content: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549
                                   FORM 10-Q
  
       (Mark One)
         X - QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934
  
       For the quarterly period ended June 30, 1999
                                      OR
  
            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            SECURITIES EXCHANGE ACT OF 1934
  
       For the transition period from ____________ to____________
  
       Commission File Number   1-8353
  
  
                                       NUI
            (Exact name of registrant as specified in its charter)
  
  
  
                 New Jersey                      22-1869941
          (State of incorporation)    (IRS employer identification no.)
  
  
         550 Route 202-206, PO Box 760, Bedminster, New Jersey 07921-0760
         (Address of principal executive offices, including zip code)
  
  
                                (908) 781-0500
             (Registrant's telephone number, including area code)
  
  
       Indicate  by check mark  whether the registrant:  (1) has  filed
       all  reports required to be filed by Section 13 or 15(d)  of the
       Securities  Exchange Act of 1934 during the preceding  12 months
       (or for such shorter period that the registrant  was required to
       file  such reports),  and (2)  has been subject  to such  filing
       requirements for the past 90 days.       Yes - X     No
  
  
                     APPLICABLE ONLY TO CORPORATE ISSUERS:
  
       The number of shares outstanding of each of the registrant's
       classes of common stock, as of July 31, 1999: Common Stock, No
       Par Value: 12,748,967 shares outstanding.
  
  <TABLE>
  
                          NUI Corporation and Subsidiaries
                    Consolidated Statement of Income (Unaudited)
                  (Dollars in thousands, except per share amounts)
  
  <CAPTION>
                                               Three Months             Nine Months
                                                   Ended                   Ended
                                                  June 30                 June 30
                                              1999        1998        1999       1998
                                              ----------------        ---------------
      <S>                                   <C>         <C>         <C>         <C>
       Operating Margins
          Operating revenues                $160,678    $169,004    $644,838    $663,740
          Less - Purchased gas and fuel      117,118     130,430     472,047     497,974
                 Energy taxes                  2,664       2,551      12,187      17,075
                                             -------     -------     -------     -------
                                              40,896      36,023     160,604     148,691
                                             -------     -------     -------     -------
       Other Operating Expenses
          Operations and maintenance          25,271      23,320      76,397      71,867
          Depreciation and amortization        6,919       6,326      20,703      19,401
          Restructuring and other non-
            recurring items                   (1,840)          -      (3,954)          -
          Other taxes                          2,211       2,568       6,897       7,515
          Income taxes                         1,760        (200)     19,014      14,318
                                             -------     -------     -------     -------
                                              34,321      32,014     119,057     113,101
                                             -------     -------     -------     -------
       Operating Income                        6,575       4,009      41,547      35,590
  
       Other Income and Expense,  Net
       Equity in earnings of TIC
       Enterprises, LLC, net                     460          42         716         150
       Other                                      12          72         121         873
       Income taxes                             (165)        (40)       (293)       (358)
                                             -------     -------     -------     -------
                                                 307          74         544         665
                                             -------     -------     -------     -------
       Interest Expense                        4,458       4,515      14,987      14,203
                                             -------     -------     -------     -------
       Net Income (Loss)                      $2,424       $(432)    $27,104     $22,052
                                             =======     =======     =======     =======
       Net Income (Loss) Per Share of
          Common Stock                         $0.19      $(0.03)      $2.13       $1.76
                                             =======     =======     =======     =======
       Dividends Per Share of Common
          Stock                               $0.245      $0.245      $0.735      $0.735
                                             =======     =======     =======     =======
       Weighted Average Number of Shares
          of Common Stock Outstanding     12,733,055  12,654,101  12,708,265  12,556,940
                                          ==========  ==========  ==========  ==========
  </TABLE>
               See the notes to the consolidated financial statements
  
  
  
                          NUI Corporation and Subsidiaries
                             Consolidated Balance Sheet
                               (Dollars in thousands)
  
                                              June 30,    September 30,
                                                1999           1998
                                             (Unaudited)        (*)
       ASSETS
       Utility Plant
          Utility plant, at original cost      $765,842      $737,323
          Accumulated depreciation and
             amortization                      (254,094)     (234,484)
          Unamortized plant acquisition
            adjustments                          30,613        30,904
                                               --------      --------
                                                542,361       533,743
                                               --------      --------
       Funds for Construction Held by
        Trustee                                  41,588        12,254
                                               --------      --------
       Investment in TIC Enterprises, LLC,
        net                                      24,397        23,874
                                               --------      --------
       Other Investments                          1,324         1,687
                                               --------      --------
       Current Assets
        Cash and cash equivalents                 2,356           929
        Accounts receivable (less
        allowance for doubtful accounts
        of $2,278 and $1,714, respectively)      76,900        62,673
        Fuel inventories, at average cost        15,471        34,937
        Unrecovered purchased gas costs               -         8,061
        Prepayments and other                    56,454        37,790
                                               --------      --------
                                                151,181       144,390
                                               --------      --------
       Other Assets
          Regulatory assets                      49,500        50,475
          Deferred charges                       10,716        10,424
                                               --------      --------
                                                 60,216        60,899
                                               --------      --------
                                               $821,067      $776,847
                                               ========      ========
       CAPITALIZATION AND LIABILITIES
       Capitalization
          Common shareholders' equity          $242,154      $222,992
          Preferred stock                             -             -
          Long-term debt                        268,902       229,098
                                               --------      --------
                                                511,056       452,090
                                               --------      --------
       Capital Lease Obligations                  1,788         8,566
                                               --------      --------
       Current Liabilities
          Notes payable to banks                 42,055        87,630
          Current portion of capital lease
           obligations                            7,664         1,810
          Accounts payable, customer
           deposits and accrued liabilities      88,034        87,158
          Overrecovered purchased gas costs      17,795             -
          Federal income and other taxes         14,465         5,635
                                               --------      --------
                                                170,013       182,233
                                               --------      --------
       Deferred Credits and Other
       Liabilities
          Deferred Federal income taxes          66,336        62,519
          Unamortized investment tax
           credits                                5,365         5,710
          Environmental remediation reserve      33,981        33,981
          Regulatory and other liabilities       32,528        31,748
                                               --------      --------
                                                138,210       133,958
                                               --------      --------
                                               $821,067      $776,847
                                               ========      ========
  
                     *Derived from audited financial statements
               See the notes to the consolidated financial statements
  
  
  
                          NUI Corporation and Subsidiaries
                  Consolidated Statement of Cash Flows (Unaudited)
                               (Dollars in thousands)
  
  
                                                         Nine Months
                                                            Ended
                                                          June 30,
                                                       1999        1998
  
  
       Operating Activities
       Net income                                     $27,104     $22,052
       Adjustments to reconcile net income to net
       cash provided by operating activities:
          Depreciation and amortization                21,298      20,154
          Deferred Federal income taxes                 3,817       1,911
          Non-cash portion of restructuring and
           other non-recurring items                   (4,726)          -
          Amortization of deferred investment tax
           credits                                      (345)        (336)
          Other                                         1,282         480
          Effect of changes in:
            Accounts receivable, net                  (14,227)     (9,216)
            Fuel inventories                           19,466       8,831
            Accounts payable, deposits and
             accruals                                     876      (8,082)
            Over (under) recovered purchased gas
             costs                                     25,856       4,935
            Other                                      (4,285)    (10,472)
                                                    ---------    --------
          Net cash provided by operating
           activities                                  76,116      30,257
                                                    ---------    --------
       Financing Activities
       Proceeds from sales of common stock, net of
        treasury stock purchased                          332       3,782
       Dividends to shareholders                       (9,330)     (9,252)
       Proceeds from issuance of long-term debt        39,804           -
       Funds for construction held by trustee, net    (29,515)     13,115
       Repayments of long-term debt                        -      (54,600)
       Principal payments under capital lease
        obligations                                    (1,238)     (1,339)
       Net short-term (repayments) borrowings         (45,575)      5,038
                                                    ---------    --------
         Net cash used in financing activities       (45,522)     (43,256)
                                                    ---------    --------
       Investing Activities
       Cash expenditures for utility plant           (25,831)     (43,408)
       Other                                         (3,336)       (1,979)
                                                    ---------    --------
         Net cash used in investing activities       (29,167)     (45,387)
                                                    ---------    --------
       Net increase (decrease) in cash and cash
        equivalents                                   $1,427     $(58,386)
                                                    ========     ========
       Cash and Cash Equivalents
       At beginning of period                        $   929      $58,793
       At end of period                              $ 2,356      $   407
  
       Supplemental Disclosures of Cash Flows
       Income taxes paid, net                        $ 4,109      $ 5,262
       Interest paid                                 $16,356      $17,433
  
  
  
               See the notes to the consolidated financial statements
  
  
                          NUI Corporation and Subsidiaries
                   Notes to the Consolidated Financial Statements
  
  
  
       1.  Basis of Presentation
  
       The consolidated financial statements include all operating divisions
       and subsidiaries of NUI Corporation (collectively referred to as the
       Company). The Company is a multi-state energy sales, services and
       distribution company. Its utility operations distribute natural gas
       and related services in six states along the eastern seaboard and
       comprise Elizabethtown Gas (New Jersey), City Gas Company of Florida,
       North Carolina Gas, Elkton Gas (Maryland), Valley Cities Gas
       (Pennsylvania) and Waverly Gas (New York). The Company also provides
       retail gas sales and related services through its NUI Energy, Inc.
       subsidiary; wholesale energy brokerage and related services through
       its NUI Energy Brokers, Inc. subsidiary; energy project development
       and consulting through its NUI Energy Solutions, Inc. subsidiary;
       environmental project development services through its NUI
       Environmental Group, Inc. subsidiary; customer account management and
       field operations systems and services through its Utility Business
       Services, Inc. subsidiary; and sales and marketing outsourcing through
       its 49% equity interest in TIC Enterprises, LLC (TIC).  All
       intercompany accounts and transactions have been eliminated in
       consolidation.
  
       The consolidated financial statements contained herein have been
       prepared without audit in accordance with the rules and regulations of
       the Securities and Exchange Commission and reflect all adjustments
       which, in the opinion of management, are necessary for a fair
       statement of the results for interim periods. All adjustments made
       were of a normal recurring nature. The preparation of financial
       statements in accordance with generally accepted accounting principles
       requires management to make estimates and assumptions that affect the
       reported amounts of assets and liabilities, the disclosure of
       contingent assets and liabilities at the date of the financial
       statements and the reported amounts of revenues and expenses during
       the reporting period. Actual results could differ from those
       estimates. The consolidated financial statements should be read in
       conjunction with the consolidated financial statements and the notes
       thereto that are included in the Company's Annual Report on Form 10-K
       for the fiscal year ended September 30, 1998.  Certain
       reclassifications have been made to the prior year financial
       statements to conform with current year presentation.
  
       The Company is subject to regulation as an operating utility by the
       public utility commissions of the states in which it operates.
       Because of the seasonal nature of gas utility operations, the results
       for interim periods are not necessarily indicative of the results for
       an entire year.
  
       2.  Common Shareholders' Equity
  
       The components of common shareholders' equity were as follows (dollars
       in thousands):
  
                                                  June 30,   September 30,
                                                    1999         1998
  
       Common stock, no par value                 $209,976      $207,356
       Shares held in treasury                      (2,311)       (1,932)
       Retained earnings                            37,037        19,263
       Unearned employee compensation               (2,548)       (1,695)
                                                   -------       -------
       Total common shareholders' equity          $242,154      $222,992
                                                   =======       =======
  
  
       3. Restructuring and Other Non-Recurring Items
  
       The Company recognized approximately $4.0 million of pre-tax, non-
       recurring items in fiscal 1999 relating primarily to the recognition
       of pension settlement gains as a result of the Company's restructuring
       efforts over the past year. These gains were partially offset by a
       special termination charge related to the New Jersey bargaining unit
       early retirement program, the write-off of certain non-recoverable
       regulatory assets, and other charges deemed to be separate from
       recurring operations.
  
       In June 1998, the Company offered an early retirement program to its
       non-bargaining unit personnel.  The program was accepted by 74 of the
       eligible 77 employees.  In accordance with Statement of Financial
       Accounting Standards No. 88, "Employers' Accounting for Settlements
       and Curtailments of Defined Benefit Pension Plans and for Termination
       Benefits" (SFAS 88), the Company recorded a special termination charge
       during fiscal 1998 when the cost was recognizable.  In March 1999, the
       Company recorded a settlement gain of approximately $6.8 million as a
       result of satisfaction of all future liabilities associated with these
       employees.
  
       In January 1999, the Company offered an early retirement program to
       its bargaining unit employees in New Jersey.  The program was accepted
       by 32 of the eligible 35 employees.  In accordance with SFAS 88, the
       Company recorded a special termination charge of approximately $1.8
       million in the second quarter of fiscal 1999 associated with these
       retirements.  In June 1999, the Company recorded a settlement gain of
       approximately $3.2 million as the result of satisfaction of all future
       liabilities associated with these employees.  Also in June 1999, the
       Company recorded an additional $0.6 million of other benefit expenses
       associated with these employees.
  
       The Company recorded approximately $1.8 million of charges relating to
       the write-off of certain regulatory assets which will not be recovered
       through rates.  The Company also recorded $1.8 million of charges
       relating to other items which were deemed to be separate from
       recurring earnings.
  
       4.  Contingencies
  
       Environmental Matters. The Company is subject to federal and state
       laws with respect to water, air quality, solid waste disposal and
       employee health and safety matters, and to environmental regulations
       issued by the United States Environmental Protection Agency (EPA), the
       New Jersey Department of Environmental Protection (NJDEP) and other
       federal and state agencies.
  
       The Company owns, or previously owned, certain properties on which
       manufactured gas plants (MGP) were operated by the Company or by other
       parties in the past. In New Jersey, the Company has reported the
       presence of the six MGP sites to the EPA, the NJDEP and the New Jersey
       Board of Public Utilities (NJBPU). In 1991, the NJDEP issued an
       Administrative Consent Order for the MGP site located at South Street
       in Elizabeth, New Jersey, wherein the Company agreed to conduct a
       remedial investigation and to design and implement a remediation plan.
       In 1992 and 1993, the Company entered into a Memorandum of Agreement
       with the NJDEP for each of the other five New Jersey MGP sites.
       Pursuant to the terms and conditions of the Administrative Consent
       Order and the Memoranda of Agreement, the Company is conducting
       remedial activities at all six sites with oversight from the NJDEP.
  
       The Company also owns, or previously owned, ten former MGP facilities
       located in the states of North Carolina, South Carolina, Pennsylvania,
       New York and Maryland. The Company has joined with other North
       Carolina utilities to form the North Carolina Manufactured Gas Plant
       Group (the MGP Group). The MGP Group has entered into a Memorandum of
       Understanding with the North Carolina Department of Environment,
       Health and Natural Resources (NCDEHNR) to develop a uniform program
       and framework for the investigation and remediation of MGP sites in
       North Carolina. The Memorandum of Understanding contemplates that the
       actual investigation and remediation of specific sites will be
       addressed pursuant to Administrative Consent Orders between the
       NCDEHNR and the responsible parties. The NCDEHNR has sought the
       investigation and remediation of sites owned by members of the MGP
       Group and has entered into Administrative Consent Orders with respect
       to four such sites.  None of these four sites are currently or were
       previously owned by the Company.
  
       Based on the most recent assessment, the Company has recorded a total
       reserve for environmental investigation and remediation costs of
       approximately $34 million, which the Company expects to expend during
       the next 20 years. The reserve is net of approximately $4 million
       which will be borne by a prior owner and operator of two of the New
       Jersey sites in accordance with a cost sharing agreement. Of this
       reserve, approximately $30 million relates to the six New Jersey MGP
       sites and approximately $4 million relates to the ten sites located
       outside New Jersey. However, the Company believes that it is possible
       that costs associated with conducting investigative activities and
       implementing remedial activities, if necessary, with respect to all of
       its MGP sites may exceed this reserve by an amount that could range up
       to an additional $24 million and be incurred during a future period of
       time that may range up to 50 years. Of this additional $24 million in
       possible future expenditures, approximately $12 million relates to the
       New Jersey MGP sites and approximately $12 million relates to the
       sites located outside New Jersey. As compared with the $34 million
       reserve currently recorded on the Company's books as discussed above,
       the Company believes that it is less likely that this additional $24
       million will be incurred and therefore has not recorded it on its
       books.
  
       The Company's prudently incurred remediation costs for the New Jersey
       MGP sites have been authorized by the NJBPU to be recoverable in
       rates. The most recent NJBPU base rate order permits the Company to
       utilize full deferred accounting for expenditures related to its New
       Jersey sites and provides for the recovery of $130,000 annually. As of
       July 1996, the Company is also able to recover MGP expenditures over a
       rolling seven-year period through its NJBPU approved MGP Remediation
       Adjustment Clause. As a result, the Company has begun rate recovery of
       approximately $5.5 million of environmental costs incurred through
       June 30, 1998. Recovery of an additional $2.0 million in environmental
       costs incurred between July 1, 1998 and June 30, 1999 is currently
       pending NJBPU approval. Accordingly, the Company has recorded a
       regulatory asset of approximately $34 million as of June 30, 1999,
       reflecting the future recovery of environmental remediation
       liabilities related to New Jersey MGP sites.  The Company has also
       been successful in recovering a portion of MGP remediation costs
       incurred for the New Jersey sites from the Company's insurance
       carriers and continues to pursue additional recovery.  With respect to
       costs associated with the remaining MGP sites located outside New
       Jersey, the Company intends to pursue recovery from ratepayers, former
       owners and operators, and insurance carriers, although the Company is
       not able to express a belief as to whether any or all of these
       recovery efforts will be successful. The Company is working with the
       regulatory agencies to prudently manage its MGP costs so as to
       mitigate the impact of such costs on both ratepayers and shareholders.
  
       Other. The Company is involved in various claims and litigation
       incidental to its business. In the opinion of management, none of
       these claims and litigation will have a material adverse effect on the
       Company's results of operations or its financial condition.
  
  
  
                          NUI Corporation and Subsidiaries
                        Summary Consolidated Operating Data
  
  
  
                                           Three Months          Nine Months
                                              Ended                 Ended
                                             June 30               June 30
                                         1999      1998         1999      1998
       Operating Revenues (Dollars in
       thousands)
       Firm Sales:
          Residential                   $35,843   $34,553     $177,298  $174,977
          Commercial                     13,794    14,399       73,980    81,097
          Industrial                      1,578     4,253        7,401    15,751
       Interruptible Sales               11,644     9,983       34,153    36,023
       Unregulated Sales                 84,420    93,078      308,668   316,281
       Transportation Services            8,665     8,177       29,504    26,502
       Customer Service, Appliance
       Leasing and Other                  4,734     4,561       13,834    13,109
                                         ------    ------       ------    ------
                                       $160,678  $169,004     $644,838  $663,740
                                        =======   =======      =======   =======
       Gas Sold or Transported (MMcf)
       Firm Sales:
          Residential                     3,359     3,377       19,859    19,848
          Commercial                      1,668     1,828        9,636    10,686
          Industrial                        144     1,007        1,197     3,450
       Interruptible Sales                3,929     3,090       11,694     9,944
       Unregulated Sales                 43,179    38,836      150,123   120,695
       Transportation Services            7,331     6,716       23,760    23,702
                                        -------    ------      -------   -------
                                         59,610    54,854      216,269   188,325
                                        =======   =======      =======   =======
       Average  Utility Customers
       Served
       Firm:
          Residential                   345,556   339,146      344,384   338,848
          Commercial                     23,461    23,257       23,393    23,525
          Industrial                        222       276          256       278
       Interruptible                         50       105           58       111
       Transportation                     3,565     3,373        3,507     2,909
                                          -------   -------      -------   -------
                                        372,854   366,157      371,598   365,671
                                        =======   =======      =======   =======
       Degree Days in New Jersey
          Actual                            464       476        4,347     4,339
          Normal                            574       575        5,151     5,207
          Percentage variance from
           normal                            19%       17%          16%      17%
                                         warmer    warmer       warmer   warmer
  
       Employees (period end)                                      995    1,166
  
  
  
                          NUI Corporation and Subsidiaries
            Management's Discussion and Analysis of Financial Condition
                             and Results of Operations
  
  
       The following discussion and analysis refers to NUI Corporation and
       all of its operating divisions and subsidiaries (collectively referred
       to as the Company). The Company is a multi-state energy sales,
       services and distribution company. It's utility operations distribute
       natural gas and related services in six states along the eastern
       seaboard and comprise Elizabethtown Gas (New Jersey), City Gas Company
       of Florida, North Carolina Gas, Elkton Gas (Maryland), Valley Cities
       Gas (Pennsylvania) and Waverly Gas (New York). The Company also
       provides retail gas sales and related services through its NUI Energy,
       Inc. subsidiary (NUI Energy); wholesale energy brokerage and related
       services through its NUI Energy Brokers, Inc. subsidiary (NUI Energy
       Brokers); energy project development and consulting through its NUI
       Energy Solutions, Inc. subsidiary; environmental project development
       services through its NUI Environmental Group, Inc. subsidiary;
       customer account management and field operations systems and services
       through its Utility Business Services, Inc. subsidiary (UBS); and
       sales and marketing outsourcing through its 49% equity interest in TIC
       Enterprises, LLC (TIC).
  
       Results of Operations
  
       The results for the nine-month period ending June 30, 1999 as compared
       to the nine-month period ending June 30, 1998 reflect changes in the
       New Jersey tax law which resulted in variations in certain line items
       on the consolidated statement of income.  These changes had no effect
       on the quarter ended June 30, 1999 as compared to the quarter ended
       June 30, 1998.  Effective January 1, 1998, New Jersey Gross Receipts
       and Franchise Taxes (GRAFT) were replaced by a combination of a New
       Jersey Sales and Use Tax (Sales Tax), a New Jersey Corporate Business
       Tax (CBT) and a temporary Transitional Energy Facilities Assessment
       (TEFA). In prior periods, GRAFT was recorded as a single line item as
       a reduction of operating margins.  Effective January 1, 1998, TEFA is
       recorded in the energy taxes line item as a reduction of operating
       margins, CBT is recorded in the income taxes line item and Sales Tax
       is recorded as a reduction of operating revenues.  The legislation was
       designed to be net income neutral over a twelve-month period. However,
       for the nine-month period ending June 30, 1999 as compared to the
       nine-month period ended June 30, 1998 the tax changes had the effect
       of reducing operating revenues by approximately $3.4 million, reducing
       energy taxes by approximately $4.1 million and increasing income tax
       expense by approximately $1.2 million.
  
       Three-Month Periods Ended June 30, 1999 and 1998
  
       Net Income (Loss).  Net income for the three-month period ended June
       30, 1999 was $2.4 million, or $0.19 per share, as compared with a net
       loss of $0.4 million, or $0.03 per share, for the three-month period
       ended June 30, 1998. The increase in the current period was partially
       due to the effect of non-recurring items which contributed
       approximately $1.1 million, or $0.08 per share, to net income.  These
       items were primarily associated with the Company's early retirement
       programs (see Note 3 of the Notes to the Consolidated Financial
       Statements).  Absent these non-recurring items, net income would have
       been $1.4 million, or $0.11 per share.  The increase in recurring
       earnings was attributable to higher margins and other income,
       partially offset by higher operations and maintenance expenses, other
       taxes and depreciation and amortization.
  
       Operating Revenues and Operating Margins.  The Company's operating
       revenues include amounts billed for the cost of purchased gas pursuant
       to purchased gas adjustment clauses. Such clauses enable the Company
       to pass through to its customers, via periodic adjustments to
       customers' bills, increased or decreased costs incurred by the Company
       for purchased gas without affecting operating margins. Since the
       Company's utility operations do not earn a profit on the sale of the
       gas commodity, the Company's level of regulated operating revenues is
       not necessarily indicative of financial performance. The Company's
       operating revenues decreased by $8.3 million, or 5%, for the three-
       month period ended June 30, 1999 as compared with the three-month
       period ended June 30, 1998, principally due lower gas prices in the
       current period.
  
       The Company's operating margins increased by $4.9 million, or 14%, for
       the three-month period ended June 30, 1999 as compared with the three-
       month period ended June 30, 1998.  Margins from the Company's
       unregulated operations increased by approximately $3.7 million over
       the prior year period due to favorable results from the Company's
       wholesale trading and retail marketing businesses.  The Company's
       utility distribution margins increased approximately $1.2 million over
       the prior year period mainly due to customer growth and the effect of
       previously deferred post-retirement benefit expenses which are now
       being expensed and recovered through rates.
  
       Other Operating Expenses. Operations and maintenance expenses
       increased by approximately $2.0 million, or 8%, for the three-month
       period ended June 30, 1999 as compared with the three-month period
       ended June 30, 1998. The increase was primarily the result of
       previously deferred post-retirement benefit expenses which are being
       expensed and recovered through rates, higher levels of accrued
       commissions associated with the improved performance of the Company's
       unregulated trading and retail marketing businesses and a lower
       pension credit in the current period. These increases were partially
       offset by labor and benefits reductions resulting from the Company's
       reorganization efforts over the past year.
  
       The Company recognized approximately $1.8 million of non-recurring
       income in the third quarter of fiscal 1999 as a result of a $3.2
       million pension settlement gain realized on the 1999 New Jersey
       bargaining unit early retirement program, offset by other benefit
       expenses associated with these employees, as well as other items which
       were deemed to be separate from recurring earnings (see Note 3 of the
       Notes to the Consolidated Financial Statements).
  
       Depreciation and amortization expenses increased by $0.6 million
       primarily due to additional plant in service.
  
       Other taxes decreased by $0.4 million primarily as a result of lower
       payroll taxes due to a decrease in the number of employees.
  
       Income tax expense increased by approximately $2.0 million for the
       three-month period ended June 30, 1999 as compared to the three-month
       period ended June 30, 1998 as a result of higher pre-tax income.
  
       Other Income and (Expense), Net.  Other income and expense, net,
       increased by approximately $0.2 million for the three-month period
       ended June 30, 1999 as compared with the three-month period ended June
       30, 1998 due to improved results generated by TIC.
  
       Nine-Month Periods Ended June 30, 1999 and 1998
  
       Net Income.  Net income for the nine-month period ended June 30, 1999
       was $27.1 million, or $2.13 per share, as compared with net income of
       $22.1 million, or $1.76 per share, for the nine-month period ended
       June 30, 1998. The increase in the current period was partially due to
       the effect of non-recurring items which contributed $2.3 million, or
       $0.18 per share, to net income (see Note 3 of the Notes to the
       Consolidated Financial Statements).  Absent these non-recurring items,
       net income would have been $24.8 million, or $1.95 per share.  The
       increase in recurring earnings was attributable to higher margins,
       partially offset by higher operations and maintenance expenses,
       depreciation and amortization, and interest.
  
       Net income per share in the current period was also affected by the
       increased number of outstanding shares of common stock over the prior
       year period, issued through various stock plans.
  
       Operating Revenues and Operating Margins. The Company's operating
       revenues decreased by $18.9 million, or 3%, for the nine-month period
       ended June 30, 1999 as compared with the nine-month period ended
       June 30, 1998. The decrease was principally due to a decrease of
       approximately $12.0 million in the Company's utility operations
       primarily resulting from changes in the New Jersey tax law noted above
       and weather that was warmer in the current year in several of the
       Company's service territories.  In addition, there was a decrease of
       $7.6 million in the Company's unregulated operations primarily due to
       lower gas prices in the current period.
  
       The Company's operating margins increased by $11.9 million, or 8%, for
       the nine-month period ended June 30, 1999 as compared with the nine-
       month period ended June 30, 1998.  The increase was primarily
       attributable to an increase of $7.9 million in the Company's
       unregulated operations as a result of an increase in the Company's
       wholesale trading, energy portfolio management, and retail marketing
       businesses.  Utility distribution operations increased by $3.7 million
       as a result of customer growth, the effect of the changes in the New
       Jersey tax law described above, and an additional $1.9 million due to
       the recovery of previously deferred post-retirement benefit expenses
       through rates.  The Company's customer service operations contributed
       approximately $0.3 million to the increase in margins as a result of
       continued growth by UBS and the Company's appliance sales and leasing
       business.  As a result of weather normalization clauses, operating
       margins were approximately $5.4 million higher in the 1999 period than
       they would have been without such clauses. In the 1998 period,
       operating margins were approximately $5.6 million higher than they
       otherwise would have been without such clauses.
  
       Other Operating Expenses.  Operation and maintenance expenses
       increased by approximately $4.5 million, or 6%, for the nine-month
       period ended June 30, 1999 as compared with the nine-month period
       ended June 30, 1998. The increase was primarily the result of
       previously deferred post-retirement benefit expenses which are being
       expensed and recovered through rates, higher levels of accrued
       incentives associated with the improved performance of the Company's
       unregulated trading and retail marketing businesses and a lower
       pension credit in the current period.  These increases were partially
       offset by labor and benefit savings from the Company's reorganization
       efforts over the past year, as well as lower outside contract work.
  
       The Company recognized approximately $4.0 million of pre-tax non-
       recurring income during the nine-month period ended June 30, 1999.
       See Note 3 of the _Notes to the Consolidated Financial Statements_ for
       a description of these items.
  
       Depreciation and amortization expenses increased by $1.3 million
       primarily due to additional plant in service.
  
       Income tax expense increased by approximately $4.7 million due to
       higher pre-tax income, as well as the changes in the New Jersey tax
       law described above.
  
       Interest Expense. Interest expense increased by approximately $0.8
       million for the nine-month period ended June 30, 1999 as compared with
       the nine-month period ended June 30, 1998.  This increase was
       primarily due to interest on the Company's $40 million bond issuance
       in December 1998, as well as higher average short-term borrowings.
       These increases were partially offset by an increase in interest
       income on funds held by trustee as a result of the $40 million
       issuance noted above being put into trust for use on qualified
       expenditures (see "Financing Activities and Resources - Long-Term Debt
       and Funds for Construction Held by Trustee").
  
       Regulatory Matters
  
       On April 30, 1999, the Company made a filing with the New Jersey Board
       of Public Utilities (NJBPU) which will enable all customers to choose
       an alternative supplier.  This filing was a result of the "Electric
       Discount and Energy Competition Act" legislation which was signed into
       law in New Jersey on February 9, 1999.  The legislation has several
       provisions that affect gas utilities.  It provides all gas customers
       with the ability to choose an alternate natural gas supplier by
       December 31, 1999.  At the same time, the utility will continue to
       provide basic gas service through December 2002 when the NJBPU will
       decide if the gas supply function should be made competitive.  The
       NJBPU will also conduct proceedings to determine whether customers
       should be afforded the option of contracting with an alternative
       provider of billing, collection, meter reading and other services that
       may be deemed competitive by December 31, 2000.
  
       On July 7, 1999, the NJBPU approved a final stipulation on the
       Company's New Jersey's Purchased Gas Adjustment Clause filing in which
       the Company would continue to charge rates approved in an interim
       stipulation and approved by the NJBPU on March 3, 1999.  In addition,
       the stipulation provided that the Company would refund to customers
       $10 million of over-recovered gas costs.  Of this amount, $5.6 million
       would be applied against a Weather Normalization Clause (WNC) under-
       recovery and the balance will be credited to customer bills in late
       fiscal 1999.  The stipulation also allows the Company to defer the
       costs of its undepreciated propane-air plant, presently not in use,
       until its next base rate case.
  
       Financing Activities and Resources
  
       The Company had net cash provided by operating activities of $76.1
       million and $30.3 million for the nine-month periods ended June 30,
       1999 and 1998, respectively.  The increase in the nine-month period
       ended June 30, 1999 was primarily due to a significantly higher over-
       collection of gas costs through the Company's purchased gas adjustment
       clauses and a lower cost paid for the gas in the Company's inventory.
  
       Because the Company's business is highly seasonal, short-term debt is
       used to meet seasonal working capital requirements. The Company also
       borrows under its bank lines of credit to finance portions of its
       capital expenditures, pending refinancing through the issuance of
       equity or long-term indebtedness at a later date depending upon
       prevailing market conditions.
  
       Short-Term Debt. The weighted average daily amounts outstanding of
       notes payable to banks and the weighted average interest rates on
       those amounts were $70.9 million at 5.4% for the nine-month period
       ended June 30, 1999 and $63.4 million at 5.8% for the nine-month period
       ended June 30, 1998.  The weighted average daily amounts of notes
       payable to banks increased principally due to additional borrowings to
       finance portions of the Company's capital expenditures earlier in the
       year.  At June 30, 1999, the Company had outstanding notes payable to
       banks amounting to $42.1 million and available unused lines of credit
       amounting to $108.9 million.  Notes payable to banks decreased as of
       June 30, 1999, as compared to the balance outstanding at September 30,
       1998, due to seasonal borrowing requirements.
  
       Long-Term Debt and Funds for Construction Held by Trustee.  On
       December 8, 1998, the Company issued $40 million of tax-exempt Gas
       Facilities Revenue Bonds at an interest rate of 5.25%.  These bonds
       will mature in November 2033 and the proceeds will be used to finance
       a portion of the Company's capital expenditure program in New Jersey.
  
       The Company deposits in trust the unexpended portion of the net
       proceeds from its Gas Facilities Revenue Bonds until drawn upon for
       eligible expenditures. As of June 30, 1999, the total unexpended
       portions of all of the Company's Gas Facilities Revenue Bonds were $37
       million and are classified on the Company's consolidated balance
       sheet, including interest earned thereon, as funds for construction
       held by trustee.
  
       Common Stock. The Company periodically issues shares of common stock
       in connection with NUI Direct, the Company's dividend reinvestment
       plan, and other employee benefit plans. The proceeds from such
       issuances amounted to approximately $0.7 million and $3.9 million for
       the nine-month periods ended June 30, 1999 and 1998, respectively, and
       were used primarily to reduce outstanding short-term debt. The
       decrease in proceeds received in the nine-month period ended June 30,
       1999, as compared to the nine-month period ended June 30, 1998,
       reflects that several of these plans commenced purchasing shares on
       the open market during 1998 to fulfill the plans' requirements.  Under
       the terms of these plans, the Company may periodically change the
       method of purchasing shares from open market purchases to purchases
       directly from the Company, or vice versa.
  
       Dividends.  The Company's long-term debt agreements include, among
       other things, restrictions as to the payment of cash dividends.  Under
       the most restrictive of these provisions, the Company is permitted to
       pay approximately $56.6 million of cash dividends at June 30, 1999.
  
       Capital Expenditures and Commitments
  
       Capital expenditures, which consist primarily of expenditures to
       expand and upgrade the Company's gas distribution systems, were $26.2
       million for the nine-month period ended June 30, 1999 as compared with
       $43.8 million for the nine-month period ended June 30, 1998. Capital
       expenditures are expected to be approximately $52.0 million for all of
       fiscal 1999, as compared with a total of $60.9 million in fiscal 1998.
  
       The Company owns or previously owned six former manufactured gas plant
       (MGP) sites in the state of New Jersey and ten former MGP sites in the
       states of North Carolina, South Carolina, Pennsylvania, New York and
       Maryland.  Based on the Company's most recent assessment, the Company
       has recorded a total reserve for environmental investigation and
       remediation costs of approximately $34 million, which the Company
       expects it will expend in the next twenty years to remediate the
       Company's MGP sites. Of this reserve, approximately $30 million
       relates to New Jersey MGP sites and approximately $4 million relates
       to the MGP sites located outside New Jersey. However, the Company
       believes that it is possible that costs associated with conducting
       investigative activities and implementing remedial actions, if
       necessary, with respect to all of its MGP sites may exceed this
       reserve by an amount that could range up to an additional $24 million
       and be incurred during a future period of time that may range up to 50
       years. Of this $24 million in possible additional expenditures,
       approximately $12 million relates to the New Jersey sites and
       approximately $12 million relates to the remaining MGP sites. As
       compared with the $34 million reserve currently recorded on the
       Company's books as discussed above, the Company believes that it is
       less likely that this additional $24 million will be incurred and
       therefore has not recorded it on its books. The Company believes that
       all costs associated with the New Jersey MGP sites will be recoverable
       in rates or from insurance carriers. In New Jersey, the Company is
       currently recovering environmental costs on an annual basis through
       base rates and over a rolling seven-year period through its MGP
       Remediation Adjustment Clause. As a result, the Company has begun rate
       recovery of approximately $5.5 million of environmental costs incurred
       through June 30, 1998. Recovery of an additional $2.0 million in
       environmental costs incurred between July 1, 1998 and June 30, 1999 is
       currently pending NJBPU approval. With respect to costs which may be
       associated with the MGP sites located outside the state of New Jersey,
       the Company intends to pursue recovery from ratepayers, former owners
       and operators of the sites and from insurance carriers. However, the
       Company is not able, at this time, to express a belief as to whether
       any or all of these recovery efforts will ultimately be successful.
  
       Certain of the Company's long-term contracts for the supply, storage
       and delivery of natural gas include fixed charges that amount to
       approximately $68.9 million annually. The Company currently recovers,
       and expects to continue to recover, such fixed charges through its
       purchased gas adjustment clauses. The Company also is committed to
       purchase, at market-related prices, minimum quantities of gas that, in
       the aggregate, are approximately 3.4 billion cubic feet per year or to
       pay certain costs in the event the minimum quantities are not taken.
  
       The Company expects that minimum demand on its systems for the
       duration of these contracts will continue to exceed these minimum
       purchase obligations.
  
       The Company is scheduled to repay $20 million of Medium-Term Notes in
       August 2002.
  
       Market Risk Exposure
  
       The Company's wholesale trading subsidiary, NUI Energy Brokers, uses
       derivatives for multiple purposes:  1) to hedge price commitments and
       minimize the risk of fluctuating gas prices, 2) to take advantage of
       market information and opportunities in the marketplace, and 3) to
       fulfill its trading strategies and, therefore, ensure favorable prices
       and margins.  These derivative instruments include forwards, futures,
       options, and swaps.
  
       The risk associated with uncovered derivative positions is closely
       monitored on a daily basis, and controlled in accordance with NUI
       Energy Brokers' Risk Management Policy.  This policy has been approved
       by the Company's Board of Directors and dictates policies and
       procedures for all trading activities.  The policy defines both value-
       at-risk (VaR) and loss limits, and all traders are required to sign
       and follow this policy.  At the end of each day, all trading positions
       are marked to market and a VaR is calculated.  This information, as
       well as the status of all limits, is disseminated to senior management
       daily.
  
       NUI Energy Brokers utilizes the variance/covariance VaR methodology.
       Using a 95% confidence interval and a one day time horizon, as of
       June 30, 1999, NUI Energy Brokers' VaR was $99,000.
  
       Year 2000
  
       Many existing computer programs and systems with embedded digital
       microcontrollers use only two digits to identify a year in the date
       field, or were not designed in other ways to provide for the upcoming
       change in the century. If not corrected, many systems that use digital
       technology could fail or create errors that may result in a
       significant adverse impact on NUI's ability to provide service, its
       regulatory relations and financial condition.
  
       NUI has developed a Risk Mitigation Plan (Plan) as an internal guide
       to its systems readiness program. The purpose of the program is to
       mitigate the risks associated with Year 2000 technology issues. The
       Plan includes the following phases: (i) development of a detailed
       inventory of all information technology (IT) and non-IT systems that
       incorporate any technology component including embedded
       microprocessors and microcontrollers (Inventory Phase); (ii)
       assessment of those systems for Year 2000 vulnerability (Assessment
       Phase); (iii) remediation of the affected systems (Remediation Phase);
       and (iv) testing of sub-systems, hardware, operating and application
       software running as integrated systems (Testing Phase). In addition,
       the Plan requires (v) an analysis of the risk of system failure and
       the consequences of failure in order to focus testing resources and
       prioritization of resources under contingency plans (Risk Analysis).
       The Inventory, Assessment and the Risk Analysis Phases include
       material direct third-party suppliers and vendors. The final phase is
       (vi) contingency planning, which is described below.
  
       Under the Plan, NUI has established an executive level Year 2000
       Committee (Committee) to monitor the Company's Year 2000 progress.
       This Committee is chaired by NUI's Chief Operating Officer and
       includes the senior managers of all NUI's business units, the Chief
       Administrative Officer, General Counsel and Secretary and the Vice
       President of Corporate Development and Treasurer. The Committee
       receives monthly reports from a project coordinator and team. Members
       of the team are responsible for NUI gas distribution system controls,
       computer hardware, operating and communication systems, and for
       critical suppliers. The Chairman of the Committee reports to NUI's
       Board of Directors on Year 2000 issues on a periodic basis.
  
       All major billing, field service, networked information technology and
       gas distribution control and monitoring systems have been inventoried.
       Detailed inventorying of known material systems with embedded
       microcontrollers comprising environmental and support systems, such as
       telephone systems, heating and air conditioning, and backup electric
       generating systems, has been substantially completed.
  
       The entire Assessment Phase, including the assessment of financial and
       field service systems and natural gas distribution control and
       monitoring systems, has been substantially completed at this time.
  
       Other than the hand-held meter reading units, which are currently in
       the process of being replaced, all known hardware and operating
       systems that handle billing and field service, and which required
       remediation, have been replaced. Replacement of NUI's billing system
       in North Carolina is complete.  Replacement of NUI's billing system in
       Pennsylvania is in progress and is currently scheduled for completion
       in August 1999.  NUI's financial systems have been upgraded to a new
       version of third-party supplied software. Certain telephone systems
       are in the process of being remediated and are currently scheduled for
       substantial completion by the end of August 1999.  Any other
       remediation will be reviewed when the need arises.
  
       Individual programs are generally being tested on a stand-alone basis
       as they are remediated.  However, suites of programs must be tested as
       entire systems, running on remediated hardware and operating systems.
       Integrated testing for natural gas distribution and control and
       monitoring systems, and billing and field service software has been
       substantially completed.  Integrated testing of other systems is
       scheduled for completion by the end of September 1999.
  
       The Risk Analysis Phase involved NUI assigning priority ratings to
       each of its major systems, based on both the risk of the systems'
       failure and the potential consequences to the underlying business.
       This was without taking into account alternatives available under
       contingency planning.  Systems supporting business processes which
       might affect human safety were assigned the highest rating.
  
       NUI's systems and customers are vulnerable to systems operated by
       third-parties that may not be Year 2000 ready. NUI has identified its
       critical direct suppliers and vendors. These include, at the very
       highest level of importance, interstate pipeline suppliers,
       telecommunications carriers, and electric suppliers. Interstate
       pipeline suppliers must appropriately schedule and control gas
       supplies to NUI's own distribution systems. Telecommunications
       carriers' digital circuits are used to control and monitor NUI's gas
       distribution system with voice circuits as emergency backup and for
       customers' reporting of emergencies. Electricity supplies are critical
       to NUI's customers for natural gas heating equipment and industrial
       process control.
  
       NUI is assessing the Year 2000 readiness of its critical suppliers.
       Assessment of third party systems is substantially complete.  NUI will
       continue to work with these suppliers through 1999 to gain greater
       assurance that appropriate steps are being taken to ensure security of
       supply and the continued accurate exchange of critical data. Any
       remediation and contingency planning will be reviewed and determined
       based on the results of such third-party assessments.
  
       The total estimated costs of assessing, remediating and testing NUI's
       systems for Year 2000 compliance is approximately $3.5 million, of
       which approximately $2.8 million has been incurred through June 30,
       1999.  Approximately 50% of these costs will relate to capital
       projects.  The Company has, and will continue, to fund these costs
       from the operations of the Company. These estimated costs do not
       include any third-party remediation that may be required, or any
       resulting contingency planning.
  
       Customers are dependent on NUI's reliable and secure gas supply,
       emergency response and billing services. Each of these services relies
       on the Company's computer systems.  A failure in these systems could
       materially interrupt the normal flow of these services and
       significantly impact human safety and physical property and have a
       significant adverse financial impact on NUI, its customers and
       suppliers. NUI and third-party critical suppliers are also
       interdependent, and failure of third-party suppliers to be Year 2000
       ready could significantly impact the Company's ability to serve its
       customers.  Third-party systems are being reviewed however NUI has not
       ascertained a reasonably likely worst case scenario.  Due to the
       general uncertainty of the Year 2000 problem, resulting in part from
       the uncertainty of the Year 2000 readiness of third-parties, the
       Company is unable to determine at this time whether the consequences
       of Year 2000 failures will have a material impact on the Company's
       results of operations or financial condition. The Plan is expected to
       significantly reduce the Company's level of uncertainty about the Year
       2000 problem and the readiness of third-parties. The Company believes
       that due to its Plan, the likelihood of major consequences should be
       reduced.
  
       Contingency plans are being developed as necessary for the Company's
       own systems and its third-party relationships, in response to its
       assessments, remediation and testing activities. Contingency planning
       is substantially complete.
  
       Forward-Looking Statements
  
       This document contains forward-looking statements within the meaning
       of Section 21E of the Securities Exchange Act of 1934, as amended.
       The Company cautions that, while it believes such statements to be
       reasonable and are made in good faith, such forward-looking statements
       almost always vary from actual results, and the differences between
       assumptions made in making such statements and actual results can be
       material, depending upon the circumstances.  Factors, which may make
       the actual results differ from anticipated results include, but are
       not limited to, economic conditions; unforeseen competition; weather
       conditions; fluctuations in the price of natural gas and other forms
       of energy; the outcome of certain assumptions made in regard to Year
       2000 issues; and other uncertainties, all of which are difficult to
       predict and many of which are beyond the control of the Company.
       Accordingly, investors should not rely upon these forward-looking
       statements in making investment decisions.
  
  
                          PART II - OTHER INFORMATION
  
  
       Item 6.   Exhibits and Reports on Form 8-K
  
       (a)  Exhibits.
  
       Exhibit
         No.          Description of Exhibit                  Reference
  
         27           Financial Data Schedule              Filed herewith
  
       (b)  Reports on Form 8-K
  
            None
  
  
                                  SIGNATURES
  
  
  
       Pursuant to the requirements of the Securities Exchange Act of 1934,
       the Registrant has duly caused this report to be signed on its behalf
       by the undersigned thereunto duly authorized.
  
  
                                            NUI CORPORATION
  
                                            JOHN KEAN, JR.
       August 13, 1999                      President and Chief
                                            Executive Officer
  
                                            A. MARK ABRAMOVIC
       August 13, 1999                      Senior Vice President and
                                            Chief Financial Officer
metadata_filer: {"company-data": {"conformed-name": "NUI CORP", "cik": "0000070668", "assigned-sic": "4924", "irs-number": "221869941", "state-of-incorporation": "NJ", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-08353", "film-number": "99688326"}, "business-address": {"street1": "550 RTE 202-206", "street2": "BOX 760", "city": "BEDMINSTER", "state": "NJ", "zip": "07921-0760", "phone": "9087810500"}, "mail-address": {"street1": "550 ROUTE 202-206", "street2": "P.O. BOX 760", "city": "BEDMINSTER", "state": "NJ", "zip": "07921-0760"}, "former-company": {"former-conformed-name": "NATIONAL UTILITIES & INDUSTRIES CORP", "date-changed": "19830502"}}
text: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549
                                   FORM 10-Q
  
       (Mark One)
         X - QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934
  
       For the quarterly period ended June 30, 1999
                                      OR
  
            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            SECURITIES EXCHANGE ACT OF 1934
  
       For the transition period from ____________ to____________
  
       Commission File Number   1-8353
  
                                       NUI
            (Exact name of registrant as specified in its charter)
  
                 New Jersey                      22-1869941
          (State of incorporation)    (IRS employer identification no.)
  
         550 Route 202-206, PO Box 760, Bedminster, New Jersey 07921-0760
         (Address of principal executive offices, including zip code)
  
                                (908) 781-0500
             (Registrant's telephone number, including area code)
  
       Indicate  by check mark  whether the registrant:  (1) has  filed
       all  reports required to be filed by Section 13 or 15(d)  of the
       Securities  Exchange Act of 1934 during the preceding  12 months
       (or for such shorter period that the registrant  was required to
       file  such reports),  and (2)  has been subject  to such  filing
       requirements for the past 90 days.       Yes - X     No
  
                     APPLICABLE ONLY TO CORPORATE ISSUERS:
  
       The number of shares outstanding of each of the registrant's
       classes of common stock, as of July 31, 1999: Common Stock, No
       Par Value: 12,748,967 shares outstanding.
  
                          NUI Corporation and Subsidiaries
                    Consolidated Statement of Income (Unaudited)
                  (Dollars in thousands, except per share amounts)
  Three Months             Nine Months
                                                   Ended                   Ended
                                                  June 30                 June 30
                                              1999        1998        1999       1998
                                              ----------------        ---------------
  Operating Margins
          Operating revenues                $160,678    $169,004    $644,838    $663,740
          Less - Purchased gas and fuel      117,118     130,430     472,047     497,974
                 Energy taxes                  2,664       2,551      12,187      17,075
                                             -------     -------     -------     -------
                                              40,896      36,023     160,604     148,691
                                             -------     -------     -------     -------
       Other Operating Expenses
          Operations and maintenance          25,271      23,320      76,397      71,867
          Depreciation and amortization        6,919       6,326      20,703      19,401
          Restructuring and other non-
            recurring items                   (1,840)          -      (3,954)          -
          Other taxes                          2,211       2,568       6,897       7,515
          Income taxes                         1,760        (200)     19,014      14,318
                                             -------     -------     -------     -------
                                              34,321      32,014     119,057     113,101
                                             -------     -------     -------     -------
       Operating Income                        6,575       4,009      41,547      35,590
  
       Other Income and Expense,  Net
       Equity in earnings of TIC
       Enterprises, LLC, net                     460          42         716         150
       Other                                      12          72         121         873
       Income taxes                             (165)        (40)       (293)       (358)
                                             -------     -------     -------     -------
                                                 307          74         544         665
                                             -------     -------     -------     -------
       Interest Expense                        4,458       4,515      14,987      14,203
                                             -------     -------     -------     -------
       Net Income (Loss)                      $2,424       $(432)    $27,104     $22,052
                                             =======     =======     =======     =======
       Net Income (Loss) Per Share of
          Common Stock                         $0.19      $(0.03)      $2.13       $1.76
                                             =======     =======     =======     =======
       Dividends Per Share of Common
          Stock                               $0.245      $0.245      $0.735      $0.735
                                             =======     =======     =======     =======
       Weighted Average Number of Shares
          of Common Stock Outstanding     12,733,055  12,654,101  12,708,265  12,556,940
                                          ==========  ==========  ==========  ==========
  See the notes to the consolidated financial statements
  
                          NUI Corporation and Subsidiaries
                             Consolidated Balance Sheet
                               (Dollars in thousands)
  
                                              June 30,    September 30,
                                                1999           1998
                                             (Unaudited)        (*)
       ASSETS
       Utility Plant
          Utility plant, at original cost      $765,842      $737,323
          Accumulated depreciation and
             amortization                      (254,094)     (234,484)
          Unamortized plant acquisition
            adjustments                          30,613        30,904
                                               --------      --------
                                                542,361       533,743
                                               --------      --------
       Funds for Construction Held by
        Trustee                                  41,588        12,254
                                               --------      --------
       Investment in TIC Enterprises, LLC,
        net                                      24,397        23,874
                                               --------      --------
       Other Investments                          1,324         1,687
                                               --------      --------
       Current Assets
        Cash and cash equivalents                 2,356           929
        Accounts receivable (less
        allowance for doubtful accounts
        of $2,278 and $1,714, respectively)      76,900        62,673
        Fuel inventories, at average cost        15,471        34,937
        Unrecovered purchased gas costs               -         8,061
        Prepayments and other                    56,454        37,790
                                               --------      --------
                                                151,181       144,390
                                               --------      --------
       Other Assets
          Regulatory assets                      49,500        50,475
          Deferred charges                       10,716        10,424
                                               --------      --------
                                                 60,216        60,899
                                               --------      --------
                                               $821,067      $776,847
                                               ========      ========
       CAPITALIZATION AND LIABILITIES
       Capitalization
          Common shareholders' equity          $242,154      $222,992
          Preferred stock                             -             -
          Long-term debt                        268,902       229,098
                                               --------      --------
                                                511,056       452,090
                                               --------      --------
       Capital Lease Obligations                  1,788         8,566
                                               --------      --------
       Current Liabilities
          Notes payable to banks                 42,055        87,630
          Current portion of capital lease
           obligations                            7,664         1,810
          Accounts payable, customer
           deposits and accrued liabilities      88,034        87,158
          Overrecovered purchased gas costs      17,795             -
          Federal income and other taxes         14,465         5,635
                                               --------      --------
                                                170,013       182,233
                                               --------      --------
       Deferred Credits and Other
       Liabilities
          Deferred Federal income taxes          66,336        62,519
          Unamortized investment tax
           credits                                5,365         5,710
          Environmental remediation reserve      33,981        33,981
          Regulatory and other liabilities       32,528        31,748
                                               --------      --------
                                                138,210       133,958
                                               --------      --------
                                               $821,067      $776,847
                                               ========      ========
  
                     *Derived from audited financial statements
               See the notes to the consolidated financial statements
  
                          NUI Corporation and Subsidiaries
                  Consolidated Statement of Cash Flows (Unaudited)
                               (Dollars in thousands)
  
                                                         Nine Months
                                                            Ended
                                                          June 30,
                                                       1999        1998
  
       Operating Activities
       Net income                                     $27,104     $22,052
       Adjustments to reconcile net income to net
       cash provided by operating activities:
          Depreciation and amortization                21,298      20,154
          Deferred Federal income taxes                 3,817       1,911
          Non-cash portion of restructuring and
           other non-recurring items                   (4,726)          -
          Amortization of deferred investment tax
           credits                                      (345)        (336)
          Other                                         1,282         480
          Effect of changes in:
            Accounts receivable, net                  (14,227)     (9,216)
            Fuel inventories                           19,466       8,831
            Accounts payable, deposits and
             accruals                                     876      (8,082)
            Over (under) recovered purchased gas
             costs                                     25,856       4,935
            Other                                      (4,285)    (10,472)
                                                    ---------    --------
          Net cash provided by operating
           activities                                  76,116      30,257
                                                    ---------    --------
       Financing Activities
       Proceeds from sales of common stock, net of
        treasury stock purchased                          332       3,782
       Dividends to shareholders                       (9,330)     (9,252)
       Proceeds from issuance of long-term debt        39,804           -
       Funds for construction held by trustee, net    (29,515)     13,115
       Repayments of long-term debt                        -      (54,600)
       Principal payments under capital lease
        obligations                                    (1,238)     (1,339)
       Net short-term (repayments) borrowings         (45,575)      5,038
                                                    ---------    --------
         Net cash used in financing activities       (45,522)     (43,256)
                                                    ---------    --------
       Investing Activities
       Cash expenditures for utility plant           (25,831)     (43,408)
       Other                                         (3,336)       (1,979)
                                                    ---------    --------
         Net cash used in investing activities       (29,167)     (45,387)
                                                    ---------    --------
       Net increase (decrease) in cash and cash
        equivalents                                   $1,427     $(58,386)
                                                    ========     ========
       Cash and Cash Equivalents
       At beginning of period                        $   929      $58,793
       At end of period                              $ 2,356      $   407
  
       Supplemental Disclosures of Cash Flows
       Income taxes paid, net                        $ 4,109      $ 5,262
       Interest paid                                 $16,356      $17,433
  
               See the notes to the consolidated financial statements
  
                          NUI Corporation and Subsidiaries
                   Notes to the Consolidated Financial Statements
  
       1.  Basis of Presentation
  
       The consolidated financial statements include all operating divisions
       and subsidiaries of NUI Corporation (collectively referred to as the
       Company). The Company is a multi-state energy sales, services and
       distribution company. Its utility operations distribute natural gas
       and related services in six states along the eastern seaboard and
       comprise Elizabethtown Gas (New Jersey), City Gas Company of Florida,
       North Carolina Gas, Elkton Gas (Maryland), Valley Cities Gas
       (Pennsylvania) and Waverly Gas (New York). The Company also provides
       retail gas sales and related services through its NUI Energy, Inc.
       subsidiary; wholesale energy brokerage and related services through
       its NUI Energy Brokers, Inc. subsidiary; energy project development
       and consulting through its NUI Energy Solutions, Inc. subsidiary;
       environmental project development services through its NUI
       Environmental Group, Inc. subsidiary; customer account management and
       field operations systems and services through its Utility Business
       Services, Inc. subsidiary; and sales and marketing outsourcing through
       its 49% equity interest in TIC Enterprises, LLC (TIC).  All
       intercompany accounts and transactions have been eliminated in
       consolidation.
  
       The consolidated financial statements contained herein have been
       prepared without audit in accordance with the rules and regulations of
       the Securities and Exchange Commission and reflect all adjustments
       which, in the opinion of management, are necessary for a fair
       statement of the results for interim periods. All adjustments made
       were of a normal recurring nature. The preparation of financial
       statements in accordance with generally accepted accounting principles
       requires management to make estimates and assumptions that affect the
       reported amounts of assets and liabilities, the disclosure of
       contingent assets and liabilities at the date of the financial
       statements and the reported amounts of revenues and expenses during
       the reporting period. Actual results could differ from those
       estimates. The consolidated financial statements should be read in
       conjunction with the consolidated financial statements and the notes
       thereto that are included in the Company's Annual Report on Form 10-K
       for the fiscal year ended September 30, 1998.  Certain
       reclassifications have been made to the prior year financial
       statements to conform with current year presentation.
  
       The Company is subject to regulation as an operating utility by the
       public utility commissions of the states in which it operates.
       Because of the seasonal nature of gas utility operations, the results
       for interim periods are not necessarily indicative of the results for
       an entire year.
  
       2.  Common Shareholders' Equity
  
       The components of common shareholders' equity were as follows (dollars
       in thousands):
  
                                                  June 30,   September 30,
                                                    1999         1998
  
       Common stock, no par value                 $209,976      $207,356
       Shares held in treasury                      (2,311)       (1,932)
       Retained earnings                            37,037        19,263
       Unearned employee compensation               (2,548)       (1,695)
                                                   -------       -------
       Total common shareholders' equity          $242,154      $222,992
                                                   =======       =======
  
       3. Restructuring and Other Non-Recurring Items
  
       The Company recognized approximately $4.0 million of pre-tax, non-
       recurring items in fiscal 1999 relating primarily to the recognition
       of pension settlement gains as a result of the Company's restructuring
       efforts over the past year. These gains were partially offset by a
       special termination charge related to the New Jersey bargaining unit
       early retirement program, the write-off of certain non-recoverable
       regulatory assets, and other charges deemed to be separate from
       recurring operations.
  
       In June 1998, the Company offered an early retirement program to its
       non-bargaining unit personnel.  The program was accepted by 74 of the
       eligible 77 employees.  In accordance with Statement of Financial
       Accounting Standards No. 88, "Employers' Accounting for Settlements
       and Curtailments of Defined Benefit Pension Plans and for Termination
       Benefits" (SFAS 88), the Company recorded a special termination charge
       during fiscal 1998 when the cost was recognizable.  In March 1999, the
       Company recorded a settlement gain of approximately $6.8 million as a
       result of satisfaction of all future liabilities associated with these
       employees.
  
       In January 1999, the Company offered an early retirement program to
       its bargaining unit employees in New Jersey.  The program was accepted
       by 32 of the eligible 35 employees.  In accordance with SFAS 88, the
       Company recorded a special termination charge of approximately $1.8
       million in the second quarter of fiscal 1999 associated with these
       retirements.  In June 1999, the Company recorded a settlement gain of
       approximately $3.2 million as the result of satisfaction of all future
       liabilities associated with these employees.  Also in June 1999, the
       Company recorded an additional $0.6 million of other benefit expenses
       associated with these employees.
  
       The Company recorded approximately $1.8 million of charges relating to
       the write-off of certain regulatory assets which will not be recovered
       through rates.  The Company also recorded $1.8 million of charges
       relating to other items which were deemed to be separate from
       recurring earnings.
  
       4.  Contingencies
  
       Environmental Matters. The Company is subject to federal and state
       laws with respect to water, air quality, solid waste disposal and
       employee health and safety matters, and to environmental regulations
       issued by the United States Environmental Protection Agency (EPA), the
       New Jersey Department of Environmental Protection (NJDEP) and other
       federal and state agencies.
  
       The Company owns, or previously owned, certain properties on which
       manufactured gas plants (MGP) were operated by the Company or by other
       parties in the past. In New Jersey, the Company has reported the
       presence of the six MGP sites to the EPA, the NJDEP and the New Jersey
       Board of Public Utilities (NJBPU). In 1991, the NJDEP issued an
       Administrative Consent Order for the MGP site located at South Street
       in Elizabeth, New Jersey, wherein the Company agreed to conduct a
       remedial investigation and to design and implement a remediation plan.
       In 1992 and 1993, the Company entered into a Memorandum of Agreement
       with the NJDEP for each of the other five New Jersey MGP sites.
       Pursuant to the terms and conditions of the Administrative Consent
       Order and the Memoranda of Agreement, the Company is conducting
       remedial activities at all six sites with oversight from the NJDEP.
  
       The Company also owns, or previously owned, ten former MGP facilities
       located in the states of North Carolina, South Carolina, Pennsylvania,
       New York and Maryland. The Company has joined with other North
       Carolina utilities to form the North Carolina Manufactured Gas Plant
       Group (the MGP Group). The MGP Group has entered into a Memorandum of
       Understanding with the North Carolina Department of Environment,
       Health and Natural Resources (NCDEHNR) to develop a uniform program
       and framework for the investigation and remediation of MGP sites in
       North Carolina. The Memorandum of Understanding contemplates that the
       actual investigation and remediation of specific sites will be
       addressed pursuant to Administrative Consent Orders between the
       NCDEHNR and the responsible parties. The NCDEHNR has sought the
       investigation and remediation of sites owned by members of the MGP
       Group and has entered into Administrative Consent Orders with respect
       to four such sites.  None of these four sites are currently or were
       previously owned by the Company.
  
       Based on the most recent assessment, the Company has recorded a total
       reserve for environmental investigation and remediation costs of
       approximately $34 million, which the Company expects to expend during
       the next 20 years. The reserve is net of approximately $4 million
       which will be borne by a prior owner and operator of two of the New
       Jersey sites in accordance with a cost sharing agreement. Of this
       reserve, approximately $30 million relates to the six New Jersey MGP
       sites and approximately $4 million relates to the ten sites located
       outside New Jersey. However, the Company believes that it is possible
       that costs associated with conducting investigative activities and
       implementing remedial activities, if necessary, with respect to all of
       its MGP sites may exceed this reserve by an amount that could range up
       to an additional $24 million and be incurred during a future period of
       time that may range up to 50 years. Of this additional $24 million in
       possible future expenditures, approximately $12 million relates to the
       New Jersey MGP sites and approximately $12 million relates to the
       sites located outside New Jersey. As compared with the $34 million
       reserve currently recorded on the Company's books as discussed above,
       the Company believes that it is less likely that this additional $24
       million will be incurred and therefore has not recorded it on its
       books.
  
       The Company's prudently incurred remediation costs for the New Jersey
       MGP sites have been authorized by the NJBPU to be recoverable in
       rates. The most recent NJBPU base rate order permits the Company to
       utilize full deferred accounting for expenditures related to its New
       Jersey sites and provides for the recovery of $130,000 annually. As of
       July 1996, the Company is also able to recover MGP expenditures over a
       rolling seven-year period through its NJBPU approved MGP Remediation
       Adjustment Clause. As a result, the Company has begun rate recovery of
       approximately $5.5 million of environmental costs incurred through
       June 30, 1998. Recovery of an additional $2.0 million in environmental
       costs incurred between July 1, 1998 and June 30, 1999 is currently
       pending NJBPU approval. Accordingly, the Company has recorded a
       regulatory asset of approximately $34 million as of June 30, 1999,
       reflecting the future recovery of environmental remediation
       liabilities related to New Jersey MGP sites.  The Company has also
       been successful in recovering a portion of MGP remediation costs
       incurred for the New Jersey sites from the Company's insurance
       carriers and continues to pursue additional recovery.  With respect to
       costs associated with the remaining MGP sites located outside New
       Jersey, the Company intends to pursue recovery from ratepayers, former
       owners and operators, and insurance carriers, although the Company is
       not able to express a belief as to whether any or all of these
       recovery efforts will be successful. The Company is working with the
       regulatory agencies to prudently manage its MGP costs so as to
       mitigate the impact of such costs on both ratepayers and shareholders.
  
       Other. The Company is involved in various claims and litigation
       incidental to its business. In the opinion of management, none of
       these claims and litigation will have a material adverse effect on the
       Company's results of operations or its financial condition.
  
                          NUI Corporation and Subsidiaries
                        Summary Consolidated Operating Data
  
                                           Three Months          Nine Months
                                              Ended                 Ended
                                             June 30               June 30
                                         1999      1998         1999      1998
       Operating Revenues (Dollars in
       thousands)
       Firm Sales:
          Residential                   $35,843   $34,553     $177,298  $174,977
          Commercial                     13,794    14,399       73,980    81,097
          Industrial                      1,578     4,253        7,401    15,751
       Interruptible Sales               11,644     9,983       34,153    36,023
       Unregulated Sales                 84,420    93,078      308,668   316,281
       Transportation Services            8,665     8,177       29,504    26,502
       Customer Service, Appliance
       Leasing and Other                  4,734     4,561       13,834    13,109
                                         ------    ------       ------    ------
                                       $160,678  $169,004     $644,838  $663,740
                                        =======   =======      =======   =======
       Gas Sold or Transported (MMcf)
       Firm Sales:
          Residential                     3,359     3,377       19,859    19,848
          Commercial                      1,668     1,828        9,636    10,686
          Industrial                        144     1,007        1,197     3,450
       Interruptible Sales                3,929     3,090       11,694     9,944
       Unregulated Sales                 43,179    38,836      150,123   120,695
       Transportation Services            7,331     6,716       23,760    23,702
                                        -------    ------      -------   -------
                                         59,610    54,854      216,269   188,325
                                        =======   =======      =======   =======
       Average  Utility Customers
       Served
       Firm:
          Residential                   345,556   339,146      344,384   338,848
          Commercial                     23,461    23,257       23,393    23,525
          Industrial                        222       276          256       278
       Interruptible                         50       105           58       111
       Transportation                     3,565     3,373        3,507     2,909
                                          -------   -------      -------   -------
                                        372,854   366,157      371,598   365,671
                                        =======   =======      =======   =======
       Degree Days in New Jersey
          Actual                            464       476        4,347     4,339
          Normal                            574       575        5,151     5,207
          Percentage variance from
           normal                            19%       17%          16%      17%
                                         warmer    warmer       warmer   warmer
  
       Employees (period end)                                      995    1,166
  
                          NUI Corporation and Subsidiaries
            Management's Discussion and Analysis of Financial Condition
                             and Results of Operations
  
       The following discussion and analysis refers to NUI Corporation and
       all of its operating divisions and subsidiaries (collectively referred
       to as the Company). The Company is a multi-state energy sales,
       services and distribution company. It's utility operations distribute
       natural gas and related services in six states along the eastern
       seaboard and comprise Elizabethtown Gas (New Jersey), City Gas Company
       of Florida, North Carolina Gas, Elkton Gas (Maryland), Valley Cities
       Gas (Pennsylvania) and Waverly Gas (New York). The Company also
       provides retail gas sales and related services through its NUI Energy,
       Inc. subsidiary (NUI Energy); wholesale energy brokerage and related
       services through its NUI Energy Brokers, Inc. subsidiary (NUI Energy
       Brokers); energy project development and consulting through its NUI
       Energy Solutions, Inc. subsidiary; environmental project development
       services through its NUI Environmental Group, Inc. subsidiary;
       customer account management and field operations systems and services
       through its Utility Business Services, Inc. subsidiary (UBS); and
       sales and marketing outsourcing through its 49% equity interest in TIC
       Enterprises, LLC (TIC).
  
       Results of Operations
  
       The results for the nine-month period ending June 30, 1999 as compared
       to the nine-month period ending June 30, 1998 reflect changes in the
       New Jersey tax law which resulted in variations in certain line items
       on the consolidated statement of income.  These changes had no effect
       on the quarter ended June 30, 1999 as compared to the quarter ended
       June 30, 1998.  Effective January 1, 1998, New Jersey Gross Receipts
       and Franchise Taxes (GRAFT) were replaced by a combination of a New
       Jersey Sales and Use Tax (Sales Tax), a New Jersey Corporate Business
       Tax (CBT) and a temporary Transitional Energy Facilities Assessment
       (TEFA). In prior periods, GRAFT was recorded as a single line item as
       a reduction of operating margins.  Effective January 1, 1998, TEFA is
       recorded in the energy taxes line item as a reduction of operating
       margins, CBT is recorded in the income taxes line item and Sales Tax
       is recorded as a reduction of operating revenues.  The legislation was
       designed to be net income neutral over a twelve-month period. However,
       for the nine-month period ending June 30, 1999 as compared to the
       nine-month period ended June 30, 1998 the tax changes had the effect
       of reducing operating revenues by approximately $3.4 million, reducing
       energy taxes by approximately $4.1 million and increasing income tax
       expense by approximately $1.2 million.
  
       Three-Month Periods Ended June 30, 1999 and 1998
  
       Net Income (Loss).  Net income for the three-month period ended June
       30, 1999 was $2.4 million, or $0.19 per share, as compared with a net
       loss of $0.4 million, or $0.03 per share, for the three-month period
       ended June 30, 1998. The increase in the current period was partially
       due to the effect of non-recurring items which contributed
       approximately $1.1 million, or $0.08 per share, to net income.  These
       items were primarily associated with the Company's early retirement
       programs (see Note 3 of the Notes to the Consolidated Financial
       Statements).  Absent these non-recurring items, net income would have
       been $1.4 million, or $0.11 per share.  The increase in recurring
       earnings was attributable to higher margins and other income,
       partially offset by higher operations and maintenance expenses, other
       taxes and depreciation and amortization.
  
       Operating Revenues and Operating Margins.  The Company's operating
       revenues include amounts billed for the cost of purchased gas pursuant
       to purchased gas adjustment clauses. Such clauses enable the Company
       to pass through to its customers, via periodic adjustments to
       customers' bills, increased or decreased costs incurred by the Company
       for purchased gas without affecting operating margins. Since the
       Company's utility operations do not earn a profit on the sale of the
       gas commodity, the Company's level of regulated operating revenues is
       not necessarily indicative of financial performance. The Company's
       operating revenues decreased by $8.3 million, or 5%, for the three-
       month period ended June 30, 1999 as compared with the three-month
       period ended June 30, 1998, principally due lower gas prices in the
       current period.
  
       The Company's operating margins increased by $4.9 million, or 14%, for
       the three-month period ended June 30, 1999 as compared with the three-
       month period ended June 30, 1998.  Margins from the Company's
       unregulated operations increased by approximately $3.7 million over
       the prior year period due to favorable results from the Company's
       wholesale trading and retail marketing businesses.  The Company's
       utility distribution margins increased approximately $1.2 million over
       the prior year period mainly due to customer growth and the effect of
       previously deferred post-retirement benefit expenses which are now
       being expensed and recovered through rates.
  
       Other Operating Expenses. Operations and maintenance expenses
       increased by approximately $2.0 million, or 8%, for the three-month
       period ended June 30, 1999 as compared with the three-month period
       ended June 30, 1998. The increase was primarily the result of
       previously deferred post-retirement benefit expenses which are being
       expensed and recovered through rates, higher levels of accrued
       commissions associated with the improved performance of the Company's
       unregulated trading and retail marketing businesses and a lower
       pension credit in the current period. These increases were partially
       offset by labor and benefits reductions resulting from the Company's
       reorganization efforts over the past year.
  
       The Company recognized approximately $1.8 million of non-recurring
       income in the third quarter of fiscal 1999 as a result of a $3.2
       million pension settlement gain realized on the 1999 New Jersey
       bargaining unit early retirement program, offset by other benefit
       expenses associated with these employees, as well as other items which
       were deemed to be separate from recurring earnings (see Note 3 of the
       Notes to the Consolidated Financial Statements).
  
       Depreciation and amortization expenses increased by $0.6 million
       primarily due to additional plant in service.
  
       Other taxes decreased by $0.4 million primarily as a result of lower
       payroll taxes due to a decrease in the number of employees.
  
       Income tax expense increased by approximately $2.0 million for the
       three-month period ended June 30, 1999 as compared to the three-month
       period ended June 30, 1998 as a result of higher pre-tax income.
  
       Other Income and (Expense), Net.  Other income and expense, net,
       increased by approximately $0.2 million for the three-month period
       ended June 30, 1999 as compared with the three-month period ended June
       30, 1998 due to improved results generated by TIC.
  
       Nine-Month Periods Ended June 30, 1999 and 1998
  
       Net Income.  Net income for the nine-month period ended June 30, 1999
       was $27.1 million, or $2.13 per share, as compared with net income of
       $22.1 million, or $1.76 per share, for the nine-month period ended
       June 30, 1998. The increase in the current period was partially due to
       the effect of non-recurring items which contributed $2.3 million, or
       $0.18 per share, to net income (see Note 3 of the Notes to the
       Consolidated Financial Statements).  Absent these non-recurring items,
       net income would have been $24.8 million, or $1.95 per share.  The
       increase in recurring earnings was attributable to higher margins,
       partially offset by higher operations and maintenance expenses,
       depreciation and amortization, and interest.
  
       Net income per share in the current period was also affected by the
       increased number of outstanding shares of common stock over the prior
       year period, issued through various stock plans.
  
       Operating Revenues and Operating Margins. The Company's operating
       revenues decreased by $18.9 million, or 3%, for the nine-month period
       ended June 30, 1999 as compared with the nine-month period ended
       June 30, 1998. The decrease was principally due to a decrease of
       approximately $12.0 million in the Company's utility operations
       primarily resulting from changes in the New Jersey tax law noted above
       and weather that was warmer in the current year in several of the
       Company's service territories.  In addition, there was a decrease of
       $7.6 million in the Company's unregulated operations primarily due to
       lower gas prices in the current period.
  
       The Company's operating margins increased by $11.9 million, or 8%, for
       the nine-month period ended June 30, 1999 as compared with the nine-
       month period ended June 30, 1998.  The increase was primarily
       attributable to an increase of $7.9 million in the Company's
       unregulated operations as a result of an increase in the Company's
       wholesale trading, energy portfolio management, and retail marketing
       businesses.  Utility distribution operations increased by $3.7 million
       as a result of customer growth, the effect of the changes in the New
       Jersey tax law described above, and an additional $1.9 million due to
       the recovery of previously deferred post-retirement benefit expenses
       through rates.  The Company's customer service operations contributed
       approximately $0.3 million to the increase in margins as a result of
       continued growth by UBS and the Company's appliance sales and leasing
       business.  As a result of weather normalization clauses, operating
       margins were approximately $5.4 million higher in the 1999 period than
       they would have been without such clauses. In the 1998 period,
       operating margins were approximately $5.6 million higher than they
       otherwise would have been without such clauses.
  
       Other Operating Expenses.  Operation and maintenance expenses
       increased by approximately $4.5 million, or 6%, for the nine-month
       period ended June 30, 1999 as compared with the nine-month period
       ended June 30, 1998. The increase was primarily the result of
       previously deferred post-retirement benefit expenses which are being
       expensed and recovered through rates, higher levels of accrued
       incentives associated with the improved performance of the Company's
       unregulated trading and retail marketing businesses and a lower
       pension credit in the current period.  These increases were partially
       offset by labor and benefit savings from the Company's reorganization
       efforts over the past year, as well as lower outside contract work.
  
       The Company recognized approximately $4.0 million of pre-tax non-
       recurring income during the nine-month period ended June 30, 1999.
       See Note 3 of the _Notes to the Consolidated Financial Statements_ for
       a description of these items.
  
       Depreciation and amortization expenses increased by $1.3 million
       primarily due to additional plant in service.
  
       Income tax expense increased by approximately $4.7 million due to
       higher pre-tax income, as well as the changes in the New Jersey tax
       law described above.
  
       Interest Expense. Interest expense increased by approximately $0.8
       million for the nine-month period ended June 30, 1999 as compared with
       the nine-month period ended June 30, 1998.  This increase was
       primarily due to interest on the Company's $40 million bond issuance
       in December 1998, as well as higher average short-term borrowings.
       These increases were partially offset by an increase in interest
       income on funds held by trustee as a result of the $40 million
       issuance noted above being put into trust for use on qualified
       expenditures (see "Financing Activities and Resources - Long-Term Debt
       and Funds for Construction Held by Trustee").
  
       Regulatory Matters
  
       On April 30, 1999, the Company made a filing with the New Jersey Board
       of Public Utilities (NJBPU) which will enable all customers to choose
       an alternative supplier.  This filing was a result of the "Electric
       Discount and Energy Competition Act" legislation which was signed into
       law in New Jersey on February 9, 1999.  The legislation has several
       provisions that affect gas utilities.  It provides all gas customers
       with the ability to choose an alternate natural gas supplier by
       December 31, 1999.  At the same time, the utility will continue to
       provide basic gas service through December 2002 when the NJBPU will
       decide if the gas supply function should be made competitive.  The
       NJBPU will also conduct proceedings to determine whether customers
       should be afforded the option of contracting with an alternative
       provider of billing, collection, meter reading and other services that
       may be deemed competitive by December 31, 2000.
  
       On July 7, 1999, the NJBPU approved a final stipulation on the
       Company's New Jersey's Purchased Gas Adjustment Clause filing in which
       the Company would continue to charge rates approved in an interim
       stipulation and approved by the NJBPU on March 3, 1999.  In addition,
       the stipulation provided that the Company would refund to customers
       $10 million of over-recovered gas costs.  Of this amount, $5.6 million
       would be applied against a Weather Normalization Clause (WNC) under-
       recovery and the balance will be credited to customer bills in late
       fiscal 1999.  The stipulation also allows the Company to defer the
       costs of its undepreciated propane-air plant, presently not in use,
       until its next base rate case.
  
       Financing Activities and Resources
  
       The Company had net cash provided by operating activities of $76.1
       million and $30.3 million for the nine-month periods ended June 30,
       1999 and 1998, respectively.  The increase in the nine-month period
       ended June 30, 1999 was primarily due to a significantly higher over-
       collection of gas costs through the Company's purchased gas adjustment
       clauses and a lower cost paid for the gas in the Company's inventory.
  
       Because the Company's business is highly seasonal, short-term debt is
       used to meet seasonal working capital requirements. The Company also
       borrows under its bank lines of credit to finance portions of its
       capital expenditures, pending refinancing through the issuance of
       equity or long-term indebtedness at a later date depending upon
       prevailing market conditions.
  
       Short-Term Debt. The weighted average daily amounts outstanding of
       notes payable to banks and the weighted average interest rates on
       those amounts were $70.9 million at 5.4% for the nine-month period
       ended June 30, 1999 and $63.4 million at 5.8% for the nine-month period
       ended June 30, 1998.  The weighted average daily amounts of notes
       payable to banks increased principally due to additional borrowings to
       finance portions of the Company's capital expenditures earlier in the
       year.  At June 30, 1999, the Company had outstanding notes payable to
       banks amounting to $42.1 million and available unused lines of credit
       amounting to $108.9 million.  Notes payable to banks decreased as of
       June 30, 1999, as compared to the balance outstanding at September 30,
       1998, due to seasonal borrowing requirements.
  
       Long-Term Debt and Funds for Construction Held by Trustee.  On
       December 8, 1998, the Company issued $40 million of tax-exempt Gas
       Facilities Revenue Bonds at an interest rate of 5.25%.  These bonds
       will mature in November 2033 and the proceeds will be used to finance
       a portion of the Company's capital expenditure program in New Jersey.
  
       The Company deposits in trust the unexpended portion of the net
       proceeds from its Gas Facilities Revenue Bonds until drawn upon for
       eligible expenditures. As of June 30, 1999, the total unexpended
       portions of all of the Company's Gas Facilities Revenue Bonds were $37
       million and are classified on the Company's consolidated balance
       sheet, including interest earned thereon, as funds for construction
       held by trustee.
  
       Common Stock. The Company periodically issues shares of common stock
       in connection with NUI Direct, the Company's dividend reinvestment
       plan, and other employee benefit plans. The proceeds from such
       issuances amounted to approximately $0.7 million and $3.9 million for
       the nine-month periods ended June 30, 1999 and 1998, respectively, and
       were used primarily to reduce outstanding short-term debt. The
       decrease in proceeds received in the nine-month period ended June 30,
       1999, as compared to the nine-month period ended June 30, 1998,
       reflects that several of these plans commenced purchasing shares on
       the open market during 1998 to fulfill the plans' requirements.  Under
       the terms of these plans, the Company may periodically change the
       method of purchasing shares from open market purchases to purchases
       directly from the Company, or vice versa.
  
       Dividends.  The Company's long-term debt agreements include, among
       other things, restrictions as to the payment of cash dividends.  Under
       the most restrictive of these provisions, the Company is permitted to
       pay approximately $56.6 million of cash dividends at June 30, 1999.
  
       Capital Expenditures and Commitments
  
       Capital expenditures, which consist primarily of expenditures to
       expand and upgrade the Company's gas distribution systems, were $26.2
       million for the nine-month period ended June 30, 1999 as compared with
       $43.8 million for the nine-month period ended June 30, 1998. Capital
       expenditures are expected to be approximately $52.0 million for all of
       fiscal 1999, as compared with a total of $60.9 million in fiscal 1998.
  
       The Company owns or previously owned six former manufactured gas plant
       (MGP) sites in the state of New Jersey and ten former MGP sites in the
       states of North Carolina, South Carolina, Pennsylvania, New York and
       Maryland.  Based on the Company's most recent assessment, the Company
       has recorded a total reserve for environmental investigation and
       remediation costs of approximately $34 million, which the Company
       expects it will expend in the next twenty years to remediate the
       Company's MGP sites. Of this reserve, approximately $30 million
       relates to New Jersey MGP sites and approximately $4 million relates
       to the MGP sites located outside New Jersey. However, the Company
       believes that it is possible that costs associated with conducting
       investigative activities and implementing remedial actions, if
       necessary, with respect to all of its MGP sites may exceed this
       reserve by an amount that could range up to an additional $24 million
       and be incurred during a future period of time that may range up to 50
       years. Of this $24 million in possible additional expenditures,
       approximately $12 million relates to the New Jersey sites and
       approximately $12 million relates to the remaining MGP sites. As
       compared with the $34 million reserve currently recorded on the
       Company's books as discussed above, the Company believes that it is
       less likely that this additional $24 million will be incurred and
       therefore has not recorded it on its books. The Company believes that
       all costs associated with the New Jersey MGP sites will be recoverable
       in rates or from insurance carriers. In New Jersey, the Company is
       currently recovering environmental costs on an annual basis through
       base rates and over a rolling seven-year period through its MGP
       Remediation Adjustment Clause. As a result, the Company has begun rate
       recovery of approximately $5.5 million of environmental costs incurred
       through June 30, 1998. Recovery of an additional $2.0 million in
       environmental costs incurred between July 1, 1998 and June 30, 1999 is
       currently pending NJBPU approval. With respect to costs which may be
       associated with the MGP sites located outside the state of New Jersey,
       the Company intends to pursue recovery from ratepayers, former owners
       and operators of the sites and from insurance carriers. However, the
       Company is not able, at this time, to express a belief as to whether
       any or all of these recovery efforts will ultimately be successful.
  
       Certain of the Company's long-term contracts for the supply, storage
       and delivery of natural gas include fixed charges that amount to
       approximately $68.9 million annually. The Company currently recovers,
       and expects to continue to recover, such fixed charges through its
       purchased gas adjustment clauses. The Company also is committed to
       purchase, at market-related prices, minimum quantities of gas that, in
       the aggregate, are approximately 3.4 billion cubic feet per year or to
       pay certain costs in the event the minimum quantities are not taken.
  
       The Company expects that minimum demand on its systems for the
       duration of these contracts will continue to exceed these minimum
       purchase obligations.
  
       The Company is scheduled to repay $20 million of Medium-Term Notes in
       August 2002.
  
       Market Risk Exposure
  
       The Company's wholesale trading subsidiary, NUI Energy Brokers, uses
       derivatives for multiple purposes:  1) to hedge price commitments and
       minimize the risk of fluctuating gas prices, 2) to take advantage of
       market information and opportunities in the marketplace, and 3) to
       fulfill its trading strategies and, therefore, ensure favorable prices
       and margins.  These derivative instruments include forwards, futures,
       options, and swaps.
  
       The risk associated with uncovered derivative positions is closely
       monitored on a daily basis, and controlled in accordance with NUI
       Energy Brokers' Risk Management Policy.  This policy has been approved
       by the Company's Board of Directors and dictates policies and
       procedures for all trading activities.  The policy defines both value-
       at-risk (VaR) and loss limits, and all traders are required to sign
       and follow this policy.  At the end of each day, all trading positions
       are marked to market and a VaR is calculated.  This information, as
       well as the status of all limits, is disseminated to senior management
       daily.
  
       NUI Energy Brokers utilizes the variance/covariance VaR methodology.
       Using a 95% confidence interval and a one day time horizon, as of
       June 30, 1999, NUI Energy Brokers' VaR was $99,000.
  
       Year 2000
  
       Many existing computer programs and systems with embedded digital
       microcontrollers use only two digits to identify a year in the date
       field, or were not designed in other ways to provide for the upcoming
       change in the century. If not corrected, many systems that use digital
       technology could fail or create errors that may result in a
       significant adverse impact on NUI's ability to provide service, its
       regulatory relations and financial condition.
  
       NUI has developed a Risk Mitigation Plan (Plan) as an internal guide
       to its systems readiness program. The purpose of the program is to
       mitigate the risks associated with Year 2000 technology issues. The
       Plan includes the following phases: (i) development of a detailed
       inventory of all information technology (IT) and non-IT systems that
       incorporate any technology component including embedded
       microprocessors and microcontrollers (Inventory Phase); (ii)
       assessment of those systems for Year 2000 vulnerability (Assessment
       Phase); (iii) remediation of the affected systems (Remediation Phase);
       and (iv) testing of sub-systems, hardware, operating and application
       software running as integrated systems (Testing Phase). In addition,
       the Plan requires (v) an analysis of the risk of system failure and
       the consequences of failure in order to focus testing resources and
       prioritization of resources under contingency plans (Risk Analysis).
       The Inventory, Assessment and the Risk Analysis Phases include
       material direct third-party suppliers and vendors. The final phase is
       (vi) contingency planning, which is described below.
  
       Under the Plan, NUI has established an executive level Year 2000
       Committee (Committee) to monitor the Company's Year 2000 progress.
       This Committee is chaired by NUI's Chief Operating Officer and
       includes the senior managers of all NUI's business units, the Chief
       Administrative Officer, General Counsel and Secretary and the Vice
       President of Corporate Development and Treasurer. The Committee
       receives monthly reports from a project coordinator and team. Members
       of the team are responsible for NUI gas distribution system controls,
       computer hardware, operating and communication systems, and for
       critical suppliers. The Chairman of the Committee reports to NUI's
       Board of Directors on Year 2000 issues on a periodic basis.
  
       All major billing, field service, networked information technology and
       gas distribution control and monitoring systems have been inventoried.
       Detailed inventorying of known material systems with embedded
       microcontrollers comprising environmental and support systems, such as
       telephone systems, heating and air conditioning, and backup electric
       generating systems, has been substantially completed.
  
       The entire Assessment Phase, including the assessment of financial and
       field service systems and natural gas distribution control and
       monitoring systems, has been substantially completed at this time.
  
       Other than the hand-held meter reading units, which are currently in
       the process of being replaced, all known hardware and operating
       systems that handle billing and field service, and which required
       remediation, have been replaced. Replacement of NUI's billing system
       in North Carolina is complete.  Replacement of NUI's billing system in
       Pennsylvania is in progress and is currently scheduled for completion
       in August 1999.  NUI's financial systems have been upgraded to a new
       version of third-party supplied software. Certain telephone systems
       are in the process of being remediated and are currently scheduled for
       substantial completion by the end of August 1999.  Any other
       remediation will be reviewed when the need arises.
  
       Individual programs are generally being tested on a stand-alone basis
       as they are remediated.  However, suites of programs must be tested as
       entire systems, running on remediated hardware and operating systems.
       Integrated testing for natural gas distribution and control and
       monitoring systems, and billing and field service software has been
       substantially completed.  Integrated testing of other systems is
       scheduled for completion by the end of September 1999.
  
       The Risk Analysis Phase involved NUI assigning priority ratings to
       each of its major systems, based on both the risk of the systems'
       failure and the potential consequences to the underlying business.
       This was without taking into account alternatives available under
       contingency planning.  Systems supporting business processes which
       might affect human safety were assigned the highest rating.
  
       NUI's systems and customers are vulnerable to systems operated by
       third-parties that may not be Year 2000 ready. NUI has identified its
       critical direct suppliers and vendors. These include, at the very
       highest level of importance, interstate pipeline suppliers,
       telecommunications carriers, and electric suppliers. Interstate
       pipeline suppliers must appropriately schedule and control gas
       supplies to NUI's own distribution systems. Telecommunications
       carriers' digital circuits are used to control and monitor NUI's gas
       distribution system with voice circuits as emergency backup and for
       customers' reporting of emergencies. Electricity supplies are critical
       to NUI's customers for natural gas heating equipment and industrial
       process control.
  
       NUI is assessing the Year 2000 readiness of its critical suppliers.
       Assessment of third party systems is substantially complete.  NUI will
       continue to work with these suppliers through 1999 to gain greater
       assurance that appropriate steps are being taken to ensure security of
       supply and the continued accurate exchange of critical data. Any
       remediation and contingency planning will be reviewed and determined
       based on the results of such third-party assessments.
  
       The total estimated costs of assessing, remediating and testing NUI's
       systems for Year 2000 compliance is approximately $3.5 million, of
       which approximately $2.8 million has been incurred through June 30,
       1999.  Approximately 50% of these costs will relate to capital
       projects.  The Company has, and will continue, to fund these costs
       from the operations of the Company. These estimated costs do not
       include any third-party remediation that may be required, or any
       resulting contingency planning.
  
       Customers are dependent on NUI's reliable and secure gas supply,
       emergency response and billing services. Each of these services relies
       on the Company's computer systems.  A failure in these systems could
       materially interrupt the normal flow of these services and
       significantly impact human safety and physical property and have a
       significant adverse financial impact on NUI, its customers and
       suppliers. NUI and third-party critical suppliers are also
       interdependent, and failure of third-party suppliers to be Year 2000
       ready could significantly impact the Company's ability to serve its
       customers.  Third-party systems are being reviewed however NUI has not
       ascertained a reasonably likely worst case scenario.  Due to the
       general uncertainty of the Year 2000 problem, resulting in part from
       the uncertainty of the Year 2000 readiness of third-parties, the
       Company is unable to determine at this time whether the consequences
       of Year 2000 failures will have a material impact on the Company's
       results of operations or financial condition. The Plan is expected to
       significantly reduce the Company's level of uncertainty about the Year
       2000 problem and the readiness of third-parties. The Company believes
       that due to its Plan, the likelihood of major consequences should be
       reduced.
  
       Contingency plans are being developed as necessary for the Company's
       own systems and its third-party relationships, in response to its
       assessments, remediation and testing activities. Contingency planning
       is substantially complete.
  
       Forward-Looking Statements
  
       This document contains forward-looking statements within the meaning
       of Section 21E of the Securities Exchange Act of 1934, as amended.
       The Company cautions that, while it believes such statements to be
       reasonable and are made in good faith, such forward-looking statements
       almost always vary from actual results, and the differences between
       assumptions made in making such statements and actual results can be
       material, depending upon the circumstances.  Factors, which may make
       the actual results differ from anticipated results include, but are
       not limited to, economic conditions; unforeseen competition; weather
       conditions; fluctuations in the price of natural gas and other forms
       of energy; the outcome of certain assumptions made in regard to Year
       2000 issues; and other uncertainties, all of which are difficult to
       predict and many of which are beyond the control of the Company.
       Accordingly, investors should not rely upon these forward-looking
       statements in making investment decisions.
  
                          PART II - OTHER INFORMATION
  
       Item 6.   Exhibits and Reports on Form 8-K
  
       (a)  Exhibits.
  
       Exhibit
         No.          Description of Exhibit                  Reference
  
         27           Financial Data Schedule              Filed herewith
  
       (b)  Reports on Form 8-K
  
            None
  
                                  SIGNATURES
  
       Pursuant to the requirements of the Securities Exchange Act of 1934,
       the Registrant has duly caused this report to be signed on its behalf
       by the undersigned thereunto duly authorized.
  
                                            NUI CORPORATION
  
                                            JOHN KEAN, JR.
       August 13, 1999                      President and Chief
                                            Executive Officer
  
                                            A. MARK ABRAMOVIC
       August 13, 1999                      Senior Vice President and
                                            Chief Financial Officer