National Fuel
Gas Company
SUMMARY ANNUAL REPORT 2017
Local Roots,
Broad Vision
For 115 years, National Fuel has been deeply rooted in the local
communities where we operate. In just the last decade, we have
invested more than $5 billion to increase the availability and
accessibility of our homegrown energy supplies. As natural gas
continues to play an important role in achieving the country’s long-
term economic and environmental goals, our vision remains focused
on developing our assets responsibly and serving our customers
safely and reliably. These actions will drive sustained value for our
shareholders and the communities we serve for years to come.
Front and inside covers: A drilling rig
sits atop a seven-well development pad
nestled within Lycoming County, Pa.
From the small six-acre surface footprint,
Seneca Resources Corporation will
access 100 Bcf of natural gas reserves
from 1,200 acres more than a mile
underground in the Marcellus Shale. This
pad will produce enough natural gas over
the first year to heat 290,000 average
homes in the northeast U.S.
SUMMARY ANNUAL REPORT 2017
1
RON TANSKI
President and
Chief Executive Officer
Ron stands near
Cattaraugus Creek in
Zoar Valley, N.Y., where
the Company operates
transmission and storage
facilities. National Fuel’s
pipelines safely pass
under more than
2,500 streams, creeks,
and rivers in western
New York and western
Pennsylvania.
Dear Shareholders,
Our 2017 fiscal year, perhaps more than
any other period during my 39-year career,
showcased the resilience and strength of
National Fuel’s integrated business model.
As oil and natural gas commodity prices plummeted
during the two preceding years, our ability to scale
down our capital spending allowed us to protect the
integrity of our balance sheet and ensure the viability
of each of our business segments. Over the past three
years, we continued to reduce our upstream operating
cost structure, which, as pricing stabilized during 2017,
positioned the Company to grow earnings and production.
We generated significant free cash flow and strengthened
our balance sheet. We also increased our dividend for
the 47th consecutive year.
The year was certainly not without its challenges. State
regulatory decisions emanating from Albany, N.Y., halted
near-term development activity for a major project in our
interstate Pipeline & Storage segment, and set a rate of
return on our Utility segment investments that was the
lowest in decades. Across the industry, the permitting
process for natural gas infrastructure projects has become
more politicized and unpredictable. Opponents, claiming
to be “environmentalists,” have vowed to stop or hinder
any type of hydrocarbon development, notwithstanding
the fact that approximately 65 percent of the nation’s
electricity is generated from hydrocarbons and more than
90 percent of the population in our utility service territory
depends on the continued flow of natural gas to support
their daily living.
Challenges like these are not new to us. As an energy
company with a successful 115-year history, we have
grown accustomed to dealing with the changing political
tastes of regulation and weathering the ebb and flow of
business cycles. While I expect the uncertain tenor of the
political environment to persist, I am optimistic about
the outlook for the industry and confident in our ability
to capitalize on opportunities.
2
NATIONAL FUEL GAS COMPANY
Fiscal 2017 was successful due to decisions made over
the prior two years in response to the downturn in
commodity prices. Like many energy companies, we
reduced our capital spending to strengthen our financial
position. We chose to cut back our production when prices
dipped too low. While we reduced our activities, we didn’t
sit still. We got out in front of the market, locking in sales
and prices on a majority of our production. We brought
in a joint development partner to help us fund a level of
Marcellus activity necessary to meet those firm sales
commitments, continue to drive operational efficiencies,
and generate enough production to utilize and profit from
our midstream investments.
As natural gas pricing at local sales points in Pennsylvania
recovered in 2017, Seneca resumed production from
previously shut-in wells and increased its annual
production to 173.5 Bcfe, a new high for the Company.
Seneca’s operations team and service crews continued
to develop our acreage faster and at a lower cost. Drilling
efficiencies and new discoveries in the Marcellus and
Utica shales allowed us to increase our proved reserves to
2.15 Tcfe. The surge in Seneca’s production, aided by joint
development activity, helped drive an outstanding year
for our Gathering segment, which saw earnings increase
by 32 percent.
Our rate-regulated Pipeline & Storage and Utility
segments continued to deliver consistent financial
performance and exceptional operational service. While
financial results at both segments trended modestly
lower, the stable base of cash flows supported the
continued investment in the safety and reliability of
our assets. In 2017, we dedicated nearly $115 million to
modernize our interstate pipeline and utility systems.
There were, however, a few setbacks. For the first time
in 10 years, our Utility’s New York division filed for an
increase in our tariff rates to provide a fair return on
recent investments. Despite the fact that we have the
lowest rates and best customer service, and a state-
commissioned report found we operate the most efficient
gas utility, the New York regulator took the opportunity
to reduce our allowed returns to the lowest in the country.
In our past few annual reports, I highlighted our
Northern Access pipeline expansion project that was
expected to be a significant catalyst for growth in our
upstream and midstream businesses. However, years
of planning, hard work, and community outreach
culminated with the April decision by New York state
to deny an environmental permit for reasons we believe
were politically motivated. In spite of thousands of
pages of technical analysis, months of collaboration and
compromise, and a proven track record of responsible
development, New York inexplicably raised the hurdle for
pipeline construction to a level that is not clearly defined
and is inconsistent with the standards applied to other
public infrastructure projects.
INVESTING IN OUR FUTURE
Consolidated Capital Expenditures ($ Millions)
$970
$1,001
$717
$366*
$455*
$717
$970
$590*
$1,001
DIVERSITY OF EARNINGS
AND CASH FLOWS
Percent of Fiscal 2017 Net Income
by Segment
Up
Mid
Down
$366*
16%
46%
$590*
38%
$455*
2013
2014
2015
2016
2017
2018E
Upstream
Midstream
Downstream
* Net of $157 million (2016), $7 million (2017), and $17 million (2018E)
of proceeds from joint development partner
2013
2014
2015
2016
2017
2018E
Upstream
Midstream
Downstream
Up
Mid
Down
Upstream
Midstream
Downstream
FORTY-SEVEN YEARS OF DIVIDEND INCREASES
Annual Rate Per Share at Fiscal Year-End
$0.19
1970
1982
1994
2006
2017
SUMMARY ANNUAL REPORT 2017
3
$1.66
$2.8 billion
dividend payments since 1970
Both outcomes, along with the denials of other operators’
pipeline projects, are troubling signals for the direction
of energy policy in the state — particularly our ability
to grow within our home borders. Regulatory risk
is a consideration that is becoming more prominent
in investor decision making. If not reversed, the
deteriorating regulatory climate will discourage
future investment, increase costs for consumers, and
put at risk the reliability of energy infrastructure that
underpins our economy.
Let me be clear: We will always invest what is necessary
to maintain the operational safety and reliability of
our pipeline systems. But we also have a duty to our
shareholders. Until the regulatory environment in
New York improves, our investments in the state will be
modest. Our diversified asset base affords us the flexibility
to redirect our growth capital to more welcoming areas.
Over the near term, Seneca’s development schedule
will focus in areas that will enable us to grow natural gas
production and gathering system throughput at a better-
than-10-percent annual rate for the next three to five
years. We added a second drilling rig in May to prepare
for upcoming pipeline capacity on Transco’s Atlantic
Sunrise project and entered into new long-term sales
agreements at attractive pricing to protect the economics
on a majority of that growth.
We will continue to leverage our integrated upstream
and midstream footprint in Pennsylvania to drive cost
efficiencies and improve returns on investment. In 2017,
Seneca successfully tested the Utica Shale in both the
Western Development Area (WDA) and parts of the
Eastern Development Area (EDA), providing years,
and perhaps decades, of additional highly economic
drilling inventory. In the WDA, we can drill up to 125
Utica wells on existing Marcellus pads, reusing roadways,
water handling, and gathering infrastructure to generate
higher consolidated returns.
There is still plenty of opportunity to continue
growing our pipeline and storage business. We began
our 2018 fiscal year by completing an expansion of Supply
Corporation’s Line D pipeline to bring more Appalachian
supplies into our Erie, Pa., utility service territory. We
are also advancing plans to expand our Line N pipeline
outside of Pittsburgh to serve industry moving into the
region, and increase capacity on Empire Pipeline to meet
the demand of producers in central Pennsylvania.
As we look out over the longer term, we expect that
partisan politics and extreme polarization at both
the state and federal level will leave us with no clear
energy policy. In a world that is increasingly, and rightly,
focused on issues of sustainability, the narrow agenda
promoted by “environmentalists” that ignores the
economic reality and environmental benefits of natural
gas is simply not sustainable. The growth in domestic
natural gas produced from shale has been the primary
driver of the reduction in U.S. greenhouse gas emissions
over the last 10 years, and has saved consumers thousands
of dollars in their energy bills. These benefits will likely
accelerate as natural gas continues to replace dirtier fuels
in power generation. In its 2017 Annual Energy Outlook,
the U.S. Energy Information Administration projected
that natural gas consumption will increase more than any
other fuel source through the year 2040 and greenhouse
gas emissions will continue to decline.
We are also mindful of the ongoing development of
renewable sources for electric power, having invested in
4
NATIONAL FUEL GAS COMPANY
Our Guiding Principles
Safety
We value the safety of all of our customers,
employees, and communities, and work diligently
to establish a culture of safety that is embraced
throughout the entire organization.
Environmental Stewardship
We play a unique and vital role in upholding
standards of environmental protection in every area
of our business. We are proactive and detailed in
our compliance with local, state, and federal laws.
Community
We are committed to the health and vitality of our
local communities. We work where we live and raise
our families, and are constantly focused on the
highest standards of corporate responsibility and
accountability.
Innovation
We strive to exceed the standards for safe, clean,
and reliable energy development. We invest in the
future of our regions’ energy resources. We envision
a long and healthy future for our Company.
Satisfaction
We work to deliver reliable, high-quality service
for our customers. We want our shareholders to see
a strong return on their investment. We want our
employees to work in a positive, safe, and rewarding
environment. We want our communities to be proud
to call us neighbors.
Transparency
We believe that open communication is key to
maintaining strong relationships. We see value in
educating our customers, shareholders, employees,
and the larger community about all aspects of
our work.
our own solar array to provide
power for our California oil
production operations. As the
demand for more resiliency of
the electric power grid and the
need to integrate all sources of
energy development occupies
the attention of regulators at
both the federal and state levels,
we will continue to responsibly
develop our assets to meet those
needs and grow our Company.
For decades, National Fuel
has focused on safe and
environmentally responsible
operations. Our proven track
record is rooted in our corporate
guiding principles (at left) and
is the result of the hard work
and dedication of our 2,100
employees. On the following
pages, we highlight a handful of
those employees who embody
National Fuel’s commitment to
“doing it right” every day.
Notwithstanding the challenges
we face today, I am confident
that National Fuel is uniquely
positioned to act on our
stakeholder commitments,
capitalize on our many
opportunities for growth, and
deliver sustained value for
our shareholders for decades
to come.
Ronald J. Tanski
President and
Chief Executive Officer
January 3, 2018
Invested in
Our Community
Going back to the first commercial natural gas
well drilled in Fredonia, N.Y., in 1821, National
Fuel and its predecessor companies have deep
roots in both the natural gas industry and the
local communities where we operate.
Upstream
National Fuel’s upstream
business is conducted through
its exploration and production
subsidiary Seneca Resources
Corporation, with operations
focused in Pennsylvania and
California. Our commitment
to developing resources
and operating in a manner
that respects and protects
the environment has
allowed Seneca to uniquely
minimize its environmental
footprint while maximizing
energy production and
shareholder value.
Seneca goes to great lengths
to limit its surface footprint.
Multi-well pad development
allows the company to
drill as many as 10 or more
wells in multiple shale
formations from the same
pad. Underneath the surface,
the lateral lengths of these
wells reach up to a mile-and-
a-half. In the WDA, Seneca
expects to begin development
of the Utica Shale, a formation
approximately 5,000 feet
below the Marcellus. We will
drill from existing pads and
reuse existing road, water,
and gathering infrastructure,
further limiting our land
disturbance. These efficiencies
maximize the natural gas
reserves the company is
able to access and lower our
development costs.
Always giving high priority to
environmental considerations
when designing new facilities
or modifying existing ones,
Seneca’s workplace culture
fosters innovation. A team,
led by Joshua Peters, pictured
here, pioneered the industry’s
onshore use of ultrasonic
leak detection technology
on its Marcellus well pads.
Now, with more than 100
detection units in place, we are
able to remotely identify the
presence of any leaks and, if
SUMMARY ANNUAL REPORT 2017
5
JOSHUA PETERS
Automation Measurement Manager,
Seneca Resources Corporation
GUIDING PRINCIPLES
11
years of
service
Josh and his team work to increase
safety and mitigate environmental
risks through the automation of
production operations on Seneca’s
Marcellus and Utica well pads.
In doing so, Josh helped Seneca
pioneer the shale industry’s onshore
use of ultrasonic leak detection
technology. A longtime resident
of Pine City, Pa., Josh is an avid
outdoorsman who enjoys hunting
and fishing with his family.
“This is our backyard; we all
live here. We want to ensure that
we protect the environment.”
6
NATIONAL FUEL GAS COMPANY
EMILY DIPPOLD
Advisor, Water Management,
Highland Field Services
2
years of
service
GUIDING PRINCIPLES
Emily develops processes and
implements technologies designed
to limit freshwater consumption and
recycle fluids produced by shale
natural gas producers in Appalachia.
She is responsible for tracking
and reporting all fluids handled by
Highland. Emily raises her family in
Elk County, Pa., where they enjoy
activities, such as boating, camping,
and youth sports.
100%
of Seneca’s produced
water in Appalachia was
recycled in 2017
necessary, immediately shut
down production for repair,
minimizing greenhouse
gas emissions.
Our focus on reducing
emissions not only protects
the environment, but
also reduces the risk for
lost revenues. Seneca has
voluntarily participated in the
Environmental Protection
Agency’s Natural Gas Star
Program, a program designed
to provide natural gas and oil
companies with a framework
for implementing methane-
reducing technologies and
practices and documenting
emission reduction activities.
Through this program,
we have committed to
implement a number of best
management practices for
reducing methane emissions
where feasible, often beyond
regulatory requirements.
As part of this stewardship,
in fiscal 2017, all of Seneca’s
Marcellus and Utica shale
development wells employed
green completion techniques,
avoiding the venting or flaring
of natural gas during a well’s
initial production.
We’ve also reduced our carbon
footprint in California. In
Kern County, Seneca operates
a 3.1-megawatt photovoltaic
solar power facility at its
North Midway Sunset field.
The electricity it produces is
consumed by Seneca, offsetting
more than 20 percent of the
total electric power costs at
that field.
Sustainable water
management is also a top
priority. Highland Field
Services, LLC, a subsidiary of
Seneca Resources, manages
the sourcing, handling, and
recycling of fluids associated
with its Appalachian
development program.
Highland has invested
more than $20 million in
water infrastructure in
north-central Pennsylvania,
including storage and
treatment facilities, on-pad
tanks and containment
vessels, and a network of
water distribution pipelines.
Doing so has not only yielded
tremendous environmental
benefits but has also driven
down the company’s well
costs to the lowest amongst its
peers in the basin, positioning
Seneca for long-term success.
In just its third year of
operation, Highland has
become the largest industry
beneficial reuse facility in the
state based on the volume of
fluids handled.
In fiscal 2017, Highland
recycled 100 percent of
Seneca’s produced fluids,
or 5.2 million barrels, plus
an additional 2.7 million
barrels of fluids generated
by and received from
third-party operators. As
a result, recycled water use
accounted for 75 percent
of total fluid consumption,
up from 62 percent in
fiscal 2016, for Seneca’s
Marcellus and Utica shale
well completions. Because
of our water handling processes, Seneca was able to avoid an
estimated 70,000 water truck trips in fiscal 2017, eliminating the
associated air emissions and reducing the impact on local roads
and public transportation.
Seneca follows a zero surface discharge policy, which requires
containment for any liquids or solids that may be considered
residual or hazardous waste, to protect surface and groundwater
resources throughout the life of a well. Seneca does not store
produced water in open ponds or pits under any circumstances.
We will continue to look for innovative ways to minimize
our impact on the environment while maximizing energy
production and shareholder value for years to come.
Midstream
National Fuel’s midstream operations are carried out by its
Pipeline & Storage segment, comprised of National Fuel Gas
Supply Corporation and Empire Pipeline, Inc., and the gathering
subsidiary National Fuel Gas Midstream Corporation. These
companies operate thousands of miles of pipelines responsibly,
providing consumers located throughout the North American
pipeline grid with access to clean and affordable natural
gas supplies.
These pipelines traverse public and private rights-of-way,
including in national forests and state parks, under streams
and rivers, through wetlands, fields, and farms, below hiking and
biking trails and golf courses, and under sidewalks, streets, and
yards. National Fuel understands it has an obligation to ensure
its pipeline construction and maintenance activities have
minimal impact on the environment and local communities.
GROWTH IN GATHERING SEGMENT THROUGHPUT
(Bcf)
139
140
94
195
162
2013
2014
2015
2016
2017
SUMMARY ANNUAL REPORT 2017
7
IAN VRANICH
Operations & Maintenance Manager,
Midstream Corporation
GUIDING PRINCIPLES
8
years of
service
Ian is a field engineer and facility
maintenance manager responsible
for overseeing daily operations
and construction of the Company’s
midstream gathering facilities. He
and his wife reside on their family
farm in Cogan Station, Pa. When
not at work, Ian enjoys hiking, fly
fishing, and volunteering. Ian is
proud to work for a local company
that is committed to providing a
safe, reliable, and affordable source
of energy while contributing to the
economic stability of his community.
$398 million
invested in gathering
infrastructure over
the last 5 years
8
NATIONAL FUEL GAS COMPANY
JENNIFER SCHALLER
Senior Engineer II,
Supply Corporation
8
years of
service
GUIDING PRINCIPLES
Jennifer has been a key player in
National Fuel’s interstate pipeline
expansion and modernization
efforts, particularly in the design,
construction, and operation of
new compressor stations. As the
automation and electrical lead
engineer, she has presented and
given site tours to support the
Company’s community outreach
efforts. Jennifer and her husband,
both natives of Buffalo, N.Y., enjoy
skiing and participating in local Irish
heritage activities with their family.
“We design, build, upgrade, and
operate all of our facilities to not
only meet but exceed standards
for safety and environmental
compliance. That’s who we are and
what this Company stands for.”
Since 2010, National Fuel has invested more than $1.4 billion
installing midstream infrastructure. Supply Corporation and
Empire Pipeline have been leveraging expansion projects as
an opportunity to upgrade their systems. Over the past five
years, the Pipeline & Storage segment has invested more than
$275 million on modernization efforts, including replacing
transmission pipelines and upgrading compression facilities to
employ best available technologies.
In 2018, Empire Pipeline will file an application with the Federal
Energy Regulatory Commission for its Empire North Project,
an expansion of the existing Empire Pipeline system. Empire
North, with a capital cost of $135 million, will add 205,000 Dth
per day, or enough to heat 912,000 Northeast households per
year. Anticipated to come online in November 2019, the project
includes the addition of both natural gas, and electric-driven
compressor stations in Pennsylvania and New York, along with
minor modifications to existing facilities in both states. Pipeline
development opportunities, such as this, contribute to the
economic stability of local communities — not only by providing
clean-burning, affordable energy but through jobs and an
increased tax base as well.
Supply Corporation will also be installing a pipeline to
transport natural gas to the $6-billion petrochemical plant
being constructed by Shell Chemical Appalachia LLC in Beaver
County, Pa. Up to 6,000 workers are expected to be employed
during the construction process. The plant will position the
region as a global leader in the production of plastic feedstock.
Every National Fuel pipeline and natural gas-related facility
is designed and built to meet or exceed a comprehensive set of
construction standards and regulatory requirements. Federal
and state pipeline safety codes require that pipeline operators
comply with extensive requirements for design, construction,
testing, inspection, and operation and maintenance of all
facilities. Because we take these responsibilities seriously and
value community perspective, we make transparent outreach
to stakeholders involved in or affected by pipeline construction
activities a top priority.
Downstream
National Fuel’s utility and energy marketing subsidiaries,
operated by National Fuel Gas Distribution Corporation and
National Fuel Resources, Inc., respectively, provide safe,
reliable, and affordable natural gas to residential, commercial,
and industrial customers in New York and Pennsylvania.
UTILITY GHG EMISSIONS FROM PHYSICAL PLANT*
(thousand metric tons of CO2e)
329
317
307
296
285
2012
2013
2014
2015
2016
*EPA Subpart W emissions reported on calendar year basis
With more than 14,000 miles
of pipelines and 740,000
customers, National Fuel’s
utility system is sizable and
complex. On most days, our
operations are unnoticed
by the vast majority of the
population, yet every day we
provide the energy source
that heats homes, cooks food,
manufactures products, and
generates electricity.
In the last 10 years, our
residential customers’ bills
have declined more than
40 percent. Access to low-cost
Appalachian shale supplies
has played an important role
in the renewed economic
growth in the Company’s
service territories.
The Utility recently
accelerated investments
in the modernization of its
pipeline network to enhance
system safety, increase
service reliability, and
lower our carbon footprint.
Over the last five years, we
have invested more than
$275 million in the safety of
our utility pipeline network,
replacing more than 650 miles
of mainlines. As a result, we’ve
seen a significant reduction
in the number of leaks and in
methane emissions.
Additionally, National
Fuel has been focused
on promoting energy
efficiency and conservation
efforts. We partner with
our regulators, industry
groups, and local businesses
to develop and administer
programs designed to reduce
customers’ energy usage. For
example, our Conservation
Incentive Program is a
residential energy usage
reduction program designed
to help New York households
SUMMARY ANNUAL REPORT 2017
9
TANYA ALEXANDER
General Manager of Environmental
Services, Distribution Corporation
GUIDING PRINCIPLES
29
years of
service
Tanya is responsible for developing,
implementing, and monitoring
environmental compliance
programs for Distribution and
Supply. She also works with
various agencies and associations
to advocate for reasonable and
cost effective regulations that
protect the environment and
support sustainability. Born and
raised in Buffalo, N.Y., Tanya is an
active member in her community
and church.
$554 million
invested in pipeline system safety
and environmental compliance
over the last 5 years
10
NATIONAL FUEL GAS COMPANY
MICHAEL PARKER
Assistant General Foreman,
Distribution Corporation
10
years of
service
lower their bills and reduce consumption through rebates,
weatherization, and education services. Since the program’s
inception 10 years ago, $31 million has been invested to
weatherize low-income customers’ homes in western New York.
From call center representatives to construction and customer
service personnel in the field, National Fuel employees are
dedicated to delivering natural gas to our customers in a safe
and efficient manner. In fiscal 2017, the Company achieved
a 92 and 94 percent residential customer satisfaction rate in
New York and Pennsylvania, respectively. We value the safety
of all of our customers, employees, and communities and work
diligently to establish a culture of safety that is embraced
throughout the entire organization.
Commitment to Safety
In recent years, National Fuel has implemented safety
programs and management practices to ensure that a culture
of safety is embraced throughout the organization. These
important initiatives include:
— Regular required training and certification in the field
and the office
— Construction site work rules, safety procedures, and
guidelines on personal protective equipment and attire
GUIDING PRINCIPLES
— Daily “tailgate” safety meetings at active construction
Mike is responsible for managing
pipeline construction and new
service installations for parts of
the Company’s New York utility
service territory. He recently led
the team that connected service
to a new manufacturing facility in
Buffalo, N.Y. Mike also gives back
to his hometown community as a
volunteer fireman and emergency
medical technician, giving him
unique insights that contribute to
the culture of safety at National Fuel.
“Safety really is number one
for us. Before we go out and do
our jobs, supervisors and field
employees share ideas on what
we can do to make the workplace
a little bit safer each day.”
sites that identify potential hazards
— “Stop work authority” given to all employees and
contractors in the event they observe an unsafe practice
— Table-top safety exercises
— Safety drills and emergency response preparedness with
local first responders
— Cross-functional quality assurance audits
— Contractor screening and reporting on environmental,
health, and safety performance
— Vehicle safety programs, including the use and review of
driver cameras
National Fuel and its 4,000-plus employees and retirees are
deeply rooted in the communities where we operate — the same
communities where they choose to live, work, and raise their
families. Undoubtedly, National Fuel is committed to being the
hometown energy team for years to come.
Directors
From left to right: Thomas E. Skains, Joseph N. Jaggers, Jeffrey W. Shaw,
Rebecca Ranich, Craig G. Matthews, David F. Smith, Ronald J. Tanski,
Philip C. Ackerman, Stephen E. Ewing, David C. Carroll
Officers
From left to right: Karen M. Camiolo, Carl M. Carlotti, Paula M. Ciprich,
David P. Bauer, John R. Pustulka, Ronald C. Kraemer, Ann M. Wegrzyn,
John P. McGinnis, Donna L. DeCarolis
SUMMARY ANNUAL REPORT 2017
11
Philip C. Ackerman
Former Chairman of the
Board and Chief Executive
Officer of the Company
David C. Carroll
President and Chief
Executive Officer of Gas
Technology Institute
Stephen E. Ewing
Former Vice Chairman
of DTE Energy Company
Joseph N. Jaggers
Chairman and Chief
Executive Officer of
Jagged Peak Energy Inc.
Craig G. Matthews
Former Director and
Chief Executive Officer
of NUI Corporation
Rebecca Ranich
Former Director at
Deloitte Consulting, LLP
and Director of Questar
Corporation
Jeffrey W. Shaw
Former Director and
Chief Executive Officer of
Southwest Gas Corporation
Thomas E. Skains
Former Chairman and
Chief Executive Officer
of Piedmont Natural
Gas Company, Inc.
David F. Smith
Chairman of the Board and
Former Chief Executive
Officer of the Company
Ronald J. Tanski
President and Chief
Executive Officer of
the Company
Ronald J. Tanski
President and Chief
Executive Officer
Donna L. DeCarolis
Vice President,
Business Development
John R. Pustulka
Chief Operating Officer
Ann M. Wegrzyn
Chief Information Officer
Paula M. Ciprich
Senior Vice President,
General Counsel and
Secretary
Carl M. Carlotti
President, National
Fuel Gas Distribution
Corporation
David P. Bauer
Treasurer and Principal
Financial Officer
Ronald C. Kraemer
President, Empire
Pipeline, Inc.
Karen M. Camiolo
Controller and Principal
Accounting Officer
John P. McGinnis
President, Seneca
Resources Corporation
12
NATIONAL FUEL GAS COMPANY
Subsidiary Officers
Upstream
SENECA RESOURCES
CORPORATION
John P. McGinnis
President
Steven J. Conley
Senior Vice President
Justin I. Loweth
Senior Vice President
Douglas Kepler
Senior Vice President
David P. Bauer
Treasurer
Cindy D. Wilkinson
Controller and
Secretary
Bradley D. Elliott
Vice President
Benjamin F. Elmore
Vice President and
General Counsel
Jeffrey J. Formica
Vice President
Dale A. Rowekamp
Vice President
Kevin M. Ryan
Vice President
Steven Wagner
Vice President
Midstream
NATIONAL FUEL GAS
SUPPLY CORPORATION
David P. Bauer
President and Treasurer
Bruce D. Heine
Senior Vice President
Ronald C. Kraemer
Senior Vice President
Sarah J. Mugel
Vice President, General
Counsel and Secretary
Karen M. Camiolo
Controller
Ramon P. Harris
Vice President
Jeffrey J. Kittka
Vice President
Steven Wagner
Vice President
Lee E. Hartz
Assistant Vice President
Sarah J. Mugel
Secretary
Michael D. Colpoys
Vice President
Elena G. Mendel
Assistant Controller
Michael P. Kasprzak
Vice President
EMPIRE PIPELINE, INC.
Steven Wagner
Vice President
Ronald C. Kraemer
President
David P. Bauer
Treasurer
Karen M. Camiolo
Controller
Sarah J. Mugel
Secretary
Steven Wagner
Vice President
Elena G. Mendel
Assistant Controller
NATIONAL FUEL
GAS MIDSTREAM
CORPORATION
David P. Bauer
Treasurer
Karen M. Camiolo
Controller
Downstream
NATIONAL FUEL
GAS DISTRIBUTION
CORPORATION
Carl M. Carlotti
President
Jay W. Lesch
Senior Vice President
Paula M. Ciprich
Secretary
David P. Bauer
Treasurer
Karen M. Camiolo
Vice President and
Controller
Michael W. Reville
Vice President and
General Counsel
Joseph N. Del Vecchio
Vice President and
Chief Regulatory
Counsel
Steven Wagner
Vice President
Kevin D. House
Assistant Vice President
Elena G. Mendel
Assistant Controller
John J. Polka
Assistant Vice President
James A. Rizzo
Assistant Vice President
Craig K. Swiech
Assistant Vice President
NATIONAL FUEL
RESOURCES, INC.
Jeffrey F. Hart
Vice President
Steven Wagner
Vice President
Investor Information
COMMON STOCK TRANSFER AGENT AND REGISTRAR
INVESTOR RELATIONS
Wells Fargo Shareowner Services
P.O. Box 64856
St. Paul, MN 55164-0856
Telephone: 800-648-8166
Website: http://www.shareowneronline.com
Email: stocktransfer@wellsfargo.com
Change of address notices and inquiries about dividends
should be sent to the Transfer Agent at the address
listed above.
NATIONAL FUEL DIRECT STOCK PURCHASE AND
DIVIDEND REINVESTMENT PLAN
National Fuel offers a simple, cost-effective method for
purchasing shares of National Fuel stock. A prospectus,
which includes details of the plan, can be obtained by
calling, writing, or emailing the administrator of the
plan, Wells Fargo Shareowner Services, at the address
listed above.
Investors or financial analysts desiring information
should contact:
Brian M. Welsch
Director of Investor Relations
Telephone: 716-857-7875
Email: WelschB@natfuel.com
National Fuel Gas Company
6363 Main Street
Williamsville, NY 14221
ANNUAL MEETING
The Annual Meeting of Stockholders will be held at 9:30 a.m.
(local time) on Thursday, March 8, 2018, at The Ritz Carlton
Golf Resort at 2600 Tiburón Drive, Naples, Florida, 34109.
Stockholders of record as of the close of business on
January 8, 2018, will receive a formal notice of the meeting,
proxy statement and proxy.
Financial and Operating Highlights
National Fuel Gas Company Year Ended September 30
2017
2016
2015
2014
2013
Operating Revenues (Thousands)
$ 1,579,881
$ 1,452,416
$ 1,760,913
$ 2,113,081
$ 1,829,551
Net Income (Loss) Available for Common Stock (Thousands)
283,482
(290,958)(1) (379,427)(2)
299,413(3)
260,001(4)
Return On Average Common Equity(5)
17.55%
(16.4%)
(17.1%)
13.0%
12.5%
Per Common Share
Basic Earnings (Loss)
Diluted Earnings (Loss)
Dividends Paid
Dividend Rate at Year-End
Book Value at Year-End
$
$
$
$
$
3.32
3.30
1.63
1.66
19.92
$
$
$
$
$
(3.43)
(3.43)
1.59
1.62
17.94
$
$
$
$
$
(4.50)
(4.50)
1.55
1.58
23.94
$
$
$
$
$
3.57
3.52
1.51
1.54
28.64
$
$
$
$
$
3.11
3.08
1.47
1.50
26.23
Common Shares Outstanding at Year-End
85,543,125
85,118,886
84,594,383
84,157,220
83,661,969
Weighted Average Common Shares Outstanding
Basic
Diluted
85,364,929
84,847,993
84,387,755
83,929,989
83,518,857
86,021,386
84,847,993
84,387,755
84,952,347
84,341,220
Average Common Shares Traded Daily
477,190
518,574
482,631
451,731
385,586
Common Stock Price
High
Low
Close
Net Cash Provided by Operating Activities (Thousands)
$
$
$
$
61.25
50.61
56.61
684,251
$
$
$
$
59.62
37.03
54.07
588,979
$
$
$
$
72.21
48.61
49.98
853,580
$
$
$
$
78.79
65.23
69.99
909,390
$
$
$
$
69.27
48.51
68.76
738,572
Total Assets (Thousands)
$ 6,103,320
$ 5,636,387
$ 6,564,939
$ 6,687,717
$ 6,125,618
Capital Expenditures per Statements of Cash Flows (Thousands) $
450,335
$
581,576
$ 1,018,179
$
914,417
$
703,461
Volume Information
Production
Gas – MMcf
Oil – Mbbl
Total – MMcfe
Proved Reserves
Gas – MMcf
Oil – Mbbl
Total – MMcfe
Pipeline & Storage Throughput – MMcf
Gas Transportation
Gathering Volume – MMcf
Gathered Volume
Utility Throughput – MMcf
Gas Sales
Gas Transportation
Energy Marketing Volume – MMcf
Gas
Average Number of Utility Retail Customers
Average Number of Utility Transportation Customers
Number of Employees at September 30
157,088
2,740
173,528
143,547
139,563
142,307
103,693
2,923
3,034
3,036
2,831
161,085
157,767
160,523
120,679
1,973,120
1,674,575
2,142,128
1,682,884
1,299,515
30,207
29,009
33,722
38,477
41,598
2,154,362
1,848,629
2,344,460
1,913,746
1,549,103
785,187
764,423
750,080
735,995
579,802
194,921
161,955
139,629
138,726
93,449
61,955
71,040
38,901
608,489
135,106
2,100
58,705
70,847
39,849
602,284
139,951
2,080
72,434
78,749
46,752
591,098
148,877
2,125
73,892
80,949
52,694
584,415
153,407
2,010
67,903
69,149
46,875
587,760
147,431
1,912
(1) Includes impairment of oil and gas producing properties of ($550.0) million and includes joint development agreement professional fees of $4.6 million.
(2) Includes impairment of oil and gas producing properties of ($650.2) million and includes reversal of stock-based compensation expense of $4.7 million.
(3) Includes a $3.6 million gain on life insurance policies.
(4) Includes a $4.9 million refund provision related to the Utility segment’s New York rate proceeding.
(5) Calculated using average Total Comprehensive Shareholder Equity.
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NATIONAL FUEL GAS COMPANY
6363 Main Street, Williamsville, New York 14221
716-857-7000 www.nationalfuelgas.com
NYSE: NFG
UNITS OF MEASURE
Bcf
Billion cubic feet (of natural gas)
MMcf
Million cubic feet (of natural gas)
Bcfe
Bcf equivalent (of natural gas and crude oil)
MMcfe
MMcf equivalent (of natural gas and crude oil)
Dth
Dekatherm (approx. 1 Mcf of natural gas)
Tcf
Trillion cubic feet (of natural gas)
Mbbl
Thousands of barrels (of crude oil)
Tcfe
Tcf equivalent (of natural gas and crude oil)
This Summary Annual Report contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements should be read with the cautionary statements and important factors included in the Company’s Form 10-K
at Item 7, MD&A, under the heading “Safe Harbor for Forward-Looking Statements,” and with the “Risk Factors” included in the Company’s
Form 10-K at Item 1A. Forward-looking statements are all statements other than statements of historical fact, including, without limitation,
statements regarding future prospects, plans, objectives, goals, projections, estimates of oil and gas quantities, strategies, future events or
performance and underlying assumptions, capital structure, anticipated capital expenditures, completion of construction and other projects,
projections for pension and other post-retirement benefit obligations, impacts of the adoption of new accounting rules, and possible outcomes
of litigation or regulatory proceedings, as well as 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.
Forward-looking statements include estimates of oil and gas quantities. Proved oil and gas reserves are those quantities of oil and gas
which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible under
existing economic conditions, operating methods and government regulations. Other estimates of oil and gas quantities, including estimates
of probable reserves, possible reserves, and resource potential, are by their nature more speculative than estimates of proved reserves.
Accordingly, estimates other than proved reserves are subject to substantially greater risk of being actually realized.
This Summary Annual Report and the statements contained herein are submitted for the general information of stockholders and employees of
the Company and are not intended to induce any sale or purchase of securities or to be used in connection therewith. For up-to-date investor
information, please visit the Investor Relations section of National Fuel Gas Company’s corporate website at http://www.nationalfuelgas.com.
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