Gas News Release

July 20, 1999

Consolidated Natural Gas Reports Second Quarter Earnings

• Earnings per share from continuing operations: 83-cent loss vs. 49-cent income
• Excluding merger and other special items: 33-cent income vs. 34-cent income
• Oil production up 45 percent, gas production up 18 percent

Excluding special items for both periods, income from continuing operations was 33 cents a diluted share in the second quarter of 1999, compared to 34 cents in the second quarter of 1998.

The merger costs related primarily to the surrender and cash out of stock options and awards pursuant to the provisions of the company's stock incentive plans as a result of shareholder approval of the merger, plus other merger expenses. The surrender and cash out covered stock options granted since 1989 to about 700 employees. The merger costs were anticipated and are consistent with estimated amounts disclosed previously in a joint proxy statement/prospectus sent to shareholders prior to shareholder approval.

"Our fundamental, basic business remains sound," said George A. Davidson, Jr., CNG's chairman and chief executive officer. "Our oil and gas production continues to increase and our regulated businesses remain solid. We bring a strong business into our merger with Dominion Resources, a merger which we expect to close as soon as the end of 1999."

Results by Business Component

Here are the 1999 second quarter results for each of the company's business segments:

Exploration and Production

Pretax operating income for exploration and production was $31.8 million in the second quarter of 1999, up from $28.2 million a year earlier. The improved results were due mainly to increased production of oil and natural gas. Benefits of the higher production were partly offset by lower prices for both oil and natural gas.

Production of natural gas rose to 46.6 billion cubic feet (Bcf), an increase of 7.2 Bcf, or 18 percent from a year earlier. Oil production rose to 2.8 million barrels, an increase of 900,000 barrels, or 45 percent from a year earlier. The oil increase primarily came from the new Nautilus/Nemo/Atlantis complex in the Gulf of Mexico.

The average wellhead price for CNG's gas production was $2.18 a thousand cubic feet, down 13 cents from a year earlier. CNG's average wellhead price for oil was $12.21 a barrel in the second quarter, down 50 cents from a year earlier.

Natural Gas Distribution

Pretax operating income for the company's four local gas utilities was $2.9 million in the second quarter of 1999, down from $14.5 million a year earlier. Workforce reduction costs related to a previously announced restructuring reduced 1999 operating results by $7.8 million. Increased maintenance expenses, among other minor timing items, also affected this segment.

The weather in the second quarter of 1999 was 20 percent warmer than normal. The weather in the second quarter of 1998 was 18 percent warmer than normal.

Distribution throughput - the amount of gas sold and transported - was 74.7 Bcf in the second quarter of 1999, compared with 72.1 Bcf a year earlier.

Natural Gas Transmission

Pretax operating income for the company's interstate gas pipeline and storage business was $37.7 million in the second quarter, down from $46.2 million a year earlier. The 1998 figure included $13.9 million for the favorable resolution of a regulatory contingency. The transmission segment benefited in the 1999 second quarter from lower operating expenses and other items.

Transmission throughput in the 1999 second quarter was 112.8 Bcf, down from 119.7 Bcf 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.

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 1999, 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.

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: 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.

Consolidated Natural Gas Company (CNG)

Three Months Ended June 30,                            1999                 1998
Total operating revenues                           $566,435,000         $530,428,000
Income from continuing operations            $  (80,024,000)(a)     $ 46,814,000
Discontinued operations                                     -------          $10,989,000

Net income                                           $  (80,024,000)(a)     $ 57,803,000
Earnings per common share -- diluted
    Income from continuing operations                   ($0.83)(a)            $0.49
    Discontinued operations                                 -------                $0.11
    Net income                                                  ($0.83)(a)            $0.60
 
Earnings per common share -- basic
    Income from continuing operations                   ($0.84)               $0.49
    Discontinued operations                                -------                $0.12
    Net income                                                  ($0.84)               $0.61

Average common shares - diluted                  96,934,000           96,478,000
Average common shares - basic                    95,763,000           95,447,000

Six Months Ended June 30,                              1999                 1998
Total operating revenues                        $1,612,883,000       $1,529,593,000
Income from continuing operations            $   58,963,000(a)    $  184,847,000
Discontinued operations                                     -------       $  (49,149,000)

Net income                                           $   58,963,000(a)    $  135,698,000
Earnings per common share -- diluted
    Income from continuing operations                    $0.61(a)    $         1.92
    Discontinued operations                                  ------       $        (0.50)
    Net income                                                   $0.61(a)    $         1.42

Earnings per common share -- basic
    Income from continuing operations            $         0.62       $         1.96
    Discontinued operations                                 -------       $        (0.52)
    Net income                                           $         0.62       $         1.44

Average common shares - diluted	           96,572,000           96,957,000
Average common shares - basic                    95,571,000           94,234,000

(a) Includes impact of merger related expense of $165,338,000, or $1.12 a diluted share after taxes, for costs related to the pending merger with Dominion Resources, Inc.

For further information contact:
Dan Donovan
412-690-1370