CONSOL Energy Announces Operations Update

                  CONSOL Energy Announces Operations Update

Gas Division Produces 41.8 Bcfe in Quarter, up 5% from Year - Earlier Quarter;

Utica Shale Well in Noble County tests at 12 MMcf and 768 Bbls of Condensate;

Coal Division Produces 14.3 million tons in Quarter

PR Newswire

PITTSBURGH, Jan. 18, 2013

PITTSBURGH, Jan. 18, 2013 /PRNewswire/ --CONSOL Energy Inc. (NYSE: CNX), the
leading diversified fuel producer in the Eastern U.S., is providing an
operations update for the quarter ended December 31, 2012.

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

"CONSOL's mines and gas operations ran well during the quarter," commented J.
Brett Harvey, chairman and chief executive officer. "Substantial improvements
in safety have been realized during the year and new records have been set all
across the company. Yet in the fourth quarter, we suffered a tragic
fatality. For 2013, we are focusing our efforts on reducing the severity of
incidents, while maintaining the pace of overall accident reduction we've
achieved the past five years."

CONSOL's Coal Division produced 14.3 million tons for the fourth quarter of
2012, including 0.7 million tons of low-vol coking coal from the company's
Buchanan Mine. This was lower than the 15.2 million tons, including 1.4
million tons from Buchanan, in the fourth quarter of 2011. Annual 2012 coal
production was 56.0 million tons, including 3.5 million tons from Buchanan and
0.1 million tons from Amonate. Annual 2011 coal production was 62.0 million
tons.

Most of the 2012 reduction in coal production was due to the company's efforts
to control inventory. Several mines were idled during 2012, as the company
continually sought to match production and sales.

During the fourth quarter of 2012, CONSOL's total coal inventory decreased by
0.3 million tons to 1.4 million tons as of December 31, 2012. Thermal coal
inventory decreased to 1.1 million tons during the quarter, as sales exceeded
production. Low-vol Buchanan and Amonate inventory decreased from September
30, 2012 by 0.2 million tons, to 0.2 million tons.

CONSOL Gas Division produced 41.8 Bcfe for the 2012 fourth quarter, or 5% more
than the 39.7 Bcfe produced in the 2011 fourth quarter. Annual 2012 gas
production was 156.3 Bcfe (net to CONSOL). During the quarter, CONSOL Energy
completed its second well in Noble County, OH. This Utica Shale well, the NBL
16A, was completed with 16 stages and tested at 12.0 MMcfd and 768 barrels
condensate per day. This well is currently shut-in for further dissipation of
frac fluids and the installation of a gas gathering system. The early results
from this well, coupled with the results from the previously announced NBL 1A
well, in addition to competitor data, gives the company confidence to begin
transitioning its Utica Shale program in Noble County from an exploration mode
to a development mode. CONSOL now plans to drill 11 wells in Noble County in
2013.

First Quarter 2013 Forecasts

Coal: CONSOL Energy expects first quarter 2013 total coal production to be
between 13.7 – 14.1 million tons. Annual 2013 total coal production guidance
is 55.5 − 57.5 million tons. Buchanan Mine's first quarter production is
expected to be between 0.85 – 0.95 million tons, while annual production
guidance is now estimated at 3.8 – 4.0 million tons.

Gas: CONSOL Energy expects its 2013 gas production to be approximately 170 –
180 Bcfe (net to CONSOL). First quarter 2013 gas production, net to CONSOL, is
expected to be approximately 39 – 41 Bcf, or slightly lower than the 41.8 Bcfe
produced in the fourth quarter of 2012, as frac schedules and other seasonal
factors are expected to limit wells turned into line.

Coal Division Operations

For calendar 2012, CONSOL's Coal Division saw safety exceptions drop 11%, from
150 to 134. A similar improvement of 11% was seen in compliance citations.

In safety, the Miller Creek Complex achieved Absolute Zero for the third
consecutive year. During the fourth quarter, many of the company's coal
preparation plants − including Bailey, Shoemaker, Loveridge, and Ireland
load-out facility − achieved Absolute Zero. Enlow Fork Mine also achieved a
safety milestone by becoming the first longwall operation in the company's
history to accumulate over one million man-hours without incurring a lost time
incident.

At Buchanan Mine, the first of two phases of the $24 million Horn Mountain
Portal Project was completed. This portal is strategically located at the
mouth of our future 5 North reserves. In the meantime, it is one-and-a-half
miles closer to the current mining "face," enabling miners to get to and from
the work site much more quickly. Phase two involves converting a vent shaft to
a supply hoist. Once this phase is completed in June, seven miles – each way −
of supply haulage will be eliminated. This will help to better control costs
at the mine.

At Loveridge Mine, a major sealing project was completed, which has increased
safety and reduced risk by reducing the active footprint of the mine by
approximately three square miles. As a result of this project, one bleeder fan
was eliminated.

For calendar 2012, Shoemaker Mine set a new production record, at 5.3 million
tons.

Gas Division Operations

For 2012, the Gas Division worked the entire year without having recorded a
lost-time incident. The Gas Division was thus able to continue its streak –
dating back to 1994 – of its employees working without a lost-time incident
during the course of some 5 million hours. Gas Operations' commitment to
environmental excellence was reflected in a 53% improvement in their
compliance record, year-on-year.

CONSOL Energy had a very successful 2012 Marcellus Shale drilling program
where the Joint Venture with Noble Energy drilled 89 gross wells, with 64
drilled by CONSOL and 25 drilled by Noble Energy. The table below highlights
the improvements from the CONSOL-Operated 2011 program to the 2012 program:

CONSOL-Operated                   Average Total  Average     Average  Average  Average
                Wells   Wells     Lateral Number Number      24-Hr    30-Day  EUR/Well
Wells,          Drilled Completed Length  Stages Stages/Well Rate     Rate     (Bcfe)
By Year                          (ft)                       (MMcf/D) (MMcf/D)
2011            78      57        3,853   684    12          5.1      3.5      5.2
2012            64      51        5,514   940    18          8.1      4.7      5.9

The total lateral feet drilled in 2012 by CONSOL was approximately 280,000, or
roughly 60,000 (or 27%) greater than the 220,000 lateral feet drilled in 2011.
Frac stages were also up an impressive 37% in 2012 over 2011. The company
believes that these metrics are key drivers for enhancing well economics.

For the 2012 CONSOL-operated Marcellus Shale program, the following table
provides a breakdown of results by district:

          2012    2012      Average Total  Average  Average  Average  Average
CONSOL    Wells   Wells     Lateral Number Number   24-Hr   30-Day  EUR/Well
District  Drilled Completed Length  Stages Stages   Rate     Rate     (Bcfe)
                            (ft)           per Well (MMcf/D) (MMcf/D)
Southwest 45      24        5,006   327    14       7.4      4.6      6.4
Pa.
Central   13      18        6,867   409    23       9.9      5.3      5.9
Pa.
Northern  6       9         6,394   204    23       5.6      3.5      4.6
W.Va.
CONSOL
Marcellus 64      51        5,514   940    18       8.1      4.7      5.9

Total/Avg

Southwest Pa.: In Southwest Pa., CONSOL Energy currently has two horizontal
rigs operating and plans 23 wells with an expected average drilled lateral
length of 5,800 feet during 2013 for Greene and Washington counties.

Central Pa.: CONSOL Energy does not currently have any horizontal rigs
drilling in Central Pa. but plans to drill 5 wells with an expected average
drilled lateral length of 8,300 feet in 2013, all in the Mamont Field of
Westmoreland County.

Northern W.Va.: Within the Northern W.Va. district, the company completed 3
Barbour County wells, with EURs of 7.5 Bcf, and 6 Upshur County wells, with
EURs of 3.2 Bcf. CONSOL Energy does not currently have any horizontal rigs
drilling in Northern West Virginia but plans to drill 8 wells with an expected
average lateral length of 8,200 feet during 2013, 6 in Philippi and single
well pads at Audra and Century to test the productivity of our southern
Barbour County and northern Upshur County leasehold between Philippi and
Alton.

Marcellus Shale Wet Gas (Noble Energy operated): In the wet gas portion of the
Marcellus Shale, Noble Energy drilled 25 wells and completed 20 wells during
2012. Noble Energy began production in Marshall County, W.Va. on July 31,
2012 with the 5-well SHL 1 pad. Current production is greater than 39 MMcfd
gas and 300 barrels condensate per day from these 20 wells. Also turned into
production at Marshall County during 2012 was the 8-well SHL 3 pad and the
7-well SHL 6 pad. During 2012, Noble Energy sold approximately 2.8 Bcf of
"residue" gas, 32,000 barrels condensate, and 145,000 barrels natural gas
liquids. Assuming $3.35 per Mcf for dry gas, the realized flowstream remains
greater than $7 per Mcfe including the liquid hydrocarbon component without
full ethane recovery.

Noble Energy currently has three horizontal rigs drilling in Northern W. Va.
and Southwest Pa. One rig is finishing the fifth well of eleven at the SHL 8
pad in Marshall County, W. Va., one rig is rigging up at the seven-well WFN1
pad in Washington County, Pa., and one rig is drilling at the six well NORM 1
pad in Gilmer County, W. Va. Noble Energy expects to add one additional
horizontal rig in March, June, and July of 2013. The plan is to exit 2013 with
six horizontal rigs while drilling 85 to 90 wells with an average length
6,365' in the Marcellus wet gas area in 2013.

Ohio Utica Shale (CONSOL-operated): In the Utica Shale Joint Venture with Hess
Corporation, CONSOL Energy drilled its first 8 wells with drilled lateral
lengths ranging between 2,785 and 7,568 feet and completed its first 4 wells
in 2012.

Tuscarawas County: The TUSC 3A in the western portion of the county had a
drilled lateral length of 5,020 feet and was completed with 17 stages. The
company had previously announced a peak production rate of 400 barrels of oil
per day and 386 Mcfd of gas from the TUSC 3A. The TUSC 8A, with a drilled
lateral length of 7,568 feet, was recently drilled as an offset to the TUSC 3A
and completion by 24 stages is planned during the first quarter of 2013.

Noble County: Two wells were drilled and completed in this county, the NBL 1A
with a drilled lateral length of 4,394 feet and the NBL 16A with a drilled
lateral length of 4,793 feet. The NBL 1A was completed with 14 stages and
tested 9.0 MMcfd gas and 10 barrels condensate per day while the NBL 16A was
completed with 16 stages and tested 12.0 MMcfd and 768 barrels condensate per
day. Both of these wells are currently shut in for further dissipation of
frac fluid and the installation of a gas gathering system.

Portage County: The PORT 2A was drilled to a lateral length of 4,690 feet and
was completed with 16 stages. Good shows of gas and oil were encountered
during frac plug drill out operations. The well is currently shut-in for
dissipation of frac fluid.

Mahoning County: Three wells were drilled in this county in 2012. The MAH 2A
was drilled with a drilled lateral length of 2,785 feet and completion of 9
stages is expected to begin during the first quarter of 2013. Our first
multi-well Utica pad was drilled at the MAH 7 pad where the MAH 7A was drilled
to a drilled lateral length of 5,411 feet and the MAH 7C was drilled to a
drilled lateral length of 5,290 feet. Completion of both MAH 7 wells is
planned for the second quarter of 2013.

CONSOL Energy currently has two horizontal drilling rigs operating in the
Utica Shale and plans 11 wells during 2013, all in Noble County. Production
from these wells in 2013 is estimated to be less than 5 Bcfe, due to
infrastructure requirements.

Ohio Utica Shale (Hess-operated): Our joint venture partner, Hess Corporation,
drilled 2 joint wells, while completing 1 joint well during 2012. The Athens
A 1H-24 in Harrison County was recently tested at 13.9 MMcfd and 1,056 barrels
condensate per day and is currently shut in for further dissipation of frac
fluid. The Jeffco A 1H-6, also in Harrison County, is currently being drilled
out following a 15-stage stimulation. Hess currently has 1 horizontal rig
drilling on their operated portion of our joint venture in eastern Ohio,
drilling on the 1H-23 in Harrison County, and plans to drill 16 joint
horizontal Utica Shale wells during 2013.

CONSOL Energy will report additional operational and financial results for the
quarter ended December 31, 2012 at 7:00 a.m. ET on Thursday, January 31,
followed by a conference call at 10:00 a.m. ET. The call can be accessed at
the investor relations section of the company's web site, at
www.consolenergy.com.

Cautionary Statements

Various statements in this release, including those that express a belief,
expectation or intention, may be considered forward-looking statements (as
defined in Section 21E of the Exchange Act) 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 press release, if any, speak only as of the date of this
press release; we disclaim any obligation to update these statements. 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
economic conditions in any of the industries in which our customers operate,
or sustained uncertainty in financial markets cause conditions we cannot
predict; an extended decline in prices we receive for our coal and 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 gas to market; a loss of our competitive position because of the
competitive nature of the coal and gas industries, or a loss of our
competitive position because of overcapacity in these industries impairing our
profitability; 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, as well as the impact of
any adopted regulations on our coal mining operations due to the venting of
coalbed methane which occurs during mining; foreign currency fluctuations
could adversely affect the competitiveness of our coal abroad; the risks
inherent in coal and 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; our focus on new
gas development projects and exploration for gas in areas where we have little
or no proven gas reserves; decreases in the availability of, or increases in,
the price of commodities and services used in our mining and gas operations,
as well as our exposure under "take or pay" contracts we entered into with
well service providers to obtain services of which if not used could impact
our cost of production; obtaining and renewing governmental permits and
approvals for our coal and 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 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; defects may exist in our chain
of title and we may incur additional costs associated with perfecting title
for coal or gas rights on some of our properties or failing to acquire these
additional rights we may have to reduce our estimated reserves; 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; increased exposure to multi-employer pension plan liabilities;
minimum funding requirements by the Pension Protection Act of 2006 (the
Pension Act) coupled with the significant investment and plan asset losses
suffered during the recent economic decline has exposed us to making
additional required cash contributions to fund the pension benefit plans which
we sponsor and the multi-employer pension benefit plans in which we
participate; 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 and their 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 anti-takeover effects of our rights
plan could prevent a change of control; increased exposure on our financial
performance due to the degree we are leveraged; replacing our natural gas
reserves, which if not replaced, will cause our gas reserves and gas
production to decline; our ability to acquire water supplies needed for 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; changes in federal or
state income tax laws, particularly in the area of percentage depletion and
intangible drilling costs, could cause our financial position and
profitability to deteriorate; 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.

SOURCE CONSOL Energy Inc.

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