|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
51-0337383
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Class
|
|
Shares outstanding as of October 21, 2013
|
Common stock, $0.01 par value
|
|
228,941,697
|
|
TABLE OF CONTENTS
|
||
|
|
Page
|
PART I FINANCIAL INFORMATION
|
|
|
|
|
|
ITEM 1.
|
Condensed Financial Statements
|
|
|
||
|
||
|
||
|
Consolidated Statements of Stockholders’ Equity for the nine months ended
September 30, 2013
|
|
|
||
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
PART II OTHER INFORMATION
|
|
|
|
|
|
ITEM 1.
|
||
|
|
|
ITEM 4.
|
Mine Safety Disclosures
|
|
|
|
|
ITEM 6.
|
ITEM 1.
|
CONDENSED FINANCIAL STATEMENTS
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Sales—Outside
|
$
|
1,160,114
|
|
|
$
|
1,084,041
|
|
|
$
|
3,512,055
|
|
|
$
|
3,584,805
|
|
Sales—Gas Royalty Interests
|
15,506
|
|
|
12,968
|
|
|
46,738
|
|
|
34,707
|
|
||||
Sales—Purchased Gas
|
1,608
|
|
|
953
|
|
|
4,372
|
|
|
2,443
|
|
||||
Freight—Outside
|
11,563
|
|
|
27,430
|
|
|
35,749
|
|
|
126,195
|
|
||||
Other Income
|
42,627
|
|
|
34,697
|
|
|
138,824
|
|
|
293,196
|
|
||||
Total Revenue and Other Income
|
1,231,418
|
|
|
1,160,089
|
|
|
3,737,738
|
|
|
4,041,346
|
|
||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below)
|
851,088
|
|
|
827,530
|
|
|
2,639,929
|
|
|
2,588,460
|
|
||||
Gas Royalty Interests Costs
|
12,864
|
|
|
10,543
|
|
|
38,204
|
|
|
27,916
|
|
||||
Purchased Gas Costs
|
941
|
|
|
737
|
|
|
2,961
|
|
|
2,123
|
|
||||
Freight Expense
|
11,563
|
|
|
27,430
|
|
|
35,749
|
|
|
126,195
|
|
||||
Selling, General and Administrative Expenses
|
33,472
|
|
|
36,681
|
|
|
104,265
|
|
|
109,412
|
|
||||
Depreciation, Depletion and Amortization
|
169,152
|
|
|
153,877
|
|
|
489,774
|
|
|
463,048
|
|
||||
Interest Expense
|
56,301
|
|
|
54,075
|
|
|
164,197
|
|
|
168,788
|
|
||||
Taxes Other Than Income
|
85,463
|
|
|
80,587
|
|
|
251,575
|
|
|
256,543
|
|
||||
Total Costs
|
1,220,844
|
|
|
1,191,460
|
|
|
3,726,654
|
|
|
3,742,485
|
|
||||
Earnings (Loss) Before Income Taxes
|
10,574
|
|
|
(31,371
|
)
|
|
11,084
|
|
|
298,861
|
|
||||
Income Taxes
|
74,623
|
|
|
(19,898
|
)
|
|
89,767
|
|
|
60,428
|
|
||||
Net (Loss) Income
|
(64,049
|
)
|
|
(11,473
|
)
|
|
(78,683
|
)
|
|
238,433
|
|
||||
Add: Net Loss Attributable to Noncontrolling Interest
|
398
|
|
|
105
|
|
|
942
|
|
|
134
|
|
||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(63,651
|
)
|
|
$
|
(11,368
|
)
|
|
$
|
(77,741
|
)
|
|
$
|
238,567
|
|
Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.28
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
1.05
|
|
Dilutive
|
$
|
(0.28
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
1.04
|
|
Weighted Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
228,876,336
|
|
|
227,654,395
|
|
|
228,640,671
|
|
|
227,491,284
|
|
||||
Dilutive
|
228,876,336
|
|
|
227,654,395
|
|
|
228,640,671
|
|
|
229,191,870
|
|
||||
Dividends Paid Per Share
|
$
|
0.125
|
|
|
$
|
0.125
|
|
|
$
|
0.250
|
|
|
$
|
0.375
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net (Loss) Income
|
$
|
(64,049
|
)
|
|
$
|
(11,473
|
)
|
|
$
|
(78,683
|
)
|
|
$
|
238,433
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($15,422), ($4,775), ($70,161), ($45,242))
|
24,980
|
|
|
7,921
|
|
|
113,641
|
|
|
75,080
|
|
||||
Net Increase (Decrease) in the Value of Cash Flow Hedges (Net of tax: ($8,536), $4,161, ($26,036), ($51,716))
|
13,246
|
|
|
(6,459
|
)
|
|
40,400
|
|
|
80,280
|
|
||||
Reclassification of Cash Flow Hedges from OCI to Earnings (Net of tax: $14,025, $29,683, $36,551, $97,760)
|
(24,354
|
)
|
|
(47,809
|
)
|
|
(56,595
|
)
|
|
(153,597
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Income (Loss)
|
13,872
|
|
|
(46,347
|
)
|
|
97,446
|
|
|
1,763
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive (Loss) Income
|
(50,177
|
)
|
|
(57,820
|
)
|
|
18,763
|
|
|
240,196
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest
|
398
|
|
|
105
|
|
|
942
|
|
|
134
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(49,779
|
)
|
|
$
|
(57,715
|
)
|
|
$
|
19,705
|
|
|
$
|
240,330
|
|
|
(Unaudited)
|
|
|
||||
|
September 30,
2013 |
|
December 31,
2012 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
21,086
|
|
|
$
|
21,878
|
|
Accounts and Notes Receivable:
|
|
|
|
||||
Trade
|
436,388
|
|
|
428,328
|
|
||
Notes Receivables
|
25,813
|
|
|
318,387
|
|
||
Other Receivables
|
160,931
|
|
|
131,131
|
|
||
Accounts Receivable - Securitized
|
44,364
|
|
|
37,846
|
|
||
Inventories
|
238,348
|
|
|
247,766
|
|
||
Deferred Income Taxes
|
81,825
|
|
|
148,104
|
|
||
Restricted Cash
|
12,263
|
|
|
48,294
|
|
||
Prepaid Expenses
|
162,418
|
|
|
157,360
|
|
||
Total Current Assets
|
1,183,436
|
|
|
1,539,094
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Property, Plant and Equipment
|
16,571,104
|
|
|
15,545,204
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
5,940,247
|
|
|
5,354,237
|
|
||
Total Property, Plant and Equipment—Net
|
10,630,857
|
|
|
10,190,967
|
|
||
Other Assets:
|
|
|
|
||||
Deferred Income Taxes
|
457,105
|
|
|
444,585
|
|
||
Restricted Cash
|
—
|
|
|
20,379
|
|
||
Investment in Affiliates
|
261,218
|
|
|
222,830
|
|
||
Notes Receivable
|
155
|
|
|
25,977
|
|
||
Other
|
204,301
|
|
|
227,077
|
|
||
Total Other Assets
|
922,779
|
|
|
940,848
|
|
||
TOTAL ASSETS
|
$
|
12,737,072
|
|
|
$
|
12,670,909
|
|
|
(Unaudited)
|
|
|
||||
|
September 30,
2013 |
|
December 31,
2012 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
512,182
|
|
|
$
|
507,982
|
|
Current Portion of Long-Term Debt
|
13,182
|
|
|
13,485
|
|
||
Short-Term Notes Payable
|
47,000
|
|
|
25,073
|
|
||
Accrued Income Taxes
|
87,965
|
|
|
34,219
|
|
||
Borrowings Under Securitization Facility
|
44,364
|
|
|
37,846
|
|
||
Other Accrued Liabilities
|
868,904
|
|
|
768,494
|
|
||
Total Current Liabilities
|
1,573,597
|
|
|
1,387,099
|
|
||
Long-Term Debt:
|
|
|
|
||||
Long-Term Debt
|
3,123,755
|
|
|
3,124,473
|
|
||
Capital Lease Obligations
|
48,176
|
|
|
50,113
|
|
||
Total Long-Term Debt
|
3,171,931
|
|
|
3,174,586
|
|
||
Deferred Credits and Other Liabilities:
|
|
|
|
||||
Postretirement Benefits Other Than Pensions
|
2,814,234
|
|
|
2,832,401
|
|
||
Pneumoconiosis Benefits
|
178,508
|
|
|
174,781
|
|
||
Mine Closing
|
460,515
|
|
|
446,727
|
|
||
Gas Well Closing
|
197,093
|
|
|
148,928
|
|
||
Workers’ Compensation
|
156,568
|
|
|
155,648
|
|
||
Salary Retirement
|
74,108
|
|
|
218,004
|
|
||
Reclamation
|
49,487
|
|
|
47,965
|
|
||
Other
|
103,855
|
|
|
131,025
|
|
||
Total Deferred Credits and Other Liabilities
|
4,034,368
|
|
|
4,155,479
|
|
||
TOTAL LIABILITIES
|
8,779,896
|
|
|
8,717,164
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 228,936,248 Issued and Outstanding at September 30, 2013; 228,129,467 Issued and 228,094,712 Outstanding at December 31, 2012
|
2,292
|
|
|
2,284
|
|
||
Capital in Excess of Par Value
|
2,347,973
|
|
|
2,296,908
|
|
||
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding
|
—
|
|
|
—
|
|
||
Retained Earnings
|
2,257,796
|
|
|
2,402,551
|
|
||
Accumulated Other Comprehensive Loss
|
(649,896
|
)
|
|
(747,342
|
)
|
||
Common Stock in Treasury, at Cost— No Shares at September 30, 2013 and 34,755 Shares at December 31, 2012
|
—
|
|
|
(609
|
)
|
||
Total CONSOL Energy Inc. Stockholders’ Equity
|
3,958,165
|
|
|
3,953,792
|
|
||
Noncontrolling Interest
|
(989
|
)
|
|
(47
|
)
|
||
TOTAL EQUITY
|
3,957,176
|
|
|
3,953,745
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
12,737,072
|
|
|
$
|
12,670,909
|
|
|
Common
Stock
|
|
Capital in
Excess
of Par
Value
|
|
Retained
Earnings
(Deficit)
|
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
|
Common
Stock in
Treasury
|
|
Total CONSOL Energy Inc.
Stockholders’
Equity
|
|
Non-
Controlling
Interest
|
|
Total
Equity
|
||||||||||||||||
December 31, 2012
|
$
|
2,284
|
|
|
$
|
2,296,908
|
|
|
$
|
2,402,551
|
|
|
$
|
(747,342
|
)
|
|
$
|
(609
|
)
|
|
$
|
3,953,792
|
|
|
$
|
(47
|
)
|
|
$
|
3,953,745
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Loss
|
—
|
|
|
—
|
|
|
(77,741
|
)
|
|
—
|
|
|
—
|
|
|
(77,741
|
)
|
|
(942
|
)
|
|
(78,683
|
)
|
||||||||
Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
97,446
|
|
|
—
|
|
|
97,446
|
|
|
—
|
|
|
97,446
|
|
||||||||
Comprehensive (Loss) Income
|
—
|
|
|
—
|
|
|
(77,741
|
)
|
|
97,446
|
|
|
—
|
|
|
19,705
|
|
|
(942
|
)
|
|
18,763
|
|
||||||||
Issuance of Common Stock
|
8
|
|
|
2,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,698
|
|
|
—
|
|
|
2,698
|
|
||||||||
Treasury Stock Activity
|
—
|
|
|
—
|
|
|
(9,803
|
)
|
|
—
|
|
|
609
|
|
|
(9,194
|
)
|
|
—
|
|
|
(9,194
|
)
|
||||||||
Tax Cost From Stock-Based Compensation
|
—
|
|
|
(2,539
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,539
|
)
|
|
—
|
|
|
(2,539
|
)
|
||||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
50,914
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50,914
|
|
|
—
|
|
|
50,914
|
|
||||||||
Dividends ($0.250 per share)
|
—
|
|
|
—
|
|
|
(57,211
|
)
|
|
—
|
|
|
—
|
|
|
(57,211
|
)
|
|
—
|
|
|
(57,211
|
)
|
||||||||
Balance at September 30, 2013
|
$
|
2,292
|
|
|
$
|
2,347,973
|
|
|
$
|
2,257,796
|
|
|
$
|
(649,896
|
)
|
|
$
|
—
|
|
|
$
|
3,958,165
|
|
|
$
|
(989
|
)
|
|
$
|
3,957,176
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2013
|
|
2012
|
||||
Operating Activities:
|
|
|
|
||||
Net (Loss) Income
|
$
|
(78,683
|
)
|
|
$
|
238,433
|
|
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided By Operating Activities:
|
|
|
|
||||
Depreciation, Depletion and Amortization
|
489,774
|
|
|
463,048
|
|
||
Stock-Based Compensation
|
50,914
|
|
|
38,423
|
|
||
Gain on Sale of Assets
|
(52,794
|
)
|
|
(190,257
|
)
|
||
Amortization of Mineral Leases
|
2,014
|
|
|
3,818
|
|
||
Deferred Income Taxes
|
(31,099
|
)
|
|
(5,225
|
)
|
||
Equity in Earnings of Affiliates
|
(20,276
|
)
|
|
(22,676
|
)
|
||
Changes in Operating Assets:
|
|
|
|
||||
Accounts and Notes Receivable
|
11,145
|
|
|
13,359
|
|
||
Inventories
|
9,418
|
|
|
(8,204
|
)
|
||
Prepaid Expenses
|
(9,259
|
)
|
|
(1,362
|
)
|
||
Changes in Other Assets
|
24,318
|
|
|
(8,961
|
)
|
||
Changes in Operating Liabilities:
|
|
|
|
||||
Accounts Payable
|
(20,553
|
)
|
|
5,218
|
|
||
Other Operating Liabilities
|
174,740
|
|
|
(11,130
|
)
|
||
Changes in Other Liabilities
|
8,148
|
|
|
1,469
|
|
||
Other
|
31,198
|
|
|
14,210
|
|
||
Net Cash Provided by Operating Activities
|
589,005
|
|
|
530,163
|
|
||
Investing Activities:
|
|
|
|
||||
Capital Expenditures
|
(1,195,909
|
)
|
|
(1,152,021
|
)
|
||
Change in Restricted Cash
|
56,410
|
|
|
—
|
|
||
Proceeds from Sales of Assets
|
598,174
|
|
|
583,942
|
|
||
Net Investments In Equity Affiliates
|
(18,112
|
)
|
|
(18,701
|
)
|
||
Net Cash Used in Investing Activities
|
(559,437
|
)
|
|
(586,780
|
)
|
||
Financing Activities:
|
|
|
|
||||
Proceeds from Short-Term Borrowings
|
47,000
|
|
|
—
|
|
||
Payments on Miscellaneous Borrowings
|
(32,290
|
)
|
|
(6,565
|
)
|
||
Proceeds from Securitization Facility
|
6,518
|
|
|
—
|
|
||
Tax Benefit from Stock-Based Compensation
|
2,316
|
|
|
2,578
|
|
||
Dividends Paid
|
(57,211
|
)
|
|
(85,290
|
)
|
||
Issuance of Common Stock
|
2,698
|
|
|
1,234
|
|
||
Issuance of Treasury Stock
|
609
|
|
|
109
|
|
||
Debt Issuance and Financing Fees
|
—
|
|
|
(227
|
)
|
||
Net Cash Used In Financing Activities
|
(30,360
|
)
|
|
(88,161
|
)
|
||
Net Decrease in Cash and Cash Equivalents
|
(792
|
)
|
|
(144,778
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
21,878
|
|
|
375,736
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
21,086
|
|
|
$
|
230,958
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
Anti-Dilutive Options
|
4,833,174
|
|
|
5,740,444
|
|
|
4,833,174
|
|
|
2,412,502
|
|
||||||||
Anti-Dilutive Restricted Stock Units
|
1,243,207
|
|
|
1,348,046
|
|
|
1,243,207
|
|
|
13,302
|
|
||||||||
Anti-Dilutive Performance Share Units
|
97,142
|
|
|
488,179
|
|
|
97,142
|
|
|
—
|
|
||||||||
Anti-Dilutive Performance Share Options
|
602,101
|
|
|
501,744
|
|
|
602,101
|
|
|
501,744
|
|
||||||||
|
6,775,624
|
|
|
8,078,413
|
|
|
6,775,624
|
|
|
2,927,548
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
Options
|
11,655
|
|
|
108,477
|
|
|
256,768
|
|
|
159,611
|
|
||||||||
Restricted Stock Units
|
130,523
|
|
|
22,025
|
|
|
698,664
|
|
|
548,492
|
|
||||||||
Performance Share Units
|
—
|
|
|
—
|
|
|
159,228
|
|
|
229,730
|
|
||||||||
|
142,178
|
|
|
130,502
|
|
|
1,114,660
|
|
|
937,833
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(63,651
|
)
|
|
$
|
(11,368
|
)
|
|
$
|
(77,741
|
)
|
|
$
|
238,567
|
|
||||||||
Weighted average shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
228,876,336
|
|
|
227,654,395
|
|
|
228,640,671
|
|
|
227,491,284
|
|
||||||||||||
Effect of stock-based compensation awards
|
—
|
|
|
—
|
|
|
—
|
|
|
1,700,586
|
|
||||||||||||
Dilutive
|
228,876,336
|
|
|
227,654,395
|
|
|
228,640,671
|
|
|
229,191,870
|
|
||||||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.28
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
1.05
|
|
||||||||
Dilutive
|
$
|
(0.28
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
1.04
|
|
|
Gains and Losses on Cash Flow Hedges
|
|
Postretirement Benefits
|
|
Total
|
||||||||||||
Balance at December 31, 2012
|
$
|
76,761
|
|
|
$
|
(824,103
|
)
|
|
$
|
(747,342
|
)
|
||||||
Other comprehensive income before reclassifications
|
40,400
|
|
|
61,912
|
|
|
102,312
|
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
(56,595
|
)
|
|
51,729
|
|
|
(4,866
|
)
|
|||||||||
New current period other comprehensive income
|
(16,195
|
)
|
|
113,641
|
|
|
97,446
|
|
|||||||||
Balance at September 30, 2013
|
$
|
60,566
|
|
|
$
|
(710,462
|
)
|
|
$
|
(649,896
|
)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Derivative Instruments (Note 12)
|
|
|
|
|
|
|
|
||||||||||||||||
Natural gas price swaps
|
$
|
(38,379
|
)
|
|
$
|
(77,492
|
)
|
|
$
|
(93,146
|
)
|
|
$
|
(251,357
|
)
|
||||||||
Tax benefit
|
14,025
|
|
|
29,683
|
|
|
36,551
|
|
|
97,760
|
|
||||||||||||
Net of tax
|
$
|
(24,354
|
)
|
|
$
|
(47,809
|
)
|
|
$
|
(56,595
|
)
|
|
$
|
(153,597
|
)
|
||||||||
Actuarially Determined Long-Term Liability Adjustments*(Note 3 and Note 4)
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of prior service costs
|
$
|
(8,212
|
)
|
|
$
|
(13,915
|
)
|
|
$
|
(24,635
|
)
|
|
$
|
(39,937
|
)
|
||||||||
Recognized net actuarial loss
|
21,055
|
|
|
26,611
|
|
|
69,802
|
|
|
79,688
|
|
||||||||||||
Settlement loss
|
6,296
|
|
|
—
|
|
|
38,498
|
|
|
—
|
|
||||||||||||
Total
|
19,139
|
|
|
12,696
|
|
|
83,665
|
|
|
39,751
|
|
||||||||||||
Tax expense
|
(7,306
|
)
|
|
(4,775
|
)
|
|
(31,936
|
)
|
|
(14,946
|
)
|
||||||||||||
Net of tax
|
$
|
11,833
|
|
|
$
|
7,921
|
|
|
$
|
51,729
|
|
|
$
|
24,805
|
|
|
Pension Benefits
|
|
Other Post-Employment Benefits
|
||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Service cost
|
$
|
4,897
|
|
|
$
|
5,527
|
|
|
$
|
16,184
|
|
|
$
|
15,530
|
|
|
$
|
4,849
|
|
|
$
|
4,525
|
|
|
$
|
14,547
|
|
|
$
|
14,291
|
|
Interest cost
|
9,497
|
|
|
9,396
|
|
|
27,249
|
|
|
28,190
|
|
|
29,619
|
|
|
33,687
|
|
|
88,856
|
|
|
102,008
|
|
||||||||
Expected return on plan assets
|
(13,336
|
)
|
|
(11,538
|
)
|
|
(38,191
|
)
|
|
(34,617
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of prior service credits
|
(408
|
)
|
|
(408
|
)
|
|
(1,223
|
)
|
|
(1,223
|
)
|
|
(7,804
|
)
|
|
(13,409
|
)
|
|
(23,411
|
)
|
|
(38,418
|
)
|
||||||||
Recognized net actuarial loss
|
8,042
|
|
|
11,959
|
|
|
30,764
|
|
|
35,876
|
|
|
17,595
|
|
|
20,255
|
|
|
52,784
|
|
|
60,620
|
|
||||||||
Settlement loss
|
6,296
|
|
|
—
|
|
|
38,498
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net periodic benefit cost
|
$
|
14,988
|
|
|
$
|
14,936
|
|
|
$
|
73,281
|
|
|
$
|
43,756
|
|
|
$
|
44,259
|
|
|
$
|
45,058
|
|
|
$
|
132,776
|
|
|
$
|
138,501
|
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Service cost
|
$
|
2,135
|
|
|
$
|
1,927
|
|
|
$
|
6,405
|
|
|
$
|
5,783
|
|
|
$
|
3,533
|
|
|
$
|
3,634
|
|
|
$
|
10,599
|
|
|
$
|
10,903
|
|
Interest cost
|
1,808
|
|
|
1,991
|
|
|
5,424
|
|
|
5,973
|
|
|
1,655
|
|
|
1,778
|
|
|
4,966
|
|
|
5,335
|
|
||||||||
Amortization of actuarial gain
|
(4,213
|
)
|
|
(4,933
|
)
|
|
(12,638
|
)
|
|
(14,799
|
)
|
|
(699
|
)
|
|
(986
|
)
|
|
(2,098
|
)
|
|
(2,958
|
)
|
||||||||
State administrative fees and insurance bond premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,496
|
|
|
1,795
|
|
|
4,500
|
|
|
5,340
|
|
||||||||
Legal and administrative costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
591
|
|
|
648
|
|
|
1,773
|
|
|
1,943
|
|
||||||||
Net periodic (benefit) cost
|
$
|
(270
|
)
|
|
$
|
(1,015
|
)
|
|
$
|
(809
|
)
|
|
$
|
(3,043
|
)
|
|
$
|
6,576
|
|
|
$
|
6,869
|
|
|
$
|
19,740
|
|
|
$
|
20,563
|
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Coal
|
$
|
58,050
|
|
|
$
|
78,825
|
|
Merchandise for resale
|
37,792
|
|
|
35,363
|
|
||
Supplies
|
142,506
|
|
|
133,578
|
|
||
Total Inventories
|
$
|
238,348
|
|
|
$
|
247,766
|
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Coal and other plant and equipment
|
$
|
6,207,105
|
|
|
$
|
6,030,620
|
|
Intangible drilling cost
|
1,830,666
|
|
|
1,550,297
|
|
||
Proven gas properties
|
1,601,106
|
|
|
1,596,838
|
|
||
Coal properties and surface lands
|
1,449,526
|
|
|
1,346,151
|
|
||
Unproven gas properties
|
1,383,921
|
|
|
1,266,017
|
|
||
Gas gathering equipment
|
1,046,495
|
|
|
1,006,882
|
|
||
Airshafts
|
746,134
|
|
|
706,388
|
|
||
Mine development
|
608,630
|
|
|
537,939
|
|
||
Leased coal lands
|
529,409
|
|
|
529,758
|
|
||
Gas wells and related equipment
|
623,176
|
|
|
492,367
|
|
||
Coal advance mining royalties
|
397,015
|
|
|
391,501
|
|
||
Other gas assets
|
125,635
|
|
|
82,217
|
|
||
Gas advance royalties
|
22,286
|
|
|
8,229
|
|
||
Total Property Plant and Equipment
|
16,571,104
|
|
|
15,545,204
|
|
||
Less: Accumulated DD&A
|
5,940,247
|
|
|
5,354,237
|
|
||
Total Net PP&E
|
$
|
10,630,857
|
|
|
$
|
10,190,967
|
|
Shale Play
|
|
Industry Participation Agreement Partner
|
|
Industry Participation Agreement Date
|
|
Drilling Carries Remaining*
|
||
Marcellus
|
|
Noble Energy, Inc.
|
|
September 30, 2011
|
|
$
|
1,885,785
|
|
Utica
|
|
Hess Ohio Developments, LLC
|
|
October 21, 2011
|
|
$
|
255,148
|
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Debt:
|
|
|
|
||||
Senior notes due April 2017 at 8.00%, issued at par value
|
$
|
1,500,000
|
|
|
$
|
1,500,000
|
|
Senior notes due April 2020 at 8.25%, issued at par value
|
1,250,000
|
|
|
1,250,000
|
|
||
Senior notes due March 2021 at 6.375%, issued at par value
|
250,000
|
|
|
250,000
|
|
||
MEDCO revenue bonds in series due September 2025 at 5.75%
|
102,865
|
|
|
102,865
|
|
||
Advance royalty commitments (7.43% weighted average interest rate for September 30, 2013 and December 31, 2012)
|
20,394
|
|
|
20,394
|
|
||
Other long-term notes maturing at various dates through 2031 (total value of $6,268 and $7,300 less unamortized discount of $1,166 and $1,542 at September 30, 2013 and December 31, 2012, respectively).
|
5,102
|
|
|
5,758
|
|
||
|
3,128,361
|
|
|
3,129,017
|
|
||
Less amounts due in one year *
|
4,606
|
|
|
4,544
|
|
||
Long-Term Debt
|
$
|
3,123,755
|
|
|
$
|
3,124,473
|
|
|
Amount of Commitment Expiration Per Period
|
||||||||||||||||||
|
Total
Amounts
Committed
|
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
Beyond
5 Years
|
||||||||||
Letters of Credit:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
$
|
190,358
|
|
|
$
|
71,624
|
|
|
$
|
118,734
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Environmental
|
56,294
|
|
|
54,566
|
|
|
1,728
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
83,246
|
|
|
34,488
|
|
|
48,758
|
|
|
—
|
|
|
—
|
|
|||||
Total Letters of Credit
|
329,898
|
|
|
160,678
|
|
|
169,220
|
|
|
—
|
|
|
—
|
|
|||||
Surety Bonds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
204,884
|
|
|
204,884
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Environmental
|
537,167
|
|
|
495,017
|
|
|
42,150
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
31,955
|
|
|
31,719
|
|
|
235
|
|
|
—
|
|
|
1
|
|
|||||
Total Surety Bonds
|
774,006
|
|
|
731,620
|
|
|
42,385
|
|
|
—
|
|
|
1
|
|
|||||
Total Commitments
|
$
|
1,103,904
|
|
|
$
|
892,298
|
|
|
$
|
211,605
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Obligations Due
|
Amount
|
||
Less than 1 year
|
$
|
393,709
|
|
1 - 3 years
|
253,025
|
|
|
3 - 5 years
|
189,138
|
|
|
More than 5 years
|
419,240
|
|
|
Total Purchase Obligations
|
$
|
1,255,112
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Major equipment purchases
|
|
|
|
$
|
8,990
|
|
|
$
|
59,799
|
|
|
$
|
57,571
|
|
|
$
|
104,980
|
|
Firm transportation expense
|
|
|
|
29,654
|
|
|
18,844
|
|
|
89,196
|
|
|
49,711
|
|
||||
Gas drilling obligations
|
|
|
|
26,296
|
|
|
27,100
|
|
|
81,419
|
|
|
85,192
|
|
||||
Other
|
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
492
|
|
||||
Total costs related to purchase obligations
|
|
|
|
$
|
64,940
|
|
|
$
|
105,808
|
|
|
$
|
228,186
|
|
|
$
|
240,375
|
|
|
|
|
For the Three Months Ended September 30,
|
||||||
|
2013
|
|
2012
|
||||||
Natural Gas Price Swaps
|
|
|
|
||||||
Beginning Balance – Accumulated OCI
|
$
|
71,674
|
|
|
$
|
132,731
|
|
||
Gain/(Loss) recognized in Accumulated OCI
|
$
|
13,246
|
|
|
$
|
(6,459
|
)
|
||
Less: Gain reclassified from Accumulated OCI into Outside Sales
|
$
|
24,354
|
|
|
$
|
47,809
|
|
||
Ending Balance – Accumulated OCI
|
$
|
60,566
|
|
|
$
|
78,463
|
|
||
Gain/(Loss) recognized in Outside Sales for ineffectiveness
|
$
|
2,592
|
|
|
$
|
1,732
|
|
|
|
|
For the Nine Months Ended September 30,
|
||||||
|
2013
|
|
2012
|
||||||
Natural Gas Price Swaps
|
|
|
|
||||||
Beginning Balance – Accumulated OCI
|
$
|
76,761
|
|
|
$
|
151,780
|
|
||
Gain/(Loss) recognized in Accumulated OCI
|
$
|
40,400
|
|
|
$
|
80,280
|
|
||
Less: Gain reclassified from Accumulated OCI into Outside Sales
|
$
|
56,595
|
|
|
$
|
153,597
|
|
||
Ending Balance – Accumulated OCI
|
$
|
60,566
|
|
|
$
|
78,463
|
|
||
Gain/(Loss) recognized in Outside Sales for ineffectiveness
|
$
|
(120
|
)
|
|
$
|
1,778
|
|
|
Fair Value Measurements at September 30, 2013
|
|
Fair Value Measurements at December 31, 2012
|
||||||||||||||||||||
Description
|
Quoted Prices in
Active Markets
for Identical
Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Quoted Prices in
Active Markets
for Identical
Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Gas Cash Flow Hedges
|
$
|
—
|
|
|
$
|
102,114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
128,945
|
|
|
$
|
—
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Cash and Cash Equivalents
|
$
|
21,086
|
|
|
$
|
21,086
|
|
|
$
|
21,878
|
|
|
$
|
21,878
|
|
Restricted Cash (a)
|
$
|
12,263
|
|
|
$
|
12,263
|
|
|
$
|
68,673
|
|
|
$
|
68,673
|
|
Short-Term Notes Payable
|
$
|
(47,000
|
)
|
|
$
|
(47,000
|
)
|
|
$
|
(25,073
|
)
|
|
$
|
(25,073
|
)
|
Borrowings Under Securitization Facility
|
$
|
(44,364
|
)
|
|
$
|
(44,364
|
)
|
|
$
|
(37,846
|
)
|
|
$
|
(37,846
|
)
|
Long-Term Debt
|
$
|
(3,128,361
|
)
|
|
$
|
(3,320,618
|
)
|
|
$
|
(3,129,017
|
)
|
|
$
|
(3,378,058
|
)
|
|
Thermal
|
|
Low Volatile
Metallurgical
|
|
High Volatile
Metallurgical
|
|
Other
Coal
|
|
Total Coal
|
|
Coalbed
Methane
|
|
Marcellus
Shale
|
|
Shallow Oil and Gas
|
|
Other
Gas
|
|
Total
Gas
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||||
Sales—outside
|
$
|
753,692
|
|
|
$
|
98,232
|
|
|
$
|
29,608
|
|
|
$
|
7,470
|
|
|
$
|
889,002
|
|
|
$
|
83,269
|
|
|
$
|
72,406
|
|
|
$
|
32,957
|
|
|
$
|
4,150
|
|
|
$
|
192,782
|
|
|
$
|
78,330
|
|
|
$
|
—
|
|
|
$
|
1,160,114
|
|
(A)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,608
|
|
|
1,608
|
|
|
—
|
|
|
—
|
|
|
1,608
|
|
|
|||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,506
|
|
|
15,506
|
|
|
—
|
|
|
—
|
|
|
15,506
|
|
|
|||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
11,563
|
|
|
11,563
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,563
|
|
|
|||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
601
|
|
|
601
|
|
|
32,213
|
|
|
(32,814
|
)
|
|
—
|
|
|
|||||||||||||
Total Sales and Freight
|
$
|
753,692
|
|
|
$
|
98,232
|
|
|
$
|
29,608
|
|
|
$
|
19,033
|
|
|
$
|
900,565
|
|
|
$
|
83,269
|
|
|
$
|
72,406
|
|
|
$
|
32,957
|
|
|
$
|
21,865
|
|
|
$
|
210,497
|
|
|
$
|
110,543
|
|
|
$
|
(32,814
|
)
|
|
$
|
1,188,791
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
128,112
|
|
|
$
|
21,295
|
|
|
$
|
6,466
|
|
|
$
|
(70,068
|
)
|
|
$
|
85,805
|
|
|
$
|
20,909
|
|
|
$
|
27,941
|
|
|
$
|
(2,124
|
)
|
|
$
|
(48,593
|
)
|
|
$
|
(1,867
|
)
|
|
$
|
(6,991
|
)
|
|
$
|
(66,373
|
)
|
|
$
|
10,574
|
|
(B)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
5,792,969
|
|
|
|
|
|
|
|
|
|
|
$
|
5,994,072
|
|
|
$
|
356,848
|
|
|
$
|
593,183
|
|
|
$
|
12,737,072
|
|
(C)
|
||||||||||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
104,530
|
|
|
|
|
|
|
|
|
|
|
$
|
58,444
|
|
|
$
|
6,178
|
|
|
$
|
—
|
|
|
$
|
169,152
|
|
|
||||||||||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
156,730
|
|
|
|
|
|
|
|
|
|
|
$
|
273,474
|
|
|
$
|
7,705
|
|
|
$
|
—
|
|
|
$
|
437,909
|
|
|
|
Thermal
|
|
Low Volatile
Metallurgical
|
|
High Volatile
Metallurgical
|
|
Other
Coal
|
|
Total
Coal
|
|
Coalbed
Methane
|
|
Marcellus
Shale
|
|
Shallow Oil and Gas
|
|
Other
Gas
|
|
Total Gas
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||||
Sales—outside
|
$
|
667,372
|
|
|
$
|
110,239
|
|
|
$
|
48,484
|
|
|
$
|
5,214
|
|
|
$
|
831,309
|
|
|
$
|
94,169
|
|
|
$
|
36,253
|
|
|
$
|
32,288
|
|
|
$
|
2,392
|
|
|
$
|
165,102
|
|
|
$
|
87,630
|
|
|
$
|
—
|
|
|
$
|
1,084,041
|
|
(D)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
953
|
|
|
953
|
|
|
—
|
|
|
—
|
|
|
953
|
|
|
|||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,968
|
|
|
12,968
|
|
|
—
|
|
|
—
|
|
|
12,968
|
|
|
|||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
27,430
|
|
|
27,430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,430
|
|
|
|||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
345
|
|
|
345
|
|
|
37,987
|
|
|
(38,332
|
)
|
|
—
|
|
|
|||||||||||||
Total Sales and Freight
|
$
|
667,372
|
|
|
$
|
110,239
|
|
|
$
|
48,484
|
|
|
$
|
32,644
|
|
|
$
|
858,739
|
|
|
$
|
94,169
|
|
|
$
|
36,253
|
|
|
$
|
32,288
|
|
|
$
|
16,658
|
|
|
$
|
179,368
|
|
|
$
|
125,617
|
|
|
$
|
(38,332
|
)
|
|
$
|
1,125,392
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
89,743
|
|
|
$
|
42,722
|
|
|
$
|
9,640
|
|
|
$
|
(134,301
|
)
|
|
$
|
7,804
|
|
|
$
|
30,983
|
|
|
$
|
6,347
|
|
|
$
|
(3,439
|
)
|
|
$
|
(22,227
|
)
|
|
$
|
11,664
|
|
|
$
|
8,494
|
|
|
$
|
(59,333
|
)
|
|
$
|
(31,371
|
)
|
(E)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
5,594,926
|
|
|
|
|
|
|
|
|
|
|
$
|
5,870,451
|
|
|
$
|
376,400
|
|
|
$
|
714,817
|
|
|
$
|
12,556,594
|
|
(F)
|
||||||||||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
95,702
|
|
|
|
|
|
|
|
|
|
|
$
|
52,215
|
|
|
$
|
—
|
|
|
$
|
5,960
|
|
|
$
|
153,877
|
|
|
||||||||||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
254,864
|
|
|
|
|
|
|
|
|
|
|
$
|
166,617
|
|
|
$
|
16,141
|
|
|
$
|
—
|
|
|
$
|
437,622
|
|
|
(D)
|
Included in the Coal segment are sales of
$129,014
to First Energy which comprises over 10% of sales.
|
(E)
|
Includes equity in earnings of unconsolidated affiliates of $
(3,504)
, $
2,503
and $
8,574
for Coal, Gas and All Other, respectively.
|
|
Thermal
|
|
Low Volatile
Metallurgical
|
|
High Volatile
Metallurgical
|
|
Other
Coal
|
|
Total Coal
|
|
Coalbed
Methane
|
|
Marcellus
Shale
|
|
Shallow Oil and Gas
|
|
Other
Gas
|
|
Total
Gas
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||||
Sales—outside
|
$
|
2,212,909
|
|
|
$
|
356,066
|
|
|
$
|
145,345
|
|
|
$
|
18,138
|
|
|
$
|
2,732,458
|
|
|
$
|
254,708
|
|
|
$
|
167,394
|
|
|
$
|
99,138
|
|
|
$
|
10,620
|
|
|
$
|
531,860
|
|
|
$
|
247,737
|
|
|
$
|
—
|
|
|
$
|
3,512,055
|
|
(G)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,372
|
|
|
4,372
|
|
|
—
|
|
|
—
|
|
|
4,372
|
|
|
|||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,738
|
|
|
46,738
|
|
|
—
|
|
|
—
|
|
|
46,738
|
|
|
|||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
35,749
|
|
|
35,749
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,749
|
|
|
|||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,363
|
|
|
2,363
|
|
|
100,118
|
|
|
(102,481
|
)
|
|
—
|
|
|
|||||||||||||
Total Sales and Freight
|
$
|
2,212,909
|
|
|
$
|
356,066
|
|
|
$
|
145,345
|
|
|
$
|
53,887
|
|
|
$
|
2,768,207
|
|
|
$
|
254,708
|
|
|
$
|
167,394
|
|
|
$
|
99,138
|
|
|
$
|
64,093
|
|
|
$
|
585,333
|
|
|
$
|
347,855
|
|
|
$
|
(102,481
|
)
|
|
$
|
3,598,914
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
360,312
|
|
|
$
|
106,831
|
|
|
$
|
37,063
|
|
|
$
|
(259,421
|
)
|
|
$
|
244,785
|
|
|
$
|
64,345
|
|
|
$
|
53,389
|
|
|
$
|
(11,861
|
)
|
|
$
|
(112,990
|
)
|
|
$
|
(7,117
|
)
|
|
$
|
(48,426
|
)
|
|
$
|
(178,158
|
)
|
|
$
|
11,084
|
|
(H)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
5,792,969
|
|
|
|
|
|
|
|
|
|
|
$
|
5,994,072
|
|
|
$
|
356,848
|
|
|
$
|
593,183
|
|
|
$
|
12,737,072
|
|
(I)
|
||||||||||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
307,992
|
|
|
|
|
|
|
|
|
|
|
$
|
163,079
|
|
|
$
|
18,703
|
|
|
$
|
—
|
|
|
$
|
489,774
|
|
|
||||||||||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
511,626
|
|
|
|
|
|
|
|
|
|
|
$
|
669,067
|
|
|
$
|
15,216
|
|
|
$
|
—
|
|
|
$
|
1,195,909
|
|
|
|
Thermal
|
|
Low Volatile
Metallurgical
|
|
High Volatile
Metallurgical
|
|
Other
Coal
|
|
Total
Coal
|
|
Coalbed
Methane
|
|
Marcellus
Shale
|
|
Shallow Oil and Gas
|
|
Other
Gas
|
|
Total Gas
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||||
Sales—outside
|
$
|
2,227,728
|
|
|
$
|
403,460
|
|
|
$
|
180,302
|
|
|
$
|
18,905
|
|
|
$
|
2,830,395
|
|
|
$
|
281,784
|
|
|
$
|
83,774
|
|
|
$
|
100,868
|
|
|
$
|
6,978
|
|
|
$
|
473,404
|
|
|
$
|
281,006
|
|
|
$
|
—
|
|
|
$
|
3,584,805
|
|
(J)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,443
|
|
|
2,443
|
|
|
—
|
|
|
—
|
|
|
2,443
|
|
|
|||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,707
|
|
|
34,707
|
|
|
—
|
|
|
—
|
|
|
34,707
|
|
|
|||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
126,195
|
|
|
126,195
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
126,195
|
|
|
|||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,171
|
|
|
1,171
|
|
|
111,332
|
|
|
(112,503
|
)
|
|
—
|
|
|
|||||||||||||
Total Sales and Freight
|
$
|
2,227,728
|
|
|
$
|
403,460
|
|
|
$
|
180,302
|
|
|
$
|
145,100
|
|
|
$
|
2,956,590
|
|
|
$
|
281,784
|
|
|
$
|
83,774
|
|
|
$
|
100,868
|
|
|
$
|
45,299
|
|
|
$
|
511,725
|
|
|
$
|
392,338
|
|
|
$
|
(112,503
|
)
|
|
$
|
3,748,150
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
351,889
|
|
|
$
|
164,843
|
|
|
$
|
44,994
|
|
|
$
|
(134,271
|
)
|
|
$
|
427,455
|
|
|
$
|
91,717
|
|
|
$
|
14,433
|
|
|
$
|
(9,571
|
)
|
|
$
|
(71,271
|
)
|
|
$
|
25,308
|
|
|
$
|
27,539
|
|
|
$
|
(181,441
|
)
|
|
$
|
298,861
|
|
(K)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
5,594,926
|
|
|
|
|
|
|
|
|
|
|
$
|
5,870,451
|
|
|
$
|
376,400
|
|
|
$
|
714,817
|
|
|
$
|
12,556,594
|
|
(L)
|
||||||||||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
297,148
|
|
|
|
|
|
|
|
|
|
|
$
|
148,344
|
|
|
$
|
—
|
|
|
$
|
17,556
|
|
|
$
|
463,048
|
|
|
||||||||||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
702,880
|
|
|
|
|
|
|
|
|
|
|
$
|
408,278
|
|
|
$
|
40,863
|
|
|
$
|
—
|
|
|
$
|
1,152,021
|
|
|
(J)
|
Included in the Coal segment are sales of
$409,745
to First Energy and
$382,950
to Xcoal Energy & Resources each comprising over 10% of sales.
|
(K)
|
Includes equity in earnings of unconsolidated affiliates of $
7,588
,
$6,484
and
$8,604
for Coal, Gas and All Other, respectively.
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Segment Earnings Before Income Taxes for total reportable business segments
|
$
|
83,938
|
|
|
$
|
19,468
|
|
|
$
|
237,668
|
|
|
$
|
452,763
|
|
Segment (Loss) Earnings Before Income Taxes for all other businesses
|
(6,991
|
)
|
|
8,494
|
|
|
(48,426
|
)
|
|
27,539
|
|
||||
Interest expense, net and other non-operating activity (M)
|
(57,482
|
)
|
|
(56,338
|
)
|
|
(166,548
|
)
|
|
(175,323
|
)
|
||||
Other Corporate Items (M)
|
(8,891
|
)
|
|
(2,995
|
)
|
|
(11,610
|
)
|
|
(6,118
|
)
|
||||
Earnings Before Income Taxes
|
$
|
10,574
|
|
|
$
|
(31,371
|
)
|
|
$
|
11,084
|
|
|
$
|
298,861
|
|
Total Assets:
|
September 30,
|
||||||
2013
|
|
2012
|
|||||
Segment assets for total reportable business segments
|
$
|
11,787,041
|
|
|
$
|
11,465,377
|
|
Segment assets for all other businesses
|
356,848
|
|
|
376,400
|
|
||
Items excluded from segment assets:
|
|
|
|
||||
Cash and other investments (M)
|
17,988
|
|
|
40,331
|
|
||
Recoverable income taxes
|
—
|
|
|
12,132
|
|
||
Deferred tax assets
|
538,930
|
|
|
618,742
|
|
||
Bond issuance costs
|
36,265
|
|
|
43,612
|
|
||
Total Consolidated Assets
|
$
|
12,737,072
|
|
|
$
|
12,556,594
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Sales—Outside
|
$
|
—
|
|
|
$
|
193,381
|
|
|
$
|
911,732
|
|
|
$
|
54,174
|
|
|
$
|
827
|
|
|
$
|
1,160,114
|
|
Sales—Gas Royalty Interests
|
—
|
|
|
15,506
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,506
|
|
||||||
Sales—Purchased Gas
|
—
|
|
|
1,608
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,608
|
|
||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
11,563
|
|
|
—
|
|
|
—
|
|
|
11,563
|
|
||||||
Other Income
|
78,203
|
|
|
12,596
|
|
|
25,103
|
|
|
4,928
|
|
|
(78,203
|
)
|
|
42,627
|
|
||||||
Total Revenue and Other Income
|
78,203
|
|
|
223,091
|
|
|
948,398
|
|
|
59,102
|
|
|
(77,376
|
)
|
|
1,231,418
|
|
||||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below)
|
37,591
|
|
|
128,402
|
|
|
620,652
|
|
|
54,857
|
|
|
9,586
|
|
|
851,088
|
|
||||||
Gas Royalty Interests Costs
|
—
|
|
|
12,874
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
12,864
|
|
||||||
Purchased Gas Costs
|
—
|
|
|
941
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
941
|
|
||||||
Related Party Activity
|
9,710
|
|
|
—
|
|
|
(29,271
|
)
|
|
458
|
|
|
19,103
|
|
|
—
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
11,563
|
|
|
—
|
|
|
—
|
|
|
11,563
|
|
||||||
Selling, General and Administrative Expenses
|
—
|
|
|
11,600
|
|
|
21,582
|
|
|
290
|
|
|
—
|
|
|
33,472
|
|
||||||
Depreciation, Depletion and Amortization
|
3,288
|
|
|
58,444
|
|
|
106,910
|
|
|
510
|
|
|
—
|
|
|
169,152
|
|
||||||
Interest Expense
|
52,165
|
|
|
2,578
|
|
|
1,548
|
|
|
13
|
|
|
(3
|
)
|
|
56,301
|
|
||||||
Taxes Other Than Income
|
165
|
|
|
9,847
|
|
|
74,730
|
|
|
721
|
|
|
—
|
|
|
85,463
|
|
||||||
Total Costs
|
102,919
|
|
|
224,686
|
|
|
807,714
|
|
|
56,849
|
|
|
28,676
|
|
|
1,220,844
|
|
||||||
Earnings (Loss) Before Income Taxes
|
(24,716
|
)
|
|
(1,595
|
)
|
|
140,684
|
|
|
2,253
|
|
|
(106,052
|
)
|
|
10,574
|
|
||||||
Income Tax Expense (Benefit)
|
38,935
|
|
|
(602
|
)
|
|
37,143
|
|
|
(853
|
)
|
|
—
|
|
|
74,623
|
|
||||||
Net (Loss) Income
|
(63,651
|
)
|
|
(993
|
)
|
|
103,541
|
|
|
3,106
|
|
|
(106,052
|
)
|
|
(64,049
|
)
|
||||||
Add: Net Loss Attributable to Noncontrolling Interest
|
—
|
|
|
398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398
|
|
||||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(63,651
|
)
|
|
$
|
(595
|
)
|
|
$
|
103,541
|
|
|
$
|
3,106
|
|
|
$
|
(106,052
|
)
|
|
$
|
(63,651
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
16,187
|
|
|
$
|
3,847
|
|
|
$
|
—
|
|
|
$
|
1,052
|
|
|
$
|
—
|
|
|
$
|
21,086
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
60,255
|
|
|
—
|
|
|
376,133
|
|
|
—
|
|
|
436,388
|
|
||||||
Notes Receivable
|
1,193
|
|
|
—
|
|
|
24,620
|
|
|
—
|
|
|
—
|
|
|
25,813
|
|
||||||
Other Receivables
|
3,866
|
|
|
144,253
|
|
|
7,780
|
|
|
5,032
|
|
|
—
|
|
|
160,931
|
|
||||||
Accounts Receivable—Securitized
|
—
|
|
|
—
|
|
|
—
|
|
|
44,364
|
|
|
—
|
|
|
44,364
|
|
||||||
Inventories
|
—
|
|
|
15,679
|
|
|
184,877
|
|
|
37,792
|
|
|
—
|
|
|
238,348
|
|
||||||
Deferred Income Taxes
|
106,291
|
|
|
(24,466
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,825
|
|
||||||
Restricted Cash
|
—
|
|
|
—
|
|
|
12,263
|
|
|
—
|
|
|
—
|
|
|
12,263
|
|
||||||
Prepaid Expenses
|
37,054
|
|
|
81,970
|
|
|
41,981
|
|
|
1,413
|
|
|
—
|
|
|
162,418
|
|
||||||
Total Current Assets
|
164,591
|
|
|
281,538
|
|
|
271,521
|
|
|
465,786
|
|
|
—
|
|
|
1,183,436
|
|
||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, Plant and Equipment
|
218,303
|
|
|
6,586,647
|
|
|
9,740,510
|
|
|
25,644
|
|
|
—
|
|
|
16,571,104
|
|
||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
139,157
|
|
|
1,122,401
|
|
|
4,659,763
|
|
|
18,926
|
|
|
—
|
|
|
5,940,247
|
|
||||||
Total Property, Plant and Equipment-Net
|
79,146
|
|
|
5,464,246
|
|
|
5,080,747
|
|
|
6,718
|
|
|
—
|
|
|
10,630,857
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Income Taxes
|
875,354
|
|
|
(418,249
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
457,105
|
|
||||||
Investment in Affiliates
|
10,234,178
|
|
|
183,895
|
|
|
750,771
|
|
|
—
|
|
|
(10,907,626
|
)
|
|
261,218
|
|
||||||
Notes Receivable
|
155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||||
Other
|
109,998
|
|
|
39,916
|
|
|
44,822
|
|
|
9,565
|
|
|
—
|
|
|
204,301
|
|
||||||
Total Other Assets
|
11,219,685
|
|
|
(194,438
|
)
|
|
795,593
|
|
|
9,565
|
|
|
(10,907,626
|
)
|
|
922,779
|
|
||||||
Total Assets
|
$
|
11,463,422
|
|
|
$
|
5,551,346
|
|
|
$
|
6,147,861
|
|
|
$
|
482,069
|
|
|
$
|
(10,907,626
|
)
|
|
$
|
12,737,072
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
$
|
193,491
|
|
|
$
|
257,487
|
|
|
$
|
48,128
|
|
|
$
|
13,076
|
|
|
$
|
—
|
|
|
$
|
512,182
|
|
Accounts Payable (Recoverable)—Related Parties
|
3,882,644
|
|
|
39,594
|
|
|
(4,202,168
|
)
|
|
241,430
|
|
|
38,500
|
|
|
—
|
|
||||||
Current Portion Long-Term Debt
|
1,454
|
|
|
6,036
|
|
|
4,914
|
|
|
778
|
|
|
—
|
|
|
13,182
|
|
||||||
Short-Term Notes Payable
|
—
|
|
|
85,500
|
|
|
—
|
|
|
—
|
|
|
(38,500
|
)
|
|
47,000
|
|
||||||
Accrued Income Taxes
|
64,059
|
|
|
23,906
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,965
|
|
||||||
Borrowings Under Securitization Facility
|
—
|
|
|
—
|
|
|
—
|
|
|
44,364
|
|
|
—
|
|
|
44,364
|
|
||||||
Other Accrued Liabilities
|
209,321
|
|
|
70,835
|
|
|
578,019
|
|
|
10,729
|
|
|
—
|
|
|
868,904
|
|
||||||
Total Current Liabilities
|
4,350,969
|
|
|
483,358
|
|
|
(3,571,107
|
)
|
|
310,377
|
|
|
—
|
|
|
1,573,597
|
|
||||||
Long-Term Debt:
|
3,004,976
|
|
|
43,682
|
|
|
121,864
|
|
|
1,409
|
|
|
—
|
|
|
3,171,931
|
|
||||||
Deferred Credits and Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
2,814,234
|
|
|
—
|
|
|
—
|
|
|
2,814,234
|
|
||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
178,508
|
|
|
—
|
|
|
—
|
|
|
178,508
|
|
||||||
Mine Closing
|
—
|
|
|
—
|
|
|
460,515
|
|
|
—
|
|
|
—
|
|
|
460,515
|
|
||||||
Gas Well Closing
|
—
|
|
|
118,075
|
|
|
79,018
|
|
|
—
|
|
|
—
|
|
|
197,093
|
|
||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
156,242
|
|
|
326
|
|
|
—
|
|
|
156,568
|
|
||||||
Salary Retirement
|
74,108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,108
|
|
||||||
Reclamation
|
—
|
|
|
—
|
|
|
49,487
|
|
|
—
|
|
|
—
|
|
|
49,487
|
|
||||||
Other
|
75,204
|
|
|
12,227
|
|
|
16,424
|
|
|
—
|
|
|
—
|
|
|
103,855
|
|
||||||
Total Deferred Credits and Other Liabilities
|
149,312
|
|
|
130,302
|
|
|
3,754,428
|
|
|
326
|
|
|
—
|
|
|
4,034,368
|
|
||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
3,958,165
|
|
|
4,894,993
|
|
|
5,842,676
|
|
|
169,957
|
|
|
(10,907,626
|
)
|
|
3,958,165
|
|
||||||
Noncontrolling Interest
|
—
|
|
|
(989
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(989
|
)
|
||||||
Total Liabilities and Equity
|
$
|
11,463,422
|
|
|
$
|
5,551,346
|
|
|
$
|
6,147,861
|
|
|
$
|
482,069
|
|
|
$
|
(10,907,626
|
)
|
|
$
|
12,737,072
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Sales—Outside
|
$
|
—
|
|
|
$
|
165,448
|
|
|
$
|
861,009
|
|
|
$
|
58,405
|
|
|
$
|
(821
|
)
|
|
$
|
1,084,041
|
|
Sales—Gas Royalty Interests
|
—
|
|
|
12,968
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,968
|
|
||||||
Sales—Purchased Gas
|
—
|
|
|
953
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
953
|
|
||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
27,430
|
|
|
—
|
|
|
—
|
|
|
27,430
|
|
||||||
Other Income
|
(17,948
|
)
|
|
11,772
|
|
|
170,877
|
|
|
4,917
|
|
|
(134,921
|
)
|
|
34,697
|
|
||||||
Total Revenue and Other Income
|
(17,948
|
)
|
|
191,141
|
|
|
1,059,316
|
|
|
63,322
|
|
|
(135,742
|
)
|
|
1,160,089
|
|
||||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below)
|
18,699
|
|
|
96,619
|
|
|
647,158
|
|
|
57,408
|
|
|
7,646
|
|
|
827,530
|
|
||||||
Gas Royalty Interests Costs
|
—
|
|
|
10,565
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
10,543
|
|
||||||
Purchased Gas Costs
|
—
|
|
|
737
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
737
|
|
||||||
Related Party Activity
|
8,575
|
|
|
—
|
|
|
(18,962
|
)
|
|
427
|
|
|
9,960
|
|
|
—
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
27,430
|
|
|
—
|
|
|
—
|
|
|
27,430
|
|
||||||
Selling, General and Administrative Expenses
|
—
|
|
|
9,906
|
|
|
26,412
|
|
|
363
|
|
|
—
|
|
|
36,681
|
|
||||||
Depreciation, Depletion and Amortization
|
3,085
|
|
|
52,214
|
|
|
98,060
|
|
|
518
|
|
|
—
|
|
|
153,877
|
|
||||||
Interest Expense
|
50,811
|
|
|
1,145
|
|
|
2,267
|
|
|
11
|
|
|
(159
|
)
|
|
54,075
|
|
||||||
Taxes Other Than Income
|
(504
|
)
|
|
8,426
|
|
|
71,985
|
|
|
680
|
|
|
—
|
|
|
80,587
|
|
||||||
Total Costs
|
80,666
|
|
|
179,612
|
|
|
854,350
|
|
|
59,407
|
|
|
17,425
|
|
|
1,191,460
|
|
||||||
(Loss) Earnings Before Income Taxes
|
(98,614
|
)
|
|
11,529
|
|
|
204,966
|
|
|
3,915
|
|
|
(153,167
|
)
|
|
(31,371
|
)
|
||||||
Income Tax (Benefit) Expense
|
(87,246
|
)
|
|
4,433
|
|
|
61,424
|
|
|
1,491
|
|
|
—
|
|
|
(19,898
|
)
|
||||||
Net (Loss) Income
|
(11,368
|
)
|
|
7,096
|
|
|
143,542
|
|
|
2,424
|
|
|
(153,167
|
)
|
|
(11,473
|
)
|
||||||
Add: Net Loss Attributable to Noncontrolling Interest
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(11,368
|
)
|
|
$
|
7,201
|
|
|
$
|
143,542
|
|
|
$
|
2,424
|
|
|
$
|
(153,167
|
)
|
|
$
|
(11,368
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
17,491
|
|
|
$
|
3,352
|
|
|
$
|
175
|
|
|
$
|
860
|
|
|
$
|
—
|
|
|
$
|
21,878
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
58,126
|
|
|
—
|
|
|
370,202
|
|
|
—
|
|
|
428,328
|
|
||||||
Notes Receivable
|
154
|
|
|
315,730
|
|
|
2,503
|
|
|
—
|
|
|
—
|
|
|
318,387
|
|
||||||
Other Receivables
|
6,335
|
|
|
214,748
|
|
|
33,289
|
|
|
5,159
|
|
|
(128,400
|
)
|
|
131,131
|
|
||||||
Accounts Receivable—Securitized
|
—
|
|
|
—
|
|
|
—
|
|
|
37,846
|
|
|
—
|
|
|
37,846
|
|
||||||
Inventories
|
—
|
|
|
14,133
|
|
|
198,269
|
|
|
35,364
|
|
|
—
|
|
|
247,766
|
|
||||||
Deferred Income Taxes
|
174,176
|
|
|
(26,072
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,104
|
|
||||||
Restricted Cash
|
—
|
|
|
—
|
|
|
48,294
|
|
|
—
|
|
|
—
|
|
|
48,294
|
|
||||||
Prepaid Expenses
|
29,589
|
|
|
86,186
|
|
|
40,215
|
|
|
1,370
|
|
|
—
|
|
|
157,360
|
|
||||||
Total Current Assets
|
227,745
|
|
|
666,203
|
|
|
322,745
|
|
|
450,801
|
|
|
(128,400
|
)
|
|
1,539,094
|
|
||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, Plant and Equipment
|
216,448
|
|
|
5,956,207
|
|
|
9,347,370
|
|
|
25,179
|
|
|
—
|
|
|
15,545,204
|
|
||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
126,048
|
|
|
960,613
|
|
|
4,249,507
|
|
|
18,069
|
|
|
—
|
|
|
5,354,237
|
|
||||||
Total Property, Plant and Equipment-Net
|
90,400
|
|
|
4,995,594
|
|
|
5,097,863
|
|
|
7,110
|
|
|
—
|
|
|
10,190,967
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Income Taxes
|
884,310
|
|
|
(439,725
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
444,585
|
|
||||||
Restricted Cash
|
—
|
|
|
—
|
|
|
20,379
|
|
|
—
|
|
|
—
|
|
|
20,379
|
|
||||||
Investment in Affiliates
|
9,917,050
|
|
|
143,876
|
|
|
769,058
|
|
|
—
|
|
|
(10,607,154
|
)
|
|
222,830
|
|
||||||
Notes Receivable
|
239
|
|
|
—
|
|
|
25,738
|
|
|
—
|
|
|
—
|
|
|
25,977
|
|
||||||
Other
|
118,938
|
|
|
65,935
|
|
|
32,016
|
|
|
10,188
|
|
|
—
|
|
|
227,077
|
|
||||||
Total Other Assets
|
10,920,537
|
|
|
(229,914
|
)
|
|
847,191
|
|
|
10,188
|
|
|
(10,607,154
|
)
|
|
940,848
|
|
||||||
Total Assets
|
$
|
11,238,682
|
|
|
$
|
5,431,883
|
|
|
$
|
6,267,799
|
|
|
$
|
468,099
|
|
|
$
|
(10,735,554
|
)
|
|
$
|
12,670,909
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
$
|
177,734
|
|
|
$
|
166,182
|
|
|
$
|
154,936
|
|
|
$
|
9,130
|
|
|
$
|
—
|
|
|
$
|
507,982
|
|
Accounts Payable (Recoverable)-Related Parties
|
3,599,216
|
|
|
23,981
|
|
|
(3,749,584
|
)
|
|
254,787
|
|
|
(128,400
|
)
|
|
—
|
|
||||||
Current Portion of Long-Term Debt
|
1,554
|
|
|
5,953
|
|
|
5,222
|
|
|
756
|
|
|
—
|
|
|
13,485
|
|
||||||
Short-Term Notes Payable
|
25,073
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,073
|
|
||||||
Accrued Income Taxes
|
20,488
|
|
|
13,731
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,219
|
|
||||||
Borrowings Under Securitization Facility
|
—
|
|
|
—
|
|
|
—
|
|
|
37,846
|
|
|
—
|
|
|
37,846
|
|
||||||
Other Accrued Liabilities
|
135,407
|
|
|
57,074
|
|
|
566,485
|
|
|
9,528
|
|
|
—
|
|
|
768,494
|
|
||||||
Total Current Liabilities
|
3,959,472
|
|
|
266,921
|
|
|
(3,022,941
|
)
|
|
312,047
|
|
|
(128,400
|
)
|
|
1,387,099
|
|
||||||
Long-Term Debt:
|
3,005,515
|
|
|
46,081
|
|
|
121,523
|
|
|
1,467
|
|
|
—
|
|
|
3,174,586
|
|
||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
2,832,401
|
|
|
—
|
|
|
—
|
|
|
2,832,401
|
|
||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
174,781
|
|
|
—
|
|
|
—
|
|
|
174,781
|
|
||||||
Mine Closing
|
—
|
|
|
—
|
|
|
446,727
|
|
|
—
|
|
|
—
|
|
|
446,727
|
|
||||||
Gas Well Closing
|
—
|
|
|
80,097
|
|
|
68,831
|
|
|
—
|
|
|
—
|
|
|
148,928
|
|
||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
155,342
|
|
|
306
|
|
|
—
|
|
|
155,648
|
|
||||||
Salary Retirement
|
218,004
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
218,004
|
|
||||||
Reclamation
|
—
|
|
|
—
|
|
|
47,965
|
|
|
—
|
|
|
—
|
|
|
47,965
|
|
||||||
Other
|
101,899
|
|
|
24,518
|
|
|
4,608
|
|
|
—
|
|
|
—
|
|
|
131,025
|
|
||||||
Total Deferred Credits and Other Liabilities
|
319,903
|
|
|
104,615
|
|
|
3,730,655
|
|
|
306
|
|
|
—
|
|
|
4,155,479
|
|
||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
3,953,792
|
|
|
5,014,313
|
|
|
5,438,562
|
|
|
154,279
|
|
|
(10,607,154
|
)
|
|
3,953,792
|
|
||||||
Noncontrolling Interest
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
||||||
Total Liabilities and Equity
|
$
|
11,238,682
|
|
|
$
|
5,431,883
|
|
|
$
|
6,267,799
|
|
|
$
|
468,099
|
|
|
$
|
(10,735,554
|
)
|
|
$
|
12,670,909
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Sales—Outside
|
$
|
—
|
|
|
$
|
534,221
|
|
|
$
|
2,813,430
|
|
|
$
|
161,837
|
|
|
$
|
2,567
|
|
|
$
|
3,512,055
|
|
Sales—Gas Royalty Interests
|
—
|
|
|
46,738
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,738
|
|
||||||
Sales—Purchased Gas
|
—
|
|
|
4,372
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,372
|
|
||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
35,749
|
|
|
—
|
|
|
—
|
|
|
35,749
|
|
||||||
Other Income
|
354,386
|
|
|
37,055
|
|
|
86,064
|
|
|
15,705
|
|
|
(354,386
|
)
|
|
138,824
|
|
||||||
Total Revenue and Other Income
|
354,386
|
|
|
622,386
|
|
|
2,935,243
|
|
|
177,542
|
|
|
(351,819
|
)
|
|
3,737,738
|
|
||||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below)
|
117,830
|
|
|
359,397
|
|
|
1,971,483
|
|
|
162,050
|
|
|
29,169
|
|
|
2,639,929
|
|
||||||
Gas Royalty Interests Costs
|
—
|
|
|
38,235
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
38,204
|
|
||||||
Purchased Gas Costs
|
—
|
|
|
2,961
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,961
|
|
||||||
Related Party Activity
|
32,385
|
|
|
—
|
|
|
(87,620
|
)
|
|
1,298
|
|
|
53,937
|
|
|
—
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
35,749
|
|
|
—
|
|
|
—
|
|
|
35,749
|
|
||||||
Selling, General and Administrative Expenses
|
—
|
|
|
33,429
|
|
|
69,887
|
|
|
949
|
|
|
—
|
|
|
104,265
|
|
||||||
Depreciation, Depletion and Amortization
|
9,735
|
|
|
163,079
|
|
|
315,468
|
|
|
1,492
|
|
|
—
|
|
|
489,774
|
|
||||||
Interest Expense
|
153,141
|
|
|
6,375
|
|
|
4,871
|
|
|
34
|
|
|
(224
|
)
|
|
164,197
|
|
||||||
Taxes Other Than Income
|
430
|
|
|
25,534
|
|
|
223,254
|
|
|
2,357
|
|
|
—
|
|
|
251,575
|
|
||||||
Total Costs
|
313,521
|
|
|
629,010
|
|
|
2,533,092
|
|
|
168,180
|
|
|
82,851
|
|
|
3,726,654
|
|
||||||
Earnings (Loss) Before Income Taxes
|
40,865
|
|
|
(6,624
|
)
|
|
402,151
|
|
|
9,362
|
|
|
(434,670
|
)
|
|
11,084
|
|
||||||
Income Tax Expense (Benefit)
|
118,606
|
|
|
(2,557
|
)
|
|
(22,740
|
)
|
|
(3,542
|
)
|
|
—
|
|
|
89,767
|
|
||||||
Net (Loss) Income
|
(77,741
|
)
|
|
(4,067
|
)
|
|
424,891
|
|
|
12,904
|
|
|
(434,670
|
)
|
|
(78,683
|
)
|
||||||
Add: Net Loss Attributable to Noncontrolling Interest
|
—
|
|
|
942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
942
|
|
||||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(77,741
|
)
|
|
$
|
(3,125
|
)
|
|
$
|
424,891
|
|
|
$
|
12,904
|
|
|
$
|
(434,670
|
)
|
|
$
|
(77,741
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Sales—Outside
|
$
|
—
|
|
|
$
|
474,574
|
|
|
$
|
2,919,814
|
|
|
$
|
192,212
|
|
|
$
|
(1,795
|
)
|
|
$
|
3,584,805
|
|
Sales—Gas Royalty Interests
|
—
|
|
|
34,707
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,707
|
|
||||||
Sales—Purchased Gas
|
—
|
|
|
2,443
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,443
|
|
||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
126,195
|
|
|
—
|
|
|
—
|
|
|
126,195
|
|
||||||
Other Income
|
399,817
|
|
|
46,177
|
|
|
230,930
|
|
|
16,089
|
|
|
(399,817
|
)
|
|
293,196
|
|
||||||
Total Revenue and Other Income
|
399,817
|
|
|
557,901
|
|
|
3,276,939
|
|
|
208,301
|
|
|
(401,612
|
)
|
|
4,041,346
|
|
||||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below)
|
90,230
|
|
|
296,959
|
|
|
1,992,371
|
|
|
186,635
|
|
|
22,265
|
|
|
2,588,460
|
|
||||||
Gas Royalty Interests Costs
|
—
|
|
|
27,951
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
27,916
|
|
||||||
Purchased Gas Costs
|
—
|
|
|
2,123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,123
|
|
||||||
Related Party Activity
|
1,575
|
|
|
—
|
|
|
5,078
|
|
|
1,376
|
|
|
(8,029
|
)
|
|
—
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
126,195
|
|
|
—
|
|
|
—
|
|
|
126,195
|
|
||||||
Selling, General and Administrative Expenses
|
—
|
|
|
29,199
|
|
|
79,169
|
|
|
1,044
|
|
|
—
|
|
|
109,412
|
|
||||||
Depreciation, Depletion and Amortization
|
8,901
|
|
|
148,343
|
|
|
304,245
|
|
|
1,559
|
|
|
—
|
|
|
463,048
|
|
||||||
Interest Expense
|
158,505
|
|
|
3,554
|
|
|
7,056
|
|
|
33
|
|
|
(360
|
)
|
|
168,788
|
|
||||||
Taxes Other Than Income
|
159
|
|
|
24,790
|
|
|
229,381
|
|
|
2,213
|
|
|
—
|
|
|
256,543
|
|
||||||
Total Costs
|
259,370
|
|
|
532,919
|
|
|
2,743,495
|
|
|
192,860
|
|
|
13,841
|
|
|
3,742,485
|
|
||||||
Earnings (Loss) Before Income Taxes
|
140,447
|
|
|
24,982
|
|
|
533,444
|
|
|
15,441
|
|
|
(415,453
|
)
|
|
298,861
|
|
||||||
Income Tax (Benefit) Expense
|
(98,120
|
)
|
|
9,706
|
|
|
143,001
|
|
|
5,841
|
|
|
—
|
|
|
60,428
|
|
||||||
Net Income (Loss)
|
238,567
|
|
|
15,276
|
|
|
390,443
|
|
|
9,600
|
|
|
(415,453
|
)
|
|
238,433
|
|
||||||
Add: Net Loss Attributable to Noncontrolling Interest
|
—
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134
|
|
||||||
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
238,567
|
|
|
$
|
15,410
|
|
|
$
|
390,443
|
|
|
$
|
9,600
|
|
|
$
|
(415,453
|
)
|
|
$
|
238,567
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash (Used in) Provided by Operating Activities
|
$
|
(7,813
|
)
|
|
$
|
383,504
|
|
|
$
|
180,580
|
|
|
$
|
(5,766
|
)
|
|
$
|
38,500
|
|
|
$
|
589,005
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
$
|
(15,216
|
)
|
|
$
|
(669,067
|
)
|
|
$
|
(511,626
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,195,909
|
)
|
Change in Restricted Cash
|
—
|
|
|
—
|
|
|
56,410
|
|
|
—
|
|
|
—
|
|
|
56,410
|
|
||||||
Proceeds from Sales of Assets
|
—
|
|
|
335,142
|
|
|
263,015
|
|
|
17
|
|
|
—
|
|
|
598,174
|
|
||||||
Net Investments In Equity Affiliates
|
—
|
|
|
(30,500
|
)
|
|
12,388
|
|
|
—
|
|
|
—
|
|
|
(18,112
|
)
|
||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
(15,216
|
)
|
|
$
|
(364,425
|
)
|
|
$
|
(179,813
|
)
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
(559,437
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from (Payments on) Short-Term Borrowings
|
$
|
—
|
|
|
$
|
85,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(38,500
|
)
|
|
$
|
47,000
|
|
Payments on Miscellaneous Borrowings
|
(26,591
|
)
|
|
—
|
|
|
(5,122
|
)
|
|
(577
|
)
|
|
—
|
|
|
(32,290
|
)
|
||||||
Proceeds from Securitization Facility
|
—
|
|
|
—
|
|
|
—
|
|
|
6,518
|
|
|
—
|
|
|
6,518
|
|
||||||
Dividends Received (Paid)
|
42,789
|
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57,211
|
)
|
||||||
Proceeds from Issuance of Common Stock
|
2,698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,698
|
|
||||||
Other Financing Activities
|
2,925
|
|
|
(4,084
|
)
|
|
4,084
|
|
|
—
|
|
|
—
|
|
|
2,925
|
|
||||||
Net Cash Provided by (Used in) Financing Activities
|
$
|
21,821
|
|
|
$
|
(18,584
|
)
|
|
$
|
(1,038
|
)
|
|
$
|
5,941
|
|
|
$
|
(38,500
|
)
|
|
$
|
(30,360
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash (Used in) Provided by Operating Activities
|
$
|
(245,017
|
)
|
|
$
|
139,026
|
|
|
$
|
635,257
|
|
|
$
|
897
|
|
|
$
|
—
|
|
|
$
|
530,163
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
$
|
(40,863
|
)
|
|
$
|
(408,278
|
)
|
|
$
|
(702,880
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,152,021
|
)
|
Net Investments In Equity Affiliates
|
—
|
|
|
(31,650
|
)
|
|
12,949
|
|
|
—
|
|
|
—
|
|
|
(18,701
|
)
|
||||||
Proceeds from Sales of Assets
|
169,500
|
|
|
359,636
|
|
|
54,756
|
|
|
50
|
|
|
—
|
|
|
583,942
|
|
||||||
Net Cash Provided by (Used in) Investing Activities
|
$
|
128,637
|
|
|
$
|
(80,292
|
)
|
|
$
|
(635,175
|
)
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
(586,780
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends Received (Paid)
|
$
|
114,710
|
|
|
$
|
(200,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(85,290
|
)
|
Other Financing Activities
|
3,304
|
|
|
(4,107
|
)
|
|
(1,729
|
)
|
|
(339
|
)
|
|
—
|
|
|
(2,871
|
)
|
||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
118,014
|
|
|
$
|
(204,107
|
)
|
|
$
|
(1,729
|
)
|
|
$
|
(339
|
)
|
|
$
|
—
|
|
|
$
|
(88,161
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net (Loss) Income
|
$
|
(63,651
|
)
|
|
$
|
(993
|
)
|
|
$
|
103,541
|
|
|
$
|
3,106
|
|
|
$
|
(106,052
|
)
|
|
$
|
(64,049
|
)
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
24,980
|
|
|
—
|
|
|
24,980
|
|
|
—
|
|
|
(24,980
|
)
|
|
24,980
|
|
||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge
|
13,246
|
|
|
13,246
|
|
|
—
|
|
|
—
|
|
|
(13,246
|
)
|
|
13,246
|
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(24,354
|
)
|
|
(24,354
|
)
|
|
—
|
|
|
—
|
|
|
24,354
|
|
|
(24,354
|
)
|
||||||
Other Comprehensive Income (Loss):
|
13,872
|
|
|
(11,108
|
)
|
|
24,980
|
|
|
—
|
|
|
(13,872
|
)
|
|
13,872
|
|
||||||
Comprehensive (Loss) Income
|
(49,779
|
)
|
|
(12,101
|
)
|
|
128,521
|
|
|
3,106
|
|
|
(119,924
|
)
|
|
(50,177
|
)
|
||||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest
|
—
|
|
|
398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398
|
|
||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(49,779
|
)
|
|
$
|
(11,703
|
)
|
|
$
|
128,521
|
|
|
$
|
3,106
|
|
|
$
|
(119,924
|
)
|
|
$
|
(49,779
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net (Loss) Income
|
$
|
(11,368
|
)
|
|
$
|
7,096
|
|
|
$
|
143,542
|
|
|
$
|
2,424
|
|
|
$
|
(153,167
|
)
|
|
$
|
(11,473
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
7,921
|
|
|
—
|
|
|
7,921
|
|
|
—
|
|
|
(7,921
|
)
|
|
7,921
|
|
||||||
Net (Decrease) Increase in the Value of Cash Flow Hedge
|
(6,459
|
)
|
|
(6,459
|
)
|
|
—
|
|
|
—
|
|
|
6,459
|
|
|
(6,459
|
)
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(47,809
|
)
|
|
(47,809
|
)
|
|
—
|
|
|
—
|
|
|
47,809
|
|
|
(47,809
|
)
|
||||||
Other Comprehensive (Loss) Income:
|
(46,347
|
)
|
|
(54,268
|
)
|
|
7,921
|
|
|
—
|
|
|
46,347
|
|
|
(46,347
|
)
|
||||||
Comprehensive (Loss) Income
|
(57,715
|
)
|
|
(47,172
|
)
|
|
151,463
|
|
|
2,424
|
|
|
(106,820
|
)
|
|
(57,820
|
)
|
||||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(57,715
|
)
|
|
$
|
(47,067
|
)
|
|
$
|
151,463
|
|
|
$
|
2,424
|
|
|
$
|
(106,820
|
)
|
|
$
|
(57,715
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net (Loss) Income
|
$
|
(77,741
|
)
|
|
$
|
(4,067
|
)
|
|
$
|
424,891
|
|
|
$
|
12,904
|
|
|
$
|
(434,670
|
)
|
|
$
|
(78,683
|
)
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
113,641
|
|
|
—
|
|
|
113,641
|
|
|
—
|
|
|
(113,641
|
)
|
|
113,641
|
|
||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge
|
40,400
|
|
|
40,400
|
|
|
—
|
|
|
—
|
|
|
(40,400
|
)
|
|
40,400
|
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(56,595
|
)
|
|
(56,595
|
)
|
|
—
|
|
|
—
|
|
|
56,595
|
|
|
(56,595
|
)
|
||||||
Other Comprehensive Income (Loss):
|
97,446
|
|
|
(16,195
|
)
|
|
113,641
|
|
|
—
|
|
|
(97,446
|
)
|
|
97,446
|
|
||||||
Comprehensive Income (Loss)
|
19,705
|
|
|
(20,262
|
)
|
|
538,532
|
|
|
12,904
|
|
|
(532,116
|
)
|
|
18,763
|
|
||||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest
|
—
|
|
|
942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
942
|
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
19,705
|
|
|
$
|
(19,320
|
)
|
|
$
|
538,532
|
|
|
$
|
12,904
|
|
|
$
|
(532,116
|
)
|
|
$
|
19,705
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Income (Loss)
|
$
|
238,567
|
|
|
$
|
15,276
|
|
|
$
|
390,443
|
|
|
$
|
9,600
|
|
|
$
|
(415,453
|
)
|
|
$
|
238,433
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
75,080
|
|
|
—
|
|
|
75,080
|
|
|
—
|
|
|
(75,080
|
)
|
|
75,080
|
|
||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge
|
80,280
|
|
|
80,280
|
|
|
—
|
|
|
—
|
|
|
(80,280
|
)
|
|
80,280
|
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(153,597
|
)
|
|
(153,597
|
)
|
|
—
|
|
|
—
|
|
|
153,597
|
|
|
(153,597
|
)
|
||||||
Other Comprehensive Income (Loss):
|
1,763
|
|
|
(73,317
|
)
|
|
75,080
|
|
|
—
|
|
|
(1,763
|
)
|
|
1,763
|
|
||||||
Comprehensive Income (Loss)
|
240,330
|
|
|
(58,041
|
)
|
|
465,523
|
|
|
9,600
|
|
|
(417,216
|
)
|
|
240,196
|
|
||||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest
|
—
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134
|
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
240,330
|
|
|
$
|
(57,907
|
)
|
|
$
|
465,523
|
|
|
$
|
9,600
|
|
|
$
|
(417,216
|
)
|
|
$
|
240,330
|
|
|
September 30,
|
|
December 31,
|
|
|
||||
|
2013
|
|
2012
|
|
Location on Balance Sheet
|
||||
Reimbursement for CONE Expenses
|
$
|
(1,380
|
)
|
|
$
|
(1,336
|
)
|
|
Accounts Receivable–Other
|
Reimbursement for Services Provided to CONE
|
(181
|
)
|
|
(341
|
)
|
|
Accounts Receivable–Other
|
||
CONE Gathering Capital Reimbursement
|
—
|
|
|
(18
|
)
|
|
Accounts Receivable–Other
|
||
CONE Gathering Fee Payable
|
3,124
|
|
|
4,837
|
|
|
Accounts Payable
|
||
Net Payable due CONE
|
$
|
1,563
|
|
|
$
|
3,142
|
|
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
Q4 2013
|
|
2013
|
|
2014
|
|
2015
|
||||||||
Estimated Coal Sales (millions of tons)
|
|
13.6 - 14.0
|
|
|
57.0 - 57.4
|
|
|
30.1
|
|
|
33.8
|
|
||||
Est. Low-Vol Met Sales
|
|
0.7 - 0.9
|
|
|
4.3 - 4.5
|
|
|
4.2
|
|
|
4.9
|
|
||||
Tonnage: Firm
|
|
0.7
|
|
|
4.2
|
|
|
0.9
|
|
|
0.8
|
|
||||
Avg. Price: Sold (Firm)
|
|
$
|
92.27
|
|
|
$
|
95.34
|
|
|
$
|
100.62
|
|
|
$
|
102.50
|
|
Est. High-Vol Met Sales
|
|
0.5+
|
|
|
2.8+
|
|
|
1.8
|
|
|
1.4
|
|
||||
Tonnage: Firm
|
|
0.5
|
|
|
2.8
|
|
|
0.2
|
|
|
0.2
|
|
||||
Avg. Price: Sold (Firm)
|
|
$
|
61.31
|
|
|
$
|
63.27
|
|
|
$
|
79.80
|
|
|
$
|
75.33
|
|
Est. Thermal Sales
|
|
12.4+
|
|
|
49.9+
|
|
|
24.1
|
|
|
27.5
|
|
||||
Tonnage: Firm
|
|
12.4
|
|
|
49.9
|
|
|
18.9
|
|
|
10.1
|
|
||||
Avg. Price: Sold (Firm)
|
|
$
|
58.19
|
|
|
$
|
58.94
|
|
|
$
|
64.05
|
|
|
$
|
67.00
|
|
•
|
In August 2013, CONSOL Energy completed the sale of its 50% interest in the CONSOL Energy/Devon Energy joint venture in Alberta, Canada. The properties and coal leases included were those related to Grassy Mountain, Bellevue, Adanac, and Lynx Creek (Crowsnest Pass). Cash proceeds for the sale were $24.7 million. The transaction resulted in a $15.3 million gain on the sale of assets.
|
•
|
On June 24, 2013, CONSOL Energy closed the sale of the Potomac coal reserves located in Grant and Tucker Counties in West Virginia. Cash proceeds from the sale were $25.0 million. The transaction resulted in a $24.7 million gain on the sale of assets.
|
•
|
Pension settlement accounting required the acceleration of previously unrecognized actuarial losses due to lump sum payments from the Company's salary retirement pension plan exceeding the annual projected service and interest costs of the plan. The pension settlement resulted in a $38.5 million pre-tax expense adjustment. Many of the lump sum payments in the nine months ended September 30, 2013 were paid to employees who elected to retire under the 2012 Voluntary Severance Incentive Plan. Also, pension settlement required the pension plan to be remeasured using updated assumptions at September 30, 2013. The updated assumptions include resetting the discount rate used in the actuarial calculation. See Note 3 - Components of Pension and Other Post-Employment Benefit (OPEB) Plans Net
|
•
|
A review of certain titles in the Company's Marcellus Shale acreage, continued throughout the nine months ended September 30, 2013. As a result of the Company's review of the title defect notice, asserted by Noble, and working in collaboration with Noble, CONSOL Energy has addressed defects of $21.8 million. See Note 8 - Property, Plant and Equipment, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for additional details.
|
•
|
CNX Gas Company completed negotiations with the Allegheny County Airport Authority, which operates the Pittsburgh International Airport and the Allegheny County Airport, for the lease of the oil and gas rights on approximately 9.3 thousand acres. A majority of these contiguous acres are in the liquids area of the Marcellus Shale play. CNX Gas Company paid $46.3 million as an up-front bonus payment at closing. Approximately 7.6% percent of the bonus payment was placed into escrow while negotiations continue for a portion of the acres associated with the Allegheny County Airport and other acres that have potentially defective title. CNX Gas Company must spud a well by February 21, 2015 and proceed with due diligence to complete the well or the lease terminates and CNX Gas forgoes the bonus. Our joint venture partner, Noble Energy, has acquired 50% of the acreage and accordingly, reimbursed CNX Gas Company for 50% of the associated costs in June 2013.
|
•
|
On March 12, 2013, smoke was detected exiting the Orndoff shaft at CONSOL Energy's Blacksville No. 2 Mine near Wayne in Greene County, Pennsylvania. All day shift underground employees were safely evacuated and no one sustained injuries. The location of the fire was identified and containment and extinguishment procedures were followed. The fire was successfully extinguished and the longwall restarted May 20, 2013. This event resulted in a pre-tax expense of $38.6 million in the nine months ended September 30, 2013.
|
•
|
In the nine months ended September 30, 2013, an agreement in principle was reached for resolution of the class actions brought by shareholders of CNX Gas challenging the tender offer by CONSOL Energy to acquire all the shares of CNX Gas common stock that CONSOL Energy did not already own for $38.25 per share in May 2010 in principle. The total settlement provides for a payment to the plaintiffs of $42.73 million, of which the company expects to pay $19.2 million. On May 8, 2013, the parties executed and filed with the Court a stipulation and agreement of compromise and settlement. A settlement hearing was held by the Court on August 23, 2013, and the settlement was approved. See Note 11 - Commitments and Contingencies, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for additional details.
|
•
|
The Cross States Air Pollution Rule (CSAPR) was finalized by the Environmental Protection Agency (EPA) in July 2011. The rule required reductions in SO2 and NOx emissions in the eastern U.S. by January 1, 2012 (phase 1) and January 1, 2014 (phase 2). However, CSAPR was vacated by a three-judge panel of the D.C. Circuit on August 21, 2012, and the full D.C. Circuit declined to hear the case in January 2013. EPA and environmental groups appealed the decision to the Supreme Court on March 29, 2013. Until legal challenges are resolved and/or EPA develops a replacement rule, the Clean Air Interstate Rule (CAIR) will remain in effect.
|
•
|
On July 9, 2013, Pennsylvania Governor, Tom Corbett signed the Oil and Gas Lease Act (SB 529). The Act reinstated the Guaranteed Minimum Royalty Act of 1979 and it permits pooling of already leased acreage. The Act does not authorize forced pooling.
|
•
|
Challenges in the overall environment in which we operate create increased risks that we must continuously monitor and manage. These risks include increased scrutiny of existing safety regulations and the development of new safety regulations and additional environmental restrictions.
|
•
|
Federal and state environmental regulators are reviewing our operations more closely and are more strictly interpreting and enforcing existing environmental laws and regulations, resulting in increased costs and delays.
|
•
|
Federal and state regulators have proposed regulations which, if adopted, would adversely impact our business. These proposed regulations could require significant changes in the manner in which we operate and/or would increase the cost of our operations. For example, the Department of Interior, Office of Surface Mining Reclamation and Enforcement (OSM) is currently preparing an environmental impact statement relating to OSM's consideration of five alternatives for amending its coal mining stream protection rules. All of the alternatives, except the no action alternative, could make it more costly to mine our coal and/or could eliminate the ability to mine some of our coal. OSM has indicated that it will not issue a draft rule or a draft environmental impact statement until sometime in 2014. Other examples are the Mercury and Air Toxic Standards (MATS) (remanded by the court and re-proposed by the EPA in November 2012) and the Utility Maximum Achievable Control Technology (Utility MACTS) rules issued by the EPA. These new regulations set mercury and air toxic standards for new and existing coal and oil fired electric utility steam generating units and include more stringent New Source Performance Standards (NSPS) for particulate matter (PM), SO2 and NOx. The EPA reconsidered the UMACT rules and recently finalized revised new source performance
|
•
|
In April 2012, the EPA published its proposed New Source Performance Standards (NSPS) for carbon dioxide emissions from coal powered electric generating units. The proposed rules would have applied to new power plants and to existing plants that make major modifications. If the rules had been adopted as proposed, the only new coal fired power plants that could have met the proposed emission limits would have been coal fired plants with carbon dioxide capture and storage (CCS). Commercial scale CCS is not likely to be available in the near future, and if available, it may make coal fired electric generation units uneconomical compared to new gas fired electric generation units. On September 20, 2013, EPA re-proposed NSPS for CO
2
for new fossil fuel fired power plants and rescinded the rules that were proposed on April 12, 2012. These proposed rules will also require CCS for new coal fired power plants.
|
•
|
CONSOL Energy surface coal mining operations in West Virginia are subject to several citizen suits and several citizen groups' Notices of Intent to Sue relating to alleged violations of water discharge permits from our coal mining operations. In each of these matters, CONSOL Energy investigates the complaints, if necessary develops and implements compliance plans, and defends the citizen suits as appropriate.
|
•
|
In late June 2012, CONSOL Energy received informal notification from the Pennsylvania Department of Environmental Protection of the Department's intent pursuant to a Technical Guidance Document entitled “Surface Water Protection-Underground Bituminous Coal Mining” to require a change in the mine plan of a pending application for a permit for expansion of the Company's Bailey longwall mine. If ultimately required, this change in mine plan could have a material effect on CONSOL Energy's forecasted production for 2015. CONSOL Energy does not agree that a modification of its mining plan is necessary to comply with applicable regulatory performance standards and continues to submit information to the permitting authority to support its position. Additionally, CONSOL Energy is currently evaluating potential modifications that would be required if CONSOL Energy is compelled to modify its application.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price per ton sold
|
$
|
61.26
|
|
|
$
|
67.31
|
|
|
$
|
(6.05
|
)
|
|
(9.0
|
)%
|
Average Cost of Goods Sold per ton
|
50.46
|
|
|
55.84
|
|
|
(5.38
|
)
|
|
(9.6
|
)%
|
|||
Margin per ton sold
|
$
|
10.80
|
|
|
$
|
11.47
|
|
|
$
|
(0.67
|
)
|
|
(5.8
|
)%
|
•
|
Average cost of goods sold decreased due to additional tons sold. Fixed costs are allocated over more sales tons, resulting in lower unit costs.
|
•
|
On July 27, 2012, a structural failure occurred at the Bailey Preparation Plant in Southwestern Pennsylvania. The belt system conveys coal from both the Bailey and Enlow Fork Mines to the Bailey Preparation Plant. The mines operated in the 2013 period, which resulted in lower direct operating costs per ton produced.
|
•
|
Direct services to operations are improved due to a reduction in direct administration employees as a result of the 2012 Voluntary Severance Incentive Plan discussed below under general and administrative costs.
|
•
|
Average direct operating costs were impaired due to CONSOL Energy entering into several new longwall leases in 2013 at our Bailey Mine, Robinson Run Mine, and Shoemaker Mine.
|
|
For the Three Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
||||||
Average Sales Price per thousand cubic feet sold
|
$
|
4.20
|
|
|
$
|
4.19
|
|
|
$
|
0.01
|
|
|
0.2%
|
Average Costs per thousand cubic feet sold
|
3.23
|
|
|
3.38
|
|
|
(0.15
|
)
|
|
(4.4)%
|
|||
Margin per thousand cubic feet sold
|
$
|
0.97
|
|
|
$
|
0.81
|
|
|
$
|
0.16
|
|
|
19.8%
|
•
|
Higher volumes in the period-to-period comparison, due to the on-going Marcellus drilling program, resulted in an overall improvement in unit costs. Fixed costs are allocated over increased volumes, resulting in lower unit costs.
|
•
|
Lifting costs were improved on a unit basis due to the increase in volumes, offset by higher accretion expense related to the estimated well plugging liability and increased road repair and maintenance costs.
|
•
|
Depreciation, depletion and amortization was also improved due to the increase in volumes. This improvement was offset by higher units-of-production rates for producing properties.
|
•
|
The improvement in gathering costs on a unit basis, due to the increase in volumes, was offset by higher firm transportation costs and increased processing fees associated with natural gas liquids.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Contributions
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
(50.0
|
)%
|
Employee Wages and Related Expenses
|
13
|
|
|
14
|
|
|
(1
|
)
|
|
(7.1
|
)%
|
|||
Advertising and Promotion
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Consulting and Professional Services
|
7
|
|
|
6
|
|
|
1
|
|
|
16.7
|
%
|
|||
Miscellaneous
|
6
|
|
|
7
|
|
|
(1
|
)
|
|
(14.3
|
)%
|
|||
Total Company General and Administrative Expenses
|
$
|
30
|
|
|
$
|
33
|
|
|
$
|
(3
|
)
|
|
(9.1
|
)%
|
•
|
Contributions decreased $2 million related to various transactions that occurred throughout both periods, none of which are individually significant.
|
•
|
Employee wages and related expenses decreased $1 million primarily attributable to fewer employees as a result of the 2012 Voluntary Severance Incentive Plan and lower salary other post-employment benefit expenses (OPEB) in the period-to-period comparison. The lower OPEB expenses relate to changes in the discount rates and other assumptions.
|
•
|
Advertising and promotion remained consistent in the period-to-period comparison.
|
•
|
Consulting and professional services increased $1 million in the period-to-period comparison due to various legal proceedings and corporate initiatives, none of which are individually significant.
|
•
|
Miscellaneous general and administrative expenses were improved in the period-to-period comparison due to various transactions, none of which were individually material.
|
|
For the Three Months Ended
|
|
Difference to Three Months Ended
|
||||||||||||||||||||||||||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||||||||||||||||||||||||||
|
Thermal
Coal
|
|
High
Vol
Met
Coal
|
|
Low
Vol
Met
Coal
|
|
Other
Coal
|
|
Total
Coal
|
|
Thermal
Coal |
|
High
Vol
Met
Coal
|
|
Low
Vol
Met
Coal
|
|
Other
Coal
|
|
Total
Coal
|
||||||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Produced Coal
|
$
|
752
|
|
|
$
|
30
|
|
|
$
|
98
|
|
|
$
|
—
|
|
|
$
|
880
|
|
|
$
|
85
|
|
|
$
|
(18
|
)
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
55
|
|
Purchased Coal
|
1
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
||||||||||
Total Outside Sales
|
753
|
|
|
30
|
|
|
98
|
|
|
7
|
|
|
888
|
|
|
86
|
|
|
(18
|
)
|
|
(12
|
)
|
|
2
|
|
|
58
|
|
||||||||||
Freight Revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
||||||||||
Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
7
|
|
|
5
|
|
||||||||||
Total Revenue and Other Income
|
753
|
|
|
30
|
|
|
98
|
|
|
44
|
|
|
925
|
|
|
85
|
|
|
(19
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
48
|
|
||||||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning inventory costs
|
43
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
52
|
|
|
(66
|
)
|
|
(2
|
)
|
|
(17
|
)
|
|
—
|
|
|
(85
|
)
|
||||||||||
Total direct operating costs
|
393
|
|
|
15
|
|
|
45
|
|
|
41
|
|
|
494
|
|
|
68
|
|
|
(7
|
)
|
|
—
|
|
|
(29
|
)
|
|
32
|
|
||||||||||
Total royalty/production taxes
|
51
|
|
|
1
|
|
|
6
|
|
|
1
|
|
|
59
|
|
|
6
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
5
|
|
||||||||||
Total direct services to operations
|
65
|
|
|
3
|
|
|
7
|
|
|
46
|
|
|
121
|
|
|
6
|
|
|
(2
|
)
|
|
1
|
|
|
(19
|
)
|
|
(14
|
)
|
||||||||||
Total retirement and disability
|
44
|
|
|
2
|
|
|
6
|
|
|
3
|
|
|
55
|
|
|
4
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(4
|
)
|
||||||||||
Depreciation, depletion and amortization
|
79
|
|
|
3
|
|
|
11
|
|
|
11
|
|
|
104
|
|
|
12
|
|
|
(2
|
)
|
|
2
|
|
|
(4
|
)
|
|
8
|
|
||||||||||
Ending inventory costs
|
(51
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(58
|
)
|
|
16
|
|
|
—
|
|
|
26
|
|
|
1
|
|
|
43
|
|
||||||||||
Total Costs and Expenses
|
624
|
|
|
24
|
|
|
77
|
|
|
102
|
|
|
827
|
|
|
46
|
|
|
(15
|
)
|
|
10
|
|
|
(56
|
)
|
|
(15
|
)
|
||||||||||
Freight Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
||||||||||
Total Costs
|
624
|
|
|
24
|
|
|
77
|
|
|
114
|
|
|
839
|
|
|
46
|
|
|
(15
|
)
|
|
10
|
|
|
(71
|
)
|
|
(30
|
)
|
||||||||||
Earnings (Loss) Before Income Taxes
|
$
|
129
|
|
|
$
|
6
|
|
|
$
|
21
|
|
|
$
|
(70
|
)
|
|
$
|
86
|
|
|
$
|
39
|
|
|
$
|
(4
|
)
|
|
$
|
(22
|
)
|
|
$
|
65
|
|
|
$
|
78
|
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced Thermal Tons Sold (in millions)
|
12.8
|
|
|
10.8
|
|
|
2.0
|
|
|
18.5
|
%
|
|||
Average Sales Price Per Thermal Ton Sold
|
$
|
59.08
|
|
|
$
|
62.11
|
|
|
$
|
(3.03
|
)
|
|
(4.9
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Beginning Inventory Costs Per Thermal Ton
|
$
|
55.36
|
|
|
$
|
56.03
|
|
|
$
|
(0.67
|
)
|
|
(1.2
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Direct Operating Costs Per Thermal Ton Produced
|
$
|
30.38
|
|
|
$
|
32.24
|
|
|
$
|
(1.86
|
)
|
|
(5.8
|
)%
|
Total Royalty/Production Taxes Per Thermal Ton Produced
|
3.91
|
|
|
4.46
|
|
|
(0.55
|
)
|
|
(12.3
|
)%
|
|||
Total Direct Services to Operations Per Thermal Ton Produced
|
5.06
|
|
|
5.87
|
|
|
(0.81
|
)
|
|
(13.8
|
)%
|
|||
Total Retirement and Disability Per Thermal Ton Produced
|
3.43
|
|
|
4.04
|
|
|
(0.61
|
)
|
|
(15.1
|
)%
|
|||
Total Depreciation, Depletion and Amortization Costs Per Thermal Ton Produced
|
6.14
|
|
|
6.70
|
|
|
(0.56
|
)
|
|
(8.4
|
)%
|
|||
Total Production Costs Per Thermal Ton Produced
|
$
|
48.92
|
|
|
$
|
53.31
|
|
|
$
|
(4.39
|
)
|
|
(8.2
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Ending Inventory Costs Per Thermal Ton
|
$
|
52.26
|
|
|
$
|
51.55
|
|
|
$
|
0.71
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Costs Per Thermal Ton Sold
|
$
|
49.07
|
|
|
$
|
53.81
|
|
|
$
|
(4.74
|
)
|
|
(8.8
|
)%
|
Average Margin Per Thermal Ton Sold
|
$
|
10.01
|
|
|
$
|
8.30
|
|
|
$
|
1.71
|
|
|
20.6
|
%
|
•
|
Average cost of goods sold decreased due to additional tons sold. Fixed costs are allocated over more sales tons, resulting in lower unit costs.
|
•
|
As previously discussed, on July 27, 2012 a structural failure occurred at the Bailey Preparation Plant in Southwestern Pennsylvania. The belt system conveys coal from both the Bailey and Enlow Fork Mines to the Bailey Preparation Plant. The mines operated in the 2013 period, which resulted in lower direct operating costs per ton produced.
|
•
|
In response to weak market conditions for domestic coal, the annual miner's vacation period at Blacksville No. 2 and Robinson Run mines was extended for a period of two weeks in July 2012. These mines operated in the 2013 period which resulted in higher costs.
|
•
|
In 2013, CONSOL Energy entered into several new longwall leases which resulted in a higher cost per ton produced in the period-to-period comparison.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced High Vol Met Tons Sold (in millions)
|
0.5
|
|
|
0.7
|
|
|
(0.2
|
)
|
|
(28.6
|
)%
|
|||
Average Sales Price Per High Vol Met Ton Sold
|
$
|
60.42
|
|
|
$
|
67.76
|
|
|
$
|
(7.34
|
)
|
|
(10.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Beginning Inventory Costs Per High Vol Met Ton
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Direct Operating Costs Per High Vol Met Ton Produced
|
$
|
29.85
|
|
|
$
|
30.10
|
|
|
$
|
(0.25
|
)
|
|
(0.8
|
)%
|
Total Royalty/Production Taxes Per High Vol Met Ton Produced
|
3.06
|
|
|
3.09
|
|
|
(0.03
|
)
|
|
(1.0
|
)%
|
|||
Total Direct Services to Operations Per High Vol Met Ton Produced
|
5.21
|
|
|
7.26
|
|
|
(2.05
|
)
|
|
(28.2
|
)%
|
|||
Total Retirement and Disability Per High Vol Met Ton Produced
|
3.09
|
|
|
3.89
|
|
|
(0.80
|
)
|
|
(20.6
|
)%
|
|||
Total Depreciation, Depletion and Amortization Costs Per High Vol Met Ton Produced
|
6.05
|
|
|
7.38
|
|
|
(1.33
|
)
|
|
(18.0
|
)%
|
|||
Total Production Costs Per High Vol Met Ton Produced
|
$
|
47.26
|
|
|
$
|
51.72
|
|
|
$
|
(4.46
|
)
|
|
(8.6
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Ending Inventory Costs Per High Vol Met Ton
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Costs Per High Vol Met Ton Sold
|
$
|
47.25
|
|
|
$
|
55.29
|
|
|
$
|
(8.04
|
)
|
|
(14.5
|
)%
|
Margin Per High Vol Met Ton Sold
|
$
|
13.17
|
|
|
$
|
12.47
|
|
|
$
|
0.70
|
|
|
5.6
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced Low Vol Met Tons Sold (in millions)
|
1.1
|
|
|
0.8
|
|
|
0.3
|
|
|
37.5
|
%
|
|||
Average Sales Price Per Low Vol Met Ton Sold
|
$
|
85.77
|
|
|
$
|
135.66
|
|
|
$
|
(49.89
|
)
|
|
(36.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Beginning Inventory Costs Per Low Vol Met Ton
|
$
|
64.76
|
|
|
$
|
69.84
|
|
|
$
|
(5.08
|
)
|
|
(7.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Direct Operating Costs Per Low Vol Met Ton Produced
|
$
|
41.07
|
|
|
$
|
55.61
|
|
|
$
|
(14.54
|
)
|
|
(26.1
|
)%
|
Total Royalty/Production Taxes Per Low Vol Met Ton Produced
|
5.16
|
|
|
8.75
|
|
|
(3.59
|
)
|
|
(41.0
|
)%
|
|||
Total Direct Services to Operations Per Low Vol Met Ton Produced
|
5.98
|
|
|
6.83
|
|
|
(0.85
|
)
|
|
(12.4
|
)%
|
|||
Total Retirement and Disability Per Low Vol Met Ton Produced
|
5.57
|
|
|
8.63
|
|
|
(3.06
|
)
|
|
(35.5
|
)%
|
|||
Total Depreciation, Depletion and Amortization Costs Per Low Vol Met Ton Produced
|
9.55
|
|
|
11.29
|
|
|
(1.74
|
)
|
|
(15.4
|
)%
|
|||
Total Production Costs Per Low Vol Met Ton Produced
|
$
|
67.33
|
|
|
$
|
91.11
|
|
|
$
|
(23.78
|
)
|
|
(26.1
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Ending Inventory Costs Per Low Vol Met Ton
|
$
|
65.42
|
|
|
$
|
87.32
|
|
|
$
|
(21.90
|
)
|
|
(25.1
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Costs Per Low Vol Met Ton Sold
|
$
|
67.18
|
|
|
$
|
83.09
|
|
|
$
|
(15.91
|
)
|
|
(19.1
|
)%
|
Margin Per Low Vol Met Ton Sold
|
$
|
18.59
|
|
|
$
|
52.57
|
|
|
$
|
(33.98
|
)
|
|
(64.6
|
)%
|
•
|
Gain on sale of assets attributable to the Other Coal segment was $18 million in the three months ended
September 30, 2013
compared to $1 million in the three months ended
September 30, 2012
. The increase of $17 million was primarily related to the 2013 sale of 1.5 MM tons of Pittsburgh 8 Coal that CONSOL Energy controlled in Belmont County, OH for a gain of $2 million and the 2013 sale of 50% interest in a joint venture in Alberta, Canada for a gain of $15 million. See Note 2 - Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements for additional detail of these sales.
|
•
|
Equity in earnings of affiliates decreased $3 million due to lower earnings from our equity affiliates.
|
•
|
For the three months ended
September 30, 2012
there was $5 million of income from certain thermal coal contract buyouts. There were no corresponding transactions in three months ended
September 30, 2013
.
|
•
|
The remaining $2 million decrease is due to various items, none of which are individually significant.
|
|
|
For the Three Months Ended September 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Bailey Belt Incident
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
(42
|
)
|
Freight Expense
|
|
12
|
|
|
27
|
|
|
(15
|
)
|
|||
Closed and Idle Mines
|
|
33
|
|
|
40
|
|
|
(7
|
)
|
|||
General and Administrative Expense
|
|
17
|
|
|
20
|
|
|
(3
|
)
|
|||
Stock-based Compensation
|
|
7
|
|
|
4
|
|
|
3
|
|
|||
Purchased Coal
|
|
12
|
|
|
10
|
|
|
2
|
|
|||
Other
|
|
33
|
|
|
42
|
|
|
(9
|
)
|
|||
Total Other Coal Segment Costs
|
|
$
|
114
|
|
|
$
|
185
|
|
|
$
|
(71
|
)
|
•
|
Bailey Belt Incident costs represent expenses during the belt-reconstruction period related to continued advancement of the mines and on-going projects at the mines
|
•
|
Freight expense is based on weight of coal shipped, negotiated freight rates and method of transportation (i.e. rail, barge, truck, etc.) used by the customers to which CONSOL Energy contractually provides transportation services. Freight revenue is the amount billed to customers for transportation costs incurred. Freight expense is offset by freight revenue. The decrease in freight expense was due to decreased shipments under contracts which CONSOL Energy contractually provides transportation services.
|
•
|
Closed and idle mine costs decreased approximately $
7
million for the three months ended
September 30, 2013
compared to the three months ended
September 30, 2012
. Closed and idle mine costs decreased $8 million due to the decision to shutdown the Fola Mining Complex in August 2012 and $7 million due to the decision to idle operations at Buchanan Mine in September 2012. These decreases were offset, in part, by an increase of $8 million in costs incurred primarily by the Amonate complex.
|
•
|
General and Administrative Expense related to the other coal segment decreased by $
3
million primarily due to various transactions, none of which were individually material. Refer to the discussion of total general and administrative costs contained in the section "Net Income" of this quarterly report for detailed cost explanations.
|
•
|
Stock-based compensation was higher in the period-to-period comparison primarily due to additional non-cash amortization expense for employees who received awards under the new CONSOL Share Unit (CSU) program. The new program replaces several previously provided long-term executive compensation award programs. The compensation expense of the CSU program will not be materially different from the total expense of the previous programs over the three-year performance period.
|
•
|
Purchased coal costs increased $
2
million due to higher amounts of coal that needed to be purchased to fulfill various contracts.
|
•
|
Other expenses related to the Other Coal segment decreased $
9
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended
|
|
Difference to Three Months Ended
|
||||||||||||||||||||||||||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||||||||||||||||||||||||||
|
CBM
|
|
Shallow Oil and Gas
|
|
Marcellus
|
|
Other
Gas
|
|
Total
Gas
|
|
CBM
|
|
Shallow Oil and Gas
|
|
Marcellus
|
|
Other
Gas
|
|
Total
Gas
|
||||||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Produced
|
$
|
83
|
|
|
$
|
33
|
|
|
$
|
72
|
|
|
$
|
4
|
|
|
$
|
192
|
|
|
$
|
(11
|
)
|
|
$
|
1
|
|
|
$
|
36
|
|
|
$
|
2
|
|
|
$
|
28
|
|
Related Party
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total Outside Sales
|
84
|
|
|
33
|
|
|
72
|
|
|
4
|
|
|
193
|
|
|
(11
|
)
|
|
1
|
|
|
36
|
|
|
2
|
|
|
28
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Total Revenue and Other Income
|
84
|
|
|
33
|
|
|
72
|
|
|
34
|
|
|
223
|
|
|
(11
|
)
|
|
1
|
|
|
36
|
|
|
6
|
|
|
32
|
|
||||||||||
Lifting
|
8
|
|
|
9
|
|
|
5
|
|
|
2
|
|
|
24
|
|
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
2
|
|
|
2
|
|
||||||||||
Ad Valorem, Severance, and Other Taxes
|
3
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
1
|
|
||||||||||
Gathering
|
28
|
|
|
7
|
|
|
11
|
|
|
1
|
|
|
47
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
6
|
|
||||||||||
Gas Direct Administrative, Selling & Other
|
2
|
|
|
2
|
|
|
6
|
|
|
2
|
|
|
12
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
1
|
|
||||||||||
Depreciation, Depletion and Amortization
|
22
|
|
|
15
|
|
|
19
|
|
|
2
|
|
|
58
|
|
|
(1
|
)
|
|
1
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||||
General & Administration
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Exploration and Other Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
||||||||||
Interest Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Total Cost
|
63
|
|
|
35
|
|
|
44
|
|
|
83
|
|
|
225
|
|
|
(1
|
)
|
|
—
|
|
|
14
|
|
|
33
|
|
|
46
|
|
||||||||||
Earnings Before Income Tax
|
$
|
21
|
|
|
$
|
(2
|
)
|
|
$
|
28
|
|
|
$
|
(49
|
)
|
|
$
|
(2
|
)
|
|
$
|
(10
|
)
|
|
$
|
1
|
|
|
$
|
22
|
|
|
$
|
(27
|
)
|
|
$
|
(14
|
)
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Produced Gas CBM sales volumes (in billion cubic feet)
|
21.0
|
|
|
21.7
|
|
|
(0.7
|
)
|
|
(3.2
|
)%
|
|||
Average CBM sales price per thousand cubic feet sold
|
$
|
3.99
|
|
|
$
|
4.36
|
|
|
$
|
(0.37
|
)
|
|
(8.5
|
)%
|
Average CBM lifting costs per thousand cubic feet sold
|
0.39
|
|
|
0.41
|
|
|
(0.02
|
)
|
|
(4.9
|
)%
|
|||
Average CBM ad valorem, severance, and other taxes per thousand cubic feet sold
|
0.12
|
|
|
0.11
|
|
|
0.01
|
|
|
9.1
|
%
|
|||
Average CBM gathering costs per thousand cubic feet sold
|
1.31
|
|
|
1.26
|
|
|
0.05
|
|
|
4.0
|
%
|
|||
Average CBM direct administrative, selling & other costs per thousand cubic feet sold
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
—
|
%
|
|||
Average CBM depreciation, depletion and amortization costs per thousand cubic feet sold
|
1.06
|
|
|
1.04
|
|
|
0.02
|
|
|
1.9
|
%
|
|||
Total Average CBM costs per thousand cubic feet sold
|
2.99
|
|
|
2.93
|
|
|
0.06
|
|
|
2.0
|
%
|
|||
Average Margin for CBM
|
$
|
1.00
|
|
|
$
|
1.43
|
|
|
$
|
(0.43
|
)
|
|
(30.1
|
)%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Produced Gas Shallow Oil and Gas sales volumes (in billion cubic feet)
|
6.8
|
|
|
7.0
|
|
|
(0.2
|
)
|
|
(2.9
|
)%
|
|||
Average Shallow Oil and Gas sales price per thousand cubic feet sold
|
$
|
4.85
|
|
|
$
|
4.59
|
|
|
$
|
0.26
|
|
|
5.7
|
%
|
Average Shallow Oil and Gas lifting costs per thousand cubic feet sold
|
1.36
|
|
|
1.44
|
|
|
(0.08
|
)
|
|
(5.6
|
)%
|
|||
Average Shallow Oil and Gas ad valorem, severance, and other taxes per thousand cubic feet sold
|
0.27
|
|
|
0.37
|
|
|
(0.10
|
)
|
|
(27.0
|
)%
|
|||
Average Shallow Oil and Gas gathering costs per thousand cubic feet sold
|
1.01
|
|
|
0.87
|
|
|
0.14
|
|
|
16.1
|
%
|
|||
Average Shallow Oil and Gas direct administrative, selling & other costs per thousand cubic feet sold
|
0.37
|
|
|
0.35
|
|
|
0.02
|
|
|
5.7
|
%
|
|||
Average Shallow Oil and Gas depreciation, depletion and amortization costs per thousand cubic feet sold
|
2.15
|
|
|
2.05
|
|
|
0.10
|
|
|
4.9
|
%
|
|||
Total Average Shallow Oil and Gas costs per thousand cubic feet sold
|
5.16
|
|
|
5.08
|
|
|
0.08
|
|
|
1.6
|
%
|
|||
Average Margin for Shallow Oil and Gas
|
$
|
(0.31
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
0.18
|
|
|
36.7
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Produced Gas Marcellus sales volumes (in billion cubic feet)
|
17.4
|
|
|
10.1
|
|
|
7.3
|
|
|
72.3
|
%
|
|||
Average Marcellus sales price per thousand cubic feet sold
|
$
|
4.16
|
|
|
$
|
3.58
|
|
|
$
|
0.58
|
|
|
16.2
|
%
|
Average Marcellus lifting costs per thousand cubic feet sold
|
0.29
|
|
|
0.32
|
|
|
(0.03
|
)
|
|
(9.4
|
)%
|
|||
Average Marcellus ad valorem, severance, and other taxes per thousand cubic feet sold
|
0.17
|
|
|
0.12
|
|
|
0.05
|
|
|
41.7
|
%
|
|||
Average Marcellus gathering costs per thousand cubic feet sold
|
0.66
|
|
|
0.68
|
|
|
(0.02
|
)
|
|
(2.9
|
)%
|
|||
Average Marcellus direct administrative, selling & other costs per thousand cubic feet sold
|
0.34
|
|
|
0.55
|
|
|
(0.21
|
)
|
|
(38.2
|
)%
|
|||
Average Marcellus depreciation, depletion and amortization costs per thousand cubic feet sold
|
1.09
|
|
|
1.28
|
|
|
(0.19
|
)
|
|
(14.8
|
)%
|
|||
Total Average Marcellus costs per thousand cubic feet sold
|
2.55
|
|
|
2.95
|
|
|
(0.40
|
)
|
|
(13.6
|
)%
|
|||
Average Margin for Marcellus
|
$
|
1.61
|
|
|
$
|
0.63
|
|
|
$
|
0.98
|
|
|
155.6
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
3.5
|
|
|
4.8
|
|
|
(1.3
|
)
|
|
(27.1
|
)%
|
|||
Average Sales Price Per thousand cubic feet
|
$
|
4.41
|
|
|
$
|
2.67
|
|
|
$
|
1.74
|
|
|
65.2
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Sales Volumes (in billion cubic feet)
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
50.0
|
%
|
|||
Average Sales Price Per thousand cubic feet
|
$
|
5.14
|
|
|
$
|
3.29
|
|
|
$
|
1.85
|
|
|
56.2
|
%
|
•
|
There was an increase of $3 million related to increased earnings from our equity affiliates.
|
•
|
Gains on dispositions of non-core acreage and equipment increased $2 million due to various transactions that occurred throughout both periods, none of which are individually material.
|
•
|
Interest income decreased $4 million due to the collection of the final installment on the notes receivable from the Noble joint venture transaction.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
3.5
|
|
|
4.8
|
|
|
(1.3
|
)
|
|
(27.1
|
)%
|
|||
Average Cost Per thousand cubic feet sold
|
$
|
3.66
|
|
|
$
|
2.18
|
|
|
$
|
1.48
|
|
|
67.9
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Title Defects
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
11
|
|
|
550.0
|
%
|
Lease Expiration Costs
|
3
|
|
|
1
|
|
|
2
|
|
|
200.0
|
%
|
|||
Exploration
|
7
|
|
|
4
|
|
|
3
|
|
|
75.0
|
%
|
|||
Total Exploration and Other Costs
|
$
|
23
|
|
|
$
|
7
|
|
|
$
|
16
|
|
|
228.6
|
%
|
•
|
CONSOL Energy has substantially completed its review of the title defect notice, asserted by Noble, and working in collaboration with Noble,
conceded title defects on acreage which had a book value to CONSOL Energy of
$13
million for the
three months
ended
September 30, 2013
compared to
$2
million for the
three months
ended
September 30, 2012
.
|
•
|
Lease expiration costs relate to locations where CONSOL Energy allowed the primary term lease to expire because of unfavorable drilling economics. The
$2
million increase is due to a greater number of leases which CONSOL Energy choose to let expire in the current period when compared with the prior period.
|
•
|
Exploration expenses increased
$3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
||||||||||||||
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Unutilized firm transportation
|
$
|
12
|
|
|
$
|
4
|
|
|
$
|
8
|
|
|
200.0
|
%
|
Short term incentive compensation
|
7
|
|
|
5
|
|
|
2
|
|
|
40.0
|
%
|
|||
Stock-based compensation
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
%
|
|||
Bank fees
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Legal fees
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|||
Total Other Corporate Expenses
|
$
|
25
|
|
|
$
|
16
|
|
|
$
|
9
|
|
|
56.3
|
%
|
•
|
Unutilized firm transportation costs represent pipeline transportation capacity the gas segment has obtained to enable gas production to flow uninterrupted as sales volumes increase, as well as additional processing capacity for natural gas liquids. The
$8
million increase is due to increased firm transportation capacity which has not been utilized by active operations.
|
•
|
The short-term incentive compensation program is designed to increase compensation to eligible employees when CNX Gas reaches predetermined targets for safety, production and unit costs. Short-term incentive compensation expense was higher for the 2013 period compared to the 2012 period due to higher projected payouts.
|
•
|
Stock-based compensation remained consistent in the period-to-period comparison.
|
•
|
Bank fees remained consistent in the period-to-period comparison.
|
•
|
Legal fees decreased
$1
million due to various transactions, none of which were individually material.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Sales—Outside
|
$
|
79
|
|
|
$
|
88
|
|
|
$
|
(9
|
)
|
|
(10.2
|
)%
|
Other Income
|
5
|
|
|
3
|
|
|
2
|
|
|
66.7
|
%
|
|||
Total Revenue
|
84
|
|
|
91
|
|
|
(7
|
)
|
|
(7.7
|
)%
|
|||
Cost of Goods Sold and Other Charges
|
94
|
|
|
82
|
|
|
12
|
|
|
14.6
|
%
|
|||
Depreciation, Depletion & Amortization
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|||
Taxes Other Than Income Tax
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
(33.3
|
)%
|
|||
Interest Expense
|
54
|
|
|
53
|
|
|
1
|
|
|
1.9
|
%
|
|||
Total Costs
|
156
|
|
|
144
|
|
|
12
|
|
|
8.3
|
%
|
|||
Loss Before Income Tax
|
(72
|
)
|
|
(53
|
)
|
|
(19
|
)
|
|
35.8
|
%
|
|||
Income Tax
|
75
|
|
|
(20
|
)
|
|
95
|
|
|
475.0
|
%
|
|||
Net Loss
|
$
|
(147
|
)
|
|
$
|
(33
|
)
|
|
$
|
(114
|
)
|
|
(345.5
|
)%
|
|
|
For the Three Months Ended September 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Corporate Initiative Fees and Other Legal Charges
|
|
$
|
10
|
|
|
$
|
3
|
|
|
$
|
7
|
|
Pension Settlement
|
|
6
|
|
|
—
|
|
|
6
|
|
|||
Bank Fees
|
|
4
|
|
|
3
|
|
|
1
|
|
|||
Interest Expense
|
|
52
|
|
|
53
|
|
|
(1
|
)
|
|||
Other
|
|
7
|
|
|
7
|
|
|
—
|
|
|||
|
|
$
|
79
|
|
|
$
|
66
|
|
|
$
|
13
|
|
•
|
Corporate initiative fees and other legal charges reflect various fees for services related to corporate initiatives to evaluate structure changes and various asset sales. These fees also include legal charges related to land title issues raised by our joint venture partners and the CNX Gas shareholder settlement case. See Note 8 - Property, Plant and
|
•
|
Pension settlement expenses were required when the lump sum distributions made for the 2013 plan year exceeded the total of the service and interest costs for the 2013 plan year.
|
•
|
Bank fees increased
$1
million primarily due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Interest expense decreased $
1
million primarily due to an increase in capitalized interest due to higher capital expenditures for major construction projects in the current period.
|
•
|
Other corporate items remained consistent in the period-to-period comparsion.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Earnings Before Income Tax
|
$
|
11
|
|
|
$
|
(31
|
)
|
|
$
|
42
|
|
|
(133.9
|
)%
|
Income Tax Expense
|
$
|
75
|
|
|
$
|
(20
|
)
|
|
$
|
95
|
|
|
(477.4
|
)%
|
Effective Income Tax Rate
|
705.7
|
%
|
|
63.4
|
%
|
|
642.3
|
%
|
|
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price per ton sold
|
$
|
62.54
|
|
|
$
|
67.35
|
|
|
$
|
(4.81
|
)
|
|
(7.1
|
)%
|
Average Cost of Goods Sold per ton
|
50.99
|
|
|
54.09
|
|
|
(3.10
|
)
|
|
(5.7
|
)%
|
|||
Margin per ton sold
|
$
|
11.55
|
|
|
$
|
13.26
|
|
|
$
|
(1.71
|
)
|
|
(12.9
|
)%
|
•
|
Average cost of goods sold decreased due to an increase in tons sold. Fixed costs are allocated over more sales tons, resulting in lower unit costs.
|
•
|
On July 27, 2012, a structural failure occurred at the Bailey Preparation Plant in Southwestern Pennsylvania. The belt system conveys coal from both the Bailey and Enlow Fork Mines to the Bailey Preparation Plant. The mines operated in the 2013 period, which resulted in lower direct operating costs per ton produced.
|
•
|
Direct operating costs improved primarily due to a decrease in all direct operating costs at the Blacksville No. 2 Mine which was the result of the mine being idled March 12, 2013 until May 20, 2013 due to a fire. Also, in March and April 2012, the Blacksville No. 2 Mine ran the continuous miners and worked on various projects, while the longwall was idled resulting in higher 2012 unit costs. This did not occur in the 2013 period.
|
•
|
The Fola Mining Complex was idled in August 2012 which resulted in lower direct operating costs per ton produced in the period-to-period comparison. The mine, which was idled for market reasons, was a higher cost mining operation which when removed reduced the overall average direct operating costs per ton produced.
|
•
|
Direct services to operations are improved primarily due to a reduction in subsidence expenses related to the timing and nature of properties and streams undermined as well as a reduction in direct administration employees as a result of the 2012 Voluntary Severance Incentive Plan discussed below under general and administrative costs.
|
•
|
Depreciation, depletion and amortization was improved primarily due to lower production at Blacksville No. 2 Mine related to the mine being shut down in 2013 due to the fire, and due to the shutdown of operations at the Fola Mining Complex in August 2012. The improvements were offset, in part, by higher costs in the 2013 period due to the reduction in production at both the Bailey and Enlow Fork Mines in the 2012 period as a result of the structural failure and due to the idling of the Buchanan Mine in September 2012 in response to the weak world economy.
|
•
|
Average direct operating costs were impaired due to CONSOL Energy entering into several new longwall leases in 2013 at our Bailey Mine, Robinson Run Mine, and Shoemaker Mine.
|
•
|
Costs were impaired in the current period due to the idling of the Buchanan Mine in September 2012. Also, in March and April 2012, the Buchanan Mine ran the continuous miners and worked on various projects, but the longwall was idled resulting in higher 2012 unit costs. This did not occur in the 2013 period.
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
||||||
Average Sales Price per thousand cubic feet sold
|
$
|
4.31
|
|
|
$
|
4.14
|
|
|
$
|
0.17
|
|
|
4.1%
|
Average Costs per thousand cubic feet sold
|
3.49
|
|
|
3.36
|
|
|
0.13
|
|
|
3.9%
|
|||
Margin per thousand cubic feet sold
|
$
|
0.82
|
|
|
$
|
0.78
|
|
|
$
|
0.04
|
|
|
5.1%
|
•
|
Gathering costs increased in the period-to-period comparison due to higher firm transportation costs and increased processing fees associated with natural gas liquids.
|
•
|
Lifting costs increased due to increased accretion expense on the well plugging liability as well as increased salt water disposal costs. These impairments were partially offset by improvements related to decreased expenditures for contract services, environmental compliance and safety costs and well services costs in the current period.
|
•
|
Depreciation, depletion and amortization rates increased due to higher units-of-production for producing properties.
|
•
|
These increases were offset, in part, by higher volumes in the period-to-period comparison due to the on-going Marcellus drilling program. Fixed costs are allocated over increased volumes, resulting in lower unit costs.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Employee Wages and Related Expenses
|
$
|
40
|
|
|
$
|
46
|
|
|
$
|
(6
|
)
|
|
(13.0
|
)%
|
Contributions
|
8
|
|
|
9
|
|
|
(1
|
)
|
|
(11.1
|
)%
|
|||
Advertising and Promotion
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|||
Consulting and Professional Services
|
23
|
|
|
17
|
|
|
6
|
|
|
35.3
|
%
|
|||
Miscellaneous
|
20
|
|
|
21
|
|
|
(1
|
)
|
|
(4.8
|
)%
|
|||
Total Company General and Administrative Expenses
|
$
|
97
|
|
|
$
|
99
|
|
|
$
|
(2
|
)
|
|
(2.0
|
)%
|
•
|
Employee wages and related expenses decreased $6 million primarily attributable to fewer employees as a result of the 2012 Voluntary Severance Incentive Plan and lower salary other post-employment benefit (OPEB) expenses in the period-to-period comparison. The lower OPEB expenses relate to changes in the discount rates and other assumptions.
|
•
|
Contributions decreased $1 million related to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Advertising and promotion remained consistent in the period-to-period comparison.
|
•
|
Consulting and professional services increased $6 million in the period-to-period comparison due to various legal proceedings and corporate initiatives, none of which were individually significant.
|
•
|
Miscellaneous general and administrative expenses were improved in the period-to-period comparison due to various transactions, none of which were individually material.
|
|
For the Nine Months Ended
|
|
Difference to Nine Months Ended
|
||||||||||||||||||||||||||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||||||||||||||||||||||||||
|
Thermal
Coal
|
|
High
Vol
Met
Coal
|
|
Low
Vol
Met
Coal
|
|
Other
Coal
|
|
Total
Coal
|
|
Thermal
Coal |
|
High
Vol
Met
Coal
|
|
Low
Vol
Met
Coal
|
|
Other
Coal
|
|
Total
Coal
|
||||||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Produced Coal
|
$
|
2,212
|
|
|
$
|
145
|
|
|
$
|
356
|
|
|
$
|
—
|
|
|
$
|
2,713
|
|
|
$
|
(16
|
)
|
|
$
|
(35
|
)
|
|
$
|
(47
|
)
|
|
$
|
(6
|
)
|
|
$
|
(104
|
)
|
Purchased Coal
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||||||
Total Outside Sales
|
2,212
|
|
|
145
|
|
|
356
|
|
|
18
|
|
|
2,731
|
|
|
(16
|
)
|
|
(35
|
)
|
|
(47
|
)
|
|
(1
|
)
|
|
(99
|
)
|
||||||||||
Freight Revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
(90
|
)
|
||||||||||
Other Income
|
2
|
|
|
2
|
|
|
—
|
|
|
85
|
|
|
89
|
|
|
1
|
|
|
(5
|
)
|
|
—
|
|
|
(144
|
)
|
|
(148
|
)
|
||||||||||
Total Revenue and Other Income
|
2,214
|
|
|
147
|
|
|
356
|
|
|
139
|
|
|
2,856
|
|
|
(15
|
)
|
|
(40
|
)
|
|
(47
|
)
|
|
(235
|
)
|
|
(337
|
)
|
||||||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning inventory costs
|
58
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
79
|
|
|
(31
|
)
|
|
(2
|
)
|
|
5
|
|
|
—
|
|
|
(28
|
)
|
||||||||||
Total direct operating costs
|
1,154
|
|
|
72
|
|
|
147
|
|
|
140
|
|
|
1,513
|
|
|
19
|
|
|
(12
|
)
|
|
(13
|
)
|
|
6
|
|
|
—
|
|
||||||||||
Total royalty/production taxes
|
153
|
|
|
4
|
|
|
20
|
|
|
1
|
|
|
178
|
|
|
1
|
|
|
(5
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
(10
|
)
|
||||||||||
Total direct services to operations
|
183
|
|
|
13
|
|
|
18
|
|
|
170
|
|
|
384
|
|
|
(27
|
)
|
|
(6
|
)
|
|
1
|
|
|
(40
|
)
|
|
(72
|
)
|
||||||||||
Total retirement and disability
|
133
|
|
|
7
|
|
|
20
|
|
|
11
|
|
|
171
|
|
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(9
|
)
|
||||||||||
Depreciation, depletion and amortization
|
224
|
|
|
14
|
|
|
30
|
|
|
40
|
|
|
308
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
17
|
|
|
11
|
|
||||||||||
Ending inventory costs
|
(51
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(58
|
)
|
|
16
|
|
|
—
|
|
|
26
|
|
|
1
|
|
|
43
|
|
||||||||||
Total Costs and Expenses
|
1,854
|
|
|
110
|
|
|
249
|
|
|
362
|
|
|
2,575
|
|
|
(23
|
)
|
|
(32
|
)
|
|
11
|
|
|
(21
|
)
|
|
(65
|
)
|
||||||||||
Freight Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
(90
|
)
|
||||||||||
Total Costs
|
1,854
|
|
|
110
|
|
|
249
|
|
|
398
|
|
|
2,611
|
|
|
(23
|
)
|
|
(32
|
)
|
|
11
|
|
|
(111
|
)
|
|
(155
|
)
|
||||||||||
Earnings (Loss) Before Income Taxes
|
$
|
360
|
|
|
$
|
37
|
|
|
$
|
107
|
|
|
$
|
(259
|
)
|
|
$
|
245
|
|
|
$
|
8
|
|
|
$
|
(8
|
)
|
|
$
|
(58
|
)
|
|
$
|
(124
|
)
|
|
$
|
(182
|
)
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced Thermal Tons Sold (in millions)
|
37.4
|
|
|
36.0
|
|
|
1.4
|
|
|
3.9
|
%
|
|||
Average Sales Price Per Thermal Ton Sold
|
$
|
59.16
|
|
|
$
|
61.79
|
|
|
$
|
(2.63
|
)
|
|
(4.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Beginning Inventory Costs Per Thermal Ton
|
$
|
50.92
|
|
|
$
|
58.32
|
|
|
$
|
(7.40
|
)
|
|
(12.7
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Direct Operating Costs Per Thermal Ton Produced
|
$
|
30.98
|
|
|
$
|
31.68
|
|
|
$
|
(0.70
|
)
|
|
(2.2
|
)%
|
Total Royalty/Production Taxes Per Thermal Ton Produced
|
4.11
|
|
|
4.25
|
|
|
(0.14
|
)
|
|
(3.3
|
)%
|
|||
Total Direct Services to Operations Per Thermal Ton Produced
|
4.90
|
|
|
5.89
|
|
|
(0.99
|
)
|
|
(16.8
|
)%
|
|||
Total Retirement and Disability Per Thermal Ton Produced
|
3.56
|
|
|
3.71
|
|
|
(0.15
|
)
|
|
(4.0
|
)%
|
|||
Total Depreciation, Depletion and Amortization Costs Per Thermal Ton Produced
|
6.02
|
|
|
6.28
|
|
|
(0.26
|
)
|
|
(4.1
|
)%
|
|||
Total Production Costs Per Thermal Ton Produced
|
$
|
49.57
|
|
|
$
|
51.81
|
|
|
$
|
(2.24
|
)
|
|
(4.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Ending Inventory Costs Per Thermal Ton
|
$
|
52.26
|
|
|
$
|
51.55
|
|
|
$
|
0.71
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Costs Per Thermal Ton Sold
|
$
|
49.57
|
|
|
$
|
52.06
|
|
|
$
|
(2.49
|
)
|
|
(4.8
|
)%
|
Average Margin Per Thermal Ton Sold
|
$
|
9.59
|
|
|
$
|
9.73
|
|
|
$
|
(0.14
|
)
|
|
(1.4
|
)%
|
•
|
Average cost of goods sold decreased due to an increase in tons sold. Fixed costs are allocated over more sales tons, resulting in lower unit costs.
|
•
|
On July 27, 2012, a structural failure occurred at the Bailey Preparation Plant in Southwestern Pennsylvania. The belt system conveys coal from both the Bailey and Enlow Fork Mines to the Bailey Preparation Plant. This resulted in lower direct operating costs in the 2013 period or an improvement in the period-to-period comparisons.
|
•
|
The Blacksville No. 2 Mine was idled in 2013 until May 20th due to the fire that was previously discussed. This resulted in a reduction in all direct operating costs in the current period, as well as a majority of the unit costs.
|
•
|
The Fola Mining Complex was idled in August 2012 which resulted in lower direct operating costs per ton produced in the period-to-period comparison. The mine, which was idled for market reasons, was a higher cost mining operation which when removed reduced the overall average direct operating costs per ton produced.
|
•
|
In 2013, CONSOL Energy entered into several new longwall leases which resulted in higher cost per ton produced in the period-to-period comparison.
|
•
|
In response to weak market conditions for domestic coal, the annual miner's vacation period at Blacksville No. 2 and Robinson Run mines was extended for a period of two weeks in July 2012. This did not occur in the 2013 period.
|
•
|
Average direct service costs to operations were improved due to a reduction in subsidence expense. The reduction was the result of the timing and nature of properties undermined in the period-to-period comparison.
|
•
|
Average direct service costs to operations were also improved due to a reduction in direct administrative employees as a result of the 2012 Voluntary Severance Incentive Plan, that was discussed previously.
|
•
|
Unit costs decreased due to the increase in production volumes since fixed costs are spread over more tons.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced High Vol Met Tons Sold (in millions)
|
2.3
|
|
|
2.9
|
|
|
(0.6
|
)
|
|
(20.7
|
)%
|
|||
Average Sales Price Per High Vol Met Ton Sold
|
$
|
63.68
|
|
|
$
|
62.64
|
|
|
$
|
1.04
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|||||||
Beginning Inventory Costs Per High Vol Met Ton
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Direct Operating Costs Per High Vol Met Ton Produced
|
$
|
31.44
|
|
|
$
|
29.30
|
|
|
$
|
2.14
|
|
|
7.3
|
%
|
Total Royalty/Production Taxes Per High Vol Met Ton Produced
|
1.79
|
|
|
3.15
|
|
|
(1.36
|
)
|
|
(43.2
|
)%
|
|||
Total Direct Services to Operations Per High Vol Met Ton Produced
|
5.72
|
|
|
6.42
|
|
|
(0.70
|
)
|
|
(10.9
|
)%
|
|||
Total Retirement and Disability Per High Vol Met Ton Produced
|
3.27
|
|
|
3.15
|
|
|
0.12
|
|
|
3.8
|
%
|
|||
Total Depreciation, Depletion and Amortization Costs Per High Vol Met Ton Produced
|
5.95
|
|
|
6.54
|
|
|
(0.59
|
)
|
|
(9.0
|
)%
|
|||
Total Production Costs Per High Vol Met Ton Produced
|
$
|
48.17
|
|
|
$
|
48.56
|
|
|
$
|
(0.39
|
)
|
|
(0.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Ending Inventory Costs Per High Vol Met Ton
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Costs Per High Vol Met Ton Sold
|
$
|
48.17
|
|
|
$
|
49.44
|
|
|
$
|
(1.27
|
)
|
|
(2.6
|
)%
|
Margin Per High Vol Met Ton Sold
|
$
|
15.51
|
|
|
$
|
13.20
|
|
|
$
|
2.31
|
|
|
17.5
|
%
|
•
|
Average direct service costs to operations were improved due to a reduction in subsidence expense. The reduction was the result of the timing and nature of properties undermined in the period-to-period comparison. The decrease in unit costs was offset by the reduction in production tons.
|
•
|
Average direct service costs to operations were also improved due to a reduction in direct administrative employees as a result of the 2012 Voluntary Severance Incentive Plan, which was discussed previously. The decrease in unit costs was also offset by the reduction in production tons.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced Low Vol Met Tons Sold (in millions)
|
3.7
|
|
|
2.8
|
|
|
0.9
|
|
|
32.1
|
%
|
|||
Average Sales Price Per Low Vol Met Ton Sold
|
$
|
95.89
|
|
|
$
|
143.30
|
|
|
$
|
(47.41
|
)
|
|
(33.1
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Beginning Inventory Costs Per Low Vol Met Ton
|
$
|
86.38
|
|
|
$
|
67.60
|
|
|
$
|
18.78
|
|
|
27.8
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Direct Operating Costs Per Low Vol Met Ton Produced
|
$
|
41.00
|
|
|
$
|
54.00
|
|
|
$
|
(13.00
|
)
|
|
(24.1
|
)%
|
Total Royalty/Production Taxes Per Low Vol Met Ton Produced
|
5.60
|
|
|
8.66
|
|
|
(3.06
|
)
|
|
(35.3
|
)%
|
|||
Total Direct Services to Operations Per Low Vol Met Ton Produced
|
5.20
|
|
|
5.76
|
|
|
(0.56
|
)
|
|
(9.7
|
)%
|
|||
Total Retirement and Disability Per Low Vol Met Ton Produced
|
5.42
|
|
|
7.90
|
|
|
(2.48
|
)
|
|
(31.4
|
)%
|
|||
Total Depreciation, Depletion and Amortization Costs Per Low Vol Met Ton Produced
|
8.55
|
|
|
10.10
|
|
|
(1.55
|
)
|
|
(15.3
|
)%
|
|||
Total Production Costs Per Low Vol Met Ton Produced
|
$
|
65.77
|
|
|
$
|
86.42
|
|
|
$
|
(20.65
|
)
|
|
(23.9
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Ending Inventory Costs Per Low Vol Met Ton
|
$
|
65.42
|
|
|
$
|
87.32
|
|
|
$
|
(21.90
|
)
|
|
(25.1
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Costs Per Low Vol Met Ton Sold
|
$
|
67.12
|
|
|
$
|
84.75
|
|
|
$
|
(17.63
|
)
|
|
(20.8
|
)%
|
Margin Per Low Vol Met Ton Sold
|
$
|
28.77
|
|
|
$
|
58.55
|
|
|
$
|
(29.78
|
)
|
|
(50.9
|
)%
|
•
|
Gain on sale of assets attributable to the Other Coal segment was $46 million in the
nine months
ended
September 30, 2013
compared to $181 million in the
nine months
ended
September 30, 2012
. The decrease of $135 million was primarily related to 2012 sales of non-producing assets in the Northern Powder River Basin that resulted in income of $151 million, as well as coal and surface lands in Illinois and West Virginia that resulted in income of $22 million. This is offset by the 2013 sale of Potomac coal reserves that resulted in income of $25 million and the sale of 50% interest in a joint venture in Alberta, Canada that resulted in income of $15 million. See Note 2—Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements for additional detail of these sales. The remaining $2 million decrease was related to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Equity in earnings of affiliates decreased $1 million due to lower earnings from our equity affiliates.
|
•
|
In the nine months ended September 30, 2012, there was an additional $12 million in income that was related to certain thermal coal contract buyouts. There were no such items in the nine months ended September 30, 2013.
|
•
|
In the nine months ended
September 30, 2013
, $5 million of business interruption insurance proceeds were received related to the 2012 Bailey Belt Conveyor accident. There is no assurance that additional proceeds from the incident will be received.
|
•
|
The remaining $1 million decrease in other income is due to various items, none of which were individually material.
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Freight Expense
|
|
$
|
36
|
|
|
$
|
126
|
|
|
$
|
(90
|
)
|
Bailey Belt Incident
|
|
—
|
|
|
42
|
|
|
(42
|
)
|
|||
Closed and Idle Mines
|
|
101
|
|
|
111
|
|
|
(10
|
)
|
|||
General and Administrative Expense
|
|
55
|
|
|
60
|
|
|
(5
|
)
|
|||
Purchased Coal
|
|
32
|
|
|
28
|
|
|
4
|
|
|||
Stock-based Compensation
|
|
32
|
|
|
24
|
|
|
8
|
|
|||
Blacksville No. 2 Mine Fire
|
|
39
|
|
|
—
|
|
|
39
|
|
|||
Other
|
|
103
|
|
|
118
|
|
|
(15
|
)
|
|||
Total Other Coal Segment Costs
|
|
$
|
398
|
|
|
$
|
509
|
|
|
$
|
(111
|
)
|
•
|
Freight expense is based on weight of coal shipped, negotiated freight rates and method of transportation (i.e. rail, barge, truck, etc.) used by the customers to which CONSOL Energy contractually provides transportation services. Freight revenue is the amount billed to customers for transportation costs incurred. Freight expense is offset by freight revenue. The decrease in freight expense was due to decreased shipments under contracts which CONSOL Energy contractually provides transportation services.
|
•
|
Bailey Belt Incident costs represent expenses during the belt-reconstruction period related to continued advancement of the mines and on-going projects at the mines.
|
•
|
Closed and idle mine costs decreased approximately
$10
million for the
nine months
ended
September 30, 2013
compared to the
nine months
ended
September 30, 2012
. There was a $20 million decrease due to the shutdown of the Fola Mining Complex in August 2012. This was offset by an increase in the reclamation liability at the Fola Mining Complex in the June 2012 period due to new regulatory requirements and water and selenium treatment estimates. The decrease was also offset, in part, by an increase of $7 million in costs incurred primarily by the Amonate Complex. The remaining increase of $3 million was due to other changes in the operational status of various other mines, between idled and operating throughout both periods, none of which were individually material.
|
•
|
General and Administrative Expense related to the other coal segment decreased by $
5
million primarily due various transactions, none of which were individually material. Refer to the discussion of total general and administrative costs contained in the section "Net Income" of this quarterly report for detailed costs explanations.
|
•
|
Purchased coal costs increased due to higher amounts of coal that was purchased to fulfill various contracts.
|
•
|
Stock-based compensation was higher in the period-to-period comparison primarily due to additional non-cash amortization expense and accelerated non-cash amortization for retiree-eligible employees who received awards under the new CONSOL Share Unit (CSU) program. The new program replaces several previously provided long-term
|
•
|
The Blacksville No. 2 Mine fire expense was due to a fire that occurred on March 12, 2013. The mine resumed production on May 20, 2013. Insurance recovery is uncertain at this time and the impact of any potential additional recovery has not been reflected in the nine months ended
September 30, 2013
.
|
•
|
Other expenses related to the coal segment decreased $
15
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended
|
|
Difference to Nine Months Ended
|
||||||||||||||||||||||||||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||||||||||||||||||||||||||
|
CBM
|
|
Shallow Oil and Gas
|
|
Marcellus
|
|
Other
Gas
|
|
Total
Gas
|
|
CBM
|
|
Shallow Oil and Gas
|
|
Marcellus
|
|
Other
Gas
|
|
Total
Gas
|
||||||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Produced
|
$
|
255
|
|
|
$
|
99
|
|
|
$
|
167
|
|
|
$
|
11
|
|
|
$
|
532
|
|
|
$
|
(26
|
)
|
|
$
|
(2
|
)
|
|
$
|
83
|
|
|
$
|
4
|
|
|
$
|
59
|
|
Related Party
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total Outside Sales
|
257
|
|
|
99
|
|
|
167
|
|
|
11
|
|
|
534
|
|
|
(26
|
)
|
|
(2
|
)
|
|
83
|
|
|
4
|
|
|
59
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||||||||
Purchased Gas
|
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||||||
Total Revenue and Other Income
|
257
|
|
|
99
|
|
|
167
|
|
|
99
|
|
|
622
|
|
|
(26
|
)
|
|
(2
|
)
|
|
83
|
|
|
9
|
|
|
64
|
|
||||||||||
Lifting
|
27
|
|
|
26
|
|
|
14
|
|
|
4
|
|
|
71
|
|
|
(1
|
)
|
|
(5
|
)
|
|
5
|
|
|
3
|
|
|
2
|
|
||||||||||
Ad Valorem, Severance, and Other Taxes
|
7
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(2
|
)
|
|
1
|
|
||||||||||
Gathering
|
85
|
|
|
26
|
|
|
30
|
|
|
3
|
|
|
144
|
|
|
7
|
|
|
8
|
|
|
13
|
|
|
3
|
|
|
31
|
|
||||||||||
Gas Direct Administrative, Selling & Other
|
6
|
|
|
7
|
|
|
19
|
|
|
3
|
|
|
35
|
|
|
(6
|
)
|
|
(4
|
)
|
|
9
|
|
|
—
|
|
|
(1
|
)
|
||||||||||
Depreciation, Depletion and Amortization
|
68
|
|
|
44
|
|
|
45
|
|
|
6
|
|
|
163
|
|
|
2
|
|
|
—
|
|
|
14
|
|
|
(1
|
)
|
|
15
|
|
||||||||||
General & Administration
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Exploration and Other Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||||||
Interest Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Total Cost
|
193
|
|
|
110
|
|
|
114
|
|
|
212
|
|
|
629
|
|
|
2
|
|
|
(1
|
)
|
|
44
|
|
|
51
|
|
|
96
|
|
||||||||||
Earnings Before Income Tax
|
$
|
64
|
|
|
$
|
(11
|
)
|
|
$
|
53
|
|
|
$
|
(113
|
)
|
|
$
|
(7
|
)
|
|
$
|
(28
|
)
|
|
$
|
(1
|
)
|
|
$
|
39
|
|
|
$
|
(42
|
)
|
|
$
|
(32
|
)
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Produced Gas CBM sales volumes (in billion cubic feet)
|
62.6
|
|
|
66.8
|
|
|
(4.2
|
)
|
|
(6.3
|
)%
|
|||
Average CBM sales price per thousand cubic feet sold
|
$
|
4.11
|
|
|
$
|
4.24
|
|
|
$
|
(0.13
|
)
|
|
(3.1
|
)%
|
Average CBM lifting costs per thousand cubic feet sold
|
0.44
|
|
|
0.42
|
|
|
0.02
|
|
|
4.8
|
%
|
|||
Average CBM ad valorem, severance, and other taxes per thousand cubic feet sold
|
0.10
|
|
|
0.11
|
|
|
(0.01
|
)
|
|
(9.1
|
)%
|
|||
Average CBM gathering costs per thousand cubic feet sold
|
1.36
|
|
|
1.17
|
|
|
0.19
|
|
|
16.2
|
%
|
|||
Average CBM direct administrative, selling & other costs per thousand cubic feet sold
|
0.10
|
|
|
0.18
|
|
|
(0.08
|
)
|
|
(44.4
|
)%
|
|||
Average CBM depreciation, depletion and amortization costs per thousand cubic feet sold
|
1.08
|
|
|
0.99
|
|
|
0.09
|
|
|
9.1
|
%
|
|||
Total Average CBM costs per thousand cubic feet sold
|
3.08
|
|
|
2.87
|
|
|
0.21
|
|
|
7.3
|
%
|
|||
Average Margin for CBM
|
$
|
1.03
|
|
|
$
|
1.37
|
|
|
$
|
(0.34
|
)
|
|
(24.8
|
)%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Produced Gas Shallow Oil and Gas sales volumes (in billion cubic feet)
|
20.6
|
|
|
21.8
|
|
|
(1.2
|
)
|
|
(5.5
|
)%
|
|||
Average Shallow Oil and Gas sales price per thousand cubic feet sold
|
$
|
4.81
|
|
|
$
|
4.62
|
|
|
$
|
0.19
|
|
|
4.1
|
%
|
Average Shallow Oil and Gas lifting costs per thousand cubic feet sold
|
1.27
|
|
|
1.40
|
|
|
(0.13
|
)
|
|
(9.3
|
)%
|
|||
Average Shallow Oil and Gas ad valorem, severance, and other taxes per thousand cubic feet sold
|
0.36
|
|
|
0.34
|
|
|
0.02
|
|
|
5.9
|
%
|
|||
Average Shallow Oil and Gas gathering costs per thousand cubic feet sold
|
1.26
|
|
|
0.81
|
|
|
0.45
|
|
|
55.6
|
%
|
|||
Average Shallow Oil and Gas direct administrative, selling & other costs per thousand cubic feet sold
|
0.34
|
|
|
0.49
|
|
|
(0.15
|
)
|
|
(30.6
|
)%
|
|||
Average Shallow Oil and Gas depreciation, depletion and amortization costs per thousand cubic feet sold
|
2.16
|
|
|
2.02
|
|
|
0.14
|
|
|
6.9
|
%
|
|||
Total Average Shallow Oil and Gas costs per thousand cubic feet sold
|
5.39
|
|
|
5.06
|
|
|
0.33
|
|
|
6.5
|
%
|
|||
Average Margin for Shallow Oil and Gas
|
$
|
(0.58
|
)
|
|
$
|
(0.44
|
)
|
|
$
|
(0.14
|
)
|
|
31.8
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Produced Gas Marcellus sales volumes (in billion cubic feet)
|
38.5
|
|
|
24.0
|
|
|
14.5
|
|
|
60.4
|
%
|
|||
Average Marcellus sales price per thousand cubic feet sold
|
$
|
4.35
|
|
|
$
|
3.48
|
|
|
$
|
0.87
|
|
|
25.0
|
%
|
Average Marcellus lifting costs per thousand cubic feet sold
|
0.38
|
|
|
0.38
|
|
|
—
|
|
|
—
|
%
|
|||
Average Marcellus ad valorem, severance, and other taxes per thousand cubic feet sold
|
0.15
|
|
|
0.13
|
|
|
0.02
|
|
|
15.4
|
%
|
|||
Average Marcellus gathering costs per thousand cubic feet sold
|
0.79
|
|
|
0.64
|
|
|
0.15
|
|
|
23.4
|
%
|
|||
Average Marcellus direct administrative, selling & other costs per thousand cubic feet sold
|
0.48
|
|
|
0.43
|
|
|
0.05
|
|
|
11.6
|
%
|
|||
Average Marcellus depreciation, depletion and amortization costs per thousand cubic feet sold
|
1.16
|
|
|
1.30
|
|
|
(0.14
|
)
|
|
(10.8
|
)%
|
|||
Total Average Marcellus costs per thousand cubic feet sold
|
2.96
|
|
|
2.88
|
|
|
0.08
|
|
|
2.8
|
%
|
|||
Average Margin for Marcellus
|
$
|
1.39
|
|
|
$
|
0.60
|
|
|
$
|
0.79
|
|
|
131.7
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
10.9
|
|
|
13.2
|
|
|
(2.3
|
)
|
|
(17.4
|
)%
|
|||
Average Sales Price Per thousand cubic feet
|
$
|
4.27
|
|
|
$
|
2.63
|
|
|
$
|
1.64
|
|
|
62.4
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Sales Volumes (in billion cubic feet)
|
1.1
|
|
|
0.8
|
|
|
0.3
|
|
|
37.5
|
%
|
|||
Average Sales Price Per thousand cubic feet
|
$
|
4.12
|
|
|
$
|
2.90
|
|
|
$
|
1.22
|
|
|
42.1
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
10.9
|
|
|
13.2
|
|
|
(2.3
|
)
|
|
(17.4
|
)%
|
|||
Average Cost Per thousand cubic feet sold
|
$
|
3.50
|
|
|
$
|
2.12
|
|
|
$
|
1.38
|
|
|
65.1
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Title Defects
|
$
|
22
|
|
|
$
|
2
|
|
|
$
|
20
|
|
|
1,000.0
|
%
|
Lease Expiration Costs
|
6
|
|
|
13
|
|
|
(7
|
)
|
|
(53.8
|
)%
|
|||
Exploration
|
16
|
|
|
14
|
|
|
2
|
|
|
14.3
|
%
|
|||
Total Exploration and Other Costs
|
$
|
44
|
|
|
$
|
29
|
|
|
$
|
15
|
|
|
51.7
|
%
|
•
|
CONSOL Energy has substantially completed its review of the title defect notice, asserted by Noble, and working in collaboration with Noble,
conceded title defects on acreage which had a book value to CONSOL Energy of
$22
|
•
|
Lease expiration costs relate to locations where CONSOL Energy allowed the primary term lease to expire because of unfavorable drilling economics. The
$7
million decrease is due to CONSOL Energy allowing fewer leases to expire in the current period when compared with the prior period.
|
•
|
Exploration expense increased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Unutilized firm transportation
|
$
|
25
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
177.8
|
%
|
Stock-based compensation
|
19
|
|
|
15
|
|
|
4
|
|
|
26.7
|
%
|
|||
Short-term incentive compensation
|
16
|
|
|
19
|
|
|
(3
|
)
|
|
(15.8
|
)%
|
|||
Bank fees
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
%
|
|||
Legal fees
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
(33.3
|
)%
|
|||
PA Impact fees
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
(100.0
|
)%
|
|||
Other
|
5
|
|
|
1
|
|
|
4
|
|
|
400.0
|
%
|
|||
Total Other Corporate Expenses
|
$
|
72
|
|
|
$
|
56
|
|
|
$
|
16
|
|
|
28.6
|
%
|
•
|
Unutilized firm transportation costs represent pipeline transportation capacity the gas segment has obtained to enable gas production to flow uninterrupted as sales volumes increase, as well as additional processing capacity for natural gas liquids. . The
$16
million increase is due to increased firm transportation capacity which has not been utilized by active operations.
|
•
|
Stock-based compensation was higher in the period-to-period comparison primarily due to additional non-cash amortization expense and accelerated non-cash amortization for retiree-eligible employees who received awards under the new CONSOL Share Unit (CSU) program, when compared to the prior year's quarter. The new program replaces several previously provided long-term executive compensation award programs. The compensation expense of the CSU program will not be materially different from the total expense of the previous programs over the three-year performance period.
|
•
|
The short-term incentive compensation program is designed to increase compensation to eligible employees when CNX Gas reaches predetermined targets for safety, production and unit costs. Short-term incentive compensation expense was lower for the 2013 period compared to the 2012 period due to the lower projected payouts.
|
•
|
Bank Fees remained consistent in the period-to-period comparison.
|
•
|
Legal fees expense decreased
$1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
PA impact fees are related to legislation in the state of Pennsylvania (Act 13 of 2012, House Bill 1950) which was signed into law during the first quarter of 2012. This legislation permits Pennsylvania counties to impose annual fees on unconventional gas wells located within their borders. As part of the legislation, all unconventional wells which were drilled prior to January 1, 2012 were assessed an initial fee related to periods prior to 2012. The
$4
million represents this one-time initial assessment on wells drilled prior to January 1, 2012. Ongoing PA impact fees, which relate to current year wells drilled, are included as part of ad valorem, severance and other taxes in the Marcellus gas segment.
|
•
|
Other corporate related expense increased
$4
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Sales—Outside
|
$
|
248
|
|
|
$
|
281
|
|
|
$
|
(33
|
)
|
|
(11.7
|
)%
|
Other Income
|
13
|
|
|
9
|
|
|
4
|
|
|
44.4
|
%
|
|||
Total Revenue
|
261
|
|
|
290
|
|
|
(29
|
)
|
|
(10.0
|
)%
|
|||
Cost of Goods Sold and Other Charges
|
303
|
|
|
250
|
|
|
53
|
|
|
21.2
|
%
|
|||
Depreciation, Depletion & Amortization
|
19
|
|
|
18
|
|
|
1
|
|
|
5.6
|
%
|
|||
Taxes Other Than Income Tax
|
8
|
|
|
9
|
|
|
(1
|
)
|
|
(11.1
|
)%
|
|||
Interest Expense
|
158
|
|
|
166
|
|
|
(8
|
)
|
|
(4.8
|
)%
|
|||
Total Costs
|
488
|
|
|
443
|
|
|
45
|
|
|
10.2
|
%
|
|||
Loss Before Income Tax
|
(227
|
)
|
|
(153
|
)
|
|
(74
|
)
|
|
48.4
|
%
|
|||
Income Tax
|
90
|
|
|
60
|
|
|
30
|
|
|
50.0
|
%
|
|||
Net Loss
|
$
|
(317
|
)
|
|
$
|
(213
|
)
|
|
$
|
(104
|
)
|
|
48.8
|
%
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Pension Settlement
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
38
|
|
CNX Gas Shareholder Settlement
|
|
19
|
|
|
—
|
|
|
19
|
|
|||
Corporate Initiative fees and Other Legal Charges
|
|
15
|
|
|
4
|
|
|
11
|
|
|||
Bank fees
|
|
11
|
|
|
10
|
|
|
1
|
|
|||
Interest Expense
|
|
158
|
|
|
166
|
|
|
(8
|
)
|
|||
Other
|
|
15
|
|
|
12
|
|
|
3
|
|
|||
|
|
$
|
256
|
|
|
$
|
192
|
|
|
$
|
64
|
|
•
|
Pension settlement expenses were required when the lump sum distributions made for the 2013 plan year exceeded the total of the service and interest costs for the 2013 plan year.
|
•
|
The CNX Gas shareholder settlement is the result of an agreement in principle for resolution of the class actions brought by shareholders of CNX Gas challenging the tender offer by CONSOL Energy to acquire all the shares of CNX Gas common stock that CONSOL Energy did not already own for $38.25 per share in May 2010. The total settlement provides for a payment to the plaintiffs of $42.73 million, of which the Company expects to pay $18.8 million. This settlement is subject to court approval and to the execution of final agreements with the parties.
|
•
|
Corporate initiative fees and other legal charges reflect various fees for services related to corporate initiatives to evaluate structure changes and various asset sales. These fees also include legal charges related to land title issues raised by our joint venture partners and the CNX Gas shareholder settlement case. See Note 8 - Property, Plant and Equipment and Note 11 - Commitments and Contingencies of the Notes to the Condensed Consolidated Financial Statements of this Form 10-Q for additional information.
|
•
|
Bank Fees increased $1 million primarily due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Interest expense decreased $
8
million primarily due to an increase in capitalized interest due to higher capital expenditures for major construction projects in the current period.
|
•
|
Other corporate items increased $
3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Earnings Before Income Tax
|
$
|
11
|
|
|
$
|
299
|
|
|
$
|
(288
|
)
|
|
(96.4
|
)%
|
Income Tax Expense
|
$
|
90
|
|
|
$
|
60
|
|
|
$
|
30
|
|
|
49.6
|
%
|
Effective Income Tax Rate
|
809.9
|
%
|
|
20.2
|
%
|
|
789.7
|
%
|
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
|
2013
|
|
2012
|
|
Change
|
||||||
Cash flows from operating activities
|
$
|
589
|
|
|
$
|
530
|
|
|
$
|
59
|
|
Cash used in investing activities
|
$
|
(560
|
)
|
|
$
|
(587
|
)
|
|
$
|
27
|
|
Cash used in financing activities
|
$
|
(30
|
)
|
|
$
|
(88
|
)
|
|
$
|
58
|
|
•
|
Operating cash flow decreased $317 million in 2013 due to lower net income in the period-to-period comparison.
|
•
|
Operating cash flows increased $137 million in the period-to-period comparison due to changes in the gains on the sale of assets. See Note 2 - Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements for additional details.
|
•
|
Other changes in operating assets, operating liabilities, other assets and other liabilities which occurred throughout both periods also contributed to the increase in operating cash flows.
|
•
|
Capital expenditures increased $44 million in the period-to-period comparison due to:
|
◦
|
Coal segment capital expenditures decreased $187 million. The decrease was comprised of $69 million related to the completion of the Northern West Virginia RO system as well as a $27 million decrease in Bailey Mine Expansion projects. Longwall shield projects decreased $23 million as well as an additional $62 million decrease in various miscellaneous transactions that occurred throughout both periods, none of which were individually material. Mineral lease expenditures associated with our advance mining royalties and leased coal assets also decreased $6 million in 2013.
|
◦
|
Gas segment capital expenditures increased $261 million. The increase was comprised of increased drilling costs in the Marcellus and Utica plays, CONSOL Energy's agreement to lease oil and gas rights from the Allegheny County Airport Authority, land acquisitions in Monroe and Noble Counties in Ohio, and various other individually insignificant projects;
|
◦
|
Other capital expenditures decreased $30 million due to various miscellaneous transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Proceeds from the sale of assets increased $14 million in the period-to-period comparison due to:
|
◦
|
$25 million received in August 2013 related to the sale of the 50% interest in the CONSOL/Devon Energy joint venture in Alberta, Canada;
|
◦
|
$25 million received in June 2013 related to the sale of Potomac Coal reserves;
|
◦
|
$68 million received in May 2013 related to the Robinson Run longwall shield sale-leaseback;
|
◦
|
$64 million received in March 2013 related to the Shoemaker Mine longwall shield sale-leaseback;
|
◦
|
$71 million received in January 2013 related to the Bailey Mine longwall shield sale-leaseback;
|
◦
|
$170 million received in June 2012 related to the sale of Youngs Creek;
|
◦
|
$26 million received in April 2012 related to sale of Elk Creek;
|
◦
|
$13 million received in February 2012 related to the sale of the Burning Star No. 4 property; and
|
◦
|
$30 million decrease due to various other transactions that occurred throughout both periods, none of which were individually material.
|
◦
|
See Note 2 - Acquisitions and Dispositions, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for more information.
|
•
|
Distributions from/investments in equity affiliates increased $1 million due to various miscellaneous transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Restricted cash increased $56 million due to the release of $69 million of restricted cash of which $48 million is associated with the Ram River & Scurry Canadian asset proceeds received during December 2012 and $21 million is associated with the Ryerson Dam Settlement. This was offset by the additional $12 million of restricted cash associated with the sale of the 50% interest in the CONSOL/Devon Energy joint venture in Alberta, Canada in August 2013.
|
•
|
In 2013, CONSOL Energy received $47 million of short term borrowings under the revolving credit facilities.
|
•
|
In 2013, CONSOL Energy repaid $32 million of borrowings related to miscellaneous borrowings. In 2012, CONSOL Energy repaid $7 million of borrowings.
|
•
|
The accelerated declaration and payment of the regular quarterly dividend in the fourth quarter of 2012 resulted in no dividends paid in the first quarter of 2013. Dividends paid in the second and third quarter 2013 were $29 million and $28 million, respectively. This is compared to $85 million in dividends paid in the nine months ended September 30, 2012.
|
•
|
In 2013, CONSOL Energy received $7 million of borrowing under its Securitization Facility.
|
•
|
The remaining change is due to various other transactions that occurred throughout both periods, none of which were individually material.
|
|
Payments due by Year
|
||||||||||||||||||
|
Less Than
1 Year
|
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
|
Total
|
|||||||||
Short-term Notes Payable
|
$
|
47,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,000
|
|
Borrowings Under Securitization Facility
|
44,364
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,364
|
|
|||||
Purchase Order Firm Commitments
|
308,396
|
|
|
98,652
|
|
|
60,686
|
|
|
30,240
|
|
|
497,974
|
|
|||||
Gas Firm Transportation
|
85,313
|
|
|
154,373
|
|
|
128,452
|
|
|
389,000
|
|
|
757,138
|
|
|||||
Long-Term Debt
|
4,606
|
|
|
8,537
|
|
|
1,504,927
|
|
|
1,610,291
|
|
|
3,128,361
|
|
|||||
Interest on Long-Term Debt
|
245,406
|
|
|
491,245
|
|
|
370,956
|
|
|
296,427
|
|
|
1,404,034
|
|
|||||
Capital (Finance) Lease Obligations
|
8,576
|
|
|
15,280
|
|
|
12,464
|
|
|
20,424
|
|
|
56,744
|
|
|||||
Interest on Capital (Finance) Lease Obligations
|
3,647
|
|
|
5,666
|
|
|
3,942
|
|
|
2,440
|
|
|
15,695
|
|
|||||
Operating Lease Obligations
|
134,204
|
|
|
244,544
|
|
|
171,852
|
|
|
155,729
|
|
|
706,329
|
|
|||||
Long-Term Liabilities—Employee Related (a)
|
222,405
|
|
|
442,026
|
|
|
433,053
|
|
|
2,307,138
|
|
|
3,404,622
|
|
|||||
Other Long-Term Liabilities (b)
|
369,276
|
|
|
176,349
|
|
|
75,131
|
|
|
515,256
|
|
|
1,136,012
|
|
|||||
Total Contractual Obligations (c)
|
$
|
1,473,193
|
|
|
$
|
1,636,672
|
|
|
$
|
2,761,463
|
|
|
$
|
5,326,945
|
|
|
$
|
11,198,273
|
|
(a)
|
Long-Term Liabilities - Employee Related include other post-employment benefits, work-related injuries and illnesses. Estimated salaried retirement contributions required to meet minimum funding standards under ERISA are
|
(b)
|
Other long-term liabilities include mine reclamation and closure and other long-term liability costs.
|
(c)
|
The significant obligation table does not include obligations to taxing authorities due to the uncertainty surrounding the ultimate settlement of amounts and timing of these obligations.
|
•
|
An aggregate principal amount of $
1.50
billion
of
8.00%
senior unsecured notes due in April 2017. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes are guaranteed by most of CONSOL Energy’s subsidiaries.
|
•
|
An aggregate principal amount of $
1.25
billion
of
8.25%
senior unsecured notes due in April 2020. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes are guaranteed by most of CONSOL Energy’s subsidiaries.
|
•
|
An aggregate principal amount of $
250
million
of
6.375%
notes due in March 2021. Interest on the notes is payable March 1 and September 1 of each year. Payment of the principal and interest on the notes are guaranteed by most of CONSOL Energy's subsidiaries.
|
•
|
An aggregate principal amount of $
103
million
of industrial revenue bonds which were issued to finance the Baltimore port facility and bear interest at
5.75%
per annum and mature in September 2025. Interest on the industrial revenue bonds is payable March 1 and September 1 of each year.
|
•
|
Advance royalty commitments of $
20
million
with an average interest rate of
7.43%
per annum.
|
•
|
An aggregate principal amount of $
5
million
on other various rate notes maturing through June 2031.
|
•
|
An aggregate principal amount of $
57
million
of capital leases with a weighted average interest rate of
6.24%
per annum.
|
Declaration Date
|
|
Amount Per Share
|
|
Record Date
|
|
Payment Date
|
||
July 26, 2013
|
|
$
|
0.125
|
|
|
August 9, 2013
|
|
August 23, 2013
|
April 26, 2013
|
|
$
|
0.125
|
|
|
May 10, 2013
|
|
May 24, 2013
|
November 1, 2013
|
|
$
|
0.125
|
|
|
November 15, 2013
|
|
December 4, 2013
|
•
|
deterioration in global economic conditions in any of the industries in which our customers operate, or sustained uncertainty in financial markets cause conditions we cannot predict;
|
•
|
an extended decline in demand for or prices we receive for our coal and natural gas affecting our operating results and cash flows;
|
•
|
our customers extending existing contracts or entering into new long-term contracts for coal;
|
•
|
our reliance on major customers;
|
•
|
our inability to collect payments from customers if their creditworthiness declines;
|
•
|
the disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our coal and natural gas to market;
|
•
|
a loss of our competitive position because of the competitive nature of the coal and natural gas industries, or a loss of our competitive position because of overcapacity in these industries impairing our profitability;
|
•
|
our inability to maintain satisfactory labor relations;
|
•
|
coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions;
|
•
|
the impact of potential, as well as any adopted regulations relating to greenhouse gas emissions on the demand for coal and natural gas;
|
•
|
foreign currency fluctuations could adversely affect the competitiveness of our coal abroad;
|
•
|
the risks inherent in coal and natural gas operations being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant construction or repair of equipment, fires, explosions, accidents and weather conditions which could impact financial results;
|
•
|
decreases in the availability of, or increases in, the price of commodities or capital equipment used in our mining operations;
|
•
|
decreases in the availability of, an increase in the prices charged by third party contractors or, failure of third party contractors to provide quality services to us in a timely manner could impact our profitability;
|
•
|
obtaining and renewing governmental permits and approvals for our coal and gas operations;
|
•
|
the effects of government regulation on the discharge into the water or air, and the disposal and clean-up of, hazardous substances and wastes generated during our coal and natural gas operations;
|
•
|
our ability to find adequate water sources for our use in gas drilling, or our ability to dispose of water used or removed from strata in connection with our gas operations at a reasonable cost and within applicable environmental rules;
|
•
|
the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down a mine or natural gas well;
|
•
|
the potential for liabilities arising from environmental contamination or alleged environmental contamination in connection with our past or current coal and gas operations;
|
•
|
the effects of mine closing, reclamation, gas well closing and certain other liabilities;
|
•
|
uncertainties in estimating our economically recoverable coal and gas reserves;
|
•
|
defects may exist in our chain of title and we may incur additional costs associated with perfecting title for coal or gas rights on some of our properties or failing to acquire these additional rights may result in a reduction of our estimated reserves;
|
•
|
the impacts of various asbestos litigation claims;
|
•
|
the outcomes of various legal proceedings, which are more fully described in our reports filed under the Securities Exchange Act of 1934;
|
•
|
increased exposure to employee-related long-term liabilities;
|
•
|
exposure to multi-employer pension plan liabilities;
|
•
|
minimum funding requirements by the Pension Protection Act of 2006 (the Pension Act) coupled with the significant investment and plan asset losses suffered during the recent economic decline has exposed us to making additional required cash contributions to fund the pension benefit plans which we sponsor and the multi-employer pension benefit plans in which we participate;
|
•
|
lump sum payments made to retiring salaried employees pursuant to our defined benefit pension plan exceeding total service and interest cost in a plan year;
|
•
|
acquisitions that we recently have completed or may make in the future including the accuracy of our assessment of the acquired businesses and their risks, achieving any anticipated synergies, integrating the acquisitions and unanticipated
|
•
|
the terms of our existing joint ventures restrict our flexibility, actions taken by the other party in our gas joint ventures may impact our financial position and various circumstances could cause us not to realize the benefits we anticipate receiving from these joint ventures;
|
•
|
the anti-takeover effects of our rights plan could prevent a change of control;
|
•
|
risks associated with our debt;
|
•
|
replacing our natural gas reserves, which if not replaced, will cause our gas reserves and gas production to decline;
|
•
|
our hedging activities may prevent us from benefiting from price increases and may expose us to other risks;
|
•
|
changes in federal or state income tax laws, particularly in the area of percentage depletion and intangible drilling costs, could cause our financial position and profitability to deteriorate;
|
•
|
the ability to obtain regulatory approvals for the transaction on the proposed terms and schedule; disruption to our business, including customer, employee and supplier relationships resulting from this transaction; risks that the conditions to closing may not be satisfied; and the impact of the transaction on our future operating results, our capital investment program, and our dividend; and
|
•
|
other factors discussed in our 2012 Form 10-K under “Risk Factors,” which is on file at the Securities and Exchange Commission.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
For the Three Months Ended
|
|
|
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
Total Year
|
||||||||||
2013 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Mcf
|
N/A
|
|
N/A
|
|
N/A
|
|
23,985,249
|
|
|
23,985,249
|
|
||||||||
Weighted Average Hedge Price per thousand cubic feet
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
4.64
|
|
|
$
|
4.64
|
|
||||||
2014 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Mcf
|
18,381,383
|
|
|
18,585,621
|
|
|
18,789,858
|
|
|
18,789,858
|
|
|
74,546,720
|
|
|||||
Weighted Average Hedge Price per thousand cubic feet
|
$
|
4.81
|
|
|
$
|
4.81
|
|
|
$
|
4.81
|
|
|
$
|
4.81
|
|
|
$
|
4.81
|
|
2015 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Mcf
|
15,846,729
|
|
|
16,022,804
|
|
|
16,198,879
|
|
|
16,198,879
|
|
|
64,267,291
|
|
|||||
Weighted Average Hedge Price per thousand cubic feet
|
$
|
4.18
|
|
|
$
|
4.18
|
|
|
$
|
4.18
|
|
|
$
|
4.18
|
|
|
$
|
4.18
|
|
2016 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Mcf
|
13,352,336
|
|
|
13,352,336
|
|
|
13,499,065
|
|
|
13,499,065
|
|
|
53,702,802
|
|
|||||
Weighted Average Hedge Price per thousand cubic feet
|
$
|
4.29
|
|
|
$
|
4.29
|
|
|
$
|
4.29
|
|
|
$
|
4.29
|
|
|
$
|
4.29
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 6.
|
EXHIBITS
|
4.1
|
|
|
Supplemental Indenture No. 4, dated as of September 10, 2013, to Indenture dated as of April 1, 2010, by and among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. and Wells Fargo Bank, National Association, as successor trustee to The Bank of Nova Scotia Trust Company of New York, with respect to the 8.00% Senior Notes due 2017.
|
|
|
|
|
4.2
|
|
|
Supplemental Indenture No. 4, dated as of September 10, 2013, to Indenture dated as of April 1, 2010, by and among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. and Wells Fargo Bank, National Association, as successor trustee to The Bank of Nova Scotia Trust Company of New York, with respect to the 8.25% Senior Notes due 2020.
|
|
|
|
|
4.3
|
|
|
Supplemental Indenture No. 2, dated as of September 10, 2013, to Indenture dated as of March 9, 2011, by and among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. and Wells Fargo Bank, National Association, as successor trustee to The Bank of Nova Scotia Trust Company of New York, with respect to the 6.375 % Senior Notes due 2021.
|
|
|
|
|
4.4
|
|
|
Agreement of Resignation, Appointment and Acceptance, dated July 22, 2013, by and among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. signatory thereto, Wells Fargo Bank, National Association, as Successor Trustee to The Bank of Nova Scotia Trust Company of New York, and The Bank of Nova Scotia Trust Company of New York, as Resigning Trustee (related to the Indenture dated as of April 1, 2010 with respect to the 8.00% Senior Notes due 2017, the Indenture dated as of April 1, 2010 with respect to the 8.25% Senior Notes due 2020, and the Indenture dated as of March 9, 2011 with respect to the 6.375% Senior Notes due 2021).
|
|
|
|
|
10.1
|
|
|
Ninth Amendment to Amended and Restated Receivables Purchase Agreement, dated September 23, 2013, by and among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, the Sub-Servicers listed on the signature pages thereto, the Conduit Purchasers listed on the signature pages thereto, the Purchaser Agents listed on the signature pages thereto, the LC Participants listed on the signature pages thereto, Market Street Funding LLC, as Assignor, and PNC Bank, National Association, as Administrator, as LC Bank and as Assignee.
|
|
|
||
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
32.1
|
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
32.2
|
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
95
|
|
|
Mine Safety and Health Administration Safety Data.
|
|
|
||
101
|
|
|
Interactive Data File (Form 10-Q for the quarterly period ended September 30, 2013 furnished in XBRL).
|
|
CONSOL ENERGY INC.
|
||
|
|
|
|
|
By:
|
|
/
S
/ J. B
RETT
H
ARVEY
|
|
|
|
J. Brett Harvey
|
|
|
|
Chairman of the Board and Chief Executive Officer
(Duly Authorized Officer and Principal Executive Officer)
|
|
|
|
|
|
By:
|
|
/
S
/ DAVID M. KHANI
|
|
|
|
David M. Khani
|
|
|
|
Chief Financial Officer and Executive Vice President
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
|
By:
|
|
/
S
/ LORRAINE L. RITTER
|
|
|
|
Lorraine L. Ritter
|
|
|
|
Controller and Vice President
(Duly Authorized Officer and Principal Accounting Officer)
|
(a)
|
The Indentures, and each amendment and supplemental indenture thereto, if any, were validly and lawfully executed and delivered by the Resigning Trustee.
|
(b)
|
No covenant or condition contained in the Indentures has been waived by Resigning Trustee or, to the best knowledge of responsible officers of Resigning Trustee’s corporate trust department, by the Holders of the percentage in aggregate principal amount of the Securities required by the Indentures to effect any such waiver.
|
(c)
|
To the best knowledge of responsible officers of Resigning Trustee's corporate trust department, there is no action, suit or proceeding pending or threatened against Resigning Trustee before any court or any governmental authority arising out of any act or omission of Resigning Trustee as Trustee under the Indentures.
|
(d)
|
As of the effective date of this Agreement, Resigning Trustee will hold no moneys or property under the Indentures.
|
(e)
|
Pursuant to (i) Section 2.02 of the 2017 Indenture, Resigning Trustee has duly authenticated and delivered $1,500,000,000 in aggregate principal amount of 2017 Notes, (ii) Section 2.02 of the 2020 Indenture, Resigning Trustee has duly authenticated and delivered $1,250,000,000 in aggregate principal amount of 2020 Notes and (iii) Section 2.02 of the 2021 Indenture, Resigning Trustee has duly authenticated and delivered $250,000,000 in aggregate principal amount of 2021 Notes, all of which, to the best knowledge of responsible officers of Resigning Trustee's corporate trust department, are outstanding as of the effective date hereof and interest has been paid, through the most recent date on which interest is required to be paid in accordance with the terms of such Securities.
|
(f)
|
The registers in which it has registered and transferred registered Securities accurately reflect the amount of Securities issued and outstanding and the amounts payable thereon.
|
(g)
|
Each person who so authenticated the Securities was duly appointed, qualified and acting as an officer or authorized signatory of Resigning Trustee and empowered to authenticate the Securities at the respective times of such authentication and the signature of such person or persons appearing on such Securities is each such person’s genuine signature.
|
(h)
|
This Agreement has been duly authorized, executed and delivered on behalf of Resigning Trustee and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms.
|
(i)
|
Without independent investigation, no responsible officer of the Resigning Trustee's corporate trust department has received notice from the Company or any Holder that a default or Event of Default has occurred and is continuing under any Indenture, and no responsible officer of the Resigning Trustee's corporate trust department has actual knowledge that a default or Event of Default has occurred and is continuing under any Indenture.
|
(a)
|
The Company is a corporation duly and validly organized and existing pursuant to the laws of the State of Delaware.
|
(b)
|
The Indentures, and each amendment or supplemental indenture thereto, if any, were validly and lawfully executed and delivered by the Company and is in full force and effect and the Securities were validly issued by the Company.
|
(c)
|
The Company has performed or fulfilled prior to the date hereof, and will continue to perform and fulfill after the date hereof, each covenant, agreement, condition, obligation and responsibility under the Indentures.
|
(d)
|
No event has occurred and is continuing which is, or after notice or lapse of time or both would become, an Event of Default under any Indenture.
|
(e)
|
No covenant or condition contained in any Indenture has been waived by the Company or by Holders of the percentage in aggregate principal amount of the Securities required to effect any such waiver.
|
(f)
|
There is no action, suit or proceeding pending or, to the best of the Company’s knowledge, threatened against the Company before any court or any governmental authority arising out of any act or omission of the Company under any Indenture.
|
(g)
|
The Company has, by a resolution which was duly adopted by the Board of Directors of the Company, and which is in full force and effect on the date hereof, authorized certain officers of the Company to: (a) accept Resigning Trustee’s resignation as Trustee, Registrar and Paying Agent under the Indentures; (b) appoint Successor Trustee as Trustee, Registrar and Paying Agent under the Indentures; and (c) execute and deliver such agreements, including, without limitation, this Agreement and other instruments as may be necessary or desirable to effectuate the succession of Successor Trustee as Trustee, Registrar and Paying Agent under the Indentures. Furthermore, this Agreement has been duly authorized, executed and delivered on behalf of the Company and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms.
|
(h)
|
All conditions precedent relating to the appointment of Wells Fargo Bank, National Association as successor Trustee under the Indentures have been complied with by the Company.
|
(a)
|
Successor Trustee is not disqualified under the provisions of Section 7.10 of each Indenture and is eligible under the provisions of Section 7.10 of such Indenture to act as Trustee under such Indenture.
|
(b)
|
This Agreement has been duly authorized, executed and delivered on behalf of Successor Trustee and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms.
|
|
CONSOL ENERGY INC.
|
|
|
|
By:
/s/ Stephen W. Johnson
|
|
Name: Stephen W. Johnson
Title: Executive Vice President and Chief Legal and Corporate Affairs Officer |
|
|
|
THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK,
|
|
as Resigning Trustee
|
|
|
|
By:
/s/ Warren A. Goshine
|
|
Name: Warren A. Goshine
Title: Vice President |
|
|
|
WELLS FARGO BANK, NATIONAL ASSOCIATION,
|
|
as Successor Trustee
|
|
|
|
|
|
By:
/s/ Yana Kislenko
|
|
Name: Yana Kislenko
Title: Vice President |
|
|
1.
|
Executed copy of each Indenture and each amendment and supplemental indenture thereto.
|
2.
|
File of closing documents from initial issuance.
|
3.
|
Copies of the most recent of each of the SEC reports delivered by the Company pursuant to Section 4.02 of the Indentures, provided that any such reports filed with the EDGAR system of the SEC and available publicly on the internet shall be deemed to be delivered.
|
4.
|
A copy of the most recent compliance certificate delivered pursuant to Section 4.11 of the Indentures.
|
5.
|
Certified list of Holders, including certificate detail and all “stop transfers” and the reason for such “stop transfers” (or, alternatively, if there are a substantial number of registered Holders, the computer tape reflecting the identity of such Holders).
|
6.
|
Copies of any official notices sent by the Trustee to all the Holders of the Securities pursuant to the terms of the Indentures during the past twelve months and a copy of the most recent Trustee’s annual report to Holders delivered pursuant to Section 4.02 of the Indentures.
|
7.
|
List of any documents which, to the knowledge of Resigning Trustee, are required to be furnished but have not been furnished to Resigning Trustee.
|
8.
|
All global notes.
|
9.
|
Securities debt service records.
|
WELLS FARGO BANK, NATIONAL ASSOCIATION,
|
as Successor Trustee
|
|
|
By:
|
Name:
Title: |
|
CNX FUNDING CORPORATION
,
as Seller
By:
/s/ Christopher C. Jones
Name: Christopher C. Jones Title: Vice President and Secretary |
|
CONSOL ENERGY INC.
,
as initial Servicer
By:
/s/ John M. Reilly
Name: John M. Reilly Title: Vice President and Treasurer |
Section 1
.
|
|
|
|
Capital Payment:
|
$695,173.00
|
|
|
|
|
Section 2
.
|
|
|
|
Discount:
|
$0
|
Fees:
|
$0
|
Other Amounts
:
|
$0
|
CP Costs and Other Costs:
|
$0
|
Bank Name:
|
PNC Bank, National Association
|
ABA #:
|
43000096
|
Account #:
|
1002422076
|
Account Name:
|
Market Street Funding LLC
|
Reference:
|
CNX Funding Corporation
|
707425525 09097997
|
|
|
1.
|
I have reviewed this report on Form 10-Q of CONSOL Energy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 1, 2013
|
|
|
|
|
/s/ J. Brett Harvey
|
|
|
J. Brett Harvey
|
|
|
Chairman of the Board and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this report on Form 10-Q of CONSOL Energy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 1, 2013
|
|
|
|
|
/s/ David M. Khani
|
|
|
David M. Khani
|
|
|
Chief Financial Officer and Executive Vice President
(Principal Financial Officer) |
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Date:
|
November 1, 2013
|
|
|
|
|
/s/ J. Brett Harvey
|
|
|
J. Brett Harvey
|
|
|
Chairman of the Board and Chief Executive Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Date:
|
November 1, 2013
|
|
|
|
|
/s/ David M. Khani
|
|
|
David M. Khani
|
|
|
Chief Financial Officer and Executive Vice President
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notice
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received
|
|
of
|
|
Legal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Notice of
|
|
Potential
|
|
Actions
|
|
|
|
|
|
|
|
|
|
|
|
|
Section
|
|
|
|
|
|
Total Dollar
|
|
Number
|
|
Pattern of
|
|
to have
|
|
Pending
|
|
Legal
|
|
Legal
|
|
|
|
|
Section
|
|
|
|
104(d)
|
|
|
|
|
|
Value of
|
|
of
|
|
Violations
|
|
Pattern
|
|
as of
|
|
Actions
|
|
Actions
|
Mine or Operating
|
|
104
|
|
Section
|
|
Citations
|
|
Section
|
|
Section
|
|
MSHA
|
|
Mining
|
|
Under
|
|
Under
|
|
Last
|
|
Initiated
|
|
Resolved
|
||
Name/MSHA
|
|
S&S
|
|
104(b)
|
|
and
|
|
110(b)(2)
|
|
107(a)
|
|
Assessments
|
|
Related
|
|
Section
|
|
Section
|
|
Day of
|
|
During
|
|
During
|
||
Identification Number
|
|
Citations
|
|
Orders
|
|
Orders
|
|
Violations
|
|
Orders
|
|
Proposed
|
|
Fatalities
|
|
104(e)
|
|
104(e)
|
|
Period (1)
|
|
Period
|
|
Period
|
||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alma No. 1 Mine
|
|
46-09277
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,733
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Bailey
|
|
36-07230
|
|
19
|
|
—
|
|
—
|
|
—
|
|
—
|
|
25,068
|
|
—
|
|
No
|
|
No
|
|
11
|
|
4
|
|
1
|
Blacksville 2
|
|
46-01968
|
|
45
|
|
—
|
|
—
|
|
—
|
|
—
|
|
101,210
|
|
—
|
|
No
|
|
No
|
|
22
|
|
4
|
|
7
|
Buchanan
|
|
44-04856
|
|
12
|
|
—
|
|
—
|
|
—
|
|
—
|
|
50,439
|
|
—
|
|
No
|
|
No
|
|
34
|
|
5
|
|
—
|
Central Repair Shop
|
|
46-03240
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
300
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Enlow Fork
|
|
36-07416
|
|
25
|
|
—
|
|
—
|
|
—
|
|
—
|
|
61,042
|
|
—
|
|
No
|
|
No
|
|
7
|
|
5
|
|
3
|
Ireland Dock Loadout
|
|
46-01438
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100
|
|
—
|
|
No
|
|
No
|
|
5
|
|
—
|
|
—
|
Keystone Cleaning Plant
|
|
36-08540
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Loveridge
|
|
46-01433
|
|
64
|
|
—
|
|
2
|
|
—
|
|
—
|
|
287,611
|
|
—
|
|
No
|
|
No
|
|
24
|
|
6
|
|
6
|
McElroy
|
|
46-01437
|
|
66
|
|
—
|
|
5
|
|
—
|
|
—
|
|
161,412
|
|
—
|
|
No
|
|
No
|
|
30
|
|
7
|
|
7
|
Miller Creek PP #1
|
|
46-05890
|
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
1
|
Robinson Run
|
|
46-01318
|
|
58
|
|
—
|
|
4
|
|
—
|
|
—
|
|
78,524
|
|
—
|
|
No
|
|
No
|
|
34
|
|
4
|
|
3
|
Shoemaker
|
|
46-01436
|
|
30
|
|
—
|
|
—
|
|
—
|
|
—
|
|
44,609
|
|
—
|
|
No
|
|
No
|
|
23
|
|
3
|
|
4
|
Twin Branch Surface
|
|
46-09075
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
663
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amonate Plant
|
|
46-05449
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Big Branch #1Belt/Spruce Creek
|
|
46-09177
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Big Fork
|
|
44-06859
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Bronzite II (MT-41)
|
|
46-09307
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Bronzite III (Jacobs)
|
|
46-05978
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
833
|
|
—
|
|
No
|
|
No
|
|
1
|
|
—
|
|
—
|
Elk Creek Prep Plant (Sold)
|
|
46-02444
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Emery
|
|
42-00079
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
1
|
Fola Surface
|
|
46-08377
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
1
|
|
—
|
|
—
|
Ike Fork 5 Block
|
|
46-09420
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
1
|
|
—
|
|
—
|
Impoundment 14-N
|
|
36-08094
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Jones Fork Prep Plant (Sold)
|
|
15-17021
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Laurel Fork
|
|
46-09084
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Mine or Operating Name/MSHA Identification Number
|
|
Contests of Citations, Orders
(as of 9.30.13)
(a)
|
|
Contests of Proposed Penalties
(as of 9.30.13)
(b)
|
|
Complaints for Compensation
(as of 9.30.13)
(c)
|
|
Complaints of Discharge, Discrimination or Interference
(as of 9.30.13)
(d)
|
|
Applications for Temporary Relief
(as of 9.30.13)
(e)
|
|
Appeals of Judges' Decisions or Order
(as of 9.30.13)
(f)
|
||||
|
|
|
||||||||||||||
|
|
Dockets
|
|
Citations
|
|
|
|
|
||||||||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alma No. 1 Mine
|
|
46-09277
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Bailey
|
|
36-07230
|
|
—
|
|
10
|
|
31
|
|
—
|
|
1
|
|
—
|
|
—
|
Blacksville 2
|
|
46-01968
|
|
—
|
|
22
|
|
268
|
|
—
|
|
—
|
|
—
|
|
—
|
Buchanan
|
|
44-04856
|
|
—
|
|
32
|
|
297
|
|
—
|
|
2
|
|
—
|
|
—
|
Central Repair Shop
|
|
46-03240
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Enlow Fork
|
|
36-07416
|
|
—
|
|
7
|
|
23
|
|
—
|
|
—
|
|
—
|
|
—
|
Ireland Dock Loadout
|
|
46-01438
|
|
—
|
|
5
|
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
Keystone Cleaning Plant
|
|
36-08540
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Loveridge
|
|
46-01433
|
|
—
|
|
23
|
|
150
|
|
—
|
|
1
|
|
—
|
|
—
|
McElroy
|
|
46-01437
|
|
—
|
|
29
|
|
528
|
|
—
|
|
1
|
|
—
|
|
—
|
Miller Creek PP #1
|
|
46-05890
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Robinson Run
|
|
46-01318
|
|
—
|
|
33
|
|
384
|
|
—
|
|
—
|
|
—
|
|
1
|
Shoemaker
|
|
46-01436
|
|
—
|
|
22
|
|
235
|
|
—
|
|
1
|
|
—
|
|
—
|
Twin Branch Surface
|
|
46-09075
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amonate Plant
|
|
46-05449
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Big Branch #1Belt/Spruce Creek
|
|
46-09177
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Big Fork
|
|
44-06859
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Bronzite II (MT‑41)
|
|
46-09307
|
|
—
|
|
1
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
Bronzite III (Jacobs)
|
|
46-05978
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Elk Creek Prep Plant (Sold)
|
|
46-02444
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Emery
|
|
42-00079
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Fola Surface
|
|
46-08377
|
|
—
|
|
1
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
Ike Fork 5 Block
|
|
46-09420
|
|
—
|
|
1
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
Impoundment 14‑N
|
|
36-08094
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Jones Fork Prep Plant(Sold)
|
|
15-17021
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|