National Fuel Gas Company · NYSE:NFG

National Fuel Gas — Investor Presentation (November 2006)

79 slides from National Fuel Gas's investor presentation, Nov 14, 2006

1. Slide 1: National Fuel Gas Company

   National Fuel Gas Company David F. Smith President & Chief Operating Officer Ronald J. Tanski Treasurer & Principal Financial Officer

2. Slide 2: Safe Harbor

   Safe Harbor NOTE: This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, projections, strategies and future events or

3. Slide 3: Corporate Objective

   Grow shareholder value through timely investment in the energy industry. National Fuel Gas Company Corporate Objective

4. Slide 4: Net Plant by Segment at Fiscal Year End

   1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E $3.08 B At Fiscal Year End Net Plant by Segment (in Millions)

5. Slide 5: Net Plant by Segment

   National Fuel Gas Company Net Plant by Segment $2,878 Million At September 30, 2006 Utility P&S E&P All Other Net plant 1084.1 674.2 1002.3 118

6. Slide 6: Net Income from Continuing Operations

   $193 Million 12 Months Ended September 30, 2006 Utility P&S E&P Timber Energy Mkt. Corp. & Other NI 47.3 55.6 78.4 5.7 5.8 1 National Fuel Gas Company Net Income from Continuing Operations* * Excludes oil and gas impairment of $68.6 million, income tax adjustments of $11.2 million and out-of- period

7. Slide 7: Dividend Growth

   70 0.19 71 0.2 72 0.205 73 0.215 74 0.225 75 0.235 76 0.245 77 0.255 78 0.27 79 0.2875 80 0.3075 81 0.33 82 0.36 83 0.39 84 0.47 85 0.52 86 0.57 87 0.6 88 0.63 89 0.67 90 0.71 91 0.73 92 0.75 93 0.77 94 0.79 95 0.81 96 0.84 97 0.87 98 0.9 99 0.93 '00 0.96 '01 1.01 '02 1.04 '03 1.08 '04 1.12 '05 1.16

8. Slide 8: Earnings vs. Dividends Paid

   Earnings * Dividends Paid 85 0.95 0.48 86 0.88 0.53 87 0.88 0.58 88 0.83 0.61 89 0.97 0.64 90 0.92 0.68 91 0.82 0.72 92 0.97 0.74 93 1.08 0.76 94 1.16 0.78 95 1.02 0.8 96 1.39 0.82 97 1.49 0.85 98 1.44 0.88 99 1.47 0.91 '00 1.61 0.94 '01 2.11 0.97 '02 1.58 1.02 '03 1.89 1.05 '04 1.98 1.09 '05 2.15 1

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11. Slide 11: National Fuel Gas Transmission Pipeline

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12. Slide 12: National Fuel Gas Supply

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13. Slide 13: National Fuel

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15. Slide 15: Pipeline & Storage Pipeline Operating Statistics

    2,966 Miles of System Pipeline 15 Compressor Stations Totaling 39,886 Horsepower Transportation Volume for Fiscal 2006: 375.0 Bcf $123.4 MM in Revenues for Fiscal 2006 Pipeline & Storage Pipeline Operating Statistics

16. Slide 16: Pipeline & Storage Storage Operating Statistics

    32 Underground Natural Gas Storage Fields (4 Co-owned with Nonaffiliated Companies) 15 Compressor Stations Totaling 35,475 Horsepower 73.4 Bcf of Working Storage Capacity $66.8 MM in Revenues for Fiscal 2006 Pipeline & Storage Storage Operating Statistics

17. Slide 17: Pipeline & Storage Diluted Earnings per Share

    Fiscal Year 2002 2003 2004 2005 2006 Earnings 0.49 0.56 0.599 0.63 0.65 a Excludes impairment of Independence Pipeline of -$0.12 b Excludes SFAS 88 settlement loss of -$0.02 c Excludes base gas sale of $0.03 and gain associated with insurance proceeds of $0.05 a b Fiscal Year Pipeline & Storage Dilu

18. Slide 18: Pipeline & Storage FERC Proceeding

    Pipeline & Storage FERC Proceeding 4/06: Complaint & Motion for Summary Disposition filed against Supply Corp. by NYPSC, PaPUC and Pennsylvania OCA (FERC Docket No. RP06-298-000) Complainants allege that Supply's rates are unjust and unreasonable and challenge Supply's fuel retainage level Supply vi

19. Slide 19: Empire Connector

    | @ emeice ioesne EMPIRE CONNECTOR +78 MLES OF 24° + 20.620 HP COMPRESSION + $152 MILLION

20. Slide 20: Empire Connector

    Empire Connector FERC issued the Final Environmental Impact Statement on 10/13/06, Finding No Significant Environmental Impact Initial Capacity 250,000 Dth/day - KeySpan 150,750 Dth/day Target In-Service Date Fall 2008 78 Miles of 24" Pipe - 1,440 psig 20,620 HP of Compression Receipts from TransCan

21. Slide 21: Leidy Hub Our Prime Location

    Leidy Hub Our Prime Location 21

22. Slide 22: Tuscarora Extension Phase I

    Tuscarora Extension Phase I Pipeline Capacity 130,000 Dth/day Estimated In-Service Date Late Calendar 2009/Early Calendar 2010 23 Miles of 24" Pipe 800 HP of Compression Receipts from NFGSC and Other Storages and Upstream Pipelines Deliveries to Millennium and Empire Capital Cost Approximately $39 M

23. Slide 23: Timber Diluted Earnings per Share

    Fiscal Year 2002 2003 2004 2005 2006 Earnings 0.12 0.12 0.07 0.06 0.07 a Excludes gain from timber sale of +$1.26 b Excludes adj. of gain on timber sale of -$0.01 a b Fiscal Year Timber Diluted Earnings per Share

24. Slide 24: Lake Ontario

    Lake Ontario

25. Slide 25: Utility Accounts Receivable - Customer

    At 09/30/03 At 09/30/04 At 09/30/05 At 09/30/06 30-59 days 7.9 8.3 9 9.2 60-89 days 5.6 5.9 6.5 7.1 90-119 days 5.8 5.4 6.3 6.8 120 days & over 43.8 48.4 54.4 66.7 Reserve for Bad Debt 12.7 12.9 25.1 29.7 Utility Accounts Receivable - Customer $ Millions

26. Slide 26: Utility Bad Debt Tracking

    New York Merchant Function Charge Varies with Cost of Gas Rates Include Allowance Attributable to Uncollectible Expense Residential Non-Residential 2.742% .304% Multiplied by Gas Supply Cost Rate Utility Bad Debt Tracking

27. Slide 27: Average Use Per Residential Customer

    Fiscal Year TME Utility Average Use Per Residential Customer Mcf '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 180.205 173.305 173.431 170.237 164.955 156.044 156.898 152.605 153.207 145.597 132.388 134.153 131

28. Slide 28: Utility Pennsylvania Jurisdiction

    Utility Pennsylvania Jurisdiction May 31, 2006 -- Utility filed a rate case with the Pennsylvania PUC, to increase revenues by $25.9 million. October 12, 2006 -- Utility reported that the parties entered into a proposed settlement. Proposed Base Rate Revenue Increase of $14.3 million If approved as

29. Slide 29: Utility Rate Case Settlements

    Utility Rate Case Settlements * Represents the approximate range of rate base filed for in this case. ** Black-box settlement in both states. New York Pennsylvania Approximate Rate Base $640-$650 MM $280-$290 MM* Approximate Base Rate Revenue Increase $21 MM $14.3 MM Effective Date 8/1/2005 1/1/2007

30. Slide 30: Energy Marketing Customers & Marketing Area

    Energy Marketing Customers & Marketing Area Customers @ FYE 2004 2005 2006 Residential 15,983 14,902 14,963 Commercial/Industrial 4,345 4,265 4,605

31. Slide 31: Energy Marketing Diluted Earnings per Share

    Energy Marketing Diluted Earnings per Share Fiscal Year 2002 2003 2004 2005 2006 Earnings 0.11 0.07 0.07 0.06 0.07 Fiscal Year

32. Slide 32: E&P's Reserves by Region

    Canada - 7% 43.3 BCFE NY PA Gulf Coast - 8% 49.3 BCFE East - 13% 83.0 BCFE CA - 72% 405.1 BCFE Total: 580.7 BCFE / 96.8 MMBOE Oil: 60% Gas: 40% E&P's Reserves by Region (at 09/30/06)

33. Slide 33: E&P's Year End Results

    E&P's Year End Results September 30, 2006 Production: 47.4 BCFE Operating Revenue $346.9 MM Net Income $ 78.4 MM * Drilled 277 New Wells - 97% Success Rate Expenses/Mcfe 4th Quarter Fiscal Year DD&A $1.98 $2.00 LOE $1.14 $1.18 G&A $0.40 $0.49 ($23.3 MM) * Excludes oil & gas impairment of $68.6 milli

34. Slide 34: E&P Capital Expenditures by Division

    2002 2003 2004 2005 2006 2007E East 8.4 9.4 9.5 12.5 27 35.5 West 34.4 11.4 17.4 29.6 36 42.5 Canada 27 30.8 31.4 38.5 42 34.5 Gulf 44.8 24.2 19.4 41.8 103 99.5 $114.6 $75.8 $77.7 $122.4 $208.0 Fiscal Year $US Millions Exploration & Production Capital Expenditures by Division $210-$214

35. Slide 35: E&P Estimated Capital Expenditures 2007

    $US Millions Exploration & Production Estimated Capital Expenditures 2007 Gulf West East Canada Exploration Drlg. 64.5 4 5.6 23.4 G&G 4.3 0 0.5 2.7 Development New 0 0 23 1.9 Development Proved 5.6 28.1 0.4 0 Facilities 17.6 8.6 3.5 2.3 Leasehold Acquisition 5.4 0 1.8 2.7 Other 2.3 1.8 0.3 1.4 $99.7

36. Slide 36: E&P's Forecast Data for Fiscal 2007

    E&P's Forecast Data for Fiscal 2007 Production: 47 - 52 BCFE Number of Wells to be Drilled: 255 - 298 Expenses/Mcfe Estimated Range DD&A $2.10 - $2.30 LOE $1.10 - $1.30 Other Taxes (% of Revenue) $0.10 - $0.14 Other Operating Expenses $8.5 MM - $10.5 MM General and Administrative $ 24 MM - $26 MM

37. Slide 37: E&P Hedging Summary at 9/30/06

    Swaps Volume Average Hedge Price Oil 0.9 MMBBL $37.03 / BBL Gas 0.7 BCF $5.84 /MCF No-cost Collars Volume Lowest Floor Price Highest Ceiling Price Oil 0.2 MMBBL $70.00 / BBL $77.00 / BBL Gas 5.7 BCF $7.42 / MCF $20.53 / MCF Fiscal 2007 Exploration & Production Hedging Summary at 9/30/06 Fiscal 2008

38. Slide 38: NYMEX Settlement Prices

    NYMEX Settlement Prices Natural Gas ($/MMBtu) Oil ($/Bbl) Natural Gas ($/MMBtu) Oil ($/Bbl) At 07/12/06 At 09/21/06 Oct-06 $ 6.382 $76.69 Nov-06 $ 7.737 $77.12 Dec-06 $ 9.307 $77.47 Jan-07 $10.077 $77.74 Feb-07 $10.122 $77.91 Mar-07 $ 9.932 $78.01 Apr-07 $ 8.262 $78.04 May-07 $ 8.097 $78.01 Jun-07 $

39. Slide 39: Sukunka Area Land Map

    Sukunka Area Land Map Monkman ee | AREA OF MUTUAL INTEREST = me Gewell) eg (5 Well) -D 69-C (7th Well) 204 Well) (1 Wel 781 (6% well) TD Working interest lands I Lands to be earned by drilling Gas Wells Drilling Wells @ Paad (4* well) 66-E al National fuel

40. Slide 40: E&P Sukunka Wells

    Seneca's Working Interest: 20% Sukunka b-60-E Production Commenced on December 13, 2004 Current Sales Rate up to 60 MMcf/d * Sukunka d-93-D Well Successfully Completed Production Tests at Rates up to 33 MMcf/d * Sukunka 69-C Currently Drilling Expected Completion during 2nd Quarter FY 2007. Explorat

41. Slide 41: National Fuel Mineral Interests

    935,000 Total Net Acres 778,000 in PA 157,000 in NY National Fuel Mineral Interests

42. Slide 42: E&P East Division Stratigraphic Column

    Devonian Shales - New Joint Venture Bass Island, Lockport, Medina, Whirlpool Upper Devonian Sandstones - Development Project Onondaga Limestone Trenton, Black River Theresa E&P East Division Stratigraphic Column 42

43. Slide 43: E&P Devonian Shale Play

    E&P Devonian Shale Play Northern Appalachian Basin Devonian Shale Fairway 43

44. Slide 44: Earnings Guidance FY 2007

    National Fuel Gas Company Earnings Guidance FY 2007 Earnings Guidance $2.10-$2.30 per share, includes: Exploration & Production Production between 47 and 52 Bcfe Pricing based on 9/21/06 NYMEX futures pricing strip No new 2007 production from announced venture with EOG Resources Pipeline & Storage S

45. Slide 45: Share Buyback

    National Fuel Gas Company Share Buyback Date Authorized: December 8, 2005 Authorized Amount: Up to 8 Million Shares As of 9/30/06: 2,526,550 Shares Repurchased

46. Slide 46: National Fuel Gas Company As a Value Company

    National Fuel Gas Company As a Value Company Financially Strong Diversified Asset Base Prime Location: Proximity to Canada Undeveloped Storage Pipeline Corridor to East Coast Appalachian Acreage Potential Strong Dividend Record

47. Slide 47: Appendix

    APPENDIX &) nationat fuer

48. Slide 48: National Fuel Gas Company NYSE: NFG

    National Fuel Gas Company New York Stock Exchange NFG Shares Outstanding (Approx.) (As of 09/30/06) 83.4 Million Average Daily Trading Volume (12 Months Ended 09/30/06) 445,802 Market Capitalization (Approx.) (As of 11/3/06) $3.2 Billion $1.20 Annual Dividend Rate September Fiscal Year End

49. Slide 49: 1/1/1970 2/1/1970 3/1/1970 4/1/1970 5/1/1970 6/1/1970 7/1/1970 8/1/1970 9/1/1970 10/1/1970 11/1/1970 12/1/1970 1/1/19…

    1/1/1970 2/1/1970 3/1/1970 4/1/1970 5/1/1970 6/1/1970 7/1/1970 8/1/1970 9/1/1970 10/1/1970 11/1/1970 12/1/1970 1/1/1971 2/1/1971 3/1/1971 4/1/1971 5/1/1971 6/1/1971 7/1/1971 8/1/1971 9/1/1971 10/1/1971 11/1/1971 12/1/1971 1/1/1972 2/1/1972 3/1/1972 4/1/1972 5/1/1972 6/1/1972 7/1/1972 8/1/1972 9/1/19

50. Slide 50: NFG Debt Ratings at September 30, 2006

    Standard & Poor's Moody's Fitch, Inc. Long-Term Debt BBB+ Baa1 A- Outlook Stable Stable Stable Commercial Paper A-2 P-2 F2 NFG Debt Ratings at September 30, 2006

51. Slide 51: Capital Resources

    Commercial Paper Program And Bilateral Credit Facilities - Aggregate Of $635 MM $0 MM borrowed at September 30, 2006 $300.0 MM Committed Credit Facility Through September 2010 $0 borrowed Universal Shelf Registration on File - Additional $550 MM Can Be Issued As Debt Or Equity Securities Any offer a

52. Slide 52: Capitalization

    * Long-term Debt includes Current Portion of Long-term Debt. ** Includes Discontinued Operations. $2.36 Billion at September 30, 2005** Long-Term Debt Short-Term Debt Shareholder Equity Capitalization 1128 0 1230 Short-Term Debt 0% Shareholder Equity 52% Long-Term* Debt 48% $2.56 Billion at Septembe

53. Slide 53: Free Cash Flow per Diluted Share

    2002 2003 2004 2005 2006 CFPS 1.18 2.52 1.82 2.29 0.28 Fiscal Year National Fuel Gas Company Free Cash Flow per Diluted Share

54. Slide 54: Expenditures for Long-Lived Assets

    2001 2002 2003 2004 2005 2006 2007E Utility 42.4 51.5 49.9 55.5 50.1 54.4 58 P & S 26 30.3 199.4 23.2 21.1 26 65 E & P 296.4 114.6 75.8 77.7 121.2 208.3 212 Energy Mkt. 0.116 0.1 0.2 0.0102 0 $- 0 Timber 3.7 25.6 3.5 2.8 18.9 2.3 2 Corp & Others 0.937 6.6 50.1 5.7 1.1 3.2 2 International 15.6 4.2 2.

55. Slide 55: Utility Diluted Earnings per Share

    Fiscal Year 2002 2003 2004 2005 2006 Earnings 0.62 0.7 0.59 0.46 0.55 a Excludes SFAS 88 settlement loss of -$0.03 b Excludes out-of-period adjustment to symmetrical sharing of $0.03 a Fiscal Year Utility Diluted Earnings per Share b

56. Slide 56: Utility O&M Expense

    2002 2003 2004 2005 2006 Utility 169 179 191 211 204 Utility O & M Expense * Excludes SFAS 88 settlement loss of -$3.4 million Fiscal Year $ Millions *

57. Slide 57: Pipeline & Storage O&M Expense

    2002 2003 2004 2005 2006 61.3 60.7 65.1 65.4 66.3 * Excludes SFAS 88 settlement loss of -$3.0 million * Pipeline & Storage O & M Expense $ Millions Fiscal Year

58. Slide 58: Exploration & Production Diluted Earnings per Share

    Fiscal Year 2002 2003 2004 2005 2006 Earnings 0.33 0.46 0.61 0.6 0.91 a b a Excludes oil & gas impairment, loss on sale and cum. effect of change in acctg of - $0.85 b Excludes SFAS 88 settlement loss of -$0.01 and Adjustment of loss on sale of oil and gas assets of +$0.06 c Excludes oil & gas impai

59. Slide 59: Seneca's Gross Well Drilling Activity for Fiscal 2006

    Seneca's Gross Well Drilling Activity for Fiscal 2006 Total Exploratory Exploratory Developmental Developmental Success Ratio Successful Unsuccessful Successful Unsuccessful East 152 7 2 143 0 99% West 95 1 0 93 1 99% Gulf 5 3 2 0 0 60% Canada 25 19 2 3 1 88% Total 277 30 6 239 2 97%

60. Slide 60: Comparable GAAP Financial Measure Slides And Reconciliations

    Comparable GAAP Financial Measure Slides And Reconciliations

61. Slide 61: Consolidated Net Cash Used in Investing Activities

    2001 2002 2003 2004 2005 2006 387.9 205.8 104.8 163.2 103.3 297.4 Fiscal Year National Fuel Gas Company Consolidated Net Cash Used in Investing Activities $ Millions

62. Slide 62: Net Income from Continuing Operations

    $138.1 Million 12 Months Ended September 30, 2006 Utility P&S E&P Timber Energy Mkt. Corp. & Other NI 49.8 55.6 21 5.7 5.8 1 National Fuel Gas Company Net Income from Continuing Operations

63. Slide 63: Earnings vs. Dividends Paid

    Earnings Dividends Paid 85 0.95 0.48 86 0.88 0.53 87 0.88 0.58 88 0.83 0.61 89 0.97 0.64 90 0.92 0.68 91 0.82 0.72 92 0.97 0.74 93 1.08 0.76 94 1.16 0.78 95 1.02 0.8 96 1.39 0.82 97 1.49 0.85 98 0.3 0.88 99 1.47 0.91 '00 1.61 0.94 '01 0.82 0.97 '02 1.46 1.02 '03 2.2 1.04 '04 2.01 1.09 '05 2.23 1.13

64. Slide 64: Pipeline & Storage vs. Consolidated NFG Diluted EPS

    2002 2003 2004 2005 2006 Pipeline & Storage 0.37 0.56 0.58 0.71 0.65 All Other Segments 1.09 1.64 1.43 1.52 0.96 $1.46 $2.20 $2.01 $2.23 Fiscal Year Pipeline & Storage vs. Consolidated NFG Diluted Earnings per Share $1.61

65. Slide 65: Timber vs. Consolidated NFG Diluted EPS

    2002 2003 2004 2005 2006 Timber 0.12 1.38 0.06 0.06 0.07 All Other Segments 1.34 0.82 1.95 2.17 1.54 $1.46 $2.20 $2.01 $2.23 Fiscal Year Timber vs. Consolidated NFG Diluted Earnings per Share $1.61

66. Slide 66: Energy Marketing vs. Consolidated NFG Diluted EPS

    2002 2003 2004 2005 2006 Energy Marketing 0.11 0.07 0.07 0.06 0.07 All Other Segments 1.35 2.13 1.94 2.17 1.54 Fiscal Year Energy Marketing vs. Consolidated NFG Diluted Earnings per Share $1.46 $2.20 $2.01 $2.23 $1.61

67. Slide 67: Net Cash Provided by Operating Activities per Diluted Share

    2002 2003 2004 2005 2006 4.29 4 5.27 3.73 5.48 Fiscal Year National Fuel Gas Company Net Cash Provided by Operating Activities per Diluted Share

68. Slide 68: Utility vs. Consolidated NFG Diluted EPS

    2002 2003 2004 2005 2006 Utility 0.62 0.7 0.56 0.46 0.55 All Other Segments 0.84 1.5 1.45 1.77 1.06 $1.46 $2.20 $2.01 $2.23 Fiscal Year Utility vs. Consolidated NFG Diluted Earnings per Share $1.61

69. Slide 69: Utility vs. Consolidated NFG O&M Expense

    2002 2003 2004 2005 2006 Utility 169 179 194 211 204 All Other Segments 225 207 220 193 210 Fiscal Year $ Millions Utility vs. Consolidated NFG O & M Expense $394 $386 $414 $404 $414

70. Slide 70: Pipeline & Storage vs. Consolidated NFG O&M Expense

    2002 2003 2004 2005 2006 Pipeline & Storage 61 61 68 65 66 All Other Segments 333 325 346 339 348 Fiscal Year $ Millions Pipeline & Storage vs. Consolidated NFG O & M Expense $394 $386 $414 $404 $414

71. Slide 71: Exploration & Production vs. Consolidated NFG Diluted EPS

    2002 2003 2004 2005 2006 Exploration & Production 0.33 -0.39 0.66 0.6 0.24 All Other Segments 1.13 2.59 1.35 1.63 1.37 $1.46 $2.20 $2.01 $2.23 Fiscal Year Exploration & Production vs. Consolidated NFG Diluted Earnings per Share $1.61

72. Slide 72: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

73. Slide 73: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

74. Slide 74: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

75. Slide 75: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

76. Slide 76: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

77. Slide 77: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

78. Slide 78: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

79. Slide 79: $1.46 $2.20 $2.01 $2.23 $1.61

    $1.46 $2.20 $2.01 $2.23 $1.61

National Fuel Gas — Investor Presentation (November 2006) on 6ix