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CONSOL Energy Reports Net Income of $195.8 million

PITTSBURGH, April 23 /PRNewswire-FirstCall/ -- CONSOL Energy Inc. (NYSE: CNX), a high-Btu bituminous coal and natural gas company, had net income attributable to CONSOL Energy shareholders for the quarter ended March 31, 2009 of $195.8 million, or $1.08 per share. This is more than 260% of the net income attributable to CONSOL Energy shareholders of $75.1 million, or $0.41 per share, earned for the quarter ended March 31, 2008.

CONSOL Energy achieved several financial records for the first quarter of 2009 (excluding the 2005 quarter in which gas stock was sold), including net income attributable to CONSOL Energy shareholders of $195.8 million earnings per share of $1.08, EBITDA of $389.5 million, and EBIT of $283.3 million. CONSOL Energy also had record operating cash flows of $249.8 million.

"This was one of the best quarters in the company's history," said J. Brett Harvey, president and chief executive officer. "Despite the weakened economy, CONSOL was able to achieve outstanding net income and earnings per share. Both our coal and gas segments performed extremely well in these difficult times."

FINANCIAL RESULTS - Quarter-To-Quarter Comparison

                                                       Quarter       Quarter
                                                        Ended         Ended
                                                       Mar. 31,      Mar. 31,
                                                          2009          2008
    Total Revenue and Other Income                    $1,218.8      $1,025.7
    Net Income attributable to CONSOL Energy
     shareholders                                       $195.8         $75.1
    Earnings Per Share - diluted                         $1.08         $0.41
    Net Cash from Operating Activities                  $249.8        $146.1
    EBITDA                                              $389.5        $212.7
    EBIT                                                $283.3        $120.0
    Capital Expenditures                                $299.6        $176.3
    Cash (Provided by) Used in  Other Investing
      Activities*                                       ($44.5)       ($17.3)

In millions of dollars except per share. Amounts for capital expenditures do not include amounts for equity affiliates. *Represents net cash used in investment in Equity Affiliates and Proceeds from Sales of Assets.

For 2009, the company has essentially all of its planned coal production priced at an average realized price of $59.83 per ton, or nearly 23 percent higher than 2008 realized pricing. CNX Gas has just over 50 percent of its planned 2009 gas production hedged at an average price of $9.52 per thousand cubic feet.

Quarter-To-Quarter Analysis of Financial Results

Total Revenue and Other Income was $1,218.8 million for the quarter ended March 31, 2009, compared with $1,025.7 million for the March 2008 quarter, or an increase of 18.8 percent. The improvement was due to higher coal pricing and gas production.

Net income attributable to CONSOL Energy shareholders and Earnings per Share were $195.8 million and $1.08 per share, respectively, for the just ended quarter. This was over 260% of the $75.1 million, and $0.41, respectively, from the levels of the March 2008 quarter. Again, the improvement was due to higher coal pricing and gas production.

CONSOL Energy had Net Cash from Operating Activities of $249.8 million for the March 2009 quarter, with $126.4 million attributable to CNX Gas. For CONSOL Energy, this compares to $146.1 million for the March 2008 quarter, an increase of 71.0 percent. Once again, the improvement was due to higher coal pricing and higher gas production.

CONSOL Energy had total capital expenditures of $299.6 million in the March 2009 quarter, with $133.6 million attributable to CNX Gas. For CONSOL Energy, capital expenditures are expected to lessen over the remaining quarters of 2009 as some projects already underway move toward completion.

Liquidity

As of March 31, 2009, CONSOL Energy had $440 million of short-term debt and $364.5 million in total liquidity, which is comprised of $71.6 million of cash and $292.9 million available to be borrowed under its $1.0 billion bank facility. As of March 31, 2009, CNX Gas Corporation had $80.4 million of short-term debt and $104.9 million in total liquidity, which is comprised of $0.2 million of cash and $104.7 million available to be borrowed under its $200.0 million bank facility.

COAL OPERATIONS- Quarter-To-Quarter Comparison

                                                 Quarter      Quarter
                                                  Ended        Ended
                                                 Mar. 31,     Mar. 31,
                                                    2009         2008
    Total Coal Sales (millions of tons)             15.4         16.0
    Sales - Company Produced                        15.4         15.7
    (millions of tons)
    Coal Production (millions of tons)              16.0*        16.2*
    Average Realized Price Per Ton -              $59.63       $43.57
    Company Produced
    Operating Costs Per Ton                       $32.30       $28.32
    Non-Operating Charges Per Ton                  $5.70        $5.16
    DD&A Per Ton                                   $4.24        $3.91
    Total Cost Per Ton - Company Produced         $42.24       $37.39
    Operating Margins Per Ton                     $27.33       $15.25
    Financial Margins Per Ton**                   $17.38        $6.18

Sales and production include CONSOL Energy's portion from equity affiliates and consolidated variable interest entities. Operating costs include items such as labor, supplies, power, preparation costs, project expenditures, subsidence costs, gas well plugging costs, charges for employee benefits (including Combined Fund premiums), royalties, as well as production and property taxes. Non-operating charges include items such as charges for long-term liabilities, direct administration, selling and general administration. Operating Margins Per Ton are defined as Average Realized Price Per Ton less Operating Costs Per Ton. Financial Margins Per Ton are defined as Average Realized Price Per Ton less Total Costs Per Ton - Company Produced. *Includes 0.5 and 0.3 million tons of metallurgical grade coal for the quarters ended March 31, 2009 and 2008 respectively. **May not add due to rounding.

Total coal sales were down in the March 2009 quarter, as the weak economy reduced coal burn at utilities and coal needs of steel companies.

"Because of the economy, CONSOL Energy is working with some of its customers to postpone shipments where needed. We have long term relationships with our customers that we value highly, but we expect to capture the value for our shareholders in the contracts we have signed," continued Mr. Harvey. "One option we're pursuing is spreading the value over future tonnage."

Coal production was 16.0 million tons in the March 2009 quarter, down from 16.2 million tons in the year-earlier quarter. Mr. Harvey continued, "CONSOL Energy will match its production with actual customer shipments. We are in the business of creating value for our shareholders, so we will not produce coal just to build inventory. When shipments rebound, so will our production."

Average realized price was $59.63 per ton, or 36.9 percent higher than in the year-earlier quarter, due to general market conditions.

Operating costs were $32.30 per ton, or 14.1 percent higher than in the year-earlier quarter. Supply and maintenance costs were the largest factor, with the installation of higher grade seals and a higher number of seals being built contributing to the increase. Higher gas well plugging costs, higher roof control costs, and higher equipment maintenance costs were also factors. Additionally, labor costs increased as the result of a 2007 UMWA contract.

Total costs were $42.24 per ton, or 13.0 percent higher than in the year-earlier quarter, with most of the increase coming from operating costs.

Commenting on the costs, Mr. Harvey noted that the idling of some of CONSOL's higher cost mines in the middle of the first quarter could help mitigate unit cost pressures during the rest of 2009.

Operating margins were $27.33 per ton in the March 2009 quarter, an increase of 79.2 percent from $15.25 per ton, due to higher realized pricing per ton. Financial margins were $17.38 per ton, a nearly 3-fold increase from the $6.18 per ton, also due to higher realized pricing.

Other Coal Activities

CNX Marine Terminals loaded approximately 2.2 million tons of coal in the March 2009 quarter, flat with the year-earlier quarter.

Gas Operations

CNX Gas Corporation (NYSE: CXG), 83.3 percent of which is owned by CONSOL Energy, reported total net income attributable to CNX Gas shareholders of $54.9 million for the quarter ended March 31, 2009, compared with $49.9 million in the year earlier quarter. CNX Gas Corporation also issued its earnings release on April 23, 2009. Additional information regarding CNX Gas Corporation financial and operating results for the quarter is available in its release and can be found in the investor section of its website: http://www.cnxgas.com

Outlook

CONSOL Energy now expects to invest $1.0 billion during calendar year 2009. The company continues to monitor and evaluate capital spending to ensure adequate liquidity and to preserve options for possible external investment. The company is committed to completing capital projects in progress, including those that increase capacity and efficiency. CNX Gas expects to invest largely from cash flow generated from operating activities for 2009.

                                      GUIDANCE

                                                   2009       2010       2011
    COAL-COMMITTED TONS W/O PRICING                 N/M       17.2       22.1
    COAL-TONS WITH FIRM PRICING
    Tons Committed and Priced
    (MM tons, 3/31/09)                             59.3       29.5       19.2
         Avg. Realized Price/Ton Committed &
          Priced                                 $58.81     $50.41     $47.96
    COAL-TONS PRICED WITH COLLARS
    Tons                                            0.8        8.0        5.9
        Average Ceiling                          $45.47     $53.71     $67.99
        Average Floor                            $40.13     $45.77     $52.64

Note: Tons priced with ceilings and floors are not included in tons with firm pricing; they are additive. Although there is no assurance that customers with contracts will perform under these contracts, CONSOL Energy expects to capture the value of contracts through negotiated or legal means.

Production Targets

CONSOL Energy has revised its production target from 63 million tons to 62 million tons for calendar year 2009. For the second quarter of 2009, CONSOL Energy expects production to be approximately 14.9 million tons. CNX Gas raised its previously announced production guidance of 85 to 87 billion cubic feet (Bcf) for calendar year 2009.

Outlook Summary

Global demand for both coal and gas has been adversely impacted by the current economic recession and has led to lower capacity utilization in the industrial production sector. CONSOL Energy believes that a reduction in electricity generation load has been the major factor year-to-date regarding the demand for steam coal and natural gas. Consequently, this has led to higher stockpiles of coal at power generators when compared to historical averages as well as elevated natural gas storage levels as the country enters the shoulder season.

"Clearly, coal stockpile levels at power generators and the domestic gas storage level is impacting near-term pricing," noted Mr. Harvey. "However, we believe that the rapid response by coal and natural gas producers will bring the current oversupplied situation back to equilibrium more rapidly than in previous downturns. We believe that stockpile levels for utilities burning Northern Appalachian coals are still at significantly lower levels than those burning PRB coals. In addition, energy companies with less than stellar financial positions could find it very difficult to obtain reasonable financing terms to maintain their operations. We believe that this will impact supply and could set the stage for higher coal and natural gas prices as early as 2010."

"CONSOL Energy is doing just what we said we'd do last quarter," continued Mr. Harvey. "We're aggressively managing coal production at our mines, carefully managing our relatively low inventory levels, and monitoring our liquidity during this period of tight credit markets and cloudy economic outlook. As a low-cost producer in both coal and gas, I believe that CONSOL Energy and CNX Gas will continue to provide excellent value for shareholders."

CONSOL Energy Inc., a high-Btu bituminous coal and natural gas company, is a member of the Standard & Poor's 500 Equity Index and the Fortune 500. It has 17 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.5 billion tons. It is also a majority owner of CNX Gas Corporation, a leading Appalachian gas producer, with proved reserves of over 1.4 trillion cubic feet. Additional information about CONSOL Energy can be found at its web site: www.consolenergy.com.

Definition: EBIT is defined as earnings (excluding cumulative effect of accounting change) before deducting net interest expense (interest expense less interest income) and income taxes. EBITDA is defined as earnings (excluding cumulative effect of accounting change) before deducting net interest expense (interest expense less interest income), income taxes and depreciation, depletion and amortization. Although EBIT and 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 flow. EBIT and EBITDA do not purport to represent cash generated by operating activities and should not be considered in isolation or as a substitute for measures of performance in accordance with generally accepted accounting principles. In addition, because all companies do not calculate EBIT or EBITDA identically, the presentation here may not be comparable to similarly titled measures of other companies. Reconciliation of EBITDA and EBIT to the income statement is as follows:

                                   CONSOL Energy
                           EBIT & EBITDA Reconciliation
                                   (000) Omitted

                                            Quarter    Quarter
                                             Ended      Ended
                                           03/31/09   03/31/08

    Net income attributable to
     CONSOL Energy shareholders            $195,819    $75,082

    Add:     Interest Expense                 8,512     10,176
    Less:    Interest Income                   (434)      (839)
    Less:    Interest Income on
             Black Lung Excise
             Tax Refund                        (352)
    Add:     Income Taxes                    79,735     35,553
                                           --------   --------
    Earnings Before Interest &
    Taxes  (EBIT)                           283,280    119,972

    Add:     Depreciation,
             Depletion & Amortization       106,219     92,728
                                           --------   --------
    Earnings Before Interest,
    Taxes and DD&A   (EBITDA)              $389,499   $212,700
                                           ========   ========

For purposes of this press release, references to "CONSOL Energy," the "company," "we," "our," or "us" or similar words (other than the legal names of companies) shall include CONSOL Energy Inc. and its respective subsidiaries.

Forward-Looking Statements

Various statements in this document, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995). The forward-looking statements may include projections and estimates concerning the timing and success of specific projects, our future production, revenues, income and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "would," "will," "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 unless required by securities law, 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, uncertainties and contingencies include, but are not limited to: the deteriorating economic conditions; an extended decline in prices we receive for our coal and gas affecting our operating results and cash flows; reliance on customers honoring existing contracts, extending existing contracts or entering into new long-term contracts for coal; reliance on major customers; our inability to collect payments from customers if their creditworthiness declines; the disruption of rail, barge and other systems that deliver our coal; a loss of our competitive position because of the competitive nature of the coal industry and the gas industry, or a loss of our competitive position because of overcapacity in these industries impairing our profitability; our inability to hire qualified people to meet replacement or expansion needs; coal users switching to other fuels in order to comply with various environmental standards related to coal combustion; the inability to produce a sufficient amount of coal to fulfill our customers' requirements which could result in our customers initiating claims against us; foreign currency fluctuations could adversely affect the competitiveness of our coal abroad; the risks inherent in coal mining being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant construction or repair of equipment, fires, accidents and weather conditions which could impact financial results; increases in the price of commodities used in our mining operations could impact our cost of production; obtaining governmental permits and approvals for our operations; the effects of proposals to regulate greenhouse gas emissions; the effects of government regulation; the effects of stringent federal and state employee health and safety regulations; the effects of mine closing, reclamation and certain other liabilities; uncertainties in estimating our economically recoverable coal and gas reserves; the outcomes of various legal proceedings, which proceedings are more fully described in our reports filed under the Securities Exchange Act of 1934; increased exposure to employee related long-term 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 current 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; our ability to comply with laws or regulations requiring that we obtain surety bonds for workers' compensation and other statutory requirements; acquisitions that we recently have made 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; the anti-takeover effects of our rights plan could prevent a change of control; risks in exploring for and producing gas; new gas development projects and exploration for gas in areas where we have little or no proven gas reserves; the disruption of pipeline systems which deliver our gas; the availability of field services, equipment and personnel for drilling and producing gas; replacing our natural gas reserves which if not replaced will cause our gas reserves and gas production to decline; costs associated with perfecting title for gas rights in some of our properties; location of a vast majority of our gas producing properties in three counties in southwestern Virginia, making us vulnerable to risks associated with having our gas production concentrated in one area; other persons could have ownership rights in our advanced gas extraction techniques which could force us to cease using those techniques or pay royalties; our ability to acquire water supplies needed for drilling, or our ability to dispose of water used or removed from strata at a reasonable cost and within applicable environmental rules; the coalbeds and other strata from which we produce methane gas frequently contain impurities that may hamper production; the enactment of Pennsylvania severance tax on natural gas may impact results of existing operations and impact the economic viability of exploiting new gas drilling and production opportunities in Pennsylvania; our hedging activities may prevent us from benefiting from price increases and may expose us to other risks; and other factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 under "Risk Factors," as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.

    Contact:  Dan Zajdel at (724) 485-4169

                 CONSOL ENERGY INC. AND SUBSIDIARIES
                             (Unaudited)
                  CONSOLIDATED STATEMENTS of INCOME
            (Dollars in thousands - except per share data)


                                                        Three Months Ended
                                                            March 31,
                                                            ---------
                                                        2009         2008
                                                        ----         ----

    Sales - Outside                               $1,150,244     $886,325
    Sales - Gas Royalty Interests                     12,632       16,504
    Sales - Purchased Gas                              1,465        3,539
    Freight - Outside                                 30,916       44,744
    Other Income                                      23,494       74,619
                                                      ------       ------
      Total Revenue and Other Income               1,218,751    1,025,731
    Cost of Goods Sold and Other
      Operating Charges (exclusive of
       depreciation, depletion and amortization
       shown below)                                  667,974      636,728
    Gas Royalty Interests' Costs                      10,591       16,074
    Purchased Gas Costs                                1,530        3,421
    Freight Expense                                   30,916       44,744
    Selling, General and Administrative
     Expense                                          30,816       30,470
    Depreciation, Depletion and Amortization         106,219       92,728
    Interest Expense                                   8,512       10,176
    Taxes Other Than Income                           77,839       71,606
    Black Lung Excise Tax Refund                        (352)
                                                        ----      -------
         Total Costs                                 934,045      905,947
                                                     -------      -------

    Earnings Before Income Taxes                     284,706      119,784
    Income Taxes                                      79,735       35,553
                                                      ------       ------

    Net Income                                       204,971       84,231
      Less: Net Income Attributable to
       Noncontrolling Interest                         9,152        9,149
                                                       -----        -----
       Net Income Attributable to CONSOL
        Energy Inc.                                 $195,819      $75,082
                                                    ========      =======
         Basic Earnings Per Share                      $1.08        $0.41
                                                       =====        =====
         Diluted Earnings Per Share                    $1.08        $0.41
                                                       =====        =====
    Weighted Average Number of
      Common Shares Outstanding:
      Basic                                      180,576,479  182,572,985
                                                 ===========  ===========
      Dilutive                                   182,150,090  185,192,551
                                                 ===========  ===========
    Dividends Paid Per Share                           $0.10        $0.10
                                                       =====        =====



                 CONSOL ENERGY INC. AND SUBSIDIARIES

                     CONSOLIDATED BALANCE SHEETS

           (Dollars in thousands - except per share data)

                                                   (Unaudited)
                                                    March 31,  December 31,
                                                       2009         2008
                                                       ----         ----
    ASSETS
    ------
    Current Assets:
      Cash and Cash Equivalents                     $71,555     $138,512
      Accounts and Notes Receivable:
        Trade                                       259,879      221,729
        Other Receivables                            71,985       79,552
      Inventories                                   277,676      227,810
      Deferred Income Taxes                          48,811       60,599
      Recoverable Income Taxes                                    33,862
      Prepaid Expenses                              269,092      221,750
                                                    -------      -------

          Total Current Assets                      998,998      983,814

    Property, Plant and Equipment:
      Property, Plant and Equipment              10,110,603    9,980,288
        Less - Accumulated Depreciation,
         Depletion and Amortization               4,269,952    4,214,316
                                                  ---------    ---------

        Total Property, Plant and
         Equipment - Net                          5,840,651    5,765,972


    Other Assets:
      Deferred Income Taxes                         310,590      333,543
      Investment in Affiliates                       75,637       72,996
      Other                                         181,411      214,133
                                                    -------      -------

         Total Other Assets                         567,638      620,672

                                                 ----------   ----------
          TOTAL ASSETS                           $7,407,287   $7,370,458
                                                 ==========   ==========




                     CONSOL ENERGY INC. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

                (Dollars in thousands - except per share data)

                                                 (Unaudited)
                                                  March 31,   December 31,
    LIABILITIES AND STOCKHOLDERS' EQUITY              2009          2008
    ------------------------------------              ----          ----

    Current Liabilities:
      Accounts Payable                            $274,730      $385,197
      Short-Term Notes Payable                     520,400       557,700
      Current Portion of Long-Term Debt             22,045        22,401
      Accrued Income Taxes                          28,913
      Other Accrued Liabilities                    511,812       546,442
                                                   -------       -------

        Total Current Liabilities                1,357,900     1,511,740
    Long-Term Debt:
      Long-Term Debt                               393,019       393,312
      Capital Lease Obligations                     70,988        75,039
                                                    ------        ------
        Total Long-Term Debt                       464,007       468,351
    Deferred Credits and Other Liabilities:
      Postretirement Benefits Other
      Than Pensions                              2,494,558     2,493,344
      Pneumoconiosis Benefits                      193,009       190,261
      Mine Closing                                 418,827       404,629
      Workers' Compensation                        130,345       128,477
      Salary Retirement                            188,638       194,567
      Reclamation                                   19,867        38,193
      Other                                        240,516       266,550
                                                   -------       -------

        Total Deferred Credits and
         Other Liabilities                       3,685,760     3,716,021
                                                 ---------     ---------
        Total Liabilities                        5,507,667     5,696,112
    Stockholders' Equity:
      Common Stock, $.01 par value;
        500,000,000 Shares Authorized,
        183,014,426 Issued and
        180,603,707 Outstanding at March 31,
        2009; 183,014,426
        Issued and 180,549,851 Outstanding at
        December 31, 2008                            1,830         1,830
      Preferred Stock, 15,000,000 Shares
       Authorized; None Issued
        and Outstanding                                  -             -
      Capital in Excess of Par Value             1,002,682       993,478
      Retained Earnings                          1,186,324     1,010,902
      Other Comprehensive Loss                    (436,503)     (461,900)
      Common Stock in Treasury, at Cost -
       2,410,719 Shares at March 31, 2009
       and 2,464,575 Shares at
       December 31, 2008                           (80,203)      (82,123)
                                                   -------       -------

          Total CONSOL Energy Inc.
           Stockholders' Equity                  1,674,130     1,462,187

    Noncontrolling Interest                        225,490       212,159
                                                   -------       -------

          Total Equity                           1,899,620     1,674,346

                                                ----------    ----------
          TOTAL LIABILITIES AND EQUITY          $7,407,287    $7,370,458
                                                ==========    ==========



                      CONSOL ENERGY INC. AND SUBSIDIARIES
                                  (Unaudited)
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)

                                                        Three Months Ended
                                                             March 31,
                                                       --------------------
                                                         2009        2008
                                                       --------    --------
    Operating Activities:
      Net Income                                       $204,971     $84,231
      Adjustments to Reconcile Net Income Attributable
       to CONSOL Energy Inc. to Net Cash Provided by
       Operating Activities:
        Depreciation, Depletion and Amortization        106,219      92,728
        Stock-based Compensation                          9,906       5,657
        Gain on the Sale of Assets                       (1,871)     (7,286)
        Amortization of Mineral Leases                    1,671       2,087
        Deferred Income Taxes                            16,452      14,428
        Equity in Earnings of Affiliates                 (3,361)     (1,355)
        Changes in Operating Assets:
          Accounts Receivable Securitization                         11,400
          Accounts and Notes Receivable                 (30,459)    (81,648)
          Inventories                                   (49,866)    (21,167)
          Prepaid Expenses                                2,320       3,091
        Changes in Other Assets                           5,327      13,341
        Changes in Operating Liabilities:
          Accounts Payable                              (43,690)    (13,816)
          Other Operating Liabilities                    26,250       3,487
        Changes in Other Liabilities                      2,938      38,837
        Other                                             2,973       2,078
                                                       --------    --------
        Net Cash Provided by Operating Activities       249,780     146,093
                                                       --------    --------
    Investing Activities:
      Capital Expenditures                             (299,560)   (176,342)
      Net Investment in Equity Affiliates                   720       1,536
      Proceeds from Sales of Assets                      43,827      15,803
                                                       --------    --------
        Net Cash Used in Investing Activities          (255,013)   (159,003)
                                                       --------    --------
    Financing Activities:
      Proceeds from (Payments on) Miscellaneous
       Borrowings                                        (6,425)      5,001
      Proceeds from (Payments on) Short-Term
       Borrowings                                       (37,300)     32,500
      Tax Benefit from Stock-Based Compensation             140       9,521
      Dividends Paid                                    (18,060)    (18,255)
      Issuance of Treasury Stock                            121       5,270
      Purchases of Treasury Stock                                        (3)
      Noncontrolling Interest Member Distribution          (200)
                                                       --------    --------
        Net Cash Provided by(Used in) Financing
         Activities                                     (61,724)     34,034
                                                       --------    --------
    Net Increase(Decrease) in Cash and Cash
     Equivalents                                        (66,957)     21,124
    Cash and Cash Equivalents at Beginning of Period    138,512      41,651
                                                       --------    --------
    Cash and Cash Equivalents at End of Period          $71,555     $62,775
                                                       ========    ========



                   CONSOL ENERGY INC. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF EQUITY
              (Dollars in Thousands - except per share data)


                                        Capital                  Other
                                          in                    Compre-
                                        Excess     Retained     hensive
                             Common     of Par     Earnings     Income
                              Stock      Value     (Deficit)    (Loss)
                              -----      -----     ---------    ------

    Balance -
      December 31, 2008       $1,830    $993,478  $1,010,902   $(461,900)
                              ------    --------  ----------   ---------

    (Unaudited)

      Net Income                   -           -     195,819           -
      Treasury Rate Lock
       (Net of ($12) tax)          -           -           -         (20)
      FASB 158 Long-Term
       Liability Adjustment
       (Net of $915 tax)           -           -           -       1,497
      Gas Cash Flow Hedge
       (Net of $18,295 tax)        -           -           -      23,920
                                  --          --          --      ------
      Comprehensive Income         -           -     195,819      25,397

      Issuance of Treasury
       Stock                       -           -      (2,337)          -
      Tax Benefit from Stock-
       Based Compensation          -         140           -           -
      Amortization of Stock-
       Based Compensation
       Awards                      -       8,786           -           -
      Stock-Based Compensation
       Awards to CNX Gas           -         278           -           -
      Net Change in Crown
       Drilling Noncontrolling
        Interest                   -           -           -           -
      Dividends ($0.10 per
       share)                      -           -     (18,060)          -
                                  --          --     -------          --

    Balance -
      March 31, 2009          $1,830  $1,002,682  $1,186,324   $(436,503)
                              ======  ==========  ==========   =========


                                        Total
                                        CONSOL
                                      Energy Inc.
                                        Stock-     Noncon-
                            Treasury   holders'    trolling      Total
                              Stock     Equity     Interest     Equity
                              -----     ------     --------     ------

    Balance -
      December 31, 2008     $(82,123) $1,462,187    $212,159  $1,674,346
                            --------  ----------    --------  ----------

    (Unaudited)

      Net Income                   -     195,819       9,152     204,971
      Treasury Rate Lock
        (Net of ($12) tax)         -         (20)          -         (20)
      FASB 158 Long-Term
       Liability Adjustment
       (Net of $915 tax)           -       1,497          (4)      1,493
      Gas Cash Flow Hedge
       (Net of $18,295 tax)        -      23,920       4,785      28,705
                                  --      ------       -----      ------
      Comprehensive Income         -     221,216      13,933     235,149

      Issuance of Treasury
       Stock                   1,920        (417)          -        (417)
      Tax Benefit from
       Stock-Based
       Compensation                -         140           -         140
      Amortization of Stock-
       Based Compensation
       Awards                      -       8,786       1,120       9,906
      Stock-Based Compensation
       Awards to CNX Gas           -         278        (278)          -
      Net Change in Crown
       Drilling Noncontrolling
       Interest                    -           -      (1,444)     (1,444)
      Dividends ($0.10 per
       share)                      -     (18,060)          -     (18,060)
                                  --     -------          --     -------

    Balance -
      March 31, 2009        $(80,203) $1,674,130    $225,490  $1,899,620
                            ========  ==========    ========  ==========



SOURCE CONSOL Energy Inc.

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