CONSOL Energy Reports Fourth Quarter Net Income of $150 million, or $0.65 per Diluted Share; Annual 2012 Net Income of $388

CONSOL Energy Reports Fourth Quarter Net Income of $150 million, or $0.65 per
 Diluted Share; Annual 2012 Net Income of $388 million, or $1.70 per Diluted
              Share; Quarterly Coal Costs Per Ton Fall to $48.21

PR Newswire

PITTSBURGH, Jan. 31, 2013

PITTSBURGH, Jan. 31, 2013 /PRNewswire/ --CONSOL Energy Inc. (NYSE: CNX), the
leading diversified fuel producer in the Eastern United States, reported net
income for the quarter ended December 31, 2012 of $150 million, or $0.65 per
diluted share, compared to $196 million, or $0.85 per diluted share from the
year-earlier quarter. Net income for 2012 was $388 million, or $1.70 per
diluted share, compared to $632 million, or $2.76 per diluted share for 2011.

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

CONSOL's fourth quarter earningsincluded two discrete items. The company
recorded a pre-tax charge of $13 million, or $0.04 per dilutive share (after
tax), for a voluntary severance program for certain active salaried corporate
and operation support employees and realized a pre-tax gain of $90 million, or
$0.26 per dilutive share (after tax), on the sale of assets.

"CONSOL Energy continued to re-balance its world class portfolio of assets in
2012," commented J. Brett Harvey, chairman and CEO, "while successfully
managing our coal and gas businesses through a very challenging environment.
In our Coal Division for 2012, we worked with our domestic thermal coal
customers and the railroads throughout the year to keep contracted shipments
flowing despite weak markets. We carefully managed both thermal and
metallurgical coal production to avoid building inventory. Our 100%-owned
Baltimore Terminal saw near-record shipments, as CONSOL was able to continue
to participate in the growth of world coal markets. CONSOL executed well in a
tough macro environment characterized by a tepid economy and unusually warm
winter weather."

In the Gas Division, 2012 represented the first full year of drilling for
CONSOL Energy with its joint venture partner, Noble Energy, Inc., in the
Marcellus Shale. The year was characterized by a broad strategic shift, as
drilling shifted from the dry gas area to the wet gas area of the play in
order to enhance margins. The company also saw success from its exploration
program in the Ohio Utica Shale.

During 2012, CONSOL Energy sold non-revenue producing assets for $350 million.
Assets sold included coal reserves and/or resources from Central Appalachia,
the Powder River Basin, and western Canada. CONSOL expects to continue to sell
assets in 2013. CONSOL also benefited in 2012 from the $328 million annual
payment from Noble Energy. This was the second of three annual installments.
Because of cash inflows from these items, cash from operations, and cash on
hand, the company was able to fund its 2012 capital expenditures of $1.57
billion without incurring any net short-term debt on its revolving credit
facilities.

"When investors step back for a minute and consider that in the past two
years, CONSOL Energy has earned over $1 billion in net income and generated
$2.3 billion in operating cash flow," continued Mr. Harvey, "I think they'll
realize that we've executed at a level — in both good and challenging times —
that few, if any, of our peers in the energy industry can match. This is why I
believe that CONSOL Energy deserves to be a core holding for energy
investors."

2012 Fourth Quarter Discussion

Total company sales revenue was $1.2 billion. This was lower than the $1.4
billion from the year-earlier quarter, which was the highest ever achieved by
CONSOL in a fourth quarter. The decrease was due to lower coal sales volumes
of 500,000 tons, as well as lower average sales prices for the company's
low-vol and high-vol coal categories, at $129 and $68 per short ton, FOB mine,
respectively. Thermal coal average sales prices, meanwhile, increased to $63
per ton. Coal margins, across all of the company's sales, were $18.20 per ton,
a decrease of $0.68 per ton from the year-earlier quarter. Lower sales
volumes and slightly smaller coal margins drove a decrease in Adjusted
EBITDA^1, a non-GAAP financial measure, ^ and cash flow from operations.
Adjusted EBITDAin the quarter ended December 31, 2012 was $419 million, down
from $440 million in the year-earlier quarter. Cash flow from operations was
$198 million, versus $275 million. Capital expenditures were $423 million in
the current quarter, compared to $385 million for the December 2011 quarter.

The Gas Division reported net income of $9.4 million, which was nearly
identical to year-earlier quarter, after adjusting for that quarter's $33
million (after-tax) gain from the Hess transaction. Higher production volumes
were offset by smaller margins. The company remains encouraged that within the
overall cost structure, the (fully-loaded) costs associated with its Marcellus
Shale operations were $2.83 per Mcfe.

^1 The 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

Overall costs per ton sold in the 2012 fourth quarter were $48.21, or a
decrease of $4.43 from the $52.64 in the fourth quarter of 2011. This is the
lowest quarterly cost per ton for any quarter of 2012. Cost containment has
been a major focus of CONSOL Energy in 2012, as the company has sought to
maintain overall margins in the face of weaker prices for its metallurgical
coals.

Costs per ton sold for low-vol coal were $2.86 higher than the prior year's
quarter, due to inventory valuation changes. Price-related royalties and
production taxes declined significantly. All other cost categories showed
meaningful declines, except for DD&A, which was higher due to increased
capital investment and lower volumes.

Costs per ton sold for high-vol coal were $8.23 lower than the prior year's
quarter, as a result of fewer maintenance and repair projects. Additionally,
the higher-cost Fola Mine was idle during the just-ended quarter.

Costs per ton sold for thermal coal were $3.92 lower than the prior year's
quarter, as the higher-cost Fola Mine was idle. Additionally, the mines
producing high-vol coal had lower straight-time and overtime expenses, lower
supply costs, and fewer maintenance and repair projects.



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
                    December    December    December   December   December   December
                    31,         31,         31,        31,        31,        31,
                    2012        2011        2012       2011       2012       2011
Beginning
Inventory           0.4         0.1         —          —          1.3        1.6
(millions of tons)
Coal Production     0.7         1.4         0.7        1.2        12.9       12.6
(millions of tons)
Ending Inventory    0.2         0.2         —          —          1.2        1.6
(millions of tons)
Sales - Company
Produced (millions  0.8         1.3         0.7        1.2        13.1       12.6
of tons)
Sales Per Ton       $  128.78   $  191.69   $  68.29   $  76.00   $  62.53   $  58.83
Beginning
Inventory Cost Per  $  87.32    $  67.35    $  —       $  —       $  51.55   $  52.89
Ton
Total Direct Costs  $  36.73    $  38.84    $  29.30   $  34.64   $  29.26   $  32.58
Per Ton
Royalty/Production  6.80        11.87       1.55       2.75       3.84       4.05
Taxes Per Ton
Direct Services to  7.27        3.60        5.07       5.74       4.14       4.29
Operations Per Ton
Retirement and      6.43        7.41        3.60       4.29       3.58       4.55
Disability Per Ton
DD&A Per Ton        10.80       7.07        6.93       7.26       5.95       5.99
Total Production    $  68.03    $  68.79    $  46.45   $  54.68   $  46.77   $  51.46
Costs
Ending Inventory    $  86.38    $  67.60    $  —       $  —       $  50.94   $  58.32
Cost Per Ton
Total Cost Per Ton  $  71.71    $  68.85    $  46.45   $  54.68   $  46.88   $  50.80
Sold
Average Margin Per  $  57.07    $  122.84   $  21.84   $  21.32   $  15.65   $  8.03
Ton Sold
Addback: DD&A Per   $  10.80    $  7.07     $  6.93    $  7.26    $  5.95    $  5.99
Ton
Average Margin Per  $  67.87    $  129.91   $  28.77   $  28.58   $  21.60   $  14.02
Ton, before DD&A
Cash Flow before
Cap. Ex and DD&A    $  54       $  169      $  20      $  34      $  283     $  177
($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.

Coal Marketing Update

Low-Vol: Since November 2012, demand for low-vol coal has improved modestly in
Asia, South America, Europe, and domestically. After a period of de-stocking
in China, customers have re-entered the market to purchase capesize vessels of
low-vol coal through the 2013 first quarter. For the Brazilian steel
industry, recent changes in monetary, fiscal and tax policies have resulted in
improved steel mill utilization rates. Although economic conditions throughout
Europe are challenging, several blast furnaces have re-started operations.
These revived blast furnaces have sustained the European demand for Buchanan
low-vol coking coal.

Strategically, CONSOL is attempting to diversify its customer base to include
more domestic customers. CONSOL has succeeded in obtaining two new domestic
customers in 2013.

High-Vol: CONSOL's high-vol coal has been penetrating new end-markets in both
the U.S. and internationally. New test cargoes to steel mills in the U.S. and
Brazil present opportunities for increased sales, while existing customers
have re-affirmed interest to increase their blend of high-vol coal. In the
Asian market, CONSOL's high-vol coal is benefiting from that China's
re-stocking and fiscal stimulus. Shipments of high-vol coal to China resumed
in November 2012 and are scheduled to continue through the end of 2013 first
quarter. If demand continues, consistent shipments could occur throughout the
remainder of 2013.

U.S. and Global Thermal:Under CONSOL's base case, the company's Northern
Appalachian (NAPP) thermal coal is 100% sold for 2013.However, certain surge
capacity exists to supply incremental volumes if additional demand
materializes. Because the first part of winter has been mild, current PJM-area
generator stockpiles are slightly above their five-year average. Normal
winter weather has started and we expect PJM-area generator stockpiles to
decline accordingly. Customer demand for contracted coal has been steady.
The company expects to continue to broaden its end-markets for our NAPP
thermal coal and participate in the growth in world markets. The market for
CONSOL's NAPP thermal coal in Europe remains stable from high natural gas
prices, a carbon market which facilitates the use of coal, and uncertainties
related to the future of government subsidies for renewable energy. During the
2012 fourth quarter, new markets were established for CONSOL's Pittsburgh #8
seam thermal coal with customers in the Caribbean Region and in South America.

The Asian markets are exhibiting signs of increased demand and pricing. We
expect India to import at least 30 million tons of incremental thermal coal in
2013 based on normal power and domestic production shortages. CONSOL's high
Btu Pittsburgh #8 seam thermal coal has been successfully used by power
producers in India during 2012.

For 2013, CONSOL Energy expects 5 - 10 million tons of its coal, across all
sales categories, will be exported.

Gas Division Results

CONSOL Energy released detailed information on its gas operations in a release
dated January 18, 2013.

Coalbed Methane (CBM): Total production was 21.4 Bcf, a decrease of 10% from
the 23.8 Bcf produced in the year-earlier quarter. The company has been
shifting rigs and capital toward higher potential return Marcellus and Utica
drilling prospects.

Marcellus Shale: Total production was 12.4 Bcf (net to CONSOL), an increase
of 73% from the 7.2 Bcf produced in the year-earlier quarter. The increase is
attributable to increased drilling and longer laterals.

Shallow: Total production was 7.4 Bcf, a decrease of 10% from the 8.2 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 0.7 Bcf, an increase of 19% from
the 0.6 Bcf produced in the year-earlier quarter.

The table on the next page shows the quarterly comparison of key metrics for
the Gas Division:



GAS DIVISION RESULTS — Quarter-to-Quarter Comparison
                                           Quarter       Quarter
                                           Ended         Ended
                                           December 31,  December 31,
                                           2012          2011
Total Revenue and Other Income ($ MM)      $    212.2    $     269.7
Net Income                                 $    9.4      $     43.0
Net Cash from Operating Activities ($ MM)  $    (57.0)   $     16.1
Total Period Production (Bcfe)             41.8          39.7
Average Daily Production (MMcfe)           454.7         431.2
Capital Expenditures ($ MM)                $    124.4    $     129.5
Production results are net of royalties.



PRICE AND COST DATA PER MCFE — Quarter-to-Quarter Comparison
                                               Quarter           Quarter
                                               Ended             Ended
                                               December 31,      December 31,
                                               2012              2011
Average Sales Price                            $4.44             $4.68
Costs - Production
Lifting                                        $0.52             $0.77
Ad Valorem, Severance and Other Taxes          $0.17             $0.15
DD&A                                           $1.11             $1.00
Total Production Costs                         $1.80             $1.92
Costs - Gathering
Operating Costs                                $0.62             $0.64
Transportation                                 $0.51             $0.34
DD&A                                           $0.19             $0.21
Total Gathering Costs                          $1.32             $1.19
Gas Direct Administrative Selling & Other      $0.28             $0.37
Total Costs                                    $3.40             $3.48
Margin                                         $1.04             $1.20
Note: Costs − Administration excludes incentive compensation and other
corporate expenses.

Lifting costs were improved due to decreased road maintenance, decreased
contract pumping and well tending services, and decreased swabbing, fishing,
and scale removal costs, all of which were due in part to current cost
containment efforts. Higher severance taxes were caused by the enactment of
the Pennsylvania impact fee on Marcellus Shale wells in 2012.

Gas Acreage Update

Under our joint venture agreements with Noble Energy and Hess Corporation,
each of them has the right to perform due diligence on the title to the oil
and gas interests which we conveyed to them and to assert that title to the
acreage is defective. If they establish any title defects which are not
resolved in favor of CONSOL Energy or if the subject acreage is reassigned to
us at our request, then subject to certain deductibles, Noble's and Hess's
respective aggregate carried cost obligation under the joint venture
agreements will be reduced by the value the parties previously allocated to
the affected acreage in the transaction.

To date, in our Marcellus Shale joint venture transaction, Noble has asserted
formal title defects with respect to approximately 25,780 gross deal acres,
which have an aggregate transaction value of $175 million. We believe that we
will resolve most of those defects favorably to CONSOL Energy. To date, we
have conceded defects to Noble which have an aggregate transaction value equal
to less than the applicable deductibles and the impact of these conceded
defects on the Company's financial statements has not been material.

In the case of our Ohio Utica Shale joint venture with Hess, based on title
work performed by Hess, we believe that there are chain of title issues with
respect to approximately 36,000 of the joint venture acres, most of which
likely cannot be cured. Hess's 50% interest in these 36,000 acres has an
allocated transaction value of approximately $146 million. The loss of these
Utica Shale acres will not have a material impact on the Company's financial
statements. After accounting for these defective acres, there are
approximately 161,000 acres in our Ohio Utica Shale joint venture with Hess.
Separately, CONSOL has acquired approximately 6,600 net Utica Shale acres in
our area of mutual interest with Hess. In addition, the joint venture has an
active leasing program in Ohio and has pending acquisitions totaling
approximately 10,000 gross acres. As previously disclosed, CONSOL and Hess
plan to drill 27 Utica Shale joint venture wells in 2013.

CONSOL is also in negotiations with the authority that operates the Pittsburgh
International Airport for the lease of the oil and gas rights on approximately
8,800 acres surrounding the airport. These are contiguous acres which are in
the liquids area of the Marcellus Shale play.

Finally, we have a 100% interest in an additional approximately 60,000 net
Marcellus Shale acres in Pennsylvania and West Virginia which were not
included in the original joint venture transaction with Noble Energy. This
acreage includes approximately 24,000 net acres that were held out of the
transaction because of consent requirements and preferential rights, but which
are included in our reported acreage numbers, and approximately 36,000 acres
which we believe we control based further review of our land files, subject to
title verification. We intend to either offer a 50% interest in these acres to
Noble Energy for development as part of the joint venture, sell these acres to
a third party, or seek to develop the acres on a 100% basis.

CONSOL Energy 2013 Production Guidance

CONSOL Energy expects its net gas production to be between 170-180 Bcfe (net
to CONSOL) for 2013. First quarter gas production, net to CONSOL, is expected
to be approximately 39 - 41 Bcfe, as fracking schedules and other seasonal
factors are expected to limit wells turned online.

Total hedged gas production in the 2013 first quarter is 17.0 Bcf, at an
average price of $4.66 per Mcf. The annual gas hedge position for three years
is shown in the table below:



GAS DIVISION GUIDANCE
                                    2013     2014   2015
Total Yearly Production (Bcfe)      170-180  N/A    N/A
Volumes Hedged (Bcf),as of 1/18/13  69.1     58.8   40.6
Average Hedge Price ($/Mcf)         $4.66    $4.87  $4.10



COAL DIVISION GUIDANCE
                                  Q1 2013     2013        2014       2015
Estimated Coal Sales (millions    14.0        56.3        61.6       63.8
of tons)
Est. Low-Vol Met Sales            0.9         3.9         5.0        5.1
Tonnage: Firm                     0.8         1.5         —          —
Avg. Price: Sold (Firm)           $  121.48   $  115.63   $  —       $  —
Est. High-Vol Met Sales           1.1         1.8         4.8        6.3
Tonnage: Firm                     1.1         1.4         0.2        0.2
Avg. Price: Sold (Firm)           $  64.24    $  62.95    $  75.53   $  74.74
Est. Thermal Sales                11.9        50.1        51.1       51.7
Tonnage: Firm                     11.5        48.7        23.7       15.0
Avg. Price: Sold (Firm)           $  58.76    $  59.06    $  59.92   $  61.42

Note: While the data in the table are presented as a single point estimates,
the inherent uncertainty of markets and mining operations means that investors
should consider a reasonable range around these estimates. 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. There are no collared tons in 2013. 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. Collared tons in 2015 are 8.7 million tons, with a
ceiling of $57.43 per ton and a floor of $44.86 per ton. Total Amonate
estimated coal sales for Q1 2013 are 0.1 million tons. Calendar years 2013,
and 2014, and 2015 include 0.5, 0.7, and 0.7 million tons, respectively, from
Amonate. The Amonate tons are not included in the category breakdowns.

Liquidity

Total company liquidity as of December 31, 2012 was $2.4 billion, including
cash of $21.9 million.

As of December 31, 2012, CONSOL Energy had $1,418.2 million in total
liquidity, which is comprised of $18.5 million of cash 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 $100.3
million.

As of December 31, 2012, CNX Gas Corporation had $933.2 million in total
liquidity, which is comprised of $3.4 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.

About CONSOL Energy Inc.

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. As
of December 31, 2011, the company had 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.The company will host 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.A set of slides
accompanying the call have been posted to the web site.

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
                                                  December 31,
                                                  2012             2011
Net Income                                        $      149,903   $  195,635
Add: Interest Expense                            51,272           58,381
Less: Interest Income                             (3,959)          (8,118)
Add: Income Taxes                                48,773           42,035
Earnings Before Interest & Taxes (EBIT)           245,989          287,933
Add: Depreciation, Depletion & Amortization      159,732          151,785
Earnings Before Interest, Taxes and DD&A          405,721          439,718
(EBITDA)
Adjustments:
Voluntary Severance Incentive Program             13,304           —
Total Pre-tax Adjustments                         13,304           —
Adjusted Earnings Before Interest, Taxes and      $      419,025   $  439,718
DD&A ( Adjusted EBITDA)

Forward-Looking 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.



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(UNAUDITED)     Three Months Ended                Year Ended
                December 31,                      December 31,
                2012               2011           2012                  2011
Sales—Outside   $      1,241,141   $  1,367,646   $       4,825,946     $  5,660,813
Sales—Gas
Royalty         14,698             14,738         49,405                66,929
Interests
Sales—Purchased 873                1,047          3,316                 4,344
Gas
Freight—Outside 15,741             75,225         141,936               231,536
Other Income    116,508            83,552         409,704               153,620
Total Revenue
and Other       1,388,961          1,542,208      5,430,307             6,117,242
Income
Cost of Goods
Sold and Other
Operating
Charges
(exclusive of   833,493            880,922        3,421,953             3,501,298
depreciation,
depletion and
amortization
shown below)
Gas Royalty
Interests'      10,951             12,749         38,867                59,331
Costs
Purchased Gas   588                981            2,711                 3,831
Costs
Freight Expense 15,741             75,225         141,936               231,347
Selling,
General and     38,659             45,156         148,071               175,467
Administrative
Expenses
Depreciation,
Depletion and   159,732            151,785        622,780               618,397
Amortization
Interest        51,272             58,381         220,060               248,344
Expense
Taxes Other     80,112             79,339         336,655               344,460
Than Income
Abandonment of
Long-Lived      —                  —              —                     115,817
Assets
Loss on Debt    —                  —              —                     16,090
Extinguishment
Transaction and —                  —              —                     14,907
Financing Fees
Total Costs     1,190,548          1,304,538      4,933,033             5,329,289
Earnings Before 198,413            237,670        497,274               787,953
Income Taxes
Income Taxes    48,773             42,035         109,201               155,456
Net Income      149,640            195,635        388,073               632,497
Less: Net
Income
Attributable to 263                —              397                   —
Noncontrolling
Interest
Net Income
Attributable to
CONSOL Energy   $      149,903     $  195,635     $       388,470       $  632,497
Inc.
Shareholders
Earnings Per
Share:
Basic           $      0.66        $  0.86        $       1.71          $  2.79
Dilutive        $      0.65        $  0.85        $       1.70          $  2.76
Weighted
Average Number
of Common
Shares
Outstanding:
Basic           227,898,021        226,971,597    227,593,524           226,680,369
Dilutive        229,934,465        229,314,370    229,141,767           229,003,599
Dividends Paid  $      0.250       $  0.125       $       0.625         $  0.425
Per Share



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(UNAUDITED)         Three Months Ended            Year Ended
                    December 31,                  December 31,
                    2012             2011         2012             2011
Net Income          $      149,640   $  195,635   $      388,073   $  632,497
Other Comprehensive
Income:
Treasury Rate Lock
(Net of tax: $-,    —                —            —                (96)
$-, $-, $59)
Actuarially
Determined
Long-Term Liability
Adjustments (Net of 54,151           (65,854)     129,231          (32,813)
tax: ($32,629),
$22,145, ($77,871),
$1,583)
Net Increase in the
Value of Cash Flow
Hedge (Net of tax:
($21,877),          33,960           108,279      114,240          200,700
($69,323),
($73,593),
($129,235))
Reclassification of
Cash Flow Hedges
from Other
Comprehensive       (35,662)         (38,288)     (189,259)        (95,007)
Income to Earnings
(Net of tax:
$23,724, $24,179,
$121,484, $60,925)
Other Comprehensive 52,449           4,137        54,212           72,784
Income
Comprehensive       202,089          199,772      442,285          705,281
Income
Less: Comprehensive
Loss Attributable   263              —            397              —
to Noncontrolling
Interest
Comprehensive
Income Attributable $      202,352   $  199,772   $      442,682   $  705,281
to CONSOL Energy
Inc. Shareholders



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(UNAUDITED)
                                                December31,    December31,
                                                2012            2011
ASSETS
Current Assets:
Cash and Cash Equivalents                       $  21,878       $  375,736
Accounts and Notes Receivable:
Trade                                           428,328         462,812
Notes Receivable                                318,387         314,950
Other Receivables                               131,131         105,708
Accounts Receivable—Securitized                 37,846          —
Inventories                                     247,766         258,335
Deferred Income Taxes                           148,104         141,083
Restricted Cash                                 48,294          —
Prepaid Expenses                                157,360         239,353
Total Current Assets                            1,539,094       1,897,977
Property, Plant and Equipment:
Property, Plant and Equipment                   15,545,204      14,087,319
Less—Accumulated Depreciation, Depletion and    5,354,237       4,760,903
Amortization
Total Property, Plant and Equipment—Net         10,190,967      9,326,416
Other Assets:
Deferred Income Taxes                           444,585         507,724
Restricted Cash                                 20,379          22,148
Investment in Affiliates                        222,830         182,036
Notes Receivable                                25,977          300,492
Other                                           227,077         288,907
Total Other Assets                              940,848         1,301,307
TOTAL ASSETS                                    $  12,670,909   $  12,525,700



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(UNAUDITED)
                                                December31,    December31,
                                                2012            2011
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable                                $  507,982      $  522,003
Current Portion of Long-Term Debt               13,485          20,691
Short-Term Notes Payable                        25,073          —
Accrued Income Taxes                            34,219          75,633
Borrowings Under Securitization Facility        37,846          —
Other Accrued Liabilities                       768,494         770,070
Total Current Liabilities                       1,387,099       1,388,397
Long-Term Debt:
Long-Term Debt                                  3,124,473       3,122,234
Capital Lease Obligations                       50,113          55,189
Total Long-Term Debt                            3,174,586       3,177,423
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions     2,832,401       3,059,671
Pneumoconiosis Benefits                         174,781         173,553
Mine Closing                                    446,727         406,712
Gas Well Closing                                148,928         124,051
Workers' Compensation                           155,648         151,034
Salary Retirement                               218,004         269,069
Reclamation                                     47,965          39,969
Other                                           131,025         124,936
Total Deferred Credits and Other Liabilities    4,155,479       4,348,995
TOTAL LIABILITIES                               8,717,164       8,914,815
Stockholders' Equity:
Common Stock, $.01 Par Value; 500,000,000
Shares Authorized,
228,129,467 Issued and 228,094,712 Outstanding 2,284           2,273
at December 31, 2012;
227,289,426 Issued and 227,056,212 Outstanding
at December31, 2011
Capital in Excess of Par Value                  2,296,908       2,234,775
Preferred Stock, 15,000,000 authorized, None    —               —
issued and outstanding
Retained Earnings                               2,402,551       2,184,737
Accumulated Other Comprehensive Loss            (747,342)       (801,554)
Common Stock in Treasury, at Cost—34,755 Shares
at December 31,                                 (609)           (9,346)
2012 and 233,214 Shares at December31, 2011
Total CONSOL Energy Inc. Stockholders' Equity   3,953,792       3,610,885
Noncontrolling Interest                         (47)            —
TOTAL EQUITY                                    3,953,745       3,610,885
TOTAL LIABILITIES AND EQUITY                    $  12,670,909   $  12,525,700



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Dollars in thousands, except per share data)
                                                        Accumulated                 Total
                          Capitalin
                                         Retained       Other          Common       CONSOL         Non-
               Common     Excess                                                                                Total
(UNAUDITED)                              Earnings       Comprehensive  Stockin     EnergyInc.    Controlling
               Stock      ofPar                                                                                Equity
                                         (Deficit)      Income         Treasury     Stockholders'  Interest
                          Value
                                                        (Loss)                      Equity
Balance at
December31,   $  2,273   $  2,234,775   $  2,184,737   $  (801,554)   $  (9,346)   $  3,610,885   $     —      $  3,610,885
2011
Net Income     —          —              388,470        —              —            388,470        (397)        388,073
Gas Cash Flow
Hedge (Net of  —          —              —              (75,019)       —            (75,019)       —            (75,019)
$47,891 Tax)
Actuarially
Determined
Long-Term
Liability      —          —              —              129,231        —            129,231        —            129,231
Adjustments
(Net of
($77,871) Tax)
Comprehensive  —          —              388,470        54,212         —            442,682        (397)        442,285
Income
Issuance of    —          —              (28,378)       —              8,737        (19,641)       —            (19,641)
Treasury Stock
Issuance of    11         8,267          —              —              —            8,278          —            8,278
Common Stock
Tax Benefit
From           —          6,028          —              —              —            6,028          —            6,028
Stock-Based
Compensation
Amortization
of Stock-Based —          47,838         —              —              —            47,838         —            47,838
Compensation
Awards
Net Change in
Noncontrolling —          —              —              —              —            —              350          350
Interest
Dividends
($0.625 per    —          —              (142,278)      —              —            (142,278)      —            (142,278)
share)
Balance at
December 31,   $  2,284   $  2,296,908   $  2,402,551   $  (747,342)   $  (609)     $  3,953,792   $     (47)   $  3,953,745
2012



CONSOL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
                     Three Months Ended          Year Ended
(UNAUDITED)          December 31,                December 31,
                     2012           2011         2012             2011
Cash Flows from
Operating
Activities:
Net Income           149,640        195,635      $      388,073   $   632,497
Adjustments to
Reconcile Net
Income to Net Cash
Provided By
Operating
Activities:
Depreciation,
Depletion and        159,732        151,785      622,780          618,397
Amortization
Abandonment of       —              —            —                115,817
Long-Lived Assets
Stock-Based          9,415          11,759       47,838           48,842
Compensation
Gain on Sale of      (91,978)       (56,490)     (282,235)        (46,497)
Assets
Loss on Debt         —              —            —                16,090
Extinguishment
Amortization of      840            3,459        4,658            7,608
Mineral Leases
Deferred Income      (1,424)        (53,131)     (6,649)          (53,011)
Taxes
Equity in Earnings   (4,372)        (4,674)      (27,048)         (24,663)
of Affiliates
Changes in
Operating Assets:
Accounts and Notes   (33,577)       (33,558)     (20,218)         (83,770)
Receivable
Inventories          18,773         (16,644)     10,569           (380)
Prepaid Expenses     9,457          5,042        8,095            4,431
Changes in Other     1,920          1,299        (7,041)          17,745
Assets
Changes in
Operating
Liabilities:
Accounts Payable     (25,324)       46,332       (20,106)         144,652
Other Operating      (1,504)        17,557       (12,634)         84,146
Liabilities
Changes in Other     448            877          1,917            30,309
Liabilities
Other                5,920          5,954        20,130           15,393
Net Cash Provided
by Operating         197,966        275,202      728,129          1,527,606
Activities
Cash Flows from
Investing
Activities:
Capital              (423,209)      (384,908)    (1,575,230)      (1,382,371)
Expenditures
Change in            (48,294)       —            (48,294)         —
Restricted Cash
Proceeds from Sales  62,623         52,680       646,565          747,971
of Assets
Distributions From,
net of (Investments  (4,750)        (14,984)     (23,451)         55,876
In), Equity
Affiliates
Net Cash Used in
Investing            (413,630)      (347,212)    (1,000,410)      (578,524)
Activities
Cash Flows from
Financing
Activities:
Payments on
Short-Term           —              —            —                (284,000)
Borrowings
Proceeds from
(Payments on)        22,159         (2,307)      15,594           (11,627)
Miscellaneous
Borrowings
Proceeds from
(Payments on)        37,846         —            37,846           (200,000)
Securitization
Facility
Payments on
Long-Term Notes,     —              —            —                (265,785)
Including
Redemption Premium
Proceeds from
Issuance of          —              —            —                250,000
Long-Term Notes
Tax Benefit from
Stock-Based          6,100          3,247        8,678            8,281
Compensation
Dividends Paid       (56,988)       (28,384)     (142,278)        (96,356)
Proceeds from
Issuance of Common   7,044          —            8,278            —
Stock
(Purchases)
Issuance of          (9,594)        2,814        (9,485)          9,033
Treasury Stock
Debt Issuance and    17             (147)        (210)            (15,686)
Financing Fees
Net Cash Used in
Financing            6,584          (24,777)     (81,577)         (606,140)
Activities
Net (Decrease)
Increase in Cash     (209,080)      (96,787)     (353,858)        342,942
and Cash
Equivalents
Cash and Cash
Equivalents at       230,958        472,523      375,736          32,794
Beginning of Period
Cash and Cash
Equivalents at End  $      21,878   $  375,736   $      21,878    $   375,736
of Period



SOURCE CONSOL Energy Inc.

Website: http://www.consolenergy.com
Contact: Investors: Dan Zajdel at +1-724-485-4169, danzajdel@consolenergy.com
and Tyler Lewis at +1-724-485-3157, tylerlewis@consolenergy.com; Media: Lynn
Seay at +1-724-485-4065, lynnseay@consolenergy.com
 
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