August 18, 2011 Shareholder Presentation CONSOL Energy Inc. CONSOL Energy / Noble Energy Marcellus Joint Venture
Cautionary Language Forward looking statements This presentation contains statements, estimates and projections which are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Such statements include estimates of reserves and resources, projections and estimates concerning the timing and rates of return of future projects, and our future production, revenues, income and capital spending. These forward- looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements, estimates and projections. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of future actual results. Factors that could cause future actual results to differ from the forward-looking statements are described in detail under the captions "Forward Looking Statements" and "Risk Factors" in CONSOL Energy Inc. � s annual report on Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission (SEC), as updated by any subsequent Form 10-Qs. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements unless required by the securities laws, and we caution you not to rely on them unduly. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible oil and gas reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations. We may use certain terms in this press release, such as EUR (estimated ultimate recovery), unproved reserves and total resource potential, that the SEC's rules strictly prohibit us from including in filings with the SEC. These measures are by their nature more speculative than estimates of reserves prepared in accordance with SEC definitions and guidelines and accordingly are less certain. We also note that the SEC strictly prohibits us from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category. Except for proved reserve data, the information this presentation is based on a summary review of the title to the gas rights we hold, as well as a summary review of the title to the coal from which many of our coalbed methane rights derive. As is customary in the gas industry, prior to the commencement of gas drilling operations on our properties, we conduct a thorough title examination and perform curative work with respect to significant defects. We are typically responsible for curing any title defects at our expense. This curative work may include the acquisition of additional property rights in order to perfect our ownership for development and production of the gas estate. This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CONSOL Energy Inc. 2
CONSOL Energy & Noble Energy JV CNX to sell an interest in Marcellus Shale asset to Noble Energy Total deal valuation of $3.4 billion � CNX selling 50% interest in Marcellus Shale position (663,350 acres in PA & WV) � for $3.20 billion ($9,650 / net acre) Cash: $1.07 Billion paid in 3 annual installments beginning at closing � Carry: $2.13 Billion covering 33% of CNX � s share of drilling and completion costs � Annual cap of $400 million � Carry is suspended if gas prices are less than $4.00 / MMBtu for 3 consecutive months � Carry resumes when gas prices are above $4.00 / MMBtu for 3 consecutive months � CNX Selling 50% interest in existing Marcellus proved developed producing (PDP) � reserves for $160 million � $1.80 / mcf for 89 BCF of PDP Reserves CNX Selling an interest in the associated gathering systems for $59 million � 3
CONSOL Energy & Noble Energy JV Transaction Rationale Marks to market entire Marcellus position at $9,650 / acre � Validates legacy CNX Gas and Dominion asset base � Partners with a highly respected, world class E&P partner � Shared values and cultural alignment � Shared belief in developing acreage to maximize long term value � Accelerates monetization of asset base and economic returns � Significant increase in rig fleet and drilling activity � Creates significant free cash flow � 4
CONSOL Energy & Noble Energy JV Marcellus Shale JV Acreage CNX/NBL Operating Areas � CONSOL � Dry Gas Areas � ~ 570K acres � ~ 3,700 horizontal locations � Noble Energy � Wet Gas Areas � ~ 95K acres � ~ 630 horizontal locations � High net revenue interest (88%) � Over 85% of acres held-by production � 859 Bcf of total Marcellus proved reserves � (PDPs & PUDs) � 5
CONSOL Energy & Noble Energy JV Development Plan Rig schedule ramps up to 16 by 2015 � Rig Schedule 20 16 16 15 Accelerated development of acreage � 12 12 8 8 4 4 Substantial cash generation throughout plan � - 2011 2012 2013 2014 2015 Net Proceeds ($MM) Gross Wells Drilled Includes cash and carry 400 600 354 549 544 318 482 500 300 400 227 200 270 300 243 140 200 100 100 35 - - 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 6
CONSOL Energy & Noble Energy JV CONSOL Retains Growth Targets CONSOL is maintaining our 2015 Production Goal of 350 Bcf � The original goal was established at this level post Dominion acquisition � 50% sale of current and future Marcellus production offset by � Production benefits from: � � Accelerated drilling rates Reduced drilling times � Improvements in types curves � � Completion technology 7
CONSOL Energy & Noble Energy JV Tremendous Value Creation in 15 Months In 2010, CNX paid $1.880 billion for Dominion � s Marcellus acres, or $3,827 per acre � Over the past 15 months, CNX has largely de-risked these acres � As the acreage continues to appreciate, we still own half � Dominion Comparison Marcellus Current June 2010 Change Acres 491,292 491,292 - Value ($B) 4,741 1,880 2,861 $ / Acre $9,650 $3,827 $5,823 8
CONSOL Energy & Noble Energy JV August 18, 2011 Shareholder Presentation 9
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