National Fuel Gas Company · NYSE:NFG
National Fuel Gas — BMO Capital Markets 2009 North American Unconventional Gas Conference
17 slides from National Fuel Gas's conference presentation, Jan 13, 2009
Slide 1: BMO Capital Markets 2009 North American Unconventional Gas Conference
The BMO Capital Markets 2009 North American Unconventional Gas Conference January 13, 2009
Slide 2: Safe Harbor For Forward Looking Statements
Safe Harbor For Forward Looking Statements This presentation may contain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including statements regarding future prospects, plans, performance and capital structure, anticipated capital expenditures and co
Slide 3: National Fuel Gas Company Business Segment Reporting
National Fuel Gas Company Business Segment Reporting
Slide 4: Capital Expenditures by Segment
National Fuel Gas Company Capital Expenditures(1) by Segment Utility Pipeline & Storage Exploration & Production (1) Capital Expenditures exclude all expenditures associated with Discontinued Operations
Slide 5: Net Income from Continuing Operations
National Fuel Gas Company Net Income from Continuing Operations(1) Timber $0.1 MM Energy Mkt. $5.9 MM 2.2% $268.7 Million 12 Months Ended 9/30/08 Excludes income from Discontinued Operations and any gain/loss on disposal of Discontinued Operations Corp. & All Other $0.5 MM
Slide 6: Pipeline & Storage Projects: Empire Connector, Storage Expansion, Millennium
11 Empire Connector In-service as of December 2008 Storage Expansion Increase Storage Capacity by 8.5 Bcf West to East / Appalachian Lateral Proposed pipeline project Millennium Pipeline
Slide 7: Exploration & Production Seneca Resources Corporation
Exploration & Production Seneca Resources Corporation
Slide 8: Exploration & Production Proved Reserves
Exploration & Production Proved Reserves @9/30 491 Bcfe 503 Bcfe West - California Reserves: 339 Bcfe (67%) Prod: 52 Mmcfed (8,600 Boepd) Gulf of Mexico Reserves: 33 Bcfe (7%) Production: 38 Mmcfed East - Appalachia Reserves: 131 Bcfe (26%) Production: 22 Mmcfed
Slide 9: Exploration & Production Capital Expenditures
Exploration & Production Capital Expenditures Major shift in capital allocation from higher-risk exploration to lower-risk development will lead to improved Finding & Development costs $208. 3 $175. 8 $192.2 $285 East 2006 2007 2008 2009E 13% 22% 34% 69% West 2006 2007 2008 2009E 17% 24% 33% 19% Gul
Slide 10: Recent Daily Production Rates
Marcellus Shale Recent Daily Production Rates Cabot 6.4 MMCFD All production figures from individual company disclosures Marcellus Outcrop Seneca Fee Acreage Seneca Lease Acreage EOG/Seneca Resources 1.4 MMCFD (25 days) Atlas Energy Multiple Verticals: 1-3 MMCFD Chesapeake 2 Well Avg.: 4.5 MMCFD Ran
Slide 11: 3rd Largest Acreage Holder
Marcellus Shale 3rd Largest Acreage Holder Company Acres Chesapeake 1,200,000 Range 900,000 Seneca 725,000 Atlas 580,000 ("under control") Equitable 400,000 Chief 350,000 XTO 280,000 Exco 276,000 EOG 220,000 All acreage positions taken from most recent individual company disclosures, available from
Slide 12: EOG JV Drilling Update
Marcellus Shale EOG JV Drilling Update Horizontal Well Summary Drilling Summary 2009: Anticipated 10 Horizontal Wells (1) Horizontal Well #2 was "junked"
Slide 13: Seneca Resources-EOG Joint Venture
Marcellus Shale Seneca Resources-EOG Joint Venture Joint Venture Terms JV Agreement Originated November, 2006, 10 Year Term tied to a Continuous Drilling commitment. Total Acreage EOG can earn 50% WI in 200,000 Seneca acres. Seneca can earn 50% WI in ~120,000 EOG acres. Prospect Selection EOG prospe
Slide 14: Log and Core Evaluation
Marcellus Shale Log and Core Evaluation Depth TVD: 5,000' - 8,000' Thickness 50' - 200' Total Organic Content (TOC) 2% - ^ 10% Thermal Maturity 1% - 3% Effective Porosity 3% - 12% Pressure (psi/foot) 0.43 - 0.65 Water Saturation 12% - 35% Gas-in-Place (Bcfe/Section) 30 - 150 Anticipated EUR/Horizont
Slide 15: PA State (DCNR) Lease Sale - 9/3/08
Marcellus Shale PA State (DCNR) Lease Sale - 9/3/08 Seneca was the high bidder on 4 of 6 tracts Total of the 4 high bids - $74 million 10-year lease terms Lycoming & Tioga Counties Marcellus Shale impact 150-200 potential horizontal well locations Acreage is relatively contiguous in the core area of
Slide 16: Seneca as a Major Marcellus Operator
Marcellus shale Seneca Operations New DCNR Leases Adjusted EOG JV Terms Seneca as a major Marcellu s Operato r ~525,000 net acres to evaluate as operator Plan to drill 6-8 vertical "test" wells this fiscal year, beginning March '09 Begin horizontal program in July '09 Marcellus acreage prioritized b
Slide 17: Summary
Summary Seneca is the third largest acreage holder in the Marcellus Shale play EOG Joint Venture Initial exploration at minimal cost Gained experience of an industry leader 2009 is a big year Development drilling on Joint Venture acreage March '09 - Seneca drilling operations commence Reconciliation
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