- Earnings Per Share From Continuing Operations: 49 Cents vs. 50 Cents
             - Lower Oil Prices, Warmer Weather are Major Factors
    - Includes 14 Cents a Share for Resolution of Regulatory Contingencies

    PITTSBURGH, July 30 /PRNewswire/ -- Consolidated Natural Gas Company
(NYSE: CNG) today reported that 1998 second quarter income from continuing
operations was $46.8 million, or 49 cents a diluted share, compared with
$48.1 million, or 50 cents a diluted share, a year earlier.
    The worldwide drop in wellhead oil prices and warmer-than-normal weather
were the main reasons for the lower second quarter results.  Positive factors
included higher wellhead prices for the company's natural gas production.
Also, the resolution of certain regulatory contingencies at CNG's interstate
pipeline subsidiary added 14 cents a share.
    "Income from continuing operations" includes all of CNG's operations
except wholesale energy trading and marketing.  CNG announced in April that it
would exit that business, results of which now fall under "discontinued
operations."
    Net income -- which includes income from both continuing and discontinued
operations -- was $57.8 million, or 60 cents a diluted share, in the second
quarter of 1998, compared with $39.0 million, or 41 cents a diluted share, in
the year-earlier quarter.  Net income for the 1998 second quarter included
11 cents a share for a favorable adjustment in the reserve CNG had estimated
earlier this year in connection with its decision to discontinue the wholesale
energy business.  CNG has agreed to sell its wholesale gas marketing business
to Sempra Energy Trading.  The sale is expected to close during the third
quarter.
    "The 1998 second quarter results show that while we are not immune from
fluctuations in the marketplace or the weather, CNG is a strong and growing
company," said George A. Davidson, Jr., chairman and chief executive officer.
"Our exploration and production business, for instance, felt the impact of
declining oil prices, but we were able nevertheless to obtain higher prices
for our natural gas production through our hedging program.  Our local gas
utilities were affected by the warmer-than-normal weather, which cost us
5 cents a share in the second quarter, but they continue to improve
productivity.  Finally, our interstate pipeline and storage operations are
among the strongest and best-located in the nation."
    In the first six months of 1998, CNG's income from continuing operations
was $184.8 million, or $1.92 a diluted share, down from $221.1 million, or
$2.27 a diluted share, a year earlier.  Net income was $135.7 million, or
$1.42 a diluted share, for the first six months of 1998, compared with
$210.5 million, or $2.16 a diluted share, a year earlier.
    Earnings per share (basic) were 61 cents in the second quarter of 1998,
versus 41 cents a year earlier.  Earnings per share (basic) in the first six
months of 1998 were $1.44, versus $2.22 a year earlier.

    Results by Business Component
    Here are the 1998 second quarter results for each of the company's
business components:

    Exploration and Production
    Pretax operating income for exploration and production was $28.2 million
in the second quarter of 1998, compared with $35.1 million a year earlier,
mainly because of lower oil prices.
    The average wellhead price for CNG's gas production was $2.31 a thousand
cubic feet, up 9 cents from a year earlier.  Reflecting the overall market,
CNG's average wellhead price for oil dropped to $12.71 a barrel in the second
quarter from $15.74 a year earlier.
    Production of natural gas held about steady in the second quarter, at
39.4 billion cubic feet.  Oil production was up slightly, to 1.9 million
barrels from 1.8 million barrels.

    Natural Gas Distribution
    Pretax operating income for the company's four local gas utilities was
$14.5 million in the second quarter of 1998, down from $27.3 million a year
earlier, mainly because of the weather.  The weather in the second quarter of
1998 was 18 percent warmer than normal, reducing CNG's per-share earnings by
5 cents.  In contrast, the weather in the second quarter of 1997 was
30 percent colder than normal, which increased per-share earnings in the 1997
period by 8 cents.
    In the upcoming 1998-99 winter heating season, CNG will have a weather
insurance program that will somewhat lessen the impact of extremely warm
weather on the gas distribution companies.
    Distribution throughput -- the amount of gas sold and transported -- was
72.1 billion cubic feet in the second quarter of 1998, compared with
89.6 billion cubic feet a year earlier.

    Natural Gas Transmission
    Pretax operating income for the company's interstate gas pipeline and
storage business was $45.6 million in the second quarter, up from
$34.9 million a year earlier.  This was chiefly because of the resolution of
certain regulatory contingencies.
    Transmission throughput in the 1998 second quarter was 119.7 billion cubic
feet, compared with 152.0 billion cubic feet 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 oil and
natural gas in the United States and Canada.  The company also selectively
participates in energy businesses abroad.

    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.

                    Consolidated Natural Gas Company (CNG)
    Three Months Ended June 30,                 1998                1997
    Total operating revenues                $530,428,000       $629,418,000

    Income from continuing operations        $46,814,000        $48,036,000

    Discontinued operations                  $10,989,000        $(9,051,000)

    Net income                               $57,803,000        $38,985,000

    Earnings per common share -- diluted
      Income from continuing operations            $0.49              $0.50
      Discontinued operations                      $0.11             $(0.09)
      Net income                                   $0.60              $0.41

    Earnings per common share -- basic
      Income from continuing operations            $0.49              $0.51
      Discontinued operations                      $0.12             $(0.10)
      Net income                                   $0.61              $0.41

    Average common shares - diluted           96,478,000         95,546,000

    Average common shares - basic             95,447,000         94,701,000


    Six Months Ended June 30,                       1998               1997

    Total operating revenues              $1,529,593,000     $1,773,186,000

    Income from continuing operations       $184,847,000       $221,064,000

    Discontinued operations                 $(49,149,000)      $(10,588,000)

    Net income                              $135,698,000       $210,476,000

    Earnings per common share -- diluted
      Income from continuing operations            $1.92              $2.27
      Discontinued operations                     $(0.50)            $(0.11)
      Net income                                   $1.42              $2.16

    Earnings per common share -- basic
      Income from continuing operations            $1.96              $2.33
      Discontinued operations                     $(0.52)            $(0.11)
      Net income                                   $1.44              $2.22

    Average common shares - diluted           96,957,000        100,132,000

    Average common shares - basic             94,234,000         94,647,000

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