PITTSBURGH, April 23 /PRNewswire-FirstCall/ -- CNX Gas Corporation (NYSE: CXG) reported net income attributable to CNX Gas shareholders for the quarter ended March 31, 2009 of $54.9 million, or $0.36 per diluted share. This was 10% higher than the net income attributable to CNX Gas shareholders of $49.9 million, or $0.33 per diluted share, for the quarter ended March 31, 2008.

Production was 22.0 billion cubic feet (Bcf), or 244.8 million cubic feet (MMcf) per day, for the quarter ended March 31, 2009, or 38% higher than the 15.9 Bcf, or 174.4 MMcf per day, for the year- ago quarter.

J. Brett Harvey, chairman and chief executive officer, said, "CNX Gas continued to achieve outstanding results, despite the weak economy and its effect on spot gas pricing. Our production in the first quarter showed significant quarter-over-quarter gains. Net income was very strong, thanks to our robust hedging program and higher production. Most importantly, our employees continued to work without a lost-time accident. We remain excited about our unfolding exploration success in our Marcellus Shale play. Based on the cumulative impact of these results, we are raising our 2009 production guidance from 85 Bcf to 87 Bcf."

TABLE 1

FINANCIAL AND OPERATIONAL RESULTS - Quarter-To-Quarter

Quarter Ended__ Quarter Ended

March 31, 2009__ March 31, 2008

-------------- --------------

Total Revenue and Other Income__ $178.4__ $160.6

Net Income attributable to CNX Gas

shareholders__ $54.9__ $49.9

Earnings per Share - Diluted__ $0.36__ $0.33

Net Cash from Operating Activities__ $126.4__ $76.2

EBITDA__ $114.1__ $98.2

EBIT__ $91.3__ $82.2

Total Period Production (Bcf)__ 22.0__ 15.9

Average Daily Production (MMcf)__ 244.8__ 174.4

Capital Expenditures__ $133.6__ $86.6

Financial results are in millions of dollars except per share amounts.

Production results are net of royalties.

The average price realized for the company's gas production was $7.37 per Mcf for the quarter ended March 31, 2009, or $0.86 lower than the $8.23 per Mcf received for the quarter ended March 31, 2008. The average realized price for the just-ended quarter included 10.7 Bcf hedged at $9.85 per Mcf.

Unit operating costs for company production, exclusive of royalties, were $3.29 per Mcf in the just-ended quarter, or 6% lower than the $3.49 per Mcf for the quarter ended March 31, 2008.

Pre-tax unit margins for company production were $4.08 per Mcf in the March 31, 2009 quarter, a decrease of 14% from $4.74 per Mcf in the March 31, 2008 quarter.

Unit production taxes were lower in the just-ended quarter because of the reversal of a $2.5 million accrual due to a pending litigation settlement. Unit production taxes would have been $0.11 per Mcf higher without the reversal. Lower gas prices in the March 2009 quarter also contributed to lower production taxes.

Firm transportation costs have increased $0.10 per thousand cubic feet due to acquiring additional capacity in the Northern Appalachian region.

TABLE 2

PRICE AND OPERATING COST DATA PER NET MCF - Quarter-To-Quarter Comparison

Quarter Ended____ Quarter Ended

March 31, 2009__ March 31, 2008

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Average Sales Price/Mcf__ $7.37__ $8.23

Costs - Production

Lifting__ $0.49__ $0.48

Production Taxes__ $0.03__ $0.24

DD&A__ $0.81__ $0.69

-----____ -----

Total Production Costs__ $1.33__ $1.41

Costs - Gathering

Operating Costs__ $0.78__ $0.85

Transportation__ $0.21__ $0.11

DD&A__ $0.23__ $0.31

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Total Gathering Costs__ $1.22__ $1.27

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Administration__ $0.74__ $0.81

Total Operating Costs__ $3.29__ $3.49

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Margin__ $4.08__ $4.74

Note: Administration costs for both quarters now exclude incentive

compensation and other corporate items.

Operations Update

During the first quarter, CNX Gas employees worked another quarter without incurring a lost time accident. This raises the cumulative time worked by employees without a lost time incident to over 3.7 million hours.

The temporary idling of Buchanan Mine at the beginning of March lowered production by 0.2 Bcf during the quarter. This also had a slight effect on unit costs because Buchanan production is very low cost.

CNX Gas drilled 62 wells in its Virginia CBM Operations, excluding gob wells. CNX Gas expects to drill 175 wells in Virginia in 2009.

The company drilled 19 wells during the quarter in its Mountaineer CBM play. Unless a meaningful increase in pricing occurs later in the year, CNX Gas expects to defer additional drilling in Mountaineer. The focus is on lowering unit costs, with significant benefits already being realized. Permitting efforts will continue, so that CNX Gas will be able to quickly respond when gas prices rebound.

CNX Gas drilled 8 wells in the first quarter in its Nittany CBM play. After-tax rates of return for Nittany are economic at sub- $5.00 gas prices, however the company has elected to defer additional drilling until gas prices rise. The company has flexibility in regard to Nittany, and can quickly return to earlier levels of drilling, when prices warrant it.

In the Marcellus Shale, CNX Gas brought its second and third horizontal wells into production during the quarter. Both wells are still de-watering and have backpressure of about 1,100 pounds. The company plans to remove excess water from these wells, which may improve recent daily flow rates.

Subsequent to the end of the quarter, CNX Gas brought its fourth and fifth horizontal Marcellus Shale wells into production. Within several days, the fourth well had achieved a 24-hour production rate of 5.5 MMcf. This well cost an estimated $4.25 million, which was improved from the $4.7-$4.8 million cost of the second and third wells. The fifth well, GH10ACV, was completed and turned in line on April 18 with an expected total cost of $3.8 million. This well is now producing at a daily rate of 4,900__ MMcf.

The table below summarizes results since inception of the company's horizontal Marcellus Shale program:

TABLE 3

HORIZONTAL MARCELLUS SHALE PROGRAM STATISTICS

Peak__ April 19__ Cumulative

Daily__ Daily__ Production

Well__ Turn in__ Peak__ Production Production__ (Mcf) Through

Name__ date__ date__ (Mcf)__ (Mcf)__ April 9

---- -------- ---------- ----- ---------- ---------------

1. CNX#3__ 10/5/2008 12/16/2008__ 6,623__ 2,500__ 479,639

2. CNX#2__ 1/28/2009__ 2/13/2009__ 2,532__ 1,900__ 145,610

3. CNX#2A 2/13/2009__ 3/4/2009__ 1,982__ 1,600__ 97,242

4. GH10CV__ 4/6/2009__ 4/9/2009__ 5,508__ 4,800__ 11,960

5. GH10ACV 4/18/09__ 4/21/2009__ 4,900__ 4,900__ N/M

Average Peak______ 4,309

J.Brett Harvey, Chairman and CEO, commented on the success, "CNX Gas was able to quickly transfer its horizontal drilling expertise in coalbed methane to the Marcellus Shale. We've now drilled and brought into line five successful wells. I am proud of our Marcellus Shale drilling team for having accomplished so much in such a short time.

For much of our Marcellus acreage, we pay no royalty, we have no lease costs, and we have no drilling commitments. Our production in Greene County, Pa. has not had the butanes and propanes that other producers have had to remove from their Marcellus flows. "As we gain more experience drilling in the Marcellus and we continue to lower our drilling costs," Mr. Harvey continued, "we are reworking our Marcellus economics. We will continue to refine our techniques during this period of low gas prices and will likely add a rig when prices rebound."

In the Chattanooga Shale in Tennessee, 7 wells were drilled. The latest well is flowing at 700 Mcf per day. The company plans to investigate 9-stage fracs for future wells.

Financial Update

The company continues to monitor and evaluate capital spending to ensure adequate liquidity and to preserve options for possible external investment. With regard to capital, CNX Gas intends to spend largely within its net cash from operating activities for 2009. Capital expenditures were $133.6 million during the first quarter.

The company ended the quarter with $80.4 million drawn on its credit facility. This is up $7.7 million from December 31, 2008, when it had $72.7 drawn on its facility.

CNX Gas also has outstanding letters of credit of $14.9 million.