-
National Fuel Gas Supply Corporation
Jeffrey R. SchaugerGeneral Manager
Interstate Marketing Department
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Safe Harbor for Safe Harbor for Safe Harbor for Safe Harbor for Forward Looking StatementsForward Looking StatementsForward Looking StatementsForward Looking Statements
This presentation may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including statementsregarding future prospects, plans, performance and capital structure, anticipated capital expenditures and completion of construction projects, as well asstatements 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 involve risks and uncertainties, which could cause actual resultsor outcomes to differ materially from those expressed in the forward-looking statements. The Companys expectations, beliefs and projections containedherein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs orprojections 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 results referred to in the forward-looking statements: changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents, anddownturns in economic activity including national or regional recessions; changes in demographic patterns and weather conditions, including theoccurrence 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 theaccounting treatment of derivative financial instruments or the valuation of the Companys natural gas and oil reserves; uncertainty of oil and gas reserveestimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including shortages, delays orunavailability of equipment and services required in drilling operations; significant changes from expectations in the Companys actual production levelsunavailability of equipment and services required in drilling operations; significant changes from expectations in the Companys actual production levelsfor natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various typesof oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws andregulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations;governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among otherthings, allowed rates of return, rate design and retained gas), affiliate relationships, industry structure, franchise renewal, and environmental/safetyrequirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actualcapital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitabilityof pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; occurrences affectingthe Companys ability to obtain funds from operations, from borrowings under our credit lines or other credit facilities or from issuances of other short-term notes or debt or equity securities to finance needed capital expenditures and other investments, including any downgrades in the Companys creditratings; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequentlyacquired business or properties; impairments under the SECs full cost ceiling test for natural gas and oil reserves; changes in the market price of timberand 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 inrates of inflation or interest; significant changes in the Companys relationship with its employees or contractors and the potential adverse effects if labordisputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost andeffects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; changes in actuarialassumptions and the return on assets with respect to the Companys retirement plan and post-retirement benefit plans; increasing health care costs andthe resulting effect on health insurance premiums and on the obligation to provide post-retirement benefits; or increasing costs of insurance, changes incoverage and the ability to obtain insurance.
For a discussion of these risks and other factors that could cause actual results to differ materially from results referred to in the forward-lookingstatements, see Risk Factors in the Companys Form 10-K for the fiscal year ended September 30, 2010 and the Companys Form 10-Q for the quarterended March 31, 2011. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the datehereof or to reflect the occurrence of unanticipated events.
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LDC: ~725,000 Customers LDC: ~725,000 Customers LDC: ~725,000 Customers LDC: ~725,000 Customers Served throughout Western Served throughout Western Served throughout Western Served throughout Western NY and Northwestern PANY and Northwestern PANY and Northwestern PANY and Northwestern PA
PL&S: ~3,000 miles of pipe, PL&S: ~3,000 miles of pipe, PL&S: ~3,000 miles of pipe, PL&S: ~3,000 miles of pipe, 60,000+ hp60,000+ hp60,000+ hp60,000+ hp
Own/Operate 27 Fields; Own/Operate 27 Fields; Own/Operate 27 Fields; Own/Operate 27 Fields; CoCoCoCo----Own/Operate 4 FieldsOwn/Operate 4 FieldsOwn/Operate 4 FieldsOwn/Operate 4 Fields
Storage Capacity ~78 Storage Capacity ~78 Storage Capacity ~78 Storage Capacity ~78 bcfbcfbcfbcf
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Niagara
CANADACANADA
Lake OntarioLake OntarioLake Ontario
Lake
Erie
LakeLake
ErieErie
Ellisburg
NYNY
PAPA
Chippawa
CorningIndependence
Millennium
Tuscarora
Storage
TCPL
Niagara, Chippawa
Empire PipelineN
ati
on
al
Fue
l G
as
Pip
eli
ne
& S
tora
ge
Sy
ste
m
Empire Connector
Corning
Empire, Millennium
Ellisburg
PA
PA
OH
OH
Leidy: DTI,
Transco, TETCO
National Fuel Gas
NFGSC System Storages
NFGSC System Pipelines
Empire Pipeline
Interconnects
Leidy
Na
tio
na
l Fu
el
Ga
s P
ipe
lin
e &
Sto
rag
e S
yst
em
Ellisburg Interconnects:
TGP, DTI
Bristoria
TETCO M2
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PL & S FootprintPL & S FootprintPL & S FootprintPL & S Footprint Unlocks OpportunityUnlocks OpportunityUnlocks OpportunityUnlocks Opportunity
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NFGSC NFGSC NFGSC NFGSC System Increased System Increased System Increased System Increased Producer ActivityProducer ActivityProducer ActivityProducer Activity
104
161
100
120
140
160
180
IC Requests
55% increase in IC requests from 2009 to 2010
1 2 311 31
79
104
0
20
40
60
80
100
2003 2004 2005 2006 2007 2008 2009 2010
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Positioned to Move Growing Marcellus ProductionPositioned to Move Growing Marcellus ProductionPositioned to Move Growing Marcellus ProductionPositioned to Move Growing Marcellus Production
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6
8
10
12
Pro
du
cers
Flo
win
g M
arc
ell
us
Pro
du
ctio
n
Marcellus Producers Transporting Gas on National Fuels System
9
Marcellus Producers Increase Marcellus Producers Increase Marcellus Producers Increase Marcellus Producers Increase Utilization of NFGSCUtilization of NFGSCUtilization of NFGSCUtilization of NFGSC
0
2
4
6
Pro
du
cers
Flo
win
g M
arc
ell
us
Pro
du
ctio
n
2
-
3.00
4.00
5.00
Lo
cal P
rod
uct
ion
into
NF
GS
C (
Bcf
per
Mo
nth
)
Marcellus
Upper Devonian
Evolving OnEvolving OnEvolving OnEvolving On----System Production MixSystem Production MixSystem Production MixSystem Production Mix
0.00
1.00
2.00
Lo
cal P
rod
uct
ion
into
NF
GS
C (
-
Local Production Receipts in NFGSC Appalachian Zones 1 & 2
120,000.00
140,000.00
160,000.00
60,000.00
80,000.00
100,000.00
Jan
-07
Mar
-07
May
-07
Jul-
07
Sep
-07
No
v-07
Jan
-08
Mar
-08
May
-08
Jul-
08
Sep
-08
No
v-08
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-09
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11
Avg. dth per day 12 Month Rolling Avg. (dth)
-
Niagara Volume (Receipts & Displacement)
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
Avg. dth/d
-
50,000.00
100,000.00
150,000.00
200,000.00
Jan
-07
Mar
-07
May
-07
Jul-
07
Sep
-07
No
v-07
Jan
-08
Mar
-08
May
-08
Jul-
08
Sep
-08
No
v-08
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-09
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11
12 Month Rolling Average (dth/d)
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Increased Receipts from TGP 300 Line
150,000.00
200,000.00
250,000.00
Rose Lake Receipts/Deliveries
(100,000.00)
(50,000.00)
-
50,000.00
100,000.00
May
-06
Jul-
06
Sep
-06
No
v-06
Jan
-07
Mar
-07
May
-07
Jul-
07
Sep
-07
No
v-07
Jan
-08
Mar
-08
May
-08
Jul-
08
Sep
-08
No
v-08
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-09
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11
DT
H/D
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PrePrePrePre----MarcellusMarcellusMarcellusMarcellus
LEIDYLEIDYLEIDYLEIDY
New YorkNew YorkNew YorkNew York
NIAGARANIAGARANIAGARANIAGARA
ONTARIOONTARIOONTARIOONTARIO
PennsylvaniaPennsylvaniaPennsylvaniaPennsylvania
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PostPostPostPost----MarcellusMarcellusMarcellusMarcellus
LEIDYLEIDYLEIDYLEIDY
New YorkNew YorkNew YorkNew York
NIAGARANIAGARANIAGARANIAGARA
ONTARIOONTARIOONTARIOONTARIO
LEIDYLEIDYLEIDYLEIDY
PennsylvaniaPennsylvaniaPennsylvaniaPennsylvania
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PIPELINE & STORAGE
EXPANSION INITIATIVES
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PIPELINE & STORAGE
EXPANSION INITIATIVES
LINE N
EXPANSION
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NFGSC NFGSC NFGSC NFGSC ---- Line N 2011 Expansion
New 4,740 Hp Compressor Station in Washington County
2 Miles of 20 Line N Replacement north of I-70 (plus 17 mile replacement)(plus 17 mile replacement)
Capacity:160,000 Dth/d
Delivery Point of TETCO at Ryerson (Holbrook)
ISD: Late September 2011 Capex ~ $20 million
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PIPELINE & STORAGE
EXPANSION INITIATIVES
LINE N 2012
EXPANSION
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NFGSC NFGSC NFGSC NFGSC ---- Line N 2012 Expansion
20,620 Hp expansion at Buffalo Station
4.85 Miles of 24 Line N Replacement
Capacity of 150,000 Dth/d; Capacity of 150,000 Dth/d; subscribed and moving forward
7(c) Filed June 2011
ISD : November 2012 Capex ~ $39 million
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PIPELINE & STORAGE
EXPANSION INITIATIVES
NORTHERN ACCESS
EXPANSION
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Compression at Ellisburg and East Aurora (~14,210 Hp)
Modification to Lockport & Concord Compressor Stations and Niagara Measurement
C
NFGSC NFGSC NFGSC NFGSC ---- Northern Access Expansion
and Niagara Measurement
Capacity: 320,000 Dth/d; subscribed by Statoil
Filed 7(c) March 2011
ISD: November 2012 Capex ~ $62 million
C
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Northern Access Expansion
PIPELINE & STORAGE
EXPANSION INITIATIVES
MERCER
COMPRESSIONCapacity 320,000 Dth/d
Facilities9,470 Hp Ellisburg
4,740 Hp East Aurora
Modifications @ Concord and Lockport
Cost $61.5 MM
Anticipated Revenue $13.6 MM
Market (Dth/d) PA Statoil 320,000, 20 yrs
FERC Filing March 2011
Anticipated In-Service November 2012
COMPRESSION
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Local Production Receipts in NFGSC Appalachian Zones 1 & 2
120,000.00
140,000.00
160,000.00
60,000.00
80,000.00
100,000.00
Jan
-07
Mar
-07
May
-07
Jul-
07
Sep
-07
No
v-07
Jan
-08
Mar
-08
May
-08
Jul-
08
Sep
-08
No
v-08
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-09
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11
Avg. dth per day 12 Month Rolling Avg. (dth)
-
Northern Access Expansion
PIPELINE & STORAGE
EXPANSION INITIATIVES
Capacity 320,000 Dth/d
Facilities9,470 Hp Ellisburg
4,740 Hp East Aurora
Modifications @ Concord and Lockport
Cost $61.5 MM
Anticipated Revenue $13.6 MM
Market (Dth/d) PA Statoil 320,000, 20 yrs
FERC Filing March 2011
Anticipated In-Service November 2012
WEST TO EAST
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W2E Unlocking Acreage in Key PA Counties
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National Fuel Gas Supply Corporation National Fuel Gas Supply Corporation National Fuel Gas Supply Corporation National Fuel Gas Supply Corporation
West to East Expansion Highlights
82 miles of 24, portions paralleling existing line FM-100
25,000 Hp at two new compressor stations
Capacity: 425,000+ Dth/d;
NEPA Pre-Filing Process commenced March 2010
7c Filing expected late 2012/early 2013
Engineering and environmental studies well underway
Expected in-service late 2013/2014 with a cost of $290MM
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Project NameCapacity (Dth/D)
Est.CapEx
In-Service
DateMarket Status
Lamont Compressor Station
40,000 $6 MM 6/15/10Fully
SubscribedCompleted Flowing into TGP 300 Line
Lamont Phase II Project 50,000 $7.6 MM 07/1/11Fully
Subscribed
First 10,000 Dth/d in-service. Remaining 40,000 Dth/d in-service 10/2011.
Line N Expansion 160,000 $20 MM ~ 09/2011Fully
SubscribedConstruction began February 2011
Tioga County Extension 350,000 $49 MM ~ 11/2011Fully
Construction began July 2011
Expansion Initiatives
Tioga County Extension 350,000 $49 MM ~ 11/2011Subscribed
Construction began July 2011
Northern Access Expansion
320,000 $62 MM ~11/2012Fully
SubscribedCertificate filed in March 2011
Line N 2012 Expansion 150,000 $36 MM ~ 11/2012Fully
SubscribedCertificate filed in July 2011
West to East ~425,000 $290 MM 201429%
SubscribedMarketing continues with producers invarious stages of exploratory drilling
Central Tioga County Extension
260,000 $135 MM 2014Open
Season Closed
Evaluating market interest and facility design
Total Firm Capacity ~ 1,755,000 Dth/D
Capital Investment ~ $606 MM
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Marcellus Driven Expansion Projects
Lamont Phase II Project (July 2011)
Line N Expansion (October 2011)
Tioga County Extension (November 2011)
Line N 2012 Expansion (November 2012)
50,000 Dth/d
160,000 Dth/d
350,000 Dth/d
150,000 Dth/d
Northern Access Expansion (November 2012)
West to East (2014)
Central Tioga County Ext (2014)
FY11 FY12 FY14FY13
Total Firm Capacity: ~1,715,000 Dth/DCapital Investment: ~$600 Million
320,000 Dth/d
~425,000 Dth/d
260,000 Dth/d
-
1,000,000
1,200,000
1,400,000
1,600,000
MC
FD
West to East
Central Tioga County Extension
Estimated Marcellus Volumes from System Expansions (80% Load Factor)
Actual Transported Marcellus Production Volumes
Marcellus Volumes from System ExpansionsMarcellus Volumes from System Expansions
0
200,000
400,000
600,000
800,000
MC
FD
Line N 2012 Expansion &
Northern Access
Tioga County
Line N 2011
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Thank you
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