2.3 million reversal of an accrual for purchased gas expense for which a contingency was resolved during the second quarter of 2007. Excluding this item, operating results for the quarter increased $1.3 million primarily due to a nearly nine percent increase in sales throughput during the quarter. Additionally NFR benefited from the profitable sale of certain gas held as inventory and from the marketing flexibility that it derives from its contracts for significant storage capacity.

Earnings for the six months ended March 31, 2008, in the Energy Marketing segment of $6.6 million, or $0.07 per share, decreased $0.6 million, or $0.01 per share, from the prior period. The comparability of the results is impacted by a $2.3 million reversal of an accrual for purchased gas expense noted above. Excluding this item, operating results for the six months ended March 31, 2008, increased $1.7 million, or $0.02 per share, compared to the prior year mainly due to increased sales throughput and the factors discussed above.

Timber Segment

The Timber segment operations are carried out by Highland Forest Resources, Inc. (“Highland”) and Seneca’s Northeast Division. This segment markets high quality hardwoods from its New York and Pennsylvania land holdings, and owns two sawmill/dry kiln operations in northwestern Pennsylvania.

The Timber segment’s earnings for the quarter ended March 31, 2008 of $3.9 million, or $0.05 per share, increased $0.7 million, or $0.01 per share from the prior year’s second quarter due to higher margins. Much of the current quarter’s harvest was from low or no basis Company-owned property. This resulted in an increase in gross margins from the prior year’s quarter.

Earnings for the six months ended March 31, 2008, of $4.3 million, increased $0.9 million from the prior year’s earnings. The increase is due to higher volumes of lumber and log sales. In addition, harvesting from Company-owned property resulted in higher margins during the six months ended March 31, 2008.

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Corporate and All Other

Other direct, wholly-owned subsidiaries of the Company include: Horizon LFG, Inc., a corporation engaged through subsidiaries in the purchase, processing, transportation and sale of landfill gas; and Horizon Power, Inc., a corporation that develops and owns independent electric generation facilities which are fueled with natural gas or landfill gas.

Earnings in the Corporate and All Other category for the quarter ended March 31, 2008, were $1.1 million, a slight decrease compared to the prior year’s second quarter earnings of $1.4 million. The comparability of the quarterly results is impacted by a $0.6 million gain on the sale of a gas-powered turbine the Company had previously planned to use in the development of a co-generation plant. Excluding this item, operating results for the quarter decreased $0.8 million. Higher margins from the landfill gas operations and lower interest expense were more than offset by lower interest income and higher operating expenses mainly related to the proxy contest initiated by a shareholder.

Earnings in the Corporate and All Other category for the six months ended March 31, 2008, were $3.4 million, a decrease of $0.2 million when compared to the prior year’s earnings. The comparability of the results for the six months ended March 31, 2008, is impacted by the $0.6 million gain on the sale of the turbine described above. Excluding this item, operating results decreased $0.8 million. Higher margins from the landfill gas operations, higher income from unconsolidated subsidiaries, lower interest expense and a lower effective tax rate were more than offset by lower interest income and higher operating expenses mainly related to the proxy contest noted above.

Discontinued Operations

On August 31, 2007, Seneca completed the sale of its Canadian subsidiary. As a result of that sale, the Company has presented the Canadian operations as discontinued operations. Earnings in the second quarter of fiscal 2007 include earnings from discontinued operations of $3.0 million. There were no earnings from discontinued operations in the second quarter of fiscal 2008.

Earnings for the six months ended March 31, 2007, include earnings from discontinued operations of $6.8 million. There were no earnings from discontinued operations for the six months ended March 31, 2008.

EARNINGS GUIDANCE

The Company is increasing and narrowing its GAAP earnings guidance for fiscal 2008 earnings to a range of $2.90 to $3.00 per share. Earnings guidance had previously been in the range of $2.60 to $2.80 per share. The narrowing of the range is possible because the most sensitivity to earnings variance in the Utility segment typically occurs during the first two fiscal quarters, which are now completed. The increase in the guidance is a result of higher than forecast crude oil prices realized by Seneca during the three months ended March 31, 2008, combined with the certainty of pricing on planned commodity sales in both the Pipeline and

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Storage and the Exploration and Production segments, which are now hedged. In addition, the revised earnings per share guidance reflects a lower weighted average number of shares to be outstanding for the remainder of the fiscal year as a result of shares repurchased pursuant to the Company’s share repurchase program. This guidance is still based on the July 24, 2007, NYMEX commodity pricing incorporated in the Company’s original guidance. To the extent that actual pricing during the remainder of the fiscal year varies from those July 24, 2007, prices, the fiscal year earnings will be affected as detailed in the earnings sensitivity table on page 25 of this release.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 2, 2008, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s Web site at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-271-5140, and using the passcode “75887151.” For those unable to listen to the live conference call, a replay will be available approximately one hour after the conclusion of the call at the same Web site link and by phone at (toll free) 888-286-8010 using passcode “39987735.” Both the webcast and telephonic replay will be available until the close of business on Friday, May 9, 2008.

National Fuel is an integrated energy company with $4.2 billion in assets comprised of the following five operating segments: Exploration and Production, Pipeline and Storage, Utility, Energy Marketing, and Timber. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.


Analyst Contact:	James C. Welch	(716) 857-6987
Media Contact:	Julie Coppola Cox	(716) 857-7079

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, 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 economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents; changes in demographic patterns and weather conditions, including the occurrence of severe weather such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company’s natural gas and oil reserves; uncertainty of oil and gas reserve estimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves; significant changes from expectations in the Company’s actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability

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to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; occurrences affecting the Company’s ability to obtain funds from operations, from borrowings under our credit lines or other credit facilities or from issuances of other short-term notes or debt or equity securities to finance needed capital expenditures and other investments, including any downgrades in the Company’s credit ratings; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company; changes in actuarial assumptions and the return on assets with respect to the Company’s retirement plan and post-retirement benefit plans; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide post-retirement benefits; 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 hereof.

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2008


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

Second quarter 2007 GAAP earnings	$	19,801		$	13,936		$	33,444		$	6,706		$	3,200		$	1,360		$	78,447
Items impacting comparability:
Income from discontinued operations		(2,967	)																	(2,967	)
Resolution of a purchased gas contingency											(2,344	)								(2,344	)

Second quarter 2007 operating results		16,834			13,936			33,444			4,362			3,200			1,360			73,136

Drivers of operating results
Higher crude oil prices		15,016																		15,016
Higher natural gas prices		7,485																		7,485
Higher natural gas production		3,169																		3,169
Lower crude oil production		(1,521	)																	(1,521	)
Derivative mark to market adjustment		(1,093	)																	(1,093	)
Higher lease operating costs		(3,356	)																	(3,356	)

Higher transportation and storage revenues					979															979
Higher efficiency gas revenues					1,040															1,040
Lower (higher) operating costs		(1,922	)		(438	)		3,023									(1,374	)		(711	)
Lower (higher) depreciation / depletion		(2,311	)		(398	)		348						(250	)					(2,611	)

Usage								1,483												1,483
Warmer weather in Pennsylvania								(537	)											(537	)
Base rate decrease in New York								(4,279	)											(4,279	)
Regulatory true-up adjustment								528												528

Higher margins											1,224			984			307			2,515

Higher AFUDC**					442															442
Higher (lower) interest income		487															(1,253	)		(766	)
Lower interest expense		1,219															1,233			2,452

All other / rounding		565			57			154			61			(51	)		261			1,047


Second quarter 2008 operating results		34,572			15,618			34,164			5,647			3,883			534			94,418
Items impacting comparability:
Gain on Sale of Turbine																	586			586

Second quarter 2008 GAAP earnings	$	34,572		$	15,618		$	34,164		$	5,647		$	3,883		$	1,120		$	95,004


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2008


	Exploration &			Pipeline &						Energy					Corporate /
	Production*			Storage			Utility			Marketing			Timber		All Other			Consolidated

Second quarter 2007 GAAP earnings	$	0.23		$	0.16		$	0.39		$	0.08		$	0.04	$	0.02		$	0.92
Items impacting comparability:
Income from discontinued operations		(0.03	)																(0.03	)
Resolution of a purchased gas contingency											(0.03	)							(0.03	)

Second quarter 2007 operating results		0.20			0.16			0.39			0.05			0.04		0.02			0.86

Drivers of operating results
Higher crude oil prices		0.18																	0.18
Higher natural gas prices		0.09																	0.09
Higher natural gas production		0.04																	0.04
Lower crude oil production		(0.02	)																(0.02	)
Derivative mark to market adjustment		(0.01	)																(0.01	)
Higher lease operating costs		(0.04	)																(0.04	)

Higher transportation and storage revenues					0.01														0.01
Higher efficiency gas revenues					0.01														0.01
Lower (higher) operating costs		(0.02	)		(0.01	)		0.04								(0.02	)		(0.01	)
Lower (higher) depreciation / depletion		(0.03	)		—			—						—					(0.03	)

Usage								0.02											0.02
Warmer weather in Pennsylvania								(0.01	)										(0.01	)
Base rate decrease in New York								(0.05	)										(0.05	)
Regulatory true-up adjustment								0.01											0.01

Higher margins											0.01			0.01		—			0.02

Higher AFUDC**					0.01														0.01
Higher (lower) interest income		0.01														(0.01	)		—
Lower interest expense		0.01														0.01			0.02

All other / rounding		(0.01	)		—			—			0.01			—		—			—


Second quarter 2008 operating results		0.40			0.18			0.40			0.07			0.05		—			1.10
Items impacting comparability:
Gain on Sale of Turbine																0.01			0.01

Second quarter 2008 GAAP earnings	$	0.40		$	0.18		$	0.40		$	0.07		$	0.05	$	0.01		$	1.11


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2008


	Exploration &			Pipeline &						Energy						Corporate /
(Thousands of Dollars)	Production*			Storage			Utility			Marketing			Timber			All Other			Consolidated
Six months ended March 31, 2007 GAAP earnings	$	40,523		$	27,624		$	50,618		$	7,198		$	3,417		$	3,587		$	132,967
Items impacting comparability:
Income from discontinued operations		(6,799	)																	(6,799	)
Resolution of a purchased gas contingency											(2,344	)								(2,344	)
Discontinuance of hedge accounting					(1,888	)														(1,888	)

Six months ended March 31, 2007 operating results		33,724			25,736			50,618			4,854			3,417			3,587			121,936

Drivers of operating results
Higher crude oil prices		30,314																		30,314
Higher natural gas prices		10,406																		10,406
Higher natural gas production		6,454																		6,454
Lower crude oil production		(1,423	)																	(1,423	)
Derivative mark to market adjustment		(1,267	)																	(1,267	)
Higher lease operating costs		(4,872	)																	(4,872	)

Higher transportation and storage revenues					2,403															2,403
Higher efficiency gas revenues					833															833
Lower (higher) operating costs		(2,264	)		(1,147	)		2,884									(3,745	)		(4,272	)
Lower (higher) depreciation / depletion		(5,857	)		371									(365	)					(5,851	)

Usage								3,366												3,366
Warmer weather in Pennsylvania								(1,208	)											(1,208	)
Base rate decrease in New York								(4,279	)											(4,279	)
Base rate increase in Pennsylvania								2,006												2,006
Regulatory true-up adjustment								712												712

Higher margins											1,721			1,564			282			3,567

Income from unconsolidated subsidiaries																	736			736

Higher AFUDC**					800															800
Higher (lower) interest income		1,542															(742	)		800
Lower (higher) interest expense		2,391			(345	)											2,017			4,063

(Higher) lower income tax expense		(930	)														393			(537	)

All other / rounding		376			(254	)		281			27			(336	)		241			335


Six months ended March 31, 2008 operating results		68,594			28,397			54,380			6,602			4,280			2,769			165,022
Items impacting comparability:
Gain on Sale of Turbine																	586			586

Six months ended March 31, 2008 GAAP earnings	$	68,594		$	28,397		$	54,380		$	6,602		$	4,280		$	3,355		$	165,608


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

Page 13

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2008


	Exploration &			Pipeline &						Energy						Corporate /
	Production*			Storage			Utility			Marketing			Timber			All Other			Consolidated
Six months ended March 31, 2007 GAAP earnings	$	0.48		$	0.33		$	0.60		$	0.08		$	0.04		$	0.04		$	1.57
Items impacting comparability:
Income from discontinued operations		(0.08	)																	(0.08	)
Resolution of a purchased gas contingency											(0.03	)								(0.03	)
Discontinuance of hedge accounting					(0.02	)														(0.02	)

Six months ended March 31, 2007 operating results		0.40			0.31			0.60			0.05			0.04			0.04			1.44

Drivers of operating results
Higher crude oil prices		0.35																		0.35
Higher natural gas prices		0.12																		0.12
Higher natural gas production		0.08																		0.08
Lower crude oil production		(0.02	)																	(0.02	)
Derivative mark to market adjustment		(0.01	)																	(0.01	)
Higher lease operating costs		(0.06	)																	(0.06	)

Higher transportation and storage revenues					0.03															0.03
Higher efficiency gas revenues					0.01															0.01
Lower (higher) operating costs		(0.03	)		(0.01	)		0.03									(0.04	)		(0.05	)
Lower (higher) depreciation / depletion		(0.07	)		—									—						(0.07	)

Usage								0.04												0.04
Warmer weather in Pennsylvania								(0.01	)											(0.01	)
Base rate decrease in New York								(0.05	)											(0.05	)
Base rate increase in Pennsylvania								0.02												0.02
Regulatory true-up adjustment								0.01												0.01

Higher margins											0.02			0.02			—			0.04

Income from unconsolidated subsidiaries																	0.01			0.01

Higher AFUDC**					0.01															0.01
Higher (lower) interest income		0.02															(0.01	)		0.01
Lower (higher) interest expense		0.03			—												0.02			0.05

(Higher) lower income tax expense		(0.01	)														—			(0.01	)

All other / rounding		—			(0.02	)		—			—			(0.01	)		0.01			(0.02	)

Six months ended March 31, 2008 operating results		0.80			0.33			0.64			0.07			0.05			0.03			1.92
Items impacting comparability:
Gain on Sale of Turbine																	0.01			0.01

Six months ended March 31, 2008 GAAP earnings	$	0.80		$	0.33		$	0.64		$	0.07		$	0.05		$	0.04		$	1.93


*		Includes discontinued operations

**		AFUDC = Allowance for Funds Used During Construction

Page 14

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)


	Three Months Ended						Six Months Ended
	March 31,						March 31,
	(Unaudited)						(Unaudited)
	2008			2007			2008			2007
SUMMARY OF OPERATIONS
Operating Revenues	$	885,853		$	798,100		$	1,454,121		$	1,288,758


Operating Expenses:
Purchased Gas		531,438			476,904			809,448			719,843
Operation and Maintenance		120,584			120,408			223,040			215,112
Property, Franchise and Other Taxes		21,398			19,989			39,070			36,940
Depreciation, Depletion and Amortization		42,412			38,395			86,533			77,802

		715,832			655,696			1,158,091			1,049,697

Operating Income		170,021			142,404			296,030			239,061

Other Income (Expense):
Income from Unconsolidated Subsidiaries		1,030			942			3,305			2,173
Interest Income		2,177			636			5,270			1,721
Other Income		2,080			2,526			3,334			3,241
Interest Expense on Long-Term Debt		(16,289	)		(17,888	)		(32,577	)		(33,931	)
Other Interest Expense		(2,285	)		(1,516	)		(3,010	)		(3,366	)


Income from Continuing Operations Before Income Taxes		156,734			127,104			272,352			208,899

Income Tax Expense		61,730			51,624			106,744			82,731


Income from Continuing Operations		95,004			75,480			165,608			126,168

Income from Discontinued Operations, Net of Tax		—			2,967			—			6,799


Net Income Available for Common Stock	$	95,004		$	78,447		$	165,608		$	132,967


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	1.14		$	0.91		$	1.98		$	1.53
Income from Discontinued Operations		—			0.04			—			0.08

Net Income Available for Common Stock	$	1.14		$	0.95		$	1.98		$	1.61


Diluted:
Income from Continuing Operations	$	1.11		$	0.89		$	1.93		$	1.49
Income from Discontinued Operations		—			0.03			—			0.08

Net Income Available for Common Stock	$	1.11		$	0.92		$	1.93		$	1.57


Weighted Average Common Shares:
Used in Basic Calculation		83,406,242			82,895,087			83,509,268			82,786,027

Used in Diluted Calculation		85,385,944			85,033,127			85,603,033			84,891,742

Page 15

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


	March 31,			September 30,
(Thousands of Dollars)	2008			2007
ASSETS
Property, Plant and Equipment	$	4,593,980		$	4,461,586
Less — Accumulated Depreciation, Depletion and Amortization		1,650,715			1,583,181

Net Property, Plant and Equipment		2,943,265			2,878,405


Current Assets:
Cash and Temporary Cash Investments		216,412			124,806
Cash Held in Escrow		—			61,964
Hedging Collateral Deposits		2,354			4,066
Receivables — Net		363,872			172,380
Unbilled Utility Revenue		75,084			20,682
Gas Stored Underground		19,512			66,195
Materials and Supplies — at average cost		37,618			35,669
Unrecovered Purchased Gas Costs		1,421			14,769
Other Current Assets		30,854			45,057
Deferred Income Taxes		41,253			8,550

Total Current Assets		788,380			554,138


Other Assets:
Recoverable Future Taxes		83,620			83,954
Unamortized Debt Expense		11,101			12,070
Other Regulatory Assets		133,881			137,577
Deferred Charges		5,314			5,545
Other Investments		83,754			85,902
Investments in Unconsolidated Subsidiaries		16,605			18,256
Goodwill		5,476			5,476
Intangible Assets		27,505			28,836
Prepaid Pension and Post-Retirement Benefit Costs		59,331			61,006
Fair Value of Derivative Financial Instruments		—			9,188
Other		4,843			8,059

Total Other Assets		431,430			455,869

Total Assets	$	4,163,075		$	3,888,412


CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 81,636,429 Shares and 83,461,308 Shares, Respectively	$	81,636		$	83,461
Paid in Capital		580,811			569,085
Earnings Reinvested in the Business		1,008,084			983,776

Total Common Shareholder Equity Before Items of Other Comprehensive Loss		1,670,531			1,636,322
Accumulated Other Comprehensive Loss		(41,867	)		(6,203	)

Total Comprehensive Shareholders’ Equity		1,628,664			1,630,119
Long-Term Debt, Net of Current Portion		899,000			799,000

Total Capitalization		2,527,664			2,429,119


Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		—			—
Current Portion of Long-Term Debt		100,000			200,024
Accounts Payable		149,595			109,757
Amounts Payable to Customers		4,985			10,409
Dividends Payable		25,307			25,873
Interest Payable on Long-Term Debt		18,158			18,158
Customer Advances		—			22,863
Other Accruals and Current Liabilities		213,087			36,062
Fair Value of Derivative Financial Instruments		64,595			16,200

Total Current and Accrued Liabilities		575,727			439,346


Deferred Credits:
Deferred Income Taxes		593,375			575,356
Taxes Refundable to Customers		14,033			14,026
Unamortized Investment Tax Credit		5,042			5,392
Cost of Removal Regulatory Liability		99,924			91,226
Other Regulatory Liabilities		92,343			76,659
Post-Retirement Liabilities		62,372			70,555
Asset Retirement Obligations		76,357			75,939
Other Deferred Credits		116,238			110,794

Total Deferred Credits		1,059,684			1,019,947

Commitments and Contingencies		—			—

Total Capitalization and Liabilities	$	4,163,075		$	3,888,412

Page 16

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


	Six Months Ended
	March 31,
(Thousands of Dollars)	2008			2007

Operating Activities:
Net Income Available for Common Stock	$	165,608		$	132,967
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		86,533			84,886
Deferred Income Taxes		12,817			21,803
Income from Unconsolidated Subsidiaries, Net of Cash Distributions		1,651			(960	)
Excess Tax Benefits Associated with Stock-Based Compensation Awards		(16,275	)		(13,689	)
Other		(194	)		3,818
Change in:
Hedging Collateral Deposits		1,712			17,642
Receivables and Unbilled Utility Revenue		(245,912	)		(196,094	)
Gas Stored Underground and Materials and Supplies		44,734			47,243
Unrecovered Purchased Gas Costs		13,347			(992	)
Prepayments and Other Current Assets		15,878			28,659
Accounts Payable		39,838			34,417
Amounts Payable to Customers		(5,424	)		(13,339	)
Customer Advances		(22,863	)		(29,417	)
Other Accruals and Current Liabilities		192,787			163,928
Other Assets		18,127			(3,765	)
Other Liabilities		4,504			(2,434	)

Net Cash Provided by Operating Activities	$	306,868		$	274,673


Investing Activities:
Capital Expenditures		($144,707	)		($132,313	)
Investment in Partnership		—			(3,300	)
Cash Held in Escrow		58,397			—
Net Proceeds from Sale of Oil and Gas Producing Properties		2,313			2,330
Other		1,557			(339	)

Net Cash Used in Investing Activities		($82,440	)		($133,622	)


Financing Activities:
Excess Tax Benefits Associated with Stock-Based Compensation Awards	$	16,275		$	13,689
Shares Repurchased under Repurchase Plan		(108,941	)		(43,344	)
Reduction of Long-Term Debt		(24	)		(23,207	)
Dividends Paid on Common Stock		(51,896	)		(49,808	)
Proceeds From Issuance of Common Stock		11,764			14,604

Net Cash Used In Financing Activities		($132,822	)		($88,066	)

Effect of Exchange Rates on Cash		—			(787	)

Net Increase in Cash and Temporary Cash Investments		91,606			52,198
Cash and Temporary Cash Investments at Beginning of Period		124,806			69,611

Cash and Temporary Cash Investments at March 31	$	216,412		$	121,809

Page 17

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
(Thousands of Dollars, except per share amounts)	2008			2007			Variance			2008			2007			Variance

EXPLORATION AND PRODUCTION SEGMENT
Operating Revenues	$	114,720		$	78,554		$	36,166		$	222,675		$	153,680		$	68,995


Operating Expenses:
Purchased Gas		—			—			—			—			—			—
Operation and Maintenance:
General and Administrative Expense		7,171			4,491			2,680			12,752			8,706			4,046
Lease Operating Expense		14,421			11,336			3,085			26,148			21,543			4,605
All Other Operation and Maintenance Expense		2,284			2,006			278			4,018			4,582			(564	)
Property, Franchise and Other Taxes (Lease Operating Expense)		3,074			997			2,077			4,876			1,986			2,890
Depreciation, Depletion and Amortization		22,804			19,248			3,556			46,849			37,838			9,011

		49,754			38,078			11,676			94,643			74,655			19,988


Operating Income		64,966			40,476			24,490			128,032			79,025			49,007

Other Income (Expense):
Interest Income		3,144			2,395			749			7,032			4,661			2,371
Other Income		(65	)		—			(65	)		18			—			18
Other Interest Expense		(11,073	)		(12,949	)		1,876			(22,218	)		(25,897	)		3,679


Income from Continuing Operations Before Income Taxes		56,972			29,922			27,050			112,864			57,789			55,075
Income Tax Expense		22,400			13,088			9,312			44,270			24,065			20,205

Income from Continuing Operations		34,572			16,834			17,738			68,594			33,724			34,870

Income from Discontinued Operations, Net of Tax		—			2,967			(2,967	)		—			6,799			(6,799	)


Net Income	$	34,572		$	19,801		$	14,771		$	68,594		$	40,523		$	28,071


Income from Continuing Operations Per Share (Diluted)	$	0.40		$	0.20		$	0.20		$	0.80		$	0.40		$	0.40
Income from Discontinued Operations, Net of Tax, Per Share (Diluted)		—			0.03			(0.03	)		—			0.08			(0.08	)
	-
Net Income Per Share (Diluted)	$	0.40		$	0.23		$	0.17		$	0.80		$	0.48		$	0.32


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2008			2007			Variance			2008			2007			Variance

PIPELINE AND STORAGE SEGMENT
Revenues from External Customers	$	37,934		$	34,952		$	2,982		$	69,817		$	64,761		$	5,056
Intersegment Revenues		20,861			20,884			(23	)		41,209			41,252			(43	)

Total Operating Revenues		58,795			55,836			2,959			111,026			106,013			5,013


Operating Expenses:
Purchased Gas		(14	)		2			(16	)		(8	)		(11	)		3
Operation and Maintenance		18,417			17,744			673			34,415			32,647			1,768
Property, Franchise and Other Taxes		4,259			4,335			(76	)		8,532			8,613			(81	)
Depreciation, Depletion and Amortization		8,176			7,563			613			16,285			16,855			(570	)

		30,838			29,644			1,194			59,224			58,104			1,120


Operating Income		27,957			26,192			1,765			51,802			47,909			3,893

Other Income (Expense):
Interest Income		70			39			31			165			123			42
Other Income		731			80			651			1,421			264			1,157
Interest Expense on Long-Term Debt		(16	)		(10	)		(6	)		(31	)		1,829			(1,860	)
Other Interest Expense		(2,552	)		(2,741	)		189			(5,588	)		(5,028	)		(560	)


Income Before Income Taxes		26,190			23,560			2,630			47,769			45,097			2,672
Income Tax Expense		10,572			9,624			948			19,372			17,473			1,899

Net Income	$	15,618		$	13,936		$	1,682		$	28,397		$	27,624		$	773


Net Income Per Share (Diluted)	$	0.18		$	0.16		$	0.02		$	0.33		$	0.33		$	—

Page 18

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
(Thousands of Dollars, except per share amounts)	2008			2007			Variance			2008			2007			Variance

UTILITY SEGMENT
Revenues from External Customers	$	522,730		$	501,473		$	21,257		$	849,855		$	790,256		$	59,599
Intersegment Revenues		6,114			5,941			173			10,413			9,970			443

Total Operating Revenues		528,844			507,414			21,430			860,268			800,226			60,042


Operating Expenses:
Purchased Gas		378,187			352,864			25,323			597,310			539,225			58,085
Operation and Maintenance		62,796			67,448			(4,652	)		113,778			118,215			(4,437	)
Property, Franchise and Other Taxes		13,531			14,107			(576	)		24,629			25,298			(669	)
Depreciation, Depletion and Amortization		9,786			10,321			(535	)		19,827			20,100			(273	)

		464,300			444,740			19,560			755,544			702,838			52,706


Operating Income		64,544			62,674			1,870			104,724			97,388			7,336

Other Income (Expense):
Interest Income		164			177			(13	)		362			462			(100	)
Other Income		259			368			(109	)		604			653			(49	)
Other Interest Expense		(7,654	)		(7,269	)		(385	)		(14,905	)		(14,646	)		(259	)


Income Before Income Taxes		57,313			55,950			1,363			90,785			83,857			6,928
Income Tax Expense		23,149			22,506			643			36,405			33,239			3,166

Net Income	$	34,164		$	33,444		$	720		$	54,380		$	50,618		$	3,762


Net Income Per Share (Diluted)	$	0.40		$	0.39		$	0.01		$	0.64		$	0.60		$	0.04


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2008			2007			Variance			2008			2007			Variance

ENERGY MARKETING SEGMENT
Operating Revenues	$	191,263		$	163,338		$	27,925		$	277,982		$	246,656		$	31,326


Operating Expenses:
Purchased Gas		180,723			151,027			29,696			264,652			232,282			32,370
Operation and Maintenance		1,439			1,218			221			2,785			2,512			273
Property, Franchise and Other Taxes		14			24			(10	)		23			35			(12	)
Depreciation, Depletion and Amortization		11			7			4			22			14			8

		182,187			152,276			29,911			267,482			234,843			32,639


Operating Income		9,076			11,062			(1,986	)		10,500			11,813			(1,313	)

Other Income (Expense):
Interest Income		63			78			(15	)		87			140			(53	)
Other Income		74			181			(107	)		133			317			(184	)
Other Interest Expense		(44	)		(125	)		81			(127	)		(252	)		125
	—

Income Before Income Taxes		9,169			11,196			(2,027	)		10,593			12,018			(1,425	)
Income Tax Expense		3,522			4,490			(968	)		3,991			4,820			(829	)

Net Income	$	5,647		$	6,706		$	(1,059	)	$	6,602		$	7,198		$	(596	)


Net Income Per Share (Diluted)	$	0.07		$	0.08		$	(0.01	)	$	0.07		$	0.08		$	(0.01	)

Page 19

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
(Thousands of Dollars, except per share amounts)	2008			2007			Variance			2008			2007			Variance

TIMBER SEGMENT
Operating Revenues	$	17,424		$	18,184		$	(760	)	$	30,324		$	29,947		$	377

Operating Expenses:
Operation and Maintenance		8,684			10,969			(2,285	)		18,643			20,111			(1,468	)
Property, Franchise and Other Taxes		430			426			4			827			819			8
Depreciation, Depletion and Amortization		1,267			883			384			2,813			2,251			562

		10,381			12,278			(1,897	)		22,283			23,181			(898	)


Operating Income		7,043			5,906			1,137			8,041			6,766			1,275

Other Income (Expense):
Interest Income		189			296			(107	)		579			612			(33	)
Other Income		—			—			—			—			21			(21	)
Other Interest Expense		(790	)		(791	)		1			(1,650	)		(1,594	)		(56	)


Income Before Income Taxes		6,442			5,411			1,031			6,970			5,805			1,165
Income Tax Expense		2,559			2,211			348			2,690			2,388			302

Net Income	$	3,883		$	3,200		$	683		$	4,280		$	3,417		$	863


Net Income Per Share (Diluted)	$	0.05		$	0.04		$	0.01		$	0.05		$	0.04		$	0.01


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2008			2007			Variance			2008			2007			Variance

ALL OTHER
Revenues from External Customers	$	1,619		$	1,403		$	216		$	3,169		$	3,079		$	90
Intersegment Revenues		3,099			2,090			1,009			5,812			4,287			1,525

Total Operating Revenues		4,718			3,493			1,225			8,981			7,366			1,615


Operating Expenses:
Purchased Gas		2,510			1,822			688			4,712			3,650			1,062
Operation and Maintenance		1,056			950			106			2,114			1,755			359
Property, Franchise and Other Taxes		17			28			(11	)		40			48			(8	)
Depreciation, Depletion and Amortization		196			197			(1	)		393			393			—

		3,779			2,997			782			7,259			5,846			1,413


Operating Income		939			496			443			1,722			1,520			202

Other Income (Expense):
Income from Unconsolidated Subsidiaries		1,030			942			88			3,305			2,173			1,132
Interest Income		28			4			24			43			7			36
Other Income		912			12			900			921			25			896
Other Interest Expense		(142	)		(667	)		525			(429	)		(1,337	)		908


Income Before Income Taxes		2,767			787			1,980			5,562			2,388			3,174
Income Tax Expense		1,075			320			755			1,532			935			597

Net Income	$	1,692		$	467		$	1,225		$	4,030		$	1,453		$	2,577


Net Income Per Share (Diluted)	$	0.02		$	0.01		$	0.01		$	0.05		$	0.02		$	0.03

Page 20

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
(Thousands of Dollars, except per share amounts)	2008			2007			Variance			2008			2007			Variance

CORPORATE
Revenues from External Customers	$	163		$	196		$	(33	)	$	299		$	379		$	(80	)
Intersegment Revenues		961			912			49			1,922			1,764			158

Total Operating Revenues		1,124			1,108			16			2,221			2,143			78


Operating Expenses:
Operation and Maintenance		5,383			5,262			121			10,525			7,011			3,514
Property, Franchise and Other Taxes		73			72			1			143			141			2
Depreciation, Depletion and Amortization		172			176			(4	)		344			351			(7	)

		5,628			5,510			118			11,012			7,503			3,509


Operating Loss		(4,504	)		(4,402	)		(102	)		(8,791	)		(5,360	)		(3,431	)

Other Income (Expense):
Interest Income		20,186			22,138			(1,952	)		42,890			44,067			(1,177	)
Other Income		169			1,885			(1,716	)		237			1,961			(1,724	)
Interest Expense on Long-Term Debt		(16,273	)		(17,878	)		1,605			(32,546	)		(35,760	)		3,214
Other Interest Expense		(1,697	)		(1,465	)		(232	)		(3,981	)		(2,963	)		(1,018	)


Income (Loss) Before Income Taxes		(2,119	)		278			(2,397	)		(2,191	)		1,945			(4,136	)
Income Tax Benefit		(1,547	)		(615	)		(932	)		(1,516	)		(189	)		(1,327	)

Net Income (Loss)	$	(572	)	$	893		$	(1,465	)	$	(675	)	$	2,134		$	(2,809	)


Net Income (Loss) Per Share (Diluted)	$	(0.01	)	$	0.01		$	(0.02	)	$	(0.01	)	$	0.02		$	(0.03	)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	2008			2007			Variance			2008			2007			Variance

INTERSEGMENT ELIMINATIONS
Intersegment Revenues	$	(31,035	)	$	(29,827	)	$	(1,208	)	$	(59,356	)	$	(57,273	)	$	(2,083	)


Operating Expenses:
Purchased Gas		(29,968	)		(28,811	)		(1,157	)		(57,218	)		(55,303	)		(1,915	)
Operation and Maintenance		(1,067	)		(1,016	)		(51	)		(2,138	)		(1,970	)		(168	)

		(31,035	)		(29,827	)		(1,208	)		(59,356	)		(57,273	)		(2,083	)


Operating Income		—			—			—			—			—			—

Other Income (Expense):
Interest Income		(21,667	)		(24,491	)		2,824			(45,888	)		(48,351	)		2,463
Other Interest Expense		21,667			24,491			(2,824	)		45,888			48,351			(2,463	)


Net Income	$	—		$	—		$	—		$	—		$	—		$	—


Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—

Page 21

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)
(Thousands of Dollars)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
	(Unaudited)									(Unaudited)
							Increase									Increase
	2008			2007			(Decrease)			2008			2007			(Decrease)
Capital Expenditures:
Exploration and Production	$	34,195		$	38,677		$	(4,482	)	$	64,861		$	75,919		$	(11,058	)
Pipeline and Storage		31,739			5,201			26,538			57,110			10,153			46,957
Utility		11,188			12,679			(1,491	)		23,896			25,558			(1,662	)
Energy Marketing		7			8			(1	)		15			17			(2	)
Timber		161			401			(240	)		1,144			1,207			(63	)

Total Reportable Segments		77,290			56,966			20,324			147,026			112,854			34,172
All Other		53			55			(2	)		53			84			(31	)
Corporate		27			(610	)		637			35			(572	)		607
Eliminations		(2,407	)		—			(2,407	)		(2,407	)		—			(2,407	)

Total Expenditures from Continuing Operations		74,963			56,411			18,552			144,707			112,366			32,341
Discontinued Operations		—			10,600			(10,600	)		—			19,947			(19,947	)

Total Capital Expenditures	$	74,963		$	67,011		$	7,952		$	144,707		$	132,313		$	12,394

DEGREE DAYS


							Percent Colder
							(Warmer) Than:
	Normal		2008		2007		Normal			Last Year
Three Months Ended March 31

Buffalo, NY		3,364		3,264		3,327		(3.0	)		(1.9	)
Erie, PA		3,176		3,104		3,152		(2.3	)		(1.5	)

Six Months Ended March 31

Buffalo, NY		5,624		5,358		5,274		(4.7	)		1.6
Erie, PA		5,257		4,975		5,030		(5.4	)		(1.1	)

Page 22

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Gas Production/Prices:
Production (MMcf)
Gulf Coast		3,022		2,893		129			5,849		5,616		233
West Coast		977		920		57			2,004		1,865		139
Appalachia		1,828		1,339		489			3,744		2,732		1,012

Total Production from Continuing Operations		5,827		5,152		675			11,597		10,213		1,384
Canada — Discontinued Operations		—		1,856		(1,856	)		—		3,577		(3,577	)

Total Production		5,827		7,008		(1,181	)		11,597		13,790		(2,193	)


Average Prices (Per Mcf)
Gulf Coast	$	9.50	$	6.42	$	3.08		$	8.36	$	6.48	$	1.88
West Coast		7.93		6.95		0.98			7.34		6.51		0.83
Appalachia		8.90		7.39		1.51			8.15		7.30		0.85
Weighted Average for Continuing Operations		9.05		6.77		2.28			8.12		6.71		1.41
Weighted Average after Hedging for Continuing Operations		9.21		7.23		1.98			8.55		7.17		1.38
Canada — Discontinued Operations		N/M		5.87		N/M			N/M		6.12		N/M

Oil Production/Prices:
Production (Thousands of Barrels)
Gulf Coast		128		174		(46	)		285		376		(91	)
West Coast		599		599		—			1,227		1,190		37
Appalachia		28		31		(3	)		65		58		7

Total Production from Continuing Operations		755		804		(49	)		1,577		1,624		(47	)
Canada — Discontinued Operations		—		61		(61	)		—		117		(117	)

Total Production		755		865		(110	)		1,577		1,741		(164	)


Average Prices (Per Barrel)
Gulf Coast	$	99.75	$	57.21	$	42.54		$	94.31	$	56.84	$	37.47
West Coast		88.45		49.99		38.46			85.04		50.55		34.49
Appalachia		90.15		57.88		32.27			86.73		58.76		27.97
Weighted Average for Continuing Operations		90.43		51.86		38.57			86.78		52.30		34.48
Weighted Average after Hedging for Continuing Operations		78.54		47.95		30.59			75.44		45.86		29.58
Canada — Discontinued Operations		N/M		49.98		N/M			N/M		46.45		N/M
Total Production from Continuing Operations (Mmcfe)		10,357		9,976		381			21,059		19,957		1,102
Total Canadian Production (Mmcfe)		—		2,222		(2,222	)		—		4,279		(4,279	)

Total Production (Mmcfe)		10,357		12,198		(1,841	)		21,059		24,236		(3,177	)


Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe⁽¹⁾	$	0.69	$	0.45	$	0.24		$	0.61	$	0.44	$	0.17
Lease Operating Expense per Mcfe⁽¹⁾	$	1.69	$	1.24	$	0.45		$	1.47	$	1.18	$	0.29
Depreciation, Depletion & Amortization per Mcfe⁽¹⁾	$	2.20	$	1.93	$	0.27		$	2.22	$	1.90	$	0.32


⁽¹⁾		Refer to page 17 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. Amounts exclude discontinued operations of Canada.

N/M = Not meaningful

Page 23

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for Fiscal 2008


SWAPS	Volume	Average Hedge Price
Oil	0.8 MMBBL	$65.72 / BBL
Gas	7.7 BCF	$8.54 / MCF

Hedging Summary for Fiscal 2009


SWAPS	Volume	Average Hedge Price
Oil	1.0 MMBBL	$73.87 / BBL
Gas	9.5 BCF	$9.31 / MCF

Hedging Summary for Fiscal 2010


SWAPS	Volume	Average Hedge Price
Oil	0.2 MMBBL	$84.00 / BBL
Gas	0.4 BCF	$10.54 / MCF

Gross Wells in Process of Drilling
Six Months Ended March 31, 2008


							Total
	Gulf		West		East		Company
Wells in Process — Beginning Period
Exploratory		2.00		0.00		21.00		23.00
Developmental		0.00		4.00		69.00		73.00
Wells Commenced
Exploratory		2.00		1.00		6.00		9.00
Developmental		0.00		29.00		75.00		104.00
Wells Completed
Exploratory		1.00		0.00		5.00		6.00
Developmental		0.00		30.00		103.00		133.00
Wells Plugged & Abandoned
Exploratory		0.00		0.00		1.00		1.00
Developmental		0.00		1.00		0.00		1.00
Wells Sold
Exploratory		2.00		0.00		0.00		2.00
Developmental		0.00		0.00		0.00		0.00
Wells in Process — End of Period
Exploratory		1.00		1.00		21.00		23.00
Developmental		0.00		2.00		41.00		43.00

Net Wells in Process of Drilling
Six Months Ended March 31, 2008


							Total
	Gulf		West		East		Company
Wells in Process — Beginning Period
Exploratory		1.30		0.00		20.00		21.30
Developmental		0.00		4.00		68.00		72.00
Wells Commenced
Exploratory		0.84		1.00		6.00		7.84
Developmental		0.00		29.00		74.00		103.00
Wells Completed
Exploratory		0.29		0.00		5.00		5.29
Developmental		0.00		30.00		102.00		132.00
Wells Plugged & Abandoned
Exploratory		0.00		0.00		1.00		1.00
Developmental		0.00		1.00		0.00		1.00
Wells Sold
Exploratory		1.30		0.00		0.00		1.30
Developmental		0.00		0.00		0.00		0.00
Wells in Process — End of Period
Exploratory		0.55		1.00		20.00		21.55
Developmental		0.00		2.00		40.00		42.00

Page 24

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

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


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Firm Transportation — Affiliated		48,817		51,016		(2,199	)		80,152		80,746		(594	)
Firm Transportation — Non-Affiliated		73,142		69,615		3,527			134,689		114,312		20,377
Interruptible Transportation		1,221		932		289			2,304		1,927		377

		123,180		121,563		1,617			217,145		196,985		20,160

Utility Throughput — (MMcf)


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Retail Sales:
Residential Sales		28,136		29,372		(1,236	)		45,263		46,050		(787	)
Commercial Sales		4,986		5,428		(442	)		7,863		8,296		(433	)
Industrial Sales		323		323		—			446		514		(68	)

		33,445		35,123		(1,678	)		53,572		54,860		(1,288	)
Off-System Sales		2,048		—		2,048			3,080		—		3,080
Transportation		26,054		24,723		1,331			43,881		40,576		3,305

		61,547		59,846		1,701			100,533		95,436		5,097

Energy Marketing Volumes


	Three Months Ended						Six Months Ended
	March 31,						March 31,
					Increase						Increase
	2008		2007		(Decrease)		2008		2007		(Decrease)
Natural Gas (MMcf)		21,707		19,935		1,772		32,548		31,049		1,499

Timber Board Feet (Thousands)


	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
	2008		2007		(Decrease)			2008		2007		(Decrease)
Log Sales		3,589		3,025		564			5,613		4,734		879
Green Lumber Sales		2,792		2,380		412			5,223		3,910		1,313
Kiln-Dried Lumber Sales		3,353		3,794		(441	)		7,100		6,952		148

		9,734		9,199		535			17,936		15,596		2,340

Page 25

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2008 EARNINGS GUIDANCE AND SENSITIVITIES

Earnings per share sensitivity to changes

Fiscal 2008 (Diluted earnings per share guidance*)

from NYMEX prices used in guidance* ^

$1 change per MMBtu gas

$5 change per Bbl oil

Range

Increase

Decrease

Increase

Decrease

Consolidated Earnings

2.90 - $3.00

+$0.02

-$0.02

+$0.03

-$0.03


NYMEX Settlement Prices at July 24, 2007
	Natural Gas		Oil
	($ per MMBtu)		($ per Bbl)
Apr-08	$	7.713	$	72.59
May-08	$	7.678	$	72.48
Jun-08	$	7.768	$	72.39
Jul-08	$	7.866	$	72.29
Aug-08	$	7.939	$	72.19
Sep-08	$	7.994	$	72.09

Average	$	7.826	$	72.34


*		Please refer to forward looking statement footnote at page 8 of this document.

^		This sensitivity table is current as of May 1, 2008 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. The sensitivities will become obsolete with the passage of time, changes in Seneca’s production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of NYMEX hedge contracts at their maturity.

Page 26

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES


	2008		2007
Quarter Ended March 31 (unaudited)

Operating Revenues	$	885,853,000	$	798,100,000


Income from Continuing Operations	$	95,004,000	$	75,480,000
Income from Discontinued Operations, Net of Tax		—		2,967,000

Net Income Available for Common Stock	$	95,004,000	$	78,447,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	1.14	$	0.91
Income from Discontinued Operations		—		0.04

Net Income Available for Common Stock	$	1.14	$	0.95


Diluted:
Income from Continuing Operations	$	1.11	$	0.89
Income from Discontinued Operations		—		0.03

Net Income Available for Common Stock	$	1.11	$	0.92


Weighted Average Common Shares:
Used in Basic Calculation		83,406,242		82,895,087

Used in Diluted Calculation		85,385,944		85,033,127


Six Months Ended March 31 (unaudited)

Operating Revenues	$	1,454,121,000	$	1,288,758,000


Income from Continuing Operations	$	165,608,000	$	126,168,000
Income from Discontinued Operations, Net of Tax		—		6,799,000

Net Income Available for Common Stock	$	165,608,000	$	132,967,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	1.98	$	1.53
Income from Discontinued Operations		—		0.08

Net Income Available for Common Stock	$	1.98	$	1.61


Diluted:
Income from Continuing Operations	$	1.93	$	1.49
Income from Discontinued Operations		—		0.08

Net Income Available for Common Stock	$	1.93	$	1.57


Weighted Average Common Shares:
Used in Basic Calculation		83,509,268		82,786,027

Used in Diluted Calculation		85,603,033		84,891,742


Twelve Months Ended March 31 (unaudited)

Operating Revenues	$	2,204,929,000	$	1,966,473,000


Income from Continuing Operations	$	241,115,000	$	192,372,000
Income (Loss) from Discontinued Operations, Net of Tax		128,981,000		(57,327,000	)

Net Income Available for Common Stock	$	370,096,000	$	135,045,000


Earnings Per Common Share:
Basic:
Income from Continuing Operations	$	2.89	$	2.31
Income (Loss) from Discontinued Operations		1.54		(0.69	)

Net Income Available for Common Stock	$	4.43	$	1.62


Diluted:
Income from Continuing Operations	$	2.82	$	2.25
Income (Loss) from Discontinued Operations		1.50		(0.67	)

Net Income Available for Common Stock	$	4.32	$	1.58


Weighted Average Common Shares:
Used in Basic Calculation		83,502,281		83,232,743

Used in Diluted Calculation		85,610,528		85,352,796


6363 Main Street, Williamsville, New York		14221
(Address of principal executive offices)		(Zip Code)


	NATIONAL FUEL GAS COMPANY
	By:	/s/ James R. Peterson
		James R. Peterson
Dated: May 2, 2008		Assistant Secretary


Exhibit Number		Description

99		Press release issued May 1, 2008 regarding earnings for the quarter ended March 31, 2008


New Jersey (State or other jurisdiction of incorporation)		1-3880 (Commission File Number)		13-1086010 (IRS Employer Identification No.)


	o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


	o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


	o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))