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National Fuel Reports 2008 Earnings

November 6, 2008

National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for its fiscal year and fourth quarter ended September 30, 2008, of $268.7 million or $3.18 per share, and $43.3 million or $0.52 per share, respectively.

FINANCIAL HIGHLIGHTS

— Operating results before items impacting comparability (“Operating Results”) for the fiscal year of $3.17 per share were up over 40% from the prior year, an increase of $0.91 per share. Increased earnings in the Exploration and Production segment provided the majority of the increase. Higher average commodity prices realized and increased natural gas production were the main drivers of the higher earnings. Operating Results also increased in the Pipeline and Storage, Utility and Energy Marketing segments.

— Quarterly Operating Results increased 30% to $0.52 per share, an increase of $0.12 per share from the prior year’s fourth quarter. Operating Results increased in the Exploration and Production and Utility segments from the prior year’s fourth quarter.

— The Company is revising its earnings guidance for fiscal 2009 to reflect a change in pricing assumptions for natural gas and crude oil. The revised earnings guidance range is $2.60 to $2.80 per share. This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 billion cubic feet equivalent (“Bcfe”) and is based on hedges currently in place and flat pricing on production not hedged, exclusive of basis differential, of $7.00 per Million British Thermal Units (“MMBtu”) for natural gas and $70 per barrel (“Bbl”) for crude oil. This guidance for fiscal 2009 does not take into account any impacts resulting from the possible sale of certain landfill gas related assets.

— A conference call is scheduled for Friday, November 7, 2008, at 11:00 a.m. Eastern Time.

OPERATING HIGHLIGHTS

— Seneca Resources Corporation (“Seneca”) increased total annual production by approximately 4%, and absent the extraordinary hurricane related curtailment of approximately 1.0 Bcfe, production would have increased over 6%. Seneca’s overall reserve replacement was 130%.

— In Seneca’s East (Appalachia) Division, fiscal year production of 7.9 Bcfe increased more than 25% compared to last year, and 361% of fiscal 2008 production was replaced.

— Seneca was the successful bidder on 24,000 acres on four large blocks located in the Marcellus Shale trend. These leases in Lycoming County, and Tioga County, Pennsylvania have 10 year primary terms, and are incremental to the 425,000 acres high-graded in this play previously disclosed. This action illustrates our long-term commitment to the Appalachian basin, as we look to continue expansion of Seneca’s drilling program in Appalachia, both in the shallow Devonian Sandstone and Marcellus Shale trends.

— Seneca and EOG Resources (“EOG”) have modified the terms of their joint venture in the Marcellus Shale. EOG is now required to select all prospect acreage by March 2009. While the drilling requirements and acreage commitments are unchanged, this alteration will more quickly free up the non-selected acreage and allow Seneca additional flexibility to evaluate, explore and develop the remaining acreage independently or with other partners.

— Construction of the Empire Connector is nearly complete and the pipeline will be ready to be placed in-service in December. The Empire Connector is a 77-mile pipeline designed to deliver up to 250 million cubic feet of natural gas per day from the existing Empire Pipeline to Corning, NY.

MANAGEMENT COMMENTS

David F. Smith, Chief Executive Officer and President of National Fuel Gas Company stated: “This was another outstanding year for the Company, with record operating results for both the fourth quarter and fiscal year. While we cannot control the extreme recent volatility in both the commodity and capital markets, we can control how we operate our business. We can, and we will, continue our long-standing philosophy of investing in three complementary segments of the natural gas industry. As our results show, it is this commitment to our well-head to burner-tip model that makes possible the solid and steady operating performance of National Fuel Gas Company and its subsidiaries, even during these turbulent times.

We have carefully reviewed our capital spending and operating expense forecasts in each of our segments and have only modestly pared them back. Frankly, we have always controlled costs and focused on limiting risk, particularly in our regulated segments. Our capital spending is conservative and is designed to allow us to be within our cash flow. In this regard our regulated assets and our California producing assets provide a stable source of funds to both continue our dividend and grow our business despite the current difficulties in the capital markets. Once again, our diversified business model is working to the benefit of our shareholders.

Falling commodity prices will certainly cause us to re-examine some of the exploration projects that we had planned, mainly in the high cost drilling environment in the Gulf of Mexico. However, we are in the business for the long term and are well positioned to extract value from our assets in our Exploration and Production segment.

Looking forward to 2009, we have a solid balance sheet, strong projected cash flows and a liquidity position that will allow us to move forward with our business plan. During the past month, we have confirmed the availability of each of our lines of credit with our lending banks and we are pleased to say that we continue to have in place a $300 million committed credit facility, and additional discretionary lines of credit totaling $420 million. As always, we will use this working capital wisely during our 2009 fiscal year.

There is no doubt that we will see continued volatility in the financial and commodity markets over at least the next few quarters. We believe that our conservative style, the strength of our company and the solid assets in which our capital is invested will allow us to continue to prosper and weather any storms on the horizon.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended September 30, 2008, of $43.3 million, or $0.52 per share, a decrease of $114.4 million, or $1.32 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, 2008, of $268.7 million, or $3.18 per share, decreased $68.7 million, or $0.78 per share, from the same period in the prior year.

 Three Months         Year Ended Ended September 30,        Ended September 30, 2008      2007      2008       2007 ------- ---------- --------- ---------- (in thousands except per share amounts) Reported GAAP earnings         $43,266 $ 157,690  $268,728  $ 337,455 Items impacting comparability(1): Gain on sale of turbine                                      (586) Gain on disposal of Canadian operations            (120,301)            (120,301) Income from discontinued operations                       (3,094)             (15,479) Reversal of reserve for preliminary project costs                                         (4,787) Resolution of purchased gas contingency                                           (2,344) Discontinuation of hedge accounting                                      (1,888)  ------- ---------- --------- ---------- Operating Results              $43,266 $  34,295  $268,142  $ 192,656 ======= ========== ========= ==========  Reported GAAP earnings per share                         $  0.52 $    1.84  $   3.18  $    3.96 Items impacting comparability(1): Gain on sale of turbine                                     (0.01) Gain on disposal of Canadian operations               (1.41)               (1.41) Income from discontinued operations                        (0.03)               (0.18) Reversal of reserve for preliminary project costs                                          (0.06) Resolution of purchased gas contingency                                            (0.03) Discontinuation of hedge accounting                                       (0.02)  ------- ---------- --------- ---------- Operating Results              $  0.52 $    0.40  $   3.17  $    2.26 ======= ========== ========= ========== 

(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 financial results when comparing the 2008 fourth quarter and fiscal year to the comparable periods in fiscal 2007. Excluding fourth quarter items, most of which occurred in fiscal 2007, Operating Results for the current fourth quarter of $43.3 million, or $0.52 per share, increased $9.0 million, or $0.12 per share. Operating Results for the fiscal year ended September 30, 2008 of $268.1 million, or $3.17 per share, increased $75.5 million, or $0.91 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

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

Exploration and Production Segment

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

The Exploration and Production segment’s earnings in the fourth quarter of fiscal 2008 of $38.2 million, or $0.46 per share, decreased $107.5 million, or $1.24 per share, when compared with the prior year’s fourth quarter. Excluding earnings from discontinued operations discussed below, Operating Results in the Exploration and Production segment increased $15.9 million, or $0.20 per share, for the fourth quarter of fiscal 2008. The increase was primarily due to higher crude oil and natural gas prices realized after hedging. For the quarter ended September 30, 2008, the weighted average oil price received by Seneca (after hedging) was $87.29 per Bbl, an increase of $25.94 per Bbl, from the prior year’s quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended September 30, 2008, was $9.41 per thousand cubic feet (“Mcf”), an increase of $2.28 per Mcf. Lower interest expense, a lower effective tax rate, and a net positive mark-to-market adjustment to recognize hedge ineffectiveness on certain derivative financial instruments used to hedge prices on Seneca’s oil and gas production during the quarter also contributed to the growth in operating results.

Overall production for the quarter ended September 30, 2008 was 9.4 Bcfe, a decrease of 0.6 Bcfe compared to the prior year’s quarter (excluding 2007 production from discontinued operations). Hurricane related shut-ins reduced the production of Seneca’s Gulf division by approximately 1.0 Bcfe. While Seneca’s properties sustained only superficial damage from the hurricanes, approximately 50 percent of the pre-hurricane production remains shut-in due to repair work on third party pipelines and onshore processing facilities. The majority of this production is anticipated to return by December 1, 2008. Production increased in the West and East (Appalachia) Divisions.

Other items impacting Operating Results for the quarter were higher lease operating expenses (“LOE”), higher other operating expenses and lower interest income. The increase in LOE is due to higher steaming costs in California (especially the higher cost of natural gas purchased, and transported to the on-site boiler to generate that steam) and an increase in costs associated with a higher number of producing properties in Appalachia. The increase in other operating expenses was due to the recognition of actual plugging costs in excess of amounts previously accrued.

The Exploration and Production segment’s earnings of $146.6 million, or $1.73 per share, for the fiscal year ended September 30, 2008, decreased $64.1 million, or $0.74 per share, when compared with the fiscal year ended September 30, 2007. Excluding earnings from discontinued operations, Operating Results for the fiscal year ended September 30, 2008, in the Exploration and Production segment increased $71.7 million, or $0.85 per share from the prior year. The increase was primarily due to higher crude oil and natural gas prices realized after hedging and was also significantly impacted by higher natural gas production. For the fiscal year ended September 30, 2008, the weighted average oil price received by Seneca (after hedging) was $81.75 per Bbl, an increase of $30.07 per Bbl, from the prior fiscal year. The weighted average natural gas price received by Seneca (after hedging) for the fiscal year ended September 30, 2008, was $9.05 per Mcf, an increase of $1.80. Overall production for the 2008 fiscal year was 40.8 Bcfe, an increase of 1.5 Bcfe, compared to the prior fiscal year (excluding 2007 production from discontinued operations). An increase in natural gas production more than offset a decline in crude oil production. Higher interest income and lower interest expense during the 2008 fiscal year also contributed to the increase in Operating Results.

Other items impacting Operating Results for the fiscal year ended September 30, 2008, were higher depletion expense, LOE, general and administrative (“G&A”) expenses, other operating expenses and state income taxes. The increase in depletion expense was caused by higher production and the increase in the depletable base. The increase in LOE is due to the High Island 24L field that began production in October 2007, higher steaming costs in California, and an increase in costs associated with a higher number of producing properties in Appalachia. The largest contributor to the higher G&A costs was the increase in staffing and associated costs for the growing East Division. The increase in other operating expenses was due to the recognition of actual plugging costs in excess of previously accrued amounts.

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 $13.2 million, or $0.16 per share, for the quarter ended September 30, 2008, decreased $0.1 million, or less than $0.01 per share, when compared with the same period in the prior fiscal year. The decrease was due to lower efficiency gas revenues, higher operating expenses and higher interest expense in this year’s fourth quarter compared to the prior year’s fourth quarter. The negative earnings impact of these items was mostly offset by an increase in the allowance for funds used during construction (“AFUDC”) related to the construction of the Empire Connector.

Earnings of $54.1 million, or $0.64 per share, for the fiscal year ended September 30, 2008, decreased $2.2 million, or $0.02 per share, when compared with the fiscal year ended September 30, 2007. The comparability of the results for the fiscal year ended September 30, 2008, is impacted by the reversal in the prior year of a $4.8 million reserve for preliminary project costs on the Empire Connector project, and a $1.9 million gain associated with the prepayment in the first quarter of 2007 of the project financing debt for the Empire State Pipeline. Excluding those items, Operating Results increased $4.4 million, or $0.06 per share, for the fiscal year ended September 30, 2008, mainly due to higher transportation and storage revenues and higher efficiency gas revenues. Higher AFUDC related to construction of the Empire Connector also contributed to the increase in Operating Results. Higher operating expenses and interest expense during the fiscal year ended September 30, 2008, partially offset these items.

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania. The Utility segment’s loss of $0.8 million, or $0.01 per share for the quarter ended September 30, 2008, decreased $2.7 million, or $0.03 per share, compared to the prior year’s fourth quarter loss; however, the results are not directly comparable to the prior year’s fourth quarter due to a rate design change in the New York Division discussed below.

In the New York Division, the loss decreased $1.7 million or $0.02 per share. On December 21, 2007, the New York State Public Service Commission issued an order allowing Distribution to increase annual revenues by $1.8 million. In addition to the revenue increase, the order approved a rate design change, which allows Distribution to recover a greater amount of its operating costs in the minimum bill charge. This results in shifting more than $4.3 million of earnings from the second quarter of fiscal 2008 and spreading it to the following three fiscal quarters. As a result of this change, the loss for the fourth quarter of fiscal 2008 decreased when compared to the fourth quarter of fiscal 2007. Also contributing to the lower fourth quarter loss in fiscal 2008 was a higher non-cash accrual of interest income on a pension-related regulatory asset, lower depreciation and interest expense and higher usage per customer in the current quarter. The impact of regulatory true-up adjustments, higher bad debt and other operating expense during the current quarter had a negative impact on the loss for the quarter. In the Pennsylvania Division, the loss decreased $1.0 million primarily due to a lower effective tax rate.

The Utility segment’s earnings of $61.5 million, or $0.73 per share, for the fiscal year ended September 30, 2008, increased $10.6 million, or $0.13 per share, compared to the fiscal year ended September 30, 2007. Earnings of $40.7 million in Distribution’s New York Division for the fiscal year ended September 30, 2008, increased $6.9 million, or $0.09 per share, compared to the prior year. The increase is mainly due to lower postretirement benefits and bad debt expense, lower property and other taxes, and a higher non-cash accrual of interest income on a pension-related regulatory asset. Higher usage per customer, lower depreciation and interest expense, and a lower effective tax rate this fiscal year also contributed to the increase in earnings. The impact of these items more than offset the effect of the rate design change described above and the negative impact of certain regulatory true-up adjustments in the current fiscal year’s earnings.

For the fiscal year ended September 30, 2008, earnings of $20.8 million in Distribution’s Pennsylvania Division, or $0.25 per share, increased $3.7 million, or $0.04 per share, compared to the prior year. Earnings increased primarily due to an increase in base rates, higher usage per customer and a decrease in bad debt expense. On January 1, 2007, Distribution implemented a Settlement Agreement approved by the Pennsylvania Public Utility Commission that provided for a $14.3 million (before tax) annual base rate increase. Warmer weather during the fiscal year ended September 30, 2008, partially offset the increase in earnings.

Energy Marketing

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

The Energy Marketing segment’s net loss for the fourth quarter of fiscal 2008 of $1.2 million, or $0.01 per share, increased $0.4 million compared to the prior year’s fourth quarter loss of $0.8 million, due to lower margins. The lower margins were primarily driven by higher pipeline reservation charges related to additional storage capacity, as well as unfavorable pipeline imbalance resolution due to falling prices during the quarter. The margin decrease was partially offset by a lower effective tax rate.

Even though NFR’s reported sales volumes for the fourth quarter were 2.2 Bcf higher than the prior year’s fourth quarter, overall margins for the current quarter were lower. The increase in sales volume was primarily due to sales transactions that NFR undertook to offset certain basis risks that NFR was exposed to under certain commodity purchase contracts. Such offsetting transactions had the effect of increasing revenue and volumes sold, but the impact on earnings was minimal.

Earnings for the fiscal year ended September 30, 2008, of $5.9 million, or $0.07 per share, decreased $1.8 million, or $0.02 per share, compared to the fiscal year ended September 30, 2007. The comparability of the results is impacted by the reversal in 2007 of a $2.3 million accrual for purchased gas expense for which a contingency was resolved during the second quarter of that year. Excluding this item, Operating Results for the fiscal year ended September 30, 2008, increased $0.6 million, or $0.01 per share, compared to the prior year, mainly due to increased sales volumes. NFR also benefited from the profitable sale of certain gas held as inventory and from the marketing flexibility that it derives from its contracts for significant storage capacity. Lower income tax expense during fiscal 2008 also contributed to the increase in Operating Results. Higher bad debt expense and lower interest income partially offset these items.

Timber Segment

The Timber segment operations are carried out by Highland Forest Resources, Inc. 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 experienced a loss of $2.1 million, or $0.03 per share for the quarter ended September 30, 2008, compared to earnings of $0.7 million or $0.01 per share for the quarter ended September 30, 2007. Earnings for the fiscal year ended September 30, 2008, of $0.1 million reflects a decrease of $3.6 million from the prior year’s earnings. The decrease in earnings for the quarter and fiscal year ended September 30, 2008 is mainly due to lower sales volumes and lower market prices in the current fiscal period. The most significant decrease in volumes occurred in high margin cherry veneer logs and cherry kiln dry lumber. The lower sales volumes are the result of depressed market conditions and reduced demand.

Corporate and All Other

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

The Corporate and All Other category experienced a loss for the quarter ended September 30, 2008, of $4.1 million compared to earnings of $2.2 million for the prior year’s fourth quarter. Higher operating expenses, higher interest expense, lower interest income and higher income taxes were the primary reasons for the increased loss in this category. The increase in income taxes is due to the allocation of the benefit of the Parent Company’s tax loss to the operating subsidiaries in accordance with an intercompany tax sharing agreement. The operating segments reflect their allocated portion of this tax benefit in the respective segment results.

Earnings in the Corporate and All Other category for the fiscal year ended September 30, 2008 were $0.5 million, a decrease of $7.6 million when compared to the prior year’s earnings. The comparability of the fiscal year results is impacted by a $0.6 million gain in 2008 on the sale of a gas-powered turbine Horizon Power, Inc. had previously planned to use in the development of a co-generation plant. Excluding this item, Operating Results decreased $8.2 million. Higher operating expenses, mainly related to the proxy contest initiated by a shareholder, lower interest income and a higher effective tax rate due to the allocation in the fourth quarter of the tax benefit described above, more than offset an increase in margins from the landfill gas operations and higher income from unconsolidated subsidiaries.

Discontinued Operations

On August 31, 2007, Seneca completed the sale of its Canadian subsidiary. As a result of that sale, the Company has presented the Canadian operations as discontinued operations. Earnings in the fourth quarter of fiscal 2007 include earnings from discontinued operations of $123.4 million. Earnings for the fiscal year ended September 30, 2007, include earnings from discontinued operations of $135.8 million. There were no earnings from discontinued operations for the quarter or fiscal year ended September 30, 2008.

LIQUIDITY/CASH FLOW OUTLOOK

National Fuel has designed its capital expenditure budget to allow it to live within cash flow in fiscal 2009. During the Company’s third quarter earnings teleconference, management had announced fiscal 2009 forecasted capital expenditures in the range of $328 to $403 million. Since that time, Seneca was the high bidder for approximately 24,000 mineral acres in Pennsylvania at a cost of approximately $74 million. Seneca is in the process of negotiating the lease terms for that acreage. The Company also continues to pursue the sale of certain landfill gas related assets. National Fuel anticipates that cash from operations and the proceeds from those asset sales should be sufficient to fund its 2009 capital investments, the lease payments discussed above, operating expenses, and dividend payments. In the event conditions in the credit markets improve, the Company may accelerate spending for some capital projects and modestly exceed its projected 2009 cash flow.

National Fuel’s cash from operations is somewhat dependent on the crude oil and natural gas commodity prices received by Seneca for the sale of its production. As previously disclosed, using the middle of its range of production guidance, Seneca has approximately 44 percent of its fiscal 2009 gas production hedged at an average price of $9.49 per Mcf and 40 percent of its fiscal 2009 oil production hedged at a Midway-Sunset price of $83.12 per barrel (which equates to a NYMEX price of approximately $94.30). The operating cash flows of National Fuel’s Utility and Pipeline and Storage segments are considerably less sensitive to changes in commodity prices.

From time-to-time, the Company uses short-term borrowings to finance its working capital needs. National Fuel maintains $420 million of uncommitted lines of credit with various banks and a $300 million commercial paper program. The commercial paper program is backed by a $300 million syndicated committed credit facility that extends through September 30, 2010.

EARNINGS GUIDANCE

The Company is revising its earnings guidance for fiscal 2009 to reflect a change in pricing assumptions for natural gas and crude oil. The revised earnings range is $2.60 to $2.80 per share. This includes oil and gas production for the Exploration and Production segment in the range of 38 to 44 Bcfe and is based on hedges currently in place and flat commodity pricing on non-hedged volumes, exclusive of basis differential, of $7.00 per MMBtu for natural gas and $70 per Bbl for crude oil. The Company is currently exploring a possible sale of certain landfill gas related assets. The guidance for fiscal 2009 does not take into account any earnings impacts resulting from such possible sale or sales. If a sale were to occur, certain earnings that have historically been included in Operating Results would be changed to a non-operating classification, as would any gain or loss on the sale.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 7, 2008, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s Web site at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-800-659-2032, and using the passcode “80054431.” 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) 1-888-286-8010 using passcode “13507417.” Both the webcast and telephonic replay will be available until the close of business on Friday, November 14, 2008.

National Fuel is an integrated energy company with $4.1 billion in assets comprised of the following five operating segments: Exploration and Production, Pipeline and Storage, Utility, Energy Marketing, and Timber. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,”"estimates,”"expects,”"forecasts,”"intends,”"plans,”"predicts,”"projects,”"believes,”"seeks,”"will,”"may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and their effect on the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments; occurrences affecting the Company’s ability to obtain financing under credit lines or other credit facilities or through the issuance of commercial paper, other short-term notes or debt or equity securities, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; economic disruptions caused by terrorist activities, acts of war or major accidents; changes in actuarial assumptions, the interest rate environment and the return on assets for the Company’s retirement plan and post-retirement benefit plans, which can affect future funding obligations and costs and plan liabilities; changes in demographic patterns and weather conditions, including the occurrence of severe weather such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company’s natural gas and oil reserves; uncertainty of oil and natural gas reserve estimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including shortages, delays or unavailability of equipment and services required in drilling operations; significant changes from expectations in the Company’s actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; impairments under the Securities and Exchange Commission’s full cost ceiling test for natural gas and oil reserves; changes in the market price of timber and the impact such changes might have on the types and quantity of timber harvested by the Company; 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 or activist shareholder campaigns to effect changes at the Company; 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.

 NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS QUARTER ENDED SEPTEMBER 30, 2008  Exploration Pipeline           Energy && (Thousands of Dollars)        Production  Storage  Utility  Marketing * ----------------------------------------  Fourth quarter 2007 GAAP earnings                      $ 145,711  $13,311  $(3,436)  $  (768) Items impacting comparability: Gain on disposal of discontinued operations ***    (120,301) Earnings from discontinued operations                       (3,094) ---------------------------------------- Fourth quarter 2007 Operating Results                          22,316   13,311   (3,436)     (768)  Drivers of Operating Results Higher (lower) crude oil prices                           12,616 Higher (lower) natural gas prices                            7,317 Higher (lower) natural gas production                         (460) Higher (lower) crude oil production                       (3,014) Derivative mark to market adjustment                        1,079 Lower (higher) lease operating expenses               (2,844) Lower (higher) depreciation / depletion                                             473  Higher (lower) transportation and storage revenues                        (176) Higher (lower) efficiency gas revenues                                  (1,549) Lower (higher) operating expenses                         (2,428)    (371)    (907) Lower (higher) property, franchise and other taxes                             289  Base rate increase in New York                                                1,895 Higher (lower) usage                                   649 Regulatory true-up adjustments                                        (3,011)  Higher (lower) income from unconsolidated subsidiaries  Higher (lower) margins                                          (677)  Higher AFUDC**                              1,949 Higher (lower) interest income                             (970)            2,608      (100) (Higher) lower interest expense                           2,066     (341)     607  Lower (higher) income tax expense                           2,339               466       524  All other / rounding                 210      395     (389)     (170) ----------------------------------------  Fourth quarter 2008 GAAP earnings                      $  38,227  $13,218  $  (756)  $(1,191) ========================================  NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS QUARTER ENDED SEPTEMBER 30, 2008  Corporate / (Thousands of Dollars)                  Timber  All Other Consolidated ---------------------------------  Fourth quarter 2007 GAAP earnings      $   675   $ 2,197    $ 157,690 Items impacting comparability: Gain on disposal of discontinued operations ***                                              (120,301) Earnings from discontinued operations                          (3,094) --------------------------------- Fourth quarter 2007 Operating Results      675     2,197       34,295  Drivers of Operating Results Higher (lower) crude oil prices                                12,616 Higher (lower) natural gas prices                               7,317 Higher (lower) natural gas production                            (460) Higher (lower) crude oil production                            (3,014) Derivative mark to market adjustment                            1,079 Lower (higher) lease operating expenses                                                      (2,844) Lower (higher) depreciation / depletion                                 477                    950  Higher (lower) transportation and storage revenues                                                (176) Higher (lower) efficiency gas revenues                                                      (1,549) Lower (higher) operating expenses          261    (1,630)      (5,075) Lower (higher) property, franchise and other taxes                                                  289  Base rate increase in New York                                  1,895 Higher (lower) usage                                              649 Regulatory true-up adjustments                                 (3,011)  Higher (lower) income from unconsolidated subsidiaries                        (288)        (288)  Higher (lower) margins                  (4,094)     (110)      (4,881)  Higher AFUDC**                                                  1,949 Higher (lower) interest income                      (746)         792 (Higher) lower interest expense                     (713)       1,619  Lower (higher) income tax expense          558    (2,518)       1,369  All other / rounding                        16      (317)        (255) ---------------------------------  Fourth quarter 2008 GAAP earnings      $(2,107)  $(4,125)   $  43,266 ================================= 

 * Includes discontinued operations ** AFUDC = Allowance for Funds Used During Construction *** 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, 2008  Exploration Pipeline          Energy && Production  Storage  Utility Marketing * ---------------------------------------  Fourth quarter 2007 GAAP earnings                          $ 1.70   $ 0.16  $(0.04)   $(0.01) Items impacting comparability: Gain on disposal of discontinued operations            (1.41) Earnings from discontinued operations                         (0.03) --------------------------------------- Fourth quarter 2007 Operating Results                             0.26     0.16   (0.04)    (0.01)  Drivers of Operating Results Higher (lower) crude oil prices                              0.15 Higher (lower) natural gas prices                              0.09 Higher (lower) natural gas production                             - Higher (lower) crude oil production                         (0.04) Derivative mark to market adjustment                          0.01 Lower (higher) lease operating expenses                           (0.03) Lower (higher) depreciation / depletion                                            0.01  Higher (lower) transportation and storage revenues                            - Higher (lower) efficiency gas revenues                                    (0.02) Lower (higher) operating expenses                           (0.03)       -   (0.01) Lower (higher) property, franchise and other taxes  Base rate increase in New York                        0.02 Higher (lower) usage                                  0.01 Regulatory true-up adjustments                       (0.04)  Higher (lower) income from unconsolidated subsidiaries  Higher (lower) margins                                         (0.01)  Higher AFUDC**                                0.02 Higher (lower) interest income      (0.01)            0.03         - (Higher) lower interest expense                             0.02        -    0.01  Lower (higher) income tax expense                             0.03                -      0.01  All other / rounding                 0.01                -         - ---------------------------------------  Fourth quarter 2008 GAAP earnings                          $ 0.46   $ 0.16  $(0.01)   $(0.01) =======================================  NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE QUARTER ENDED SEPTEMBER 30, 2008  Corporate / Timber  All Other Consolidated --------------------------------  Fourth quarter 2007 GAAP earnings       $ 0.01    $ 0.02       $ 1.84 Items impacting comparability: Gain on disposal of discontinued operations                                                     (1.41) Earnings from discontinued operations                           (0.03) -------------------------------- Fourth quarter 2007 Operating Results     0.01      0.02         0.40  Drivers of Operating Results Higher (lower) crude oil prices                                  0.15 Higher (lower) natural gas prices                                0.09 Higher (lower) natural gas production                               - Higher (lower) crude oil production                             (0.04) Derivative mark to market adjustment                             0.01 Lower (higher) lease operating expenses                                                       (0.03) Lower (higher) depreciation / depletion                                   -                   0.01  Higher (lower) transportation and storage revenues                                                   - Higher (lower) efficiency gas revenues                          (0.02) Lower (higher) operating expenses            -     (0.02)       (0.06) Lower (higher) property, franchise and other taxes                                                        -  Base rate increase in New York                                   0.02 Higher (lower) usage                                             0.01 Regulatory true-up adjustments                                  (0.04)  Higher (lower) income from unconsolidated subsidiaries                           -            -  Higher (lower) margins                   (0.05)        -        (0.06)  Higher AFUDC**                                                   0.02 Higher (lower) interest income                     (0.01)        0.01 (Higher) lower interest expense                    (0.01)        0.02  Lower (higher) income tax expense         0.01     (0.03)        0.02  All other / rounding                         -                   0.01 --------------------------------  Fourth quarter 2008 GAAP earnings       $(0.03)   $(0.05)      $ 0.52 ================================ 

 * Includes discontinued operations ** AFUDC = Allowance for Funds Used During Construction 

 NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS YEAR ENDED SEPTEMBER 30, 2008  Exploration Pipeline           Energy && (Thousands of Dollars)        Production  Storage  Utility  Marketing * ----------------------------------------  Fiscal 2007 GAAP earnings      $ 210,669  $56,386  $50,886   $ 7,663 Items impacting comparability: Gain on disposal of discontinued operations ***    (120,301) Earnings from discontinued operations                      (15,479) Reversal of reserve for preliminary project costs                 (4,787) Resolution of a purchased gas contingency                                                  (2,344) Discontinuance of hedge accounting                                (1,888) ---------------------------------------- Fiscal 2007 Operating Results     74,889   49,711   50,886     5,319  Drivers of Operating Results Higher (lower) crude oil prices                           60,008 Higher (lower) natural gas prices                           26,157 Higher (lower) natural gas production                       11,782 Higher (lower) crude oil production                       (5,839) Lower (higher) lease operating expenses              (11,879) Lower (higher) depreciation / depletion                        (9,130)              929  Higher (lower) transportation and storage revenues                       2,350 Higher (lower) efficiency gas revenues                                     500 Lower (higher) operating expenses                         (6,192)  (1,283)   4,670    (1,126) Lower (higher) property, franchise and other taxes                           1,185  Base rate decrease in New York                                                 (934) Base rate increase in Pennsylvania                                        2,572 Higher (lower) usage                                 1,722 Warmer weather in Pennsylvania                                       (1,637) Regulatory true-up adjustments                                        (1,763)  Higher (lower) income from unconsolidated subsidiaries  Higher (lower) margins                                         1,202  Higher AFUDC**                              4,201 Higher (lower) interest income                              660             2,608      (233) (Higher) lower interest expense                           6,564   (1,476)     330  Lower (higher) income tax expense                          (1,068)              675       987  All other / rounding                 660      145      229      (260) ----------------------------------------  Fiscal 2008 Operating Results    146,612   54,148   61,472     5,889 Items impacting comparability: Gain on sale of turbine ---------------------------------------- Fiscal 2008 GAAP earnings      $ 146,612  $54,148  $61,472   $ 5,889 ========================================  NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS YEAR ENDED SEPTEMBER 30, 2008  Corporate / (Thousands of Dollars)                  Timber  All Other Consolidated ---------------------------------  Fiscal 2007 GAAP earnings              $ 3,728   $ 8,123    $ 337,455 Items impacting comparability: Gain on disposal of discontinued operations ***                                              (120,301) Earnings from discontinued operations                         (15,479) Reversal of reserve for preliminary project costs                                                 (4,787) Resolution of a purchased gas contingency                                                   (2,344) Discontinuance of hedge accounting                             (1,888) --------------------------------- Fiscal 2007 Operating Results            3,728     8,123      192,656  Drivers of Operating Results Higher (lower) crude oil prices                                60,008 Higher (lower) natural gas prices                              26,157 Higher (lower) natural gas production                          11,782 Higher (lower) crude oil production                            (5,839) Lower (higher) lease operating expenses                                                     (11,879) Lower (higher) depreciation / depletion                                                     (8,201)  Higher (lower) transportation and storage revenues                                               2,350 Higher (lower) efficiency gas revenues                                                         500 Lower (higher) operating expenses                 (6,129)     (10,060) Lower (higher) property, franchise and other taxes                                                1,185  Base rate decrease in New York                                   (934) Base rate increase in Pennsylvania                              2,572 Higher (lower) usage                                            1,722 Warmer weather in Pennsylvania                                 (1,637) Regulatory true-up adjustments                                 (1,763)  Higher (lower) income from unconsolidated subsidiaries                         861          861  Higher (lower) margins                  (4,222)      220       (2,800)  Higher AFUDC**                                                  4,201 Higher (lower) interest income                    (1,332)       1,703 (Higher) lower interest expense                                 5,418  Lower (higher) income tax expense          809    (1,748)        (345)  All other / rounding                      (208)      (81)         485 ---------------------------------  Fiscal 2008 Operating Results              107       (86)     268,142 Items impacting comparability: Gain on sale of turbine                              586          586 --------------------------------- Fiscal 2008 GAAP earnings              $   107   $   500    $ 268,728 ================================= 

 * Includes discontinued operations ** AFUDC = Allowance for Funds Used During Construction *** 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, 2008  Exploration Pipeline          Energy && Production  Storage  Utility Marketing * ---------------------------------------  Fiscal 2007 GAAP earnings          $ 2.47   $ 0.66  $ 0.60    $ 0.09 Items impacting comparability: Gain on disposal of discontinued operations            (1.41) Earnings from discontinued operations                         (0.18) Reversal of reserve for preliminary project costs                   (0.06) Resolution of a purchased gas contingency                                                   (0.03) Discontinuance of hedge accounting                                  (0.02) --------------------------------------- Fiscal 2007 Operating Results        0.88     0.58    0.60      0.06  Drivers of Operating Results Higher (lower) crude oil prices                              0.71 Higher (lower) natural gas prices                              0.31 Higher (lower) natural gas production                          0.14 Higher (lower) crude oil production                         (0.07) Lower (higher) lease operating expenses                           (0.14) Lower (higher) depreciation / depletion                          (0.11)            0.01  Higher (lower) transportation and storage revenues                         0.03 Higher (lower) efficiency gas revenues                                     0.01 Lower (higher) operating expenses                           (0.07)   (0.01)   0.06     (0.01) Lower (higher) property, franchise and other taxes                            0.01  Base rate decrease in New York                       (0.01) Base rate increase in Pennsylvania                                         0.03 Higher (lower) usage                                  0.02 Warmer weather in Pennsylvania                       (0.02) Regulatory true-up adjustments                       (0.02)  Higher (lower) income from unconsolidated subsidiaries  Higher (lower) margins                                          0.01  Higher AFUDC**                                0.05 Higher (lower) interest income       0.01             0.03         - (Higher) lower interest expense                             0.08    (0.02)      -  Lower (higher) income tax expense                            (0.01)            0.01      0.01  All other / rounding                    -        -    0.01         - ---------------------------------------  Fiscal 2008 Operating Results        1.73     0.64    0.73      0.07 Items impacting comparability: Gain on sale of turbine --------------------------------------- Fiscal 2008 GAAP earnings          $ 1.73   $ 0.64  $ 0.73    $ 0.07 =======================================  NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE YEAR ENDED SEPTEMBER 30, 2008  Corporate / Timber  All Other Consolidated --------------------------------  Fiscal 2007 GAAP earnings               $ 0.04    $ 0.10       $ 3.96 Items impacting comparability: Gain on disposal of discontinued operations                                                     (1.41) Earnings from discontinued operations                           (0.18) Reversal of reserve for preliminary project costs                                                  (0.06) Resolution of a purchased gas contingency                                                    (0.03) Discontinuance of hedge accounting                              (0.02) -------------------------------- Fiscal 2007 Operating Results             0.04      0.10         2.26  Drivers of Operating Results Higher (lower) crude oil prices                                  0.71 Higher (lower) natural gas prices                                0.31 Higher (lower) natural gas production                            0.14 Higher (lower) crude oil production                             (0.07) Lower (higher) lease operating expenses                                                       (0.14) Lower (higher) depreciation / depletion                                                      (0.10)  Higher (lower) transportation and storage revenues                                                0.03 Higher (lower) efficiency gas revenues                           0.01 Lower (higher) operating expenses                  (0.07)       (0.10) Lower (higher) property, franchise and other taxes                                                     0.01  Base rate decrease in New York                                  (0.01) Base rate increase in Pennsylvania                               0.03 Higher (lower) usage                                             0.02 Warmer weather in Pennsylvania                                  (0.02) Regulatory true-up adjustments                                  (0.02)  Higher (lower) income from unconsolidated subsidiaries                        0.01         0.01  Higher (lower) margins                   (0.05)        -        (0.04)  Higher AFUDC**                                                   0.05 Higher (lower) interest income                     (0.02)        0.02 (Higher) lower interest expense                                  0.06  Lower (higher) income tax expense         0.01     (0.02)           -  All other / rounding                         -         -         0.01 --------------------------------  Fiscal 2008 Operating Results            (0.00)        -         3.17 Items impacting comparability: Gain on sale of turbine                             0.01         0.01 -------------------------------- Fiscal 2008 GAAP earnings               $(0.00)   $ 0.01       $ 3.18 ================================ 

* Includes discontinued operations

 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     2008        2007        2008        2007 ---------------------- ----------- ----------- ----------- ----------- Operating Revenues     $   397,858 $   302,030 $ 2,400,361 $ 2,039,566 ----------- ----------- ----------- -----------  Operating Expenses: Purchased Gas           152,816      79,164   1,235,157   1,018,081 Operation and Maintenance            107,228      90,905     432,871     396,408 Property, Franchise and Other Taxes         17,379      16,098      75,585      70,660 Depreciation, Depletion and Amortization            41,286      42,359     170,623     157,919 ----------- ----------- ----------- ----------- 318,709     228,526   1,914,236   1,643,068  Operating Income            79,149      73,504     486,125     396,498  Other Income (Expense): Income from Unconsolidated Subsidiaries             1,437       1,880       6,303       4,979 Other Income              2,394         908       7,376       4,936 Interest Income           2,459     (1,548)      10,815       1,550 Interest Expense on Long-Term Debt        (18,055)    (16,289)    (70,099)    (68,446) Other Interest Expense                    339     (1,151)     (3,870)     (6,029) ----------- ----------- ----------- -----------  Income from Continuing Operations Before Income Taxes               67,723      57,304     436,650     333,488  Income Tax Expense          24,457      23,009     167,922     131,813 ----------- ----------- ----------- -----------  Income from Continuing Operations                 43,266      34,295     268,728     201,675  Discontinued Operations: Income from Operations, Net of Tax                          -       3,094           -      15,479 Gain on Disposal, Net of Tax                   -     120,301           -     120,301 ----------- ----------- ----------- -----------  Income from Discontinued Operations, Net of Tax                             -     123,395           -     135,780 ----------- ----------- ----------- -----------  Net Income Available for Common Stock      $    43,266 $   157,690 $   268,728 $   337,455 =========== =========== =========== ===========  Earnings Per Common Share: Basic: Income from Continuing Operations   $      0.54 $      0.41 $      3.27 $      2.43 Income from Discontinued Operations             -        1.48           -        1.63 ----------- ----------- ----------- ----------- Net Income Available for Common Stock        $      0.54 $      1.89 $      3.27 $      4.06 =========== =========== =========== ===========  Diluted: Income from Continuing Operations   $      0.52 $      0.40 $      3.18 $      2.37 Income from Discontinued Operations             -        1.44           -        1.59 ----------- ----------- ----------- ----------- Net Income Available for Common Stock        $      0.52 $      1.84 $      3.18 $      3.96 =========== =========== =========== ===========  Weighted Average Common Shares: Used in Basic Calculation          80,858,668  83,506,748  82,304,335  83,141,640 =========== =========== =========== =========== Used in Diluted Calculation          82,896,107  85,577,898  84,474,839  85,301,361 =========== =========== =========== =========== 

 NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)  September  September 30,        30, (Thousands of Dollars)                              2008       2007 ----------------------------------------------------------------------  ASSETS Property, Plant and Equipment                    $4,873,969 $4,461,586 Less - Accumulated Depreciation, Depletion and Amortization                                     1,719,869  1,583,181 ------------------------------------------------ --------------------- Net Property, Plant and Equipment       3,154,100  2,878,405 ------------------------------------------------ ---------------------  Current Assets: Cash and Temporary Cash Investments                  68,239    124,806 Cash Held in Escrow                                       -     61,964 Hedging Collateral Deposits                               1      4,066 Receivables - Net                                   185,397    172,380 Unbilled Utility Revenue                             24,364     20,682 Gas Stored Underground                               87,294     66,195 Materials and Supplies - at average cost             31,317     35,669 Unrecovered Purchased Gas Costs                      37,708     14,769 Other Current Assets                                 65,158     45,057 Deferred Income Taxes                                     -      8,550 ------------------------------------------------ --------------------- Total Current Assets                      499,478    554,138 ------------------------------------------------ ---------------------  Other Assets: Recoverable Future Taxes                             82,506     83,954 Unamortized Debt Expense                             13,978     12,070 Other Regulatory Assets                             189,587    137,577 Deferred Charges                                      4,417      5,545 Other Investments                                    80,640     85,902 Investments in Unconsolidated Subsidiaries           16,279     18,256 Goodwill                                              5,476      5,476 Intangible Assets                                    26,174     28,836 Prepaid Pension and Post-Retirement Benefit Costs                                               21,034     61,006 Fair Value of Derivative Financial Instruments       28,786      9,188 Other                                                 7,732      8,059 ------------------------------------------------ --------------------- Total Other Assets                        476,609    455,869 ------------------------------------------------ --------------------- Total Assets                                     $4,130,187 $3,888,412 ------------------------------------------------ ---------------------  CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 79,120,544 Shares and 83,461,308 Shares, Respectively           $   79,121 $   83,461 Paid in Capital                                     567,716    569,085 Earnings Reinvested in the Business                 953,799    983,776 ------------------------------------------------ --------------------- Total Common Shareholders' Equity Before Items of Other Comprehensive Loss             1,600,636  1,636,322 Accumulated Other Comprehensive Income / (Loss)       2,963    (6,203) ------------------------------------------------ --------------------- Total Comprehensive Shareholders' Equity          1,603,599  1,630,119 Long-Term Debt, Net of Current Portion              999,000    799,000 ------------------------------------------------ --------------------- Total Capitalization                    2,602,599  2,429,119 ------------------------------------------------ ---------------------  Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper               -          - Current Portion of Long-Term Debt                   100,000    200,024 Accounts Payable                                    142,520    109,757 Amounts Payable to Customers                          2,753     10,409 Dividends Payable                                    25,714     25,873 Interest Payable on Long-Term Debt                   22,114     18,158 Customer Advances                                    33,017     22,863 Other Accruals and Current Liabilities               45,220     36,062 Deferred Income Taxes                                 1,871          -




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