CNX GAS CORPORATION is a Pittsburgh-based independent natural gas exploration, development, production and gathering company operating in the Appalachian and Illinois Basins of the United States. In particular, we are a leading producer of coalbed methane (CBM). Our production in 2008 was 76.6 billion cubic feet (Bcf), making us one of the largest gas producer in the Appalachian Basin. Proved reserves at December 31, 2008 were 1.422 trillion cubic feet (Tcf). Only 783 Bcf, or 55%, of these reserves were developed at year end. CNX Gas also has a substantial acreage position.  As of April 30, 2008, CNX Gas had access to over 4.2 million gross acres.

CNX Gas was established on June 30, 2005. CONSOL Energy Inc. contributed its gas assets to CNX Gas effective August 8, 2005, and retains an 81.5% ownership interest. Our stock trades on the New York Stock Exchange under the symbol CXG. The value of the company's stock at December 31, 2007 was $31.95 per share, resulting in a total equity market capitalization of $4.82 billion.

We began extracting CBM in the early 1980s in order to reduce the gas content in the coal being mined by CONSOL Energy. We developed techniques to extract CBM from coal seams prior to mining in order to enhance the safety and productivity of mining operations. As a result of our more than 20 years of experience with CBM extraction, we believe we have developed industry-leading expertise.

CNX Gas currently has several active conventional and unconventional natural gas operational areas across the eastern United States including: Virginia Operations, a CBM play in southwestern Virginia; Mountaineer, a CBM and Marcellus Shale play in southwestern Pennsylvania and northern West Virginia; Nittany, a CBM play east of Pittsburgh; and Knox Energy, a Chattanooga Shale play in northern Tennessee.  

The company has earned a reputation as a safe, efficient producer, with one of the industry's lowest cost structures. Low costs, when combined with the relatively high prices we receive because of the proximity of our production to East Coast markets, enables us to earn near industry-leading margins and returns on capital employed.