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Actionable news in CNX: CONSOL ENERGY Inc,

Consol Energy Reports Third Quarter Results;

The following excerpt is from the company's SEC filing.

Net Income of $119 million, or $0.52 per Diluted Share;

2015 E&P Production Guidance Increased to 325 - 330 Bcfe;

Multi-Year Sales Secured to Bring Pennsylvania

Operations to 74% Sold for 2016;

Dry Utica Shale Well in Monroe County, Ohio,

24-Hour IP Rate of 44.7 MMcf per Day

) - CONSOL Energy Inc. (NYSE: CNX) reported net income attributable to CONSOL Energy shareholders of

million for the quarter, or

per diluted share. This compares to a net loss attributable to CONSOL Energy shareholders of

($0.01)

p er diluted share from the year-earlier quarter. EBITDA attributable to CONSOL Energy shareholders was $374 million for the 2015 third quarter, compared to $201 million in the year-earlier quarter.

After adjusting for certain unusual items, which are listed in the EBITDA reconciliation table, the company had an adjusted net loss

in the 2015 third quarter of $64 million, or ($0.28) per share. Adjusted EBITDA

$236 million

in the year-earlier quarter. Cash flow from operations in the just-ended quarter was

million, compared to

The third quarter earnings results included the following pre-tax items related to recent transactions:

Recorded a $100.9 million benefit related to changes in our retiree medical (OPEB) plan;

Recorded a $99.1 million unrealized gain on commodity derivative instruments;

Recorded a $48.5 million gain on the sale of our 49% interest in the Western Allegheny Energy (WAE) joint venture with Rosebud Mining Company;

Recorded $7.7 million in severance expense; and

Recorded $3.1 million in pension settlement expense.

"Despite depressed commodity prices, CONSOL remains focused on achieving our free cash flow base plan over the next 15 months," commented Nicholas J. DeIuliis, president and CEO. "During the quarter, we beat production targets, locked in a significant percentage of our revenues for 2016 with additional gas hedges and multi-year coal contracts, significantly reduced operating costs, corporate overhead, and legacy liabilities, and accelerated our asset sale monetization program. These steps provide increased confidence in our ability to achieve our free cash flow base plan that we highlighted during our second quarter 2015 earnings call, and we are hard at work with multiple processes underway to monetize additional assets this year and into 2016. Expected proceeds will go towards reducing debt to help accelerate the separation of our Coal and E&P Divisions."

CONSOL's E&P Division achieved record production of

Bcfe, or an increase of 33% from the

Bcfe produced in the year-earlier quarter. CONSOL is increasing the lower end of its 2015 annual gas production guidance by 5 Bcfe to 325-330 Bcfe, and the company expects approximately 20% annual gas production growth for 2016. The E&P Division's total unit costs declined during the quarter to $

per Mcfe, compared to $

per Mcfe during the year-earlier quarter. Due to continued efficiency improvements, reductions in service costs and consumables, and the optimization of support personnel through zero-based budgeting, the E&P Division expects further reductions to capital intensity and total unit costs through 2016.

The terms "adjusted net loss" and "adjusted EBITDA" are non-GAAP financial measures, which are defined and reconciled to the GAAP net

income below, under the caption “Non-GAAP Financial Measures."

Exhibit 99.1

Marcellus Shale production volumes in the 2015 third quarter were

higher than the

Bcfe produced in the 2014 third quarter. Marcellus Shale costs were $

per Mcfe in the just-ended quarter, which is a $

per Mcfe improvement from the third quarter of 2014 costs of $

per Mcfe. The company achieved all-in cash costs of $1.62 per Mcfe in the Marcellus Shale.

CONSOL Energy's Utica Shale production volumes in the 2015 third quarter were

Bcfe, up from

Bcfe in the year-earlier quarter. Utica Shale costs were $

per Mcfe. CONSOL Energy's Switz 6 pad in Eastern Monroe County, Ohio, is currently under flowback directly to sales. The Switz-6D well recently showcased a 44.7 MMcf per day 24-hour flow test to sales at an average flowing casing pressure of 6,835 psi. The Switz-6D well had a lateral length of approximately 9,800 feet. The Switz-6 pad consists of four dry Utica Shale wells and one wet Marcellus Shale well with average Utica lateral lengths of 8,800 feet and a Marcellus lateral length of 6,200 feet. CONSOL owns approximately 13,000 contiguous net acres in Monroe County, Ohio.

CONSOL Energy maintains its 2016 E&P capital budget of approximately $400-$500 million, which includes $50 million for midstream capital. CONSOL expects fourth quarter 2015 E&P capital to decline significantly, when compared to the previous three quarters, due to the company laying down all operated rigs late within the third quarter. The company expects to maintain a consistent completion schedule of drilled uncompleted wells through 2016.

CONSOL's Coal Division produced 7.3 million tons in the 2015 third quarter, compared to 7.8 million tons in the year-earlier quarter. In the Virginia Operations, the company's Buchanan Mine saw metallurgical coal prices continue to decline. The Virginia Operations average sales price per ton decreased during the quarter to

$51.82

per ton, compared to

$70.57

per ton from the year-earlier quarter. The Pennsylvania Operations average sales price per ton decreased during the quarter to $

per ton, compared to $

per ton from the year-earlier quarter. However, compared to the second quarter of 2015, the Pennsylvania Operations average sales price per ton slightly increased due, in part, to lower exported spot sales in the third quarter.

"A testament to our premium assets and our coal marketing team, CONSOL continues to see a tremendous amount of contracting success in, what continues to be, a brutal coal environment," commented Nicholas J. DeIuliis, president and CEO. "The company now has a 2016 committed position of approximately 74% of total estimated Pennsylvania Operations sales tons. As highlighted by CNXC, the company now has in place multi-year commitments that secure CONSOL as the anchor supplier to the largest, most efficient, and most environmentally compliant coal power plants in the PJM and SERC regions. These power plants are expected to operate at high capacity factors for the coming years. In addition, CONSOL has secured multi-year commitments with key power plants in the upper Midwest and Southeast regions, which are markets that have historically been thought of as the domain of the Illinois, Central Appalachian, and Powder River Basins.”

The benefit related to changes in CONSOL Energy's retiree medical (OPEB) plan resulted from recent plan amendments, which will benefit the company on a recurring basis through the accelerated amortization of deferred gains associated with the plan. Due to CONSOL actively managing the OPEB liability, these amendments will result in lower operating and other coal costs in 2015, as well as lower future cash payments for OPEB. Beyond year-end 2015, CONSOL will benefit, indefinitely, through lower cash payments related to these liabilities by $15-$20 million per year.

The unrealized gain on commodity derivative instruments represents changes in fair value of all existing gas commodity hedges on a mark-to-market basis.

During the third quarter, CONSOL Energy sold its 49% interest in WAE, which resulted in a recorded gain. The sale included the conveyance of 63 million tons of coal reserves, and the transaction closed on September 30, 2015.

Severance payments resulted from zero-based budgeting and department and employee realignments, and the company does not expect additional severance payments in future quarters.

The pension settlement expense occurs when the lump sum distributions made for a given plan year exceed the total of the service and interest costs for that same plan year. CONSOL expects between $15-$20 million of pension settlement expense in the fourth quarter of 2015 resulting from anticipated lump sum distributions.

E&P Division:

E&P Third Quarter Summary:

Production increased by 33% in the just-ended quarter, when compared to the year-earlier quarter. Despite increased production, total quarterly outside sales revenue decreased by $56.0 million for the same period due to depressed commodity prices. During the quarter, due to oversupply within the region, natural gas liquids (NGLs) saw significant price degradation, which, in part, contributed to decreased sales revenue. Despite a reduction in revenue, the E&P Division realized net income of

million in the third quarter of 2015, compared to net income of

million in the year earlier quarter. In addition to total outside sales revenue of $202.3 million, the E&P Division also benefited from other income in the quarter including: $99 million from unrealized gain on commodity derivative instruments, $16 million from miscellaneous other income, and $1 million from a gain on the sale of assets.

CONSOL's first dry Utica Gaut 4I well in Westmoreland County, Pennsylvania, was completed in the second quarter, and the company has been conducting well flow tests to ascertain the deliverability of the reservoir and well drainage. These tests are providing critical information on pressure drawdown management and inter-lateral spacing for future Utica Shale development. CONSOL's initial 24-hour flow test to sales was 61.4 MMcf per day at an average flowing casing pressure of 7,968 psi. Over the initial 6 days of 20 MMcf per day flow test, the flowing pressure of the Gaut 4I well dropped by 400 psi and is already beginning to flatten out. Compared to a prolific Southwest Pennsylvania Marcellus well in Greene County where flowing pressure can drop by 1,700 psi over the first month of production, the company believes that the pressure data provides a positive indication for production volumes and an estimated ultimate recovery (EUR).

CONSOL Energy recently cemented the casing on the 6,100 foot dry Utica Shale GH9 well, which is located on fee acreage in Central Greene County, Pennsylvania. The GH9 well is scheduled for hydraulic fracturing in the fourth quarter of 2015, and the company expects the well to be turned-in-line in the first quarter of 2016.

The tables below summarize the quarterly comparison of key metrics for the E&P Division:

E&P DIVISION RESULTS — Quarter-to-Quarter Comparison

September 30, 2014

June 30, 2015

Sales - Gas

Realized Hedging Impact - Gas

Sales - Oil

Sales - NGLs

Sales - Condensate

Total Sales Revenue ($ MM)

Net Income (Loss) ($ MM)

(540.1

Net Cash Provided By Operating Activities ($ MM)

Total Period Production (Bcfe)

Average Daily Production (MMcfe)

Capital Expenditures ($ MM)

CONSOL's E&P Division production in the quarter came from the following categories:

% Increase/(Decrease)

Marcellus Sales Volumes (Bcf)

Utica Sales Volumes (Bcf)

CBM Sales Volumes (Bcf)

Other Sales Volumes (Bcf)

LIQUIDS*

NGLs Sales Volumes (Bcfe)

Oil Sales Volumes (Bcfe)

Condensate Sales Volumes (Bcfe)

Production results are net of royalties. *NGLs, Oil, and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas.

Liquids production of 12.1 Bcfe, as a percentage of the total of 86.1 Bcfe, was approximately 14% in the just-ended quarter.

E&P PRICE AND COST DATA PER MCFE — Quarter-to-Quarter Comparison:

(Per Mcfe)

Average Sales Price - Gas

Realized Hedging Impact - Gas

Average Sales Price - Oil*

Average Sales Price - NGLs*

Average Sales Price - Condensate*

Average Sales Price - Total Company

Costs - Production

Lifting

Ad Valorem, Severance and Other Taxes

DD&A

Total Production Costs

Costs - Gathering

Transportation

Operating Costs

Total Gathering Costs

Gas Direct Administrative Selling & Other

Total Costs

Margin

*Oil, NGLs, and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices.

Note: Costs - The line item "Gas Direct Administrative Selling & Other" excludes general administration, incentive compensation,

and other corporate expenses.

The average sales price per Mcfe within the E&P Division was impaired in the just-ended quarter, when compared to the year-earlier quarter due to the continued decline in commodity prices.

The average sales price of

per Mcfe, when combined with unit costs of

per Mcfe, resulted in a margin of

per Mcfe. This was a decrease when compared to the year-earlier quarter even though the improvements in unit costs partially offset the decline in price realizations.

All-in unit costs in the Marcellus Shale were $

per Mcfe in the just-ended quarter, or a decrease of $

from the $

per Mcfe in the year-earlier quarter. The decrease in unit costs was primarily related to the

increase in total Marcellus sales volumes, including liquids, during the just-ended quarter, compared to the year-earlier quarter.

During the quarter, transportation costs were

per Mcfe, or an increase of $0.17 from the year-earlier quarter. The increase was primarily related to additional processing and gathering fees associated with increased liquids volumes.

E&P Marketing, Transportation, and Processing Update:

For the third quarter of 2015, CONSOL's average sales price for natural gas, natural gas liquids, oil, and condensate was $2.35 per Mcfe. CONSOL's average price for natural gas was $1.86 per Mcf for the quarter and, including hedging, was $2.46 per Mcf. During the third quarter, CONSOL produced NGL, oil, and condensate volumes of 12.1 Bcfe, or 14% of the company's total gas equivalent volumes. These liquids volumes were nearly double those of the year-earlier quarter, which then comprised 10% of the company's total gas equivalent volumes. The average realized price for all liquids for the third quarter of 2015 was $9.99 per barrel.

The company currently has a total of 1.2 Bcf per day of available firm transportation capacity. This is composed of 0.9 Bcf per day of firm capacity on existing pipelines and an additional 0.3 Bcf per day of long-term firm sales with major customers having their own firm capacity. Additionally, CONSOL has contracted volumes of approximately 0.6 Bcf per day on several pipeline projects that will be completed...


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