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September 2011 Investor Presentation – National Fuel Gas Co.

National Fuel Gas Co. · Sep 9, 2011 · 99 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. September 2011 Investor Presentation – National Fuel Gas Co. – slide 1
    Investor Presentation Analyst Day September 9, 2011
  2. September 2011 Investor Presentation – National Fuel Gas Co. – slide 2
    National Fuel Gas Company September 9, 2011 Schedule of Speakers Time Presenter Topic 8:00 - 8:20 am Dave Smith Corporate Overview Chairman & Chief Executive Officer 8:20 - 8:35 am Matt Cabell Exploration & Production President…
  3. September 2011 Investor Presentation – National Fuel Gas Co. – slide 3
    Core Businesses September 9, 2011 Integrated Business Structure Seneca Resources Corporation Empire Pipeline & NFG Supply Corp. Significant Appalachian Growth Appalachian Pipeline Growth Leading Marcellus Position Delivery to…
  4. September 2011 Investor Presentation – National Fuel Gas Co. – slide 4
    Core Businesses September 9, 2011 Integrated Business Structure Exploration Pipeline & & Production Storage Non-Core Assets E&P Gulf of Mexico Midstream Sawmills Utility Landfill Gas Energy Gas-Fired Generation Midstream…
  5. September 2011 Investor Presentation – National Fuel Gas Co. – slide 5
    National Fuel Gas Company September 9, 2011 Unique Asset Mix Creates Operational Value Seneca Utility Resources Pipeline & Storage Midstream Energy Gathering Marketing The interconnected nature of the current asset mix…
  6. September 2011 Investor Presentation – National Fuel Gas Co. – slide 6
    National Fuel Gas Company September 9, 2011 Our Business Mix Leads to Long-Term Value Creation Seneca Utility Resources Pipeline & Storage Midstream Energy Gathering Marketing The strategic and financial benefits created…
  7. September 2011 Investor Presentation – National Fuel Gas Co. – slide 7
    National Fuel Gas Company September 9, 2011 Seneca Resources Joint Venture Discussions Price per Acre Initial acreage price targets met Risk Operational by several parties Allocation Control Several other negotiating points,…
  8. September 2011 Investor Presentation – National Fuel Gas Co. – slide 8
    National Fuel Gas Company September 9, 2011 Significant Growth Related to the Marcellus Shale Marcellus Shale Pipeline & Storage Midstream Exploration & Production (1) Footnote 1 goes here (2) Footnote 2 goes here 9
  9. September 2011 Investor Presentation – National Fuel Gas Co. – slide 9
    National Fuel Gas Company September 9, 2011 2014 Where We Are Headed Significant Ramp Up in Capital Expenditures to Fuel Marcellus Expansion 2011 to 2014: Growing Capital Expenditures at an 18% CAGR 2014 Forecasted Capital…
  10. September 2011 Investor Presentation – National Fuel Gas Co. – slide 10
    Exploration & Production September 9, 2011 (1) Footnote 1 goes here (2) Footnote 2 goes here 11
  11. September 2011 Investor Presentation – National Fuel Gas Co. – slide 11
    Seneca Resources September 9, 2011 Our Growth Story Not the same company we were just a few years ago Will continue to grow dramatically Production and reserves expected to triple or quadruple from 2010 to 2014 Held over 700,000…
  12. September 2011 Investor Presentation – National Fuel Gas Co. – slide 12
    Seneca Resources September 9, 2011 Major Transformation Over the Past Five Years Then Now Capital Expenditures Capital Expenditures Gulf of Mexico and Canada have been 2006: 70% Gulf of Mexico and Canada sold. 2011: 90% for…
  13. September 2011 Investor Presentation – National Fuel Gas Co. – slide 13
    Seneca Resources September 9, 2011 Top Tier Acreage and Resource Position Proved Reserves (at Sept. 30, 2010) 55.5 MMBoe California (333 Bcfe) Shallow Devonian 131 Bcfe Marcellus 202 Bcfe Prospective Resource Net Acres…
  14. September 2011 Investor Presentation – National Fuel Gas Co. – slide 14
    Seneca Resources September 9, 2011 Continued Improvement in Finding & Development Costs Three Year Average U.S Finding & Development Cost 8.00 7.63 7.38 3-Year F&D Cost (/Mcfe) 6.00 5.35 4.00 2.37 2.00 0.00…
  15. September 2011 Investor Presentation – National Fuel Gas Co. – slide 15
    Seneca Resources September 9, 2011 Ramping Up Production Growth 225 California Upper Devonian Marcellus Gulf of Mexico Canada 160-200 Annual production growth of 30% to Annual Production (Bcfe) 125-155 150 50% is…
  16. September 2011 Investor Presentation – National Fuel Gas Co. – slide 16
    Seneca Resources September 9, 2011 Capital Spending Shifting to the Marcellus 1,250 California Upper Devonian Marcellus Gulf of Mexico Canada 935- 840- 1,145 Capital Expenditures ( Millions) 1,000 785- 1,050 875 750…
  17. September 2011 Investor Presentation – National Fuel Gas Co. – slide 17
    Seneca Resources September 9, 2011 Marcellus Acreage Position Provides Superior Economics Marcellus Economics for a 6.2 Million Well 125% No Royalty 18% Royalty 100+% 100% 80% Pre-Tax IRR 75% 49% 50% 25% 33% 16%…
  18. September 2011 Investor Presentation – National Fuel Gas Co. – slide 18
    Seneca Resources September 9, 2011 Marcellus Shale Strategic Development Plan Gross Rig Count 16 Seneca EOG Gross Rig Count 12 9.5 10 8 8.5 3 3 Aggressively Develop our excellent 6 4 1.5 3 Tioga and Lycoming…
  19. September 2011 Investor Presentation – National Fuel Gas Co. – slide 19
    Marcellus Shale September 9, 2011 Senecas Development Areas Eastern Development Area (Mostly Leased) Western Development Area (Mostly Fee and HBP) SRC Fee Acreage SRC Lease Acreage EOG Acreage (1) Footnote 1 goes…
  20. September 2011 Investor Presentation – National Fuel Gas Co. – slide 20
    Marcellus Shale September 9, 2011 Eastern Development Area (EDA) Results & Plan Forward DCNR Tract 007 - Delineating Covington Developed 1 Well Drilled IP: 2 MMcf/d 47 Wells Drilled 44 Producing Acquired 3D Seismic (July, 11)…
  21. September 2011 Investor Presentation – National Fuel Gas Co. – slide 21
    Marcellus Shale September 9, 2011 EDA Typecurve 6.7 Bcfe EUR (Greater Than 3,500 Lateral) 12.0 Original 6.0 Bcf Typecurve EDA Average Daily Production Rate IP Rate 7,250 MMcf/d 6.7 Bcf Typecurve (40 Year Life) Hyp. Coeff. 1.4…
  22. September 2011 Investor Presentation – National Fuel Gas Co. – slide 22
    Marcellus Shale September 9, 2011 Western Development Area (WDA) Results & Plan Forward Approx. Outline of JV Acreage SRC Fee Acreage 200,000 Gross Acres Seneca 50% W.I. (Avg. 58% NRI) SRC Lease Acreage Mt. Jewett - Delineating…
  23. September 2011 Investor Presentation – National Fuel Gas Co. – slide 23
    Marcellus Shale September 9, 2011 Geotechnical Keys to Success 1. 3D Seismic Data Impacts surface location, lateral length and target zone by imaging faults and structure Attribute and fracture analyses being conducted to…
  24. September 2011 Investor Presentation – National Fuel Gas Co. – slide 24
    Marcellus Shale September 9, 2011 Expanding 3D Seismic Coverage DCNR 007 DCNR 001 Mt. Jewett West Branch Covington DCNR 595 Owls Nest DCNR 100 Punxy Completed 190,000 ac In Progress 128,000 ac (1) Footnote 1 goes…
  25. September 2011 Investor Presentation – National Fuel Gas Co. – slide 25
    Marcellus Shale September 9, 2011 Importance of 3D Seismic in Identifying Fractures DCNR 007 5H Well Drilled prior to 3D Seismic acquisition Well Test: 2 MMcf/d TGP 300 DCNR 007 Tioga County (1) Footnote 1 goes here (2)…
  26. September 2011 Investor Presentation – National Fuel Gas Co. – slide 26
    Marcellus Shale September 9, 2011 3D Seismic Analysis: Fracture Patterns DCNR 007 5H Well In a localized area with minimal fractures Fault 5H Major Fractures DCNR 007 Remainder of DCNR Tract 007 Tioga County…
  27. September 2011 Investor Presentation – National Fuel Gas Co. – slide 27
    Marcellus Shale September 9, 2011 Importance of Closure Stress & Target Zone Closure Stress & Target Zone High Closure Stress Impacts frac initiation & limits frac width. Avoid high closure stress pinch points. Currently…
  28. September 2011 Investor Presentation – National Fuel Gas Co. – slide 28
    Marcellus Shale September 9, 2011 Owls Nest Improved IPs by Optimizing The Target Zone Moving into Full Development 3H Production Results Treated Lateral: 4,396 Peak Rate: 4.47 MMcf/d 3-Day Ave: 4.25 MMcf/d Narrowed Union…
  29. September 2011 Investor Presentation – National Fuel Gas Co. – slide 29
    Marcellus Shale September 9, 2011 Breaking Down Our Acreage Position Possible Wells Area Net Acres Locations Wells Drilled Completed EUR (Bcfe) Status Eastern Development Area (EDA) Covington 7,000 47 47 44 5.5 Developed 595…
  30. September 2011 Investor Presentation – National Fuel Gas Co. – slide 30
    Marcellus Shale September 9, 2011 Strategic Plan Moving Forward Fiscal Year 2012 Eastern Development Area Move forward with full development of DCNR 100 (Lycoming) and DCNR 595 (Tioga) Drill several additional delineation wells…
  31. September 2011 Investor Presentation – National Fuel Gas Co. – slide 31
    New Plays September 9, 2011 Geneseo Shale Area Summary East Resources East Resources 3 Wells Permitted Drilled & Completed November 2010 Mt. Jewett Vertical (Seneca) April 2010 Depth: 5,095; Thickness: 110 Avg. Reservoir TOC:…
  32. September 2011 Investor Presentation – National Fuel Gas Co. – slide 32
    New Plays September 9, 2011 Utica Shale Activity Summary Seneca Resources Mt. Jewett Area Drilled: June 2011 Seneca Resources Tionesta Area Spud Date: 2012 Seneca Resources Henderson Area Spud Date: Sept 2011 Vertical…
  33. September 2011 Investor Presentation – National Fuel Gas Co. – slide 33
    New Plays September 9, 2011 Utica Program Update Seneca Resources recently drilled a vertical Utica/Pt. Pleasant strat test in McKean County, PA. Preliminary results are encouraging. 400 feet of gross reservoir at a depth of…
  34. September 2011 Investor Presentation – National Fuel Gas Co. – slide 34
    Marcellus Shale September 9, 2011 Drilling Cost Distribution Rig Rate (IDC) 22% Cuttings Handling and Disposal (IDC) 14% Tangibles - Casing, Wellhead (TDC) 10% Cement & Services (IDC) 9% Location & Containment (IDC) 8% Rig…
  35. September 2011 Investor Presentation – National Fuel Gas Co. – slide 35
    Marcellus Shale September 9, 2011 Continuously Improving Drilling Efficiency Wells Average Days per Well Drill & Suspend Costs per Pad Lateral Length (Incl. Mob) (MM per Well) Estimated 2011 Drill Cost 6-8 4,500 22 2.5 Target 6-8…
  36. September 2011 Investor Presentation – National Fuel Gas Co. – slide 36
    Marcellus Shale September 9, 2011 Completion Cost Distribution Stimulation 55% Rental Tools and Equipment 9% Water Services 7% Casedhole Logs and Perforating 7% Rig Rate 6% Well Testing and Flowback Services 3%…
  37. September 2011 Investor Presentation – National Fuel Gas Co. – slide 37
    Marcellus Shale September 9, 2011 Completion Cost Trends 2,000 Average Monthly Cost per Treatable Foot ( per Foot) 1,221/ft Average 1,500 1,438 945/ft 1,276 Average 1,193 1,075 730/ft 1,004 1,000 891 928 795 703…
  38. September 2011 Investor Presentation – National Fuel Gas Co. – slide 38
    Marcellus Shale September 9, 2011 Operational Efficiencies Drive Cost Savings Equipment Ownership (Frac Tanks, etc) Pad Cost Reductions Long-Term (Rig Mats, Concrete Frac Contract Pads, etc) Improved Efficiency Increased…
  39. September 2011 Investor Presentation – National Fuel Gas Co. – slide 39
    Marcellus Shale September 9, 2011 Cost Savings from Multi-Well Pad Drilling 1 Well per Pad 6 Wells per Pad Location & Road Costs Location & Road Costs 600,000 per well 100,000 per well Rig Mobilization Rig Mobilization 600,000…
  40. September 2011 Investor Presentation – National Fuel Gas Co. – slide 40
    Marcellus Shale September 9, 2011 Understanding Multi-Well Pad Drilling First Production Drill Vertical Section Prep for Completion 8 Days/Well 3.5 Days/Well 48 153 199 0 132 178 194 A typical 6-well pad can take between…
  41. September 2011 Investor Presentation – National Fuel Gas Co. – slide 41
    Marcellus Shale September 9, 2011 Water Management Program Water Sourcing: Coal mine runoff Permitted freshwater sources Recycled water Water Management: Instituted a Zero Surface Discharge policy Recycle Marcellus flowback…
  42. September 2011 Investor Presentation – National Fuel Gas Co. – slide 42
    Marcellus Shale September 9, 2011 Zero Liquid Discharge Operation Utilizing a state-of-the-art evaporative technology to ensure no liquid is discharged at the surface Building centrally located units in the Western Development…
  43. September 2011 Investor Presentation – National Fuel Gas Co. – slide 43
    Seneca Resources September 9, 2011 Leading Environmental Commitment www.FracFocus.org Seneca discloses its hydraulic fracturing data Testing Green Fluids Refueling Standards Evaluate shallow geology and shallow water…
  44. September 2011 Investor Presentation – National Fuel Gas Co. – slide 44
    California September 9, 2011 Stable Production and Strong Cash Flows California 2010 Rank Company BOEPD 1 Chevron 174,856 2 Aera (Shell/Exxon) 158,786 3 Occidental 151,584 4 Plains Exploration 36,488 5 Venoco Inc. 19,121…
  45. September 2011 Investor Presentation – National Fuel Gas Co. – slide 45
    California September 9, 2011 Stable Production Fields North Lost Hills 1,150 BOEPD Tulare & Etchegoin Formation South Lost Hills Primary & Steamflood 1,800 BOEPD 181 Active Wells Monterey Shale Primary 216 Active Wells North…
  46. September 2011 Investor Presentation – National Fuel Gas Co. – slide 46
    California September 9, 2011 Strong Margins Support Significant Free Cash Flow Fiscal Year 2011 Net Income and Expenses per BOE Income tax 21% DDA 13% Non-Steam Fuel LOE 12% Net Income Cash 31.97 Expenses 34.66 Other 5%…
  47. September 2011 Investor Presentation – National Fuel Gas Co. – slide 47
    Pipeline & Storage / Midstream September 9, 2011 (1) Footnote 1 goes here (2) Footnote 2 goes here 48
  48. September 2011 Investor Presentation – National Fuel Gas Co. – slide 48
    Midstream September 9, 2011 Critical To Boosting Returns in the Marcellus Midstreams gathering systems are TGP 300 critical to unlock remote, but highly productive Marcellus acreage Tioga County Goal is to first work to assist…
  49. September 2011 Investor Presentation – National Fuel Gas Co. – slide 49
    Midstream September 9, 2011 Covington Gathering System Tioga County Early completion of gathering system allowed Seneca to begin flowing gas as pads were completed TGP 300 As Senecas production matures, open pipeline to third…
  50. September 2011 Investor Presentation – National Fuel Gas Co. – slide 50
    Midstream September 9, 2011 Trout Run Gathering System Lycoming County Non-SRC Well Permits Will work to add 3rd party Marcellus producers to offset natural decline of Transco Senecas production (1) Footnote 1 goes here…
  51. September 2011 Investor Presentation – National Fuel Gas Co. – slide 51
    Midstream September 9, 2011 Future Opportunities for Expansion Will continue to evaluate new gathering infrastructure to alleviate constraints throughout the Marcellus Look to fill existing gathering infrastructure with 3rd…
  52. September 2011 Investor Presentation – National Fuel Gas Co. – slide 52
    Pipeline & Storage September 9, 2011 Expansive Network Located Centrally in Appalachia (1) Footnote 1 goes here (2) Footnote 2 goes here 53
  53. September 2011 Investor Presentation – National Fuel Gas Co. – slide 53
    Pipeline & Storage September 9, 2011 Intercompany Capacity Utilization Supply Transportation Contracts (1) Supply Storage Contracts (1) All Other 46% All Other NFG NFG Affiliates 50% Affiliates 54% 50% Our integrated…
  54. September 2011 Investor Presentation – National Fuel Gas Co. – slide 54
    Pipeline & Storage September 9, 2011 Positioned to Move Growing Marcellus Production (1) Footnote 1 goes here (2) Footnote 2 goes here 55
  55. September 2011 Investor Presentation – National Fuel Gas Co. – slide 55
    Pipeline & Storage September 9, 2011 Marcellus Producers Increase Utilization of NFGSC Marcellus Producers Transporting Gas on National Fuels System 12 9 Producers Flowing Marcellus Production 10 8 6 2 4 2…
  56. September 2011 Investor Presentation – National Fuel Gas Co. – slide 56
    Pipeline & Storage September 9, 2011 Shifting Sources of Throughput 5.00 47% Marcellus Marcellus 53% Upper Devonian Upper Devonian Local Production into NFGSC (Bcf per Month) 4.00 2% Marcellus 98% Upper Devonian…
  57. September 2011 Investor Presentation – National Fuel Gas Co. – slide 57
    Pipeline & Storage September 9, 2011 Stable Revenue Amid Changing Market Dynamics Niagara Dominion, South Point Differential 1.00 0.50 Gas Price Differential 0.00 -0.50 At the end of 2008, the differential between…
  58. September 2011 Investor Presentation – National Fuel Gas Co. – slide 58
    Pipeline & Storage September 9, 2011 Marcellus Driving Changing Gas Flow Patterns (1) Footnote 1 goes here (2) Footnote 2 goes here 59
  59. September 2011 Investor Presentation – National Fuel Gas Co. – slide 59
    Pipeline & Storage September 9, 2011 Positioned to Move Growing Marcellus Production NORTHERN ACCESS TIOGA EXPANSION COUNTY EXTENSION CENTRAL TIOGA COUNTY LAMONT EXTENSION COMPRESSOR STATION PHASE I & II COVINGTON…
  60. September 2011 Investor Presentation – National Fuel Gas Co. – slide 60
    Pipeline & Storage September 9, 2011 Marcellus Driven Expansion Projects 50,000 Dth/d Lamont Phase II Project (July 2011) 160,000 Dth/d Line N Expansion (October 2011) 350,000 Dth/d Tioga County Extension (November 2011)…
  61. September 2011 Investor Presentation – National Fuel Gas Co. – slide 61
    Pipeline & Storage September 9, 2011 Tioga County Extension Project Tioga County Extension FERC Certificate Issued: May 19, 2011 Anticipated In-Service: 11/2011 Firm Transportation: 350,000 Dth/d 15 Miles of 26 High Pressure…
  62. September 2011 Investor Presentation – National Fuel Gas Co. – slide 62
    Pipeline & Storage September 9, 2011 Line N Expansion Project Line N Expansion 2011 In-Service Date: 9/2011 Fully Subscribed: 160,000 Dth/D 20+ Miles of 20 Pipe New 4,740 HP Compression Station Delivery to TETCO at Holbrook…
  63. September 2011 Investor Presentation – National Fuel Gas Co. – slide 63
    Pipeline & Storage September 9, 2011 Marcellus Volumes from System Expansions 1,600,000 Actual Transported Marcellus Estimated Marcellus Volumes from System Production Volumes Expansions (80% Load Factor) 1,400,000 Central…
  64. September 2011 Investor Presentation – National Fuel Gas Co. – slide 64
    Pipeline, Storage & Midstream September 9, 2011 Significant Throughput Growth Supply Empire Midstream 1,200 1,000 800 741 Throughput (BCF) 685 600 515 400 374 308 200 0 2010 2011 2012 2013 2014 Forecast…
  65. September 2011 Investor Presentation – National Fuel Gas Co. – slide 65
    Pipeline & Storage Growth September 9, 2011 Deploying Significant Growth Capital Capital spending is ramping up significantly to fund system expansion and assuming recently allowed industry average ROE and capital structure…
  66. September 2011 Investor Presentation – National Fuel Gas Co. – slide 66
    Utility September 9, 2011 National Fuel Gas Distribution Corporation (1) Footnote 1 goes here (2) Footnote 2 goes here 67
  67. September 2011 Investor Presentation – National Fuel Gas Co. – slide 67
    Utility September 9, 2011 Strong Commitment to Safety 80 Capital Expenditures for Safety Capital spending from 2011 to 2014 is Total Capital Expenditures expected to be between Capital Expenditures ( Millions) 55 and 60…
  68. September 2011 Investor Presentation – National Fuel Gas Co. – slide 68
    Utility September 9, 2011 Operational Reliability Changing Natural Gas Supply Dynamics 2010/2011 Capacity Mix Future Capacity Mix Market Area/ Canada, Market Area/ Marcellus, REX Canada, Marcellus, REX 26% 48%…
  69. September 2011 Investor Presentation – National Fuel Gas Co. – slide 69
    Utility September 9, 2011 Continued Cost Control 350 All Other O&M Expenses O&M Expense - Uncollectibles 300 O&M Expense ( Millions) 250 204 203 203 200 191 181 28 27 25 27 14 150 100 176 178 176 164 167 50 0…
  70. September 2011 Investor Presentation – National Fuel Gas Co. – slide 70
    Utility September 9, 2011 Stable Earnings/Financial Stability Photo courtesy of Carl Heldmann , Build Your Own House - www.byoh.com (1) Footnote 1 goes here (2) Footnote 2 goes here 71
  71. September 2011 Investor Presentation – National Fuel Gas Co. – slide 71
    Utility September 9, 2011 Diluted Earnings per Share (Before Items Impacting Comparability) 1.00 0.80 0.76 Before Items Impacting Comparability 0.73 0.73 Diluted Earnings per Share (1) 0.60 0.60 0.55 0.40…
  72. September 2011 Investor Presentation – National Fuel Gas Co. – slide 72
    Utility September 9, 2011 Financial Stability Return on Equity 20.0% NY PA Allowed ROE - NY Approx. Settled ROE - PA 14.7% 15.0% 14.0% 13.2% Return on Equity 11.8% 10.9% 10.6% 9.8% 10.0% 9.1% 5.0% 0.0% 2007…
  73. September 2011 Investor Presentation – National Fuel Gas Co. – slide 73
    Utility September 9, 2011 Continuing Goals and Outlook Strong Commitment to Safety Operational Reliability Continue to control expenses Financial Stability Maintain a solid regulatory strategy to achieve strong…
  74. September 2011 Investor Presentation – National Fuel Gas Co. – slide 74
    Utility September 9, 2011 National Fuel Gas Distribution Corporation (1) Footnote 1 goes here (2) Footnote 2 goes here 75
  75. September 2011 Investor Presentation – National Fuel Gas Co. – slide 75
    National Fuel Gas Company September 9, 2011 Corporate & Financial Overview (1) Footnote 1 goes here (2) Footnote 2 goes here 76
  76. September 2011 Investor Presentation – National Fuel Gas Co. – slide 76
    National Fuel Gas Company September 9, 2011 Consolidated Capital Expenditures 2,000 Utility Pipeline & Storage Exploration & Production Midstream & Other Capital Expenditures ( Millions) 1,295- 1,500 1,570 1,015- 980-…
  77. September 2011 Investor Presentation – National Fuel Gas Co. – slide 77
    National Fuel Gas Company September 9, 2011 Cash Flow Forecast Utility 160 135- 145 120 120- Cash Flows ( Millions) 115- 115- 130 125 120 80 55- 55- 55- 55- 40 60 60 60 60 0 2011 2012 2013 2014 Forecast…
  78. September 2011 Investor Presentation – National Fuel Gas Co. – slide 78
    National Fuel Gas Company September 9, 2011 Cash Flow Forecast Pipeline & Storage 350 300- 300 350 Cash Flows ( Millions) 250 200 150 100- 100- 100- 110- 100 105- 150 95- 135 150 125 85- 115 105 50 95 0…
  79. September 2011 Investor Presentation – National Fuel Gas Co. – slide 79
    National Fuel Gas Company September 9, 2011 Cash Flow Forecast Exploration & Production 1,200 1,000 935- 900- 840- 1,145 Cash Flows ( Millions) 1,100 800 1,050 785- 875 650- 600 800 600- 655 400 450- 500 360-…
  80. September 2011 Investor Presentation – National Fuel Gas Co. – slide 80
    National Fuel Gas Company September 9, 2011 Hedge Positions and Strategy Hedged Forecasted Production As of September 9, 2011 Volume Average 100% Oil Swaps (MMBbl) Hedge Price % of Forecasted Production Hedged Fiscal 2012…
  81. September 2011 Investor Presentation – National Fuel Gas Co. – slide 81
    National Fuel Gas Company September 9, 2011 Cash Flow Forecast Midstream, Marketing & Other 100 75 Cash Flows ( Millions) 55-70 50 40-60 40-50 25 23-27 20-30 20-30 15-20 5-15 0 2011 2012 2013 2014 Forecast…
  82. September 2011 Investor Presentation – National Fuel Gas Co. – slide 82
    National Fuel Gas Company September 9, 2011 Financing Needs A Consolidated View of Cash Flows Cash from Ops Asset Sales & Other CapEx 2,000 2011E 2012E 2013E 2014E 1,500 Millions 1,000 124 1,433 1,300 1,153…
  83. September 2011 Investor Presentation – National Fuel Gas Co. – slide 83
    National Fuel Gas Company September 9, 2011 Strong Dividend Track Record 1.60 National Fuel has had 109 uninterrupted 1.40 years of dividend payments and has increased its dividend for 41 consecutive years 1.20 Annual Dividend…
  84. September 2011 Investor Presentation – National Fuel Gas Co. – slide 84
    National Fuel Gas Company September 9, 2011 Manageable Debt Maturity Schedule 350 300 300 250 250 Debt Maturity ( Millions) 250 200 150 150 100 49 50 50 6.700% 5.250% 6.500% 8.750%…
  85. September 2011 Investor Presentation – National Fuel Gas Co. – slide 85
    National Fuel Gas Company September 9, 2011 Financing Needs A Consolidated View of Cash Flows Cash from Ops Asset Sales & Other CapEx Dividend Debt Repayment Cash on Hand New Financing 2,000 2011E 2012E 2013E 2014E 1,500…
  86. September 2011 Investor Presentation – National Fuel Gas Co. – slide 86
    National Fuel Gas Company September 9, 2011 Targeted Capital Structure Debt Equity Utility 50% 50% Equity P&S 50% 50% 55% - 65% Debt 35% - 45% E&P 30% 70% All Other 40% 60% Capital Structure Long-Term Consolidated…
  87. September 2011 Investor Presentation – National Fuel Gas Co. – slide 87
    National Fuel Gas Company September 9, 2011 Investment Grade Credit Rating Current Credit Ratings Rating Agency Rating Fitch BBB+ Moodys Baa1 Standard & Poors BBB Capital Resources Total Short-Term Capacity: 685 Million…
  88. September 2011 Investor Presentation – National Fuel Gas Co. – slide 88
    National Fuel Gas Company September 9, 2011 Appendix (1) Footnote 1 goes here (2) Footnote 2 goes here 89
  89. September 2011 Investor Presentation – National Fuel Gas Co. – slide 89
    National Fuel Gas Company September 9, 2011 Fiscal Year 2012 Earnings Guidance Drivers 2012 Forecast GAAP Earnings per Share 2.85 - 3.15 Operating Earnings per Share 2.85 - 3.15 12% EPS Growth Exploration & Production Drivers…
  90. September 2011 Investor Presentation – National Fuel Gas Co. – slide 90
    Pipeline & Storage September 9, 2011 Expansion Initiatives Capacity Est. In-Service Project Name Market Status (Dth/D) CapEx Date Lamont Compressor Station 40,000 6 MM 6/15/10 Fully Subscribed Completed Flowing into TGP 300 Line…
  91. September 2011 Investor Presentation – National Fuel Gas Co. – slide 91
    Midstream Corporation September 9, 2011 Expansion Initiatives Capacity Est. In-Service Project Name Market Status (Dth/D) CapEx Date Covington Gathering System 140,000 16 MM 11/17/09 Fully Subscribed Completed Flowing into TGP…
  92. September 2011 Investor Presentation – National Fuel Gas Co. – slide 92
    Seneca Resources September 9, 2011 Industry Leading Production Growth U.S. Independent E&P Companies 2nd Quarter Year-Over-Year Production Growth 95% NFG HK 80% SFY XCO 65% EQT COG PXP 50% SM CHK GDP…
  93. September 2011 Investor Presentation – National Fuel Gas Co. – slide 93
    Marcellus Shale September 9, 2011 Eastern Development Area (EDA) Current Results Gross 2012 Possible Wells Production 3D Wells Location Locations Drilled (MMcf/d) Seismic Planned Comments Developed Covington 47 47 100+ Acquired…
  94. September 2011 Investor Presentation – National Fuel Gas Co. – slide 94
    Marcellus Shale September 9, 2011 Western Development Area (EDA) Results & Plan Forward Gross 2012 Possible Wells Production 3D Wells Location Locations Drilled (MMcf/d) Seismic Planned Comments Full Development Owls Nest/…
  95. September 2011 Investor Presentation – National Fuel Gas Co. – slide 95
    Marcellus Shale September 9, 2011 Ensuring Gas Reaches the Market Tioga County Production and Future Firm Sales 140 Firm Sales Tioga County Production 120 Firm Sales / Production (MMcf per Day) 100 80 60 Firm sales…
  96. September 2011 Investor Presentation – National Fuel Gas Co. – slide 96
    Marcellus Shale September 9, 2011 Water Sourcing Program Utilizing least quality freshwater sources, including abandoned coal mine drainage Centralized storage impoundments create a flexible and efficient water system Seven…
  97. September 2011 Investor Presentation – National Fuel Gas Co. – slide 97
    Seneca Resources September 9, 2011 Committed to Health, Safety and the Environment Seneca Resources Corporation Value Statement We ask that each employee share in our philosophy and unwavering commitment to each others health and…
  98. September 2011 Investor Presentation – National Fuel Gas Co. – slide 98
    National Fuel Gas Company September 9, 2011 Comparable GAAP Financial Measure Slides and Reconciliations This presentation contains certain non-GAAP financial measures. For pages that contain non-GAAP financial measures, pages…
  99. September 2011 Investor Presentation – National Fuel Gas Co. – slide 99
    September 9, 2011 Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2011 FY 2012 FY 2013 FY 2014 FY 2010 Forecast Forecast Forecast Forecast Capital Expenditures from Continuing…

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