Consolidated Natural Gas Company Reports First Quarter Earnings - Earnings Per Share from Continuing Operations: $1.45 vs. $1.76 - Warm Weather and Low Wellhead Prices are Major Factors - After-Tax Charge of $42.9 Million is Taken to Exit Wholesale Energy Marketing - Combined Oil and Natural Gas Production is Up 14 Percent

PITTSBURGH, April 30 /PRNewswire/ -- Consolidated Natural Gas Company (NYSE: CNG) today reported that 1998 first quarter income from continuing operations was $138.0 million, or $1.45 a share on a diluted basis, compared with $173.0 million, or $1.76 a share, a year earlier. Unusually warm winter weather and lower wellhead prices for natural gas and oil were among the major reasons for the lower first quarter results. Positive factors included a 14 percent increase in production of natural gas and oil on an energy-equivalent basis and ongoing cost containment efforts. Net income for the first quarter of 1998 was $77.9 million, or 82 cents a share on a diluted basis, compared with $171.5 million, or $1.74 a share on a diluted basis, a year earlier. The 1998 net income results include a charge of $42.9 million ($66.0 million pretax) in connection with the previously-announced decision to discontinue wholesale energy trading and marketing operations. The results also reflect a $17.2 million loss incurred by the wholesale energy trading and marketing operations in the first quarter. These operations posted a $1.5 million loss in the 1997 first quarter. CNG will no longer report financial results for energy marketing services as a separate segment. "The first quarter was a tough one for CNG, but the fundamentals of our company are excellent and we look forward to the many profitable growth opportunities ahead," said George A. Davidson, Jr., chairman and chief executive officer. "With the decision to exit the wholesale energy marketing business behind us, we now are concentrating on our already-strong energy marketing operations aimed at homeowners and small businesses and on our other lines of business, such as exploration and production, and international. "Our exploration and production unit remains a leader in the industry. Although wellhead prices were down industry-wide, the average price we obtained for our gas production in the first quarter was good relative to our competitors," Mr. Davidson said. "In addition, our regulated operations in local gas distribution and interstate gas transmission are well-run at low cost. Abnormally warm weather cost us 20 cents a share in the first quarter compared to last year, but we are poised to benefit when the weather returns to more normal levels." Earnings per share (basic) were 84 cents in the first quarter, compared with $1.81 a year earlier. Results by Business Component Here are the 1998 first quarter results for each of the company's business components: Exploration and Production Pretax operating income for exploration and production was $34.7 million in the first quarter of 1998, down 10 percent from a year earlier. Production of natural gas increased about 3 percent, to 37.5 billion cubic feet. Oil production jumped 67 percent, to 2.1 million barrels, mostly because of Neptune, a deep-water project in the Gulf of Mexico that came on line late in the first quarter of 1997. Combined oil and gas production was 49.9 billion cubic feet equivalent in the first quarter of 1998, a 14 percent increase. The average wellhead price for CNG's natural gas production was $2.50 a thousand cubic feet in the first quarter of 1998. That was a decline of 21 cents, but still compared favorably with industry-wide prices. CNG's average wellhead price for oil in the first quarter was $12.49 a barrel, down from $17.28 a year earlier. Natural Gas Distribution Pretax operating income for the company's four local gas utilities was $137.6 million, down 20 percent from a year earlier. Warmer weather was the chief reason for the decline: it was 21 percent warmer than normal and 14 percent warmer than a year earlier. Had the weather been normal, the company's per-share earnings in the first quarter of 1998 would have been 33 cents higher. Distribution throughput -- the amount of gas sold and transported -- fell 11 percent, to 157.9 billion cubic feet in the first quarter. Natural Gas Transmission Pretax operating income for the company's interstate gas pipeline and storage business was $61.0 million in the first quarter of 1998, a 15 percent decline from a year earlier. Lower prices for natural gas liquids were a major factor in the decline. Also, the 1997 first quarter results included the positive effect of the resolution of certain regulatory issues. Transmission throughput in the 1998 first quarter was 215.7 billion cubic feet, down 17 percent from a year earlier. Consolidated Natural Gas Company is one of the nation's largest producers, transporters, distributors and retail marketers of natural gas. The company's natural gas transmission and distribution operations serve customers in Pennsylvania, Ohio, Virginia, West Virginia, New York and other states in the Northeast and Mid-Atlantic regions. CNG explores for and produces natural gas and oil in the United States and Canada. The company also selectively participates in energy businesses abroad. Consolidated Natural Gas Company (CNG) Three Months Ended March 31, 1998 1997 Total operating revenues $999,182,000 $1,143,768,000 Income from continuing operations $138,033,000 $173,028,000 Discontinued operations $(60,138,000) $(1,537,000) Net income $77,895,000 $171,491,000 Earnings per common share -- diluted Income from continuing operations $1.45 $1.76 Discontinued operations $(.63) $(.02) Net income $.82 $1.74 Earnings per common share -- basic Income from continuing operations $1.48 $1.83 Discontinued operations $(.64) $(.02) Net income $.84 $1.81 Average common shares - diluted 96,471,000 100,158,000 Average common shares - basic 93,008,000 94,593,000 CNG's recent news releases are available 24 hours a day on the Internet, by fax machine, or by voice recording. On the Internet, use CNG's web site: http://www.cng.com For faxing, call 1-800-758-5804 on a touch-tone phone and enter CNG's extension number, which is 203456. From a menu, you will then be able to select releases that will be faxed to you immediately without charge. For voice recordings, call 1-888-CNG-NEWS. This line is toll-free. This press release contains forward-looking statements. The company wishes to caution readers that the assumptions which form the basis for forward-looking statements with respect to or that may impact earnings for fiscal 1998, and thereafter, include many factors that are beyond the company's ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Other factors include, but are not limited to, weather conditions, economic conditions in the company's service territory, fluctuations in energy-related commodity prices, conversion activity, other marketing efforts and other uncertainties.