Form 425
2008 Morgan Stanley
Basic Materials Conference
February 20, 2008
New York
Filed by CONSOL Energy Inc.
Pursuant
to
Rule
425
under
the
Securities
Act
of
1933
and
deemed
filed
pursuant
to
Rule
14a-12
and
Rule
14d-2(b) of
the
Securities
Exchange
Act
of
1934
Subject
Company:
CNX
Gas
Corporation
Commission
File
No.
001-32723


2
Cautionary Statements
Some statements in this presentation contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may relate to,
among other things, future performance generally, business development activities, future capital
expenditures,
financing
sources
and
availability
and
the
effects
of
regulation
and
competition.
In addition, this presentation contains certain financial measures, such as EBIT and EBITDA. As
required by Securities and Exchange Commission Regulation G, reconciliations of these
measures to amounts reported in CONSOL Energy’s consolidated financial statements are
provided in its quarterly earnings releases.
IMPORTANT
INFORMATION:
In
connection
with
the
proposed
exchange
offer
to
the
stockholders
of
CNX
Gas
Corporation,
CONSOL
Energy
expects
to
file
a
registration
statement
on
Form
S-4
containing
an
exchange
offer
prospectus
and
related
materials
with
the
Securities
and
Exchange
Commission.
INVESTORS
AND
SECURITY
HOLDERS
OF
CNX
GAS
CORPORATION
ARE
URGED
TO
READ
THE
EXCHANGE
OFFER
PROSPECTUS
AND
THE
OTHER
RELEVANT
MATERIALS
WHEN
THEY
BECOME
AVAILABLE
BECAUSE
THEY
WILL
CONTAIN
IMPORTANT
INFORMATION
ABOUT
THE
OFFER
AND
CONSOL
Energy.
Investors
and
security
holders
may
obtain
a
free
copy
of
the
exchange
offer
prospectus
and
other
relevant
materials
(when
they
become
available)
and
other
documents
filed
by
CONSOL
Energy
with
the
commission
at
the
commission's
web
site,
www.sec.gov.
Copies
of
the
exchange
offer
prospectus
and
other
relevant
documents
(when
they
become
available)
may
also
be
obtained
without
charge
from
CONSOL
Energy.
Requests
to
CONSOL
Energy
should
be
made
in
writing
to
Thomas
F.
Hoffman,
Senior
Vice
President
-
External
Affairs,
CONSOL
Energy
Inc.,
1800
Washington
Road,
Pittsburgh,
PA
15241,
or
by
email
at
tomhoffman@consolenergy.com.


3
CONSOL Energy’s Assets
Coal Reserves
Large, contiguous blocks owned-in fee
Heat content
Location
Transportation
River transportation subsidiary
Dual rail access at several mines
Coal export terminal
Gas Company


4
World
World
United States
World
Energy Demand Today
453 QBtu
/ Year
81% Fossil Energy
703 QBtu
/ Year
82% Fossil Energy
Energy Demand 2030
124 QBtu/Year
84% Fossil Energy
101 QBtu/Year
85% Fossil Energy
+24%
+55%
Global Long-Term Demand for Energy
Source: DOE NETL


5
Domestic Electricity Generation Forecast
AEO’08 (early release)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
55.4%
55.4%
Petroleum
Petroleum
Coal
Coal
Natural gas
Natural gas
Renewables
Renewables
Nuclear
Nuclear
14.0%
17.5%
17.5%
11.6%
11.6%
1.2%
1.2%
48.6%
48.6%
Source: DOE NETL


6
Largest Coal Reserve Holder East of MS. River
Northern Appalachia
Reserves ~ 2.7 billion tons
Production: 52.9 million tons
Central Appalachia
Reserves ~ 800 million tons
Production: 10.7 million tons
Illinois Basin
Reserves ~ 700 million tons
PRB
Reserves ~ 300 million tons
*
2007
production
includes
1.0
million
tons
from
Emery,
UT.
Reserves
include
31
mmt
assigned
to
UT
and
129
mmt
assigned
to
Western
Canada.
Profile of CONSOL Coal*
Reserves ~ 4.5 BNt
2007 Production:  64.6 Mt
Avg. Reserve Life:  25+ years
Operating Mine Complexes: 15


7
Coal Reserves Owned-in-fee ~ 77 QBtu
Advantages of ownership:
Leverage to higher pricing
Ability
to
forecast
and
control
future
costs
no
LBA
payments
Coal Reserves
Approx.
Approx.
Company
(billions of tons)
% Owned
QBtu Owned
CONSOL Energy
4.5
70%
76.9
                  
Peabody (excl. Patriot)
8.8
42%
70.2
                   
Patriot Coal
1.2
55%
16.5
                   
Foundation Coal
1.6
45%
15.1
                   
Massey Energy
2.3
18%
10.4
                   
Arch Coal
2.9
13%
9.0
                     
Alpha Natural Resources
0.5
5%
0.6
                     
Source: Company filings with the Securities and Exchange Commission.
QBtu calculated using an estimated Btu average that is dependent on coal basin ownership mix.


8
Heating Value ~ 99% of Production is High-Btu
8,400
13,000
12,500
8,800
11,500
0
5,000
10,000
15,000
PRB
PRB
ILB
CAPP
NAPP
Btu’s per pound of coal
Approx. 80% of CONSOL’s coal production
Approx. 19% of CONSOL’s coal production
* Remaining 1% of production includes approximately 1.0 million tons from Emery, UT. 


9
Close Proximity to Scrubbed Customers
By 2012, ~ 142 gigawatts
scrubbed East of MS. River
60 generating units
within 50 miles of CONSOL’s
Pitt8 coal reserves
CONSOL’s Assets in Appalachia
Producing Complexes: 14
Reserves: 3.5 billion tons


10
Scrubber Builds Are Being Completed
Since 2006, CONSOL has signed 6 multi-year, multi-million ton agreements with
domestic customers that in aggregate ~ 250 million tons of high-Btu coal
62%
28%
10%
Thru 12/31/08
2009-2010
2011+
Percentage of Gigawatts Scrubbed by Year


11
NAPP Pricing Has Converged with CAPP
Source: EIA
Why the convergence?
1. Sulfur disadvantage
no longer exists
2. Stockpiles low in NAPP
3. Met customers
shopping for NAPP coal
Source: EIA


12
Up Cycle Just Beginning for Steam Coal?
API #2 to ARA
$-
$20
$40
$60
$80
$100
$120
$140
Last up cycle for coal ~ 2 years
Current price ~ $134 for
delivery in first half of 2009
API #2 to ARA ($/metric tonne)
110
$      
130
$      
150
$      
Implied pricing of 3.4# NAPP ($/short ton)
57
$        
72
$        
87
$        
*assumes vessel rate to ARA of $35


13
100% Ownership of Coal Export Terminal
Largest exporter of coal in the U.S.
Served by two rail lines
Norfolk Southern
CSX Transport
Capacity
Practical: 12 million tons
Export Terminal at the Port of Baltimore
Export Terminal at the Port of Baltimore
Ground storage
1.2 million tons
Coal exports
For 2007, approx. 6.9 mm tons
For 2008, up another ~25%
Countries served
Denmark, England, France, Germany, Ireland, Portugal


14
Forecast: Coal Exports Up 20 million tons in 2 years
Coal Exports
69.6
57.6
49.6
0
20,000
40,000
60,000
80,000
100,000
120,000
Sources: EIA, PIRA.  Estimates include steam and metallurgical coal.


15
Unpriced Volumes…Ability to Capitalize on Up Cycle
33.4
4.5
53.1
5.1
62.8
5.2
0
20
40
60
2009
2010
2011
Unpriced Steam Coal
Unpriced Low-Vol Met Coal
2009
2010
2011
Production Guidance
70 –
74
76.6 –
80.6
76.7 –
80.7
(mm of Tons)


16
Appalachian Brownfield Opportunities
Potential to grow Appalachian production through brownfield
expansion by ~ 25 million tons
over next 10 years
Longwall Face Extensions
Birch
Shoemaker
Additional Longwalls


17
Margin Focused and Production Disciplined
$2.45
$6.91
$10
$15
$20
$25
$30
$35
$40
2001
2002
2003
2004
2005
2006
2007
60
64
68
72
76
80
Avg. Production Cost
Coal Margin
Coal Production
$35.61
$24.66
$26.76
$27.61
$30.06
$38.99
Avg. Realized Pricing
$40. 66
As of December 31, 2007


18
River Transportation Subsidiary
Assets on the inland waterways of Northern Appalachia
750 Barges
25 Tow Boats
5 Harbor Boats
24+ Million tons per year capability
Alicia Dock


19
Transportation Flexibility at Mines
(Millions of tons)
2006
Northern Appalachia
Production
CSX
NS
Barge
Rail-to-Barge
Enlow Fork
10.7
X
X
X
McElroy
10.5
X
Bailey
10.2
X
X
X
Loveridge
6.4
X
X
X
Robinson Run
5.7
X
X
Blacksville
5.0
X
X
X
Mine 84
3.5
X
X
Shoemaker
1.0
X
X
Central Appalachia
Buchanan (metallurgical)
5.0
X
X
Amvest (~10% metallurgical)
4.9
X
X
X
Jones Fork
3.1
X
X
Mill Creek
2.1
X
X
Southern WV Resources
1.2
X
X
Miller Creek
0.9
X
X
Amonate (metallurgical)
0.5
X
X
Western U.S.
Emery
1.1
Railroads
Truck-to-Rail
Coal Delivery Options


20
Unique Investment Proposition
Coal Reserves
Large, contiguous blocks owned-in fee
Location
Transportation
River transportation subsidiary
Coal export terminal
Gas Company


2008 Morgan Stanley
Basic Materials Conference
February 20, 2008
New York