First Quarter 2014 Earnings Presentation April 29, 2014 J. Brett - PowerPoint PPT Presentation

First Quarter 2014 Earnings Presentation April 29, 2014 J. Brett Harvey, Chairman and CEO Nicholas J. DeIuliis, President David Khani, CFO James C. Grech, Chief Commercial Officer Tim Dugan, COO – E&P Division

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). 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 are described in detail under (i) the captions "Forward Looking Statements" in our earnings press release issued today and (ii) "Risk Factors" in CONSOL Energy Inc. ’s annual report on Form 10-K for the year ended December 31, 2013 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, 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. 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 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. We may refer to the possibility of sponsoring a Master Limited Partnership (MLP) in this presentation. A registration statement relating to the securities of the MLP that would be sold in any offering has not been filed with the Securities and Exchange Commission or become effective. This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CONSOL Energy Inc. This presentation is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933. 2

CONSOL Energy’s Business Strategy  Grow natural gas production ─ 30% projected production increase in 2014 ─ Develop liquids profile within our footprint ─ High-grade acreage position ─ Experienced team is in place  Aggressively manage coal margins and maintenance capital with retained mines ─ New BMX mine now operational ─ Coal capital expenditure shifting to maintenance of production mode  No transformational acquisitions ─ CONSOL is focusing on organic growth  Disciplined investment approach ─ Continue to examine opportunities to high-grade portfolio of assets ─ Includes non-core and infrastructure assets Now that the BMX Mine is completed, nearly all of CONSOL Energy’s production growth will occur in natural gas 3

First Quarter 2014 Results Summary  Pre-tax income for the first quarter was $130 million - Net income from continuing operations was $122 million resulting from solid E&P and coal production, higher gas prices, and disciplined cost controls Income from discontinued operations, net of tax, was ($6) million - E&P Division’s first quarter net income was $47 million  Higher margin Marcellus Shale production increased 94% in the first quarter - - All-in unit margins increased by 145% to $1.89 per Mcfe  Gas Production re-iterates 30% growth through 2016 Q1 2014 Summary Q-to-Q Q-to-Q 1Q2014 1Q2013 1Q2014 4Q2013 ($ in millions, except per share data) Change Change Net Income (1) $116 ($2) $118 $116 $738 ($622) Earnings per Diluted Share $0.50 ($0.01) $0.51 $0.50 $3.20 ($2.70) Revenue and Other Income $969 $843 $126 $969 $825 $144 Cash Flow from Operations $336 $268 $68 $336 $70 $266 EBITDA (2) $310 $154 $156 $310 $193 $117 (1) Q4 2013 net income includes $591 million from discontinued operations, net of tax, and an income tax benefit of $131 million. (2) EBITDA is a non-GAAP financial measure. Refer to appendix for reconciliation. 4

Q4 2013 to Q1 2014 Net Income Reconciliation 1,000 $4 ($6) $42 ($139) $74 900 $738 ($ in millions) 800 ($597) 700 600 500 400 300 $116 200 100 - Q4 2013 Net E&P Coal Division Interest Other Income Discontinued Q1 2014 Net Income Division Expense Corporate Taxes Ops, net of Income Expenses tax Earnings Summary Q-to-Q Change ($ in millions) 1Q2014 4Q2013 Gas Division 80 6 74 Coal Division $107 $65 $42 Other 1 1 - Interest Expense (51) (55) 4 Other Corporate Expense (7) (1) (6) Income Taxes (8) 131 (139) Discontinued Operations, net of tax (6) 591 (597) Net Income Attributable to CONSOL Energy Shareholders $116 $738 ($622) 5

Gas Division Summary Q-to-Q Q-to-Q Gas Division 1Q2014 1Q2013 Change 1Q2014 4Q2013 Change Average Sales Price ($ / Mcfe) $5.52 $4.30 $1.22 $5.52 $4.26 $1.26 Average Costs ($ / Mcfe) $3.63 $3.53 $0.10 $3.63 $3.55 $0.08 Sales Volumes (Bcfe) 48.4 39.2 9.2 48.4 48.5 (0.1) Sales Volumes (Bcfe) by Category Marcellus 20.7 10.7 10.0 20.7 19.4 1.3 CBM 19.8 20.7 (0.9) 19.8 20.3 (0.5) Shallow Oil and Gas 5.8 7.1 (1.3) 5.8 7.3 (1.5) Other 2.1 0.7 1.4 2.1 1.5 0.6  Impact of gas hedging for Q1 2014 was ($0.34)/Mcf compared to $0.62/Mcf from the year-earlier quarter 2014E Production by Category  Marcellus Shale production now largest part of mix 7%  2014E Marcellus Shale production growth 11% ~87% compared to previous year “Other” category includes Chattanooga Shale  48% in Tennessee and the Utica Shale in Ohio 35% Marcellus CBM SOG Other 6

Gas Division Production Results and Forecast Gas and Liquids Production (Bcfe)  CONSOL is rapidly growing its natural gas production ─ Total 2013 natural gas production: 172.4 Bcfe ─ Q1 2014 natural gas production: 48.4 Bcfe Total 2014 natural gas production guidance: 215 – 235 Bcfe (30% growth) ─ ─ Total 2015 and 2016 natural gas production guidance: 30% per year Gas Production 400 +30% +30% 300 215.0 - 235.0 Bcfe 200 153.5 156.3 172.4 127.9 94.4 100 76.6 58.2 56.1 48.4 48.6 44.5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E Source: Company filings. Note: Acquired ~23 Bcfe of Conventional gas production from Dominion E&P in 2010. Divested ~11 Bcfe through the Marcellus JV with Noble Energy and the Antero 7 Royalty Interest transactions in 2011.

Coal Division Summary Q-to-Q Q-to-Q 1Q2014 1Q2013 1Q2014 4Q2013 Coal Division Change Change Average Sales Price ($ / ton) $66.20 $72.18 ($5.98) $66.20 $66.85 ($0.65) Average Costs ($ / ton) $45.15 $51.14 ($5.99) $45.15 $50.05 ($4.90) Coal Production (millions of tons) 8.1 7.4 0.7 8.1 7.1 1.0 Sales Volumes (millions of tons) 8.0 7.5 0.5 8.0 7.2 0.8 Sales Per Ton ($ / ton) Low-Vol $76.80 $102.69 ($25.89) $76.80 $81.84 ($5.04) High-Vol $56.35 $69.10 ($12.75) $56.35 $58.88 ($2.53) Thermal $65.17 $64.47 $0.70 $65.17 $64.66 $0.51 8

Hedge Program and Integrated Infrastructure 2014 Competitor and CNX Hedge Positions  Actively Monitored Hedge Program: Swaps Collars Priced Coal 100% 86% For 2014: 25.7 Bcf added in the first quarter at - 87% approximately $5.32 per Mcf 83% 75% 80% 74% 7% - Basis hedges represent 34% of 2014 total 58% 60%  Firm Transportation and Firm Sales: 6% 70% Currently “long” FT and in discussions to add - 40% more to meet our production ramp 50% 64% 20%  Processing Position: Marcellus / Utica: 16% 87% 19% 52% 25% 67% - Future processing capacity and expansion rights - will allow for significant growth of liquids-rich Peer 1 Peer 2 Peer 3 Peer 4 CNX Gas CNX Total Marcellus/Utica production 9