CONSOL Energy Reports Net Loss of $11 million, or ($0.05) per Diluted Share

 CONSOL Energy Reports Net Loss of $11 million, or ($0.05) per Diluted Share

PR Newswire

PITTSBURGH, Oct. 25, 2012

PITTSBURGH, Oct. 25, 2012 /PRNewswire/ --CONSOL Energy Inc. (NYSE: CNX), the
leading diversified fuel producer in the Eastern United States, reported a net
loss for the quarter ended September 30, 2012 of $11 million, or ($0.05) per
diluted share, compared to net income of $167 million, or $0.73 per diluted
share from the year-earlier quarter. Adjusted EBITDA^1, a non-GAAP financial
measure, was $210 million for the quarter ended September 30, 2012, compared
to $441 million in the year-earlier quarter.

(Logo: http://photos.prnewswire.com/prnh/20120416/NE87957LOGO)

The loss was due to a series of planned and unplanned idlings, as the company
scaled back production to meet a weaker market, which will also have a
residual impact during the fourth quarter. The one unplanned item was the
previously announced collapse of two newly-installed conveyor belts that move
coal from the Enlow Fork and Bailey mines to the Bailey Preparation Plant, all
in Southwestern Pa. This incident caused a total of four longwalls to be idled
for approximately three weeks, at which point one rebuilt conveyor belt was
re-started. Production from these mines was at approximately 60% of normal for
most of the remainder of the third quarter. The company's third quarter net
income would have been an estimated $53 million higher, had the conveyor belt
incident not occurred. This impact is before the receipt of any insurance
proceeds and any other proceeds under the indemnity provisions of the
construction contract. Much lower sales from the company's flagship low-vol
Buchanan Mine also reduced third quarter profitability, as the company chose
not to sell into a market that was experiencing an inventory de-stocking.

"CONSOL is serious about maintaining market discipline," commented J. Brett
Harvey, chairman and CEO. "Our premium low-vol coal is a scarce resource. When
temporary market imbalances occur as they did this quarter with our overseas
customers, we choose to idle our mine rather than force tons into the market.
Our actions, as well as the actions of others, should enable the metallurgical
coal market to come into balance faster. We have a strong balance sheet with a
high level of liquidity, which allows us to exercise production discipline."

The lower level of production impaired costs per ton. In the Coal Division
across all of its tons, CONSOL Energy had 2012 third quarter fully-loaded
costs of $55.84 per ton. This was an increase of $1.46 per ton from the
year-earlier quarter. The company expects costs per ton to decrease as its
mines return to more normal schedules.

Cash flow from operations in the quarter was $162 million, as compared to $457
million in the year-earlier quarter. CONSOL continues to invest in its
future, in both coal and gas, by investing $438 million in the 2012 third
quarter on capital projects. Some of these capital projects, such as the new
BMX Mine, are a multi-year investment. Our plan is to complete the BMX Mine in
early 2014 and then reassess the viability of additional coal expansion
projects. CONSOL does not expect to invest in new expansion projects until
coal markets improve.

After investing a projected $1.5 billion in coal and gas projects this year,
the company expects to end 2012 with no cash on its balance sheet and nothing
drawn against its revolving credit facilities.

"The return of Bailey and Enlow Fork mines to normal production at the
beginning of the fourth quarter will certainly be helpful for CONSOL's
earnings going forward," continued Mr. Harvey. "Strengthening spot gas prices
and a projected sequential increase in both coal and gas production will also
be helpful. The steel market, though, remains challenging for all of the
categories of our metallurgical coals."

The Buchanan Mine is expected to restart the week of November 5 with a
five-day work week schedule, while Amonate is likely to remain idled for the
remainder of 2012.



^1The term "Adjusted EBITDA" is a non-GAAP financial measure, which is defined
and reconciled to the GAAP net income below, under the caption "Non-GAAP
Financial Measures."



Coal Division Results:

COAL DIVISION RESULTS BY PRODUCT CATEGORY - Quarter-To-Quarter Comparison
                   Low-Vol     Low-Vol     High-Vol   High-Vol   Thermal     Thermal
                   Quarter     Quarter     Quarter    Quarter    Quarter     Quarter
                   Ended       Ended       Ended      Ended      Ended       Ended
                   September   September   September  September  September   September
                                           30,        30,
                   30,         30,                               30,         30,
                   2012        2011        2012       2011       2012        2011
Beginning
Inventory          0.4         0.2         —          —          2.0         1.6
(millions of tons)
Coal Production    0.8         1.4         0.7        1.0        10.1        12.1
(millions of tons)
Ending Inventory   0.4         0.1         —          —          1.3         1.6
(millions of tons)
Sales - Company
Produced (millions 0.8         1.5         0.7        1.0        10.7        12.2
of tons)
Sales Per Ton      $  135.66   $  207.21   $   67.76  $   82.21  $  62.11    $  60.18
Beginning
Inventory Cost Per $  69.84    $  66.09    $   63.50  $   —      $  56.03    $  56.92
Ton
Total Direct Costs $  55.60    $  39.28    $   30.10  $   36.19  $  33.06    $  30.92
Per Ton
Royalty/Production 8.75        12.42       3.09       4.11       4.46        4.07
Taxes Per Ton
Direct Services to 6.83        4.46        7.26       7.33       5.06        5.44
Operations Per Ton
Retirement and     8.64        7.58        3.89       5.43       4.04        4.70
Disability Per Ton
DD&A Per Ton       11.29       6.74        7.38       7.22       6.70        6.22
Total Production   $  91.11    $  70.48    $   51.72  $   60.28  $  53.32    $  51.35
Costs
Ending Inventory   $  (87.32)  $  (67.35)  $   —      $   —      $  (51.55)  $  (52.89)
Cost Per Ton
Total Cost Per Ton $  83.09    $  70.08    $   55.29  $   60.28  $  53.81    $  51.95
Sold
Average Margin Per $  52.57    $  137.13   $   12.47  $   21.93  $  8.30     $  8.23
Ton Sold
Addback: DD&A Per  $  11.29    $  6.74     $   7.38   $   7.22   $  6.70     $  6.22
Ton
Average Margin Per $  63.86    $  143.87   $   19.85  $   29.15  $  15.00    $  14.45
Ton, before DD&A
Cash Flow before
Cap. Ex and DD&A   $  51       $  216      $   14     $   29     $  161      $  176
($MM)
Sales and production exclude CONSOL Energy's portion from equity affiliates. Direct
Costs per Ton include items such as labor and benefits, supplies, power, preparation
costs, project expenses and gas well plugging costs. Direct Services to Operations Per
Ton include items such as subsidence costs, direct administrative, selling expenses,
permitting and compliance and asset retirement obligations. Retirement and Disability
Per Ton Sold includes charges for pension, retiree medical and other employee related
long-term liabilities. The treatment of general and administrative has changed; it has
been removed from the costs shown in this table for both the current quarter and the
year-earlier quarter. Management has decided to allocate G&A to the coal division and
the gas division, but will no longer allocate G&A beyond that. Sales times Average
Margin Per Ton, before DD&A is meant to approximate the amount of cash generated for the
low-vol, high-vol, and thermal coal categories. This cash generation will be offset by
maintenance of production (MOP) capital expenditures.

The Coal Division results table on the previous page has been re-formatted in
order to increase transparency. The realization line has been replaced with a
sales line. Inventory adjustments, which had flowed through realizations, are
now included in costs. A table containing the recast historic quarterly
comparisons for each quarter since the first quarter of 2011 is available on
our website.

Certain costs were excluded from the table. For the low-vol category in the
just-ended quarter, $7 million of Buchanan's costs are not included. For the
thermal category, $42 million of Bailey/Enlow Fork's costs are excluded.

Excluding the impacts of Buchanan and Bailey/Enlow, noted earlier, CONSOL
Energy's coal production costs in the quarter ended September 30, 2012 were
$55.84 per ton, or an increase of $1.46, or 3%, from the quarter ended
September 30, 2011. The majority of the cost increase was volume related, as
there were four additional weeks of longwall idling that lowered volumes
during the quarter.

Coal production in the quarter consisted of 0.8 million tons of low-vol, 0.7
million tons of high-vol, and 10.1 million tons of thermal, for a total of
11.6 million tons. (Amonate production of 53,000 tons is included in the
low-vol category.)

Of the thermal coal production, 9.3 million tons were from Northern Appalachia
and 0.8 million tons were from Central Appalachia.

During the third quarter, thermal coal inventory decreased by 0.8 million
tons, when compared to the quarter ended June 30, 2012.

Coal Marketing Update:

Low-Vol: Low-vol coal continues to be oversupplied in a world economy that has
weakened in the last six months. Steel utilization rates remain weak in Europe
and Brazil, which are CONSOL's natural export markets. Benchmark settlements
between major steel producers and coal suppliers recently settled at prices
that, when adjusted for transportation, were lower than expected. Fourth
quarter sales estimates range between 0.5 and 0.7 million tons.

High-Vol: We expect shipments to China will return to normal levels once a
draw down of their inventories is complete. We expect a recovery to occur in
the second quarter of 2013 as global steel production improves.

U.S. Thermal: Warm summer temperatures and Northern Appalachia production
issues coupled with production cutbacks in other basins have contributed to
reduced inventories at utility stockpiles. Additionally, the potential return
of normal winter weather and the strengthening natural gas price are catalysts
for improving domestic thermal markets. CONSOL has 96% of it's Northern
Appalachia coal sold for 2013 and has recently completed pricing for over 3.5
million tons of our Bailey thermal product at or in excess of $60 per ton.

Global Thermal: CONSOL expects to continue to sell thermal coal into European
markets under contract.

Gas Division Results:

Coalbed Methane (CBM): Total production was 21.7 Bcf, a decrease of 7% from
the 23.3 Bcf produced in the year-earlier quarter.

Marcellus Shale: Total production was 10.1 Bcf, an increase of 16% from the
8.7 Bcf produced in the year-earlier quarter. Last year's Marcellus Shale
production contained 4.5 Bcf that was subsequently sold to Noble Energy and
Antero Resources. On a consistent basis, the company's Marcellus Shale
production increased by 140% from the year-earlier quarter.

Shallow: Total production was 7.0 Bcf, a decrease of 10% from the 7.8 Bcf
produced in the year-earlier quarter. The company has been shifting rigs and
capital toward higher potential return Marcellus and Utica drilling prospects.

Other: Our other category had production of 0.6 Bcf, unchanged from 0.6 Bcf in
the year-earlier quarter.

The table below summarizes the key metrics for the Gas Division:

GAS DIVISION RESULTS — Quarter-to-Quarter Comparison
                                          Quarter        Quarter
                                          Ended          Ended
                                          September 30,  September 30,

                                          2012           2011
Total Revenue and Other Income ($ MM)     $    191.1     $    203.6
Net Income                                $    7.2       $    2.9
Net Cash from Operating Activities ($ MM) $    14.7      $    130.9
Total Period Production (Bcf)                  39.5     40.4
Average Daily Production (MMcf)                429      439.6
Capital Expenditures ($ MM)               $    166.6     $    215.8
Production results are net of royalties.

PRICE AND COST DATA PER MCF — Quarter-to-Quarter Comparison

The company experienced increased profitability within the Gas Division when
compared with the quarter ended September 30, 2011. Unit gas margins
decreased despite the improvement in unit costs, as realized unit gas prices
fell by $0.73 per Mcf. Total unit gas costs declined, due in part to the
continued emphasis on low cost Marcellus Shale drilling, where the company has
been drilling longer laterals on multi-well pads. All-in unit costs in the
Marcellus Shale were $2.95 per Mcf in the just-ended quarter, a decrease of
$0.10 from the $3.05 per Mcf in the year-earlier quarter. Total gathering
costs were impaired by $0.13 per Mcf primarily due to increased transportation
costs.

                                          Quarter        Quarter
                                          Ended          Ended
                                          September 30,  September 30,

                                          2012           2011
Average Sales Price                       $4.19          $4.92
Costs - Production
Lifting                                   $0.57          $0.76
Ad Valorem, Severance and Other Taxes     $0.17          $0.15
DD&A                                      $1.12          $1.22
Total Production Costs                    $1.86          $2.13
Costs - Gathering
Operating Costs                           $0.65          $0.63
Transportation                            $0.39          $0.26
DD&A                                      $0.20          $0.22
Total Gathering Costs                     $1.24          $1.11
Gas Direct Administrative Selling & Other $0.28          $0.36
Total Costs                               $3.38          $3.60
Margin                                    $0.81          $1.32

Note: Costs − The line item "gas direct administrative, selling, & other"
excludes general administration, incentive compensation, and other corporate
expenses.

CONSOL Energy 2012 Production Guidance

CONSOL Energy expects its net gas production to be between 157 - 159 Bcf for
the year. Fourth quarter gas production, net to CONSOL, is expected to be
approximately 42.5 - 44.5 Bcf.

Total hedged gas production in the 2012 fourth quarter is 19.3 Bcf, at an
average price of $5.25 per Mcf. The annual gas hedge position for three years
is shown in the table below:

GAS DIVISION GUIDANCE
                                     2012     2013   2014
Total Yearly Production (Bcf)        157-159  N/A    N/A
Volumes Hedged (Bcf),as of 10/11/12  76.9     65.4   55.0
Average Hedge Price ($/Mcf)          $5.25    $4.73  $4.95



COAL DIVISION GUIDANCE
                                Q4 2012     2012        2013        2014
Estimated Coal Sales (millions  14.0        55.9        56.7        61.8
of tons)
Est. Low-Vol Met Sales          0.6         3.4         3.9         4.9
Tonnage: Firm                   0.6         3.4         1.1         —
Avg. Price: Sold (Firm)         $  134.64   $  141.72   $  130.35   $  —
Est. High-Vol Met Sales         0.5         3.4         2.7         4.8
Tonnage: Firm                   0.5         3.4         0.3         0.3
Avg. Price: Sold (Firm)         $  81.07    $  65.46    $  73.23    $  75.53
Est. Thermal Sales              12.9        49.1        49.5        51.4
Tonnage: Firm                   12.6        48.8        35.9        14.9
Avg. Price: Sold (Firm)         $  61.21    $  61.66    $  60.63    $  62.27

Note: While most of the data in the table are single point estimates, the
inherent uncertainty of markets and mining operations means that investors
should consider a reasonable range around these estimates. N/A means not
available or not forecast. CONSOL has chosen not to forecast prices for open
tonnage due to ongoing customer negotiations. In the thermal sales category,
the open tonnage includes two items: sold, but unpriced tons and collared
tons. Collared tons in 2013 are 3.0 million tons, with a ceiling of $52.37 per
ton and a floor of $47.37 per ton. Collared tons in 2014 are 7.0 million tons,
with a ceiling of $55.90 per ton and a floor of $46.32 per ton. For 2013,
when unpriced thermal tons are combined with collared tons, less than 2
million tons remains to be sold. Total Amonate estimated coal sales for Q4
2012 are 0.03 million tons. Calendar years 2012, 2013, and 2014 include 0.03,
0.6, and 0.7 million tons, respectively, from Amonate. The Amonate tons are
not included in the category breakdowns.

Liquidity

Total company liquidity as of September 30, 2012 was $2.6 billion.

As of September 30, 2012, CONSOL Energy had $1.477 billion in total liquidity,
which is comprised of $39.6 million of cash, $39.2 million available to be
borrowed under the accounts receivable securitization facility, and$1,399.7
million available to be borrowed under its $1.5 billion bank facility. CONSOL
Energy's credit facility has no borrowings. Outstanding letters of credit are
$261.1 million.

As of September 30, 2012, CNX Gas Corporation had $1.121 billion in total
liquidity, which is comprised of $191.4 million of cash and $929.8 million
available to be borrowed under its $1.0 billion bank facility. CNX Gas'
credit facility has no borrowings. Outstanding letters of credit are $70.2
million.

CONSOL Energy Inc., the leading diversified fuel producer in the Eastern U.S.,
is a member of the Standard & Poor's 500 Equity Index and the Fortune 500. It
has 12 bituminous coal mining complexes in four states and reports proven and
probable coal reserves of 4.5 billion tons. It is also a leading Eastern U.S.
gas producer, with proved reserves of 3.5 trillion cubic feet. Additional
information about CONSOL Energy can be found at its web site:
www.consolenergy.com.

Non-GAAP Financial Measures

Definition: EBIT is defined as earnings before deducting net interest expense
(interest expense less interest income) and income taxes. EBITDA is defined
as earnings before deducting net interest expense (interest expense less
interest income), income taxes and depreciation, depletion and amortization.
Adjusted EBITDA is defined as EBITDA after adjusting for the discrete items
listed below. Although EBIT, EBITDA, and Adjusted EBITDA are not measures of
performance calculated in accordance with generally accepted accounting
principles, management believes that it is useful to an investor in evaluating
CONSOL Energy because it is widely used to evaluate a company's operating
performance before debt expense and its cash or as a substitute for measures
of performance in accordance with generally accepted accounting principles.
In addition, because all companies do not calculate EBIT, EBITDA, or Adjusted
EBITDA identically, the presentation here may not be comparable to similarly
titled measures of other companies.

Reconciliation of EBIT, EBITDA and Adjusted EBITDA to financial net income
attributable to CONSOL Energy Shareholders is as follows (dollars in 000):

                                 Three Months Ended
                                 September 30,
                                 2012                      2011
Net Income                       $     (11,368)            $    167,329
Add: Interest Expense           54,075                    58,884
Less: Interest Income            (8,299)                   (180)
Add: Income Taxes               (19,898)                  33,093
Earnings Before Interest &       14,510                    259,126
Taxes (EBIT)
Add: Depreciation,              153,877                   159,750
Depletion & Amortization
Earnings Before Interest,        168,387                   418,876
Taxes and DD&A (EBITDA)
Adjustments:
Bailey Structural Incident       41,873                    —
Noble Transaction                —                         58,042
Antero Transaction               —                         (41,208)
Bond Amendment Fees              —                         14,907
Pipeline Right-of-Ways           —                         (10,000)
Issuance
Asset Abandonment - Mine 84      —                         338
Total Pre-tax Adjustments        41,873                    22,079
Adjusted Earnings Before
Interest, Taxes and DD&A         $     210,260             $    440,955
(Adjusted EBITDA)
Note: Income tax effect of Total Pre-tax Adjustments was ($2,165) and ($7,436)
for the three months ended September 30, 2012 and September 30, 2011,
respectively.

Forward-Looking Statements

We are including the following cautionary statement in this document to make
applicable and take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 for any forward-looking statements
made by, or on behalf of us. With the exception of historical matters, the
matters discussed in this document are forward-looking statements (as defined
in Section21E of the Securities Exchange Act of 1934) that involve risks and
uncertainties that could cause actual results to differ materially from
projected results. Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. The
forward-looking statements may include projections and estimates concerning
the timing and success of specific projects and our future production,
revenues, income and capital spending. When we use the words "believe,"
"intend," "expect," "may," "should," "anticipate," "could," "estimate,"
"plan," "predict," "project," or their negatives, or other similar
expressions, the statements which include those words are usually
forward-looking statements. When we describe strategy that involves risks or
uncertainties, we are making forward-looking statements. The forward-looking
statements in this document speak only as of the date of this document; we
disclaim any obligation to update these statements, and we caution you not to
rely on them unduly. We have based these forward-looking statements on our
current expectations and assumptions about future events. While our
management considers these expectations and assumptions to be reasonable, they
are inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most of which are
difficult to predict and many of which are beyond our control. These risks,
contingencies and uncertainties relate to, among other matters, the
following: deterioration in global economic conditions in any of the
industries in which our customers operate, or sustained uncertainty in
financial markets cause conditions we cannot predict; a significant or
extended decline in prices we receive for our coal and natural gas affecting
our operating results and cash flows; our customers extending existing
contracts or entering into new long-term contracts for coal; our reliance on
major customers; our inability to collect payments from customers if their
creditworthiness declines; the disruption of rail, barge, gathering,
processing and transportation facilities and other systems that deliver our
coal and natural gas to market; a loss of our competitive position because of
the competitive nature of the coal and natural gas industries, or a loss of
our competitive position because of overcapacity in these industries impairing
our profitability; our inability to maintain satisfactory labor relations;
coal users switching to other fuels in order to comply with various
environmental standards related to coal combustion emissions; the impact of
potential, as well as any adopted regulations relating to greenhouse gas
emissions on the demand for coal and natural gas; foreign currency
fluctuations could adversely affect the competitiveness of our coal abroad;
the risks inherent in coal and natural gas operations being subject to
unexpected disruptions, including geological conditions, equipment failure,
timing of completion of significant construction or repair of equipment,
fires, explosions, accidents and weather conditions which could impact
financial results; decreases in the availability of, or increases in, the
price of commodities or capital equipment used in our mining and natural gas
operations; decreases in the availability of, an increase in the prices
charged by third party contractors or, failure of third party contractors to
provide quality services to us in a timely manner could impact our
profitability; obtaining and renewing governmental permits and approvals for
our coal and natural gas operations; the effects of government regulation on
the discharge into the water or air, and the disposal and clean-up of,
hazardous substances and wastes generated during our coal and natural gas
operations; the effects of stringent federal and state employee health and
safety regulations, including the ability of regulators to shut down a mine or
well; the potential for liabilities arising from environmental contamination
or alleged environmental contamination in connection with our past or current
coal and gas operations; the effects of mine closing, reclamation, gas well
closing and certain other liabilities; uncertainties in estimating our
economically recoverable coal and gas reserves; costs associated with
perfecting title for coal or gas rights on some of our properties; the
outcomes of various legal proceedings, which are more fully described in our
reports filed under the Securities Exchange Act of 1934; the impacts of
various asbestos litigation claims; increased exposure to employee related
long-term liabilities; our accruals for obligations for long-term employee
benefits are based upon assumptions which, if inaccurate, could result in our
being required to expend greater amounts than anticipated; due to our
participation in an underfunded multi-employer pension plan, we have exposure
under that plan that extends beyond what our obligation would be with respect
to our employees and in the future we may have to make additional cash
contributions to fund the pension plan or incur withdrawal liability; lump sum
payments made to retiring salaried employees pursuant to our defined benefit
pension plan exceeding total service and interest cost in a plan year;
acquisitions and joint ventures that we recently have completed or entered
into or may make in the future including the accuracy of our assessment of the
acquired businesses andtheir risks, achieving any anticipated synergies,
integrating the acquisitions and unanticipated changes that could affect
assumptions we may have made and divestitures we anticipate may not occur or
produce anticipated proceeds including joint venture partners paying
anticipated carry obligations; the terms of our two significant existing gas
joint ventures restrict our flexibility and actions taken by the other party
in our gas joint ventures may impact our financial position; the anti-takeover
effects of our rights plan could prevent a change of control; risks associated
with our debt; replacing our natural gas reserves, which if not replaced, will
cause our gas reserves and gas production to decline; our ability to find
adequate water sources for use in gas drilling, or our ability to dispose of
water used or removed from strata in connection with our gas operations at a
reasonable cost and within applicable environmental rules; our hedging
activities may prevent us from benefiting from price increases and may expose
us to other risks; and other factors discussed in the 2011 Form 10-K under
"Risk Factors," as updated by any subsequent Form 10-Qs, which are on file at
the Securities and Exchange Commission.



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
                        Three Months Ended          Nine Months Ended
                        September 30,               September 30,
                        2012          2011          2012          2011
Sales—Outside           $ 1,084,041   $ 1,421,689   $ 3,584,805   $ 4,293,167
Sales—Gas Royalty       12,968        17,083        34,707        52,191
Interests
Sales—Purchased Gas     953           1,155         2,443         3,297
Freight—Outside         27,430        59,871        126,195       156,311
Other Income            34,697        21,931        293,196       70,068
Total Revenue and Other 1,160,089     1,521,729     4,041,346     4,575,034
Income
Cost of Goods Sold and
Other Operating Charges
(exclusive of           827,530       879,268       2,588,460     2,620,376
depreciation, depletion
and amortization shown
below)
Gas Royalty Interests   10,543        15,409        27,916        46,582
Costs
Purchased Gas Costs     737           398           2,123         2,850
Freight Expense         27,430        59,871        126,195       156,122
Selling, General and    36,681        46,692        109,412       130,311
Administrative Expenses
Depreciation, Depletion 153,877       159,750       463,048       466,612
and Amortization
Interest Expense        54,075        58,884        168,788       189,963
Taxes Other Than Income 80,587        85,790        256,543       265,121
Abandonment of          —             338           —             115,817
Long-Lived Assets
Loss on Debt            —             —             —             16,090
Extinguishment
Transaction and         —             14,907        —             14,907
Financing Fees
Total Costs             1,191,460     1,321,307     3,742,485     4,024,751
(Loss) Earnings Before  (31,371)      200,422       298,861       550,283
Income Taxes
Income Taxes (Benefit)  (19,898)      33,093        60,428        113,421
Expense
Net (Loss) Income       (11,473)      167,329       238,433       436,862
Add: Net Loss
Attributable to         105           —             134           —
Noncontrolling Interest
Net (Loss) Income
Attributable to CONSOL  $ (11,368)    $ 167,329     $ 238,567     $ 436,862
Energy Inc.
Shareholders
Earnings Per Share:
Basic                   $ (0.05)      $ 0.74        $ 1.05        $ 1.93
Dilutive                $ (0.05)      $ 0.73        $ 1.04        $ 1.91
Weighted Average Number
of Common Shares
Outstanding:
Basic                   227,654,395   226,744,011   227,491,284   226,582,226
Dilutive                227,654,395   229,163,537   229,191,870   229,002,863
Dividends Paid Per      $ 0.125       $ 0.100       $ 0.375       $ 0.300
Share





CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
                               Three Months Ended       Nine Months Ended
                               September 30,            September 30,
                               2012         2011        2012        2011
Net (Loss) Income              $ (11,473)   $ 167,329   $ 238,433   $ 436,862
Other Comprehensive (Loss)
Income:
Treasury Rate Lock (Net of     —            —           —           (96)
tax: $-, $-, $-, $59)
Actuarially Determined
Long-Term Liability
Adjustments
Change in Prior Service Cost
(Net of tax: $-,$-,            —            —           50,276      —
($30,295),$-)
Amortization of Prior Service
Cost (Net of tax: $5,232,      (8,684)      (7,365)     (24,921)    (22,094)
$4,584,$15,016, $13,750)
Amortization of Net Loss (Net
of tax: ($10,007), ($11,438),  16,605       18,379      49,725      55,135
($29,963), ($34,312))
Net (Decrease) Increase in the
Value of Cash Flow Hedge (Net  (6,459)      59,620      80,280      92,421
of tax: $4,161, ($38,790),
($51,716), ($59,912))
Reclassification of Cash Flow
Hedges from OCI to Earnings    (47,809)     (20,974)    (153,597)   (56,719)
(Net of tax: $29,683, $13,292,
$97,760, $36,746)
Other Comprehensive (Loss)     (46,347)     49,660      1,763       68,647
Income
Comprehensive (Loss) Income    (57,820)     216,989     240,196     505,509
Add: Comprehensive Loss
Attributable to Noncontrolling 105          —           134         —
Interest
Comprehensive (Loss) Income
Attributable to CONSOL Energy  $ (57,715)   $ 216,989   $ 240,330   $ 505,509
Inc. Shareholders





CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                                                  (Unaudited)
                                                  September30,  December31,
                                                  2012           2011
ASSETS
Current Assets:
Cash and Cash Equivalents                         $ 230,958      $ 375,736
Accounts and Notes Receivable:
Trade                                             457,057        462,812
Notes Receivable                                  314,417        314,950
Other Receivables                                 86,282         105,708
Inventories                                       266,539        258,335
Deferred Income Taxes                             172,212        141,083
Recoverable Income Taxes                          12,132         —
Prepaid Expenses                                  170,927        239,353
Total Current Assets                              1,710,524      1,897,977
Property, Plant and Equipment:
Property, Plant and Equipment                     15,143,744     14,087,319
Less—Accumulated Depreciation, Depletion and      5,215,721      4,760,903
Amortization
Total Property, Plant and Equipment—Net           9,928,023      9,326,416
Other Assets:
Deferred Income Taxes                             446,530        507,724
Restricted Cash                                   20,372         22,148
Investment in Affiliates                          213,708        182,036
Notes Receivable                                  1,460          300,492
Other                                             235,977        288,907
Total Other Assets                                918,047        1,301,307
TOTAL ASSETS                                      $ 12,556,594   $ 12,525,700





CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
                                                  (Unaudited)
                                                  September30,  December31,
                                                  2012           2011
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable                                  $  497,604     $ 522,003
Current Portion of Long-Term Debt                 22,065         20,691
Accrued Income Taxes                              —              75,633
Other Accrued Liabilities                         814,033        770,070
Total Current Liabilities                         1,333,702      1,388,397
Long-Term Debt:
Long-Term Debt                                    3,127,262      3,122,234
Capital Lease Obligations                         51,747         55,189
Total Long-Term Debt                              3,179,009      3,177,423
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions       2,963,646      3,059,671
Pneumoconiosis Benefits                           176,514        173,553
Mine Closing                                      443,986        406,712
Gas Well Closing                                  147,067        124,051
Workers' Compensation                             150,129        151,034
Salary Retirement                                 174,844        269,069
Reclamation                                       52,426         39,969
Other                                             138,327        124,936
Total Deferred Credits and Other Liabilities      4,246,939      4,348,995
TOTAL LIABILITIES                                 8,759,650      8,914,815
Stockholders' Equity:
Common Stock, $.01 Par Value; 500,000,000 Shares
Authorized,

227,655,437 Issued and 227,620,682 Outstanding at
September 30,                                     2,278          2,273

2012; 227,289,426 Issued and 226,056,212
Outstanding at

December31, 2011
Capital in Excess of Par Value                    2,275,320      2,234,775
Preferred Stock, 15,000,000 authorized, None      —              —
issued and outstanding
Retained Earnings                                 2,319,530      2,184,737
Accumulated Other Comprehensive Loss              (799,791)      (801,554)
Common Stock in Treasury, at Cost—34,755 Shares
at September 30,                                  (609)          (9,346)

2012 and 233,214 Shares at December31, 2011
Total CONSOL Energy Inc. Stockholders' Equity     3,796,728      3,610,885
Noncontrolling Interest                           216            —
TOTAL EQUITY                                      3,796,944      3,610,885
TOTAL LIABILITIES AND EQUITY                      $  12,556,594  $ 12,525,700





CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Dollars in thousands, except per share data)
                                                  Accumulated
                        Capitalin
                                     Retained     Other          Common     Total CONSOL   Non-
               Common   Excess                                              Energy Inc.                 Total
                                     Earnings     Comprehensive  Stockin   Stockholders'  Controlling
               Stock    ofPar                                              Equity                      Equity
                                     (Deficit)    Income         Treasury                  Interest
                        Value
                                                  (Loss)
Balance at
               $ 2,273  $ 2,234,775  $ 2,184,737  $  (801,554)   $ (9,346)  $  3,610,885   $    —       $ 3,610,885
December31,
2011
(Unaudited)
Net Income     —        —            238,567      —              —          238,567        (134)        238,433
(Loss)
Other
Comprehensive  —        —            —            1,763          —          1,763          —            1,763

Income
Comprehensive
Income         —        —            238,567      1,763          —          240,330        (134)        240,196

(Loss)
Issuance of    5        1,229        —            —              —          1,234          —            1,234
Common Stock
Issuance of    —        —            (18,484)     —              8,737      (9,747)        —            (9,747)
Treasury Stock
Tax Cost From
Stock-Based    —        893          —            —              —          893            —            893
Compensation
Amortization
of Stock-Based —        38,423       —            —              —          38,423         —            38,423
Compensation
Awards
Net Change in
Greenshale
Energy         —        —            —            —              —          —              350          350
Noncontrolling
Interest
Dividends
($0.375 per    —        —            (85,290)     —              —          (85,290)       —            (85,290)
share)
Balance at
September      $ 2,278  $ 2,275,320  $ 2,319,530  $  (799,791)   $ (609)    $  3,796,728   $    216     $ 3,796,944

30, 2012





CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
                            Three Months Ended     Nine Months Ended
                            September 30,          September 30,
                            2012        2011       2012         2011
Operating Activities:
Net (Loss) Income
Attributable to CONSOL      $ (11,368)  $ 167,329  $  238,567   $ 436,862

Energy Inc. Shareholders
Adjustments to Reconcile
Net (Loss) Income

to Net Cash Provided By
Operating Activities:
Depreciation, Depletion and 153,877     159,750    463,048      466,612
Amortization
Abandonment of Long-Lived   —           338        —            115,817
Assets
Stock-Based Compensation    11,488      11,508     38,423       37,083
(Gain) Loss on Sale of      (276)       15,132     (190,257)    9,993
Assets
Loss on Extinguishment of   —           —          —            16,090
Debt
Amortization of Mineral     187         571        3,818        4,149
Leases
Deferred Income Taxes       (35,850)    (7,472)    (5,225)      120
Equity in Earnings of       (7,573)     (8,677)    (22,676)     (19,989)
Affiliates
Changes in Operating
Assets:
Accounts and Notes          (26,675)    885        13,359       (50,212)
Receivable
Inventories                 38,522      17,972     (8,204)      16,264
Prepaid Expenses            (21,071)    (24,290)   (1,362)      (611)
Changes in Other Assets     (19,565)    1,139      (8,961)      16,446
Changes in Operating
Liabilities:
Accounts Payable            46,484      77,136     5,218        98,320
Other Operating Liabilities 54,563      43,198     (11,130)     66,589
Changes in Other            (21,987)    (175)      1,469        29,432
Liabilities
Other                       1,458       2,577      14,076       9,439
Net Cash Provided by
Operating                   162,214     456,921    530,163      1,252,404

Activities
Investing Activities:
Capital Expenditures        (437,622)   (412,022)  (1,152,021)  (997,463)
Proceeds from Sales of      331,713     687,811    583,942      695,291
Assets
Distributions From, net of
(Investments In),           3,138       66,990     (18,701)     70,860

Equity Affiliates
Net Cash (Used in) Provided (102,771)   342,779    (586,780)    (231,312)
by Investing Activities
Financing Activities:
Payments on Short-Term      —           (260,750)  —            (284,000)
Borrowings
Payments on Miscellaneous   (1,903)     (2,215)    (6,565)      (9,320)
Borrowings
Payments on Securitization  —           (70,000)   —            (200,000)
Facility
Payments on Long Term
Notes, including            —           —          —            (265,785)

Redemption Premium
Proceeds from Issuance of   —           —          —            250,000
Long-Term Notes
Tax Benefit from            970         853        2,578        5,034
Stock-Based Compensation
Dividends Paid              (28,457)    (22,679)   (85,290)     (67,972)
Issuance of Common Stock    777         —          1,234        —
Issuance of Treasury Stock  —           1,207      109          6,219
Debt Issuance and Financing (79)        (112)      (227)        (15,539)
Fees
Net Cash Used in Financing  (28,692)    (353,696)  (88,161)     (581,363)
Activities
Net Increase (Decrease) in  30,751      446,004    (144,778)    439,729
Cash and Cash Equivalents
Cash and Cash Equivalents   200,207     26,519     375,736      32,794
at Beginning of Period
Cash and Cash Equivalents   $ 230,958   $ 472,523  $  230,958   $ 472,523
at End of Period



SOURCE CONSOL Energy Inc.

Website: http://www.consolenergy.com
Contact: Investor: Dan Zajdel, +1-724-485-4169, or Tyler Lewis,
+1-724-485-3157; or Media: Lynn Seay, +1-724-485-4065
 
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