Company Presentation Q1 2016 Cautionary Language This presentation - PowerPoint PPT Presentation

Company Presentation Q1 2016

Cautionary Language 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). Statements that are not historical, are forward-looking, and include our operational and strategic plans; estimates of coal and gas reserves and resources; the projected timing and rates of return of future investments; and projections and estimates of 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, plans, 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 materially from the forward-looking statements include risks, contingencies and uncertainties that relate to, among other matters, the following: we may not receive the prices we expect to receive for our natural gas and coal; we may not obtain on a timely basis the permits required for drilling and mining; we may not accurately estimate our economically recoverable gas, oil and condensate; we may encounter unexpected operational issues when we drill and mine, including equipment failures, geological conditions and higher than expected costs for equipment, supplies, services and labor; we may not achieve the efficiencies we expect to realize in our drilling and completion operations, and as a result, our projected cost savings may not be fully realized; our joint venture partners, who operate assets in which we have a significant interest, may not perform as we expect; we may not be able to sell non-core assets on acceptable terms; we may be unable to incur indebtedness on reasonable terms; with respect to the sale of the Buchanan and Amonate mines and other coal assets to Coronado IV LLC - disruption to our business, including customer, employee and supplier relationships resulting from this transaction, and the impact of the transaction on our future operating results; and other factors, many of which are beyond our control. Additional factors 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, 2015 filed with the Securities and Exchange Commission (SEC), as updated by any subsequent quarterly reports on 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, 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 presentation, 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. We caution you that the SEC views such estimates as inherently unreliable and these estimates may be misleading to investors unless the investor is an expert in the natural gas industry. 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 included in this presentation is based on a summary review of the title to the gas rights we hold. 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. As a result of our title review or otherwise, we may be required to acquire property rights from third parties at our expense in order to effectively drill and produce the oil and gas rights we control and third parties may participate in the wells we drill, thereby reducing our working interest in those wells. This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CONSOL Energy Inc. or CNX Coal Resources LP. 2

CONSOL Energy: Execution of Our Game Plan In 2013 – CONSOL set out to shift focus to being a pure play E&P company  - Sold 5 West Virginia mines Dramatically improved our E&P metrics - Lowered capital intensity - Lowered unit costs - Hired a new head of the E&P Division - - Improved management of the rising risk in volatility with higher gas production Refinanced debt and improved the balance sheet - Meaningfully reduced administrative expenses across the company - The results as of year-end 2015 – creating free cash flow for 2016  - E&P production increased faster than peers from 2013 through 2015 E&P EBITDA now surpassing Coal Division - - Unit costs have declined 21%, faster than peers Capital intensity cut in half - Gas and Liquids hedging meaningfully in place - - Created publicly traded entities to help separate Coal and E&P Divisions Refinanced $5 billion of debt and removed approximately $3 billion of legacy liabilities - 3

CONSOL Energy: Company Overview Transformative Journey Towards a Pure Play E&P Company Late 2013 – transaction with Murray Energy Corp. that transitioned half of coal  assets and related assets April 19, 2014 – CONSOL Energy 150th Anniversary  June 12, 2014 – Analyst Day to roll out growing Appalachian E&P Division with  best in class coal assets September 25, 2014 – IPO of CONE Midstream Partners LP (NYSE: CNNX)  July 1, 2015 – IPO of CNX Coal Resources (NYSE: CNXC)  July 28, 2015 – Announced first PA Dry Utica well (Gaut 4I) result in  Westmoreland County March 31, 2016 – Sold Buchanan Mine and associated met reserves  Coal-E&P Revenue Split, 2014 Coal-E&P Revenue Split, 2015, excl. Buchanan Coal-E&P Revenue Split, 2012 E&P Revenues E&P Revenues E&P Revenues Coal Revenues Coal Revenues Coal Revenues Transforming this 152 year old coal company into a powerful E&P company 4

E&P Division 5

E&P Operations E&P Division: Q1 2016 Operations Summary Marcellus Shale Quarterly Summary Utica Shale Quarterly Summary Avg. TIL Turned Turned Avg. TIL Sub- Horizontal Lateral Sub- Horizontal Rigs Drilled Completed In Line Counties Rigs Drilled Completed In Line Lateral Counties Regions Length Regions (TIL) (TIL) Length (ft) (ft) Greene, Core Wet ---- ---- ---- 4 9,220 Noble, OH Southwest ---- ---- 11 17 5,839 Washington, Surrounding 8,579 Harrison, PA ---- 6 4 5 PA Core Wet Belmont, OH Indiana, Monroe, OH; Central PA ---- ---- ---- ---- ---- Westmoreland, Marshall, WV Dry Utica ---- ---- ---- 1* 5,964 PA Westmoreland, Barbour, Greene, PA Northern ---- ---- ---- ---- ---- Doddridge, WV Dry Total ---- 6 4 10 8,574 Lewis, WV Ohio ---- ---- ---- ---- ---- Monroe, OH *Dry Utica TIL is GH9A Greene, North Wet Washington,  Production update ---- ---- ---- 8 10,763 Gas PA; Marshall, WV ─ Operational Improvement: Utilized permanent production Doddridge, South Wet equipment for flowback operations – respective capital savings of ---- ---- ---- ---- ---- Tyler, Ritchie, Gas WV $86k/well in the Marcellus and $112k/well in the Utica. Total ---- ---- 11 25 7,415 ─ Lease Operation Strategy: Implementation of company well  Completion update tenders instead of contractors and rebidding contracts will yield $2.7 million in annual savings against LOE ─ Quality Focus: Completed 10 well pad 35% faster and 10% ─ Production Optimization: Workovers, tubing installs, artificial lift, cheaper than Q4 2015. and compression opportunities. ─ Water Chemistry Success: 2 consecutive quarters fracturing ─ Production Highlights: with 100% reused water. Decreasing operating costs while SWITZ-6 pad: Yielded a 30-day average rate of 59.4 MMcf/d fostering environmental stewardship.  with an impressive 21 psi/day managed pressure decline ─ Forward Approach: Continued to make significant strides toward plugless completions and eliminating post frac  GAUT-4I: Cumulative production ending in Q1 2016 has intervention. Providing efficiency, decreased cost, and less totaled 2.92 BCF while averaging an 18 psi/day pressure risk. decline in Q1 only Marcellus: Q1 TIL’s are at, or outperforming, type curves  6