LNG Industry Overview

1. LNG Industry Overview Virginia Governor’s Energy Conference Randall M. Albert Richmond, VA CONSOL Energy October 16, 2013 Chief Operating Officer-Gas

2. About CONSOL Energy • Began production in 1864 • 2011 revenue $5.7 billion • Approximately 9,000 employees • Member – Fortune 500; S&P 500 • Forbes – “Top 100 Most Trustworthy Companies” • Leading diversified fuel producer in the Eastern United States • 12 mining complexes in four states, including the largest underground mines in the world – 4.2 billion proven and probable coal reserves • Among the largest exporters of coal in the U.S. • A leading gas producer in Appalachia • Proved natural gas reserves of 4.0 trillion cubic feet • Privately funded R&D Department

3. Cautionary Language • This presentation contains statements, estimates and projections which are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Such statements include estimates of reserves and resources, projections and estimates concerning the timing and rates of return of future projects, and our future production, revenues, income and capital spending. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements, estimates and projections. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of future actual results. Factors that could cause future actual results to differ from the forward-looking statements are described in detail under the captions "Forward Looking Statements" and "Risk Factors" in CONSOL Energy Inc.’s annual report on Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission (SEC), as updated by any subsequent Form 10-Qs. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements unless required by the securities laws, and we caution you not to rely on them unduly. • The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible oil and gas reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations. We may use certain terms in this press release, such as EUR (estimated ultimate recovery), unproved reserves and total resource potential, that the SEC's rules strictly prohibit us from including in filings with the SEC. These measures are by their nature more speculative than estimates of reserves prepared in accordance with SEC definitions and guidelines and accordingly are less certain. We also note that the SEC strictly prohibits us from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category. • Except for proved reserve data, the information this presentation is based on a summary review of the title to the gas rights we hold, as well as a summary review of the title to the coal from which many of our coalbed methane rights derive. As is customary in the gas industry, prior to the commencement of gas drilling operations on our properties, we conduct a thorough title examination and perform curative work with respect to significant defects. We are typically responsible for curing any title defects at our expense. This curative work may include the acquisition of additional property rights in order to perfect our ownership for development and production of the gas estate. • This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CONSOL Energy Inc.

4. Brief History of LNG • 19th Century – British Chemist/Physicist Michael Faraday liquefies natural gas • 1912 – First LNG plant is built in West Virginia and begins operations in 1917 • 1959 – World's first LNG tanker, The Methane Pioneer, a converted World War ll freighter carries LNG Cargo • 1964 – Large-scale trade begins • 2012 – LNG represents 30% of 240 mmtpa international gas trade • LNG expected to play an increasingly important role in the natural gas industry and energy markets Source: JKL Management analysis; University of Texas, Center for Energy Economics – http://www.beg.utexas.edu/energyecon/lng/LNG_introduction_06.php

5. LNG Export Impact • U.S. exports of LNG from domestic sources anticipated to rise to approximately 1.6 trillion cubic feet in 2027 – almost double the current output Sources: http://www.eia.gov/forecasts/aeo/er/executive_summary.cfm; Rice University, James A. Baker II Institute for Public Policy, Kenneth B. Medlock III, Presentation at EIA International Natural Gas Workshop, LNG Exports and the Future International Natural Gas Market, August 23, 2012 • LNG exports from U.S. will link global markets to storage opportunities in • United States • 20 export proposals pending at DOE as of mid-September 2013

6. LNG Supply Projects • N. American export projects face increasing competition from other new supply • Projects that take longer to begin service are expected to face increasing competition • 30+ viable projects represent in excess of 35 bcf/d (265 mtpa) of new capacity to 2020 Sources: Source: JKL Management analysis; FERC, 2012 – http://ferc.gov/industries/gas/indus-act/lng.asp; JKL Management analysis; BENTEK, 2012, LNG Exports: The Global Thirst for North American Shale Gas – www.bentek.com

7. 18 bcf/d New U.S. Natural Gas Demand by 2018 Expected U.S. gas demand growth over the next five years • U.S. gas demand is expected to be strong to medium over the next five years • Out of 18 bcf/d of new potential demand: -- 2 bcf/d will come from Mexican exports -- 2 bcf/d from the power sector -- 6 bcf/d from the industrial sector Example: LNG Vehicles and Refueling Stations • UPS to buy 700 LNG vehicles & build 4 refueling stations by 2014 • 8 bcf/d from LNG exports Foreign sales of NG would ensure new markets and demand essential to sustaining the current U.S. drilling boom Source: JKL Management analysis; BENTEK, May 15 2013, Bloomberg – http://www.platts.com Source: http://fuelfix.com/blot/2013/01/11/feds-approve-lng-exports-from-dominion-cove-point-fa...

8. LNG Export Market Potential • 6.37 bcf LNG now authorized by federal government to be sold to non-free trade nations • Analysts predict total U.S. natural gas exports might settle somewhere between 5-10 bcf/day • Government commissioned study in 2012 found U.S. would score big economic benefits by broadly exporting natural gas with only modest domestic price increases • EIA predicts U.S. will produce a record-setting 69.96 bcf of natural gas on average each day this year Source: http://fuelfix.com/blot/2013/01/11/feds-approve-lng-exports-from-dominion-cove-point-fa...

9. New Regions Emerge as LNG Consumers • South America has emerged as an important new region of LNG consumption, importing 15.2 bcm of LNG in 2012 Source: JKL Management analysis; BENTEK, June 13, 2013, Bloomberg – http://www.bloomberg.com/news/2013-06-12/russia-s-lng-rush-gives-japan-strongest-bargaining-chip.html 50 • Five years ago, Central and South American importers comprised just two small countries (Dominican Republic & Puerto Rico) – import total 1.1 bcm • Now joined by three major new buyers: Argentina, Brazil and Chile combined LNG imports of 5.2, 3.2 & 4.1 bcm respectively in 2012 • Central and South American LNG imports have risen 1,381% past five years • Current seasonal, spot nature of South American trade creates valuable opportunities for flexible LNG suppliers

10. 2030 N. American Export Projections By 2030, North America is projected to export ~ 13 bcf/d of LNG • In 2010, U.S. Northeast sourced 84% of gas demand from other regions & LNG • By 2030, U.S. Northeast Marcellus Shale Gas growth reduces reliance on supply from other regions to 40% of overall demand • This shift in supply/demand fundamentals will push N. American natural gas into export LNG markets 2010 – Inter-regional Gas Flows 2030 – Inter-regional Gas Flows Source: JKL Management analysis; Ziff Energy Group, June, 2013 – Natural Gas Supply and Demand Forecast to 2050 – North America and Canada

11. Global Natural Gas Demand & Production • Global natural gas market consists of a collection of 12 distinctive regional markets • Some regions are connected by pipelines, or LNG, others are very autonomous -- 40% of global LNG imports supplied from the Middle East -- 71% of global LNG demand in Asia -- 20 million tons exported from the Atlantic to the Pacific Basin • At 2012 year-end: -- 93 LNG re-gas terminals, 26 countries, 668 million tons (mmta) total capacity -- 89 liquefaction trains operating, 18 countries, 282 mmta total capacity Source: JKL Management analysis; NERA Macroeconomic Impacts of LNG Exports from the United States, (2013) – http://energy.gov/sites/prod/files/2013/04/f0/nera_lng_report.pdf

12. Global Production v. Consumption • Largest Producer and Largest Consumer is the Former Soviet Union (FSU) • U.S. Ranks Second in Current Production and Consumption • World Production at 113.10 tcf • World Consumption at 112.90 tcf • Source: JKL Management analysis; NERA Macroeconomic Impacts of LNG Exports from the United States,(2013) – http://energy.gov/sites/prod/files/2013/04/f0/nera_lng_report.pdf • Global Natural Gas Demand & Production (Tcf)

13. Growth in Global LNG Demand Chinese LNG imports increase (June 25) • China's LNG imports in May rose by 18.5% to 1.35 mtns compared with the same month a year ago, according to data from the Chinese General Administration of Customs South Korean LNG imports jump (June 18) • South Korean LNG May imports rose by 32% to 2.92 mtns. LNG imports reached 18.73 mtns in January – May period, a 17% increase LNG looks at Japan coal move (June 4) • Tokyo Electric Power Co. (TEPCO), the largest Japanese LNG importer, and 10 other companies are considering importing coal together, a move that would cut transport costs by about 40% Source: JKL Management analysis; LNG Journal, Jul 2, 2013, http://lngjournal.com/lng

14. Niche Market Growth – Home and Abroad • Vehicle fuel • Replacement fuel for propane in stranded local distribution company areas or remote, isolated industrial facilities • Major drivers behind growth as a vehicle fuel include economic incentives, such as tax breaks or mandates requiring the purchase of alternative-fuel fleet vehicles

15. New Construction… • Example: Clean Energy Fuels will build and operate micro-LNG plants for regional projects in Florida, Washington, Colorado, North Dakota, Ohio, Texas • Currently, natural gas accounts for only 0.1 percent of transportation fuel used in U.S., but could increase Source: http://fuelfix.com/blog/2013-09/18/lng-fuels-consortium-to-build-plants-in-texasx-other-stat...

16. Opportunities Within the Industry • Complete conversion of large drilling rig gen sets to dual-fuel operation (LNG or field gas + diesel fuel) • Evaluate potential for top-hole rigs and rig boilers • Consider Frac pumpers; off-road vehicles; highway vehicles (probably bi-fuel) • Long-term target: LNG Use on River Towboats

17. CNG/LNG Challenges • Challenges are both technical & economic • Cost to Develop LNG Plant = $40-$100 Million • Cap-Ex for full conversion/new dedicated vehicles • Over-the-road refueling infrastructure

18. Challenges Can Be Overcome • LNG Market tight in years ahead = shortage of new projects lined up • Rising costs as demand for contractors has surged • Some Australian LNG export capacity has already been scrapped • Rising costs may temper industry willingness to invest • Supply is there – Can we get it to market?

19. LNG Industry Overview Virginia Governor’s Energy Conference Randall M. Albert Richmond, VA CONSOL Energy October 16, 2013 Chief Operating Officer-Gas Thank You!