National Fuel Reports 2007 Earnings

National Fuel Gas Company ("National Fuel” or the "Company”) (NYSE:NFG) today announced record consolidated earnings for its fourth quarter and fiscal year ended September 30, 2007, of $157.7 million or $1.84 per share and $337.5 million or $3.96 per share, respectively. HIGHLIGHTS National Fuel continues to provide superior total returns for our shareholders. During the past year, three years and five years, National Fuel’s total returns of 32%, 83% and 185%, far exceeded total returns of the S&P 500 of 16%, 45% and 105%, respectively. Quarterly operating results, before items impacting comparability, increased 20% to $0.40 per share, an increase of $0.07 per share from the prior year’s fourth quarter. Higher average commodity prices realized in the Exploration and Production segment were the main reason for the increase. Fiscal year operating results, before items impacting comparability, increased 10% to $2.26 per share, an increase of $0.21 per share from the prior fiscal year. Again, higher average realized commodity prices in the Exploration and Production segment were the main contributor to this earnings growth. The expiration of old hedges and the addition of new hedges at much higher prices predict a positive impact on earnings in the future. Adding to the operating results, the Company successfully sold its Canadian exploration operations for $232.0 million and realized a pre-tax gain of $159.9 million ($120.3 million after-tax). Prudent planning on the timing and structure of this sale enabled us to maximize value received and to minimize the associated effective tax rate on the sale to less than 25 percent. Seneca Resources Corporation ("Seneca”) drilled or participated in the drilling of 233 wells in Appalachia during fiscal 2007, representing a 53% increase from fiscal 2006. This drilling activity allows Seneca to reaffirm its estimated ultimate recoveries ("EURs”), production profiles, and costs to drill that are consistent with previous disclosures. Netherland, Sewell & Associates (Netherland Sewell) completed a review of Seneca’s Appalachian acreage, and the Company disclosed total 3P (proved, probable and possible) reserves in Appalachia in a press release issued October 11, 20071. The results of Netherland Sewell’s study included 10.4 Bcfe of proved undeveloped reserves, helping to increase the total proved reserves in Appalachia by 33% to 110 Bcfe, including proved developed reserves associated with our increased drilling activity. The Company is increasing its GAAP earnings guidance for fiscal 2008 to a range of $2.50 to $2.70 per diluted share. Previous guidance had been in a range of $2.45 to $2.65. A conference call is scheduled for Friday, November 9, 2007 at 11:00 am Eastern Time. MANAGEMENT COMMENTS Philip C. Ackerman, Chairman and Chief Executive Officer of National Fuel Gas Company stated: "We had both a very good fourth quarter and a very good year. Underlying operations’ earnings were up 20% on the quarter and 10% on the year and were capped off by a $120 million after-tax gain on the sale of our Canadian operations. As we have shared with the investment community for many years, National Fuel’s corporate objective is to grow shareholder value through timely investment in the energy industry. I do not believe that long-term shareholder value can be built by constantly selling assets; nevertheless, the sale of our Canadian operations is our fourth significant sale since I became chairman in 2002, and the total after tax profits on those sales have been over $212 million. National Fuel and its Board of Directors will continue to do what is in the best interest of growing shareholder value. The financial community has recognized the sound and disciplined leadership demonstrated by the management and board of National Fuel, as is apparent based on our superior total shareholder returns. Over the past five years, three years, and fiscal year, shareholders have enjoyed overall total returns of 185%, 83%, and 32%, respectively, which far exceed returns of the S&P 500 of 105%, 45%, and 16% over comparable time periods. These outstanding returns are due in part to our record of paying a dividend for 105 consecutive years with 37 consecutive years of increases. In short, we had a very successful 2007 fiscal year, and expect to continue that success in fiscal 2008 with earnings growth expected in the range of 10% to 19%. We will continue our longstanding dividend record and strive to continue our record of delivering outstanding returns to our shareholders in 2008 and beyond.” David F. Smith, President and Chief Operating Officer of National Fuel Gas Company added: "The sale of our Canadian assets represents a considerable step in our plan to streamline and refocus our Exploration and Production operations. As part of this plan, our initiative to prudently grow our Appalachian program has been evident, as illustrated by our 53% increase in drilling activity in Appalachia during the last year. The completion of our reserve and prospective resource study by Netherland Sewell confirms our long-held belief that we have the potential to develop this important asset in a manner that is both strategic and logical. Current well economics based on today’s commodity prices and drilling rig rates have allowed us to ramp up our drilling program. We anticipate drilling 280 wells and 350 wells in the Appalachian shallow Devonian formation in fiscal years 2008 and 2009, as well as continuing to explore the Marcellus Shale through our partnering arrangement with EOG Resources. Construction is underway on the Empire Connector and we are looking to have the pipeline in service at this time next year. We are also pleased that our Conservation Incentive Program has been authorized for early implementation in our New York utility jurisdiction, offering our customers the opportunity to save on their heating bills this winter.” 1The Company’s October 11, 2007, press release is not incorporated by reference into this press release or any document filed by the Company with the Securities and Exchange Commission. SUMMARY OF RESULTS National Fuel had consolidated earnings for the quarter ended September 30, 2007, of $157.7 million, an increase of $155.7 million, or $1.82 per share, from the prior year’s fourth quarter (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 fiscal year ended September 30, 2007, of $337.5 million, or $3.96 per share, increased $199.4 million, or $2.35 per share, from the prior year.   Three Months     Year Ended Ended September 30, Ended September 30, 2007   2006 2007   2006 (in thousands except per share amounts) Reported GAAP earnings $ 157,690 $ 1,968 $ 337,455 $ 138,091 Items impacting comparability1: Gain on disposal of Canadian operations (120,301 ) (120,301 ) (Income) loss from discontinued operations (3,094 ) 26,617 (15,479 ) 46,523 Reversal of reserve for preliminary project costs (4,787 ) Resolution of purchased gas contingency (2,344 ) Discontinuation of hedge accounting (1,888 ) Out-of-period symmetrical sharing adjustment (2,551 ) Income tax adjustments (6,122 )         Operating results $ 34,295   $ 28,585 $ 192,656   $ 175,941     Reported GAAP earnings per share $ 1.84 $ 0.02 $ 3.96 $ 1.61 Items impacting comparability1: Gain on disposal of Canadian operations (1.41 ) (1.41 ) (Income) loss from discontinued operations (0.03 ) 0.31 (0.18 ) 0.54 Reversal of reserve for preliminary project costs (0.06 ) Resolution of purchased gas contingency (0.03 ) Discontinuation of hedge accounting (0.02 ) Out-of-period symmetrical sharing adjustment (0.03 ) Income tax adjustments (0.07 )         Earnings excluding these items $ 0.40   $ 0.33 $ 2.26   $ 2.05     1 See discussion of these individual items below. As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s operating results when comparing the 2007 fourth quarter and fiscal year to the comparable periods in fiscal 2006. Excluding these items, operating results for the current fourth quarter of $34.3 million or $0.40 per share increased $5.7 million or $0.07 per share. Excluding these items, operating results for the fiscal year ended September 30, 2007, of $192.7 million, or $2.26 per share, increased $16.7 million, or $0.21 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below. DISCUSSION OF RESULTS BY SEGMENT 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 loss of approximately $3.4 million, or $0.04 per share for the quarter ended September 30, 2007, increased $2.0 million, or $0.02 per share, compared to the prior year’s fourth quarter. Substantially all of the Utility segment’s loss for the quarter was due to a lower non-cash accrual of interest income on a pension-related regulatory asset in Distribution’s New York Division. Under Distribution’s most recent New York rate agreement, the interest income Distribution can accrue is reduced as the funded status of the defined-benefit pension plan improves. Ron Tanski, President of Distribution and Principal Financial Officer of the Company commented: "It’s counter intuitive to think that a decrease in income can be a good thing, but this decrease in interest income is driven by the strong performance of our pension plan assets over the past year.” In the New York Division, the loss increased $1.6 million due in part to the lower interest income accrual on the pension-related regulatory asset discussed above. Slightly lower usage per customer during the quarter and certain routine regulatory adjustments also contributed to the increased loss for the quarter. Partially offsetting these items were lower operating expenses and a lower effective tax rate. In the Pennsylvania division, the loss increased $0.4 million compared to the prior year’s fourth quarter, mainly due to lower usage per customer and a higher effective tax rate. An increase in base rates in Pennsylvania partially offset the decrease. On January 1, 2007, Distribution implemented the Settlement Agreement approved by the Pennsylvania Public Utility Commission, which, among other things, provided for a $14.3 million (before tax) annual base rate increase. The Utility segment’s earnings of $50.9 million, or $0.60 per share, for the fiscal year ended September 30, 2007, increased $1.1 million, or $0.02 per share, compared to the fiscal year ended September 30, 2006. Earnings in Distribution’s New York Division for the fiscal year ended September 30, 2007, of $33.8 million decreased $6.3 million compared to the prior year. The comparability of the fiscal year results is impacted by a $2.6 million out-of-period adjustment recorded in the first quarter of fiscal 2006 to correct Distribution’s calculation of the symmetrical sharing component of the New York Division’s gas adjustment rate. Excluding this item, operating results in the New York Division decreased $3.7 million. This decrease is mainly due to lower interest income accrued on a pension related regulatory asset as described above. Higher bad debt expense, property taxes, interest expense and certain routine regulatory adjustments also contributed to the decline. A 2.2 percent increase in residential customer usage per account and a lower effective tax rate partially offset the decrease. For the fiscal year ended September 30, 2007, earnings in Distribution’s Pennsylvania Division of $17.1 million increased $7.3 million compared to the prior year. Earnings increased primarily due to an increase in base rates. The impact of weather that was 5.6 percent colder than the prior year and a lower effective tax rate also contributed to the increase. Partially offsetting the increase was higher interest expense. 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 $13.3 million, or $0.16 per share, for the quarter ended September 30, 2007, increased $3.1 million, or $0.04 per share, when compared with the same period in the prior fiscal year. The increase is primarily due to higher efficiency gas revenue. In the fourth quarter of fiscal 2006, Supply Corporation recorded a lower of cost or market adjustment of $4.7 million to the value of efficiency gas held in inventory at the end of the quarter to reduce the value of the efficiency gas inventory to reflect current market prices at September 30, 2006. A similar adjustment was not required in the fourth quarter of fiscal 2007. In addition, higher transportation and storage revenues and lower depreciation expense contributed to the growth in earnings. Partially offsetting these items was an increase in operating expenses and interest expense and a higher effective tax rate for the quarter. Earnings of $56.4 million, or $0.66 per share, for the fiscal year ended September 30, 2007, increased $0.8 million, or $0.01 per share, when compared with the fiscal year ended September 30, 2006. The comparability of the results for the fiscal year ended September 30, 2007, is impacted by the $4.8 million reversal of the reserve for preliminary project costs on the Empire Connector project. Empire recorded a reserve against any project development costs until such time that it was probable that the project was likely to be built and placed in service. In June 2007, Empire and KeySpan Gas East Corporation signed a firm transportation service agreement, which essentially committed Empire to construct the Empire Connector Pipeline (construction began in September). The comparability of the results for the fiscal year ended September 30, 2007 is also impacted by a $1.9 million gain associated with Empire’s prepayment in the first quarter of 2007 of its project financing debt that was in place when the Company acquired Empire in 2003. Upon the payment of that debt, the corresponding interest rate collar no longer qualified for hedge accounting, and gains and losses could no longer be deferred. Excluding these items, operating results decreased $6.0 million, or $0.07 per share, for the fiscal year ended September 30, 2007, mainly due to lower efficiency gas revenues, higher interest expense and a higher effective tax rate for the fiscal year. The decline in efficiency gas revenues is due to lower natural gas prices and lower retained volumes. The lower retained volumes of efficiency gas was the result of a FERC-approved settlement of a complaint filed by various parties against Supply Corporation under Sections 5(a) and 13 of the Natural Gas Act (the "FERC settlement”) that reduced the percentages of transported gas which Supply Corporation retains for fuel, company use, surface operating and lost and unaccounted for, generally effective as of December 1, 2006. The FERC settlement also required Supply Corporation to recognize a higher level of expense for post-retirement benefits, which resulted in higher operating expenses for the fiscal year. Partially offsetting these items, the FERC settlement lowered Supply Corporation’s depreciation rates, which resulted in lower depreciation expense for the fiscal year. 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, the Appalachian region, and in the Gulf Coast regions of Texas, Louisiana and Alabama. The Exploration and Production segment’s earnings in the fourth quarter of fiscal 2007 of $145.7 million or $1.70 per share increased $152.9 million or $1.78 per share when compared with the prior year’s fourth quarter loss. On August 31, 2007, Seneca completed the sale of its Canadian subsidiary. As a result of this transaction, the Company is presenting the Canadian operations as discontinued operations. Earnings in the fourth quarter of fiscal 2007 include earnings from discontinued operations of $123.4 million, which included $3.1 million of income during the months of July and August plus a $120.3 million gain on the sale of the Canadian operations. Earnings in the fourth quarter of fiscal 2006 include a loss from discontinued operations of $26.6 million. The results of discontinued operations are discussed later in this document and are excluded from the remaining discussion of the Exploration and Production segment’s quarterly results below. Excluding discontinued operations, operating results in the Exploration and Production segment increased $2.9 million, or $0.03 per share, for the fourth quarter of fiscal 2007. The increase was mainly due to higher crude oil and natural gas prices realized after hedging. For the quarter ended September 30, 2007, the weighted average oil price received by Seneca (after hedging) was $61.35 per barrel ("Bbl”), an increase of $16.51 per Bbl, or 36.8 percent from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended September 30, 2007, was $7.13 per thousand cubic feet ("Mcf”), an increase of $0.57 per Mcf, or 8.7 percent, from the prior year’s quarter. Other items impacting operating results for the quarter were higher operating expenses and a higher effective tax rate. The increase in depletion expense, which, on a per unit basis, increased $0.35 per thousand cubic feet equivalent ("Mcfe”) to $2.19 per Mcfe was mainly due to a reduction in proved reserves and an increase in costs to be depleted as a result of capital spending and higher anticipated future development costs. The increase in lease operating expenses ("LOE”) is due primarily to escalating service costs and an increase in the number of producing properties compared to the prior year’s quarter. The Exploration and Production segment’s earnings of $210.7 million, or $2.47 per share, for the fiscal year ended September 30, 2007, increased $189.7 million, or $2.23 per share, when compared with the fiscal year ended September 30, 2006. As discussed above, as a result of Seneca’s sale of its Canadian subsidiary, the Company is presenting the Canadian operations as discontinued operations. Earnings for the fiscal year ended September 30, 2007, include earnings from discontinued operations of $135.8 million, which consists of $15.5 million of income from discontinued operations, and a $120.3 million gain on the sale of the Canadian operations. Earnings for the fiscal year ended September 30, 2006, include a loss from discontinued operations of $46.5 million. The results of discontinued operations are discussed later in this document and are excluded from the remaining discussion of the Exploration and Production segment’s fiscal year results below. The comparability of the Exploration and Production segment’s earnings for the fiscal years ended September 30, 2007, and 2006, is also impacted by a $6.1 million benefit to earnings in 2006 related to income taxes. The Company reversed a valuation allowance associated with the capital loss carryforward that resulted from the 2003 sale of certain Seneca oil properties and also recognized a tax benefit related to the favorable resolution of certain open tax issues. Excluding discontinued operations and the tax adjustments discussed above, operating results for the fiscal year ended September 30, 2007, in the Exploration and Production segment increased $13.5 million, or $0.17 per share. The increase was primarily due to higher crude oil and natural gas prices realized after hedging. For the fiscal year ended September 30, 2007, the weighted average oil price received by Seneca (after hedging) was $51.68 per Bbl, an increase of $11.42 per Bbl, or 28.4 percent from the prior year. The weighted average natural gas price received by Seneca (after hedging) for the fiscal year ended September 30, 2007, was $7.25 per Mcf, an increase of $0.23 per Mcf, or 3.3 percent, from the prior year. The increase in commodity prices combined with a 1.7 Bcfe increase in natural gas production more than offset a 0.6 Bcfe decrease in crude oil production. Other items impacting operating results for the fiscal year were higher operating expenses and a higher effective tax rate. The increase in depletion expense is mainly due to a reduction in proved reserves, an increase in costs to be depleted as a result of capital spending and higher anticipated future development costs. The increase in LOE was mostly in the Gulf of Mexico and Appalachia. In the Gulf of Mexico the increase in LOE was due to the hurricane related shut-ins experienced in fiscal year 2006 and new producing fields coming on line in fiscal 2007. In Appalachia, the increase was due to the completion of more than two hundred wells in fiscal 2007 and an overall increase in servicing costs. Energy Marketing The Energy Marketing segment’s operations are carried out by National Fuel Resources, Inc. ("NFR”). 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 net loss for the fourth quarter of fiscal 2007 of $0.8 million, or $0.01 per share, increased $0.7 million compared to the prior year’s fourth quarter loss of $0.1 million, and was due to changes in the effective tax rate and slightly lower margins driven by higher pipeline reservation charges related to storage capacity. Earnings for the fiscal year ended September 30, 2007, of $7.7 million, or $0.09 per share, increased $1.9 million, or $0.02 per share, compared to the fiscal year ended September 30, 2006. The comparability of the fiscal year 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 fiscal 2007. Excluding this item, operating results for the Energy Marketing segment for the fiscal year ended September 30, 2007, were flat compared to the fiscal year ended September 30, 2006. 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 September 30, 2007, of $0.7 million or $0.01 per share, is an increase of $0.2 million from the prior year’s fourth quarter earnings. The increase is due to higher margins as a result of the strategically timed sale of approximately 3.1 million board feet of timber rights during the quarter. Earnings for the fiscal year ended September 30, 2007, of $3.7 million decreased $2.0 million from the prior year’s earnings. The decrease is due to lower margins on logs, green lumber and kiln-dried lumber. The decreased margins are mainly due to lower sales volumes. The unfavorable weather conditions early in the year made harvesting difficult resulting in lower harvest volumes for the fiscal year. This, combined with lower unit prices realized on the non-core species, resulted in lower revenues for veneer logs, kiln-dried cherry lumber and soft and hard maple green lumber. Although prices realized on certain species declined, the price realized on our core product, black cherry veneer logs, increased nearly 3 percent from the prior year. The price realized on black cherry veneer has increased consistently every year for the past several years, and that trend is expected to continue. Lower depletion expense due to lower harvested volumes partially offset the decrease in revenues. Corporate and All Other Other direct, wholly-owned subsidiaries of the Company include: Horizon Energy Development, Inc., a corporation formerly engaged in the development of international power projects; 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 September 30, 2007, were $2.2 million, an increase of $2.2 million when compared to the prior year’s fourth quarter loss. The increase is the result of higher intercompany interest income, lower interest expense and a lower effective tax rate. Earnings in the Corporate and All Other category for the fiscal year ended September 30, 2007, were $8.1 million, an increase of $8.0 million when compared to the prior year’s earnings. The increase is mainly due to higher margins in Horizon LFG, Inc., higher income from unconsolidated subsidiaries in Horizon Power, Inc., higher intercompany interest income, lower interest expense and a lower effective tax rate. Discontinued Operations Earnings from discontinued operations for the quarter ended September 30, 2007, of $123.4 million is an increase of $150.0 million from a loss of $26.6 million for the quarter ended September 30, 2006. The increase is primarily the result of Seneca’s sale of its Canadian subsidiary and the recording of a gain of approximately $120.3 million. In addition Seneca recorded an impairment of its Canadian oil and gas producing properties in the quarter ended September 30, 2006, that did not recur in the quarter ended September 30, 2007. Earnings from discontinued operations for the fiscal year ended September 30, 2007, of $135.8 million was an increase of $182.3 million from a loss of $46.5 million for the fiscal year ended September 30, 2006. The increase is primarily the result of Seneca’s sale of its Canadian subsidiary and the recording of a gain of approximately $120.3 million. In addition Seneca recorded an impairment of its Canadian oil and gas producing properties in the fiscal year ended September 30, 2006, that did not recur in the fiscal year ended September 30, 2007. EARNINGS GUIDANCE The Company is increasing its GAAP earnings guidance for fiscal 2008 to a range of $2.50 to $2.70 per diluted share. Previous guidance had been in a range of $2.45 to $2.65 per diluted share. The increase is driven by the layering in of additional hedges in the Exploration and Production segment at prices higher than those assumed in the Company’s base forecast. EARNINGS TELECONFERENCE The Company will host a conference call on Friday, November 9, 2007 at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit National Fuel’s Web site at nationalfuelgas.com and click on the "For Investors” link at the top of the homepage. For those without Internet access, access is also provided by dialing (toll-free) 1-800-599-9829, and using the passcode "56831965.” 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 "19287282.” Both the webcast and telephonic replay will be available until the close of business on Friday, November 16, 2007. National Fuel is an integrated energy company with $3.9 billion in assets comprised of the following five operating segments: Utility, Pipeline and Storage, Exploration and Production, 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. National Fuel Gas Company (the "Company”) and its directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the Company’s 2008 Annual Meeting of Stockholders (the "Annual Meeting”). The Company plans to file a proxy statement with the Securities and Exchange Commission (the "SEC”) in connection with this solicitation of proxies for the Annual Meeting (the "2008 Proxy Statement”). Information regarding the names of the Company’s directors and executive officers and their respective interests in the Company by security holdings or otherwise is set forth in the Company’s proxy statement relating to the 2007 annual meeting of stockholders, which may be obtained free of charge at the SEC’s website at http://www.sec.gov and the Company’s website at http://www.nationalfuelgas.com. Additional information regarding the interests of such potential participants will be included in the 2008 Proxy Statement and other relevant documents to be filed with the SEC in connection with the Annual Meeting. Promptly after filing its definitive 2008 Proxy Statement for the Annual Meeting with the SEC, the Company will mail the definitive 2008 Proxy Statement and a proxy card to each stockholder entitled to vote at the Annual Meeting. WE URGE INVESTORS TO READ THE 2008 PROXY STATEMENT (INCLUDING ANY AMENDMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain, free of charge, copies of the 2008 Proxy Statement and any other documents filed by the Company with the SEC in connection with the Annual Meeting at the SEC’s website (http://www.sec.gov), at the Company’s website (http://www.nationalfuelgas.com) or by contacting Secretary, National Fuel Gas Company, 6363 Main Street, Williamsville, New York 14221, (716) 857-7000. Certain statements contained herein, including those regarding future earnings, developments and operational results, and those which use words such as "anticipates,” "estimates,” "expects,” "intends,” "plans,” "predicts,” "projects,” 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 laws and regulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations; 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; impairments under the Securities and Exchange Commission’s full cost ceiling test for natural gas and oil reserves; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; 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, including changes in the plans of the sponsors of the proposed Millennium Pipeline with respect to that project; 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 or from issuances of 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; uncertainty of oil and gas reserve estimates; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; 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; regarding foreign operations, changes in trade and monetary policies, inflation and exchange rates, taxes, operating conditions, laws and regulations related to foreign operations, and political and governmental changes; 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 or to reflect the occurrence of unanticipated events.   NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS QUARTER ENDED SEPTEMBER 30, 2007           (Thousands of Dollars) Utility Pipeline & Storage Exploration & Production * Energy Marketing Timber Corporate / All Other Consolidated   Fourth quarter 2006 GAAP earnings $ (1,419 ) $ 10,248 $ (7,181 ) $ (110 ) $ 469 $ (39 ) $ 1,968 Items impacting comparability: Loss from discontinued operations       26,617           26,617   Fourth quarter 2006 operating results (1,419 ) 10,248 19,436 (110 ) 469 (39 ) 28,585   Drivers of operating results Base rate increase in Pennsylvania 648 648 Usage (1,592 ) (1,592 ) Routine regulatory adjustments (627 ) (627 )   Higher transportation and storage revenues 510 510 Higher efficiency gas revenues 4,259 4,259 Lower (higher) operating expenses 2,309 (423 ) 1,886 Lower (higher) depreciation / depletion 710 (2,278 ) (1,568 )   Higher crude oil prices 8,843 8,843 Higher natural gas prices 1,840 1,840 Higher natural gas production 660 660 Lower crude oil production (853 ) (853 ) Higher lease operating expenses (1,762 ) (1,762 ) Higher general & administrative expenses (1,182 ) (245 ) (1,427 )   Higher (lower) margins (328 ) 582 254   Higher (lower) interest income ** (4,785 ) 392 (4,393 ) (Higher) lower interest expense ** (803 ) 958 155   Effective tax rate impact - positive (negative) 1,671 (1,064 ) (2,876 ) (353 ) 680 (1,942 )   All other / rounding   359     (126 )   488     23     (131 )   206     819     Fourth quarter 2007 operating results (3,436 ) 13,311 22,316 (768 ) 675 2,197 34,295 Items impacting comparability: Gain on disposal of discontinued operations *** 120,301 120,301 Earnings from discontinued operations       3,094           3,094   Fourth quarter 2007 GAAP earnings $ (3,436 ) $ 13,311   $ 145,711   $ (768 ) $ 675   $ 2,197   $ 157,690       * Includes discontinued operations ** Includes intercompany income and expenses *** Includes positive effective tax rate impact of $16,384.   NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE QUARTER ENDED SEPTEMBER 30, 2007           Utility Pipeline & Storage Exploration & Production * Energy Marketing Timber Corporate / All Other Consolidated   Fourth quarter 2006 GAAP earnings $ (0.02 ) $ 0.12 $ (0.08 ) $ - $ 0.01 $ (0.01 ) $ 0.02 Items impacting comparability: Loss from discontinued operations       0.31           0.31   Fourth quarter 2006 operating results (0.02 ) 0.12 0.23 - 0.01 (0.01 ) 0.33   Drivers of operating results Base rate increase in Pennsylvania 0.01 0.01 Usage (0.02 ) (0.02 ) Routine regulatory adjustments (0.01 ) (0.01 )   Higher transportation and storage revenues 0.01 0.01 Higher efficiency gas revenues 0.05 0.05 Lower (higher) operating expenses 0.03 (0.01 ) 0.02 Lower (higher) depreciation / depletion 0.01 (0.03 ) (0.02 )   Higher crude oil prices 0.10 0.10 Higher natural gas prices 0.02 0.02 Higher natural gas production 0.01 0.01 Lower crude oil production (0.01 ) (0.01 ) Higher lease operating expenses (0.02 ) (0.02 ) Higher general & administrative expenses (0.01 ) - (0.01 )   Higher (lower) margins - 0.01 0.01   Higher (lower) interest income ** (0.06 ) - (0.06 ) (Higher) lower interest expense ** (0.01 ) 0.01 -   Effective tax rate impact - positive (negative) 0.02 (0.01 ) (0.03 ) - 0.01 (0.01 )   All other / rounding   0.01     -     -     (0.01 )   (0.01 )   0.01     -     Fourth quarter 2007 operating results (0.04 ) 0.16 0.26 (0.01 ) 0.01 0.02 0.40 Items impacting comparability: Gain on disposal of discontinued operations 1.41 1.41 Earnings from discontinued operations       0.03           0.03   Fourth quarter 2007 GAAP earnings $ (0.04 ) $ 0.16   $ 1.70   $ (0.01 ) $ 0.01   $ 0.02   $ 1.84       * Includes discontinued operations ** Includes intercompany income and expenses   NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS YEAR ENDED SEPTEMBER 30, 2007           (Thousands of Dollars) Utility Pipeline & Storage Exploration & Production * Energy Marketing Timber Corporate / All Other Consolidated   Fiscal 2006 GAAP earnings $ 49,815 $ 55,633 $ 20,971 $ 5,798 $ 5,704 $ 170 $ 138,091 Items impacting comparability: Loss from discontinued operations 46,523 46,523 Out-of-period adjustment to symmetrical sharing (2,551 ) (2,551 ) Income tax adjustments       (6,122 )         (6,122 ) Fiscal 2006 operating results 47,264 55,633 61,372 5,798 5,704 170 175,941   Drivers of operating results Base rate increase in Pennsylvania 5,507 5,507 Usage 1,576 1,576 Colder weather 2,536 2,536 Routine regulatory adjustments (1,484 ) (1,484 )   Lower efficiency gas revenues (2,739 ) (2,739 ) Higher operating expenses (765 ) (1,466 ) (2,231 ) Higher property taxes (767 ) (767 ) Lower (higher) depreciation / depletion 2,529 (7,184 ) 1,160 (3,495 )   Higher crude oil prices 24,065 24,065 Higher natural gas prices 2,984 2,984 Higher natural gas production 7,946 7,946 Lower crude oil production (2,406 ) (2,406 ) Higher lease operating expenses (4,586 ) (4,586 ) Higher general & administrative expenses (575 ) (334 ) (909 )   Higher (lower) margins (64 ) (2,499 ) 1,028 (1,535 ) Income from unconsolidated subsidiaries 907 907   Higher (lower) interest income ** (4,692 ) 4,060 (632 ) (Higher) lower interest expense ** (1,310 ) (3,179 ) 660 (3,829 )   Effective tax rate impact - positive (negative) 3,010 (930 ) (6,285 ) (498 ) 1,962 (2,741 )   All other / rounding   11     (137 )   (442 )   83     (303 )   (664 )   (1,452 )   Fiscal 2007 operating results 50,886 49,711 74,889 5,319 3,728 8,123 192,656 Items impacting comparability: Gain on disposal of discontinued operations *** 120,301 120,301 Earnings from discontinued operations 15,479 15,479 Reversal of reserve for preliminary project costs 4,787 4,787 Resolution of a purchased gas contingency 2,344 2,344 Discontinuance of hedge accounting     1,888             1,888   Fiscal 2007 GAAP earnings $ 50,886   $ 56,386   $ 210,669   $ 7,663   $ 3,728   $ 8,123   $ 337,455       * Includes discontinued operations ** Includes intercompany income and expenses *** Includes positive effective tax rate impact of $16,384.   NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE YEAR ENDED SEPTEMBER 30, 2007           Utility Pipeline & Storage Exploration & Production * Energy Marketing Timber Corporate / All Other Consolidated   Fiscal 2006 GAAP earnings $ 0.58 $ 0.65 $ 0.24 $ 0.07 $ 0.07 $ 0.00 $ 1.61 Items impacting comparability: Loss from discontinued operations 0.54 0.54 Out-of-period adjustment to symmetrical sharing (0.03 ) (0.03 ) Income tax adjustments       (0.07 )         (0.07 ) Fiscal 2006 operating results 0.55 0.65 0.71 0.07 0.07 0.00 2.05   Drivers of operating results Base rate increase in Pennsylvania 0.06 0.06 Usage 0.02 0.02 Colder weather 0.03 0.03 Routine regulatory adjustments (0.02 ) (0.02 )   Lower efficiency gas revenues (0.03 ) (0.03 ) Higher operating expenses (0.01 ) (0.02 ) (0.03 ) Higher property taxes (0.01 ) (0.01 ) Lower (higher) depreciation / depletion 0.03 (0.08 ) 0.01 (0.04 )   Higher crude oil prices 0.28 0.28 Higher natural gas prices 0.03 0.03 Higher natural gas production 0.09 0.09 Lower crude oil production (0.03 ) (0.03 ) Higher lease operating expenses (0.05 ) (0.05 ) Higher general & administrative expenses - -   Higher (lower) margins - (0.03 ) 0.01 (0.02 ) Income from unconsolidated subsidiaries 0.01 0.01   Higher (lower) interest income ** (0.06 ) 0.05 (0.01 ) (Higher) lower interest expense ** (0.02 ) (0.04 ) 0.01 (0.05 )   Effective tax rate impact - positive (negative) 0.04 (0.01 ) (0.07 ) (0.01 ) 0.02 (0.03 )   All other / rounding   0.02     -     -     -     (0.01 )   -   0.01     Fiscal 2007 operating results 0.60 0.58 0.88 0.06 0.04 0.10 2.26 Items impacting comparability: Gain on disposal of discontinued operations 1.41 1.41 Earnings from discontinued operations 0.18 0.18 Reversal of reserve for preliminary project costs 0.06 0.06 Resolution of a purchased gas contingency 0.03 0.03 Discontinuance of hedge accounting     0.02             0.02   Fiscal 2007 GAAP earnings $ 0.60   $ 0.66   $ 2.47   $ 0.09   $ 0.04   $ 0.10 $ 3.96       * Includes discontinued operations ** Includes intercompany income and expenses         NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   (Thousands of Dollars, except per share amounts) Three Months Ended Twelve Months Ended September 30, September 30, (Unaudited) (Unaudited) SUMMARY OF OPERATIONS   2007     2006     2007     2006   Operating Revenues $ 302,030   $ 280,506   $ 2,039,566   $ 2,239,675     Operating Expenses: Purchased Gas 79,164 79,609 1,018,081 1,267,562 Operation and Maintenance 90,905 88,803 396,408 395,289 Property, Franchise and Other Taxes 16,098 15,625 70,660 69,202 Depreciation, Depletion and Amortization   42,359     39,604     157,919     151,999   228,526 223,641 1,643,068 1,884,052   Operating Income 73,504 56,865 396,498 355,623   Other Income (Expense): Income from Unconsolidated Subsidiaries 1,880 1,384 4,979 3,583 Other Income 908 1,291 4,936 2,825 Interest Income (1,548 ) 5,695 1,550 9,409 Interest Expense on Long-Term Debt (16,289 ) (18,127 ) (68,446 ) (72,629 ) Other Interest Expense   (1,151 )   (1,686 )   (6,029 )   (5,952 )   Income from Continuing Operations Before Income Taxes 57,304 45,422 333,488 292,859   Income Tax Expense   23,009     16,837     131,813     108,245     Income from Continuing Operations 34,295 28,585 201,675 184,614   Discontinued Operations: Income (Loss) from Operations, Net of Tax 3,094 (26,617 ) 15,479 (46,523 ) Gain on Disposal, Net of Tax   120,301     -     120,301     -     Income (Loss) from Discontinued Operations, Net of Tax   123,395     (26,617 )   135,780     (46,523 )   Net Income Available for Common Stock $ 157,690   $ 1,968   $ 337,455   $ 138,091     Earnings Per Common Share: Basic: Income from Continuing Operations $ 0.41 $ 0.34 $ 2.43 $ 2.20 Income (Loss) from Discontinued Operations   1.48     (0.32 )   1.63     (0.56 ) Net Income Available for Common Stock $ 1.89   $ 0.02   $ 4.06   $ 1.64     Diluted: Income from Continuing Operations $ 0.40 $ 0.33 $ 2.37 $ 2.15 Income (Loss) from Discontinued Operations   1.44     (0.31 )   1.59     (0.54 ) Net Income Available for Common Stock $ 1.84   $ 0.02   $ 3.96   $ 1.61     Weighted Average Common Shares: Used in Basic Calculation   83,506,748     83,432,553     83,141,640     84,030,118   Used in Diluted Calculation   85,577,898     85,523,042     85,301,361     86,028,466       NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)   September 30, September 30, (Thousands of Dollars)     2007     2006   ASSETS Property, Plant and Equipment $ 4,461,586 $ 4,703,040 Less - Accumulated Depreciation, Depletion and Amortization   1,583,181       1,825,314 Net Property, Plant and Equipment   2,878,405       2,877,726   Current Assets: Cash and Temporary Cash Investments 124,806 69,611 Cash Held in Escrow 61,964 - Hedging Collateral Deposits 4,066 19,676 Receivables - Net 172,380 173,671 Unbilled Utility Revenue 20,682 25,538 Gas Stored Underground 66,195 59,461 Materials and Supplies - at average cost 35,669 36,693 Unrecovered Purchased Gas Costs 14,769 12,970 Other Current Assets 45,057 63,723 Deferred Income Taxes   13,093       23,402 Total Current Assets   558,681       484,745   Other Assets: Recoverable Future Taxes 83,954 79,511 Unamortized Debt Expense 12,070 15,492 Other Regulatory Assets 137,577 76,917 Deferred Charges 5,545 3,558 Other Investments 85,902 88,414 Investments in Unconsolidated Subsidiaries 18,256 11,590 Goodwill 5,476 5,476 Intangible Assets 28,836 31,498 Prepaid Pension and Post-Retirement Benefit Costs 61,006 64,125 Fair Value of Derivative Financial Instruments 9,188 11,305 Deferred Income Taxes - 9,003 Other   8,059       4,388 Total Other Assets   455,869       401,277 Total Assets $ 3,892,955     $ 3,763,748   CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 83,461,308 Shares and 83,402,670 Shares, Respectively $ 83,461 $ 83,403 Paid in Capital 569,085 543,730 Earnings Reinvested in the Business   983,776       786,013 Total Common Shareholders' Equity Before Items of Other Comprehensive Income (Loss) 1,636,322 1,413,146 Accumulated Other Comprehensive Income (Loss)   (6,203 )     30,416 Total Comprehensive Shareholders' Equity 1,630,119 1,443,562 Long-Term Debt, Net of Current Portion   799,000       1,095,675 Total Capitalization   2,429,119       2,539,237   Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper - - Current Portion of Long-Term Debt 200,024 22,925 Accounts Payable 109,757 133,034 Amounts Payable to Customers 10,409 23,935 Dividends Payable 25,873 25,008 Interest Payable on Long-Term Debt 18,158 18,420 Customer Advances 22,863 29,417 Other Accruals and Current Liabilities 36,062 27,040 Fair Value of Derivative Financial Instruments   16,200       39,983 Total Current and Accrued Liabilities   439,346       319,762   Deferred Credits: Deferred Income Taxes 579,899 544,502 Taxes Refundable to Customers 14,026 10,426 Unamortized Investment Tax Credit 5,392 6,094 Cost of Removal Regulatory Liability 91,226 85,076 Other Regulatory Liabilities 76,659 75,456 Post-Retirement Liabilities 70,555 32,918 Asset Retirement Obligations 75,939 77,392 Other Deferred Credits   110,794       72,885 Total Deferred Credits   1,024,490       904,749 Commitments and Contingencies   -       - Total Capitalization and Liabilities $ 3,892,955     $ 3,763,748   NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Twelve Months Ended September 30, (Thousands of Dollars)   2007   2006   Operating Activities: Net Income Available for Common Stock $337,455 $138,091 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Gain on Sale of Discontinued Operations (159,873 ) - Impairment of Oil and Gas Producing Properties - 104,739 Depreciation, Depletion and Amortization 170,803 179,615 Deferred Income Taxes 52,847 (5,230 ) Income from Unconsolidated Subsidiaries, Net of Cash Distributions (3,366 ) 1,067 Excess Tax Benefits Associated with Stock-Based Compensation Awards (13,689 ) (6,515 ) Other 16,399 4,829 Change in: Hedging Collateral Deposits 15,610 58,108 Receivables and Unbilled Utility Revenue 5,669 (12,343 ) Gas Stored Underground and Materials and Supplies (5,714 ) 1,679 Unrecovered Purchased Gas Costs (1,799 ) 1,847 Prepayments and Other Current Assets 18,800 (39,572 ) Accounts Payable (26,002 ) (23,144 ) Amounts Payable to Customers (13,526 ) 22,777 Customer Advances (6,554 ) 4,946 Other Accruals and Current Liabilities 8,950 (17,754 ) Other Assets 4,109 (22,700 ) Other Liabilities   (5,922 )   80,960   Net Cash Provided by Operating Activities   $394,197     $471,400     Investing Activities: Capital Expenditures ($276,728 ) ($294,159 ) Investment in Partnership (3,300 ) - Net Proceeds from Sale of Foreign Subsidiary 232,092 - Cash Held in Escrow (58,248 ) - Net Proceeds from Sale of Oil and Gas Producing Properties 5,137 13 Other   (725 )   (3,230 ) Net Cash Used in Investing Activities   ($101,772 )   ($297,376 )   Financing Activities: Excess Tax Benefits Associated with Stock-Based Compensation Awards $13,689 $6,515 Shares Repurchased under Repurchase Plan (48,070 ) (85,168 ) Reduction of Long-Term Debt (119,576 ) (9,805 ) Dividends Paid on Common Stock (100,632 ) (98,266 ) Proceeds From Issuance of Common Stock   17,498     23,339   Net Cash Used In Financing Activities   ($237,091 )   ($163,385 ) Effect of Exchange Rates on Cash   (139 )   1,365   Net Increase in Cash and Temporary Cash Investments 55,195 12,004 Cash and Temporary Cash Investments at Beginning of Period   69,611     57,607   Cash and Temporary Cash Investments at September 30   $124,806     $69,611   NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED)       (Thousands of Dollars, except per share amounts) Three Months Ended September 30, Twelve Months Ended September 30, UTILITY SEGMENT   2007     2006   Variance   2007     2006   Variance Revenues from External Customers $ 105,594 $ 111,320 $ (5,726 ) $ 1,106,453 $ 1,265,695 $ (159,242 ) Intersegment Revenues   1,715     2,751     (1,036 )   14,271     15,068     (797 ) Total Operating Revenues   107,309     114,071     (6,762 )   1,120,724     1,280,763     (160,039 )   Operating Expenses: Purchased Gas 47,682 52,440 (4,758 ) 718,376 883,263 (164,887 ) Operation and Maintenance 37,519 41,233 (3,714 ) 202,965 204,330 (1,365 ) Property, Franchise and Other Taxes 10,037 10,151 (114 ) 47,023 47,029 (6 ) Depreciation, Depletion and Amortization   10,389     10,113     276     40,541     40,172     369     105,627     113,937     (8,310 )   1,008,905     1,174,794     (165,889 )   Operating Income 1,682 134 1,548 111,819 105,969 5,850   Other Income (Expense): Interest Income (2,907 ) 4,347 (7,254 ) (2,345 ) 4,889 (7,234 ) Other Income 318 221 97 1,244 830 414 Other Interest Expense   (6,847 )   (6,782 )   (65 )   (28,190 )   (26,174 )   (2,016 )   Income (Loss) Before Income Taxes (7,754 ) (2,080 ) (5,674 ) 82,528 85,514 (2,986 ) Income Tax Expense (Benefit)   (4,318 )   (661 )   (3,657 )   31,642     35,699     (4,057 ) Net Income (Loss) $ (3,436 ) $ (1,419 ) $ (2,017 ) $ 50,886   $ 49,815   $ 1,071     Net Income (Loss) Per Share (Diluted) $ (0.04 ) $ (0.02 ) $ (0.02 ) $ 0.60   $ 0.58   $ 0.02       Three Months Ended Twelve Months Ended September 30, September 30, PIPELINE AND STORAGE SEGMENT   2007     2006   Variance   2007     2006   Variance Revenues from External Customers $ 35,521 $ 28,086 $ 7,435 $ 130,410 $ 132,921 $ (2,511 ) Intersegment Revenues   19,972     20,126     (154 )   81,556     81,431     125   Total Operating Revenues   55,493     48,212     7,281     211,966     214,352     (2,386 )   Operating Expenses: Purchased Gas 7 (48 ) 55 (5 ) (65 ) 60 Operation and Maintenance 19,111 18,462 649 61,230 66,340 (5,110 ) Property, Franchise and Other Taxes 4,317 4,109 208 17,112 16,088 1,024 Depreciation, Depletion and Amortization   8,135     9,227     (1,092 )   32,985     36,876     (3,891 )   31,570     31,750     (180 )   111,322     119,239     (7,917 )   Operating Income 23,923 16,462 7,461 100,644 95,113 5,531   Other Income (Expense): Interest Income 134 137 (3 ) 357 454 (97 ) Other Income 330 197 133 748 582 166 Interest Expense on Long-Term Debt (16 ) (241 ) 225 1,792 (1,078 ) 2,870 Other Interest Expense   (3,274 )   (1,813 )   (1,461 )   (11,415 )   (5,542 )   (5,873 )   Income Before Income Taxes 21,097 14,742 6,355 92,126 89,529 2,597 Income Tax Expense   7,786     4,494     3,292     35,740     33,896     1,844   Net Income $ 13,311   $ 10,248   $ 3,063   $ 56,386   $ 55,633   $ 753     Net Income Per Share (Diluted) $ 0.16   $ 0.12   $ 0.04   $ 0.66   $ 0.65   $ 0.01     NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED)       (Thousands of Dollars, except per share amounts) Three Months Ended September 30, Twelve Months Ended September 30, EXPLORATION AND PRODUCTION SEGMENT   2007     2006   Variance   2007     2006   Variance Operating Revenues $ 90,329   $ 75,511   $ 14,818   $ 324,037   $ 274,896   $ 49,141     Operating Expenses: Purchased Gas - - - - 98 (98 ) Operation and Maintenance: General and Administrative Expense 6,243 4,425 1,818 19,946 19,061 885 Lease Operating Expense 11,585 9,199 2,386 43,916 37,056 6,860 All Other Operation and Maintenance Expense 1,468 1,992 (524 ) 8,378 7,775 603 Property, Franchise and Other Taxes (Lease Operating Expense) 1,220 895 325 4,493 4,298 195 Depreciation, Depletion and Amortization   21,844     18,339     3,505     78,174     67,122     11,052     42,360     34,850     7,510     154,907     135,410     19,497     Operating Income 47,969 40,661 7,308 169,130 139,486 29,644   Other Income (Expense): Interest Income 3,134 2,290 844 9,905 7,816 2,089 Other Income 18 - 18 18 - 18 Interest Expense on Long-Term Debt - - - (1,188 ) - (1,188 ) Other Interest Expense   (12,149 )   (12,835 )   686     (50,555 )   (50,457 )   (98 )   Income from Continuing Operations Before Income Taxes 38,972 30,116 8,856 127,310 96,845 30,465 Income Tax Expense   16,656     10,680     5,976     52,421     29,351     23,070   Income from Continuing Operations 22,316 19,436 2,880 74,889 67,494 7,395   Discontinued Operations: Income (Loss) from Operations, Net of Tax 3,094 (26,617 ) 29,711 15,479 (46,523 ) 62,002 Gain on Disposal, Net of Tax   120,301     -     120,301     120,301     -     120,301   Income (Loss) from Discontinued Operations, Net of Tax   123,395     (26,617 )   150,012     135,780     (46,523 )   182,303     Net Income (Loss) $ 145,711   $ (7,181 ) $ 152,892   $ 210,669   $ 20,971   $ 189,698     Income from Continuing Operations Per Share (Diluted) $ 0.26 $ 0.23 $ 0.03 $ 0.88 $ 0.78 $ 0.10   Income (Loss) from Discontinued Operations, Net of Tax, Per Share (Diluted)   1.44     (0.31 )   1.75     1.59     (0.54 )   2.13   Net Income (Loss) Per Share (Diluted) $ 1.70   $ (0.08 ) $ 1.78   $ 2.47   $ 0.24   $ 2.23         Three Months Ended Twelve Months Ended September 30, September 30, ENERGY MARKETING SEGMENT   2007     2006   Variance   2007     2006   Variance Operating Revenues $ 53,576   $ 50,702   $ 2,874   $ 413,612   $ 497,069   $ (83,457 )   Operating Expenses: Purchased Gas 53,275 49,939 3,336 396,322 483,250 (86,928 ) Operation and Maintenance 1,287 1,185 102 4,998 5,079 (81 ) Property, Franchise and Other Taxes 27 10 17 73 (222 ) 295 Depreciation, Depletion and Amortization   10     7     3     33     53     (20 )   54,599     51,141     3,458     401,426     488,160     (86,734 )   Operating Income (Loss) (1,023 ) (439 ) (584 ) 12,186 8,909 3,277   Other Income (Expense): Interest Income 183 144 39 682 445 237 Other Income 122 57 65 712 419 293 Other Interest Expense   (9 )   (20 )   11     (263 )   (227 )   (36 )   Income (Loss) Before Income Taxes (727 ) (258 ) (469 ) 13,317 9,546 3,771 Income Tax Expense (Benefit)   41     (148 )   189     5,654     3,748     1,906   Net Income (Loss) $ (768 ) $ (110 ) $ (658 ) $ 7,663   $ 5,798   $ 1,865     Net Income Per Share (Diluted) $ (0.01 ) $ -   $ (0.01 ) $ 0.09   $ 0.07   $ 0.02     NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED)       (Thousands of Dollars, except per share amounts) Three Months Ended September 30, Twelve Months Ended September 30, TIMBER SEGMENT   2007     2006   Variance   2007     2006   Variance Revenues from External Customers $ 15,819 $ 13,647 $ 2,172 $ 58,897 $ 65,024 $ (6,127 ) Intersegment Revenues   -     1     (1 )   -     5     (5 ) Total Operating Revenues   15,819     13,648     2,171     58,897     65,029     (6,132 )   Operating Expenses: Operation and Maintenance 12,029 10,383 1,646 44,059 45,712 (1,653 ) Property, Franchise and Other Taxes 406 370 36 1,589 1,611 (22 ) Depreciation, Depletion and Amortization   1,616     1,582     34     4,709     6,495     (1,786 )   14,051     12,335     1,716     50,357     53,818     (3,461 )   Operating Income 1,768 1,313 455 8,540 11,211 (2,671 )   Other Income (Expense): Interest Income 327 229 98 1,249 747 502 Other Income - 66 (66 ) 22 118 (96 ) Other Interest Expense   (863 )   (796 )   (67 )   (3,265 )   (3,095 )   (170 )   Income Before Income Taxes 1,232 812 420 6,546 8,981 (2,435 ) Income Tax Expense (Benefit)   557     343     214     2,818     3,277     (459 ) Net Income $ 675   $ 469   $ 206   $ 3,728   $ 5,704   $ (1,976 )   Net Income Per Share (Diluted) $ 0.01   $ 0.01   $ -   $ 0.04   $ 0.07   $ (0.03 )       Three Months Ended Twelve Months Ended September 30, September 30, ALL OTHER   2007     2006   Variance   2007     2006   Variance Revenues from External Customers $ 997 $ 1,053 $ (56 ) $ 5,385 $ 3,304 $ 2,081 Intersegment Revenues   2,186     1,506     680     8,726     9,444     (718 ) Total Operating Revenues   3,183     2,559     624     14,111     12,748     1,363     Operating Expenses: Purchased Gas 1,969 1,541 428 7,529 7,908 (379 ) Operation and Maintenance 1,091 1,132 (41 ) 3,854 3,731 123 Property, Franchise and Other Taxes 22 21 1 92 95 (3 ) Depreciation, Depletion and Amortization   196     196     -     785     789     (4 )   3,278     2,890     388     12,260     12,523     (263 )   Operating Income (Loss) (95 ) (331 ) 236 1,851 225 1,626   Other Income (Expense): Income from Unconsolidated Subsidiaries 1,880 1,384 496 4,979 3,583 1,396 Interest Income 4 3 1 16 22 (6 ) Other Income 15 11 4 52 53 (1 ) Other Interest Expense   (688 )   (681 )   (7 )   (2,687 )   (2,555 )   (132 )   Income (Loss) Before Income Taxes 1,116 386 730 4,211 1,328 2,883 Income Tax Expense (Benefit)   463     430     33     1,647     969     678   Net Income (Loss) $ 653   $ (44 ) $ 697   $ 2,564   $ 359   $ 2,205     Net Income (Loss) Per Share (Diluted) $ 0.01   $ (0.01 ) $ 0.02   $ 0.03   $ -   $ 0.03     NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED)       (Thousands of Dollars, except per share amounts) Three Months Ended September 30, Twelve Months Ended September 30, CORPORATE   2007     2006   Variance   2007     2006   Variance Revenues from External Customers $ 194 $ 187 $ 7 $ 772 $ 766 $ 6 Intersegment Revenues   1,202     737     465     3,819     2,949     870   Total Operating Revenues   1,396     924     472     4,591     3,715     876     Operating Expenses: Operation and Maintenance 1,878 1,650 228 11,293 8,210 3,083 Property, Franchise and Other Taxes 69 69 - 278 303 (25 ) Depreciation, Depletion and Amortization   169     140     29     692     492     200     2,116     1,859     257     12,263     9,005     3,258     Operating Loss (720 ) (935 ) 215 (7,672 ) (5,290 ) (2,382 )   Other Income (Expense): Interest Income 21,518 20,916 602 87,296 81,044 6,252 Other Income 105 739 (634 ) 2,140 823 1,317 Interest Expense on Long-Term Debt (16,273 ) (17,886 ) 1,613 (69,050 ) (71,551 ) 2,501 Other Interest Expense   (1,262 )   (1,130 )   (132 )   (5,264 )   (3,910 )   (1,354 )   Income (Loss) Before Income Taxes 3,368 1,704 1,664 7,450 1,116 6,334 Income Tax Expense (Benefit)   1,824     1,699     125     1,891     1,305     586   Net Income (Loss) $ 1,544   $ 5   $ 1,539   $ 5,559   $ (189 ) $ 5,748     Net Income (Loss) Per Share (Diluted) $ 0.01   $ -   $ 0.01   $ 0.07   $ -   $ 0.07         Three Months Ended Twelve Months Ended September 30, September 30, INTERSEGMENT ELIMINATIONS   2007     2006   Variance   2007     2006   Variance Intersegment Revenues $ (25,075 ) $ (25,121 ) $ 46   $ (108,372 ) $ (108,897 ) $ 525     Operating Expenses: Purchased Gas (23,769 ) (24,263 ) 494 (104,141 ) (106,892 ) 2,751 Operation and Maintenance   (1,306 )   (858 )   (448 )   (4,231 )   (2,005 )   (2,226 )   (25,075 )   (25,121 )   46     (108,372 )   (108,897 )   525     Operating Income - - - - - -   Other Income (Expense): Interest Income (23,941 ) (22,371 ) (1,570 ) (95,610 ) (86,008 ) (9,602 ) Other Interest Expense   23,941     22,371     1,570     95,610     86,008     9,602     Net Income $ -   $ -   $ -   $ -   $ -   $ -     Net Income Per Share (Diluted) $ -   $ -   $ -   $ -   $ -   $ -             NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   SEGMENT INFORMATION (Continued) (Thousands of Dollars)     Three Months Ended Twelve Months Ended September 30, September 30, (Unaudited) (Unaudited)   Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease)   Capital Expenditures: Utility $ 14,240 $ 15,042 $ (802) $ 54,185 $ 54,414 $ (229) Pipeline and Storage 16,818 10,662 6,156 43,226 26,023 17,203 Exploration and Production 33,899 40,868 (6,969) 146,687 166,535 (19,848) Energy Marketing 18 10 8 76 16 60 Timber 1,394 1,193 201 3,657 2,323 1,334 Total Reportable Segments 66,369 67,775 (1,406) 247,831 249,311 (1,480) All Other - 7 (7) 87 85 2 Corporate 219 607 (388) (319) 2,995 (3,314) Total Expenditures from Continuing Operations 66,588 68,389 (1,801) 247,599 252,391 (4,792) Discontinued Operations 3,631 7,112 (3,481) 29,129 41,768 (12,639) Total Capital Expenditures $ 70,219 $ 75,501 $ (5,282) $ 276,728 $ 294,159 $ (17,431)             DEGREE DAYS   Percent Colder (Warmer) Than: Three Months Ended September 30 Normal 2007 2006 Normal Last Year   Buffalo, NY 178 76 152 (57.3 ) (50.0 ) Erie, PA 135 77 123 (43.0 ) (37.4 )   Twelve Months Ended September 30   Buffalo, NY 6,692 6,271 5,968 (6.3 ) 5.1 Erie, PA 6,243 6,007 5,688 (3.8 ) 5.6             NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   EXPLORATION AND PRODUCTION INFORMATION     Three Months Ended Twelve Months Ended September 30, September 30, Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease)   Gas Production / Prices: Production (MMcf) Gulf Coast 2,422 2,582 (160 ) 10,356 9,110 1,246 West Coast 1,046 947 99 3,929 3,880 49 Appalachia   1,557   1,342   215     5,555   5,108   447   Total Production from Continuing Operations 5,025 4,871 154 19,840 18,098 1,742 Canada - Discontinued Operations   1,210   1,842   (632 )   6,426   7,673   (1,247 ) Total Production   6,235   6,713   (478 )   26,266   25,771   495     Average Prices (Per Mcf) Gulf Coast $ 6.05 $ 6.62 $ (0.57 ) $ 6.58 $ 8.01 $ (1.43 ) West Coast 5.93 6.40 (0.47 ) 6.54 7.93 (1.39 ) Appalachia 6.89 7.38 (0.49 ) 7.48 9.53 (2.05 ) Weighted Average for Continuing Operations 6.28 6.79 (0.51 ) 6.82 8.42 (1.60 )   Weighted Average after Hedging for Continuing Operations 7.13 6.56 0.57 7.25 7.02 0.23 Canada - Discontinued Operations 4.98 5.22 (0.24 ) 6.09 7.14 (1.05 )   Oil Production / Prices: Production (Thousands of Barrels) Gulf Coast 177 206 (29 ) 717 685 32 West Coast 614 620 (6 ) 2,403 2,582 (179 ) Appalachia   33   27   6     124   69   55   Total Production from Continuing Operations 824 853 (29 ) 3,244 3,336 (92 ) Canada - Discontinued Operations   31   51   (20 )   206   272   (66 ) Total Production   855   904   (49 )   3,450   3,608   (158 )   Average Prices (Per Barrel) Gulf Coast $ 74.26 $ 68.92 $ 5.34 $ 63.04 $ 64.10 $ (1.06 ) West Coast 68.22 61.23 6.99 56.86 56.80 0.06 Appalachia 70.18 70.37 (0.19 ) 62.26 65.28 (3.02 ) Weighted Average for Continuing Operations 69.59 63.38 6.21 58.43 58.47 (0.04 ) Weighted Average after Hedging for Continuing Operations 61.35 44.84 16.51 51.68 40.26 11.42 Canada - Discontinued Operations 60.72 60.69 0.03 50.06 51.40 (1.34 )   Total Production (Mmcfe)   11,365   12,137   (772 )   46,966   47,419   (453 )   Selected Operating Performance Statistics: General & Administrative Expense per Mcfe (1) $ 0.63 $ 0.44 $ 0.19 $ 0.51 $ 0.50 $ 0.01 Lease Operating Expense per Mcfe (1) $ 1.28 $ 1.01 $ 0.27 $ 1.23 $ 1.09 $ 0.14 Depreciation, Depletion & Amortization per Mcfe (1) $ 2.19 $ 1.84 $ 0.35 $ 1.99 $ 1.76 $ 0.23     (1) Refer to page 21 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.       NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   EXPLORATION AND PRODUCTION INFORMATION     Hedging Summary for Fiscal 2008   SWAPS Volume Average Hedge Price Oil 1.4 MMBBL $58.78 / BBL Gas 10.8 BCF $8.47 / MCF       No-cost Collars Volume Average Floor Price Average Ceiling Price Gas 1.4 BCF $8.83 / MCF $16.45 / MCF   Hedging Summary for Fiscal 2009   SWAPS Volume Average Hedge Price Oil 0.4 MMBBL $62.00 / BBL Gas 4.0 BCF $8.83 / MCF         Gross Wells in Process of Drilling Twelve Months Ended September 30, 2007 Total Gulf West East Company   Wells in Process - Beginning of Period Exploratory 4.00 1.00 10.00 15.00 Developmental 1.00 2.00 44.00 47.00 Wells Commenced Exploratory 5.00 0.00 20.00 25.00 Developmental 2.00 63.00 213.00 278.00 Wells Completed Exploratory 4.00 1.00 9.00 14.00 Developmental 2.00 59.00 186.00 247.00 Wells Plugged & Abandoned Exploratory 3.00 0.00 0.00 3.00 Developmental 1.00 2.00 2.00 5.00 Wells in Process - End of Period Exploratory 2.00 0.00 21.00 23.00 Developmental 0.00 4.00 69.00 73.00     Net Wells in Process of Drilling Twelve Months Ended September 30, 2007 Total Gulf West East Company   Wells in Process - Beginning of Period Exploratory 2.02 0.50 10.00 12.52 Developmental 0.67 2.00 44.00 46.67 Wells Commenced Exploratory 2.01 0.00 18.10 20.11 Developmental 1.00 62.99 210.00 273.99 Wells Completed Exploratory 1.31 0.50 8.10 9.91 Developmental 1.00 58.99 184.00 243.99 Wells Plugged & Abandoned Exploratory 1.42 0.00 0.00 1.42 Developmental 0.67 2.00 2.00 4.67 Wells in Process - End of Period Exploratory 1.30 0.00 20.00 21.30 Developmental 0.00 4.00 68.00 72.00   NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES   EXPLORATION AND PRODUCTION INFORMATION   Reserve Quantity Information     Gas MMcf U.S. Gulf Coast West Coast Appalachian Total Total Region Region Region U.S. Canada Company   Proved Developed and Undeveloped Reserves: September 30, 2006 41,802 75,866 81,373 199,041 33,534 232,575 Extensions and Discoveries 3,577 - 29,676 33,253 1,333 34,586 Revisions of Previous Estimates (9,851 ) 1,238 1,618 (6,995 ) 11,634 4,639 Production (10,356 ) (3,929 ) (5,555 ) (19,840 ) (6,426 ) (26,266 ) Sales of Minerals in Place (36 ) -   (34 ) (70 ) (40,075 ) (40,145 ) September 30, 2007 25,136 73,175 107,078 205,389 - 205,389   Proved Developed Reserves:   September 30, 2006 32,345 64,196 81,373 177,914 33,534 211,448 September 30, 2007 25,136 66,017 96,674 187,827 - 187,827     Oil Mbbl U.S. Gulf Coast West Coast Appalachian Total Total Region Region Region U.S. Canada Company Proved Developed and Undeveloped Reserves: September 30, 2006 1,244 54,869 273 56,386 1,632 58,018 Extensions and Discoveries 63 - 281 344 108 452 Revisions of Previous Estimates 851 (6,822 ) 84 (5,887 ) (76 ) (5,963 ) Production (717 ) (2,403 ) (124 ) (3,244 ) (206 ) (3,450 ) Sales of Minerals in Place (6 ) -   (7 ) (13 ) (1,458 ) (1,471 ) September 30, 2007 1,435 45,644 507 47,586 - 47,586   Proved Developed Reserves:   September 30, 2006 1,217 42,522 273 44,012 1,632 45,644 September 30, 2007 1,435 36,509 483 38,427 - 38,427             NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES     Utility Throughput - (millions of cubic feet - MMcf) Three Months Ended Twelve Months Ended September 30, September 30, Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) Retail Sales: Residential Sales 3,507 4,372 (865 ) 60,236 59,443 793 Commercial Sales 580 741 (161 ) 10,713 10,681 32 Industrial Sales 100 85 15   727 985 (258 ) 4,187 5,198 (1,011 ) 71,676 71,109 567 Off-System Sales 888 - 888 1,355 - 1,355 Transportation 8,684 9,701 (1,017 ) 62,240 57,950 4,290   13,759 14,899 (1,140 ) 135,271 129,059 6,212     Pipeline & Storage Throughput- (MMcf) Three Months Ended Twelve Months Ended September 30, September 30, Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) Firm Transportation - Affiliated 10,680 10,608 72 111,243 103,223 8,020 Firm Transportation - Non-Affiliated 66,920 64,501 2,419 239,870 260,156 (20,286 ) Interruptible Transportation 1,378 3,835 (2,457 ) 4,975 11,609 (6,634 ) 78,978 78,944 34   356,088 374,988 (18,900 )   Energy Marketing Volumes Three Months Ended Twelve Months Ended September 30, September 30, Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) Natural Gas (MMcf) 6,712 6,774 (62 ) 50,775 45,270 5,505     Timber Board Feet (Thousands) Three Months Ended Twelve Months Ended September 30, September 30, Increase Increase 2007 2006 (Decrease) 2007 2006 (Decrease) Log Sales 2,202 1,986 216 8,660 9,527 (867 ) Green Lumber Sales 2,738 2,372 366 9,358 10,454 (1,096 ) Kiln-dried Lumber Sales 3,826 3,624 202   14,778 16,862 (2,084 ) 8,766 7,982 784   32,796 36,843 (4,047 )   NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES FISCAL 2008 EARNINGS GUIDANCE AND SENSITIVITIES                 Fiscal 2008 (Diluted earnings per share guidance*) Earnings per share sensitivity to changes from NYMEX prices used in guidance* 1   $1 change per MMBtu gas $5 change per Bbl oil Range Increase   Decrease Increase   Decrease   Consolidated Earnings $2.50 - $2.70 + $0.07 - $0.07 + $0.05 - $0.05         NYMEX Settlement Prices at July 24, 2007   Natural Gas Oil ($ per MMBtu) ($ per Bbl)   Oct-07 $6.128 $73.39 Nov-07 $7.078 $73.25 Dec-07 $8.028 $73.10 Jan-08 $8.468 $72.95 Feb-08 $8.488 $72.82 Mar-08 $8.338 $72.70 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 $7.791 $72.69         * Please refer to forward looking statement footnote at pages 11-12 of this document.   1 This sensitivity table is current as of November 2, 2007 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.   NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES         Quarter Ended September 30 (unaudited)   2007   2006     Operating Revenues $ 302,030,000 $ 280,506,000     Income from Continuing Operations $ 34,295,000 $ 28,585,000 Income (Loss) from Discontinued Operations, Net of Tax   123,395,000   (26,617,000 ) Net Income Available for Common Stock $ 157,690,000 $ 1,968,000     Earnings Per Common Share: Basic: Income from Continuing Operations $ 0.41 $ 0.34 Income (Loss) from Discontinued Operations   1.48   (0.32 ) Net Income Available for Common Stock $ 1.89 $ 0.02     Diluted: Income from Continuing Operations $ 0.40 $ 0.33 Income (Loss) from Discontinued Operations   1.44   (0.31 ) Net Income Available for Common Stock $ 1.84 $ 0.02     Weighted Average Common Shares: Used in Basic Calculation   83,506,748   83,432,553   Used in Diluted Calculation   85,577,898   85,523,042       Twelve Months Ended September 30 (unaudited)   Operating Revenues $ 2,039,566,000 $ 2,239,675,000     Income from Continuing Operations $ 201,675,000 $ 184,614,000 Income (Loss) from Discontinued Operations, Net of Tax   135,780,000   (46,523,000 ) Net Income Available for Common Stock $ 337,455,000 $ 138,091,000     Earnings Per Common Share: Basic: Income from Continuing Operations $ 2.43 $ 2.20 Income (Loss) from Discontinued Operations   1.63   (0.56 ) Net Income Available for Common Stock $ 4.06 $ 1.64     Diluted: Income from Continuing Operations $ 2.37 $ 2.15 Income (Loss) from Discontinued Operations   1.59   (0.54 ) Net Income Available for Common Stock $ 3.96 $ 1.61     Weighted Average Common Shares: Used in Basic Calculation   83,141,640   84,030,118   Used in Diluted Calculation   85,301,361   86,028,466