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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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51-0337383
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Name of exchange on which registered
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Common Stock ($.01 par value)
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New York Stock Exchange
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Preferred Share Purchase Rights
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New York Stock Exchange
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TABLE OF CONTENTS
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Page
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PART I
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ITEM 1.
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Business
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ITEM 1A.
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Risk Factors
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ITEM 1B.
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Unresolved Staff Comments
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ITEM 2.
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Properties
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ITEM 3.
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Legal Proceedings
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ITEM 4.
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Mine Safety and Health Administration Safety Data
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PART II
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ITEM 5.
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Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities
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ITEM 6.
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Selected Financial Data
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ITEM 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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ITEM 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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ITEM 8.
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Financial Statements and Supplementary Data
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ITEM 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
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ITEM 9A.
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Controls and Procedures
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ITEM 9B.
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Other Information
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PART III
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ITEM 10.
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Directors and Executive Officers of the Registrant
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ITEM 11.
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Executive Compensation
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ITEM 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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ITEM 13.
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Certain Relationships and Related Transactions and Director Independence
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ITEM 14.
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Principal Accounting Fees and Services
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PART IV
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ITEM 15.
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Exhibits and Financial Statement Schedules
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SIGNATURES
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•
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deterioration in economic conditions in any of the industries in which our customers operate may decrease demand for our products, impair our ability to collect customer receivables and impair our ability to access capital;
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•
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prices for natural gas, natural gas liquids and coal are volatile and can fluctuate widely based upon a number of factors beyond our control including oversupply relative to the demand available for our products, weather and the price and availability of alternative fuels. An extended decline in the prices we receive for our natural gas, natural gas liquids and coal affecting our operating results and cash flows;
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•
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foreign currency fluctuations could adversely affect the competitiveness of our coal abroad;
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•
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our customers extending existing contracts or entering into new long-term contracts for coal;
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•
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our reliance on major customers;
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•
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our inability to collect payments from customers if their creditworthiness declines;
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•
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the disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our natural gas and coal to market;
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•
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a loss of our competitive position because of the competitive nature of the natural gas and coal industries, or a loss of our competitive position because of overcapacity in these industries impairing our profitability;
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•
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coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions;
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•
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the impact of potential, as well as any adopted regulations relating to greenhouse gas emissions on the demand for natural gas and coal;
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•
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the risks inherent in natural gas and coal operations, including our reliance upon third party contractors, being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant
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•
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decreases in the availability of, or increases in, the price of commodities or capital equipment used in our mining operations;
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•
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obtaining and renewing governmental permits and approvals for our natural gas and coal operations;
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•
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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 natural gas and coal operations;
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•
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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;
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•
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the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down a mine;
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•
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the potential for liabilities arising from environmental contamination or alleged environmental contamination in connection with our past or current gas and coal operations;
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•
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the effects of mine closing, reclamation, gas well closing and certain other liabilities;
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•
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uncertainties in estimating our economically recoverable gas, oil and coal reserves;
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•
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defects may exist in our chain of title and we may incur additional costs associated with perfecting title for gas rights on some of our properties or failing to acquire these additional rights may result in a reduction of our estimated reserves;
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•
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the outcomes of various legal proceedings, which are more fully described in our reports filed under the Securities Exchange Act of 1934;
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•
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increased exposure to employee-related long-term liabilities;
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•
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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;
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•
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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 changes that could affect assumptions we may have made and divestitures we anticipate may not occur or produce anticipated proceeds;
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•
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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;
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•
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risks associated with our debt;
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•
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replacing our gas and oil reserves, which if not replaced, will cause our gas and oil reserves and production to decline;
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•
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our hedging activities may prevent us from benefiting from price increases and may expose us to other risks;
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•
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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;
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•
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failure to appropriately allocate capital and other resources among our strategic opportunities may adversely affect our financial condition;
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•
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failure by Murray Energy to satisfy liabilities it acquired from us, or failure to perform its obligations under various arrangements, which we guaranteed, could materially or adversely affect our results of operations, financial position, and cash flows;
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•
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information theft, data corruption, operational disruption and/or financial loss resulting from a terrorist attack or cyber incident;
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•
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operating in a single geographic area;
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•
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our inability to complete the proposed initial public offerings of a master limited partnership (MLP) owning certain of our thermal coal assets or a subsidiary owning certain of our metallurgical coal asset (Metco) on the terms currently contemplated; and
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•
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other factors discussed in this 2014 Form 10-K under “Risk Factors,” as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.
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ITEM 1.
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Business
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•
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Total production of 645,792 Mcfe per day, an increase of 37% over 2013;
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•
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92% Natural Gas, 8% Liquids; and
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•
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47% Marcellus, 34% coalbed methane, 7% Utica, and 12% other.
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•
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6.8 Tcfe of proved reserves;
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•
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92.5% natural gas;
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•
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46.9% proved developed;
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•
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71.9% operated; and
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•
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A reserve life ratio of 28.97 years (based on 2014 production).
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•
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Underground mining complexes are among the safest in the United States of America;
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•
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Production of 32.2 million tons of coal from continuing operations;
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•
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Coal reserve holdings of 3.2 billion tons;
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•
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5% of coal sales delivered to export markets;
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•
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72% of coal sales to domestic utilities; and
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•
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Harvey Mine in southwest Pennsylvania came on-line in March 2014.
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•
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Safety,
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•
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Compliance, and
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•
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Continuous Improvement.
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•
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44 wells in Southwestern Pennsylvania,
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•
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10 wells in Central Pennsylvania,
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•
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23 wells in Northern West Virginia,
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•
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1 well drilled in Ohio in the wet gas area of the play, and
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•
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91 wells drilled by Noble Energy in the wet gas area of the play.
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Marcellus
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Utica
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CBM
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Other Gas
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Segment
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Segment
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Segment
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Segment
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Total
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|||||
Estimated Net Proved Reserves (MMcfe)
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4,235,212
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495,290
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1,467,194
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629,920
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6,827,616
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Percent Developed
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32
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%
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33
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%
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|
74
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%
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92
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%
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47
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%
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Net Producing Wells (including oil and gob wells)
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196
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22
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4,374
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8,360
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12,952
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Net Acreage Position:
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|||||
Net Proved Developed Acres
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19,675
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2,822
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257,543
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235,400
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515,439
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Net Proved Undeveloped Acres
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44,299
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7,207
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9,023
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3,272
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63,801
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Net Unproved Acres(1)
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376,837
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216,302
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2,122,397
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1,218,439
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|
|
3,933,975
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Total Net Acres(2)
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440,811
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226,331
|
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2,388,963
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1,457,111
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4,513,215
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(1)
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Net acres include acreage attributable to our working interests in the properties. Additional adjustments (either increases or decreases) may be required as we further develop title to and further confirm our rights with respect to our various properties in anticipation of development. We believe that our assumptions and methodology in this regard are reasonable. See Risk Factors in Section 1A of this Form 10-K.
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(2)
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Acreage amounts are shown under the target strata CONSOL Energy expects to produce, although the reported acres may include rights to multiple gas seams (CBM, Utica, Marcellus, etc.). We have reviewed our drilling plans, our acreage rights and used our best judgment to reflect the acres in the strata we expect to produce. As more information is obtained or circumstances change, the acreage classification may change.
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Gross
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Net(1)
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||
Producing Gas Wells (including gob wells)
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17,044
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12,918
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Producing Oil Wells
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154
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34
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Net Acreage Position
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||
Proved Developed Acreage
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537,935
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515,439
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Proved Undeveloped Acreage
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112,617
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63,801
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Unproven Acreage
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4,946,174
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3,933,975
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Total Acreage
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5,596,726
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4,513,215
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(1)
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Net acres include acreage attributable to our working interests in the properties. Additional adjustments (either increases or decreases) may be required as we further develop title to and further confirm our rights with respect to our various properties in anticipation of development. We believe that our assumptions and methodology in this regard are reasonable. See Risk Factors in Section 1A of this Form 10-K.
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Net Unproved Acres
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Net Proved Undeveloped Acres
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Held by production/fee
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3,792,960
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49,756
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Expiration within 2 years
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39,385
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2,665
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Expiration beyond 2 years
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101,630
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11,380
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Total Acreage
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3,933,975
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63,801
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For the Year
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|||||||
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Ended December 31,
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|||||||
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2014
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2013
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2012
|
|||||
Marcellus segment
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84.0
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56.0
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44.0
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Utica segment
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18.8
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|
|
9.0
|
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—
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CBM segment
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75.0
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63.8
|
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42.5
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Other Gas segment
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2.5
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|
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11.0
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|
9.0
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Total Development Wells (Net)
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180.3
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|
139.8
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|
|
95.5
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For the Year Ended December 31,
|
||||||||||||||||||||||||||
|
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2014
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2013
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|
2012
|
||||||||||||||||||||||
|
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Producing
|
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Dry
|
|
Still Eval.
|
|
Producing
|
|
Dry
|
|
Still Eval.
|
|
Producing
|
|
Dry
|
|
Still Eval.
|
||||||||||
Marcellus segment
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
Utica segment
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
0.5
|
|
|
—
|
|
|
CBM segment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other Gas segment
|
|
5.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
—
|
|
—
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|
|
—
|
|
|
6.0
|
|
|
9.0
|
|
|
—
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|
Total Exploratory Wells (Net)
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5.5
|
|
|
—
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|
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3.0
|
|
|
5.5
|
|
|
—
|
|
|
—
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|
|
12.5
|
|
|
9.5
|
|
|
—
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|
Net Reserves
|
|||||||
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|
(Million cubic feet equivalent)
|
|||||||
|
|
as of December 31,
|
|||||||
|
|
2014
|
|
2013
|
|
2012
|
|||
Proved developed reserves
|
|
3,198,706
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|
|
2,514,294
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|
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2,165,483
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Proved undeveloped reserves
|
|
3,628,910
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|
|
3,216,920
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|
|
1,827,975
|
|
Total proved developed and undeveloped reserves(a)
|
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6,827,616
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|
|
5,731,214
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|
|
3,993,458
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(a)
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For additional information on our reserves, see “Other Supplemental Information–Supplemental Gas Data (unaudited) to the Consolidated Financial Statements in Item 8 of this Form 10-K.
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|
|
Discounted Future
|
||||||||||
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|
Net Cash Flows
|
||||||||||
|
|
(Dollars in millions)
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Future net cash flows
|
|
$
|
9,321
|
|
|
$
|
6,568
|
|
|
$
|
2,792
|
|
Total PV-10 measure of pre-tax discounted future net cash flows (1)
|
|
$
|
4,884
|
|
|
$
|
2,780
|
|
|
$
|
1,242
|
|
Total standardized measure of after tax discounted future net cash flows
|
|
$
|
2,984
|
|
|
$
|
1,681
|
|
|
$
|
736
|
|
(1)
|
We calculate our present value at 10% (PV-10) in accordance with the following table. Management believes that the presentation of the non-Generally Accepted Accounting Principle (GAAP) financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and gas companies. Because many factors that are unique to each individual company impact the amount of future income taxes estimated to be paid, the use of a pre-tax measure is valuable when comparing companies based on reserves. PV-10 is not a measure of the financial or operating performance under GAAP. PV-10 should not be considered as an alternative to the standardized measure as defined under GAAP. We have included a reconciliation of the most directly comparable GAAP measure-after-tax discounted future net cash flows.
|
|
|
As of December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(Dollars in millions)
|
||||||||||
Future cash inflows
|
|
$
|
28,503
|
|
|
$
|
21,603
|
|
|
$
|
11,778
|
|
Future production costs
|
|
(10,101
|
)
|
|
(7,106
|
)
|
|
(4,824
|
)
|
|||
Future development costs (including abandonments)
|
|
(3,369
|
)
|
|
(3,903
|
)
|
|
(2,451
|
)
|
|||
Future net cash flows (pre-tax)
|
|
15,033
|
|
|
10,594
|
|
|
4,503
|
|
|||
10% discount factor
|
|
(10,149
|
)
|
|
(7,814
|
)
|
|
(3,261
|
)
|
|||
PV-10 (Non-GAAP measure)
|
|
4,884
|
|
|
2,780
|
|
|
1,242
|
|
|||
Undiscounted income taxes
|
|
(5,712
|
)
|
|
(4,026
|
)
|
|
(1,711
|
)
|
|||
10% discount factor
|
|
3,812
|
|
|
2,927
|
|
|
1,205
|
|
|||
Discounted income taxes
|
|
(1,900
|
)
|
|
(1,099
|
)
|
|
(506
|
)
|
|||
Standardized GAAP measure
|
|
$
|
2,984
|
|
|
$
|
1,681
|
|
|
$
|
736
|
|
|
|
For the Year
|
|||||||
|
|
Ended December 31,
|
|||||||
|
|
2014
|
|
2013
|
|
2012
|
|||
GAS
|
|
|
|
|
|
|
|||
Marcellus Sales Volumes (MMcf)
|
|
99,370
|
|
|
55,048
|
|
|
35,853
|
|
Utica Sales Volumes (MMcf)
|
|
10,303
|
|
|
531
|
|
|
3
|
|
CBM Sales Volumes (MMcf)
|
|
79,459
|
|
|
82,867
|
|
|
88,149
|
|
Other Sales Volumes (MMcf)
|
|
27,128
|
|
|
30,291
|
|
|
31,047
|
|
LIQUIDS*
|
|
|
|
|
|
|
|||
NGLs Sales Volumes (MMcfe)
|
|
15,475
|
|
|
2,628
|
|
|
610
|
|
Oil Sales Volumes (MMcfe)
|
|
681
|
|
|
634
|
|
|
600
|
|
Condensate Sales Volumes (MMcfe)
|
|
3,298
|
|
|
381
|
|
|
63
|
|
TOTAL (MMcfe)
|
|
235,714
|
|
|
172,380
|
|
|
156,325
|
|
|
|
For the Year
|
||||||||||
|
|
Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Total Average Gas Sales Price Before Effects of Financial Settlements (per Mcfe)
|
|
$
|
4.26
|
|
|
$
|
3.85
|
|
|
$
|
3.00
|
|
Average Effects of Financial Settlements (per Mcfe)
|
|
$
|
0.11
|
|
|
$
|
0.45
|
|
|
$
|
1.22
|
|
Total Average Gas Sales Price Including Effects of Financial Settlements (per Mcfe)
|
|
$
|
4.37
|
|
|
$
|
4.30
|
|
|
$
|
4.22
|
|
Average Lifting Costs excluding ad valorem and severance taxes (per Mcfe)
|
|
$
|
0.50
|
|
|
$
|
0.56
|
|
|
$
|
0.58
|
|
CONSOL ENERGY MINING COMPLEXES
|
|
|||||||||||||||||||||||
Proven and Probable Assigned and Accessible Coal Reserves as of December 31, 2014 and 2013
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
Recoverable
|
|
|||||||||||
|
|
|
|
|
|
|
|
Average
|
|
As Received Heat
|
|
Reserves(2)
|
|
|||||||||||
|
|
Preparation
|
|
|
|
|
|
Seam
|
|
Value(1)
|
|
|
|
|
|
Tons in
|
|
|||||||
|
|
Facility
|
|
Reserve
|
|
Coal
|
|
Thickness
|
|
(Btu/lb)
|
|
Owned
|
|
Leased
|
|
Millions
|
|
|||||||
Mine/Reserve
|
|
Location
|
|
Class
|
|
Seam
|
|
(feet)
|
|
Typical
|
|
Range
|
|
(%)
|
|
(%)
|
|
12/31/2014
|
(4)
|
12/31/2013
|
(4)
|
|||
ASSIGNED–OPERATING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
PA Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Bailey (3)
|
|
Enon, PA
|
|
Assigned Operating
|
|
Pittsburgh
|
|
7.6
|
|
12,930
|
|
12,800 – 13,050
|
|
53%
|
|
47%
|
|
84.0
|
|
|
96.9
|
|
|
|
|
|
|
|
Accessible
|
|
Pittsburgh
|
|
7.5
|
|
12,930
|
|
12,720 – 13,190
|
|
78%
|
|
22%
|
|
170.5
|
|
|
278.7
|
|
|
|
Harvey (3)
|
|
Enon, PA
|
|
Assigned Operating
|
|
Pittsburgh
|
|
6.6
|
|
13,040
|
|
12,940 – 13,230
|
|
89%
|
|
11%
|
|
27.1
|
|
|
—
|
|
|
|
|
|
|
|
Accessible
|
|
Pittsburgh
|
|
7.6
|
|
12,930
|
|
12,870 – 13,160
|
|
99%
|
|
1%
|
|
181.2
|
|
|
—
|
|
|
|
Enlow Fork (3)
|
|
Enon, PA
|
|
Assigned Operating
|
|
Pittsburgh
|
|
7.8
|
|
12,920
|
|
12,800 – 13,000
|
|
99%
|
|
1%
|
|
21.6
|
|
|
16.9
|
|
|
|
|
|
|
|
Accessible
|
|
Pittsburgh
|
|
7.6
|
|
12,980
|
|
12,720 – 13,120
|
|
76%
|
|
24%
|
|
301.2
|
|
|
232.8
|
|
|
|
VA Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Buchanan
|
|
Mavisdale, VA
|
|
Assigned Operating
|
|
Pocahontas 3
|
|
6.0
|
|
13,790
|
|
13,690 – 14,050
|
|
20%
|
|
80%
|
|
44.8
|
|
|
47.2
|
|
|
|
|
|
|
|
Accessible
|
|
Pocahontas 3
|
|
5.9
|
|
13,760
|
|
13,690 – 13,900
|
|
15%
|
|
85%
|
|
47.3
|
|
|
46.1
|
|
|
|
Amonate Complex
|
|
Amonate, VA
|
|
Assigned Operating
|
|
Multiple
|
|
4.3
|
|
13,150
|
|
12,850 – 13,350
|
|
69%
|
|
31%
|
|
15.8
|
|
20.1
|
|
|||
|
|
|
|
Accessible
|
|
Multiple
|
|
6.4
|
|
12,880
|
|
12,880 – 12,880
|
|
100%
|
|
—%
|
|
3.9
|
|
6.6
|
|
|||
Other Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amvest Fola Complex (3)
|
|
Bickmore, WV
|
|
Assigned Operating
|
|
Multiple
|
|
4.6
|
|
12,380
|
|
|
12,250 – 12,550
|
|
86%
|
|
14%
|
|
73.4
|
|
73.4
|
|
||
Miller Creek Complex
|
|
Delbarton, WV
|
|
Assigned Operating
|
|
Multiple
|
|
2.6
|
|
12,100
|
|
|
11,600 – 12,650
|
|
40%
|
|
60%
|
|
52.0
|
|
52.6
|
|
||
|
|
|
|
Accessible
|
|
Multiple
|
|
5.1
|
|
12,650
|
|
|
12,650 – 12,650
|
|
—%
|
|
100%
|
|
0.8
|
|
0.7
|
|
||
Total Assigned Operating and Accessible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,023.6
|
|
|
872.0
|
|
|
(1)
|
The heat value shown for Assigned Operating reserves is based on the quality of coal mined and processed during the year ended
December 31, 2014
. The heat values shown for Accessible Reserves are based on as received, dry values obtained from drill hole analyses, adjusted for moisture, and prorated by the associated Assigned Operating product values to account for similar mining and processing methods.
|
(2)
|
Recoverable reserves are calculated based on the area in which mineable coal exists, coal seam thickness, and average density determined by laboratory testing of drill core samples. This calculation is adjusted to account for coal that will not be recovered during mining and for losses that occur if the coal is processed after mining. Reserve calculations do not include adjustments for moisture that may be added during mining or processing, nor do the calculations include adjustments for dilution from rock lying above or below the coal seam. Reserves are reported only for those coal seams that are controlled by ownership or leases.
|
(3)
|
A portion of these reserves contain metallurgical qualities and are currently being sold on the metallurgical market.
|
(4)
|
The table excludes both 55.0 million tons of recoverable reserves held by an equity affiliate of which CONSOL Energy owns a 49% interest and approximately 118.8 million tons of reserves at
December 31, 2014
that are assigned to projects that have not produced coal in 2014. These assigned reserves are in the Northern Appalachia (Pennsylvania, Ohio and Northern West Virginia), Central Appalachia (Virginia and Southern West Virginia) and Western U.S. (Utah) and are approximately 71% owned and 29% leased.
|
(1)
|
The heat value estimates for Northern Appalachian and Central Appalachian Unassigned coal reserves include adjustments for moisture that may be added during mining or processing as well as for dilution by rock lying above or below the coal seam. The mining and processing methods currently in use, are used for these estimates. The heat value estimates for the Illinois Basin, unassigned reserves are based primarily on exploration drill core data that may not include adjustments for moisture added during mining or processing or for dilution by rock lying above or below the coal seam.
|
(2)
|
Recoverable reserves are calculated based on the area in which mineable coal exists, coal seam thickness, and average density determined by laboratory testing of drill core samples. This calculation is adjusted to account for coal that will not be recovered during mining and for losses that occur if the coal is processed after mining. Reserve calculations do not include adjustment for moisture that may be added during mining or processing, nor do the calculations include adjustments for dilution from rock lying above or below the coal seam. Reserves are only reported for those coal seams that are controlled by ownership or leases.
|
CONSOL Energy Proven and Probable Recoverable Coal Reserves
|
||||||||||||||||||||||||||||||||||
By Product (In Millions of Tons) As of December 31, 2014
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
≤ 1.20 lbs.
|
|
> 1.20 ≤ 2.50 lbs.
|
|
> 2.50 lbs.
|
|
|
|
|
|||||||||||||||||||||||
|
|
|
S02/MMBtu
|
|
S02/MMBtu
|
|
S02/MMBtu
|
|
|
|
|
|||||||||||||||||||||||
|
|
|
Low
|
|
Med
|
|
High
|
|
Low
|
|
Med
|
|
High
|
|
Low
|
|
Med
|
|
High
|
|
|
|
Percent By
|
|||||||||||
By Region
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Btu
|
|
Total
|
|
Product
|
||||||||||||
Metallurgical(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
High Vol A Bituminous
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
208.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215.0
|
|
|
6.6
|
%
|
|
Med Vol Bituminous
|
|
—
|
|
|
5.1
|
|
|
56.0
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64.0
|
|
|
2.0
|
%
|
|
Low Vol Bituminous
|
|
—
|
|
|
—
|
|
|
126.8
|
|
|
—
|
|
|
—
|
|
|
73.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200.5
|
|
|
6.2
|
%
|
|
Total Metallurgical
|
|
—
|
|
|
5.1
|
|
|
189.1
|
|
|
—
|
|
|
—
|
|
|
285.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
479.5
|
|
|
14.8
|
%
|
Thermal(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
High Vol A Bituminous
|
|
31.4
|
|
|
80.4
|
|
|
4.6
|
|
|
38.2
|
|
|
105.2
|
|
|
62.3
|
|
|
66.7
|
|
|
1,077.0
|
|
|
703.0
|
|
|
2,168.8
|
|
|
67.0
|
%
|
|
High Vol B Bituminous
|
|
—
|
|
|
17.7
|
|
|
—
|
|
|
—
|
|
|
113.4
|
|
|
—
|
|
|
—
|
|
|
186.7
|
|
|
—
|
|
|
317.8
|
|
|
9.8
|
%
|
|
High Vol C Bituminous
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
159.4
|
|
|
—
|
|
|
108.3
|
|
|
—
|
|
|
—
|
|
|
267.7
|
|
|
8.3
|
%
|
|
Low Vol Bituminous
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|
4.5
|
|
|
0.1
|
%
|
|
Total Thermal
|
|
31.4
|
|
|
98.1
|
|
|
4.6
|
|
|
38.2
|
|
|
378.0
|
|
|
62.3
|
|
|
175.0
|
|
|
1,263.7
|
|
|
707.5
|
|
|
2,758.8
|
|
|
85.2
|
%
|
|
Total
|
|
31.4
|
|
|
103.2
|
|
|
193.7
|
|
|
38.2
|
|
|
378.0
|
|
|
347.6
|
|
|
175.0
|
|
|
1,263.7
|
|
|
707.5
|
|
|
3,238.3
|
|
|
100.0
|
%
|
|
Percent of Total
|
|
1.0
|
%
|
|
3.2
|
%
|
|
6.0
|
%
|
|
1.2
|
%
|
|
11.7
|
%
|
|
10.7
|
%
|
|
5.4
|
%
|
|
39.0
|
%
|
|
21.8
|
%
|
|
100.0
|
%
|
|
|
|
|
Total
|
|
Total
|
|
Total
|
|
|
Royalty
|
|
Coal
|
|
Royalty
|
|
|
Tonnage
|
|
Acreage
|
|
Income
|
Year
|
|
(in thousands)
|
|
Leased
|
|
(in thousands)
|
2014
|
|
10,230
|
|
281,894
|
|
$18,460
|
2013
|
|
8,335
|
|
271,755
|
|
$16,906
|
2012
|
|
8,326
|
|
271,760
|
|
$16,853
|
A
|
–
|
Auger
|
S
|
–
|
Surface
|
U
|
–
|
Underground
|
LW
|
–
|
Longwall
|
CM
|
–
|
Continuous Miner
|
S/L
|
–
|
Stripping Shovel and Front End Loaders
|
R
|
–
|
Rail
|
R/B
|
–
|
Rail to Barge
|
T
|
–
|
Truck
|
(1)
|
–
|
Mine was idled for part of the year(s) presented due to market conditions.
|
(2)
|
–
|
Harrison Resources, Miller Creek Complex, AMVEST–Fola Complex, Amonate Complex and Western Allegheny (includes facilities operated by independent contractors).
|
(3)
|
–
|
Mine was idle for three weeks during 2012 due to a structural failure at the above-ground conveyor system at the Bailey Preparation Plant. Production later resumed at a reduced capacity.
|
(4)
|
–
|
Production amounts represent CONSOL Energy's 49% ownership interest. Interest in Harrison Resources was sold on October 1, 2014.
|
(5)
|
–
|
Completed development work and was placed in service in March 2014.
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Average Sales Price Per Ton Sold– PA Operations
|
|
$
|
61.88
|
|
|
$
|
63.93
|
|
|
$
|
67.67
|
|
Average Sales Price Per Ton Sold– VA Operations
|
|
$
|
71.80
|
|
|
$
|
92.43
|
|
|
$
|
140.11
|
|
Average Sales Price Per Ton Sold– Other Operations
|
|
$
|
60.12
|
|
|
$
|
70.22
|
|
|
$
|
71.44
|
|
Average Sales Price Per Ton Sold– Total Company
|
|
$
|
63.03
|
|
|
$
|
69.34
|
|
|
$
|
77.75
|
|
|
|
Tons
|
|
Percent of
|
||
|
|
Sold
|
|
Total
|
||
PA Operations
|
|
26.1
|
|
|
81
|
%
|
VA Operations
|
|
4.1
|
|
|
13
|
%
|
Other Operations
|
|
2.2
|
|
|
6
|
%
|
Total tons sold
|
|
32.4
|
|
|
100
|
%
|
COAL DIVISION GUIDANCE
|
||||||||||||
(Tons in millions)
|
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Q1 2015
|
|
2015
|
|
2016
|
||||||
Estimated Total Coal Sales
|
|
8.0 - 8.5
|
|
|
30.5 - 33.0
|
|
|
30.5 - 33.0
|
|
|||
Tonnage: Firm
|
|
7.3
|
|
|
24.2
|
|
|
13.4
|
|
|||
Price: Sold (firm)
|
|
$
|
62.24
|
|
|
$
|
63.06
|
|
|
$
|
63.12
|
|
Estimated PA Operations Sales
|
|
6.6 - 6.8
|
|
|
24.9 - 26.6
|
|
|
24.9 - 26.6
|
|
|||
Tonnage: Firm
|
|
5.9
|
|
|
20.7
|
|
|
11.8
|
|
|||
Estimated VA Operations Sales
|
|
1.0 - 1.2
|
|
|
3.7 - 4.2
|
|
|
3.7 - 4.2
|
|
|||
Tonnage: Firm
|
|
0.9
|
|
|
1.6
|
|
|
0.8
|
|
|||
Estimated Other Sales
|
|
0.4 - 0.5
|
|
|
1.9 - 2.2
|
|
|
1.9 - 2.2
|
|
|||
Tonnage: Firm
|
|
0.5
|
|
|
1.9
|
|
|
0.8
|
|
•
|
Fixed price contracts with pre-established prices;
|
•
|
Periodically negotiated prices that reflect market conditions at the time;
|
•
|
Price restricted to an agreed-upon percentage increase or decrease; or
|
•
|
Base-price-plus-escalation methods which allow for periodic price adjustments based on inflation indices, or other negotiated indices.
|
•
|
the price of competing coal and alternative fuel supplies, including nuclear, natural gas, oil and
|
•
|
environmental and government regulation;
|
•
|
coal quality;
|
•
|
transportation costs from the mine to the customer;
|
•
|
the reliability of fuel supply;
|
•
|
worldwide demand for steel;
|
•
|
natural/weather disasters; and
|
•
|
political changes in international governments.
|
•
|
the caching of additional supplies of self-contained self-rescuer (SCSR) devices underground;
|
•
|
the purchase and installation of electronic communication and personal tracking devices underground;
|
•
|
the placement of refuge chambers, which are structures designed to provide refuge for groups of miners during a mine emergency when evacuation from the mine is not possible, which will provide breathable air for 96 hours;
|
•
|
the replacement of existing seals in worked-out areas of mines with stronger seals;
|
•
|
the purchase of new fire resistant conveyor belting underground;
|
•
|
additional training and testing that creates the need to hire additional employees; and
|
•
|
more stringent rock dusting requirements.
|
•
|
current and former coal miners totally disabled from black lung disease;
|
•
|
certain survivors of a miner who dies from black lung disease or pneumoconiosis; and
|
•
|
a trust fund for the payment of benefits and medical expenses to claimants whose last mine employment was before January 1, 1970, where no responsible coal mine operator has been identified for claims (where a miner's last coal employment was after December 31, 1969), or where the responsible coal mine operator has defaulted on the payment of such benefits. The trust fund is funded by an excise tax on U.S. production of up to $1.10 per ton for deep mined coal and up to $0.55 per ton for surface-mined coal, neither amount to exceed 4.4% of the gross sales price.
|
ITEM 1A.
|
Risk Factors
|
•
|
demand for natural gas and electricity in the United States is impacted by industrial production, which if weakened would negatively impact the revenues, margins and profitability of our natural gas and thermal coal business;
|
•
|
demand for metallurgical coal depends on steel demand in the United States and globally, which if weakened would negatively impact the revenues, margins and profitability of our metallurgical coal business including our ability to sell our thermal coal as higher-priced high volatile metallurgical coal;
|
•
|
the tightening of credit or lack of credit availability to our customers could adversely affect our ability to collect our trade receivables and the amount of receivables eligible for sale pursuant to our accounts receivable securitization facility may decline; and
|
•
|
our ability to access the capital markets may be restricted at a time when we would like, or need, to raise capital for our business including for exploration and/or development of our gas or coal reserves.
|
•
|
changes in the consumption pattern of industrial consumers, electricity generators and residential users;
|
•
|
weather conditions in our markets which affect the demand for natural gas and thermal coal (for example, the unusually warm 2011 - 2012 winter left utilities with large coal stockpiles and depressed the demand for thermal coal);
|
•
|
proximity and capacity of gas pipelines and other transportation facilities;
|
•
|
the price and availability of alternative fuels, especially thermal coal; the price and supply of imported liquefied natural gas; and
|
•
|
increased utilization by the steel industry of electric arc furnaces or pulverized coal processes to make steel which do not use furnace coke, an intermediate product produced from metallurgical coal, decreases the demand for metallurgical coal.
|
•
|
unexpected drilling conditions;
|
•
|
title problems;
|
•
|
pressure or irregularities in geologic formations;
|
•
|
equipment failures or repairs;
|
•
|
fires, explosions or other accidents;
|
•
|
adverse weather conditions;
|
•
|
reductions in natural gas prices;
|
•
|
security breaches or terroristic acts;
|
•
|
pipeline ruptures;
|
•
|
lack of adequate capacity for treatment or disposal of waste water generated in drilling, completion and production operations;
|
•
|
environmental contamination from surface spillage of fluids used in well drilling, completion or operation including fracturing fluids used in hydraulic fracturing of wells, or other contamination of groundwater or the environment resulting from our use of such fluids; and
|
•
|
unavailability or high cost of drilling rigs, other field services and equipment.
|
•
|
variations in thickness of the layer, or seam, of coal;
|
•
|
amounts of rock and other natural materials intruding into the coal seam and other geological conditions that could affect the stability of the roof and the side walls of the mine;
|
•
|
equipment failures or repairs;
|
•
|
fires, explosions or other accidents;
|
•
|
weather conditions; and
|
•
|
security breaches or terroristic acts.
|
•
|
geological conditions;
|
•
|
changes in governmental regulations and taxation;
|
•
|
the amount and timing of actual production;
|
•
|
assumptions governing future prices;
|
•
|
future operating costs; and
|
•
|
capital costs of drilling, completion and gathering assets.
|
•
|
postretirement medical and life insurance ($761 million);
|
•
|
coal workers' black lung benefits ($126 million);
|
•
|
salaried retirement benefits ($119 million); and
|
•
|
workers' compensation ($90 million).
|
•
|
uncertainties in assessing the value, strengths, and potential profitability of, and identifying the extent of all weaknesses, risks, contingent and other liabilities (including environmental liabilities) of expansion and acquisition opportunities
|
•
|
the potential loss of key customers, management and employees of an acquired business;
|
•
|
the ability to achieve identified operating and financial synergies anticipated to result from an expansion or an acquisition opportunity:
|
•
|
the potential revision of assumptions regarding gas reserves as we acquire more knowledge by operating an acquired gas business:
|
•
|
problems that could arise from the integration of the acquired business;
|
•
|
unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying our rationale for pursuing the expansion or the acquisition opportunity; and
|
•
|
we may have to assume cleanup or reclamation obligations or other unanticipated liabilities in connection with these acquisitions.
|
•
|
increasing our vulnerability to general adverse economic and industry conditions;
|
•
|
requiring us to dedicate a substantial portion of our cash flow from operations to the payment of interest and principal due under our outstanding debt, which will limit our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions, development of our gas and coal reserves or other general corporate requirements;
|
•
|
limiting our flexibility in planning for, or reacting to, changes in our business and in the coal and gas industries;
|
•
|
placing us at a competitive disadvantage compared to our competitors with lower leverage and better access to capital resources; and
|
•
|
limiting our ability to implement our business strategy, including the structuring and formation of a master limited partnership for our thermal coal business and a subsidiary entity for the purpose of owning the metallurgical coal properties and related mining operations.
|
•
|
our production is less than expected;
|
•
|
the counterparties to our contracts fail to perform the contracts; or
|
•
|
the creditworthiness of our counterparties or their guarantors is substantially impaired.
|
ITEM 1B.
|
Unresolved Staff Comments
|
ITEM 2.
|
Properties
|
ITEM 3.
|
Legal Proceedings
|
ITEM 4.
|
Mine Safety and Health Administration Safety Data
|
ITEM 5.
|
Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
|
|
High
|
|
Low
|
|
Dividends
|
||||||
Year Period Ended December 31, 2014
|
|
|
|
|
|
|
|||||||
|
Quarter Ended March 31, 2014
|
|
$
|
41.51
|
|
|
$
|
35.72
|
|
|
$
|
0.0625
|
|
|
Quarter Ended June 30, 2014
|
|
$
|
48.30
|
|
|
$
|
39.08
|
|
|
$
|
0.0625
|
|
|
Quarter Ended September 30, 2014
|
|
$
|
46.61
|
|
|
$
|
35.96
|
|
|
$
|
0.0625
|
|
|
Quarter Ended December 31, 2014
|
|
$
|
42.26
|
|
|
$
|
31.64
|
|
|
$
|
0.0625
|
|
Year Period Ended December 31, 2013
|
|
|
|
|
|
|
|||||||
|
Quarter Ended March 31, 2013
|
|
$
|
34.79
|
|
|
$
|
29.91
|
|
|
$
|
—
|
|
|
Quarter Ended June 30, 2013
|
|
$
|
35.79
|
|
|
$
|
27.10
|
|
|
$
|
0.125
|
|
|
Quarter Ended September 30, 2013
|
|
$
|
35.56
|
|
|
$
|
26.51
|
|
|
$
|
0.125
|
|
|
Quarter Ended December 31, 2013
|
|
$
|
38.42
|
|
|
$
|
33.99
|
|
|
$
|
0.125
|
|
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
||||||
CONSOL Energy Inc.
|
|
100.0
|
|
|
97.9
|
|
|
73.9
|
|
|
65.1
|
|
|
76.4
|
|
|
67.8
|
|
Peer Group
|
|
100.0
|
|
|
104.5
|
|
|
91.3
|
|
|
83.1
|
|
|
105.4
|
|
|
88.2
|
|
S&P 500 Stock Index
|
|
100.0
|
|
|
112.6
|
|
|
110.6
|
|
|
125.4
|
|
|
162.5
|
|
|
181.0
|
|
ITEM 6.
|
Selected Financial Data
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Operating revenues from Continuing Operations
|
|
$
|
3,476,100
|
|
|
$
|
3,120,722
|
|
|
$
|
3,282,350
|
|
|
$
|
4,237,913
|
|
|
$
|
3,559,511
|
|
Income from Continuing Operations
|
|
$
|
168,777
|
|
|
$
|
79,264
|
|
|
$
|
317,959
|
|
|
$
|
681,675
|
|
|
$
|
315,240
|
|
Net Income Attributable to CONSOL Energy Inc. Shareholders
|
|
$
|
163,090
|
|
|
$
|
660,442
|
|
|
$
|
388,470
|
|
|
$
|
632,497
|
|
|
$
|
346,779
|
|
Earnings (Loss) per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from Continuing Operations
|
|
$
|
0.73
|
|
|
$
|
0.35
|
|
|
$
|
1.40
|
|
|
$
|
3.01
|
|
|
$
|
1.41
|
|
(Loss) Income from Discontinued Operations
|
|
(0.02
|
)
|
|
2.54
|
|
|
0.31
|
|
|
(0.22
|
)
|
|
0.20
|
|
|||||
Net Income
|
|
$
|
0.71
|
|
|
$
|
2.89
|
|
|
$
|
1.71
|
|
|
$
|
2.79
|
|
|
$
|
1.61
|
|
Dilutive:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from Continuing Operations
|
|
$
|
0.73
|
|
|
$
|
0.35
|
|
|
$
|
1.39
|
|
|
$
|
2.98
|
|
|
$
|
1.40
|
|
(Loss) Income from Discontinued Operations
|
|
(0.03
|
)
|
|
2.52
|
|
|
0.31
|
|
|
(0.22
|
)
|
|
0.20
|
|
|||||
Net Income
|
|
$
|
0.70
|
|
|
$
|
2.87
|
|
|
$
|
1.70
|
|
|
$
|
2.76
|
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets from Continuing Operations
|
|
$
|
11,759,530
|
|
|
$
|
11,393,667
|
|
|
$
|
10,383,343
|
|
|
$
|
9,952,077
|
|
|
$
|
9,543,457
|
|
Assets from Discontinued Operations
|
|
—
|
|
|
—
|
|
|
2,614,251
|
|
|
2,573,623
|
|
|
2,527,153
|
|
|||||
Total Assets
|
|
$
|
11,759,530
|
|
|
$
|
11,393,667
|
|
|
$
|
12,997,594
|
|
|
$
|
12,525,700
|
|
|
$
|
12,070,610
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-Term Debt from Continuing Operations (including current portion)
|
|
$
|
3,288,894
|
|
|
$
|
3,175,014
|
|
|
$
|
3,185,497
|
|
|
$
|
3,196,455
|
|
|
$
|
3,209,101
|
|
Long-Term Debt from Discontinued Operations (including current portion)
|
|
—
|
|
|
—
|
|
|
2,574
|
|
|
1,659
|
|
|
1,820
|
|
|||||
Total Long-Term Debt (including current portion)
|
|
$
|
3,288,894
|
|
|
$
|
3,175,014
|
|
|
$
|
3,188,071
|
|
|
$
|
3,198,114
|
|
|
$
|
3,210,921
|
|
Cash Dividends Declared Per Share of Common Stock
|
|
$
|
0.250
|
|
|
$
|
0.375
|
|
|
$
|
0.625
|
|
|
$
|
0.425
|
|
|
$
|
0.400
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Gas:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales volumes produced (in billion cubic feet)
|
|
235.7
|
|
|
172.4
|
|
|
156.3
|
|
|
153.5
|
|
|
127.9
|
|
|||||
Average sales price ($ per Mcfe)(A)
|
|
$
|
4.37
|
|
|
$
|
4.30
|
|
|
$
|
4.22
|
|
|
$
|
4.90
|
|
|
$
|
5.83
|
|
Average cost ($ per Mcfe)
|
|
$
|
3.31
|
|
|
$
|
3.51
|
|
|
$
|
3.37
|
|
|
$
|
3.53
|
|
|
$
|
3.54
|
|
Proved reserves (in Bcfe) (B)
|
|
6,828
|
|
|
5,731
|
|
|
3,993
|
|
|
3,480
|
|
|
3,732
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Coal:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tons sold from continuing operations (in thousands)(C)
|
|
32,419
|
|
|
28,776
|
|
|
27,612
|
|
|
32,090
|
|
|
32,280
|
|
|||||
Tons produced from continuing operations (in thousands)
|
|
32,218
|
|
|
28,476
|
|
|
27,178
|
|
|
31,721
|
|
|
31,895
|
|
|||||
Average sales price of tons produced ($ per ton produced)
|
|
$
|
63.03
|
|
|
$
|
69.34
|
|
|
$
|
77.75
|
|
|
$
|
90.10
|
|
|
$
|
73.31
|
|
Average Cost of Goods Sold ($ per ton produced)
|
|
$
|
46.91
|
|
|
$
|
50.78
|
|
|
$
|
53.98
|
|
|
$
|
51.88
|
|
|
$
|
44.37
|
|
Recoverable coal reserves (tons in millions)(D)
|
|
3,238
|
|
|
3,032
|
|
|
4,229
|
|
|
4,314
|
|
|
4,229
|
|
|||||
Number of active mining complexes (at end of period)
|
|
3
|
|
|
4
|
|
|
5
|
|
|
7
|
|
|
7
|
|
(A)
|
Represents average net sales price including the effect of derivative transactions.
|
(B)
|
Represents proved developed and undeveloped gas reserves at period end.
|
(C)
|
Includes sales of coal produced by CONSOL Energy and purchased from third parties. Of the tons sold, CONSOL Energy purchased the following amount from third parties: 0.2 million tons, 0.6 million tons, 0.5 million tons, 0.6 million tons, and 0.2 million tons for the years ended
December 31, 2014
,
2013
,
2012
,
2011
and
2010
, respectively.
|
(D)
|
Represents proven and probable coal reserves at period end, excluding equity affiliates.
|
ITEM 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Record total gas production of 235.7 Bcfe in 2014, 37% higher than 2013.
|
•
|
Record Marcellus Shale production of 111.7 Bcfe in 2014, 93% higher than 2013.
|
•
|
On December 29, 2014 CNX Gas Company LLC, a wholly-owned subsidiary of CONSOL Energy, finalized an agreement with Columbia Energy Ventures to sublease approximately 20,600 acres of Utica Shale gas rights in Greene and Washington Counties in Pennsylvania, and Marshall and Ohio Counties in West Virginia. Consideration of up to
$96,106
will be paid by CONSOL Energy over the next five years as drilling occurs.
|
•
|
CONSOL received $411,596 in cash proceeds from the sales of assets which resulted in a gain on sale of $43,601. These sales included several non-core business assets: our industrial supplies subsidiary, coal reserves in the Illinois Basin, surface properties in Illinois, a 50% interest in an equity affiliate and a 50% interest in Utica Shale acres to our joint venture partner, Noble Energy. See Note 3 - Acquisitions and Dispositions in the Notes to Audited Consolidated Financial Statements in Item 8 of this Form 10-K for more information.
|
•
|
On September 30, 2014, CONE Midstream Partners, LP (the Partnership) closed its initial public offering of 20,125,000 common units representing limited partnership interests at a price to the public of $22.00 per unit. Of the proceeds received, $204 million was distributed to CNX Gas Company LLC.
|
•
|
Harvey Mine began longwall mining in March 2014.
|
•
|
Our 2015 annual gas production is expected to be between 300 - 310 Bcfe with annual production growth of 30% through 2016.
|
•
|
Our 2015 gas capital investment is expected to be $1.0 billion.
|
•
|
Our 2015 coal production is expected to be between 30.5 - 33.0 million tons.
|
•
|
Our 2015 coal and other capital investment is expected to be $220 million.
|
•
|
In December 2014, CONSOL Energy announced that its Board of Directors authorized management to pursue the formation of a master limited partnership (MLP) for the Company’s thermal coal business, which would own interests in CONSOL Energy’s thermal coal properties and related mining operations located in Pennsylvania, including its Bailey Mine, Enlow Fork Mine, Harvey Mine and the related preparation plant. CONSOL Energy also announced that its Board of Directors authorized management to separately pursue the structuring and formation of a subsidiary entity for the purpose of owning CONSOL Energy’s metallurgical coal properties and related mining operations, with a view to conducting an initial public offering of up to 20% of the subsidiary’s equity. The subsidiary’s assets would include CONSOL Energy’s Buchanan Mine and related preparation plant and its interest in its Western Allegheny Energy joint venture.
|
•
|
In December 2014, CONSOL Energy’s Board of Directors approved a stock repurchase program under which CONSOL Energy may purchase from time to time up to $250,000 of its common stock over the next two years.
|
|
|
For the Years Ended December 31,
|
|||||||||||||
in thousands (unless noted)
|
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change |
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|||||||
NGLs:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
15,475
|
|
|
2,628
|
|
|
12,847
|
|
|
488.9
|
%
|
|||
Sales Volume (Mbbls)
|
|
2,579
|
|
|
438
|
|
|
2,141
|
|
|
488.8
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
35.70
|
|
|
$
|
53.76
|
|
|
$
|
(18.06
|
)
|
|
(33.6
|
)%
|
Gross Revenue
|
|
$
|
92,136
|
|
|
$
|
23,541
|
|
|
$
|
68,595
|
|
|
291.4
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
681
|
|
|
634
|
|
|
47
|
|
|
7.4
|
%
|
|||
Sales Volume (Mbbls)
|
|
114
|
|
|
106
|
|
|
8
|
|
|
7.5
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
89.10
|
|
|
$
|
89.58
|
|
|
$
|
(0.48
|
)
|
|
(0.5
|
)%
|
Gross Revenue
|
|
$
|
10,108
|
|
|
$
|
9,471
|
|
|
$
|
637
|
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
3,298
|
|
|
382
|
|
|
2,916
|
|
|
763.4
|
%
|
|||
Sales Volume (Mbbls)
|
|
550
|
|
|
64
|
|
|
486
|
|
|
759.4
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
66.96
|
|
|
$
|
81.06
|
|
|
$
|
(14.10
|
)
|
|
(17.4
|
)%
|
Gross Revenue
|
|
$
|
36,808
|
|
|
$
|
5,156
|
|
|
$
|
31,652
|
|
|
613.9
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
216,260
|
|
|
168,737
|
|
|
47,523
|
|
|
28.2
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
4.02
|
|
|
$
|
3.72
|
|
|
$
|
0.30
|
|
|
8.1
|
%
|
Hedging Impact ($/Mcf)
|
|
$
|
0.11
|
|
|
$
|
0.45
|
|
|
$
|
(0.34
|
)
|
|
(75.6
|
)%
|
Gross Revenue
|
|
$
|
891,522
|
|
|
$
|
702,700
|
|
|
$
|
188,822
|
|
|
26.9
|
%
|
•
|
The improvement in the unit costs is primarily due to the
36.7%
increase in volumes in the period-to-period comparison and the shift to lower cost Marcellus and Utica Shale production. Marcellus production made up
47.4%
of natural gas and liquid sales volume for the year ended
December 31, 2014
compared to
33.6%
in the year ended
December 31, 2013
.
|
•
|
Lifting costs per unit decreased in the period-to-period comparison due to the increase in sales volumes. The decrease was offset, in part, by an increase in total dollars relating to higher salt water disposal, well site maintenance costs, and costs related to wells operated by our joint-venture partners.
|
•
|
Gathering expense per unit also decreased in the period-to-period comparison due to the increase in sales volumes. The decrease in unit costs was partially offset by an increase in total dollars related to an increase in firm transportation costs and increased processing fees associated with natural gas liquids (NGLs).
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price Per Ton Sold
|
$
|
63.03
|
|
|
$
|
69.34
|
|
|
$
|
(6.31
|
)
|
|
(9.1
|
)%
|
Total Costs Per Ton Sold
|
46.91
|
|
|
50.78
|
|
|
(3.87
|
)
|
|
(7.6
|
)%
|
|||
Margin
|
$
|
16.12
|
|
|
$
|
18.56
|
|
|
$
|
(2.44
|
)
|
|
(13.1
|
)%
|
|
For the Years Ended December 31,
|
|||||||||||||
(in millions)
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Continuing Operations General and Administrative Expenses
|
$
|
110
|
|
|
$
|
80
|
|
|
$
|
30
|
|
|
37.5
|
%
|
Discontinued Operations General and Administrative Expenses
|
—
|
|
|
39
|
|
|
(39
|
)
|
|
(100.0
|
)%
|
|||
Total Company General and Administrative Expense
|
$
|
110
|
|
|
$
|
119
|
|
|
$
|
(9
|
)
|
|
(7.6
|
)%
|
|
For the Year Ended
|
|
Difference to Year Ended
|
||||||||||||||||||||||||||||||||||||
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||||||||
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
Gas
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
Gas
|
||||||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Produced
|
$
|
473
|
|
|
$
|
88
|
|
|
$
|
344
|
|
|
$
|
123
|
|
|
$
|
1,028
|
|
|
$
|
221
|
|
|
$
|
84
|
|
|
$
|
8
|
|
|
$
|
(23
|
)
|
|
$
|
290
|
|
Related Party
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total Outside Sales
|
473
|
|
|
88
|
|
|
347
|
|
|
123
|
|
|
1,031
|
|
|
221
|
|
|
84
|
|
|
8
|
|
|
(23
|
)
|
|
290
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|
113
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
55
|
|
||||||||||
Total Revenue and Other Income
|
473
|
|
|
88
|
|
|
347
|
|
|
327
|
|
|
1,235
|
|
|
221
|
|
|
84
|
|
|
8
|
|
|
53
|
|
|
366
|
|
||||||||||
Lifting
|
26
|
|
|
16
|
|
|
37
|
|
|
39
|
|
|
118
|
|
|
6
|
|
|
13
|
|
|
—
|
|
|
2
|
|
|
21
|
|
||||||||||
Ad Valorem, Severance, and Other Taxes
|
17
|
|
|
1
|
|
|
12
|
|
|
10
|
|
|
40
|
|
|
8
|
|
|
1
|
|
|
3
|
|
|
(1
|
)
|
|
11
|
|
||||||||||
Gathering
|
110
|
|
|
7
|
|
|
108
|
|
|
33
|
|
|
258
|
|
|
60
|
|
|
7
|
|
|
(6
|
)
|
|
(4
|
)
|
|
57
|
|
||||||||||
Gas Direct Administrative, Selling & Other
|
36
|
|
|
4
|
|
|
10
|
|
|
5
|
|
|
55
|
|
|
10
|
|
|
2
|
|
|
2
|
|
|
(8
|
)
|
|
6
|
|
||||||||||
Depreciation, Depletion and Amortization
|
132
|
|
|
19
|
|
|
88
|
|
|
75
|
|
|
314
|
|
|
65
|
|
|
16
|
|
|
(2
|
)
|
|
3
|
|
|
82
|
|
||||||||||
General & Administration
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Exploration and Other Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
(38
|
)
|
||||||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
87
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||||||
Total Exploration and Production Costs
|
321
|
|
|
47
|
|
|
255
|
|
|
413
|
|
|
1,036
|
|
|
149
|
|
|
39
|
|
|
(3
|
)
|
|
(11
|
)
|
|
174
|
|
||||||||||
Interest Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total E&P Segment Costs
|
321
|
|
|
47
|
|
|
255
|
|
|
422
|
|
|
1,045
|
|
|
149
|
|
|
39
|
|
|
(3
|
)
|
|
(11
|
)
|
|
174
|
|
||||||||||
Earnings Before Noncontrolling Interest and Income Tax
|
$
|
152
|
|
|
$
|
41
|
|
|
$
|
92
|
|
|
$
|
(95
|
)
|
|
$
|
190
|
|
|
$
|
72
|
|
|
$
|
45
|
|
|
$
|
11
|
|
|
$
|
64
|
|
|
$
|
192
|
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
99.4
|
|
|
55.0
|
|
|
44.4
|
|
|
80.7
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
10.9
|
|
|
2.5
|
|
|
8.4
|
|
|
336.0
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
1.4
|
|
|
0.3
|
|
|
1.1
|
|
|
366.7
|
%
|
|||
Total Marcellus Gas Sales Volumes (Bcfe)*
|
111.7
|
|
|
57.8
|
|
|
53.9
|
|
|
93.3
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.83
|
|
|
$
|
3.77
|
|
|
$
|
0.06
|
|
|
1.6
|
%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
(0.17
|
)
|
|
(53.1
|
)%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
5.77
|
|
|
$
|
9.09
|
|
|
$
|
(3.32
|
)
|
|
(36.5
|
)%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
10.47
|
|
|
$
|
13.73
|
|
|
$
|
(3.26
|
)
|
|
(23.7
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Marcellus sales (per Mcfe)
|
$
|
4.24
|
|
|
$
|
4.35
|
|
|
$
|
(0.11
|
)
|
|
(2.5
|
)%
|
Average Marcellus lifting costs (per Mcfe)
|
$
|
0.24
|
|
|
$
|
0.35
|
|
|
$
|
(0.11
|
)
|
|
(31.4
|
)%
|
Average Marcellus ad valorem, severance, and other taxes (per Mcfe)
|
$
|
0.16
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
—
|
%
|
Average Marcellus gathering costs (per Mcfe)
|
$
|
0.98
|
|
|
$
|
0.86
|
|
|
$
|
0.12
|
|
|
14.0
|
%
|
Average Marcellus direct administrative and selling (per Mcfe)
|
$
|
0.32
|
|
|
$
|
0.45
|
|
|
$
|
(0.13
|
)
|
|
(28.9
|
)%
|
Average Marcellus depreciation, depletion and amortization costs (per Mcfe)
|
$
|
1.18
|
|
|
$
|
1.16
|
|
|
$
|
0.02
|
|
|
1.7
|
%
|
Total Average Marcellus costs (per Mcfe)
|
$
|
2.88
|
|
|
$
|
2.98
|
|
|
$
|
(0.10
|
)
|
|
(3.4
|
)%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
1.36
|
|
|
$
|
1.37
|
|
|
$
|
(0.01
|
)
|
|
(0.7
|
)%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Utica Gas Sales Volumes (Bcf)
|
10.2
|
|
|
0.5
|
|
|
9.7
|
|
|
1,940.0
|
%
|
|||
NGL Sales Volumes (Bcfe)*
|
4.6
|
|
|
0.1
|
|
|
4.5
|
|
|
4,500.0
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
1.9
|
|
|
0.1
|
|
|
1.8
|
|
|
1,800.0
|
%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
16.7
|
|
|
0.7
|
|
|
16.0
|
|
|
2,285.7
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.46
|
|
|
$
|
3.83
|
|
|
$
|
(0.37
|
)
|
|
(9.7
|
)%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.12
|
|
|
$
|
—
|
|
|
$
|
0.12
|
|
|
100.0
|
%
|
Average Sales Price - NGL (Mcfe)*
|
$
|
6.39
|
|
|
$
|
6.09
|
|
|
$
|
0.30
|
|
|
4.9
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
11.69
|
|
|
$
|
12.78
|
|
|
$
|
(1.09
|
)
|
|
(8.5
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica sales price (per Mcfe)
|
$
|
5.27
|
|
|
$
|
5.80
|
|
|
$
|
(0.53
|
)
|
|
(9.1
|
)%
|
Average Utica lifting costs (per Mcfe)
|
$
|
0.94
|
|
|
$
|
3.47
|
|
|
$
|
(2.53
|
)
|
|
(72.9
|
)%
|
Average Utica ad valorem, severance, and other taxes (per Mcfe)
|
$
|
0.08
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.75
|
|
|
111.9
|
%
|
Average Utica gathering costs (per Mcfe)
|
$
|
0.45
|
|
|
$
|
0.53
|
|
|
$
|
(0.08
|
)
|
|
(15.1
|
)%
|
Average Utica direct administrative and selling (per Mcfe)
|
$
|
0.24
|
|
|
$
|
2.79
|
|
|
$
|
(2.55
|
)
|
|
(91.4
|
)%
|
Average Utica depreciation, depletion and amortization costs (per Mcfe)
|
$
|
1.11
|
|
|
$
|
4.96
|
|
|
$
|
(3.85
|
)
|
|
(77.6
|
)%
|
Total Average Utica costs (per Mcfe)
|
$
|
2.82
|
|
|
$
|
11.08
|
|
|
$
|
(8.26
|
)
|
|
(74.5
|
)%
|
Average Margin for Utica (per Mcfe)
|
$
|
2.45
|
|
|
$
|
(5.28
|
)
|
|
$
|
7.73
|
|
|
146.4
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
79.5
|
|
|
82.9
|
|
|
(3.4
|
)
|
|
(4.1
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
4.32
|
|
|
$
|
3.69
|
|
|
$
|
0.63
|
|
|
17.1
|
%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.05
|
|
|
$
|
0.40
|
|
|
$
|
(0.35
|
)
|
|
(87.5
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM sales price (per Mcf)
|
$
|
4.37
|
|
|
$
|
4.09
|
|
|
$
|
0.28
|
|
|
6.8
|
%
|
Average CBM lifting costs (per Mcf)
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.03
|
|
|
6.8
|
%
|
Average CBM ad valorem, severance, and other taxes (per Mcf)
|
$
|
0.15
|
|
|
$
|
0.10
|
|
|
$
|
0.05
|
|
|
50.0
|
%
|
Average CBM gathering costs (per Mcf)
|
$
|
1.35
|
|
|
$
|
1.37
|
|
|
$
|
(0.02
|
)
|
|
(1.5
|
)%
|
Average CBM direct administrative and selling (per Mcf)
|
$
|
0.13
|
|
|
$
|
0.10
|
|
|
$
|
0.03
|
|
|
30.0
|
%
|
Average CBM depreciation, depletion and amortization costs (per Mcf)
|
$
|
1.12
|
|
|
$
|
1.10
|
|
|
$
|
0.02
|
|
|
1.8
|
%
|
Total Average CBM costs (per Mcf)
|
$
|
3.22
|
|
|
$
|
3.11
|
|
|
$
|
0.11
|
|
|
3.5
|
%
|
Average Margin for CBM (per Mcf)
|
$
|
1.15
|
|
|
$
|
0.98
|
|
|
$
|
0.17
|
|
|
17.3
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
27.1
|
|
|
30.3
|
|
|
(3.2
|
)
|
|
(10.6
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.7
|
|
|
0.6
|
|
|
0.1
|
|
|
16.7
|
%
|
|||
Total Other Sales Volumes (Bcfe)*
|
27.8
|
|
|
30.9
|
|
|
(3.1
|
)
|
|
(10.0
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
4.03
|
|
|
$
|
3.70
|
|
|
$
|
0.33
|
|
|
8.9
|
%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.11
|
|
|
$
|
0.81
|
|
|
$
|
(0.70
|
)
|
|
(86.4
|
)%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
14.81
|
|
|
$
|
14.78
|
|
|
$
|
0.03
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other sales price (per Mcfe)
|
$
|
4.39
|
|
|
$
|
4.72
|
|
|
$
|
(0.33
|
)
|
|
(7.0
|
)%
|
Average Other lifting costs (per Mcfe)
|
$
|
1.39
|
|
|
$
|
1.21
|
|
|
$
|
0.18
|
|
|
14.9
|
%
|
Average Other ad valorem, severance, and other taxes (per Mcfe)
|
$
|
0.28
|
|
|
$
|
0.36
|
|
|
$
|
(0.08
|
)
|
|
(22.2
|
)%
|
Average Other gathering costs (per Mcfe)
|
$
|
1.21
|
|
|
$
|
1.19
|
|
|
$
|
0.02
|
|
|
1.7
|
%
|
Average Other direct administrative and selling (per Mcfe)
|
$
|
0.19
|
|
|
$
|
0.41
|
|
|
$
|
(0.22
|
)
|
|
(53.7
|
)%
|
Average Other depreciation, depletion and amortization costs (per Mcfe)
|
$
|
2.60
|
|
|
$
|
2.22
|
|
|
$
|
0.38
|
|
|
17.1
|
%
|
Total Average Other costs (per Mcfe)
|
$
|
5.67
|
|
|
$
|
5.39
|
|
|
$
|
0.28
|
|
|
5.2
|
%
|
Average Margin for Other (per Mcfe)
|
$
|
(1.28
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(0.61
|
)
|
|
(91.0
|
)%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
19.9
|
|
|
15.3
|
|
|
4.6
|
|
|
30.1
|
%
|
|||
Average Sales Price per thousand cubic feet
|
$
|
4.14
|
|
|
$
|
4.13
|
|
|
$
|
0.01
|
|
|
0.2
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Sales Volumes (in billion cubic feet)
|
1.9
|
|
|
1.6
|
|
|
0.3
|
|
|
18.8
|
%
|
|||
Average Sales Price per thousand cubic feet
|
$
|
4.65
|
|
|
$
|
4.12
|
|
|
$
|
0.53
|
|
|
12.9
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Gain On Sale of Assets
|
$
|
46
|
|
|
$
|
21
|
|
|
$
|
25
|
|
|
119.0
|
%
|
Gathering Revenue
|
30
|
|
|
7
|
|
|
23
|
|
|
328.6
|
%
|
|||
Equity in Earnings of Affiliates
|
32
|
|
|
15
|
|
|
17
|
|
|
113.3
|
%
|
|||
Interest Income
|
—
|
|
|
13
|
|
|
(13
|
)
|
|
(100.0
|
)%
|
|||
Other
|
5
|
|
|
2
|
|
|
3
|
|
|
150.0
|
%
|
|||
Total Other Income
|
$
|
113
|
|
|
$
|
58
|
|
|
$
|
55
|
|
|
94.8
|
%
|
•
|
Gain on sale of assets increased
$25
million primarily due to the sale of Utica rights in Marshall County, WV to Noble Energy, which closed in December 2014 and resulted in proceeds and a pre-tax gain of $25 million.
|
•
|
Gathering revenue increased
$23
million primarily due to an increase in revenue related to certain gathering arrangements.
|
•
|
Earnings from our equity affiliates increased
$17
million primarily due to an increase in earnings from CONE Midstream Partners, LP. See Note 27 - Related Party Transactions of the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional information.
|
•
|
Interest income decreased $
13
million primarily due to the 2013 collection of the final installment on the notes receivable from the 2011 Noble Energy joint venture transaction.
|
•
|
The remaining $
3
million increase relates to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
19.9
|
|
|
15.3
|
|
|
4.6
|
|
|
30.1
|
%
|
|||
Average Cost per thousand cubic feet sold
|
$
|
3.51
|
|
|
$
|
3.47
|
|
|
$
|
0.04
|
|
|
1.2
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Title Defects
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
(23
|
)
|
|
(100.0
|
)%
|
Dry Hole Expense
|
2
|
|
|
9
|
|
|
(7
|
)
|
|
(77.8
|
)%
|
|||
Lease Expiration Costs
|
9
|
|
|
10
|
|
|
(1
|
)
|
|
(10.0
|
)%
|
|||
Land Rentals
|
5
|
|
|
6
|
|
|
(1
|
)
|
|
(16.7
|
)%
|
|||
Seismic Activity
|
4
|
|
|
2
|
|
|
2
|
|
|
100.0
|
%
|
|||
Other
|
3
|
|
|
11
|
|
|
(8
|
)
|
|
(72.7
|
)%
|
|||
Total Exploration and Production Related Other Costs
|
$
|
23
|
|
|
$
|
61
|
|
|
$
|
(38
|
)
|
|
(62.3
|
)%
|
•
|
CONSOL Energy, working in collaboration with Noble Energy, conceded title defects on acreage which had a book value of
$23
million for the year ended
December 31, 2013
.
|
•
|
Dry hole costs decreased
$7
million due to various transaction that occurred throughout both periods, none of which were individually material.
|
•
|
Lease expiration costs relate to locations where CONSOL Energy allowed the primary lease term to expire because of unfavorable drilling economics. The $
1
million decrease is due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Land Rentals decreased $
1
million in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Seismic Activity increased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Other expenses decreased $
8
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Litigation Settlements
|
$
|
(5
|
)
|
|
$
|
3
|
|
|
$
|
(8
|
)
|
|
(266.7
|
)%
|
Stock-based Compensation
|
17
|
|
|
24
|
|
|
(7
|
)
|
|
(29.2
|
)%
|
|||
Bank Fees
|
4
|
|
|
7
|
|
|
(3
|
)
|
|
(42.9
|
)%
|
|||
Unutilized Firm Transportation and Processing Fees
|
38
|
|
|
36
|
|
|
2
|
|
|
5.6
|
%
|
|||
Short-term Incentive Compensation
|
23
|
|
|
20
|
|
|
3
|
|
|
15.0
|
%
|
|||
Other
|
10
|
|
|
6
|
|
|
4
|
|
|
66.7
|
%
|
|||
Total Other Corporate Expenses
|
$
|
87
|
|
|
$
|
96
|
|
|
$
|
(9
|
)
|
|
(9.4
|
)%
|
•
|
Litigation settlements decreased
$8
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Stock-based compensation decreased
$7
million in the period-to-period comparison primarily due to a reduction in non-cash amortization expense and less accelerated expense for retiree eligible employees under our current plans.
|
•
|
Bank fees decreased
$3
million due to various items that occurred throughout both periods, none of which were individually material.
|
•
|
Unutilized firm transportation and processing fees represent pipeline transportation capacity the E&P segment has obtained to enable gas production to flow uninterrupted as sales volumes increase, as well as additional processing capacity for NGLs. The
$2
million increase was primarily 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, among other things, safety, production, compliance and unit costs. Short-term incentive compensation expense increased
$3
million in the period-to-period comparison due to higher projected payouts.
|
•
|
Other corporate related expenses increased
$4
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Year Ended
|
|
Difference to Year Ended
|
||||||||||||||||||||||||||||
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
Pennsylvania Operations
|
|
Virginia Operations
|
|
Other
Coal
|
|
Total
Coal
|
|
Pennsylvania Operations
|
|
Virginia Operations
|
|
Other
Coal
|
|
Total
Coal
|
||||||||||||||||
Coal Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Produced Coal
|
$
|
1,617
|
|
|
$
|
297
|
|
|
$
|
129
|
|
|
$
|
2,043
|
|
|
$
|
260
|
|
|
$
|
(153
|
)
|
|
$
|
(59
|
)
|
|
$
|
48
|
|
Purchased Coal
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
||||||||
Total Coal Sales
|
1,617
|
|
|
297
|
|
|
138
|
|
|
2,052
|
|
|
260
|
|
|
(153
|
)
|
|
(73
|
)
|
|
34
|
|
||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||
Freight Revenue
|
17
|
|
|
1
|
|
|
10
|
|
|
28
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(7
|
)
|
||||||||
Miscellaneous Other Income
|
38
|
|
|
—
|
|
|
101
|
|
|
139
|
|
|
32
|
|
|
(5
|
)
|
|
51
|
|
|
78
|
|
||||||||
Gain on Sale of Assets
|
1
|
|
|
—
|
|
|
28
|
|
|
29
|
|
|
1
|
|
|
(5
|
)
|
|
(13
|
)
|
|
(17
|
)
|
||||||||
Total Revenue and Other Income
|
1,673
|
|
|
298
|
|
|
318
|
|
|
2,289
|
|
|
292
|
|
|
(166
|
)
|
|
(40
|
)
|
|
86
|
|
||||||||
Operating Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating Costs
|
881
|
|
|
188
|
|
|
106
|
|
|
1,175
|
|
|
116
|
|
|
(64
|
)
|
|
(28
|
)
|
|
24
|
|
||||||||
Direct Administrative and Selling
|
31
|
|
|
6
|
|
|
3
|
|
|
40
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
5
|
|
||||||||
Total Royalty/Production Taxes
|
71
|
|
|
18
|
|
|
10
|
|
|
99
|
|
|
16
|
|
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
||||||||
Depreciation, Depletion and Amortization
|
160
|
|
|
39
|
|
|
7
|
|
|
206
|
|
|
40
|
|
|
(3
|
)
|
|
(6
|
)
|
|
31
|
|
||||||||
Total Operating Costs and Expenses
|
1,143
|
|
|
251
|
|
|
126
|
|
|
1,520
|
|
|
176
|
|
|
(75
|
)
|
|
(41
|
)
|
|
60
|
|
||||||||
Other Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other Costs
|
18
|
|
|
6
|
|
|
151
|
|
|
175
|
|
|
(5
|
)
|
|
(2
|
)
|
|
(13
|
)
|
|
(20
|
)
|
||||||||
Direct Administrative
|
1
|
|
|
—
|
|
|
3
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||||
Total Royalty/Production Taxes
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Depreciation, Depletion and Amortization
|
2
|
|
|
8
|
|
|
39
|
|
|
49
|
|
|
1
|
|
|
(5
|
)
|
|
1
|
|
|
(3
|
)
|
||||||||
Total Other Costs and Expenses
|
21
|
|
|
14
|
|
|
195
|
|
|
230
|
|
|
(4
|
)
|
|
(7
|
)
|
|
(23
|
)
|
|
(34
|
)
|
||||||||
General and Administrative Expense
|
26
|
|
|
9
|
|
|
10
|
|
|
45
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
5
|
|
||||||||
Other Corporate Expenses
|
39
|
|
|
9
|
|
|
7
|
|
|
55
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Freight Expense
|
17
|
|
|
1
|
|
|
10
|
|
|
28
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(7
|
)
|
||||||||
Total Costs
|
1,246
|
|
|
284
|
|
|
348
|
|
|
1,878
|
|
|
175
|
|
|
(87
|
)
|
|
(65
|
)
|
|
23
|
|
||||||||
Earnings (Loss) Before Income Taxes
|
$
|
427
|
|
|
$
|
14
|
|
|
$
|
(30
|
)
|
|
$
|
411
|
|
|
$
|
117
|
|
|
$
|
(79
|
)
|
|
$
|
25
|
|
|
$
|
63
|
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Operations Tons Sold (in millions)
|
26.1
|
|
|
21.2
|
|
|
4.9
|
|
|
23.1
|
%
|
|||
Average Sales Price Per PA Operations Ton Sold
|
$
|
61.88
|
|
|
$
|
63.93
|
|
|
$
|
(2.05
|
)
|
|
(3.2
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
33.70
|
|
|
$
|
36.13
|
|
|
$
|
(2.43
|
)
|
|
(6.7
|
%)
|
Total Direct Administration and Selling Costs Per Ton Sold
|
1.20
|
|
|
1.26
|
|
|
(0.06
|
)
|
|
(4.8
|
%)
|
|||
Total Royalty/Production Taxes Per Ton Sold
|
2.72
|
|
|
2.58
|
|
|
0.14
|
|
|
5.4
|
%
|
|||
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
6.13
|
|
|
5.58
|
|
|
0.55
|
|
|
9.9
|
%
|
|||
Total Costs Per PA Operations Ton Sold
|
$
|
43.75
|
|
|
$
|
45.55
|
|
|
$
|
(1.80
|
)
|
|
(4.0
|
%)
|
Average Margin Per PA Operations Ton Sold
|
$
|
18.13
|
|
|
$
|
18.38
|
|
|
$
|
(0.25
|
)
|
|
(1.4
|
%)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Coal Contract Buyout
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
30
|
|
Rental/Royalty Income
|
|
3
|
|
|
1
|
|
|
2
|
|
|||
Business Interruption Proceeds- Bailey Mine Belt
|
|
—
|
|
|
5
|
|
|
(5
|
)
|
|||
Other
|
|
5
|
|
|
—
|
|
|
5
|
|
|||
Total Miscellaneous Other Income
|
|
$
|
38
|
|
|
$
|
6
|
|
|
$
|
32
|
|
•
|
For the year ended
December 31, 2014
, $
30
million of income was related to a coal customer contract buyout. The discontinued contract was a long term contract that created pricing risks for both parties. The parties agreed to an amicable settlement. No such transactions were entered into in the year ended
December 31, 2013
.
|
•
|
Rental/Royalty income increased $
2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Business interruption proceeds of $
5
million were received in the prior year-to-date period related to the 2012 Bailey Mine Belt Conveyor accident.
|
•
|
Other income increased $
5
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Supplies Expense
|
|
3
|
|
|
9
|
|
|
(6
|
)
|
|||
Property and Other Taxes
|
|
2
|
|
|
2
|
|
|
—
|
|
|||
Other
|
|
13
|
|
|
12
|
|
|
1
|
|
|||
Total Other Costs
|
|
$
|
18
|
|
|
$
|
23
|
|
|
$
|
(5
|
)
|
•
|
Supplies expense decreased $
6
million primarily due to the prior year-to-date period including additional supplies needed for repairs related to the 2012 Bailey Mine Belt Conveyor accident which was not included in active mining costs.
|
•
|
Property and other taxes remained consistent in the period-to-period comparison.
|
•
|
Other expense increased $
1
million due to various items that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced VA Operations Tons Sold (in millions)
|
4.1
|
|
|
4.9
|
|
|
(0.8
|
)
|
|
(16.3
|
%)
|
|||
Average Sales Price Per VA Operations Ton Sold
|
$
|
71.80
|
|
|
$
|
92.43
|
|
|
$
|
(20.63
|
)
|
|
(22.3
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
45.29
|
|
|
$
|
51.54
|
|
|
$
|
(6.25
|
)
|
|
(12.1
|
%)
|
Total Direct Administrative and Selling Costs Per Ton Sold
|
1.42
|
|
|
1.24
|
|
|
0.18
|
|
|
14.5
|
%
|
|||
Total Royalty/Production Taxes Per Ton Sold
|
4.33
|
|
|
5.50
|
|
|
(1.17
|
)
|
|
(21.3
|
%)
|
|||
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
9.63
|
|
|
8.71
|
|
|
0.92
|
|
|
10.6
|
%
|
|||
Total Costs Per VA Operations Ton Sold
|
$
|
60.67
|
|
|
$
|
66.99
|
|
|
$
|
(6.32
|
)
|
|
(9.4
|
%)
|
Average Margin Per VA Operations Ton Sold
|
$
|
11.13
|
|
|
$
|
25.44
|
|
|
$
|
(14.31
|
)
|
|
(56.3
|
%)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Idle Mine Costs
|
|
6
|
|
|
6
|
|
|
—
|
|
|||
Other
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Total Other Costs
|
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
(2
|
)
|
•
|
Idle mine costs are costs related to the temporary idling of the Amonate Complex which remained consistent year over year.
|
•
|
Other expense decreased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced Other Operations Tons Sold (in millions)
|
2.2
|
|
|
2.7
|
|
|
(0.5
|
)
|
|
(18.5
|
%)
|
|||
Average Sales Price Per Other Operations Ton Sold
|
$
|
60.12
|
|
|
$
|
70.22
|
|
|
$
|
(10.10
|
)
|
|
(14.4
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
49.54
|
|
|
$
|
47.95
|
|
|
$
|
1.59
|
|
|
3.3
|
%
|
Total Direct Administration and Selling Costs Per Ton Sold
|
1.14
|
|
|
1.03
|
|
|
0.11
|
|
|
10.7
|
%
|
|||
Total Royalty/Production Taxes Per Ton Sold
|
4.82
|
|
|
7.80
|
|
|
(2.98
|
)
|
|
(38.2
|
%)
|
|||
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
3.33
|
|
|
5.98
|
|
|
(2.65
|
)
|
|
(44.3
|
%)
|
|||
Total Costs Per Other Operations Ton Sold
|
$
|
58.83
|
|
|
$
|
62.76
|
|
|
$
|
(3.93
|
)
|
|
(6.3
|
%)
|
Average Margin Per Other Operations Ton Sold
|
$
|
1.29
|
|
|
$
|
7.46
|
|
|
$
|
(6.17
|
)
|
|
(82.7
|
%)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Rental Income
|
|
$
|
42
|
|
|
$
|
1
|
|
|
$
|
41
|
|
Land Rental Income
|
|
9
|
|
|
5
|
|
|
4
|
|
|||
Royalty Income
|
|
20
|
|
|
17
|
|
|
3
|
|
|||
Equity in Earnings of Affiliates
|
|
19
|
|
|
18
|
|
|
1
|
|
|||
Other
|
|
11
|
|
|
9
|
|
|
2
|
|
|||
Total Miscellaneous Other Income
|
|
$
|
101
|
|
|
$
|
50
|
|
|
$
|
51
|
|
•
|
Rental income increased $
41
million primarily due to equipment subleased to a third-party. These arrangements began in December 2013.
|
•
|
Land rental income primarily consists of income related to the sale of right of ways on property that CONSOL Energy owns. The $
4
million increase was due to an increase in land activity in the period-to-period comparison.
|
•
|
Royalty income increased $
3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Equity in earnings of affiliates increased $
1
million due to various transactions completed by our equity partners, none of which were individually material.
|
•
|
Other increased $
2
million due to various activities that occurred in the current period, none of which were individually material.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Purchased Coal
|
|
$
|
14
|
|
|
$
|
43
|
|
|
$
|
(29
|
)
|
Closed and Idle Mines
|
|
55
|
|
|
67
|
|
|
(12
|
)
|
|||
Coal Terminal Operations
|
|
25
|
|
|
31
|
|
|
(6
|
)
|
|||
Coal Reserve Holding Costs
|
|
11
|
|
|
11
|
|
|
—
|
|
|||
Lease Rental Expense
|
|
30
|
|
|
—
|
|
|
30
|
|
|||
Other
|
|
16
|
|
|
12
|
|
|
4
|
|
|||
Total Other Costs
|
|
$
|
151
|
|
|
$
|
164
|
|
|
$
|
(13
|
)
|
•
|
Purchased coal costs decreased $
29
million due to lower volumes of coal that needed to be purchased to fulfill various contracts.
|
•
|
Closed and idle mine costs decreased approximately $
12
million for the year ended
December 31, 2014
compared to the year ended
December 31, 2013
. This was due to a $14 million decrease in the asset retirement obligation, primarily at the Fola Mining Complex. The decrease was offset, in part, by a $2 million increase in various changes in the operational status of other mines, between idled and operating throughout both periods, none of which were individually material.
|
•
|
Coal terminal operations costs decreased $
6
million due to decreased thru-put volumes in the current year.
|
•
|
Coal reserve holding costs which primarily consists of property and other taxes, remained consistent in the period-to-period comparison.
|
•
|
Lease rental expense increased $
30
million primarily due to equipment leases that were subleased to a third-party. The third-party subleases began in December 2013.
|
•
|
Other expenses related to the Other Coal segment increased $
4
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Sales—Outside
|
$
|
235
|
|
|
$
|
217
|
|
|
$
|
18
|
|
|
8.3
|
%
|
Other Income
|
2
|
|
|
15
|
|
|
(13
|
)
|
|
(86.7
|
)%
|
|||
(Loss) on Sale of Assets
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
|
(100.0
|
)%
|
|||
Total Revenue
|
206
|
|
|
232
|
|
|
(26
|
)
|
|
(11.2
|
)%
|
|||
Miscellaneous Operating Expense
|
308
|
|
|
315
|
|
|
(7
|
)
|
|
(2.2
|
)%
|
|||
Depreciation, Depletion & Amortization
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
(33.3
|
)%
|
|||
Loss on Debt Extinguishment
|
95
|
|
|
—
|
|
|
95
|
|
|
100.0
|
%
|
|||
Interest Expense
|
215
|
|
|
211
|
|
|
4
|
|
|
1.9
|
%
|
|||
Total Costs
|
620
|
|
|
529
|
|
|
91
|
|
|
17.2
|
%
|
|||
Loss Before Income Tax
|
(414
|
)
|
|
(297
|
)
|
|
(117
|
)
|
|
(39.4
|
)%
|
|||
Income Tax
|
14
|
|
|
(33
|
)
|
|
47
|
|
|
142.4
|
%
|
|||
Net Loss
|
$
|
(428
|
)
|
|
$
|
(264
|
)
|
|
$
|
(164
|
)
|
|
(62.1
|
)%
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Pennsylvania Turnpike Settlement
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
(9
|
)
|
Interest Income
|
|
2
|
|
|
4
|
|
|
(2
|
)
|
|||
Equity in Earnings of Affiliates
|
|
(1
|
)
|
|
1
|
|
|
(2
|
)
|
|||
Other
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
Total Other Income
|
|
$
|
2
|
|
|
$
|
15
|
|
|
$
|
(13
|
)
|
•
|
Pennsylvania Turnpike Settlement relates to mediation with the PA Turnpike Commission that was settled for
$9
million in 2013.
|
•
|
Interest Income decreased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Equity in Earnings of Affiliates decreased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Other remained consistent in the period to period comparison.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
Variance
|
||||||
Loss on Debt Extinguishment
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
95
|
|
Industrial Supplies
|
|
231
|
|
|
215
|
|
|
16
|
|
|||
Long-Term Liability Plan Changes
|
|
10
|
|
|
—
|
|
|
10
|
|
|||
Interest Expense
|
|
215
|
|
|
211
|
|
|
4
|
|
|||
Revolver Modification Fees
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Bank Fees
|
|
19
|
|
|
18
|
|
|
1
|
|
|||
Corporate Initiative Fees and Other Legal Charges
|
|
10
|
|
|
15
|
|
|
(5
|
)
|
|||
Pension Settlement
|
|
29
|
|
|
39
|
|
|
(10
|
)
|
|||
CNX Gas Shareholder Settlement
|
|
—
|
|
|
20
|
|
|
(20
|
)
|
|||
Other
|
|
8
|
|
|
11
|
|
|
(3
|
)
|
|||
Total Costs
|
|
$
|
620
|
|
|
$
|
529
|
|
|
$
|
91
|
|
•
|
Loss on Debt Extinguishment of
$95
million was recognized in the year ended December 31, 2014 related to the early extinguishment of debt due to the purchase of all of the 8.00% senior notes that were due in 2017 at an average premium of 1.04%, and the partial purchase of the 8.25% senior notes that were due in 2020 at an average premium of 1.075%. No such transactions occurred in the prior period.
|
•
|
Industrial supplies costs represent costs from our industrial supplies subsidiary which was sold in December 2014. See Note 3 - Acquisitions and Dispositions in the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional details. The $
16
million increase in costs was due to higher sales volumes in the current period along with various changes in inventory costs, none of which were individually material.
|
•
|
Long-Term Liability Plan Changes include $36 million of income as a result of amendments to the pension and OPEB plans, which were adopted during the third quarter of 2014, offset by $46 million of expense for cash payments made to active employees related to changes in the OPEB plan. See Note 16—Pension and Other Postretirement Benefit Plans in the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional details related to the total Company expense.
|
•
|
Interest Expense increased
$4
million in the period-to-period comparison primarily due to the decrease in capitalized interest related to the Harvey Mine going into production in 2014. The increase was offset, in part, by the IRS audit resolution causing a reduction to anticipated interest (See Note 7 - Income Taxes of the Notes to the Audited Consolidated Financial Statements of this Form 10-K), the early payoff of the 2017 bonds and partial purchase of the 2020 bonds. The decrease in interest expense also related to the additional bonds, due 2022, issued in April 2014 and August 2014 which have a lower interest rate than the 2017 and the 2020 bonds.
|
•
|
Revolver modification fees resulted in a
$3
million acceleration of previously deferred financing fees.
|
•
|
Bank fees increased
$1
million primarily due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
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. The
$5
million decrease was due to various transactions that occurred in both periods, none of which were individually material. See Note 11 - Property, Plant, and Equipment and Note 24 - Commitments and Contingencies of the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional information.
|
•
|
Pension settlement expense is required when the lump sum distributions made for a given plan year exceed the total of the service and interest costs for that same plan year. Settlement accounting was triggered in both periods. See Note 16 - Pension and Other Post-Employment Benefit Plans in the Notes to the Audited Consolidated Financial Statements of this Form 10-K for additional detail.
|
•
|
The CNX Gas shareholder settlement was the result of an agreement for resolution of the class actions brought by shareholders of CNX Gas challenging the tender offer by CONSOL Energy to acquire all of 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 provided for payment to the plaintiffs of $43 million, of which the Company's portion was $20 million.
|
•
|
Various other corporate expenses decreased
$3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Earnings Before Income Tax
|
$
|
183
|
|
|
$
|
46
|
|
|
$
|
137
|
|
|
297.3
|
%
|
Income Tax Expense
|
$
|
14
|
|
|
$
|
(33
|
)
|
|
$
|
47
|
|
|
(141.6
|
)%
|
Effective Income Tax Rate
|
7.8
|
%
|
|
(72.0
|
)%
|
|
79.8
|
%
|
|
|
|
For the Years Ended December 31,
|
||||||||||
(Dollars in millions, except per share data)
|
2013
|
|
2012
|
|
Variance
|
||||||
Income from Continuing Operations
|
$
|
79
|
|
|
$
|
318
|
|
|
$
|
(239
|
)
|
Income from Discontinued Operations, net
|
580
|
|
|
70
|
|
|
510
|
|
|||
Net Income
|
659
|
|
|
388
|
|
|
271
|
|
|||
Less: Net Loss Attributable to Noncontrolling Interests
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Net Income Attributable to CONSOL Energy Shareholders
|
$
|
660
|
|
|
$
|
388
|
|
|
$
|
272
|
|
|
|
|
|
|
|
||||||
Income from Continuing Operations
|
$
|
0.35
|
|
|
$
|
1.39
|
|
|
$
|
(1.04
|
)
|
Income from Discontinued Operations
|
2.52
|
|
|
0.31
|
|
|
2.21
|
|
|||
Total Dilutive Earnings Per Share
|
$
|
2.87
|
|
|
$
|
1.70
|
|
|
$
|
1.17
|
|
|
|
For the Years Ended December 31,
|
|||||||||||||
in thousands (unless noted)
|
|
2013
|
|
2012
|
|
Variance
|
|
Change
|
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|
|
|||||
NGLs:
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales Volume (MMcfe)
|
|
2,628
|
|
|
610
|
|
|
2,018
|
|
|
330.8
|
%
|
|||
Sales Volume (Mbbls)
|
|
438
|
|
|
102
|
|
|
336
|
|
|
329.4
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
53.76
|
|
|
$
|
52.32
|
|
|
$
|
1.44
|
|
|
2.8
|
%
|
Gross Revenue
|
|
$
|
23,541
|
|
|
$
|
5,314
|
|
|
$
|
18,227
|
|
|
343.0
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
634
|
|
|
600
|
|
|
34
|
|
|
5.7
|
%
|
|||
Sales Volume (Mbbls)
|
|
106
|
|
|
100
|
|
|
6
|
|
|
6.0
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
89.58
|
|
|
$
|
92.58
|
|
|
$
|
(3.00
|
)
|
|
(3.2
|
)%
|
Gross Revenue
|
|
$
|
9,471
|
|
|
$
|
9,252
|
|
|
$
|
219
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
382
|
|
|
63
|
|
|
319
|
|
|
506.3
|
%
|
|||
Sales Volume (Mbbls)
|
|
64
|
|
|
11
|
|
|
53
|
|
|
481.8
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
81.06
|
|
|
$
|
78.84
|
|
|
$
|
2.22
|
|
|
2.8
|
%
|
Gross Revenue
|
|
$
|
5,156
|
|
|
$
|
823
|
|
|
$
|
4,333
|
|
|
526.5
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
168,737
|
|
|
155,052
|
|
|
13,685
|
|
|
8.8
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
3.72
|
|
|
$
|
2.94
|
|
|
$
|
0.78
|
|
|
26.5
|
%
|
Hedging Impact ($/Mcf)
|
|
$
|
0.45
|
|
|
$
|
1.22
|
|
|
$
|
(0.77
|
)
|
|
(63.1
|
)%
|
Gross Revenue
|
|
$
|
702,700
|
|
|
$
|
645,053
|
|
|
$
|
57,647
|
|
|
8.9
|
%
|
•
|
Gathering costs increased in the period-to-period comparison due to a $0.04 per Mcfe increase in processing fees associated with natural gas liquids and a $0.10 per Mcfe increase in firm transportation costs.
|
•
|
Depreciation, depletion and amortization rates increased due to higher units-of-production for producing properties in the period to period comparison offset, in part, by additional volumes.
|
•
|
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 Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price per ton sold
|
$
|
69.34
|
|
|
$
|
77.75
|
|
|
$
|
(8.41
|
)
|
|
(10.8
|
)%
|
Average Costs of Goods Sold per ton
|
50.78
|
|
|
53.98
|
|
|
(3.20
|
)
|
|
(5.9
|
)%
|
|||
Margin
|
$
|
18.56
|
|
|
$
|
23.77
|
|
|
$
|
(5.21
|
)
|
|
(21.9
|
)%
|
•
|
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 incident caused a total of four longwalls to be idled for approximately three weeks, and production to be at approximately 60% for the third quarter of 2012. The mines operated at full capacity for the entire 2013 period, which resulted in lower direct operating costs per ton produced.
|
•
|
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 the idling of operations at the Fola Mining Complex in August 2012. The improvements were offset, in part, by higher costs in the 2013 period related to Bailey, Enlow Fork, and Buchanan Mines running for the full year in 2013 compared to being idled at various times throughout 2012.
|
•
|
Average direct operating costs were impaired due to CONSOL Energy entering into a new longwall lease in 2013 at our Bailey Mine.
|
•
|
Costs were impaired in the current period due to the idling of the Buchanan Mine for various months throughout 2012. Although idled at times during 2012, the Buchanan Mine ran the continuous miners and worked on various projects which increased overall 2012 unit costs.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Continuing Operations General and Administrative Expenses
|
$
|
80
|
|
|
$
|
77
|
|
|
$
|
3
|
|
|
3.9
|
%
|
Discontinued Operations General and Administrative Expenses
|
39
|
|
|
56
|
|
|
(17
|
)
|
|
(30.4
|
)%
|
|||
Total Company General and Administrative Expense
|
$
|
119
|
|
|
$
|
133
|
|
|
$
|
(14
|
)
|
|
(10.5
|
)%
|
|
For the Year Ended
|
|
Difference to Year Ended
|
||||||||||||||||||||||||||||||||||||
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||||||||||
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
Gas
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
Gas
|
||||||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Produced
|
$
|
252
|
|
|
$
|
4
|
|
|
$
|
336
|
|
|
$
|
146
|
|
|
$
|
738
|
|
|
$
|
118
|
|
|
$
|
4
|
|
|
$
|
(42
|
)
|
|
$
|
1
|
|
|
$
|
81
|
|
Related Party
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||||
Total Outside Sales
|
252
|
|
|
4
|
|
|
339
|
|
|
146
|
|
|
741
|
|
|
118
|
|
|
4
|
|
|
(41
|
)
|
|
1
|
|
|
82
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||||||
Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Total Revenue and Other Income
|
252
|
|
|
4
|
|
|
339
|
|
|
274
|
|
|
869
|
|
|
118
|
|
|
4
|
|
|
(41
|
)
|
|
19
|
|
|
100
|
|
||||||||||
Lifting
|
20
|
|
|
3
|
|
|
37
|
|
|
37
|
|
|
97
|
|
|
8
|
|
|
3
|
|
|
—
|
|
|
(5
|
)
|
|
6
|
|
||||||||||
Ad Valorem, Severance, and Other Taxes
|
9
|
|
|
—
|
|
|
9
|
|
|
11
|
|
|
29
|
|
|
5
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
||||||||||
Gathering
|
50
|
|
|
—
|
|
|
114
|
|
|
37
|
|
|
201
|
|
|
26
|
|
|
—
|
|
|
8
|
|
|
6
|
|
|
40
|
|
||||||||||
Gas Direct Administrative, Selling & Other
|
26
|
|
|
2
|
|
|
8
|
|
|
13
|
|
|
49
|
|
|
9
|
|
|
1
|
|
|
(6
|
)
|
|
(2
|
)
|
|
2
|
|
||||||||||
Depreciation, Depletion and Amortization
|
67
|
|
|
3
|
|
|
90
|
|
|
72
|
|
|
232
|
|
|
20
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
27
|
|
||||||||||
General & Administration
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||||||
Gas Royalty Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||||
Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Exploration and Other Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
||||||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||||
Total Exploration and Production Costs
|
172
|
|
|
8
|
|
|
258
|
|
|
424
|
|
|
862
|
|
|
68
|
|
|
6
|
|
|
4
|
|
|
59
|
|
|
137
|
|
||||||||||
Interest Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||||||
Total E&P Segment Costs
|
172
|
|
|
8
|
|
|
258
|
|
|
433
|
|
|
871
|
|
|
68
|
|
|
6
|
|
|
4
|
|
|
63
|
|
|
141
|
|
||||||||||
Earnings (Loss) Before Income Tax
|
$
|
80
|
|
|
$
|
(4
|
)
|
|
$
|
81
|
|
|
$
|
(159
|
)
|
|
$
|
(2
|
)
|
|
$
|
50
|
|
|
$
|
(2
|
)
|
|
$
|
(45
|
)
|
|
$
|
(44
|
)
|
|
$
|
(41
|
)
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
55.0
|
|
|
35.9
|
|
|
19.1
|
|
|
53.2
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
2.5
|
|
|
0.6
|
|
|
1.9
|
|
|
316.7
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
100.0
|
%
|
|||
Total Marcellus Gas Sales Volumes (Bcfe)*
|
57.8
|
|
|
36.5
|
|
|
21.3
|
|
|
58.4
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.77
|
|
|
$
|
2.89
|
|
|
$
|
0.88
|
|
|
30.4
|
%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.32
|
|
|
$
|
0.69
|
|
|
$
|
(0.37
|
)
|
|
(53.6
|
)%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
9.09
|
|
|
$
|
8.68
|
|
|
$
|
0.41
|
|
|
4.7
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
13.73
|
|
|
$
|
13.54
|
|
|
$
|
0.19
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Marcellus sales (per Mcfe)
|
$
|
4.35
|
|
|
$
|
3.68
|
|
|
$
|
0.67
|
|
|
18.2
|
%
|
Average Marcellus lifting costs (per Mcfe)
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.01
|
|
|
2.9
|
%
|
Average Marcellus ad valorem, severance, and other taxes (per Mcfe)
|
$
|
0.16
|
|
|
$
|
0.12
|
|
|
$
|
0.04
|
|
|
33.3
|
%
|
Average Marcellus gathering costs (per Mcfe)
|
$
|
0.86
|
|
|
$
|
0.67
|
|
|
$
|
0.19
|
|
|
28.4
|
%
|
Average Marcellus direct administrative and selling (per Mcfe)
|
$
|
0.45
|
|
|
$
|
0.46
|
|
|
$
|
(0.01
|
)
|
|
(2.2
|
)%
|
Average Marcellus depreciation, depletion and amortization costs (per Mcfe)
|
$
|
1.16
|
|
|
$
|
1.30
|
|
|
$
|
(0.14
|
)
|
|
(10.8
|
)%
|
Total Average Marcellus costs (per Mcfe)
|
$
|
2.98
|
|
|
$
|
2.89
|
|
|
$
|
0.09
|
|
|
3.1
|
%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
1.37
|
|
|
$
|
0.79
|
|
|
$
|
0.58
|
|
|
73.4
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change |
|||||||
Utica Gas Sales Volumes (Bcf)
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
100.0
|
%
|
|||
NGL Sales Volumes (Bcfe)*
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
100.0
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
100.0
|
%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
100.0
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.83
|
|
|
$
|
—
|
|
|
$
|
3.83
|
|
|
100.0
|
%
|
Average Sales Price - NGL (Mcfe)*
|
$
|
6.09
|
|
|
$
|
—
|
|
|
$
|
6.09
|
|
|
100.0
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
12.78
|
|
|
$
|
—
|
|
|
$
|
12.78
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica sales price (per Mcfe)
|
$
|
5.80
|
|
|
$
|
11.02
|
|
|
$
|
(5.22
|
)
|
|
(47.4
|
)%
|
Average Utica lifting costs (per Mcfe)
|
$
|
3.47
|
|
|
$
|
6.62
|
|
|
$
|
(3.15
|
)
|
|
(47.6
|
)%
|
Average Utica ad valorem, severance, and other taxes (per Mcfe)
|
$
|
(0.67
|
)
|
|
$
|
24.72
|
|
|
$
|
(25.39
|
)
|
|
(102.7
|
)%
|
Average Utica gathering costs (per Mcfe)
|
$
|
0.53
|
|
|
$
|
—
|
|
|
$
|
0.53
|
|
|
100.0
|
%
|
Average Utica direct administrative and selling (per Mcfe)
|
$
|
2.79
|
|
|
$
|
38.34
|
|
|
$
|
(35.55
|
)
|
|
(92.7
|
)%
|
Average Utica depreciation, depletion and amortization costs (per Mcfe)
|
$
|
4.96
|
|
|
$
|
(0.03
|
)
|
|
$
|
4.99
|
|
|
16,633.3
|
%
|
Total Average Utica costs (per Mcfe)
|
$
|
11.08
|
|
|
$
|
69.65
|
|
|
$
|
(58.57
|
)
|
|
(84.1
|
)%
|
Average Margin for Utica (per Mcfe)
|
$
|
(5.28
|
)
|
|
$
|
(58.63
|
)
|
|
$
|
53.35
|
|
|
91.0
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
82.9
|
|
|
88.2
|
|
|
(5.3
|
)
|
|
(6.0
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.69
|
|
|
$
|
2.88
|
|
|
$
|
0.81
|
|
|
28.1
|
%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.40
|
|
|
$
|
1.44
|
|
|
$
|
(1.04
|
)
|
|
(72.2
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM sales price (per Mcf)
|
$
|
4.09
|
|
|
$
|
4.32
|
|
|
$
|
(0.23
|
)
|
|
(5.3
|
)%
|
Average CBM lifting costs (per Mcf)
|
$
|
0.44
|
|
|
$
|
0.42
|
|
|
$
|
0.02
|
|
|
4.8
|
%
|
Average CBM ad valorem, severance, and other taxes (per Mcf)
|
$
|
0.10
|
|
|
$
|
0.12
|
|
|
$
|
(0.02
|
)
|
|
(16.7
|
)%
|
Average CBM gathering costs (per Mcf)
|
$
|
1.37
|
|
|
$
|
1.21
|
|
|
$
|
0.16
|
|
|
13.2
|
%
|
Average CBM direct administrative and selling (per Mcf)
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
$
|
(0.06
|
)
|
|
(37.5
|
)%
|
Average CBM depreciation, depletion and amortization costs (per Mcf)
|
$
|
1.10
|
|
|
$
|
0.98
|
|
|
$
|
0.12
|
|
|
12.2
|
%
|
Total Average CBM costs (per Mcf)
|
$
|
3.11
|
|
|
$
|
2.89
|
|
|
$
|
0.22
|
|
|
7.6
|
%
|
Average Margin for CBM (per Mcf)
|
$
|
0.98
|
|
|
$
|
1.43
|
|
|
$
|
(0.45
|
)
|
|
(31.5
|
)%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
30.3
|
|
|
31.0
|
|
|
(0.7
|
)
|
|
(2.3
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|
—
|
%
|
|||
Total Other Sales Volumes (Bcfe)*
|
30.9
|
|
|
31.6
|
|
|
(0.7
|
)
|
|
(2.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.70
|
|
|
$
|
3.12
|
|
|
$
|
0.58
|
|
|
18.6
|
%
|
Hedging Impact - Gas (Mcf)
|
$
|
0.81
|
|
|
$
|
1.24
|
|
|
$
|
(0.43
|
)
|
|
(34.7
|
)%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
14.78
|
|
|
$
|
15.62
|
|
|
$
|
(0.84
|
)
|
|
(5.4
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other sales price (per Mcfe)
|
$
|
4.72
|
|
|
$
|
4.57
|
|
|
$
|
0.15
|
|
|
3.3
|
%
|
Average Other lifting costs (per Mcfe)
|
$
|
1.21
|
|
|
$
|
1.30
|
|
|
$
|
(0.09
|
)
|
|
(6.9
|
)%
|
Average Other ad valorem, severance, and other taxes (per Mcfe)
|
$
|
0.36
|
|
|
$
|
0.34
|
|
|
$
|
0.02
|
|
|
5.9
|
%
|
Average Other gathering costs (per Mcfe)
|
$
|
1.19
|
|
|
$
|
0.95
|
|
|
$
|
0.24
|
|
|
25.3
|
%
|
Average Other direct administrative and selling (per Mcfe)
|
$
|
0.41
|
|
|
$
|
0.49
|
|
|
$
|
(0.08
|
)
|
|
(16.3
|
)%
|
Average Other depreciation, depletion and amortization costs (per Mcfe)
|
$
|
2.22
|
|
|
$
|
2.15
|
|
|
$
|
0.07
|
|
|
3.3
|
%
|
Total Average Other costs (per Mcfe)
|
$
|
5.39
|
|
|
$
|
5.23
|
|
|
$
|
0.16
|
|
|
3.1
|
%
|
Average Margin for Other (per Mcfe)
|
$
|
(0.67
|
)
|
|
$
|
(0.66
|
)
|
|
$
|
(0.01
|
)
|
|
(1.5
|
)%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
15.3
|
|
|
18.0
|
|
|
(2.7
|
)
|
|
(15.0
|
)%
|
|||
Average Sales Price per thousand cubic feet
|
$
|
4.13
|
|
|
$
|
2.74
|
|
|
$
|
1.39
|
|
|
50.7
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Sales Volumes (in billion cubic feet)
|
1.6
|
|
|
1.1
|
|
|
0.5
|
|
|
45.5
|
%
|
|||
Average Sales Price per thousand cubic feet
|
$
|
4.12
|
|
|
$
|
3.03
|
|
|
$
|
1.09
|
|
|
36.0
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet)
|
15.3
|
|
|
18.0
|
|
|
(2.7
|
)
|
|
(15.0
|
)%
|
|||
Average Cost per thousand cubic feet sold
|
$
|
3.47
|
|
|
$
|
2.16
|
|
|
$
|
1.31
|
|
|
60.6
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Title Defects
|
$
|
23
|
|
|
$
|
4
|
|
|
$
|
19
|
|
|
475.0
|
%
|
Dry Hole Expense
|
9
|
|
|
3
|
|
|
6
|
|
|
200.0
|
%
|
|||
Land Rentals
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|||
Seismic Activity
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Lease Expiration Costs
|
10
|
|
|
15
|
|
|
(5
|
)
|
|
(33.3
|
)%
|
|||
Other
|
11
|
|
|
9
|
|
|
2
|
|
|
22.2
|
%
|
|||
Total Exploration and Production Related Other Costs
|
$
|
61
|
|
|
$
|
39
|
|
|
$
|
22
|
|
|
56.4
|
%
|
•
|
CONSOL Energy, working in collaboration with Noble Energy, conceded title defects on acreage which had a book value of
$23
million for the year ended
December 31, 2013
compared to
$4
million for the year ended
December 31, 2012
.
|
•
|
Dry hole costs increased
$6
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Land Rentals remained consistent in the period-to-period comparison.
|
•
|
Seismic Activity remained consistent in the period-to-period comparison.
|
•
|
Lease expiration costs relate to locations where CONSOL Energy allowed the primary term lease to expire because of unfavorable drilling economics. The
$5
million decrease was due to fewer lease expirations in the 2013 period when compared with the 2012 period.
|
•
|
Other expenses increased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Unutilized firm transportation
|
$
|
36
|
|
|
$
|
16
|
|
|
$
|
20
|
|
|
125.0
|
%
|
Stock-based compensation
|
24
|
|
|
18
|
|
|
6
|
|
|
33.3
|
%
|
|||
Bank fees
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
%
|
|||
Litigation Settlements
|
3
|
|
|
5
|
|
|
(2
|
)
|
|
(40.0
|
)%
|
|||
Short-term incentive compensation
|
20
|
|
|
26
|
|
|
(6
|
)
|
|
(23.1
|
)%
|
|||
Other
|
6
|
|
|
9
|
|
|
(3
|
)
|
|
(33.3
|
)%
|
|||
Total Other Corporate Expenses
|
$
|
96
|
|
|
$
|
81
|
|
|
$
|
15
|
|
|
18.5
|
%
|
•
|
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
$20
million increase was due to increased firm transportation capacity which has not been utilized by active operations.
|
•
|
Stock-based compensation was
$6
million higher in the period-to-period comparison primarily due to additional non-cash expense and accelerated non-cash expense for retiree-eligible employees who received awards under the new CONSOL Share Unit (CSU) program, when compared to the prior year. 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.
|
•
|
Bank Fees remained consistent in the period-to-period comparison.
|
•
|
Litigation settlements decreased
$2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
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 decreased
$6
million due to lower projected payouts in the 2013 period.
|
•
|
Other corporate related expenses decreased
$3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Year Ended
|
|
Difference to Year Ended
|
||||||||||||||||||||||||||||
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||
|
Pennsylvania Operations
|
|
Virginia Operations
|
|
Other
Coal
|
|
Total
Coal
|
|
Pennsylvania Operations
|
|
Virginia Operations
|
|
Other
Coal
|
|
Total
Coal
|
||||||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Produced Coal
|
$
|
1,357
|
|
|
$
|
450
|
|
|
$
|
188
|
|
|
$
|
1,995
|
|
|
$
|
33
|
|
|
$
|
(56
|
)
|
|
$
|
(134
|
)
|
|
$
|
(157
|
)
|
Purchased Coal
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||||
Total Outside Sales
|
1,357
|
|
|
450
|
|
|
211
|
|
|
2,018
|
|
|
33
|
|
|
(56
|
)
|
|
(128
|
)
|
|
(151
|
)
|
||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||||
Freight Revenue
|
18
|
|
|
4
|
|
|
13
|
|
|
35
|
|
|
(33
|
)
|
|
(32
|
)
|
|
(7
|
)
|
|
(72
|
)
|
||||||||
Miscellaneous Other Income
|
6
|
|
|
5
|
|
|
50
|
|
|
61
|
|
|
(6
|
)
|
|
1
|
|
|
(3
|
)
|
|
(8
|
)
|
||||||||
Gain on Sale of Assets
|
—
|
|
|
5
|
|
|
41
|
|
|
46
|
|
|
—
|
|
|
(8
|
)
|
|
(216
|
)
|
|
(224
|
)
|
||||||||
Total Revenue and Other Income
|
1,381
|
|
|
464
|
|
|
358
|
|
|
2,203
|
|
|
(6
|
)
|
|
(95
|
)
|
|
(358
|
)
|
|
(459
|
)
|
||||||||
Operating Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating Costs
|
765
|
|
|
252
|
|
|
134
|
|
|
1,151
|
|
|
80
|
|
|
28
|
|
|
(122
|
)
|
|
(14
|
)
|
||||||||
Direct Administrative and Selling
|
27
|
|
|
6
|
|
|
2
|
|
|
35
|
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|
(7
|
)
|
||||||||
Total Royalty/Production Taxes
|
55
|
|
|
26
|
|
|
18
|
|
|
99
|
|
|
7
|
|
|
(4
|
)
|
|
(17
|
)
|
|
(14
|
)
|
||||||||
Depreciation, Depletion and Amortization
|
120
|
|
|
42
|
|
|
13
|
|
|
175
|
|
|
5
|
|
|
6
|
|
|
(7
|
)
|
|
4
|
|
||||||||
Total Operating Costs and Expenses
|
967
|
|
|
326
|
|
|
167
|
|
|
1,460
|
|
|
89
|
|
|
30
|
|
|
(150
|
)
|
|
(31
|
)
|
||||||||
Other Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other Costs
|
23
|
|
|
8
|
|
|
164
|
|
|
195
|
|
|
(35
|
)
|
|
(11
|
)
|
|
(52
|
)
|
|
(98
|
)
|
||||||||
Direct Administrative
|
1
|
|
|
—
|
|
|
13
|
|
|
14
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
1
|
|
||||||||
Total Royalty/Production Taxes
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Depreciation, Depletion and Amortization
|
1
|
|
|
13
|
|
|
38
|
|
|
52
|
|
|
(3
|
)
|
|
1
|
|
|
6
|
|
|
4
|
|
||||||||
Total Other Costs and Expenses
|
25
|
|
|
21
|
|
|
218
|
|
|
264
|
|
|
(39
|
)
|
|
(10
|
)
|
|
(45
|
)
|
|
(94
|
)
|
||||||||
General and Administrative Expense
|
23
|
|
|
9
|
|
|
8
|
|
|
40
|
|
|
(1
|
)
|
|
1
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
Other Corporate Expenses
|
38
|
|
|
11
|
|
|
7
|
|
|
56
|
|
|
6
|
|
|
1
|
|
|
(4
|
)
|
|
3
|
|
||||||||
Freight Expense
|
18
|
|
|
4
|
|
|
13
|
|
|
35
|
|
|
(33
|
)
|
|
(32
|
)
|
|
(7
|
)
|
|
(72
|
)
|
||||||||
Total Costs
|
1,071
|
|
|
371
|
|
|
413
|
|
|
1,855
|
|
|
22
|
|
|
(10
|
)
|
|
(209
|
)
|
|
(197
|
)
|
||||||||
Earnings (Loss) Before Income Taxes
|
$
|
310
|
|
|
$
|
93
|
|
|
$
|
(55
|
)
|
|
$
|
348
|
|
|
$
|
(28
|
)
|
|
$
|
(85
|
)
|
|
$
|
(149
|
)
|
|
$
|
(262
|
)
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Operations Tons Sold (in millions)
|
21.2
|
|
|
19.6
|
|
|
1.6
|
|
|
8.2
|
%
|
|||
Average Sales Price Per PA Operations Ton Sold
|
$
|
63.93
|
|
|
$
|
67.67
|
|
|
$
|
(3.74
|
)
|
|
(5.5
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
36.13
|
|
|
$
|
35.07
|
|
|
$
|
1.06
|
|
|
3.0
|
%
|
Total Direct Administration and Selling Costs Per Ton Sold
|
1.26
|
|
|
1.49
|
|
|
(0.23
|
)
|
|
(15.4
|
%)
|
|||
Total Royalty/Production Taxes Per Ton Sold
|
2.58
|
|
|
2.43
|
|
|
0.15
|
|
|
6.2
|
%
|
|||
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
5.58
|
|
|
5.90
|
|
|
(0.32
|
)
|
|
(5.4
|
%)
|
|||
Total Costs Per PA Operations Ton Sold
|
$
|
45.55
|
|
|
$
|
44.89
|
|
|
$
|
0.66
|
|
|
1.5
|
%
|
Average Margin Per PA Operations Ton Sold
|
$
|
18.38
|
|
|
$
|
22.78
|
|
|
$
|
(4.40
|
)
|
|
(19.3
|
%)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Coal Contract Buyout
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
(5
|
)
|
Rental/Royalty Income
|
|
1
|
|
|
4
|
|
|
(3
|
)
|
|||
Business Interruption Proceeds- Bailey Mine Belt
|
|
5
|
|
|
2
|
|
|
3
|
|
|||
Other
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Total Miscellaneous Other Income
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
(6
|
)
|
•
|
For the year ended
December 31, 2012
,
$5
million of income was related to a coal customer contract buyout. The discontinued contract was a long term contract that created pricing risks for both parties. The parties agreed to an amicable settlement. No such transactions were entered into in the year ended
December 31, 2013
.
|
•
|
Rental/Royalty income decreased
$3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Business interruption proceeds of $
5
million were received in the year ended
December 31, 2013
compared to
$2
million in the year ended
December 31, 2012
related to the 2012 Bailey Belt Conveyor accident.
|
•
|
Other income decreased
$1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Bailey Belt Incident
|
|
$
|
—
|
|
|
$
|
42
|
|
|
(42
|
)
|
|
Property and Other Taxes
|
|
2
|
|
|
7
|
|
|
(5
|
)
|
|||
Litigation Contingencies
|
|
4
|
|
|
—
|
|
|
4
|
|
|||
Supplies Expense
|
|
9
|
|
|
—
|
|
|
9
|
|
|||
Other
|
|
8
|
|
|
9
|
|
|
(1
|
)
|
|||
Total Other Costs
|
|
$
|
23
|
|
|
$
|
58
|
|
|
$
|
(35
|
)
|
•
|
Bailey Belt incident costs represent expenses related to continued advancement of the mines and on-going projects at the mines that took place during the idles phase when belt reconstruction was occurring and which was not included in active mining costs.
|
•
|
Property and other taxes decreased
$5
million due to a tax reassessment that occurred in the 2013 period.
|
•
|
Litigation Contingencies increased $
4
million in the period-to-period comparison due to various items. See Note 24- Commitments and Contingent Liabilities in the Notes to Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional details related to total Company expense.
|
•
|
Supplies expense increased
$9
million primarily due to the 2013 period including additional supplies needed for repairs related to the 2012 Bailey Belt Conveyor accident which was not included in active mining costs.
|
•
|
Other expense decreased $
1
million due to various items that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced VA Operations Tons Sold (in millions)
|
4.9
|
|
|
3.6
|
|
|
1.3
|
|
|
36.1
|
%
|
|||
Average Sales Price Per VA Operations Ton Sold
|
$
|
92.43
|
|
|
$
|
140.11
|
|
|
$
|
(47.68
|
)
|
|
(34.0
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
51.54
|
|
|
$
|
61.84
|
|
|
$
|
(10.30
|
)
|
|
(16.7
|
%)
|
Total Direct Administrative and Selling Costs Per Ton Sold
|
1.24
|
|
|
1.72
|
|
|
(0.48
|
)
|
|
(27.9
|
%)
|
|||
Total Royalty/Production Taxes Per Ton Sold
|
5.50
|
|
|
8.32
|
|
|
(2.82
|
)
|
|
(33.9
|
%)
|
|||
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
8.71
|
|
|
10.00
|
|
|
(1.29
|
)
|
|
(12.9
|
%)
|
|||
Total Costs Per VA Operations Ton Sold
|
$
|
66.99
|
|
|
$
|
81.88
|
|
|
$
|
(14.89
|
)
|
|
(18.2
|
%)
|
Average Margin Per VA Operations Ton Sold
|
$
|
25.44
|
|
|
$
|
58.23
|
|
|
$
|
(32.79
|
)
|
|
(56.3
|
%)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Idle Mine Costs
|
|
$
|
7
|
|
|
$
|
18
|
|
|
$
|
(11
|
)
|
Water Treatment Costs
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Other Costs
|
|
$
|
8
|
|
|
$
|
19
|
|
|
$
|
(11
|
)
|
•
|
Idle mine costs decreased
$11
million in the period-to-period comparison primarily due to the Buchanan Mine operating throughout 2013 but was temporarily idled in the 2012 period.
|
•
|
Water treatment costs remained consistent in the period-to-period comparison.
|
•
|
Other expense remained consistent in the period-to-period comparison.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced Other Operations Tons Sold (in millions)
|
2.7
|
|
|
4.4
|
|
|
(1.7
|
)
|
|
(38.6
|
%)
|
|||
Average Sales Price Per Other Operations Ton Sold
|
$
|
70.22
|
|
|
$
|
71.44
|
|
|
$
|
(1.22
|
)
|
|
(1.7
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
47.95
|
|
|
$
|
55.97
|
|
|
$
|
(8.02
|
)
|
|
(14.3
|
%)
|
Total Direct Administration and Selling Costs Per Ton Sold
|
1.03
|
|
|
1.39
|
|
|
(0.36
|
)
|
|
(25.9
|
%)
|
|||
Total Royalty/Production Taxes Per Ton Sold
|
7.80
|
|
|
8.87
|
|
|
(1.07
|
)
|
|
(12.1
|
%)
|
|||
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
5.98
|
|
|
5.09
|
|
|
0.89
|
|
|
17.5
|
%
|
|||
Total Costs Per Other Operations Ton Sold
|
$
|
62.76
|
|
|
$
|
71.32
|
|
|
$
|
(8.56
|
)
|
|
(12.0
|
%)
|
Average Margin Per Other Operations Ton Sold
|
$
|
7.46
|
|
|
$
|
0.12
|
|
|
$
|
7.34
|
|
|
6,116.7
|
%
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Coal Contract Buyout
|
|
$
|
—
|
|
|
$
|
4
|
|
|
(4
|
)
|
|
Royalty Income
|
|
17
|
|
|
17
|
|
|
—
|
|
|||
Equity in Earnings of Affiliates
|
|
18
|
|
|
16
|
|
|
2
|
|
|||
Land Rental Income
|
|
6
|
|
|
3
|
|
|
3
|
|
|||
Other
|
|
9
|
|
|
13
|
|
|
(4
|
)
|
|||
Total Miscellaneous Other Income
|
|
$
|
50
|
|
|
$
|
53
|
|
|
$
|
(3
|
)
|
•
|
For the year ended
December 31, 2012
, $
4
million of income was related to a coal customer contract buyout. The discontinued contract was a long term contract that created pricing risks for both parties. The parties agreed to an amicable settlement. No such transactions were entered into during the year ended
December 31, 2013
.
|
•
|
Royalty income remained consistent in the period-to-period comparison.
|
•
|
Equity in earnings of affiliates increased
$2
million due to various transactions completed by our equity partners, none of which were individually material.
|
•
|
Land rental income primarily consists of income related to the sale of right of ways on property that CONSOL Energy owns. The
$3
million increase was due to an increase in land activity in the period-to-period comparison.
|
•
|
Other decreased $
4
million due to various transactions that occurred in the prior period, none of which were individually material.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Closed and Idle Mines
|
|
$
|
67
|
|
|
$
|
88
|
|
|
$
|
(21
|
)
|
Litigation Contingencies
|
|
—
|
|
|
17
|
|
|
(17
|
)
|
|||
Voluntary Incentive Separation Program
|
|
—
|
|
|
13
|
|
|
(13
|
)
|
|||
Coal Terminal Operations
|
|
31
|
|
|
32
|
|
|
(1
|
)
|
|||
Coal Reserve Holding Costs
|
|
11
|
|
|
11
|
|
|
—
|
|
|||
Purchased Coal
|
|
43
|
|
|
41
|
|
|
2
|
|
|||
Other
|
|
12
|
|
|
14
|
|
|
(2
|
)
|
|||
Total Other Costs
|
|
$
|
164
|
|
|
$
|
216
|
|
|
$
|
(52
|
)
|
•
|
Closed and idle mine costs decreased approximately $
21
million for the year ended
December 31, 2013
compared to the year ended
December 31, 2012
. Closed and idle mine costs decreased $16 million due to the decision to shutdown the Fola Mining Complex in August 2012. Other changes in the operational status of various other mines, between idled and operating throughout both periods, none of which were individually material resulted in an additional $5 million decrease.
|
•
|
Litigation Contingencies decreased $
17
million in the year-to-year comparison due to various items. See Note 24- Commitments and Contingent Liabilities in the Notes to Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional details related to total Company expense.
|
•
|
In November 2012, CONSOL Energy offered a voluntary severance incentive program (VSIP) to active salaried corporate and operation support employees with 30 years of service, or more. Under this program, eligible employees who accepted the offer received a severance payment equal to one year's salary. Approximately 100 employees volunteered for the program. Severance pay was approximately $
13
million.
|
•
|
Coal Terminal Operations costs decreased $
1
million due to decreased thru-put volumes in the 2013 period.
|
•
|
Coal reserve holding costs which primarily consist of property and other taxes, remained consistent in the period-to-period comparison.
|
•
|
Purchased coal costs increased $
2
million due to higher amounts of coal that was purchased to fulfill various contracts.
|
•
|
Other expenses related to the coal segment decreased $
2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Sales—Outside
|
$
|
217
|
|
|
$
|
243
|
|
|
$
|
(26
|
)
|
|
(10.7
|
)%
|
Other Income
|
15
|
|
|
3
|
|
|
12
|
|
|
400.0
|
%
|
|||
Total Revenue
|
232
|
|
|
246
|
|
|
(14
|
)
|
|
(5.7
|
)%
|
|||
Miscellaneous Operating Expense
|
315
|
|
|
270
|
|
|
45
|
|
|
16.7
|
%
|
|||
Depreciation, Depletion & Amortization
|
3
|
|
|
2
|
|
|
1
|
|
|
50.0
|
%
|
|||
Interest Expense
|
211
|
|
|
215
|
|
|
(4
|
)
|
|
(1.9
|
)%
|
|||
Total Costs
|
529
|
|
|
487
|
|
|
42
|
|
|
8.6
|
%
|
|||
Loss Before Income Tax
|
(297
|
)
|
|
(241
|
)
|
|
(56
|
)
|
|
(23.2
|
)%
|
|||
Income Tax (Benefit) Expense
|
(33
|
)
|
|
89
|
|
|
(122
|
)
|
|
(137.1
|
)%
|
|||
Net Loss
|
$
|
(264
|
)
|
|
$
|
(330
|
)
|
|
$
|
66
|
|
|
20.0
|
%
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Pennsylvania Turnpike Settlement
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Interest Income
|
|
4
|
|
|
1
|
|
|
3
|
|
|||
Equity in Earnings of Affiliates
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Other
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Total Other Income
|
|
$
|
15
|
|
|
$
|
3
|
|
|
$
|
12
|
|
•
|
Pennsylvania Turnpike Settlement relates to mediation with the PA Turnpike Commission that was settled for
$9
million.
|
•
|
Interest Income increased
$3
million mainly due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Equity in Earnings of Affiliates increased $
1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Other income decreased
$1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
Variance
|
||||||
Pension Settlement
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
39
|
|
CNX Gas Shareholder Settlement
|
|
20
|
|
|
—
|
|
|
20
|
|
|||
Corporate Initiative Fees and Other Legal Charges
|
|
15
|
|
|
4
|
|
|
11
|
|
|||
Bank Fees
|
|
18
|
|
|
13
|
|
|
5
|
|
|||
Interest Expense
|
|
211
|
|
|
215
|
|
|
(4
|
)
|
|||
Industrial Supplies
|
|
215
|
|
|
239
|
|
|
(24
|
)
|
|||
Other
|
|
11
|
|
|
16
|
|
|
(5
|
)
|
|||
Total Costs
|
|
$
|
529
|
|
|
$
|
487
|
|
|
$
|
42
|
|
•
|
Pension settlement expense is required when lump sum distributions made for a given plan year exceed the total of the service and interest costs for that same plan year.
|
•
|
The CNX Gas shareholder settlement was the result of an agreement for resolution of the class actions brought by shareholders of CNX Gas challenging the tender offer by CONSOL Energy to acquire all of 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 provided for payment to the plaintiffs of $43 million, of which the Company paid $20 million.
|
•
|
Corporate initiative fees and other legal charges reflect various charges 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 case. See Note 11 - Property, Plant and Equipment and Note 24 - Commitments and Contingent Liabilities of the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional information.
|
•
|
Bank fees increased
$5
million mainly due to higher borrowings on the CNX Gas revolving credit facilities in the period-to-period comparison, as well as bank fees from the accelerated amortization of the previously deferred fees in relation to the capacity reduction in CONSOL Energy's revolving credit facility from $1.5 billion to $1.0 billion.
|
•
|
Interest Expense decreased
$4
million primarily due to an increase in capitalized interest as a result of additional capital expenditures for major construction projects in 2013.
|
•
|
The decrease of
$24
million related to industrial supplies was primarily related to lower sales volumes and various changes in inventory costs, none of which were individually material.
|
•
|
Other corporate items decreased
$5
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Earnings Before Income Tax
|
$
|
46
|
|
|
$
|
407
|
|
|
$
|
(361
|
)
|
|
(88.8
|
)%
|
Income Tax (Benefit) Expense
|
$
|
(33
|
)
|
|
$
|
89
|
|
|
$
|
(122
|
)
|
|
(137.5
|
)%
|
Effective Income Tax Rate
|
(72.0
|
)%
|
|
21.8
|
%
|
|
(93.8
|
)%
|
|
|
Plan
|
|
Estimated Liability as of December 31, 2014
|
|
Benefit Payments for the year ended December 31, 2014
|
OPEB
|
|
$760,959
|
|
$65,180
|
Pension
|
|
$119,296
|
|
$27,318
|
Workers’ Compensation
|
|
$89,741
|
|
$15,523
|
CWP
|
|
$126,098
|
|
$11,874
|
•
|
stock price on measurement date,
|
•
|
exercise price defined in the award,
|
•
|
expected dividend yield based on historical trend of dividend payouts,
|
•
|
risk-free interest rate based on a zero-coupon treasury bond rate,
|
•
|
expected term based on historical grant and exercise behavior, and
|
•
|
expected volatility based on historic and implied stock price volatility of CONSOL Energy stock and public peer group stock.
|
•
|
geological conditions;
|
•
|
historical production from the area compared with production from other producing areas;
|
•
|
the assumed effects of regulations and taxes by governmental agencies;
|
•
|
assumptions governing future prices; and
|
•
|
future operating costs.
|
|
For the Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
Change
|
||||||
Cash flows from operating activities
|
$
|
937
|
|
|
$
|
659
|
|
|
$
|
278
|
|
Cash used in investing activities
|
$
|
(1,041
|
)
|
|
$
|
(202
|
)
|
|
$
|
(839
|
)
|
Cash used in financing activities
|
$
|
(46
|
)
|
|
$
|
(151
|
)
|
|
$
|
105
|
|
•
|
Net income decreased $496 million in the period-to-period comparison;
|
•
|
Discontinued operations changes increased $446 million primarily as a result of the gain on sale of CCC and certain subsidiaries to Murray Energy Corporation in December 2013;
|
•
|
Operating cash flows increased $24 million in the period-to-period comparison due to changes in the gain on the sale of assets. See Note 3 - Acquisitions and Dispositions in the Notes to Audited Financial Statements in Item 8 of this Form 10-K for more information;
|
•
|
Return on equity earnings was related to $47 million IPO proceeds received from CONE Midstream Partners, LP and $55 million related to various other equity investment sales;
|
•
|
Other Adjustments to reconcile net income to cash flow provided by operating activities increased due to $95 million on the loss on extinguishment of debt, and $110 million of additional depreciation, depletion, and amortization; and
|
•
|
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.
|
•
|
Gas segment capital expenditures increased $135 million. The increase was comprised of a $267 million increase in drilling and completion costs in the Marcellus and Utica plays. This increase was partially offset by a decrease of $132 million in land acquisitions in Monroe and Noble Counties and various other individually insignificant projects.
|
•
|
Coal segment capital expenditures decreased $75 million. The decrease was comprised of a $57 million decrease in various projects at Enlow Fork Mine. Capitalized Interest also decreased $17 million due to the completion of the Harvey Mine as well as an additional $21 million decrease in various miscellaneous transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Other capital expenditures decreased $63 million. The decrease was comprised of a $53 million decrease in equipment lease buyouts as well as an additional $6 million decrease in various miscellaneous transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Proceeds from sale of assets, continuing operations, increased $127 million in the period-to-period comparison primarily due to $238 million received in 2013 related to the 2011 Noble Joint Venture Agreement, offset in part by various asset sales executed in each period. See Note 3 - Acquisitions and Dispositions, in the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for more information.
|
•
|
Net investments in equity affiliates decreased $131 million primarily due to a $157 million increase on the return of investment from the IPO of CONE Midstream Partners, LP, offset by $87 million of additional capital contributions to CONE in 2014. The remaining increase was due to various changes in our equity partners, none of which were individually material. See Note 3 - Acquisitions and Dispositions in the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for additional details.
|
•
|
Restricted cash increased $69 million due to the release of $48 million associated with the Ram River & Scurry Canadian sale and $21 million associated with the Ryerson Dam Settlement, both of which occurred in the year ended December 31, 2012.
|
•
|
Discontinued operations changes increased $777 million primarily as a result of the gain on the sale of CCC and certain subsidiaries to Murray Energy Corporation in December 2013.
|
•
|
Net payments on short term borrowing were $22 million in 2014 versus $69 million in 2013.
|
•
|
In 2014, CONSOL Energy had net proceeds from long-term borrowings of $16 million related to the issuance of the 2022 Bonds offset by the extinguishment of the 2017 Bonds. See Note 14 - Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-K for additional details.
|
•
|
In 2014, CONSOL Energy paid four quarterly dividends totaling $58 million at an amount per share of $.0625. In 2013, CONSOL Energy paid only three quarterly dividends totaling $86 million at an amount per share of $.125. This was due to the accelerated declaration and payment of the regular quarterly dividend in the fourth quarter of 2012 which resulted in no dividends paid in the first quarter of 2013.
|
•
|
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
|
||||||||||
Purchase Order Firm Commitments
|
141,680
|
|
|
149,556
|
|
|
25,025
|
|
|
1,543
|
|
|
317,804
|
|
|||||
Gas Firm Transportation
|
108,791
|
|
|
188,756
|
|
|
156,583
|
|
|
453,871
|
|
|
908,001
|
|
|||||
Long-Term Debt
|
5,052
|
|
|
8,406
|
|
|
3,511
|
|
|
3,224,505
|
|
|
3,241,474
|
|
|||||
Interest on Long-Term Debt
|
214,576
|
|
|
429,288
|
|
|
428,954
|
|
|
386,231
|
|
|
1,459,049
|
|
|||||
Capital (Finance) Lease Obligations
|
7,964
|
|
|
13,941
|
|
|
12,932
|
|
|
12,583
|
|
|
47,420
|
|
|||||
Interest on Capital (Finance) Lease Obligations
|
3,110
|
|
|
4,594
|
|
|
2,848
|
|
|
899
|
|
|
11,451
|
|
|||||
Operating Lease Obligations
|
104,232
|
|
|
181,631
|
|
|
85,773
|
|
|
78,954
|
|
|
450,590
|
|
|||||
Long-Term Liabilities—Employee Related (a)
|
84,187
|
|
|
162,819
|
|
|
157,472
|
|
|
594,747
|
|
|
999,225
|
|
|||||
Other Long-Term Liabilities (b)
|
342,098
|
|
|
239,472
|
|
|
83,426
|
|
|
336,184
|
|
|
1,001,180
|
|
|||||
Total Contractual Obligations (c)
|
$
|
1,011,690
|
|
|
$
|
1,378,463
|
|
|
$
|
956,524
|
|
|
$
|
5,089,517
|
|
|
$
|
8,436,194
|
|
(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 excluded from the pay-out table due to the uncertainty regarding amounts to be contributed. CONSOL Energy does not expect to contribute to the pension in 2015.
|
(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 $
1,015
million
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 $
1,850
million
of
5.875%
notes due in April 2022 plus $7 million of unamortized bond premium. Interest on the notes is payable April 15 and October 15 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. Payment of the principal and interest on the notes is guaranteed by CONSOL Energy.
|
•
|
Advance royalty commitments of $
13
million
with an average interest rate of
7.91%
per annum.
|
•
|
An aggregate principal amount of $
4
million
on a note maturing through
March 2018
.
|
•
|
An aggregate principal amount of $
47
million
of capital leases with a weighted average interest rate of
6.56%
per annum.
|
Declaration Date
|
|
Amount Per Share
|
|
Record Date
|
|
Payment Date
|
February 2, 2015
|
|
$0.0625
|
|
February 17, 2015
|
|
March 5, 2015
|
October 29, 2014
|
|
$0.0625
|
|
November 10, 2014
|
|
December 2, 2014
|
July 30, 2014
|
|
$0.0625
|
|
August 15, 2014
|
|
September 2, 2014
|
April 30, 2014
|
|
$0.0625
|
|
May 12, 2014
|
|
May 30, 2014
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
For the Three Months Ended
|
|
|
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
Total Year
|
||||||||||
2015 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
29.9
|
|
|
30.2
|
|
|
30.6
|
|
|
30.5
|
|
|
121.2
|
|
|||||
Weighted Average Hedge Price/Mcf
|
$
|
4.05
|
|
|
$
|
4.05
|
|
|
$
|
4.05
|
|
|
$
|
4.05
|
|
|
$
|
4.05
|
|
2016 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
23.5
|
|
|
23.5
|
|
|
23.8
|
|
|
23.9
|
|
|
94.7
|
|
|||||
Weighted Average Hedge Price/Mcf
|
$
|
4.11
|
|
|
$
|
4.11
|
|
|
$
|
4.11
|
|
|
$
|
4.11
|
|
|
$
|
4.11
|
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
|
||
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
||
Consolidated Statements of Income for the Years Ended December 31, 2014, 2013 and 2012
|
||
Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2014, 2013 and 2012
|
||
Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013, 2012
|
||
Notes to the Audited Consolidated Financial Statements
|
(Dollars in thousands, except per share data)
|
For the Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Revenues and Other Income:
|
|
|
|
|
|
||||||
Natural Gas, NGLs and Oil Sales
|
$
|
1,028,117
|
|
|
$
|
737,701
|
|
|
$
|
658,820
|
|
Coal Sales
|
2,052,166
|
|
|
2,018,067
|
|
|
2,169,625
|
|
|||
Other Outside Sales
|
276,242
|
|
|
259,783
|
|
|
294,105
|
|
|||
Gas Royalty Interests and Purchased Gas Sales
|
91,427
|
|
|
69,733
|
|
|
52,721
|
|
|||
Freight-Outside Coal
|
28,148
|
|
|
35,438
|
|
|
107,079
|
|
|||
Miscellaneous Other Income
|
207,103
|
|
|
111,483
|
|
|
113,170
|
|
|||
Gain on Sale of Assets
|
43,601
|
|
|
67,480
|
|
|
282,006
|
|
|||
Total Revenue and Other Income
|
3,726,804
|
|
|
3,299,685
|
|
|
3,677,526
|
|
|||
Costs and Expenses:
|
|
|
|
|
|
||||||
Exploration and Production Costs
|
|
|
|
|
|
||||||
Lease Operating Expense
|
118,391
|
|
|
96,601
|
|
|
90,837
|
|
|||
Transportation, Gathering and Compression
|
258,110
|
|
|
201,024
|
|
|
160,579
|
|
|||
Production, Ad Valorem, and Other Fees
|
39,418
|
|
|
28,676
|
|
|
26,145
|
|
|||
Direct Administrative and Selling
|
55,092
|
|
|
49,092
|
|
|
47,565
|
|
|||
Depreciation, Depletion and Amortization
|
314,381
|
|
|
231,809
|
|
|
205,149
|
|
|||
Exploration and Production Related Other Costs
|
23,356
|
|
|
61,104
|
|
|
39,005
|
|
|||
Production Royalty Interests and Purchased Gas Costs
|
77,185
|
|
|
57,865
|
|
|
41,578
|
|
|||
Other Corporate Expenses
|
86,499
|
|
|
95,535
|
|
|
81,033
|
|
|||
General and Administrative
|
64,047
|
|
|
39,047
|
|
|
33,686
|
|
|||
Total Exploration and Production Costs
|
1,036,479
|
|
|
860,753
|
|
|
725,577
|
|
|||
Coal Costs
|
|
|
|
|
|
||||||
Operating and Other Costs
|
1,349,832
|
|
|
1,345,797
|
|
|
1,457,913
|
|
|||
Royalties and Production Taxes
|
100,890
|
|
|
102,128
|
|
|
117,194
|
|
|||
Direct Administrative and Selling
|
44,185
|
|
|
49,018
|
|
|
54,910
|
|
|||
Depreciation, Depletion and Amortization
|
254,914
|
|
|
226,639
|
|
|
219,636
|
|
|||
Freight Expense
|
28,148
|
|
|
35,438
|
|
|
107,079
|
|
|||
General and Administrative Costs
|
45,160
|
|
|
40,047
|
|
|
42,662
|
|
|||
Other Corporate Expenses
|
55,321
|
|
|
55,802
|
|
|
52,900
|
|
|||
Total Coal Costs
|
1,878,450
|
|
|
1,854,869
|
|
|
2,052,294
|
|
|||
Other Costs
|
|
|
|
|
|
||||||
Miscellaneous Operating Expense
|
307,236
|
|
|
315,180
|
|
|
269,653
|
|
|||
General and Administrative Costs
|
788
|
|
|
936
|
|
|
943
|
|
|||
Depreciation, Depletion and Amortization
|
1,896
|
|
|
2,674
|
|
|
2,330
|
|
|||
Loss on Debt Extinguishment
|
95,267
|
|
|
—
|
|
|
—
|
|
|||
Interest Expense
|
223,564
|
|
|
219,198
|
|
|
220,042
|
|
|||
Total Other Costs
|
628,751
|
|
|
537,988
|
|
|
492,968
|
|
|||
Total Costs and Expenses
|
3,543,680
|
|
|
3,253,610
|
|
|
3,270,839
|
|
|||
Earnings Before Income Tax
|
183,124
|
|
|
46,075
|
|
|
406,687
|
|
|||
Income Taxes
|
14,347
|
|
|
(33,189
|
)
|
|
88,728
|
|
|||
Income from Continuing Operations
|
168,777
|
|
|
79,264
|
|
|
317,959
|
|
|||
(Loss) Income from Discontinued Operations, net
|
(5,687
|
)
|
|
579,792
|
|
|
70,114
|
|
|||
Net Income
|
163,090
|
|
|
659,056
|
|
|
388,073
|
|
|||
Less: Net Loss Attributable to Noncontrolling Interests
|
—
|
|
|
(1,386
|
)
|
|
(397
|
)
|
|||
Net Income Attributable to CONSOL Energy Shareholders
|
$
|
163,090
|
|
|
$
|
660,442
|
|
|
$
|
388,470
|
|
|
For the Years Ended December 31,
|
||||||||||
(Dollars in thousands, except per share data)
|
2014
|
|
2013
|
|
2012
|
||||||
Earnings (Loss) Per Share
|
|
|
|
|
|
||||||
Basic
|
|
|
|
|
|
||||||
Income from Continuing Operations
|
$
|
0.73
|
|
|
$
|
0.35
|
|
|
$
|
1.40
|
|
(Loss) Income from Discontinued Operations
|
(0.02
|
)
|
|
2.54
|
|
|
0.31
|
|
|||
Total Basic Earnings Per Share
|
$
|
0.71
|
|
|
$
|
2.89
|
|
|
$
|
1.71
|
|
Dilutive
|
|
|
|
|
|
||||||
Income from Continuing Operations
|
$
|
0.73
|
|
|
$
|
0.35
|
|
|
$
|
1.39
|
|
(Loss) Income from Discontinued Operations
|
(0.03
|
)
|
|
2.52
|
|
|
0.31
|
|
|||
Total Dilutive Earnings Per Share
|
$
|
0.70
|
|
|
$
|
2.87
|
|
|
$
|
1.70
|
|
|
|
|
|
|
|
||||||
Dividends Paid Per Share
|
$
|
0.25
|
|
|
$
|
0.375
|
|
|
$
|
0.625
|
|
|
|
|
|
|
|
||||||
|
For the Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Net Income
|
$
|
163,090
|
|
|
$
|
659,056
|
|
|
$
|
388,073
|
|
Other Comprehensive Income:
|
|
|
|
|
|
||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($56,304), ($276,928), ($77,871))
|
94,989
|
|
|
456,493
|
|
|
129,231
|
|
|||
Net Increase in the Value of Cash Flow Hedge (Net of tax: ($55,767), ($29,407), ($73,593))
|
97,316
|
|
|
45,631
|
|
|
114,240
|
|
|||
Reclassification of Cash Flow Hedges from Other Comprehensive Income to Earnings (Net of tax: $10,465, $53,990, $121,484)
|
(18,288
|
)
|
|
(79,899
|
)
|
|
(189,259
|
)
|
|||
|
|
|
|
|
|
||||||
Other Comprehensive Income
|
174,017
|
|
|
422,225
|
|
|
54,212
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive Income
|
337,107
|
|
|
1,081,281
|
|
|
442,285
|
|
|||
|
|
|
|
|
|
||||||
Less: Net Loss Attributable to Noncontrolling Interests
|
—
|
|
|
(1,386
|
)
|
|
(397
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
337,107
|
|
|
$
|
1,082,667
|
|
|
$
|
442,682
|
|
|
|
|
|
||||
|
December 31,
2014 |
|
December 31,
2013 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
176,989
|
|
|
$
|
327,420
|
|
Accounts and Notes Receivable:
|
|
|
|
||||
Trade
|
259,817
|
|
|
332,574
|
|
||
Notes Receivable
|
—
|
|
|
25,861
|
|
||
Other Receivables
|
347,146
|
|
|
243,973
|
|
||
Inventories (Note 9)
|
101,873
|
|
|
157,914
|
|
||
Deferred Income Taxes (Note 7)
|
66,569
|
|
|
211,303
|
|
||
Recoverable Income Taxes
|
20,401
|
|
|
10,705
|
|
||
Prepaid Expenses
|
193,555
|
|
|
135,842
|
|
||
Total Current Assets
|
1,166,350
|
|
|
1,445,592
|
|
||
Property, Plant and Equipment (Note 11):
|
|
|
|
||||
Property, Plant and Equipment
|
14,674,777
|
|
|
13,578,509
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
4,512,305
|
|
|
4,136,247
|
|
||
Total Property, Plant and Equipment—Net
|
10,162,472
|
|
|
9,442,262
|
|
||
Other Assets:
|
|
|
|
||||
Investment in Affiliates
|
152,958
|
|
|
291,675
|
|
||
Notes Receivable
|
—
|
|
|
125
|
|
||
Other
|
277,750
|
|
|
214,013
|
|
||
Total Other Assets
|
430,708
|
|
|
505,813
|
|
||
|
|
|
|
||||
TOTAL ASSETS
|
$
|
11,759,530
|
|
|
$
|
11,393,667
|
|
|
December 31,
2014 |
|
December 31,
2013 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
531,973
|
|
|
$
|
514,580
|
|
Current Portion of Long-Term Debt (Note 14 and Note 15)
|
13,016
|
|
|
11,455
|
|
||
Other Accrued Liabilities (Note 13)
|
602,972
|
|
|
565,697
|
|
||
Current Liabilities of Discontinued Operations (Note 2)
|
—
|
|
|
28,239
|
|
||
Total Current Liabilities
|
1,147,961
|
|
|
1,119,971
|
|
||
Long-Term Debt:
|
|
|
|
||||
Long-Term Debt (Note 14)
|
3,236,422
|
|
|
3,115,963
|
|
||
Capital Lease Obligations (Note 15)
|
39,456
|
|
|
47,596
|
|
||
Total Long-Term Debt
|
3,275,878
|
|
|
3,163,559
|
|
||
Deferred Credits and Other Liabilities:
|
|
|
|
||||
Deferred Income Taxes (Note 7)
|
325,592
|
|
|
242,643
|
|
||
Postretirement Benefits Other Than Pensions (Note 16)
|
703,680
|
|
|
961,127
|
|
||
Pneumoconiosis Benefits (Note 17)
|
116,941
|
|
|
111,971
|
|
||
Mine Closing (Note 8)
|
306,789
|
|
|
320,723
|
|
||
Gas Well Closing (Note 8)
|
175,369
|
|
|
175,603
|
|
||
Workers’ Compensation (Note 17)
|
75,947
|
|
|
71,468
|
|
||
Salary Retirement (Note 16)
|
109,956
|
|
|
48,252
|
|
||
Reclamation (Note 8)
|
33,788
|
|
|
40,706
|
|
||
Other
|
158,171
|
|
|
131,355
|
|
||
Total Deferred Credits and Other Liabilities
|
2,006,233
|
|
|
2,103,848
|
|
||
TOTAL LIABILITIES
|
6,430,072
|
|
|
6,387,378
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 230,265,463 Issued and Outstanding at December 31, 2014; 229,145,736 Issued and Outstanding at December 31, 2013
|
2,306
|
|
|
2,294
|
|
||
Capital in Excess of Par Value
|
2,424,102
|
|
|
2,364,592
|
|
||
Preferred Stock, 15,000,000 Shares Authorized, None Issued and Outstanding
|
—
|
|
|
—
|
|
||
Retained Earnings
|
3,054,150
|
|
|
2,964,520
|
|
||
Accumulated Other Comprehensive Loss - Continuing Operations
|
(151,100
|
)
|
|
(325,117
|
)
|
||
Common Stock in Treasury, at Cost—No Shares at December 31, 2014 and 2013
|
—
|
|
|
—
|
|
||
Total CONSOL Energy Inc. Stockholders’ Equity
|
5,329,458
|
|
|
5,006,289
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
11,759,530
|
|
|
$
|
11,393,667
|
|
|
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, 2011
|
$
|
2,273
|
|
|
$
|
2,234,775
|
|
|
$
|
2,184,737
|
|
|
$
|
(801,554
|
)
|
|
$
|
(9,346
|
)
|
|
$
|
3,610,885
|
|
|
$
|
—
|
|
|
$
|
3,610,885
|
|
Net Income
|
—
|
|
|
—
|
|
|
388,470
|
|
|
—
|
|
|
—
|
|
|
388,470
|
|
|
(397
|
)
|
|
388,073
|
|
||||||||
Gas Cash Flow Hedge (Net of $47,891 Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
(75,019
|
)
|
|
—
|
|
|
(75,019
|
)
|
|
—
|
|
|
(75,019
|
)
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of ($77,871) Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
129,231
|
|
|
—
|
|
|
129,231
|
|
|
—
|
|
|
129,231
|
|
||||||||
Comprehensive Income (Loss)
|
—
|
|
|
—
|
|
|
388,470
|
|
|
54,212
|
|
|
—
|
|
|
442,682
|
|
|
(397
|
)
|
|
442,285
|
|
||||||||
Issuance of Treasury Stock
|
—
|
|
|
—
|
|
|
(28,378
|
)
|
|
—
|
|
|
8,737
|
|
|
(19,641
|
)
|
|
—
|
|
|
(19,641
|
)
|
||||||||
Issuance of Common Stock
|
11
|
|
|
8,267
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,278
|
|
|
—
|
|
|
8,278
|
|
||||||||
Tax Benefit from Stock-Based Compensation
|
—
|
|
|
6,028
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,028
|
|
|
—
|
|
|
6,028
|
|
||||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
47,838
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,838
|
|
|
—
|
|
|
47,838
|
|
||||||||
Net Change in Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
350
|
|
|
350
|
|
||||||||
Dividends ($0.625 per share)
|
—
|
|
|
—
|
|
|
(142,278
|
)
|
|
—
|
|
|
—
|
|
|
(142,278
|
)
|
|
—
|
|
|
(142,278
|
)
|
||||||||
December 31, 2012
|
2,284
|
|
|
2,296,908
|
|
|
2,402,551
|
|
|
(747,342
|
)
|
|
(609
|
)
|
|
3,953,792
|
|
|
(47
|
)
|
|
3,953,745
|
|
||||||||
Net Income
|
—
|
|
|
—
|
|
|
660,442
|
|
|
—
|
|
|
—
|
|
|
660,442
|
|
|
(1,386
|
)
|
|
659,056
|
|
||||||||
Gas Cash Flow Hedge (Net of $24,583 Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,268
|
)
|
|
—
|
|
|
(34,268
|
)
|
|
—
|
|
|
(34,268
|
)
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of ($276,928) Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
456,493
|
|
|
—
|
|
|
456,493
|
|
|
—
|
|
|
456,493
|
|
||||||||
Comprehensive Income (Loss)
|
—
|
|
|
—
|
|
|
660,442
|
|
|
422,225
|
|
|
—
|
|
|
1,082,667
|
|
|
(1,386
|
)
|
|
1,081,281
|
|
||||||||
Issuance of Treasury Stock
|
—
|
|
|
—
|
|
|
(12,641
|
)
|
|
—
|
|
|
609
|
|
|
(12,032
|
)
|
|
—
|
|
|
(12,032
|
)
|
||||||||
Issuance of Common Stock
|
10
|
|
|
3,717
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,727
|
|
|
—
|
|
|
3,727
|
|
||||||||
Tax Cost from Stock-Based Compensation
|
—
|
|
|
(2,075
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,075
|
)
|
|
—
|
|
|
(2,075
|
)
|
||||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
66,042
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,042
|
|
|
—
|
|
|
66,042
|
|
||||||||
Net Change in Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,433
|
|
|
1,433
|
|
||||||||
Dividends ($0.375 per share)
|
—
|
|
|
—
|
|
|
(85,832
|
)
|
|
—
|
|
|
—
|
|
|
(85,832
|
)
|
|
—
|
|
|
(85,832
|
)
|
||||||||
December 31, 2013
|
2,294
|
|
|
2,364,592
|
|
|
2,964,520
|
|
|
(325,117
|
)
|
|
—
|
|
|
5,006,289
|
|
|
—
|
|
|
5,006,289
|
|
||||||||
Net Income
|
—
|
|
|
—
|
|
|
163,090
|
|
|
—
|
|
|
—
|
|
|
163,090
|
|
|
—
|
|
|
163,090
|
|
||||||||
Gas Cash Flow Hedge (Net of ($45,302) Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
79,028
|
|
|
—
|
|
|
79,028
|
|
|
—
|
|
|
79,028
|
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of ($56,304) Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
94,989
|
|
|
—
|
|
|
94,989
|
|
|
—
|
|
|
94,989
|
|
||||||||
Comprehensive Income
|
—
|
|
|
—
|
|
|
163,090
|
|
|
174,017
|
|
|
—
|
|
|
337,107
|
|
|
—
|
|
|
337,107
|
|
||||||||
Issuance of Treasury Stock
|
—
|
|
|
—
|
|
|
(15,954
|
)
|
|
—
|
|
|
—
|
|
|
(15,954
|
)
|
|
—
|
|
|
(15,954
|
)
|
||||||||
Issuance of Common Stock
|
12
|
|
|
15,004
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,016
|
|
|
—
|
|
|
15,016
|
|
||||||||
Tax Benefit from Stock-Based Compensation
|
—
|
|
|
2,629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,629
|
|
|
—
|
|
|
2,629
|
|
||||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
41,877
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,877
|
|
|
—
|
|
|
41,877
|
|
||||||||
Dividends ($0.25 per share)
|
—
|
|
|
—
|
|
|
(57,506
|
)
|
|
—
|
|
|
—
|
|
|
(57,506
|
)
|
|
—
|
|
|
(57,506
|
)
|
||||||||
December 31, 2014
|
$
|
2,306
|
|
|
$
|
2,424,102
|
|
|
$
|
3,054,150
|
|
|
$
|
(151,100
|
)
|
|
$
|
—
|
|
|
$
|
5,329,458
|
|
|
$
|
—
|
|
|
$
|
5,329,458
|
|
(Dollars in thousands)
|
For the Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net Income
|
$
|
163,090
|
|
|
$
|
659,056
|
|
|
$
|
388,073
|
|
Adjustments to Reconcile Net Income to Net Cash Provided By Continuing Operating Activities:
|
|
|
|
|
|
||||||
Net Loss (Income) from Discontinued Operations
|
5,687
|
|
|
(579,792
|
)
|
|
(70,114
|
)
|
|||
Depreciation, Depletion and Amortization
|
571,191
|
|
|
461,122
|
|
|
427,115
|
|
|||
Stock-Based Compensation
|
41,877
|
|
|
56,987
|
|
|
41,127
|
|
|||
Gain on Sale of Assets
|
(43,601
|
)
|
|
(67,480
|
)
|
|
(282,006
|
)
|
|||
Loss on Debt Extinguishment
|
95,267
|
|
|
—
|
|
|
—
|
|
|||
Deferred Income Taxes
|
(10,430
|
)
|
|
(29,014
|
)
|
|
10,899
|
|
|||
Return on Equity Investment
|
102,174
|
|
|
—
|
|
|
—
|
|
|||
Equity in Earnings of Affiliates
|
(49,791
|
)
|
|
(33,133
|
)
|
|
(27,048
|
)
|
|||
Changes in Operating Assets:
|
|
|
|
|
|
||||||
Accounts and Notes Receivable
|
(97,248
|
)
|
|
135,970
|
|
|
(20,218
|
)
|
|||
Inventories
|
19,933
|
|
|
12,894
|
|
|
21,166
|
|
|||
Prepaid Expenses
|
368
|
|
|
(3,219
|
)
|
|
12,435
|
|
|||
Changes in Other Assets
|
638
|
|
|
31,146
|
|
|
(7,041
|
)
|
|||
Changes in Operating Liabilities:
|
|
|
|
|
|
||||||
Accounts Payable
|
27,465
|
|
|
(99,944
|
)
|
|
(23,918
|
)
|
|||
Accrued Interest
|
(9,868
|
)
|
|
(87
|
)
|
|
110
|
|
|||
Other Operating Liabilities
|
195,431
|
|
|
(39,377
|
)
|
|
(50,900
|
)
|
|||
Other
|
(41,477
|
)
|
|
48,441
|
|
|
37,662
|
|
|||
Net Cash Provided by Continuing Operations
|
970,706
|
|
|
553,570
|
|
|
457,342
|
|
|||
Net Cash (Used In) Provided by Discontinued Operating Activities
|
(33,926
|
)
|
|
105,206
|
|
|
270,771
|
|
|||
Net Cash Provided by Operating Activities
|
936,780
|
|
|
658,776
|
|
|
728,113
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Capital Expenditures
|
(1,493,425
|
)
|
|
(1,496,056
|
)
|
|
(1,245,497
|
)
|
|||
Changes in Restricted Cash
|
—
|
|
|
68,673
|
|
|
(48,294
|
)
|
|||
Proceeds from Sales of Assets
|
356,836
|
|
|
483,969
|
|
|
645,621
|
|
|||
Investments in Equity Affiliates
|
95,207
|
|
|
(35,712
|
)
|
|
(23,451
|
)
|
|||
Net Cash Used in Continuing Operations
|
(1,041,382
|
)
|
|
(979,126
|
)
|
|
(671,621
|
)
|
|||
Net Cash Provided by (Used In) Discontinued Investing Activities
|
—
|
|
|
777,145
|
|
|
(328,789
|
)
|
|||
Net Cash Used in Investing Activities
|
(1,041,382
|
)
|
|
(201,981
|
)
|
|
(1,000,410
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
(Payments on) Proceeds from Miscellaneous Borrowings
|
(22,022
|
)
|
|
(31,544
|
)
|
|
16,195
|
|
|||
(Payments on) Proceeds from Securitization Facility
|
—
|
|
|
(37,846
|
)
|
|
37,846
|
|
|||
Payments on Long-Term Notes, including Redemption Premium
|
(1,843,866
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from Issuance of Long-Term Notes
|
1,859,920
|
|
|
—
|
|
|
—
|
|
|||
Tax Benefit from Stock-Based Compensation
|
2,629
|
|
|
2,929
|
|
|
8,678
|
|
|||
Dividends Paid
|
(57,506
|
)
|
|
(85,832
|
)
|
|
(142,278
|
)
|
|||
Proceeds from Issuance of Common Stock
|
15,016
|
|
|
3,727
|
|
|
8,278
|
|
|||
Issuance of Treasury Stock
|
—
|
|
|
(2,151
|
)
|
|
(9,485
|
)
|
|||
Debt Issuance and Financing Fees
|
—
|
|
|
—
|
|
|
(210
|
)
|
|||
Net Cash Used in Continuing Operations
|
(45,829
|
)
|
|
(150,717
|
)
|
|
(80,976
|
)
|
|||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
(520
|
)
|
|
(601
|
)
|
|||
Net Cash Used in Financing Activities
|
(45,829
|
)
|
|
(151,237
|
)
|
|
(81,577
|
)
|
|||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(150,431
|
)
|
|
305,558
|
|
|
(353,874
|
)
|
|||
Cash and Cash Equivalents at Beginning of Period
|
327,420
|
|
|
21,862
|
|
|
375,736
|
|
|||
Cash and Cash Equivalents at End of Period
|
$
|
176,989
|
|
|
$
|
327,420
|
|
|
$
|
21,862
|
|
|
|
Years
|
Buildings and improvements
|
|
10 to 45
|
Machinery and equipment
|
|
3 to 25
|
Leasehold improvements
|
|
Life of Lease
|
|
For the Years Ended
|
|||||||
|
December 31,
|
|||||||
|
2014
|
|
2013
|
|
2012
|
|||
Anti-Dilutive Options
|
358,731
|
|
|
1,976,549
|
|
|
2,411,963
|
|
Anti-Dilutive Restricted Stock Units
|
—
|
|
|
282,230
|
|
|
8,822
|
|
Anti-Dilutive Performance Share Units
|
—
|
|
|
—
|
|
|
445,847
|
|
Anti-Dilutive Performance Share Options
|
—
|
|
|
802,804
|
|
|
501,744
|
|
|
358,731
|
|
|
3,061,583
|
|
|
3,368,376
|
|
|
For the Years Ended
|
||||||||||
|
December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Income from Continuing Operations
|
168,777
|
|
|
79,264
|
|
|
317,959
|
|
|||
Income (Loss) from Discontinuing Operations
|
(5,687
|
)
|
|
579,792
|
|
|
70,114
|
|
|||
Less: Net Loss Attributable to Noncontrolling Interest
|
—
|
|
|
(1,386
|
)
|
|
(397
|
)
|
|||
Net income attributable to CONSOL Energy Inc. shareholders
|
$
|
163,090
|
|
|
$
|
660,442
|
|
|
$
|
388,470
|
|
Weighted average shares of common stock outstanding:
|
|
|
|
|
|
||||||
Basic
|
229,994,407
|
|
|
228,728,628
|
|
|
227,593,524
|
|
|||
Effect of stock-based compensation awards
|
1,585,871
|
|
|
1,349,314
|
|
|
1,548,243
|
|
|||
Dilutive
|
231,580,278
|
|
|
230,077,942
|
|
|
229,141,767
|
|
|||
Earnings per share:
|
|
|
|
|
|
||||||
Basic (Continuing Operations)
|
$
|
0.73
|
|
|
$
|
0.35
|
|
|
$
|
1.40
|
|
Basic (Discontinuing Operations)
|
(0.02
|
)
|
|
2.54
|
|
|
0.31
|
|
|||
Total Basic
|
$
|
0.71
|
|
|
$
|
2.89
|
|
|
$
|
1.71
|
|
|
|
|
|
|
|
||||||
Dilutive (Continuing Operations)
|
$
|
0.73
|
|
|
$
|
0.35
|
|
|
$
|
1.39
|
|
Dilutive (Discontinuing Operations)
|
(0.03
|
)
|
|
2.52
|
|
|
0.31
|
|
|||
Total Dilutive
|
$
|
0.70
|
|
|
$
|
2.87
|
|
|
$
|
1.70
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
Balance, beginning of year
|
|
229,145,736
|
|
|
228,094,712
|
|
|
227,056,212
|
|
Issuance related to Stock-Based Compensation(1)
|
|
1,119,727
|
|
|
1,051,024
|
|
|
1,038,500
|
|
Balance, end of year
|
|
230,265,463
|
|
|
229,145,736
|
|
|
228,094,712
|
|
|
Gains and Losses on Cash Flow Hedges
|
|
Postretirement Benefits
|
|
Total
|
||||||||||||
Balance at December 31, 2013
|
$
|
42,493
|
|
|
$
|
(367,610
|
)
|
|
$
|
(325,117
|
)
|
||||||
Other comprehensive income before reclassifications
|
97,316
|
|
|
84,441
|
|
|
181,757
|
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
(18,288
|
)
|
|
10,548
|
|
|
(7,740
|
)
|
|||||||||
Other comprehensive income
|
79,028
|
|
|
94,989
|
|
|
174,017
|
|
|||||||||
Balance at December 31, 2014
|
$
|
121,521
|
|
|
$
|
(272,621
|
)
|
|
$
|
(151,100
|
)
|
|
For the Years Ended December 31,
|
||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Derivative Instruments (Note 23)
|
|
|
|
|
|
||||||||||||
Natural gas price swaps
|
$
|
(28,753
|
)
|
|
$
|
(133,889
|
)
|
|
$
|
(310,743
|
)
|
||||||
Tax benefit
|
10,465
|
|
|
53,990
|
|
|
121,484
|
|
|||||||||
Net of tax
|
$
|
(18,288
|
)
|
|
$
|
(79,899
|
)
|
|
$
|
(189,259
|
)
|
||||||
Actuarially Determined Long-Term Liability Adjustments*(Note 16 and Note 17)
|
|
|
|
|
|
||||||||||||
Amortization of prior service costs
|
$
|
(22,381
|
)
|
|
$
|
(32,164
|
)
|
|
$
|
(53,853
|
)
|
||||||
Recognized net actuarial loss
|
46,155
|
|
|
86,481
|
|
|
106,299
|
|
|||||||||
Curtailment gains
|
(36,182
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Settlement loss
|
29,095
|
|
|
39,482
|
|
|
—
|
|
|||||||||
Total
|
16,687
|
|
|
93,799
|
|
|
52,446
|
|
|||||||||
Tax expense
|
(6,139
|
)
|
|
(35,806
|
)
|
|
(19,720
|
)
|
|||||||||
Net of tax
|
$
|
10,548
|
|
|
$
|
57,993
|
|
|
$
|
32,726
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Sales
|
|
$
|
—
|
|
|
$
|
2,598,875
|
|
|
$
|
1,717,926
|
|
(Loss) Income from discontinued operations before income taxes
|
|
$
|
(7,044
|
)
|
|
$
|
969,685
|
|
|
$
|
90,587
|
|
Income taxes benefit (expense)
|
|
1,357
|
|
|
(389,893
|
)
|
|
(20,473
|
)
|
|||
(Loss) Income from discontinued operations
|
|
$
|
(5,687
|
)
|
|
$
|
579,792
|
|
|
$
|
70,114
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Equity in earnings of affiliates
|
|
$
|
49,791
|
|
|
$
|
33,133
|
|
|
$
|
27,048
|
|
Rental income
|
|
45,061
|
|
|
3,518
|
|
|
3,706
|
|
|||
Coal contract settlement
|
|
30,000
|
|
|
—
|
|
|
—
|
|
|||
Gathering revenue
|
|
29,558
|
|
|
7,019
|
|
|
5,866
|
|
|||
Royalty income
|
|
19,653
|
|
|
16,906
|
|
|
16,853
|
|
|||
Right of way issuance
|
|
7,333
|
|
|
4,536
|
|
|
3,966
|
|
|||
Interest income
|
|
2,303
|
|
|
15,889
|
|
|
28,937
|
|
|||
Excess distribution from Equity Affiliate
|
|
1,319
|
|
|
—
|
|
|
—
|
|
|||
Service income
|
|
1,188
|
|
|
3,085
|
|
|
3,203
|
|
|||
PA Turnpike settlement
|
|
—
|
|
|
9,000
|
|
|
—
|
|
|||
Business interruption insurance
|
|
—
|
|
|
5,445
|
|
|
2,300
|
|
|||
Other
|
|
20,897
|
|
|
12,952
|
|
|
21,291
|
|
|||
Total Other Income
|
|
$
|
207,103
|
|
|
$
|
111,483
|
|
|
$
|
113,170
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Interest on debt
|
|
$
|
239,984
|
|
|
$
|
260,233
|
|
|
$
|
256,800
|
|
Interest on other payables, net
|
|
(2,847
|
)
|
|
2,682
|
|
|
1,296
|
|
|||
Interest capitalized
|
|
(13,573
|
)
|
|
(43,717
|
)
|
|
(38,054
|
)
|
|||
Total Interest Expense
|
|
$
|
223,564
|
|
|
$
|
219,198
|
|
|
$
|
220,042
|
|
|
For The Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. Federal
|
$
|
15,625
|
|
|
$
|
6,729
|
|
|
$
|
44,727
|
|
U.S. State
|
7,741
|
|
|
(10,904
|
)
|
|
1,508
|
|
|||
Non-U.S.
|
1,411
|
|
|
—
|
|
|
31,594
|
|
|||
|
24,777
|
|
|
(4,175
|
)
|
|
77,829
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. Federal
|
(10,697
|
)
|
|
(32,125
|
)
|
|
23,300
|
|
|||
U.S. State
|
267
|
|
|
(4,651
|
)
|
|
(14,166
|
)
|
|||
Non-U.S.
|
—
|
|
|
7,762
|
|
|
1,765
|
|
|||
|
(10,430
|
)
|
|
(29,014
|
)
|
|
10,899
|
|
|||
|
|
|
|
|
|
||||||
Total Income Tax Expense (Benefit)
|
$
|
14,347
|
|
|
$
|
(33,189
|
)
|
|
$
|
88,728
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Deferred Tax Assets:
|
|
|
|
||||
Postretirement benefits other than pensions
|
$
|
283,188
|
|
|
$
|
337,836
|
|
Mine closing
|
63,640
|
|
|
37,306
|
|
||
Alternative minimum tax
|
152,149
|
|
|
159,933
|
|
||
Pneumoconiosis benefits
|
45,926
|
|
|
44,580
|
|
||
Workers' compensation
|
32,949
|
|
|
31,008
|
|
||
Salary retirement
|
43,505
|
|
|
14,330
|
|
||
Net operating loss
|
49,638
|
|
|
168,658
|
|
||
Mine subsidence
|
38,456
|
|
|
35,655
|
|
||
Reclamation
|
14,380
|
|
|
20,978
|
|
||
Capital lease
|
19,267
|
|
|
22,489
|
|
||
Equity Partnerships
|
28,316
|
|
|
—
|
|
||
Other
|
159,300
|
|
|
160,567
|
|
||
Total Deferred Tax Assets
|
930,714
|
|
|
1,033,340
|
|
||
Valuation Allowance**
|
(6,096
|
)
|
|
(7,532
|
)
|
||
Net Deferred Tax Assets
|
924,618
|
|
|
1,025,808
|
|
||
|
|
|
|
||||
Deferred Tax Liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(1,065,791
|
)
|
|
(954,007
|
)
|
||
Gas hedge
|
(74,898
|
)
|
|
(27,741
|
)
|
||
Advance mining royalties
|
(37,621
|
)
|
|
(38,105
|
)
|
||
Equity Partnerships
|
—
|
|
|
(27,431
|
)
|
||
Other
|
(5,331
|
)
|
|
(9,864
|
)
|
||
Total Deferred Tax Liabilities
|
(1,183,641
|
)
|
|
(1,057,148
|
)
|
||
|
|
|
|
||||
Net Deferred Tax Liability
|
$
|
(259,023
|
)
|
|
$
|
(31,340
|
)
|
|
For the Years Ended December 31,
|
|||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Statutory U.S. federal income tax rate
|
$
|
64,093
|
|
|
35.0
|
%
|
|
$
|
16,126
|
|
|
35.0
|
%
|
|
$
|
142,340
|
|
|
35.0
|
%
|
Excess tax depletion
|
(43,140
|
)
|
|
(23.6
|
)
|
|
(51,104
|
)
|
|
(110.9
|
)
|
|
(49,572
|
)
|
|
(12.2
|
)
|
|||
Effect of medicare prescription drug, improvement and modernization act of 2003
|
631
|
|
|
0.3
|
|
|
2,112
|
|
|
4.6
|
|
|
2,112
|
|
|
0.5
|
|
|||
Effect of domestic production activities
|
(1,522
|
)
|
|
(0.8
|
)
|
|
5,680
|
|
|
12.3
|
|
|
(7,215
|
)
|
|
(1.8
|
)
|
|||
Federal and state tax accrual to tax return reconciliation
|
(8,331
|
)
|
|
(4.5
|
)
|
|
(1,406
|
)
|
|
(3.1
|
)
|
|
6,004
|
|
|
1.5
|
|
|||
IRS and state tax examination settlements
|
(5,124
|
)
|
|
(2.8
|
)
|
|
3
|
|
|
—
|
|
|
(925
|
)
|
|
(0.2
|
)
|
|||
Net effect of state income taxes
|
5,249
|
|
|
2.9
|
|
|
(2,399
|
)
|
|
(5.2
|
)
|
|
(8,737
|
)
|
|
(2.1
|
)
|
|||
Effect of releasing valuation allowance
|
(1,436
|
)
|
|
(0.8
|
)
|
|
(4,659
|
)
|
|
(10.1
|
)
|
|
—
|
|
|
—
|
|
|||
Effect of foreign tax
|
1,411
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
1,765
|
|
|
0.4
|
|
|||
Other
|
2,516
|
|
|
1.3
|
|
|
2,458
|
|
|
5.3
|
|
|
2,956
|
|
|
0.7
|
|
|||
Income Tax Expense / Effective Rate
|
$
|
14,347
|
|
|
7.8
|
%
|
|
$
|
(33,189
|
)
|
|
(72.1
|
)%
|
|
$
|
88,728
|
|
|
21.8
|
%
|
|
For the Years Ended
|
||||||
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Balance at beginning of period
|
$
|
34,786
|
|
|
$
|
34,786
|
|
Increase in unrecognized tax benefits resulting from tax positions taken during current period
|
—
|
|
|
—
|
|
||
Increase (decrease) in unrecognized tax benefits resulting from tax positions taken during prior periods
|
4,265
|
|
|
—
|
|
||
Reduction in unrecognized tax benefits as a result of the lapse of the applicable statute of limitations
|
(2,540
|
)
|
|
—
|
|
||
Reduction of unrecognized tax benefits as a result of a settlement with taxing authorities
|
(32,246
|
)
|
|
—
|
|
||
Balance at end of period
|
$
|
4,265
|
|
|
$
|
34,786
|
|
|
|
As of December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Balance at beginning of period
|
|
$
|
600,875
|
|
|
$
|
539,177
|
|
Accretion expense
|
|
42,608
|
|
|
41,909
|
|
||
Payments
|
|
(52,339
|
)
|
|
(38,198
|
)
|
||
Revisions in estimated cash flows
|
|
(2,069
|
)
|
|
42,558
|
|
||
Other
|
|
(13,546
|
)
|
|
15,429
|
|
||
Balance at end of period
|
|
$
|
575,529
|
|
|
$
|
600,875
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Coal
|
$
|
19,242
|
|
|
$
|
31,944
|
|
Merchandise for resale
|
—
|
|
|
38,263
|
|
||
Supplies
|
82,631
|
|
|
87,707
|
|
||
Total Inventories
|
$
|
101,873
|
|
|
$
|
157,914
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Coal & other plant and equipment
|
3,726,514
|
|
|
3,681,051
|
|
||
Intangible drilling cost
|
2,798,394
|
|
|
1,937,336
|
|
||
Proven properties
|
1,768,007
|
|
|
1,670,404
|
|
||
Unproven properties
|
1,540,835
|
|
|
1,463,406
|
|
||
Coal properties and surface lands
|
1,358,306
|
|
|
1,404,056
|
|
||
Gathering equipment
|
1,088,238
|
|
|
1,058,008
|
|
||
Wells and related equipment
|
716,748
|
|
|
688,548
|
|
||
Airshafts
|
468,924
|
|
|
397,466
|
|
||
Leased coal lands
|
263,946
|
|
|
393,372
|
|
||
Coal advance mining royalties
|
386,245
|
|
|
381,348
|
|
||
Mine development
|
414,501
|
|
|
354,607
|
|
||
Other gas assets
|
123,539
|
|
|
126,239
|
|
||
Gas advance royalties
|
20,580
|
|
|
22,668
|
|
||
Total Property, Plant and Equipment
|
14,674,777
|
|
|
13,578,509
|
|
||
Less Accumulated Depreciation, Depletion and Amortization
|
4,512,305
|
|
|
4,136,247
|
|
||
Total Net Property, Plant and Equipment
|
$
|
10,162,472
|
|
|
$
|
9,442,262
|
|
|
|
December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Unproven gas properties
|
|
$
|
1,540,835
|
|
|
$
|
1,463,406
|
|
Coal properties
|
|
477,444
|
|
|
273,242
|
|
||
Mine development
|
|
11,984
|
|
|
238,356
|
|
||
Leased coal lands
|
|
50,044
|
|
|
99,506
|
|
||
Coal advance mining royalties
|
|
52,009
|
|
|
48,043
|
|
||
Airshafts
|
|
52,194
|
|
|
38,794
|
|
||
Gas advance royalties
|
|
20,580
|
|
|
22,668
|
|
||
Total
|
|
$
|
2,205,090
|
|
|
$
|
2,184,015
|
|
|
|
December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Subsidence liability
|
|
$
|
103,343
|
|
|
$
|
98,573
|
|
Royalties
|
|
52,456
|
|
|
34,110
|
|
||
Accrued Interest
|
|
51,404
|
|
|
63,600
|
|
||
Columbia Energy Ventures Majorsville Sublease
|
|
49,533
|
|
|
—
|
|
||
Accrued payroll and benefits
|
|
37,293
|
|
|
38,953
|
|
||
Short-term incentive compensation
|
|
36,272
|
|
|
30,371
|
|
||
Accrued other taxes
|
|
17,951
|
|
|
26,305
|
|
||
Uncertain income tax positions
|
|
—
|
|
|
28,530
|
|
||
Other
|
|
100,284
|
|
|
87,407
|
|
||
Current portion of long-term liabilities:
|
|
|
|
|
||||
Postretirement benefits other than pensions
|
|
57,279
|
|
|
60,847
|
|
||
Mine closing
|
|
32,222
|
|
|
30,320
|
|
||
Gas well closing
|
|
21,286
|
|
|
23,971
|
|
||
Workers' compensation
|
|
15,122
|
|
|
15,014
|
|
||
Salary retirement
|
|
9,339
|
|
|
4,593
|
|
||
Pneumoconiosis benefits
|
|
9,156
|
|
|
9,211
|
|
||
Reclamation
|
|
6,075
|
|
|
9,552
|
|
||
Long-term disability
|
|
3,957
|
|
|
4,340
|
|
||
Total Other Accrued Liabilities
|
|
$
|
602,972
|
|
|
$
|
565,697
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Debt:
|
|
|
|
||||
Senior notes due April 2017 at 8.00%, issued at par value
|
$
|
—
|
|
|
$
|
1,500,000
|
|
Senior notes due April 2020 at 8.25%, issued at par value
|
1,014,800
|
|
|
1,250,000
|
|
||
Senior notes due March 2021 at 6.375%, issued at par value
|
250,000
|
|
|
250,000
|
|
||
Senior notes due April 2022 at 5.875% including Amortization of Bond Premium
|
1,856,506
|
|
|
—
|
|
||
MEDCO revenue bonds in series due September 2025 at 5.75%
|
102,865
|
|
|
102,865
|
|
||
Advance royalty commitments (7.91% and 7.93% weighted average interest rate for December 31, 2014 and 2013, respectively)
|
13,473
|
|
|
11,182
|
|
||
Other long-term notes maturing at various dates through 2031 (total value of $4,473 and $5,923 less unamortized discount of $643 and $1,050 at December 31, 2014 and December 31,2013, respectively).
|
3,830
|
|
|
4,873
|
|
||
|
3,241,474
|
|
|
3,118,920
|
|
||
Less amounts due in one year *
|
5,052
|
|
|
2,957
|
|
||
Long-Term Debt
|
$
|
3,236,422
|
|
|
$
|
3,115,963
|
|
Year ended December 31,
|
Amount
|
||
2015
|
$
|
4,480
|
|
2016
|
4,454
|
|
|
2017
|
2,944
|
|
|
2018
|
1,266
|
|
|
2019
|
904
|
|
|
Thereafter
|
3,235,692
|
|
|
Total Long-Term Debt Maturities
|
$
|
3,249,740
|
|
|
|
Capital
|
|
Operating
|
||||
|
|
Leases
|
|
Leases
|
||||
Year Ended December 31,
|
|
|
|
|
||||
2015
|
|
$
|
11,074
|
|
|
$
|
104,232
|
|
2016
|
|
9,761
|
|
|
94,421
|
|
||
2017
|
|
8,774
|
|
|
87,210
|
|
||
2018
|
|
8,269
|
|
|
60,705
|
|
||
2019
|
|
7,511
|
|
|
25,068
|
|
||
Thereafter
|
|
13,483
|
|
|
78,954
|
|
||
Total minimum lease payments
|
|
$
|
58,872
|
|
|
$
|
450,590
|
|
Less amount representing interest (1.50% – 7.36%)
|
|
11,452
|
|
|
|
|||
Present value of minimum lease payments
|
|
47,420
|
|
|
|
|||
Less amount due in one year
|
|
7,964
|
|
|
|
|||
Total Long-Term Capital Lease Obligation
|
|
$
|
39,456
|
|
|
|
2015
|
2016
|
2017
|
2018
|
2019
|
Thereafter
|
Total
|
||||||||||||||||||||
$
|
26,685
|
|
|
$
|
26,685
|
|
|
$
|
26,685
|
|
|
$
|
26,685
|
|
|
$
|
13,343
|
|
|
$
|
—
|
|
|
$
|
120,083
|
|
2015
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Total
|
|||||||||||||||
$
|
8,561
|
|
|
$
|
7,637
|
|
|
$
|
4,496
|
|
|
$
|
2,992
|
|
|
$
|
1,701
|
|
|
$
|
627
|
|
|
$
|
26,014
|
|
•
|
Represented hourly retirees are eligible to participate based upon the terms of the National Bituminous Coal Wage Agreement of 2011 or "The Coal Act."
|
•
|
For salaried or non-represented hourly retirees hired before January 1, 2007 that did not work in a corporate or operational support position, the eligibility requirement is either age 55 with 20 years of service or age 62 with 15 years of service for traditional retiree health coverage.
|
•
|
Salaried or non-represented hourly retirees hired or re-hired on or after January 1, 2007 that did not work in a corporate or operational support position receive a retiree medical spending allowance of $2,250 per year for each year of service at retirement.
|
•
|
Retirees who worked in corporate or operational support positions at retirement receive a fixed annual retiree medical contribution into a Health Reimbursement Account. The amount of the contribution is dependent on several factors, and the money in the account can be used to help pay for a commercial medical plan, Medicare Part B or Part D premiums, and other qualified medical expenses
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
at December 31,
|
|
at December 31,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of period
|
|
$
|
812,644
|
|
|
$
|
953,102
|
|
|
$
|
1,021,974
|
|
|
$
|
3,018,172
|
|
Service cost
|
|
17,187
|
|
|
20,865
|
|
|
7,089
|
|
|
18,680
|
|
||||
Interest cost
|
|
35,363
|
|
|
36,829
|
|
|
44,177
|
|
|
111,687
|
|
||||
Actuarial loss (gain)
|
|
136,995
|
|
|
(82,718
|
)
|
|
66,695
|
|
|
(73,632
|
)
|
||||
Plan amendments
|
|
—
|
|
|
—
|
|
|
(315,439
|
)
|
|
—
|
|
||||
Plan curtailments
|
|
(21,624
|
)
|
|
(6,551
|
)
|
|
—
|
|
|
—
|
|
||||
Plan settlements
|
|
(82,776
|
)
|
|
(86,925
|
)
|
|
—
|
|
|
(1,891,057
|
)
|
||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
1,643
|
|
|
6,150
|
|
||||
Benefits and other payments
|
|
(27,318
|
)
|
|
(21,958
|
)
|
|
(65,180
|
)
|
|
(168,026
|
)
|
||||
Benefit obligation at end of period
|
|
$
|
870,471
|
|
|
$
|
812,644
|
|
|
$
|
760,959
|
|
|
$
|
1,021,974
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of period
|
|
$
|
768,831
|
|
|
$
|
728,161
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
|
66,025
|
|
|
94,084
|
|
|
—
|
|
|
—
|
|
||||
Company contributions
|
|
26,414
|
|
|
55,469
|
|
|
63,537
|
|
|
161,876
|
|
||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
1,643
|
|
|
6,150
|
|
||||
Benefits and other payments
|
|
(27,318
|
)
|
|
(21,958
|
)
|
|
(65,180
|
)
|
|
(168,026
|
)
|
||||
Plan settlements
|
|
(82,776
|
)
|
|
(86,925
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets at end of period
|
|
$
|
751,176
|
|
|
$
|
768,831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Funded status:
|
|
|
|
|
|
|
|
|
||||||||
Noncurrent assets
|
|
$
|
—
|
|
|
$
|
9,032
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
|
(9,339
|
)
|
|
(4,593
|
)
|
|
(57,279
|
)
|
|
(60,847
|
)
|
||||
Noncurrent liabilities
|
|
(109,956
|
)
|
|
(48,252
|
)
|
|
(703,680
|
)
|
|
(961,127
|
)
|
||||
Net obligation recognized
|
|
$
|
(119,295
|
)
|
|
$
|
(43,813
|
)
|
|
$
|
(760,959
|
)
|
|
$
|
(1,021,974
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts recognized in accumulated other comprehensive income consist of:
|
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss
|
|
$
|
334,362
|
|
|
$
|
286,637
|
|
|
$
|
471,085
|
|
|
$
|
433,073
|
|
Prior service credit
|
|
(2,862
|
)
|
|
(4,629
|
)
|
|
(292,728
|
)
|
|
(34,086
|
)
|
||||
Net amount recognized (before tax effect)
|
|
$
|
331,500
|
|
|
$
|
282,008
|
|
|
$
|
178,357
|
|
|
$
|
398,987
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||
|
For the Years Ended December 31,
|
|
For the Years Ended December 31,
|
||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
17,187
|
|
|
$
|
20,865
|
|
|
$
|
20,466
|
|
|
$
|
7,089
|
|
|
$
|
18,680
|
|
|
$
|
18,817
|
|
Interest cost
|
35,363
|
|
|
36,829
|
|
|
37,586
|
|
|
44,177
|
|
|
111,687
|
|
|
135,695
|
|
||||||
Expected return on plan assets
|
(51,400
|
)
|
|
(51,814
|
)
|
|
(46,157
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service (credits)
|
(1,217
|
)
|
|
(1,611
|
)
|
|
(1,630
|
)
|
|
(21,163
|
)
|
|
(30,552
|
)
|
|
(51,828
|
)
|
||||||
Recognized net actuarial loss
|
23,927
|
|
|
37,853
|
|
|
47,834
|
|
|
28,682
|
|
|
66,417
|
|
|
80,875
|
|
||||||
Curtailment gain
|
(549
|
)
|
|
(374
|
)
|
|
—
|
|
|
(35,633
|
)
|
|
(39,650
|
)
|
|
—
|
|
||||||
Settlement loss (gain)
|
29,095
|
|
|
39,482
|
|
|
—
|
|
|
—
|
|
|
(1,348,129
|
)
|
|
—
|
|
||||||
Net periodic benefit cost (credit)
|
$
|
52,406
|
|
|
$
|
81,230
|
|
|
$
|
58,099
|
|
|
$
|
23,152
|
|
|
$
|
(1,221,547
|
)
|
|
$
|
183,559
|
|
|
|
|
|
Other
|
||||
|
|
Pension
|
|
Postretirement
|
||||
|
|
Benefits
|
|
Benefits
|
||||
Prior service credit recognition
|
|
$
|
(704
|
)
|
|
$
|
(58,546
|
)
|
Actuarial loss recognition
|
|
$
|
27,760
|
|
|
$
|
35,705
|
|
|
|
As of December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Projected benefit obligation
|
|
$
|
870,471
|
|
|
$
|
52,845
|
|
Accumulated benefit obligation
|
|
$
|
834,811
|
|
|
$
|
50,820
|
|
Fair value of plan assets
|
|
$
|
751,176
|
|
|
$
|
—
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||
|
|
For the Year Ended
|
|
For the Year Ended
|
||||||||
|
|
December 31,
|
|
December 31,
|
||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Discount rate
|
|
4.07
|
%
|
|
4.87
|
%
|
|
3.80
|
%
|
|
4.88
|
%
|
Rate of compensation increase
|
|
3.80
|
%
|
|
4.23
|
%
|
|
—
|
|
|
—
|
|
|
|
Pension Benefits at
|
|
Other Postretirement Benefits at
|
||||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||
Discount rate
|
|
4.87
|
%
|
|
4.00
|
%
|
|
4.50
|
%
|
|
4.88
|
%
|
|
4.05
|
%
|
|
4.51
|
%
|
Expected long-term return on plan assets
|
|
7.75
|
%
|
|
7.75
|
%
|
|
8.00
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Rate of compensation increase
|
|
4.21
|
%
|
|
3.77
|
%
|
|
3.82
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
At December 31,
|
|||||||
|
|
2014
|
|
2013
|
|
2012
|
|||
Health care cost trend rate for next year
|
|
6.03
|
%
|
|
6.17
|
%
|
|
6.30
|
%
|
Rate to which the cost trend is assumed to decline (ultimate trend rate)
|
|
4.50
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
Year that the rate reaches ultimate trend rate
|
|
2026
|
|
|
2026
|
|
|
2026
|
|
|
|
1-Percentage
|
|
1-Percentage
|
||||
|
|
Point Increase
|
|
Point Decrease
|
||||
Effect on total of service and interest cost components
|
|
$
|
6,975
|
|
|
$
|
(5,779
|
)
|
Effect on accumulated postretirement benefit obligation
|
|
$
|
88,174
|
|
|
$
|
(74,274
|
)
|
|
|
0.25 Percentage
|
|
0.25 Percentage
|
||||
|
|
Point Increase
|
|
Point Decrease
|
||||
Pension benefit costs (decrease) increase
|
|
$
|
(1,955
|
)
|
|
$
|
1,914
|
|
Other postemployment benefits costs (decrease) increase
|
|
$
|
(3,476
|
)
|
|
$
|
3,663
|
|
|
|
Fair Value Measurements at December 31, 2014
|
|
Fair Value Measurements at December 31, 2013
|
||||||||||||||||||||||||||||
|
|
|
|
Quoted
|
|
|
|
|
|
|
|
Quoted
|
|
|
|
|
||||||||||||||||
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
||||||||||||||||
|
|
|
|
Active
|
|
|
|
|
|
|
|
Active
|
|
|
|
|
||||||||||||||||
|
|
|
|
Markets for
|
|
Significant
|
|
Significant
|
|
|
|
Markets for
|
|
Significant
|
|
Significant
|
||||||||||||||||
|
|
|
|
Identical
|
|
Observable
|
|
Unobservable
|
|
|
|
Identical
|
|
Observable
|
|
Unobservable
|
||||||||||||||||
|
|
|
|
Assets
|
|
Inputs
|
|
Inputs
|
|
|
|
Assets
|
|
Inputs
|
|
Inputs
|
||||||||||||||||
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash/Accrued Income
|
|
$
|
650
|
|
|
$
|
650
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
634
|
|
|
$
|
634
|
|
|
$
|
—
|
|
|
$
|
—
|
|
US Equities (a)
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
||||||||
Mercer Collective Trusts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
US Large Cap Growth Equity (b)
|
|
53,617
|
|
|
—
|
|
|
53,617
|
|
|
—
|
|
|
56,006
|
|
|
—
|
|
|
56,006
|
|
|
—
|
|
||||||||
US Large Cap Value Equity (c)
|
|
53,090
|
|
|
—
|
|
|
53,090
|
|
|
—
|
|
|
56,802
|
|
|
—
|
|
|
56,802
|
|
|
—
|
|
||||||||
US Small/Mid Cap Growth Equity (d)
|
|
27,642
|
|
|
—
|
|
|
27,642
|
|
|
—
|
|
|
28,530
|
|
|
—
|
|
|
28,530
|
|
|
—
|
|
||||||||
US Small/Mid Cap Value Equity (e)
|
|
26,473
|
|
|
—
|
|
|
26,473
|
|
|
—
|
|
|
28,552
|
|
|
—
|
|
|
28,552
|
|
|
—
|
|
||||||||
US Core Fixed Income (f)
|
|
36,681
|
|
|
—
|
|
|
36,681
|
|
|
—
|
|
|
35,533
|
|
|
—
|
|
|
35,533
|
|
|
—
|
|
||||||||
Non-US Core Equity (g)
|
|
115,783
|
|
|
—
|
|
|
115,783
|
|
|
—
|
|
|
126,712
|
|
|
—
|
|
|
126,712
|
|
|
—
|
|
||||||||
Emerging Markets Equity (h)
|
|
27,150
|
|
|
—
|
|
|
27,150
|
|
|
—
|
|
|
29,778
|
|
|
—
|
|
|
29,778
|
|
|
—
|
|
||||||||
Global Low Volatility Equity (i)
|
|
68,481
|
|
|
—
|
|
|
68,481
|
|
|
—
|
|
|
70,138
|
|
|
—
|
|
|
70,138
|
|
|
—
|
|
||||||||
US Long Duration Investment Grade Fixed Income (j)
|
|
57,713
|
|
|
—
|
|
|
57,713
|
|
|
—
|
|
|
55,593
|
|
|
—
|
|
|
55,593
|
|
|
—
|
|
||||||||
US Long Duration Fixed Income (k)
|
|
34,728
|
|
|
—
|
|
|
34,728
|
|
|
—
|
|
|
33,489
|
|
|
—
|
|
|
33,489
|
|
|
—
|
|
||||||||
US Large Cap Passive Equity (l)
|
|
75,219
|
|
|
—
|
|
|
75,219
|
|
|
—
|
|
|
75,468
|
|
|
—
|
|
|
75,468
|
|
|
—
|
|
||||||||
US Passive Fixed Income (m)
|
|
21,511
|
|
|
—
|
|
|
21,511
|
|
|
—
|
|
|
20,287
|
|
|
—
|
|
|
20,287
|
|
|
—
|
|
||||||||
US Long Duration Passive Fixed Income (n)
|
|
33,149
|
|
|
—
|
|
|
33,149
|
|
|
—
|
|
|
34,108
|
|
|
—
|
|
|
34,108
|
|
|
—
|
|
||||||||
US Ultra Long Duration Fixed Income (o)
|
|
12,555
|
|
|
—
|
|
|
12,555
|
|
|
—
|
|
|
7,656
|
|
|
—
|
|
|
7,656
|
|
|
—
|
|
||||||||
US Active Long Corporate Investment (p)
|
|
101,420
|
|
|
—
|
|
|
101,420
|
|
|
—
|
|
|
105,412
|
|
|
—
|
|
|
105,412
|
|
|
—
|
|
||||||||
Long Strips Fixed Income (q)
|
|
3,276
|
|
|
—
|
|
|
3,276
|
|
|
—
|
|
|
2,022
|
|
|
—
|
|
|
2,022
|
|
|
—
|
|
||||||||
Opportunistic Fixed Income (r)
|
|
2,026
|
|
|
—
|
|
|
2,026
|
|
|
—
|
|
|
2,097
|
|
|
—
|
|
|
2,097
|
|
|
—
|
|
||||||||
Total
|
|
$
|
751,176
|
|
|
$
|
662
|
|
|
$
|
750,514
|
|
|
$
|
—
|
|
|
$
|
768,831
|
|
|
$
|
648
|
|
|
$
|
768,183
|
|
|
$
|
—
|
|
(a)
|
This category includes investments in US common stocks and corporate debt.
|
(b)
|
This category invests primarily in common stock of large cap companies in the U.S. with above average earnings growth and revenue expectations. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Russell 1000 Growth Index.
|
(c)
|
This category invests primarily in U.S. large cap companies that appear to be undervalued relative to their intrinsic value. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Russell 1000 Value Index.
|
(d)
|
This category invests in small to mid-sized U.S. companies with above average earnings growth and revenue expectations. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The smaller cap orientation of the strategy requires the
|
(e)
|
This category invests in small to mid-sized U.S. companies that appear to be undervalued relative to their intrinsic value. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The smaller cap orientation of the strategy requires the investment team to be cognizant of liquidity and capital constraints, which are monitored on an ongoing basis. The strategy is benchmarked to the Russell 2500 Value Index.
|
(f)
|
This category invests primarily in U.S. dollar-denominated investment grade and government securities. It may also invest opportunistically in out-of-benchmark positions including U.S. high yield, non-U.S. bonds, and Treasury Inflation-Protected Securities (TIPs). The strategy seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics, and total portfolio duration is targeted to be within 20% of the benchmark’s duration. Total exposure to high yield issues is typically less than 10%, inclusive of direct investment in high yield and exposure through other core fixed income funds. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Barclays Capital Aggregate Index.
|
(g)
|
This category invests in all cap companies primarily operating in developed non-US markets, with some exposure to emerging markets. The strategy targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Total exposure to emerging markets is typically 10-15%, inclusive of direct investment in emerging markets and exposure through other non-U.S. equity funds. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the MSCI EAFE Index.
|
(h)
|
This category invests in companies operating in non-US emerging markets. The strategy targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the MSCI Emerging Markets Index.
|
(i)
|
This category invests in companies operating in developed markets, globally. The strategy targets a diversified portfolio of equity securities issued by companies which the investment managers believe will exhibit less volatility in their price performance relative to the broad equity market as described by the MSCI World Index. The strategy is benchmarked to the MSCI World Index.
|
(j)
|
This category invests in a passively managed U.S. long duration corporate investment grade portfolio at a 90% weight and a passively managed U.S. Long Treasury portfolio at a 10% weight. It seeks to provide broad exposure to U.S. long duration investment grade credit while allowing for short term liquidity through a strategic allocation to US Treasuries. The strategy is benchmarked 90% to the Barclays Capital U.S. Long Credit Index and 10% to the Barclays Capital Long Treasury.
|
(k)
|
This category invests primarily in U.S. dollar denominated investment grade bonds and government securities with durations between 9 and 15 years. It may also invest opportunistically in out-of-benchmark positions including U.S. high yield, non-U.S. bonds, municipal bonds, and TIPs. The strategy seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Barclays Capital U.S. Long Government/Credit Index.
|
(l)
|
This category invests in common stock of U.S. large cap companies. The strategy is benchmarked to the S&P 500 Index.
|
(m)
|
This category invests primarily in U.S. dollar-denominated investment grade bonds and government securities. The strategy and its underlying passive investments are benchmarked to the Barclays Capital Aggregate Index.
|
(n)
|
This category invests primarily in U.S. dollar-denominated investment grade bonds and government securities with durations between 9 and 15 years. The strategy and its underlying passive investments are benchmarked to the Barclays Capital Long Government/Credit Index.
|
(o)
|
This category seeks to reduce the volatility of the plan’s funded status and extend the duration of the assets by investing in a series of ultra long duration portfolios with target durations of up to 35 years. Each underlying portfolio is managed by a sub-advisor and consists of five interest rate swaps with sequential target or maturity dates, with the longest dated portfolio maturing in 2045. The interest rate swaps are fully collateralized, resulting in no leverage. The cash collateral is invested by the sub-advisor in an actively managed cash strategy that seeks to provide a return in excess of 3 month LIBOR. The ultra long duration strategy is used in conjunction with liability driven investing solutions, which seek to align the duration of the assets to the plan’s liabilities. The Strategy is benchmarked to a Custom Liability Benchmark Portfolio.
|
(p)
|
This category invests in a U.S. long duration corporate investment grade portfolio at a 90% weight and a U.S. long treasury portfolio at a 10% weight. It seeks to provide broad exposure to U.S. long duration investment grade corporate bonds with an emphasis on reducing default risk through active management while allowing for short term liquidity through a
|
(q)
|
This category invests primarily in long dated U.S. Treasury STRIPS often with maturities greater than 20 years. The strategy and its underlying passive investments are benchmarked to the Barclays Capital U.S. 20+ Year STRIPS Index.
|
(r)
|
This category invests primarily in fixed income securities from issuers either located in developing/emerging markets or those rated below investment grade (high yield), globally. The strategy is benchmarked to a blended index of 50% JP Morgan Government Bond Index Emerging Markets Global Diversified and 50% Bank of America/Merrill Lynch Global High Yield Index.
|
|
|
|
|
Other
|
|||||
|
|
Pension
|
|
Postretirement
|
|||||
|
|
Benefits
|
|
Benefits
|
|||||
2015
|
|
|
$
|
59,425
|
|
|
$
|
57,279
|
|
2016
|
|
|
$
|
50,145
|
|
|
$
|
57,336
|
|
2017
|
|
|
$
|
49,854
|
|
|
$
|
57,180
|
|
2018
|
|
|
$
|
50,951
|
|
|
$
|
56,691
|
|
2019
|
|
|
$
|
52,457
|
|
|
$
|
56,007
|
|
Year 2020-2024
|
|
|
$
|
263,337
|
|
|
$
|
200,261
|
|
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||
|
|
at December 31,
|
|
at December 31,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of period
|
|
$
|
121,183
|
|
|
$
|
184,079
|
|
|
$
|
85,096
|
|
|
$
|
179,589
|
|
State administrative fees and insurance bond premiums
|
|
—
|
|
|
—
|
|
|
3,352
|
|
|
5,324
|
|
||||
Service, legal and administrative cost
|
|
5,674
|
|
|
8,168
|
|
|
9,781
|
|
|
15,943
|
|
||||
Interest cost
|
|
5,537
|
|
|
7,031
|
|
|
3,577
|
|
|
6,401
|
|
||||
Actuarial loss (gain)
|
|
5,578
|
|
|
(18,020
|
)
|
|
3,805
|
|
|
11,806
|
|
||||
Benefits paid
|
|
(11,874
|
)
|
|
(10,423
|
)
|
|
(15,523
|
)
|
|
(28,659
|
)
|
||||
Settlements
|
|
—
|
|
|
(49,652
|
)
|
|
(347
|
)
|
|
(105,308
|
)
|
||||
Benefit obligation at end of period
|
|
$
|
126,098
|
|
|
$
|
121,183
|
|
|
$
|
89,741
|
|
|
$
|
85,096
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,327
|
|
|
$
|
1,386
|
|
Current liabilities
|
|
(9,156
|
)
|
|
(9,211
|
)
|
|
(15,122
|
)
|
|
(15,014
|
)
|
||||
Noncurrent liabilities
|
|
(116,942
|
)
|
|
(111,972
|
)
|
|
(75,946
|
)
|
|
(71,468
|
)
|
||||
Net obligation recognized
|
|
$
|
(126,098
|
)
|
|
$
|
(121,183
|
)
|
|
$
|
(89,741
|
)
|
|
$
|
(85,096
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts recognized in accumulated other comprehensive income consist of:
|
|
|
|
|
|
|
|
|
||||||||
Net actuarial gain
|
|
$
|
(68,588
|
)
|
|
$
|
(80,363
|
)
|
|
$
|
(9,382
|
)
|
|
$
|
(13,569
|
)
|
Net amount recognized (before tax effect)
|
|
$
|
(68,588
|
)
|
|
$
|
(80,363
|
)
|
|
$
|
(9,382
|
)
|
|
$
|
(13,569
|
)
|
|
CWP
|
|
Workers’ Compensation
|
||||||||||||||||||||
|
For the Years Ended
|
|
For the Years Ended
|
||||||||||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Service cost
|
$
|
5,674
|
|
|
$
|
8,168
|
|
|
$
|
7,711
|
|
|
$
|
9,781
|
|
|
$
|
15,943
|
|
|
$
|
17,126
|
|
Interest cost
|
5,537
|
|
|
7,031
|
|
|
7,964
|
|
|
3,577
|
|
|
6,401
|
|
|
7,113
|
|
||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
(395
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recognized net actuarial gain
|
(6,196
|
)
|
|
(16,384
|
)
|
|
(19,338
|
)
|
|
(382
|
)
|
|
(2,630
|
)
|
|
(3,944
|
)
|
||||||
State administrative fees and insurance bond premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
3,352
|
|
|
5,324
|
|
|
6,727
|
|
||||||
Settlement gain
|
—
|
|
|
(119,881
|
)
|
|
—
|
|
|
—
|
|
|
(121,838
|
)
|
|
—
|
|
||||||
Net periodic cost (credit)
|
$
|
5,015
|
|
|
$
|
(121,066
|
)
|
|
$
|
(4,058
|
)
|
|
$
|
16,328
|
|
|
$
|
(96,800
|
)
|
|
$
|
27,022
|
|
|
|
|
|
Workers'
|
||||
|
|
CWP
|
|
Compensation
|
||||
|
|
Benefits
|
|
Benefits
|
||||
Actuarial gain recognition
|
|
$
|
(5,576
|
)
|
|
$
|
(30
|
)
|
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||||
|
|
For the Years Ended
|
|
For the Years Ended
|
||||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||||
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
Benefit obligations
|
|
4.21
|
%
|
|
4.75
|
%
|
|
4.03
|
%
|
|
3.84
|
%
|
|
4.57
|
%
|
|
3.95
|
%
|
Net periodic cost (benefit)
|
|
4.75
|
%
|
|
4.03
|
%
|
|
4.46
|
%
|
|
4.57
|
%
|
|
3.95
|
%
|
|
4.40
|
%
|
|
|
0.25 Percentage
|
|
0.25 Percentage
|
||||
|
|
Point Increase
|
|
Point Decrease
|
||||
CWP costs (decrease) increase
|
|
$
|
(134
|
)
|
|
$
|
138
|
|
Workers' compensation costs (decrease) increase
|
|
$
|
(95
|
)
|
|
$
|
102
|
|
|
|
|
|
Workers' Compensation
|
|||||||||||||
|
|
CWP
|
|
Total
|
|
Actuarial
|
|
Other
|
|||||||||
|
|
Benefits
|
|
Benefits
|
|
Benefits
|
|
Benefits
|
|||||||||
2015
|
|
|
$
|
9,156
|
|
|
$
|
17,101
|
|
|
$
|
13,795
|
|
|
$
|
3,306
|
|
2016
|
|
|
$
|
7,483
|
|
|
$
|
17,027
|
|
|
$
|
13,639
|
|
|
$
|
3,388
|
|
2017
|
|
|
$
|
6,802
|
|
|
$
|
17,123
|
|
|
$
|
13,650
|
|
|
$
|
3,473
|
|
2018
|
|
|
$
|
6,402
|
|
|
$
|
17,287
|
|
|
$
|
13,727
|
|
|
$
|
3,560
|
|
2019
|
|
|
$
|
6,207
|
|
|
$
|
17,443
|
|
|
$
|
13,794
|
|
|
$
|
3,649
|
|
Year 2020-2024
|
|
|
$
|
29,376
|
|
|
$
|
91,222
|
|
|
$
|
71,563
|
|
|
$
|
19,659
|
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Benefit cost (credit)
|
|
$
|
2,213
|
|
|
$
|
(687
|
)
|
|
$
|
6,122
|
|
Discount rate assumption used to determine net periodic benefit costs
|
|
3.53
|
%
|
|
3.04
|
%
|
|
3.62
|
%
|
|
|
December 31,
|
||
|
|
2012
|
||
Weighted average fair value of grants
|
|
$
|
14.58
|
|
Risk-free interest rate
|
|
0.73
|
%
|
|
Expected dividend yield
|
|
1.18
|
%
|
|
Expected forfeiture rate
|
|
2.00
|
%
|
|
Expected volatility
|
|
54.80
|
%
|
|
Expected term in years
|
|
4.40
|
|
|
|
|
|
|
|
Weighted
|
|
|
||||||
|
|
|
|
|
|
Average
|
|
|
||||||
|
|
|
|
Weighted
|
|
Remaining
|
|
Aggregate
|
||||||
|
|
|
|
Average
|
|
Contractual
|
|
Intrinsic
|
||||||
|
|
|
|
Exercise
|
|
Term (in
|
|
Value (in
|
||||||
|
|
Shares
|
|
Price
|
|
years)
|
|
thousands)
|
||||||
Balance at December 31, 2013
|
|
4,777,226
|
|
|
$
|
38.12
|
|
|
|
|
|
|||
Granted
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|||
Exercised
|
|
(725,027
|
)
|
|
$
|
20.70
|
|
|
|
|
|
|||
Forfeited
|
|
(9,170
|
)
|
|
$
|
36.89
|
|
|
|
|
|
|||
Balance at December 31, 2014
|
|
4,043,029
|
|
|
$
|
41.24
|
|
|
3.72
|
|
|
$
|
37,900
|
|
Vested and expected to vest
|
|
4,032,198
|
|
|
$
|
41.26
|
|
|
3.71
|
|
|
$
|
37,900
|
|
Exercisable at December 31, 2014
|
|
3,896,403
|
|
|
$
|
41.43
|
|
|
3.60
|
|
|
$
|
37,529
|
|
|
|
Number of
|
|
Weighted Average
|
|
|
|
Shares
|
|
Grant Date Fair Value
|
|
Nonvested at December 31, 2013
|
|
881,570
|
|
|
$35.95
|
Granted
|
|
833,390
|
|
|
$37.63
|
Vested
|
|
(425,107
|
)
|
|
$36.90
|
Forfeited
|
|
(41,662
|
)
|
|
$35.71
|
Nonvested at December 31, 2014
|
|
1,248,191
|
|
|
$36.76
|
|
|
Number of
|
|
Weighted Average
|
|
|
|
Shares
|
|
Grant Date Fair Value
|
|
Nonvested at December 31, 2013
|
|
583,480
|
|
|
$38.19
|
Granted
|
|
276,098
|
|
|
$42.93
|
Vested
|
|
(378,971
|
)
|
|
$49.50
|
Nonvested at December 31, 2014
|
|
480,607
|
|
|
$31.99
|
|
|
Number of
|
|
Weighted Average
|
|
|
|
Shares
|
|
Grant Date Fair Value
|
|
Nonvested at December 31, 2013
|
|
301,063
|
|
|
$16.44
|
Vested
|
|
(301,063
|
)
|
|
$16.44
|
Nonvested at December 31, 2014
|
|
—
|
|
|
$16.44
|
|
|
Number of
|
|
Weighted Average
|
|
|
|
Shares
|
|
Grant Date Fair Value
|
|
Nonvested at December 31, 2013
|
|
833,553
|
|
|
$33.70
|
Granted
|
|
4,700
|
|
|
$40.18
|
Forfeited
|
|
(18,701
|
)
|
|
$33.70
|
Nonvested at December 31, 2014
|
|
819,552
|
|
|
$33.74
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Interest (net of amounts capitalized)
|
|
$
|
233,631
|
|
|
$
|
209,580
|
|
|
$
|
212,364
|
|
Income taxes
|
|
$
|
(81,962
|
)
|
|
$
|
35,079
|
|
|
$
|
121,245
|
|
|
|
December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Thermal coal utilities
|
|
$
|
85,527
|
|
|
$
|
154,738
|
|
Steel and coke producers
|
|
10,043
|
|
|
10,963
|
|
||
Coal brokers and distributors
|
|
41,983
|
|
|
52,233
|
|
||
Gas wholesalers
|
|
117,985
|
|
|
71,441
|
|
||
Various other
|
|
4,279
|
|
|
43,199
|
|
||
Total Accounts Receivable Trade (including Accounts Receivable—Securitized)
|
|
$
|
259,817
|
|
|
$
|
332,574
|
|
|
Fair Value Measurements at
December 31, 2014 |
|
Fair Value Measurements at
December 31, 2013 |
||||||||||||||||||||
Description
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Gas Derivatives
|
$
|
—
|
|
|
$
|
193,069
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
65,449
|
|
|
$
|
—
|
|
Murray Energy Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,275
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,000
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Cash and Cash Equivalents
|
$
|
176,989
|
|
|
$
|
176,989
|
|
|
$
|
327,420
|
|
|
$
|
327,420
|
|
Long-Term Debt
|
$
|
3,241,474
|
|
|
$
|
3,169,154
|
|
|
$
|
3,118,920
|
|
|
$
|
3,299,875
|
|
|
|
|
Year Ended December 31,
|
||||||||
|
2014
|
2013
|
2012
|
||||||||
Natural Gas Price Swaps and Options
|
|
|
|
||||||||
Beginning Balance – Accumulated OCI
|
$
|
42,493
|
|
$
|
76,761
|
|
$
|
151,780
|
|
||
Gain recognized in Accumulated OCI
|
$
|
97,316
|
|
$
|
45,631
|
|
$
|
114,240
|
|
||
Less: Gain reclassified from Accumulated OCI into Outside Sales
|
$
|
18,288
|
|
$
|
79,899
|
|
$
|
189,259
|
|
||
Ending Balance – Accumulated OCI
|
$
|
121,521
|
|
$
|
42,493
|
|
$
|
76,761
|
|
||
Gain (Loss) recognized in Outside Sales for ineffectiveness
|
$
|
4,168
|
|
$
|
(4,645
|
)
|
$
|
579
|
|
|
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
|
$
|
150,042
|
|
|
$
|
124,536
|
|
|
$
|
25,506
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Environmental
|
5,509
|
|
|
5,509
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
149,097
|
|
|
141,337
|
|
|
7,760
|
|
|
—
|
|
|
—
|
|
|||||
Total Letters of Credit
|
304,648
|
|
|
271,382
|
|
|
33,266
|
|
|
—
|
|
|
—
|
|
|||||
Surety Bonds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
223,579
|
|
|
223,579
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Environmental
|
598,877
|
|
|
598,877
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
24,437
|
|
|
24,436
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total Surety Bonds
|
846,893
|
|
|
846,892
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Guarantees:
|
|
|
|
|
|
|
|
|
|
||||||||||
Coal
|
133,600
|
|
|
100,200
|
|
|
33,400
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
61,571
|
|
34,974
|
|
8,822
|
|
8,367
|
|
9,408
|
||||||||||
Total Guarantees
|
195,171
|
|
|
135,174
|
|
|
42,222
|
|
|
8,367
|
|
|
9,408
|
|
|||||
Total Commitments
|
$
|
1,346,712
|
|
|
$
|
1,253,448
|
|
|
$
|
75,488
|
|
|
$
|
8,367
|
|
|
$
|
9,409
|
|
Obligations Due
|
Amount
|
||
Less than 1 year
|
$
|
250,471
|
|
1 - 3 years
|
338,312
|
|
|
3 - 5 years
|
181,608
|
|
|
More than 5 years
|
455,414
|
|
|
Total Purchase Obligations
|
$
|
1,225,805
|
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed
Methane
|
|
Other
Gas
|
|
Total
Gas
|
|
PA Operations
|
|
VA Operations
|
|
Other Coal
|
|
Total Coal
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||
Sales—outside
|
$
|
473,141
|
|
|
$
|
88,195
|
|
|
$
|
344,842
|
|
|
$
|
121,939
|
|
|
$
|
1,028,117
|
|
|
$
|
1,616,989
|
|
|
$
|
297,088
|
|
|
$
|
179,344
|
|
|
$
|
2,093,421
|
|
|
$
|
234,987
|
|
|
$
|
—
|
|
|
$
|
3,356,525
|
|
(A)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
8,999
|
|
|
8,999
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,999
|
|
|
||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
82,428
|
|
|
82,428
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82,428
|
|
|
||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,767
|
|
|
616
|
|
|
10,765
|
|
|
28,148
|
|
|
—
|
|
|
—
|
|
|
28,148
|
|
|
||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
2,458
|
|
|
—
|
|
|
2,458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78,229
|
|
|
(80,687
|
)
|
|
—
|
|
|
||||||||||||
Total Sales and Freight
|
$
|
473,141
|
|
|
$
|
88,195
|
|
|
$
|
347,300
|
|
|
$
|
213,366
|
|
|
$
|
1,122,002
|
|
|
$
|
1,633,756
|
|
|
$
|
297,704
|
|
|
$
|
190,109
|
|
|
$
|
2,121,569
|
|
|
$
|
313,216
|
|
|
$
|
(80,687
|
)
|
|
$
|
3,476,100
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
151,617
|
|
|
$
|
41,064
|
|
|
$
|
91,672
|
|
|
$
|
(94,639
|
)
|
|
$
|
189,714
|
|
|
$
|
426,540
|
|
|
$
|
11,608
|
|
|
$
|
(30,701
|
)
|
|
$
|
407,447
|
|
|
$
|
(32,821
|
)
|
|
$
|
(381,216
|
)
|
|
$
|
183,124
|
|
(B)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
7,364,185
|
|
|
2,014,636
|
|
|
360,422
|
|
|
1,732,703
|
|
|
$
|
4,107,761
|
|
|
$
|
15,089
|
|
|
$
|
272,495
|
|
|
$
|
11,759,530
|
|
(C)
|
|||||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
314,381
|
|
|
$
|
162,367
|
|
|
$
|
47,021
|
|
|
$
|
45,526
|
|
|
$
|
254,914
|
|
|
$
|
1,896
|
|
|
$
|
—
|
|
|
$
|
571,191
|
|
|
||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
1,103,656
|
|
|
$
|
340,282
|
|
|
$
|
26,654
|
|
|
$
|
13,375
|
|
|
$
|
380,311
|
|
|
$
|
9,458
|
|
|
$
|
—
|
|
|
$
|
1,493,425
|
|
|
(A)
|
Included in the Coal segment are sales of $
394,849
to Duke Energy and sales of $
344,617
to
Xcoal Energy Resources
each comprising over 10% of sales.
|
(B)
|
Includes equity in earnings of unconsolidated affiliates of
$32,216
,
$18,913
and
$(1,338)
for E&P, Coal, and All Other, respectively.
|
(C)
|
Includes investments in unconsolidated equity affiliates of
$121,721
and
$27,544
for E&P and Coal, respectively.
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed
Methane
|
|
Other
Gas
|
|
Total
Gas
|
|
PA Operations
|
|
VA Operations
|
|
Other Coal
|
|
Total Coal
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||
Sales—outside
|
$
|
251,846
|
|
|
$
|
4,370
|
|
|
$
|
335,730
|
|
|
$
|
145,755
|
|
|
$
|
737,701
|
|
|
$
|
1,357,337
|
|
|
$
|
450,033
|
|
|
$
|
254,061
|
|
|
$
|
2,061,431
|
|
|
$
|
216,419
|
|
|
$
|
—
|
|
|
$
|
3,015,551
|
|
(D)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
6,531
|
|
|
6,531
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,531
|
|
|
||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
63,202
|
|
|
63,202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,202
|
|
|
||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,779
|
|
|
4,010
|
|
|
13,649
|
|
|
35,438
|
|
|
—
|
|
|
—
|
|
|
35,438
|
|
|
||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
3,168
|
|
|
—
|
|
|
3,168
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127,553
|
|
|
(130,721
|
)
|
|
—
|
|
|
||||||||||||
Total Sales and Freight
|
$
|
251,846
|
|
|
$
|
4,370
|
|
|
$
|
338,898
|
|
|
$
|
215,488
|
|
|
$
|
810,602
|
|
|
$
|
1,375,116
|
|
|
$
|
454,043
|
|
|
$
|
267,710
|
|
|
$
|
2,096,869
|
|
|
$
|
343,972
|
|
|
$
|
(130,721
|
)
|
|
$
|
3,120,722
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
79,462
|
|
|
$
|
(3,980
|
)
|
|
$
|
81,260
|
|
|
$
|
(158,356
|
)
|
|
$
|
(1,614
|
)
|
|
$
|
310,467
|
|
|
$
|
89,470
|
|
|
$
|
(55,544
|
)
|
|
$
|
344,393
|
|
|
$
|
(17,201
|
)
|
|
$
|
(279,503
|
)
|
|
$
|
46,075
|
|
(E)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
6,334,468
|
|
|
$
|
1,982,195
|
|
|
$
|
389,372
|
|
|
$
|
1,976,717
|
|
|
$
|
4,348,284
|
|
|
$
|
132,487
|
|
|
$
|
578,428
|
|
|
$
|
11,393,667
|
|
(F)
|
||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
231,809
|
|
|
$
|
120,754
|
|
|
$
|
54,725
|
|
|
$
|
51,160
|
|
|
$
|
226,639
|
|
|
$
|
2,674
|
|
|
$
|
—
|
|
|
$
|
461,122
|
|
|
||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
968,607
|
|
|
$
|
404,293
|
|
|
$
|
21,265
|
|
|
$
|
29,520
|
|
|
$
|
455,078
|
|
|
$
|
72,371
|
|
|
$
|
—
|
|
|
$
|
1,496,056
|
|
|
(D)
|
Included in the Coal segment are sales of $
495,242
to Xcoal Energy & Resources and
$346,424
to Duke Energy each comprising over 10% of sales.
|
(E)
|
Includes equity in earnings of unconsolidated affiliates of
$14,684
,
$18,045
and
$403
for E&P, Coal, and All Other, respectively.
|
(F)
|
Includes investments in unconsolidated equity affiliates of
$206,060
,
$80,849
and
$1,750
for E&P, Coal, and All Other, respectively.
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed
Methane
|
|
Other
Gas
|
|
Total
Gas
|
|
PA Operations
|
|
VA Operations
|
|
Other Coal
|
|
Total Coal
|
|
All
Other
|
|
Corporate,
Adjustments
&
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||||
Sales—outside
|
$
|
134,080
|
|
|
$
|
400
|
|
|
$
|
379,595
|
|
|
$
|
144,745
|
|
|
$
|
658,820
|
|
|
$
|
1,323,679
|
|
|
$
|
505,682
|
|
|
$
|
391,310
|
|
|
$
|
2,220,671
|
|
|
$
|
243,059
|
|
|
$
|
—
|
|
|
$
|
3,122,550
|
|
(G)
|
Sales—purchased gas
|
—
|
|
|
—
|
|
|
—
|
|
|
3,316
|
|
|
3,316
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,316
|
|
|
||||||||||||
Sales—gas royalty interests
|
—
|
|
|
—
|
|
|
—
|
|
|
49,405
|
|
|
49,405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,405
|
|
|
||||||||||||
Freight—outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50,901
|
|
|
35,838
|
|
|
20,340
|
|
|
107,079
|
|
|
—
|
|
|
—
|
|
|
107,079
|
|
|
||||||||||||
Intersegment transfers
|
—
|
|
|
—
|
|
|
1,622
|
|
|
—
|
|
|
1,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,014
|
|
|
(143,636
|
)
|
|
—
|
|
|
||||||||||||
Total Sales and Freight
|
$
|
134,080
|
|
|
$
|
400
|
|
|
$
|
381,217
|
|
|
$
|
197,466
|
|
|
$
|
713,163
|
|
|
$
|
1,374,580
|
|
|
$
|
541,520
|
|
|
$
|
411,650
|
|
|
$
|
2,327,750
|
|
|
$
|
385,073
|
|
|
$
|
(143,636
|
)
|
|
$
|
3,282,350
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
29,546
|
|
|
$
|
(2,127
|
)
|
|
$
|
125,970
|
|
|
$
|
(113,938
|
)
|
|
$
|
39,451
|
|
|
$
|
337,681
|
|
|
$
|
176,765
|
|
|
$
|
94,119
|
|
|
$
|
608,565
|
|
|
$
|
26,194
|
|
|
$
|
(267,523
|
)
|
|
$
|
406,687
|
|
(H)
|
Segment assets
|
|
|
|
|
|
|
|
|
$
|
5,768,882
|
|
|
1,766,144
|
|
|
425,010
|
|
|
2,142,332
|
|
|
$
|
4,333,486
|
|
|
$
|
135,170
|
|
|
$
|
2,760,056
|
|
|
$
|
12,997,594
|
|
(I)
|
|||||||||||
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
$
|
205,149
|
|
|
$
|
119,082
|
|
|
$
|
48,491
|
|
|
$
|
52,063
|
|
|
$
|
219,636
|
|
|
$
|
2,330
|
|
|
$
|
—
|
|
|
$
|
427,115
|
|
|
||||||||
Capital expenditures
|
|
|
|
|
|
|
|
|
$
|
532,636
|
|
|
$
|
489,874
|
|
|
$
|
126,421
|
|
|
$
|
79,763
|
|
|
$
|
696,058
|
|
|
$
|
16,803
|
|
|
$
|
—
|
|
|
$
|
1,245,497
|
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Total segment sales and freight from external customers
|
|
$
|
3,476,100
|
|
|
$
|
3,120,722
|
|
|
$
|
3,282,350
|
|
Other income not allocated to segments (Note 4)
|
|
207,103
|
|
|
111,483
|
|
|
113,170
|
|
|||
Gain on sale of assets
|
|
43,601
|
|
|
67,480
|
|
|
282,006
|
|
|||
Total Consolidated Revenue and Other Income
|
|
$
|
3,726,804
|
|
|
$
|
3,299,685
|
|
|
$
|
3,677,526
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Segment Earnings Before Income Taxes for total reportable business segments
|
|
$
|
597,161
|
|
|
$
|
342,779
|
|
|
$
|
648,016
|
|
Segment Earnings Before Income Taxes for all other businesses
|
|
(32,821
|
)
|
|
(17,201
|
)
|
|
26,194
|
|
|||
Interest (expense), net (I)
|
|
(223,564
|
)
|
|
(219,198
|
)
|
|
(220,042
|
)
|
|||
Evaluation fees for non-core asset dispositions (I)
|
|
(9,785
|
)
|
|
(15,168
|
)
|
|
(6,584
|
)
|
|||
Loss on debt extinguishment
|
|
(95,267
|
)
|
|
—
|
|
|
—
|
|
|||
Other non-operating activity (I)
|
|
(52,600
|
)
|
|
(45,137
|
)
|
|
(40,897
|
)
|
|||
Earnings Before Income Taxes
|
|
$
|
183,124
|
|
|
$
|
46,075
|
|
|
$
|
406,687
|
|
Total Assets:
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
|||||
Segment assets for total reportable business segments
|
|
$
|
11,471,946
|
|
|
$
|
10,682,752
|
|
Segment assets for all other businesses
|
|
15,089
|
|
|
132,487
|
|
||
Items excluded from segment assets:
|
|
|
|
|
||||
Cash and other investments (I)
|
|
147,210
|
|
|
321,992
|
|
||
Recoverable income taxes
|
|
20,401
|
|
|
10,705
|
|
||
Deferred tax assets
|
|
66,569
|
|
|
211,303
|
|
||
Bond issuance costs
|
|
38,315
|
|
|
34,428
|
|
||
Total Consolidated Assets
|
|
$
|
11,759,530
|
|
|
$
|
11,393,667
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
United States
|
|
$
|
3,354,581
|
|
|
$
|
2,999,674
|
|
|
$
|
2,898,341
|
|
Europe
|
|
91,340
|
|
|
83,878
|
|
|
187,313
|
|
|||
South America
|
|
21,685
|
|
|
29,787
|
|
|
169,591
|
|
|||
Canada
|
|
8,494
|
|
|
3,575
|
|
|
5,692
|
|
|||
Other
|
|
—
|
|
|
3,808
|
|
|
21,413
|
|
|||
Total Revenues and Freight from External Customers (K)
|
|
$
|
3,476,100
|
|
|
$
|
3,120,722
|
|
|
$
|
3,282,350
|
|
|
|
December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
United States
|
|
$
|
10,151,448
|
|
|
$
|
9,431,238
|
|
Canada
|
|
11,024
|
|
|
11,024
|
|
||
Total Property, Plant and Equipment, net
|
|
$
|
10,162,472
|
|
|
$
|
9,442,262
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
1,030,574
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,457
|
)
|
|
$
|
1,028,117
|
|
Coal Sales
|
—
|
|
|
—
|
|
|
2,052,166
|
|
|
—
|
|
|
—
|
|
|
2,052,166
|
|
||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
41,255
|
|
|
234,987
|
|
|
—
|
|
|
276,242
|
|
||||||
Gas Royalty Interests and Purchased Gas Sales
|
—
|
|
|
91,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,427
|
|
||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
28,148
|
|
|
—
|
|
|
—
|
|
|
28,148
|
|
||||||
Miscellaneous Other Income
|
458,322
|
|
|
67,308
|
|
|
130,072
|
|
|
9,668
|
|
|
(458,267
|
)
|
|
207,103
|
|
||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
45,917
|
|
|
(2,337
|
)
|
|
21
|
|
|
—
|
|
|
43,601
|
|
||||||
Total Revenue and Other Income
|
458,322
|
|
|
1,235,226
|
|
|
2,249,304
|
|
|
244,676
|
|
|
(460,724
|
)
|
|
3,726,804
|
|
||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease Operating Expense
|
—
|
|
|
118,391
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,391
|
|
||||||
Transportation, Gathering and Compression
|
—
|
|
|
258,110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258,110
|
|
||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
39,418
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,418
|
|
||||||
Direct Administrative and Selling
|
—
|
|
|
55,092
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,092
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
314,381
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
314,381
|
|
||||||
Exploration and Production Related Other Costs
|
—
|
|
|
23,356
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,356
|
|
||||||
Production Royalty Interests and Purchased Gas Costs
|
—
|
|
|
77,197
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
77,185
|
|
||||||
Other Corporate Expenses
|
—
|
|
|
86,499
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86,499
|
|
||||||
General and Administrative
|
—
|
|
|
64,047
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,047
|
|
||||||
Total Exploration and Production Costs
|
—
|
|
|
1,036,491
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
1,036,479
|
|
||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and Other Costs
|
23,524
|
|
|
—
|
|
|
1,328,766
|
|
|
—
|
|
|
(2,458
|
)
|
|
1,349,832
|
|
||||||
Royalties and Production Taxes
|
—
|
|
|
—
|
|
|
100,890
|
|
|
—
|
|
|
—
|
|
|
100,890
|
|
||||||
Direct Administrative and Selling
|
—
|
|
|
—
|
|
|
44,185
|
|
|
—
|
|
|
—
|
|
|
44,185
|
|
||||||
Depreciation, Depletion and Amortization
|
558
|
|
|
—
|
|
|
254,356
|
|
|
—
|
|
|
—
|
|
|
254,914
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
28,148
|
|
|
—
|
|
|
—
|
|
|
28,148
|
|
||||||
General and Administrative Costs
|
—
|
|
|
—
|
|
|
45,160
|
|
|
—
|
|
|
—
|
|
|
45,160
|
|
||||||
Other Corporate Expenses
|
55,321
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,321
|
|
||||||
Total Coal Costs
|
79,403
|
|
|
—
|
|
|
1,801,505
|
|
|
—
|
|
|
(2,458
|
)
|
|
1,878,450
|
|
||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Miscellaneous Operating Expense
|
76,124
|
|
|
—
|
|
|
—
|
|
|
231,112
|
|
|
—
|
|
|
307,236
|
|
||||||
General and Administrative Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
788
|
|
|
—
|
|
|
788
|
|
||||||
Depreciation, Depletion and Amortization
|
82
|
|
|
—
|
|
|
—
|
|
|
1,814
|
|
|
—
|
|
|
1,896
|
|
||||||
Loss on Debt Extinguishment
|
95,267
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95,267
|
|
||||||
Interest Expense
|
220,068
|
|
|
9,021
|
|
|
—
|
|
|
235
|
|
|
(5,760
|
)
|
|
223,564
|
|
||||||
Total Other Costs
|
391,541
|
|
|
9,021
|
|
|
—
|
|
|
233,949
|
|
|
(5,760
|
)
|
|
628,751
|
|
||||||
Total Costs And Expenses
|
470,944
|
|
|
1,045,512
|
|
|
1,801,505
|
|
|
233,949
|
|
|
(8,230
|
)
|
|
3,543,680
|
|
||||||
Earnings (Loss) Before Income Tax
|
(12,622
|
)
|
|
189,714
|
|
|
447,799
|
|
|
10,727
|
|
|
(452,494
|
)
|
|
183,124
|
|
||||||
Income Taxes
|
(175,712
|
)
|
|
66,441
|
|
|
119,559
|
|
|
4,059
|
|
|
—
|
|
|
14,347
|
|
||||||
Income (Loss) From Continuing Operations
|
163,090
|
|
|
123,273
|
|
|
328,240
|
|
|
6,668
|
|
|
(452,494
|
)
|
|
168,777
|
|
||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,687
|
)
|
|
—
|
|
|
(5,687
|
)
|
||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
163,090
|
|
|
$
|
123,273
|
|
|
$
|
328,240
|
|
|
$
|
981
|
|
|
$
|
(452,494
|
)
|
|
$
|
163,090
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
145,239
|
|
|
$
|
30,682
|
|
|
$
|
—
|
|
|
$
|
1,068
|
|
|
$
|
—
|
|
|
$
|
176,989
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
117,912
|
|
|
—
|
|
|
141,905
|
|
|
—
|
|
|
259,817
|
|
||||||
Other Receivables
|
25,497
|
|
|
309,247
|
|
|
12,390
|
|
|
12
|
|
|
—
|
|
|
347,146
|
|
||||||
Inventories
|
—
|
|
|
14,748
|
|
|
87,125
|
|
|
—
|
|
|
—
|
|
|
101,873
|
|
||||||
Deferred Income Taxes
|
99,776
|
|
|
(33,207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,569
|
|
||||||
Recoverable Income Taxes
|
79,426
|
|
|
(59,025
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,401
|
|
||||||
Prepaid Expenses
|
38,418
|
|
|
129,796
|
|
|
25,341
|
|
|
—
|
|
|
—
|
|
|
193,555
|
|
||||||
Total Current Assets
|
388,356
|
|
|
510,153
|
|
|
124,856
|
|
|
142,985
|
|
|
—
|
|
|
1,166,350
|
|
||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, Plant and Equipment
|
158,555
|
|
|
8,066,308
|
|
|
6,449,914
|
|
|
—
|
|
|
—
|
|
|
14,674,777
|
|
||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
108,432
|
|
|
1,497,569
|
|
|
2,906,304
|
|
|
—
|
|
|
—
|
|
|
4,512,305
|
|
||||||
Total Property, Plant and Equipment-Net
|
50,123
|
|
|
6,568,739
|
|
|
3,543,610
|
|
|
—
|
|
|
—
|
|
|
10,162,472
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment in Affiliates
|
12,571,886
|
|
|
121,721
|
|
|
27,544
|
|
|
—
|
|
|
(12,568,193
|
)
|
|
152,958
|
|
||||||
Other
|
172,884
|
|
|
71,339
|
|
|
33,527
|
|
|
—
|
|
|
—
|
|
|
277,750
|
|
||||||
Total Other Assets
|
12,744,770
|
|
|
193,060
|
|
|
61,071
|
|
|
—
|
|
|
(12,568,193
|
)
|
|
430,708
|
|
||||||
Total Assets
|
$
|
13,183,249
|
|
|
$
|
7,271,952
|
|
|
$
|
3,729,537
|
|
|
$
|
142,985
|
|
|
$
|
(12,568,193
|
)
|
|
$
|
11,759,530
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
$
|
86,313
|
|
|
$
|
385,381
|
|
|
$
|
60,279
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
531,973
|
|
Accounts Payable (Recoverable)—Related Parties
|
4,499,174
|
|
|
182,758
|
|
|
(5,333,209
|
)
|
|
(68,873
|
)
|
|
720,150
|
|
|
—
|
|
||||||
Current Portion Long-Term Debt
|
2,485
|
|
|
6,602
|
|
|
3,929
|
|
|
—
|
|
|
—
|
|
|
13,016
|
|
||||||
Short-Term Notes Payable
|
—
|
|
|
720,150
|
|
|
—
|
|
|
—
|
|
|
(720,150
|
)
|
|
—
|
|
||||||
Other Accrued Liabilities
|
119,484
|
|
|
172,787
|
|
|
310,701
|
|
|
—
|
|
|
—
|
|
|
602,972
|
|
||||||
Total Current Liabilities
|
4,707,456
|
|
|
1,467,678
|
|
|
(4,958,300
|
)
|
|
(68,873
|
)
|
|
—
|
|
|
1,147,961
|
|
||||||
Long-Term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-Term Debt
|
3,123,187
|
|
|
—
|
|
|
113,235
|
|
|
—
|
|
|
—
|
|
|
3,236,422
|
|
||||||
Capital Lease Obligations
|
942
|
|
|
37,342
|
|
|
1,172
|
|
|
—
|
|
|
—
|
|
|
39,456
|
|
||||||
Total Long-Term Debt
|
3,124,129
|
|
|
37,342
|
|
|
114,407
|
|
|
—
|
|
|
—
|
|
|
3,275,878
|
|
||||||
Deferred Credits and Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Income Taxes
|
(148,925
|
)
|
|
474,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325,592
|
|
||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
703,680
|
|
|
—
|
|
|
—
|
|
|
703,680
|
|
||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
116,941
|
|
|
—
|
|
|
—
|
|
|
116,941
|
|
||||||
Mine Closing
|
—
|
|
|
—
|
|
|
306,789
|
|
|
—
|
|
|
—
|
|
|
306,789
|
|
||||||
Gas Well Closing
|
—
|
|
|
116,930
|
|
|
58,439
|
|
|
—
|
|
|
—
|
|
|
175,369
|
|
||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
75,947
|
|
|
—
|
|
|
—
|
|
|
75,947
|
|
||||||
Salary Retirement
|
109,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109,956
|
|
||||||
Reclamation
|
—
|
|
|
—
|
|
|
33,788
|
|
|
—
|
|
|
—
|
|
|
33,788
|
|
||||||
Other
|
61,175
|
|
|
94,378
|
|
|
2,618
|
|
|
—
|
|
|
—
|
|
|
158,171
|
|
||||||
Total Deferred Credits and Other Liabilities
|
22,206
|
|
|
685,825
|
|
|
1,298,202
|
|
|
—
|
|
|
—
|
|
|
2,006,233
|
|
||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
5,329,458
|
|
|
5,081,107
|
|
|
7,275,228
|
|
|
211,858
|
|
|
(12,568,193
|
)
|
|
5,329,458
|
|
||||||
Total Liabilities and Equity
|
$
|
13,183,249
|
|
|
$
|
7,271,952
|
|
|
$
|
3,729,537
|
|
|
$
|
142,985
|
|
|
$
|
(12,568,193
|
)
|
|
$
|
11,759,530
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
(178,921
|
)
|
|
$
|
567,851
|
|
|
$
|
157,211
|
|
|
$
|
36,902
|
|
|
$
|
387,663
|
|
|
$
|
970,706
|
|
Net Cash Used In Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,926
|
)
|
|
—
|
|
|
(33,926
|
)
|
||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
(178,921
|
)
|
|
$
|
567,851
|
|
|
$
|
157,211
|
|
|
$
|
2,976
|
|
|
$
|
387,663
|
|
|
$
|
936,780
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
$
|
(4,420
|
)
|
|
$
|
(1,103,656
|
)
|
|
$
|
(385,349
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,493,425
|
)
|
Proceeds From Sales of Assets
|
44,049
|
|
|
92,507
|
|
|
220,267
|
|
|
13
|
|
|
—
|
|
|
356,836
|
|
||||||
Investments in Equity Affiliates
|
—
|
|
|
85,248
|
|
|
9,959
|
|
|
—
|
|
|
—
|
|
|
95,207
|
|
||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
39,629
|
|
|
$
|
(925,901
|
)
|
|
$
|
(155,123
|
)
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
(1,041,382
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Payments on) Proceeds from Miscellaneous Borrowings
|
$
|
(12,135
|
)
|
|
$
|
387,663
|
|
|
$
|
(7,257
|
)
|
|
$
|
(2,630
|
)
|
|
$
|
(387,663
|
)
|
|
$
|
(22,022
|
)
|
Payments on Long Term Notes, including Redemption Premium
|
(1,843,866
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,843,866
|
)
|
||||||
Proceeds from Issuance of Long-Term Notes
|
1,859,920
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,859,920
|
|
||||||
Tax Benefit from Stock-Based Compensation
|
2,629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,629
|
|
||||||
Dividends Paid
|
(57,506
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57,506
|
)
|
||||||
Proceeds from Issuance of Common Stock
|
15,016
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,016
|
|
||||||
Other Financing Activities
|
—
|
|
|
(5,169
|
)
|
|
5,169
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
(35,942
|
)
|
|
$
|
382,494
|
|
|
$
|
(2,088
|
)
|
|
$
|
(2,630
|
)
|
|
$
|
(387,663
|
)
|
|
$
|
(45,829
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Income (Loss)
|
$
|
163,090
|
|
|
$
|
123,273
|
|
|
$
|
328,240
|
|
|
$
|
981
|
|
|
$
|
(452,494
|
)
|
|
$
|
163,090
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
94,989
|
|
|
—
|
|
|
94,989
|
|
|
—
|
|
|
(94,989
|
)
|
|
94,989
|
|
||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge
|
97,316
|
|
|
97,316
|
|
|
—
|
|
|
—
|
|
|
(97,316
|
)
|
|
97,316
|
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(18,288
|
)
|
|
(18,288
|
)
|
|
—
|
|
|
—
|
|
|
18,288
|
|
|
(18,288
|
)
|
||||||
Other Comprehensive Income (Loss):
|
174,017
|
|
|
79,028
|
|
|
94,989
|
|
|
—
|
|
|
(174,017
|
)
|
|
174,017
|
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
337,107
|
|
|
$
|
202,301
|
|
|
$
|
423,229
|
|
|
$
|
981
|
|
|
$
|
(626,511
|
)
|
|
$
|
337,107
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
741,090
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,389
|
)
|
|
$
|
737,701
|
|
Coal Sales
|
—
|
|
|
—
|
|
|
2,018,067
|
|
|
—
|
|
|
—
|
|
|
2,018,067
|
|
||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
43,364
|
|
|
216,419
|
|
|
—
|
|
|
259,783
|
|
||||||
Gas Royalty Interests and Purchased Gas Sales
|
—
|
|
|
69,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69,733
|
|
||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
35,438
|
|
|
—
|
|
|
—
|
|
|
35,438
|
|
||||||
Miscellaneous Other Income
|
930,481
|
|
|
36,371
|
|
|
54,612
|
|
|
20,500
|
|
|
(930,481
|
)
|
|
111,483
|
|
||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
21,000
|
|
|
46,366
|
|
|
114
|
|
|
—
|
|
|
67,480
|
|
||||||
Total Revenue and Other Income
|
930,481
|
|
|
868,194
|
|
|
2,197,847
|
|
|
237,033
|
|
|
(933,870
|
)
|
|
3,299,685
|
|
||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease Operating Expense
|
—
|
|
|
96,601
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96,601
|
|
||||||
Transportation, Gathering and Compression
|
—
|
|
|
201,024
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201,024
|
|
||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
28,676
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,676
|
|
||||||
Direct Administrative and Selling
|
—
|
|
|
49,092
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,092
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
231,809
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
231,809
|
|
||||||
Exploration and Production Related Other Costs
|
—
|
|
|
61,104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,104
|
|
||||||
Production Royalty Interests and Purchased Gas Costs
|
—
|
|
|
57,906
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
57,865
|
|
||||||
Other Corporate Expenses
|
—
|
|
|
95,534
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
95,535
|
|
||||||
General and Administrative
|
—
|
|
|
39,047
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,047
|
|
||||||
Total Exploration and Production Costs
|
—
|
|
|
860,793
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
860,753
|
|
||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and Other Costs
|
14,743
|
|
|
—
|
|
|
1,174,638
|
|
|
—
|
|
|
156,416
|
|
|
1,345,797
|
|
||||||
Royalties and Production Taxes
|
—
|
|
|
—
|
|
|
102,128
|
|
|
—
|
|
|
—
|
|
|
102,128
|
|
||||||
Direct Administrative and Selling
|
—
|
|
|
—
|
|
|
49,018
|
|
|
—
|
|
|
—
|
|
|
49,018
|
|
||||||
Depreciation, Depletion and Amortization
|
12,160
|
|
|
—
|
|
|
214,479
|
|
|
—
|
|
|
—
|
|
|
226,639
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
35,438
|
|
|
—
|
|
|
—
|
|
|
35,438
|
|
||||||
General and Administrative Costs
|
—
|
|
|
—
|
|
|
40,047
|
|
|
—
|
|
|
—
|
|
|
40,047
|
|
||||||
Other Corporate Expenses
|
55,802
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,802
|
|
||||||
Total Coal Costs
|
82,705
|
|
|
—
|
|
|
1,615,748
|
|
|
—
|
|
|
156,416
|
|
|
1,854,869
|
|
||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Miscellaneous Operating Expense
|
139,927
|
|
|
—
|
|
|
—
|
|
|
224,706
|
|
|
(49,453
|
)
|
|
315,180
|
|
||||||
General and Administrative Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
936
|
|
|
—
|
|
|
936
|
|
||||||
Depreciation, Depletion and Amortization
|
697
|
|
|
—
|
|
|
—
|
|
|
1,977
|
|
|
—
|
|
|
2,674
|
|
||||||
Interest Expense
|
211,026
|
|
|
8,605
|
|
|
—
|
|
|
47
|
|
|
(480
|
)
|
|
219,198
|
|
||||||
Total Other Costs
|
351,650
|
|
|
8,605
|
|
|
—
|
|
|
227,666
|
|
|
(49,933
|
)
|
|
537,988
|
|
||||||
Total Costs And Expenses
|
434,355
|
|
|
869,398
|
|
|
1,615,748
|
|
|
227,666
|
|
|
106,443
|
|
|
3,253,610
|
|
||||||
Earnings (Loss) Before Income Tax
|
496,126
|
|
|
(1,204
|
)
|
|
582,099
|
|
|
9,367
|
|
|
(1,040,313
|
)
|
|
46,075
|
|
||||||
Income Taxes
|
(164,316
|
)
|
|
1,420
|
|
|
126,164
|
|
|
3,543
|
|
|
—
|
|
|
(33,189
|
)
|
||||||
Income (Loss) From Continuing Operations
|
660,442
|
|
|
(2,624
|
)
|
|
455,935
|
|
|
5,824
|
|
|
(1,040,313
|
)
|
|
79,264
|
|
||||||
Income From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
579,792
|
|
|
—
|
|
|
579,792
|
|
||||||
Net Income (Loss)
|
660,442
|
|
|
(2,624
|
)
|
|
455,935
|
|
|
585,616
|
|
|
(1,040,313
|
)
|
|
659,056
|
|
||||||
Less: Net Loss Attributable to Noncontrolling Interests
|
—
|
|
|
(1,386
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,386
|
)
|
||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
660,442
|
|
|
$
|
(1,238
|
)
|
|
$
|
455,935
|
|
|
$
|
585,616
|
|
|
$
|
(1,040,313
|
)
|
|
$
|
660,442
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
320,473
|
|
|
$
|
6,238
|
|
|
$
|
—
|
|
|
$
|
709
|
|
|
$
|
—
|
|
|
$
|
327,420
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
71,911
|
|
|
—
|
|
|
260,663
|
|
|
—
|
|
|
332,574
|
|
||||||
Notes Receivable
|
1,238
|
|
|
—
|
|
|
24,623
|
|
|
—
|
|
|
—
|
|
|
25,861
|
|
||||||
Other Receivables
|
17,657
|
|
|
207,128
|
|
|
14,969
|
|
|
4,219
|
|
|
—
|
|
|
243,973
|
|
||||||
Inventories
|
—
|
|
|
15,185
|
|
|
99,320
|
|
|
43,409
|
|
|
—
|
|
|
157,914
|
|
||||||
Deferred Income Taxes
|
219,566
|
|
|
(8,263
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
211,303
|
|
||||||
Recoverable Income Taxes
|
(16,262
|
)
|
|
26,967
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,705
|
|
||||||
Prepaid Expenses
|
43,698
|
|
|
65,701
|
|
|
24,915
|
|
|
1,528
|
|
|
—
|
|
|
135,842
|
|
||||||
Total Current Assets
|
586,370
|
|
|
384,867
|
|
|
163,827
|
|
|
310,528
|
|
|
—
|
|
|
1,445,592
|
|
||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, Plant and Equipment
|
173,719
|
|
|
6,919,972
|
|
|
6,459,014
|
|
|
25,804
|
|
|
—
|
|
|
13,578,509
|
|
||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
122,022
|
|
|
1,188,464
|
|
|
2,806,775
|
|
|
18,986
|
|
|
—
|
|
|
4,136,247
|
|
||||||
Total Property, Plant and Equipment-Net
|
51,697
|
|
|
5,731,508
|
|
|
3,652,239
|
|
|
6,818
|
|
|
—
|
|
|
9,442,262
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment in Affiliates
|
11,965,054
|
|
|
206,060
|
|
|
70,222
|
|
|
—
|
|
|
(11,949,661
|
)
|
|
291,675
|
|
||||||
Notes Receivable
|
125
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||||
Other
|
145,401
|
|
|
30,728
|
|
|
28,831
|
|
|
9,053
|
|
|
—
|
|
|
214,013
|
|
||||||
Total Other Assets
|
12,110,580
|
|
|
236,788
|
|
|
99,053
|
|
|
9,053
|
|
|
(11,949,661
|
)
|
|
505,813
|
|
||||||
Total Assets
|
$
|
12,748,647
|
|
|
$
|
6,353,163
|
|
|
$
|
3,915,119
|
|
|
$
|
326,399
|
|
|
$
|
(11,949,661
|
)
|
|
$
|
11,393,667
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
$
|
91,553
|
|
|
$
|
324,226
|
|
|
$
|
89,201
|
|
|
$
|
9,600
|
|
|
$
|
—
|
|
|
$
|
514,580
|
|
Accounts Payable (Recoverable)—Related Parties
|
4,629,131
|
|
|
23,287
|
|
|
(5,121,727
|
)
|
|
136,822
|
|
|
332,487
|
|
|
—
|
|
||||||
Current Portion Long-Term Debt
|
1,029
|
|
|
6,258
|
|
|
3,372
|
|
|
796
|
|
|
—
|
|
|
11,455
|
|
||||||
Short-Term Notes Payable
|
—
|
|
|
332,487
|
|
|
—
|
|
|
—
|
|
|
(332,487
|
)
|
|
—
|
|
||||||
Other Accrued Liabilities
|
144,612
|
|
|
89,080
|
|
|
322,606
|
|
|
9,399
|
|
|
—
|
|
|
565,697
|
|
||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
28,239
|
|
|
—
|
|
|
28,239
|
|
||||||
Total Current Liabilities
|
4,866,325
|
|
|
775,338
|
|
|
(4,706,548
|
)
|
|
184,856
|
|
|
—
|
|
|
1,119,971
|
|
||||||
Long-Term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-Term Debt
|
3,004,213
|
|
|
—
|
|
|
111,750
|
|
|
—
|
|
|
—
|
|
|
3,115,963
|
|
||||||
Capital Lease Obligations
|
1,245
|
|
|
42,852
|
|
|
1,724
|
|
|
1,775
|
|
|
—
|
|
|
47,596
|
|
||||||
Total Long-Term Debt
|
3,005,458
|
|
|
42,852
|
|
|
113,474
|
|
|
1,775
|
|
|
—
|
|
|
3,163,559
|
|
||||||
Deferred Credits and Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Income Taxes
|
(232,904
|
)
|
|
475,547
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242,643
|
|
||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
961,127
|
|
|
—
|
|
|
—
|
|
|
961,127
|
|
||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
111,971
|
|
|
—
|
|
|
—
|
|
|
111,971
|
|
||||||
Mine Closing
|
—
|
|
|
—
|
|
|
320,723
|
|
|
—
|
|
|
—
|
|
|
320,723
|
|
||||||
Gas Well Closing
|
—
|
|
|
119,429
|
|
|
56,174
|
|
|
—
|
|
|
—
|
|
|
175,603
|
|
||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
71,136
|
|
|
332
|
|
|
—
|
|
|
71,468
|
|
||||||
Salary Retirement
|
48,252
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,252
|
|
||||||
Reclamation
|
—
|
|
|
—
|
|
|
40,706
|
|
|
—
|
|
|
—
|
|
|
40,706
|
|
||||||
Other
|
55,227
|
|
|
61,190
|
|
|
14,938
|
|
|
—
|
|
|
—
|
|
|
131,355
|
|
||||||
Total Deferred Credits and Other Liabilities
|
(129,425
|
)
|
|
656,166
|
|
|
1,576,775
|
|
|
332
|
|
|
—
|
|
|
2,103,848
|
|
||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
5,006,289
|
|
|
4,878,807
|
|
|
6,931,418
|
|
|
139,436
|
|
|
(11,949,661
|
)
|
|
5,006,289
|
|
||||||
Total Liabilities and Equity
|
$
|
12,748,647
|
|
|
$
|
6,353,163
|
|
|
$
|
3,915,119
|
|
|
$
|
326,399
|
|
|
$
|
(11,949,661
|
)
|
|
$
|
11,393,667
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
51,093
|
|
|
$
|
440,763
|
|
|
$
|
572,683
|
|
|
$
|
(843,456
|
)
|
|
$
|
332,487
|
|
|
$
|
553,570
|
|
Net Cash Provided by Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
105,206
|
|
|
—
|
|
|
105,206
|
|
||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
51,093
|
|
|
$
|
440,763
|
|
|
$
|
572,683
|
|
|
$
|
(738,250
|
)
|
|
$
|
332,487
|
|
|
$
|
658,776
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
$
|
(68,796
|
)
|
|
$
|
(968,607
|
)
|
|
$
|
(458,653
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,496,056
|
)
|
Changes in Restricted Cash
|
—
|
|
|
—
|
|
|
68,673
|
|
|
—
|
|
|
—
|
|
|
68,673
|
|
||||||
Proceeds from Sales of Assets
|
327,964
|
|
|
350,975
|
|
|
(195,082
|
)
|
|
112
|
|
|
—
|
|
|
483,969
|
|
||||||
(Investments in), net of Distributions from, Equity Affiliates
|
—
|
|
|
(47,500
|
)
|
|
11,788
|
|
|
—
|
|
|
—
|
|
|
(35,712
|
)
|
||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
259,168
|
|
|
$
|
(665,132
|
)
|
|
$
|
(573,274
|
)
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
(979,126
|
)
|
Net Cash Provided by Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
777,145
|
|
|
—
|
|
|
777,145
|
|
||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
259,168
|
|
|
$
|
(665,132
|
)
|
|
$
|
(573,274
|
)
|
|
$
|
777,257
|
|
|
$
|
—
|
|
|
$
|
(201,981
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Payments on) Proceeds from Miscellaneous Borrowings
|
$
|
(25,952
|
)
|
|
$
|
—
|
|
|
$
|
(4,800
|
)
|
|
$
|
(792
|
)
|
|
$
|
—
|
|
|
$
|
(31,544
|
)
|
Payments on Securitization Facility
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,846
|
)
|
|
—
|
|
|
(37,846
|
)
|
||||||
Dividends (Paid)
|
14,168
|
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85,832
|
)
|
||||||
(Payments on) Proceeds from Short-Term Borrowings
|
—
|
|
|
332,487
|
|
|
—
|
|
|
—
|
|
|
(332,487
|
)
|
|
—
|
|
||||||
Proceeds from Issuance of Common Stock
|
3,727
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,727
|
|
||||||
Other Financing Activities
|
778
|
|
|
(5,232
|
)
|
|
5,232
|
|
|
—
|
|
|
—
|
|
|
778
|
|
||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
(7,279
|
)
|
|
$
|
227,255
|
|
|
$
|
432
|
|
|
$
|
(38,638
|
)
|
|
$
|
(332,487
|
)
|
|
$
|
(150,717
|
)
|
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(520
|
)
|
|
—
|
|
|
(520
|
)
|
||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(7,279
|
)
|
|
$
|
227,255
|
|
|
$
|
432
|
|
|
$
|
(39,158
|
)
|
|
$
|
(332,487
|
)
|
|
$
|
(151,237
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Income (Loss)
|
$
|
660,442
|
|
|
$
|
(2,624
|
)
|
|
$
|
455,935
|
|
|
$
|
585,616
|
|
|
$
|
(1,040,313
|
)
|
|
$
|
659,056
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
456,493
|
|
|
—
|
|
|
456,493
|
|
|
—
|
|
|
(456,493
|
)
|
|
456,493
|
|
||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge
|
45,631
|
|
|
45,631
|
|
|
—
|
|
|
—
|
|
|
(45,631
|
)
|
|
45,631
|
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(79,899
|
)
|
|
(79,899
|
)
|
|
—
|
|
|
—
|
|
|
79,899
|
|
|
(79,899
|
)
|
||||||
Other Comprehensive Income (Loss):
|
$
|
422,225
|
|
|
$
|
(34,268
|
)
|
|
$
|
456,493
|
|
|
$
|
—
|
|
|
$
|
(422,225
|
)
|
|
$
|
422,225
|
|
Comprehensive Income (Loss)
|
1,082,667
|
|
|
(36,892
|
)
|
|
912,428
|
|
|
585,616
|
|
|
(1,462,538
|
)
|
|
1,081,281
|
|
||||||
Less: Net Loss Attributable to Noncontrolling Interests
|
—
|
|
|
(1,386
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,386
|
)
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
1,082,667
|
|
|
$
|
(35,506
|
)
|
|
$
|
912,428
|
|
|
$
|
585,616
|
|
|
$
|
(1,462,538
|
)
|
|
$
|
1,082,667
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
661,192
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,372
|
)
|
|
$
|
658,820
|
|
Coal Sales
|
—
|
|
|
—
|
|
|
2,169,625
|
|
|
—
|
|
|
—
|
|
|
2,169,625
|
|
||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
51,046
|
|
|
243,059
|
|
|
—
|
|
|
294,105
|
|
||||||
Gas Royalty Interests and Purchased Gas Sales
|
—
|
|
|
52,721
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,721
|
|
||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
107,079
|
|
|
—
|
|
|
—
|
|
|
107,079
|
|
||||||
Miscellaneous Other Income
|
613,340
|
|
|
45,232
|
|
|
46,313
|
|
|
21,626
|
|
|
(613,341
|
)
|
|
113,170
|
|
||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
10,964
|
|
|
271,029
|
|
|
13
|
|
|
—
|
|
|
282,006
|
|
||||||
Total Revenue and Other Income
|
613,340
|
|
|
770,109
|
|
|
2,645,092
|
|
|
264,698
|
|
|
(615,713
|
)
|
|
3,677,526
|
|
||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease Operating Expense
|
—
|
|
|
90,837
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,837
|
|
||||||
Transportation, Gathering and Compression
|
—
|
|
|
160,579
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
160,579
|
|
||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
26,145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,145
|
|
||||||
Direct Administrative and Selling
|
—
|
|
|
47,565
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,565
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
205,149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
205,149
|
|
||||||
Exploration and Production Related Other Costs
|
—
|
|
|
39,005
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,005
|
|
||||||
Production Royalty Interests and Purchased Gas Costs
|
—
|
|
|
41,633
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
41,578
|
|
||||||
Other Corporate Expenses
|
—
|
|
|
81,028
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
81,033
|
|
||||||
General and Administrative
|
—
|
|
|
33,686
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,686
|
|
||||||
Total Exploration and Production Costs
|
—
|
|
|
725,627
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
725,577
|
|
||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and Other Costs
|
9,292
|
|
|
—
|
|
|
1,356,575
|
|
|
—
|
|
|
92,046
|
|
|
1,457,913
|
|
||||||
Royalties and Production Taxes
|
—
|
|
|
—
|
|
|
117,194
|
|
|
—
|
|
|
—
|
|
|
117,194
|
|
||||||
Direct Administrative and Selling
|
—
|
|
|
—
|
|
|
54,910
|
|
|
—
|
|
|
—
|
|
|
54,910
|
|
||||||
Depreciation, Depletion and Amortization
|
11,491
|
|
|
—
|
|
|
208,145
|
|
|
—
|
|
|
—
|
|
|
219,636
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
107,079
|
|
|
—
|
|
|
—
|
|
|
107,079
|
|
||||||
General and Administrative Costs
|
—
|
|
|
—
|
|
|
42,662
|
|
|
—
|
|
|
—
|
|
|
42,662
|
|
||||||
Other Corporate Expenses
|
52,900
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,900
|
|
||||||
Total Coal Costs
|
73,683
|
|
|
—
|
|
|
1,886,565
|
|
|
—
|
|
|
92,046
|
|
|
2,052,294
|
|
||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Miscellaneous Operating Expense
|
78,861
|
|
|
—
|
|
|
—
|
|
|
244,635
|
|
|
(53,843
|
)
|
|
269,653
|
|
||||||
General and Administrative Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
943
|
|
|
—
|
|
|
943
|
|
||||||
Depreciation, Depletion and Amortization
|
266
|
|
|
—
|
|
|
—
|
|
|
2,064
|
|
|
—
|
|
|
2,330
|
|
||||||
Interest Expense
|
208,894
|
|
|
5,098
|
|
|
6,470
|
|
|
44
|
|
|
(464
|
)
|
|
220,042
|
|
||||||
Total Other Costs
|
288,021
|
|
|
5,098
|
|
|
6,470
|
|
|
247,686
|
|
|
(54,307
|
)
|
|
492,968
|
|
||||||
Total Costs And Expenses
|
361,704
|
|
|
730,725
|
|
|
1,893,035
|
|
|
247,686
|
|
|
37,689
|
|
|
3,270,839
|
|
||||||
Earnings (Loss) Before Income Tax
|
251,636
|
|
|
39,384
|
|
|
752,057
|
|
|
17,012
|
|
|
(653,402
|
)
|
|
406,687
|
|
||||||
Income Taxes
|
(136,834
|
)
|
|
15,021
|
|
|
204,105
|
|
|
6,436
|
|
|
—
|
|
|
88,728
|
|
||||||
Income (Loss) From Continuing Operations
|
388,470
|
|
|
24,363
|
|
|
547,952
|
|
|
10,576
|
|
|
(653,402
|
)
|
|
317,959
|
|
||||||
Income From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
70,114
|
|
|
—
|
|
|
70,114
|
|
||||||
Net Income (Loss)
|
388,470
|
|
|
24,363
|
|
|
547,952
|
|
|
80,690
|
|
|
(653,402
|
)
|
|
388,073
|
|
||||||
Less: Net Loss Attributable to Noncontrolling Interests
|
—
|
|
|
(397
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(397
|
)
|
||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
388,470
|
|
|
$
|
24,760
|
|
|
$
|
547,952
|
|
|
$
|
80,690
|
|
|
$
|
(653,402
|
)
|
|
$
|
388,470
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
(58,410
|
)
|
|
$
|
82,036
|
|
|
$
|
412,293
|
|
|
$
|
21,423
|
|
|
$
|
—
|
|
|
$
|
457,342
|
|
Net Cash Provided by Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
270,771
|
|
|
—
|
|
|
270,771
|
|
||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
(58,410
|
)
|
|
$
|
82,036
|
|
|
$
|
412,293
|
|
|
$
|
292,194
|
|
|
$
|
—
|
|
|
$
|
728,113
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
$
|
(49,973
|
)
|
|
$
|
(532,636
|
)
|
|
$
|
(662,888
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,245,497
|
)
|
Changes in Restricted Cash
|
—
|
|
|
—
|
|
|
(48,294
|
)
|
|
—
|
|
|
—
|
|
|
(48,294
|
)
|
||||||
Proceeds From Sales of Assets
|
—
|
|
|
360,129
|
|
|
285,238
|
|
|
254
|
|
|
—
|
|
|
645,621
|
|
||||||
(Investments in), net of Distributions from, Equity Affiliates
|
200,000
|
|
|
(37,400
|
)
|
|
13,949
|
|
|
—
|
|
|
(200,000
|
)
|
|
(23,451
|
)
|
||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
150,027
|
|
|
$
|
(209,907
|
)
|
|
$
|
(411,995
|
)
|
|
$
|
254
|
|
|
$
|
(200,000
|
)
|
|
$
|
(671,621
|
)
|
Net Cash Used in Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(328,789
|
)
|
|
—
|
|
|
(328,789
|
)
|
||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
150,027
|
|
|
$
|
(209,907
|
)
|
|
$
|
(411,995
|
)
|
|
$
|
(328,535
|
)
|
|
$
|
(200,000
|
)
|
|
$
|
(1,000,410
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends (Paid)
|
$
|
(142,278
|
)
|
|
$
|
(200,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200,000
|
|
|
$
|
(142,278
|
)
|
Proceeds from Issuance of Common Stock
|
8,278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,278
|
|
||||||
Other Financing Activities
|
22,532
|
|
|
(5,504
|
)
|
|
(1,408
|
)
|
|
37,404
|
|
|
—
|
|
|
53,024
|
|
||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
(111,468
|
)
|
|
$
|
(205,504
|
)
|
|
$
|
(1,408
|
)
|
|
$
|
37,404
|
|
|
$
|
200,000
|
|
|
$
|
(80,976
|
)
|
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
(601
|
)
|
||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(111,468
|
)
|
|
$
|
(205,504
|
)
|
|
$
|
(1,408
|
)
|
|
$
|
36,803
|
|
|
$
|
200,000
|
|
|
$
|
(81,577
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Income (Loss)
|
$
|
388,470
|
|
|
$
|
24,363
|
|
|
$
|
547,952
|
|
|
$
|
80,690
|
|
|
$
|
(653,402
|
)
|
|
$
|
388,073
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
129,231
|
|
|
—
|
|
|
129,231
|
|
|
—
|
|
|
(129,231
|
)
|
|
129,231
|
|
||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge
|
114,240
|
|
|
114,240
|
|
|
—
|
|
|
—
|
|
|
(114,240
|
)
|
|
114,240
|
|
||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(189,259
|
)
|
|
(189,259
|
)
|
|
—
|
|
|
—
|
|
|
189,259
|
|
|
(189,259
|
)
|
||||||
Other Comprehensive Income (Loss):
|
$
|
54,212
|
|
|
$
|
(75,019
|
)
|
|
$
|
129,231
|
|
|
$
|
—
|
|
|
$
|
(54,212
|
)
|
|
$
|
54,212
|
|
Comprehensive Income (Loss)
|
442,682
|
|
|
(50,656
|
)
|
|
677,183
|
|
|
80,690
|
|
|
(707,614
|
)
|
|
442,285
|
|
||||||
Less: Net Loss Attributable to Noncontrolling Interests
|
—
|
|
|
(397
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(397
|
)
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
442,682
|
|
|
$
|
(50,259
|
)
|
|
$
|
677,183
|
|
|
$
|
80,690
|
|
|
$
|
(707,614
|
)
|
|
$
|
442,682
|
|
|
|
As of December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Proven properties
|
|
$
|
1,768,007
|
|
|
$
|
1,670,404
|
|
Unproven properties
|
|
1,540,835
|
|
|
1,463,406
|
|
||
Intangible drilling costs
|
|
2,798,394
|
|
|
1,937,336
|
|
||
Wells and related equipment
|
|
716,748
|
|
|
688,548
|
|
||
Gathering assets
|
|
1,088,238
|
|
|
1,058,008
|
|
||
Gas well plugging
|
|
111,227
|
|
|
113,481
|
|
||
Total Property, Plant and Equipment
|
|
8,023,449
|
|
|
6,931,183
|
|
||
Accumulated Depreciation, Depletion and Amortization
|
|
(1,515,983
|
)
|
|
(1,187,409
|
)
|
||
Net Capitalized Costs
|
|
$
|
6,507,466
|
|
|
$
|
5,743,774
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Property acquisitions
|
|
|
|
|
|
|
||||||
Proven properties
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,005
|
|
Unproven properties
|
|
119,597
|
|
|
260,477
|
|
|
28,634
|
|
|||
Development
|
|
952,733
|
|
|
629,100
|
|
|
339,608
|
|
|||
Exploration
|
|
45,006
|
|
|
95,413
|
|
|
130,312
|
|
|||
Total
|
|
$
|
1,117,336
|
|
|
$
|
984,990
|
|
|
$
|
548,559
|
|
(*)
|
Includes costs incurred whether capitalized or expensed.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Production Revenue
|
|
$
|
1,030,574
|
|
|
$
|
740,869
|
|
|
$
|
660,442
|
|
Royalty Interest Gas Revenue
|
|
82,428
|
|
|
63,202
|
|
|
49,405
|
|
|||
Purchased Gas Revenue
|
|
8,999
|
|
|
6,531
|
|
|
3,316
|
|
|||
Total Revenue
|
|
1,122,001
|
|
|
810,602
|
|
|
713,163
|
|
|||
Lifting Costs
|
|
118,391
|
|
|
96,601
|
|
|
90,837
|
|
|||
Ad Valorem, Severance & Other Taxes
|
|
39,418
|
|
|
28,676
|
|
|
26,145
|
|
|||
Gathering Costs
|
|
258,110
|
|
|
201,024
|
|
|
160,579
|
|
|||
Royalty Interest Gas Costs
|
|
69,946
|
|
|
53,069
|
|
|
38,922
|
|
|||
Direct Administrative, Selling & Other Costs
|
|
55,092
|
|
|
49,092
|
|
|
47,565
|
|
|||
Other Costs
|
|
22,719
|
|
|
61,107
|
|
|
39,029
|
|
|||
Purchased Gas Costs
|
|
7,251
|
|
|
4,837
|
|
|
2,711
|
|
|||
DD&A
|
|
314,381
|
|
|
231,809
|
|
|
205,149
|
|
|||
Total Costs
|
|
885,308
|
|
|
726,215
|
|
|
610,937
|
|
|||
Pre-tax Operating Income
|
|
236,693
|
|
|
84,387
|
|
|
102,226
|
|
|||
Income Taxes
|
|
82,894
|
|
|
32,067
|
|
|
38,989
|
|
|||
Results of Operations for Producing Activities excluding Corporate and Interest Costs
|
|
$
|
153,799
|
|
|
$
|
52,320
|
|
|
$
|
63,237
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Production (MMcfe)
|
|
235,714
|
|
|
172,380
|
|
|
156,325
|
|
|||
Average gas sales price before effects of financial settlements (per Mcf)
|
|
$
|
4.26
|
|
|
$
|
3.85
|
|
|
$
|
3.00
|
|
Average effects of financial settlements (per Mcf)
|
|
$
|
0.11
|
|
|
$
|
0.45
|
|
|
$
|
1.22
|
|
Average gas sales price including effects of financial settlements (per Mcf)
|
|
$
|
4.37
|
|
|
$
|
4.30
|
|
|
$
|
4.22
|
|
Average lifting costs, excluding ad valorem and severance taxes (per Mcf)
|
|
$
|
0.50
|
|
|
$
|
0.56
|
|
|
$
|
0.58
|
|
|
|
Gross
|
|
Net(1)
|
||
Producing Gas Wells (including gob wells)
|
|
17,044
|
|
|
12,918
|
|
Producing Oil Wells
|
|
154
|
|
|
34
|
|
Proved Developed Acreage
|
|
537,935
|
|
|
515,439
|
|
Proved Undeveloped Acreage
|
|
112,617
|
|
|
63,801
|
|
Unproved Acreage
|
|
4,946,174
|
|
|
3,933,975
|
|
Total Acreage
|
|
5,596,726
|
|
|
4,513,215
|
|
(1)
|
Net acres include acreage attributable to our working interests of the properties. Additional adjustments (either increases or decreases) may be required as we further develop title to and further confirm our rights with respect to our various properties in anticipation of development. We believe that our assumptions and methodology in this regard are reasonable.
|
|
|
|
|
|
|
Condensate
|
|
Consolidated
|
||||
|
|
Natural Gas
|
|
NGLs
|
|
& Crude Oil
|
|
Operations
|
||||
|
|
(MMcfe)
|
|
(Mbbls)
|
|
(Mbbls)
|
|
(MMcfe)
|
||||
Balance December 31, 2011 (c)
|
|
3,470,551
|
|
|
25
|
|
|
1,555
|
|
|
3,480,027
|
|
Revisions (a)
|
|
243,442
|
|
|
469
|
|
|
(710
|
)
|
|
241,989
|
|
Price Changes
|
|
(526,608
|
)
|
|
—
|
|
|
(1
|
)
|
|
(526,611
|
)
|
Extensions and Discoveries (b)
|
|
873,104
|
|
|
12,992
|
|
|
553
|
|
|
954,378
|
|
Production
|
|
(155,052
|
)
|
|
(111
|
)
|
|
(100
|
)
|
|
(156,325
|
)
|
Balance December 31, 2012 (c)
|
|
3,905,437
|
|
|
13,375
|
|
|
1,297
|
|
|
3,993,458
|
|
Revisions (a)
|
|
176,045
|
|
|
(1,017
|
)
|
|
336
|
|
|
171,953
|
|
Price Changes
|
|
104,728
|
|
|
4
|
|
|
1
|
|
|
104,757
|
|
Extensions and Discoveries (b)
|
|
1,567,634
|
|
|
9,623
|
|
|
1,343
|
|
|
1,633,426
|
|
Production
|
|
(168,737
|
)
|
|
(438
|
)
|
|
(170
|
)
|
|
(172,380
|
)
|
Balance December 31, 2013 (c)
|
|
5,585,107
|
|
|
21,547
|
|
|
2,807
|
|
|
5,731,214
|
|
Revisions (d)
|
|
(46,560
|
)
|
|
40,363
|
|
|
3,756
|
|
|
218,168
|
|
Price Changes
|
|
15,512
|
|
|
—
|
|
|
—
|
|
|
15,512
|
|
Extensions and Discoveries (e)
|
|
979,801
|
|
|
18,459
|
|
|
1,314
|
|
|
1,098,436
|
|
Production
|
|
(216,260
|
)
|
|
(2,578
|
)
|
|
(664
|
)
|
|
(235,714
|
)
|
Balance December 31, 2014 (c)
|
|
6,317,600
|
|
|
77,791
|
|
|
7,213
|
|
|
6,827,616
|
|
|
|
|
|
|
|
|
|
|
||||
Proved developed reserves:
|
|
|
|
|
|
|
|
|
||||
December 31, 2012
|
|
2,149,912
|
|
|
1,717
|
|
|
878
|
|
|
2,165,483
|
|
December 31, 2013
|
|
2,470,412
|
|
|
5,939
|
|
|
1,375
|
|
|
2,514,294
|
|
December 31, 2014
|
|
2,979,906
|
|
|
32,406
|
|
|
4,062
|
|
|
3,198,706
|
|
|
|
|
|
|
|
|
|
|
||||
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
||||
December 31, 2012
|
|
1,755,525
|
|
|
12,075
|
|
|
—
|
|
|
1,827,975
|
|
December 31, 2013
|
|
3,114,695
|
|
|
15,607
|
|
|
1,431
|
|
|
3,216,920
|
|
December 31, 2014
|
|
3,337,694
|
|
|
45,385
|
|
|
3,151
|
|
|
3,628,910
|
|
(a)
|
Revisions are primarily due to corporate planning changes that affect the number of wells (5-Years) forecasted to be drilled in our various areas and reservoirs. These changes along with upward revisions attributable to efficiencies in operations and well performance had the total affect of the positive revisions for 2013 and 2012.
|
(b)
|
Extensions and Discoveries in 2013 and 2012 are primarily due to the addition of wells on our Marcellus Shale acreage more than one offset location away with reliable technology.
|
(c)
|
Proved developed and proved undeveloped gas reserves are defined by SEC Rule 4.10(a) of Regulation S-X. Generally, these reserves would be commercially recovered under current economic conditions, operating methods and government regulations. CONSOL Energy cautions that there are many inherent uncertainties in estimating proved reserve quantities, projecting future production rates and timing of development expenditures. Proved oil and gas reserves are estimated quantities of natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions and government regulations. Proved developed reserves are those reserves expected to be recovered through existing wells, with existing equipment and operating methods.
|
(d)
|
Revisions for 2014 are primarily due to efficiencies in operations and
well optimization and had the total effect of positive revisions. Additionally, the 2014 revisions include a reclassification of ethane volumes from natural gas to NGLs.
|
(e)
|
Extensions and Discoveries in 2014 are primarily due to the addition of wells on our Marcellus and Utica Shale acreage. We also included Marcellus Shale wells which are more than one offset location away due to continued use of reliable technology.
|
|
|
For the Year
|
|
|
|
Ended
|
|
|
|
December 31,
|
|
|
|
2014
|
|
Proved Undeveloped Reserves (MMcfe)
|
|
|
|
Beginning proved undeveloped reserves
|
|
3,216,920
|
|
Undeveloped reserves transferred to developed(a)
|
|
(526,839
|
)
|
Price Changes
|
|
(1,293
|
)
|
Plan and other revisions (b)
|
|
(9,034
|
)
|
Extension and discoveries
|
|
949,156
|
|
Ending proved undeveloped reserves(c)(d)
|
|
3,628,910
|
|
(a)
|
During 2014, various exploration and development drilling and evaluations were completed. Approximately, $
389,838
of
capital was spent in the year ended December 31, 2014 related to undeveloped reserves that were transferred to developed.
|
(c)
|
Included in proved undeveloped reserves at December 31, 2014 are approximately 212,161 MMcfe of reserves that have been reported for more than five years. These reserves specifically relate to CONSOL Energy's Buchanan Mine, more specifically, to GOB (a rubble zone formed in the cavity created by the extraction of coal) production due to a complex fracture being generated in the overburden strata above the mined seam. Mining operations take a significant amount of time and our GOB forecasts are consistent with the future plans of the Buchanan Mine. Evidence also exists that supports the continual operation of the mine beyond the current plan, unless there was an extreme circumstance which resulted from an external factor. These reasons constitute that specific circumstances exist to continue recognizing these reserves for CONSOL Energy.
|
(d)
|
Included in proved undeveloped reserves at December 31, 2014 are 229 gross proved undeveloped locations that generate positive future net revenue but have negative present worth discounted at 10 percent as of December 31, 2014, representing 12.1% of our total proved undeveloped reserves. Additionally, the 438.8
Bcfe of natural gas and equivalents attributable to these locations represent approximately 6.4% of our total proved reserves. The Company includes these well sites in its current drilling plans and currently intends to drill these sites as our economic modeling of these well locations generate positive future cash flows.
|
|
|
December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Costs reclassified to wells, equipment and facilities based on the determination of proved reserves
|
|
$
|
27,453
|
|
|
$
|
12,140
|
|
|
$
|
14,447
|
|
Costs expensed due to determination of dry hole or abandonment of project
|
|
$
|
2,041
|
|
|
$
|
8,596
|
|
|
$
|
3,320
|
|
|
|
December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Future Cash Flows:
|
|
|
|
|
|
|
||||||
Revenues
|
|
$
|
28,502,852
|
|
|
$
|
21,602,594
|
|
|
$
|
11,777,550
|
|
Production costs
|
|
(10,100,868
|
)
|
|
(7,105,962
|
)
|
|
(4,823,670
|
)
|
|||
Development costs
|
|
(3,368,621
|
)
|
|
(3,902,875
|
)
|
|
(2,450,589
|
)
|
|||
Income tax expense
|
|
(5,711,989
|
)
|
|
(4,025,626
|
)
|
|
(1,711,251
|
)
|
|||
Future Net Cash Flows
|
|
9,321,374
|
|
|
6,568,131
|
|
|
2,792,040
|
|
|||
Discounted to present value at a 10% annual rate
|
|
(6,337,216
|
)
|
|
(4,887,320
|
)
|
|
(2,055,834
|
)
|
|||
Total standardized measure of discounted net cash flows
|
|
$
|
2,984,158
|
|
|
$
|
1,680,811
|
|
|
$
|
736,206
|
|
|
|
December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Balance at beginning of period
|
|
$
|
1,680,811
|
|
|
$
|
736,206
|
|
|
$
|
1,747,181
|
|
Net changes in sales prices and production costs
|
|
517,731
|
|
|
1,295,956
|
|
|
(1,480,573
|
)
|
|||
Sales net of production costs
|
|
(559,563
|
)
|
|
(365,477
|
)
|
|
(104,518
|
)
|
|||
Net change due to revisions in quantity estimates
|
|
151,233
|
|
|
132,900
|
|
|
(104,158
|
)
|
|||
Net change due to extensions, discoveries and improved recovery
|
|
418,775
|
|
|
383,308
|
|
|
14,645
|
|
|||
Development costs incurred during the period
|
|
952,733
|
|
|
625,824
|
|
|
333,640
|
|
|||
Difference in previously estimated development costs compared to actual costs incurred during the period
|
|
(102,949
|
)
|
|
(123,976
|
)
|
|
(96,749
|
)
|
|||
Changes in estimated future development costs
|
|
595,221
|
|
|
(486,518
|
)
|
|
(153,104
|
)
|
|||
Net change in future income taxes
|
|
(798,470
|
)
|
|
(578,951
|
)
|
|
619,045
|
|
|||
Accretion of discount and other
|
|
128,636
|
|
|
61,539
|
|
|
(39,203
|
)
|
|||
Total discounted cash flow at end of period
|
|
$
|
2,984,158
|
|
|
$
|
1,680,811
|
|
|
$
|
736,206
|
|
|
|
Millions of Tons
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|||||||||||||
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
Proved and probable reserves at beginning of period
|
|
3,032
|
|
|
4,229
|
|
|
4,314
|
|
|
4,229
|
|
|
4,350
|
|
Purchased reserves
|
|
—
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
4
|
|
Reserves sold in place
|
|
(233
|
)
|
|
(1,199
|
)
|
|
(155
|
)
|
|
—
|
|
|
(41
|
)
|
Production
|
|
(32
|
)
|
|
(55
|
)
|
|
(55
|
)
|
|
(62
|
)
|
|
(62
|
)
|
Revisions and other changes
|
|
471
|
|
|
56
|
|
|
125
|
|
|
141
|
|
|
(22
|
)
|
Consolidated proved and probable reserves at end of period*
|
|
3,238
|
|
|
3,032
|
|
|
4,229
|
|
|
4,314
|
|
|
4,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Proportionate share of proved and probable reserves of unconsolidated equity affiliates (excluded from the table above)*
|
|
55
|
|
|
57
|
|
|
41
|
|
|
145
|
|
|
172
|
|
|
|
Three Months Ended
|
||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
||||||||
Sales (A)
|
|
$
|
900,485
|
|
|
$
|
855,867
|
|
|
$
|
833,806
|
|
|
$
|
857,794
|
|
Freight Revenue
|
|
$
|
9,945
|
|
|
$
|
10,109
|
|
|
$
|
2,497
|
|
|
$
|
5,597
|
|
Costs and Expenses (B)
|
|
$
|
573,240
|
|
|
$
|
615,161
|
|
|
$
|
610,553
|
|
|
$
|
574,741
|
|
Freight Expense
|
|
$
|
9,945
|
|
|
$
|
10,109
|
|
|
$
|
2,497
|
|
|
$
|
5,597
|
|
Income (Loss) from Continuing Operations
|
|
$
|
121,691
|
|
|
$
|
(24,935
|
)
|
|
$
|
(1,645
|
)
|
|
$
|
73,666
|
|
(Loss) Income from Discontinued Operations
|
|
$
|
(5,687
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net Income (Loss) Attributable to CONSOL Energy Inc Shareholders
|
|
$
|
116,004
|
|
|
$
|
(24,935
|
)
|
|
$
|
(1,645
|
)
|
|
$
|
73,666
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Income (Loss) from Continuing Operations
|
|
$
|
0.53
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.32
|
|
(Loss) Income from Discontinued Operations
|
|
$
|
(0.02
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net Income (Loss)
|
|
$
|
0.51
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.32
|
|
Dilutive:
|
|
|
|
|
|
|
|
|
||||||||
Income (Loss) from Continuing Operations
|
|
$
|
0.53
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.32
|
|
(Loss) Income from Discontinued Operations
|
|
$
|
(0.03
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net Income (Loss)
|
|
$
|
0.50
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.32
|
|
|
|
Three Months Ended
|
||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
||||||||
Sales (A)
|
|
$
|
799,997
|
|
|
$
|
759,948
|
|
|
$
|
753,081
|
|
|
$
|
772,258
|
|
Freight Revenue
|
|
$
|
12,253
|
|
|
$
|
9,660
|
|
|
$
|
9,579
|
|
|
$
|
3,946
|
|
Costs and Expenses (B)
|
|
$
|
606,729
|
|
|
$
|
560,801
|
|
|
$
|
566,453
|
|
|
$
|
572,505
|
|
Freight Expense
|
|
$
|
12,253
|
|
|
$
|
9,660
|
|
|
$
|
9,579
|
|
|
$
|
3,946
|
|
(Loss) Income from Continuing Operations
|
|
$
|
(3,724
|
)
|
|
$
|
8,562
|
|
|
$
|
(72,169
|
)
|
|
$
|
146,595
|
|
Income (Loss) from Discontinued Operations
|
|
$
|
1,903
|
|
|
$
|
(21,375
|
)
|
|
$
|
8,120
|
|
|
$
|
591,144
|
|
Net (Loss) Income Attributable to CONSOL Energy Inc Shareholders
|
|
$
|
(1,564
|
)
|
|
$
|
(12,526
|
)
|
|
$
|
(63,651
|
)
|
|
$
|
738,183
|
|
Earnings Per Share
|
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
(Loss) Income from Continuing Operations
|
|
$
|
(0.02
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.64
|
|
Income (Loss) from Discontinued Operations
|
|
$
|
0.01
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.03
|
|
|
$
|
2.59
|
|
Net (Loss) Income
|
|
$
|
(0.01
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
3.23
|
|
Dilutive:
|
|
|
|
|
|
|
|
|
||||||||
(Loss) Income from Continuing Operations
|
|
$
|
(0.02
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.64
|
|
Income (Loss) from Discontinued Operations
|
|
$
|
0.01
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.03
|
|
|
$
|
2.57
|
|
Net (Loss) Income
|
|
$
|
(0.01
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
3.21
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
Name
|
|
Age
|
|
Position
|
Nicholas J. DeIuliis
|
|
46
|
|
President and Chief Executive Officer
|
Stephen W. Johnson
|
|
56
|
|
Executive Vice President - Chief Legal and Corporate Affairs Officer
|
David M. Khani
|
|
51
|
|
Executive Vice President and Chief Financial Officer
|
James C. Grech
|
|
53
|
|
Executive Vice President and Chief Commercial Officer
|
Timothy C. Dugan
|
|
53
|
|
Chief Operating Officer - Exploration and Production
|
James A. Brock
|
|
58
|
|
Chief Operating Officer - Coal
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBIT INDEX
|
(A)(1)
|
|
Financial Statements Contained in Item 8 hereof.
|
(A)(2)
|
|
Financial Statement Schedule-Schedule II Valuation and qualifying accounts.
|
2.1
|
|
Purchase and Sale Agreement, dated as of March 14, 2010, among Dominion Resources, Inc., Dominion Transmission, Inc., Dominion Energy, Inc. and CONSOL Energy Holdings LLC VI, incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on March 16, 2010.
|
2.2
|
|
Parent Guarantee, dated March 14, 2010, by and among CONSOL Energy Inc. and Dominion Resources, Inc., Dominion Transmission, Inc. and Dominion Energy, Inc., incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on March 16, 2010.
|
2.3
|
|
Asset Acquisition Agreement dated August 17, 2011 between CNX Gas Company LLC and Noble Energy, Inc., incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on August 18, 2011.
|
2.4
|
|
Joint Development Agreement by and among CNX Gas Company LLC and Noble Energy, Inc. dated as of September 30, 2011, incorporated by reference to Exhibit 2.2 to Form 10-Q (file no. 001-14901) for the quarter ended September 30, 2011, filed on October 31, 2011.
|
2.5
|
|
Stock Purchase Agreement, dated October 25, 2013, among CONSOL Energy Inc., Consolidation Coal Company, Ohio Valley Resources, Inc., and, as to certain provisions of the Purchase Agreement, Murray Energy Corporation, incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on December 11, 2013.
|
3.1
|
|
Restated Certificate of Incorporation of CONSOL Energy Inc., incorporated by reference to Exhibit 3.1 to Form 8-K (file no. 001-14901) filed on May 8, 2006.
|
3.2
|
|
Amended and Restated Bylaws of CONSOL Energy Inc., dated as of December 9, 2014, incorporated by reference to Exhibit 3.1 to Form 8-K (file no. 001-14901) filed on December 10, 2014.
|
4.1
|
|
Indenture, dated as of April 1, 2010, among CONSOL Energy Inc., the Subsidiary Guarantors named therein and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.00% Senior Notes due 2017, incorporated by reference to Exhibit 4.1 to Form 8-K (file no. 001-14901) filed on April 2, 2010.
|
4.2
|
|
Supplemental Indenture, dated as of April 30, 2010, among Dominion Exploration & Production, Inc., Dominion Reserves, Inc., Dominion Coalbed Methane, Inc., Dominion Appalachian Development, LLC, Dominion Appalachian Development Properties, LLC, CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.00% Senior Notes due 2017, incorporated by reference to Exhibit 4.4 to Form 8-K/A (file no. 001-14901) filed on August 6, 2010.
|
4.3
|
|
Supplemental Indenture No. 2, dated as of June 16, 2010, among Cardinal States Gathering Company, CNX Gas Company LLC, CNX Gas Corporation, Coalfield Pipeline Company, Knox Energy, LLC, MOB Corporation, CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.00% Senior Notes due 2017, incorporated by reference to Exhibit 4.5 to Form 8-K/A (file no. 001-14901) filed on August 6, 2010.
|
4.4
|
|
Supplemental Indenture No. 3, dated as of August 24, 2011, to Indenture dated as of April 1, 2010 among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.00% Senior Notes due 2017, incorporated by reference to Exhibit 4.1 to Form 8-K (file no. 001-14901) filed on August 29, 2011.
|
4.5
|
|
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, incorporated by reference to Exhibit 4.1 of Form 10-Q (file no. 001-14901) filed on November 1, 2013.
|
4.6
|
|
Indenture, dated as of April 1, 2010, among CONSOL Energy, Inc., the Subsidiary Guarantors named therein and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.25% Senior Notes due 2020, incorporated by reference to Exhibit 4.2 to Form 8-K (file no. 001-14901) filed on April 2, 2010.
|
4.7
|
|
Supplemental Indenture, dated as of April 30, 2010, among Dominion Exploration & Production, Inc., Dominion Reserves, Inc., Dominion Coalbed Methane, Inc., Dominion Appalachian Development, LLC, Dominion Appalachian Development Properties, LLC, CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.25% Senior Notes due 2020, incorporated by reference to Exhibit 4.6 to Form 8-K/A (file no. 001-14901) filed on August 6, 2010.
|
4.8
|
|
Supplemental Indenture No. 2, dated as of June 16, 2010, among Cardinal States Gathering Company, CNX Gas Company LLC, CNX Gas Corporation, Coalfield Pipeline Company, Knox Energy, LLC, MOB Corporation, CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.25% Senior Notes due 2020, incorporated by reference to Exhibit 4.7 to Form 8-K/A (file no. 001-14901) filed on August 6, 2010.
|
4.9
|
|
Supplemental Indenture No. 3, dated as of August 24, 2011, to Indenture dated as of April 1, 2010 among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 8.25% Senior Notes due 2020, incorporated by reference to Exhibit 4.2 to Form 8-K (file no. 001-14901) filed on August 29, 2011.
|
4.10
|
|
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, incorporated by reference to Exhibit 4.2 of Form 10-Q (file no. 001-14901) filed on November 1, 2013.
|
4.11
|
|
Indenture, dated as of March 9, 2011, among CONSOL Energy Inc., the Subsidiaries named therein and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 6.375% Senior Notes due 2021, incorporated by reference to Exhibit 4.1 to Form 8-K (file no. 001-14901) filed on March 11, 2011.
|
4.12
|
|
Supplemental Indenture No. 1, dated as of August 24, 2011, to Indenture dated as of March 9, 2011 among CONSOL Energy Inc., certain subsidiaries of CONSOL Energy Inc. and The Bank of Nova Scotia Trust Company of New York, as trustee, with respect to the 6.375% Senior Notes due 2021, incorporated by reference to Exhibit 4.3 to Form 8-K (file no. 001-14901) filed on August 29, 2011.
|
4.13
|
|
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, incorporated by reference to Exhibit 4.3 of Form 10-Q (file no. 001-14901) filed on November 1, 2013.
|
4.14
|
|
Rights Agreement, dated as of December 22, 2003, between CONSOL Energy Inc., and Equiserve Trust Company, N.A., as Rights Agent, incorporated by reference to Exhibit 4 to Form 8-K (file no. 001-14901) filed on December 22, 2003.
|
4.15
|
|
Registration Rights Agreement, dated as of April 1, 2010, by and among CONSOL Energy Inc., the Guarantors listed on Schedule I attached thereto and Banc of America Securities LLC, as Representative of the Initial Purchasers, incorporated by reference to Exhibit 4.3 to From 8-K (file no. 001-14901) filed on April 2, 2010.
|
4.16
|
|
Registration Rights Agreement, dated as of March 9, 2011, by and among CONSOL Energy Inc., the Guarantors listed on Schedule I attached thereto and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Representative of the Initial Purchasers, incorporated by reference to Exhibit 4.2 to Form 8-K (file no. 001-14901) filed on March 11, 2011.
|
4.17
|
|
Registration Rights Agreement, dated as of April 16, 2014, by and among CONSOL Energy Inc., the guarantors signatory thereto and J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC, as representatives of the several initial purchasers, incorporated by reference to Exhibit 4.2 to Form 8-K (file no. 001-14901) filed on April 16, 2014.
|
4.18
|
|
Registration Rights Agreement, dated as of August 12, 2014, by and among CONSOL Energy Inc., the guarantors signatory thereto and Goldman, Sachs & Co., as the initial purchasers, incorporated by reference to Exhibit 4.2 to Form 8-K (file no. 001-14901) filed on August 12, 2014.
|
4.19
|
|
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), incorporated by reference to Exhibit 4.4 of Form 10-Q (file no. 001-14901) filed on November 1, 2013.
|
4.20
|
|
Indenture, dated as of April 16, 2014, among CONSOL Energy Inc., the Subsidiary Guarantors named therein and Wells Fargo Bank, National Association, a national banking association, as trustee, with respect to the 5.875% Senior Notes due 2022, incorporated by reference to Exhibit 4.1 to Form 8-K (file no. 001-14901) filed on April 16, 2014.
|
10.1
|
|
Purchase and Sale Agreement, dated as of April 30, 2003, by and among CONSOL Energy Inc., CONSOL Sales Company, CONSOL of Kentucky Inc., CONSOL Pennsylvania Coal Company, Consolidation Coal Company, Island Creek Coal Company, Windsor Coal Company, McElroy Coal Company, Keystone Coal Mining Corporation, Eighty-Four Mining Company, CNX Gas Company LLC, CNX Marine Terminals Inc. and CNX Funding Corporation, incorporated by reference to Exhibit 10.30 to Form 10-Q (file no. 001-14901) for the quarter ended June 30, 2003, filed on August 13, 2003.
|
10.2
|
|
First Amendment to Purchase and Sale Agreement dated as of April 30, 2007, entered into among CONSOL Energy Inc., CONSOL Energy Sales Company, CONSOL of Kentucky Inc., CONSOL Pennsylvania Coal Company, Consolidation Coal Company, Island Creek Coal Company, Windsor Coal Company, McElroy Coal Company, Keystone Coal Mining Corporation, Eighty-Four Mining Company and CNX Marine Terminals Inc., each an “Originator” and CNX Funding Corporation, incorporated by reference to Exhibit 10.31 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.3
|
|
Second Amendment to Purchase and Sale Agreement dated as of November 16, 2007, entered into among CONSOL Energy Inc. (“CONSOL Energy”), CONSOL Energy Sales Company, CONSOL of Kentucky Inc., Consol Pennsylvania Coal Company LLC, Consolidation Coal Company, Island Creek Coal Company, McElroy Coal Company, Keystone Coal Mining Corporation, Eighty-Four Mining Company and CNX Marine Terminals Inc. (each an “Existing Originator”) and collectively the “Existing Originators”), Fola Coal Company, LLC., Little Eagle Coal Company, LLC., Mon River Towing, Inc., Terry Eagle Coal Company, LLC., Tri-River Fleeting Harbor Service, Inc., and Twin Rivers Towing Company (each, a “New Originator” and collectively the “New Originators”; the Existing Originators and the New Originators, each an “Originator” and collectively, the “Originators”), Windsor Coal Company (the “Released Originator”) and CNX Funding Corporation, incorporated by reference to Exhibit 10.32 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.4
|
|
Third Amendment to the Purchase and Sale Agreement, dated as of March 12, 2010, among CNX Marine Terminals Inc., CONSOL Energy Inc., CONSOL Energy Sales Company, CONSOL of Kentucky Inc., CONSOL Pennsylvania Coal Company LLC, Consolidated Coal Company, Eighty-Four Mining Company, Fola Coal Company, L.L.C., Island Creek Coal Company, Keystone Coal Mining Corporation, Little Eagle Coal Company, L.L.C., McElroy Coal Company, Mon River Towing, Inc., Terry Eagle Coal Company, L.L.C., Twin Rivers Towing Company and CNX Funding Corporation, incorporated by reference to Exhibit 10.6 to Form 8-K (file no. 001-14901) filed on March 16, 2010.
|
10.5
|
|
Services Agreement, dated as of April 1, 2010, by and among CONSOL Energy Inc. and its subsidiaries (other than CNX Gas Corporation and its subsidiaries) and (b) CNX Gas Corporation and its subsidiaries, incorporated by reference to Exhibit 99(D)(11) of the Schedule TO filed on April 28, 2010.
|
10.6
|
|
Amended and Restated Receivable Purchase Agreement, dated as of April 30, 2007, by and among CNX Funding Corporation, CONSOL Energy Inc., CONSOL Energy Sales Company, CONSOL of Kentucky Inc., CONSOL Pennsylvania Coal Company, Consolidation Coal Company, Island Creek Coal Company, Windsor Coal Company, McElroy Coal Company, Keystone Coal Mining Corporation, Eighty-Four Mining Company, CNX Marine Terminals Inc., Market Street Funding LLC, Liberty Street Funding LLC, PNC Bank, National Association, and the Bank of Nova Scotia, incorporated by reference to Exhibit 10.33 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.7
|
|
First Amendment to Amended and Restated Receivables Purchase Agreement, dated as of May 9, 2007, entered into among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, 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 and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.34 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.8
|
|
Second Amendment to Amended and Restated Receivables Purchase Agreement, dated as of July 27, 2007, entered into among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer (in such capacity, the “Servicer”), 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 and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.35 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.9
|
|
Third Amendment to Amended and Restated Receivables Purchase Agreement, dated as of November 16, 2007, entered into among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, the various new 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 and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.36 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.10
|
|
Fourth Amendment to Amended and Restated Receivables Purchase Agreement, dated as of April 27, 2009, among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, the various 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, and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.4 to Form 8-K (file no. 001-14901) filed on March 16, 2010.
|
10.11
|
|
Fifth Amendment to Amended and Restated Receivables Purchase Agreement and Waiver, dated as of March 12, 2010, among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, the various 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, and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.5 to Form 8-K (file no. 001-14901) filed on March 16, 2010.
|
10.12
|
|
Sixth Amendment to Amended and Restated Receivables Purchase Agreement, dated as of April 23, 2010, among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, the various Sub-Servicers listed on the signature pages of the Amendment, the Conduit Purchasers listed on the signature pages of the Amendment, the Purchaser Agents listed on the signature pages of the Amendment, the LC Participants listed on the signature pages of the Amendment and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.13 to Form 10-K for the year ended December 31, 2010 (file no. 001-14901), filed on February 10, 2011.
|
10.13
|
|
Seventh Amendment to Amended and Restated Receivables Purchase Agreement, dated as of March 30, 2012, among CNX Funding Corporation, CONSOL Energy Inc., as the initial Servicer, the various Sub-Servicers listed on the signature pages of the Amendment, the Conduit Purchasers listed on the signature pages of the Amendment, the Purchaser Agents listed on the signature pages of the Amendment, the LC Participants listed on the signature pages of the Amendment and PNC Bank, National Association, as Administrator and as LC Bank, incorporated by reference to Exhibit 10.5 to Form 10-Q for the quarter ended March 31, 2012 (file no. 001-14901), filed on April 30, 2012.
|
10.14
|
|
Eighth Amendment to Amended and Restated Receivables Purchase Agreement, dated as of November 8, 2012, 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, and PNC Bank, National Association, as Administrator, and as LC Bank, incorporated by reference to Exhibit 10.1 of Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.15
|
|
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, incorporated by reference to Exhibit 10.1 of Form 10-Q (file no. 001-14901) for the quarter ended September 30, 2013, filed on November 1, 2013.
|
10.16
|
|
Tenth Amendment to Amended and Restated Receivables Purchase Agreement, dated as of March 28, 2014, by and among CNX Funding Corporation, as seller, 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, and PNC Bank, National Association, as Administrator, and as LC Bank, incorporated by reference to Exhibit 10.2 of Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.17
|
|
Letter Agreement re: Receivables Purchase Agreement - Dilution Ratio, dated June 21, 2012, incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarter ended June 30, 2012 (file no. 001-14901), filed on August 1, 2012.
|
10.18
|
|
Commitment Letter, dated March 14, 2010, among Banc of America Bridge LLC, Banc of America Securities LLC, PNC Bank, National Association PNC Capital Markets LLC and CONSOL Energy Inc., incorporated by reference to Exhibit 10.2 to Form 8-K (file no. 001-14901) filed on March 16, 2010.
|
10.19
|
|
Share Tender Agreement, dated as of March 21, 2010, by and between CONSOL Energy Inc., and T. Rowe Price Associates, Inc., incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on March 22, 2010 (Film No. 10695706).
|
10.20
|
|
Amended and Restated Credit Agreement, dated as of April 12, 2011, by and among CONSOL Energy Inc., the Guarantors Party thereto, the Lenders Party thereto, PNC Bank, National Association, as the Administrative Agent, Bank of America, N.A., as the Syndication Agent, The Bank of Nova Scotia, The Royal Bank of Scotland PLC and Sovereign Bank, as the Co-Documentation Agents, and PNC Capital Markets LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Lead Arrangers, incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.21
|
|
Amendment No. 1 to Credit Agreement, dated as of December 5, 2013, to the Amended and Restated Credit Agreement, dated as of April 12, 2011, by and among CONSOL Energy Inc., the lenders and agents party thereto and PNC Bank, National Association, as administrative agent, incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on December 11, 2013.
|
10.22
|
|
Amended and Restated Credit Agreement, dated as of June 18, 2014, by and among CONSOL Energy Inc., the lenders and agents party thereto and PNC Bank, National Association, as administrative agent, incorporated by reference to Exhibit 10.1 to Form 8-K/A (file no. 001-14901) filed on June 25, 2014.
|
10.23
|
|
Amended and Restated Collateral Trust Agreement, dated as of May 7, 2010, by and among CONSOL Energy Inc. and its Designated Subsidiaries, Wilmington Trust Company, as Corporate Trustee and David A. Vanaskey, as Individual Trustee, incorporated by reference to Exhibit 2.2 to Form 8-K (file no. 001-14901) filed on May 13, 2010.
|
10.24
|
|
Amended and Restated Pledge Agreement, dated as of May 7, 2010, made and entered into by each of the pledgors listed on the signature pages thereto and each other persons and entities that become bound thereto from time to time by joinder, assumption, or otherwise and Wilmington Trust Company, as Collateral Trustee, incorporated by reference to Exhibit 2.3 to Form 8-K (file no. 001-14901) filed on May 13, 2010.
|
10.25
|
|
Amended and Restated Security Agreement, dated as of May 7, 2010, by and among CONSOL Energy Inc., each of the parties listed on the signature pages thereto and each other persons and entities that become bound thereto from time to time by joinder, assumption, or otherwise and Wilmington Trust Company, as Collateral Trustee, incorporated by reference to Exhibit 2.4 to Form 8-K (file no. 001-14901) filed on May 13, 2010.
|
10.26
|
|
Patent, Trademark and Copyright Security Agreement, dated as of June 27, 2007, by and among each of the pledgors listed on the signature pages thereto and each of the other persons and entities that become bound thereby from time to time by joinder, assumption, or otherwise and Wilmington Trust Company, as Collateral Trustee, incorporated by reference to Exhibit 10.20 to Form 10-K for the year ended December 31, 2010 (file no. 001-14901), filed on February 10, 2011.
|
10.27
|
|
First Amendment to Amended and Restated Patent, Trademark and Copyright Security Agreement, dated as of May 7, 2010, by and among each of the pledgors listed on the signature pages thereto and each other persons and entities that become bound thereto from time to time by joinder, assumption, or otherwise and Wilmington Trust Company, as Collateral Trustee, incorporated by reference to Exhibit 2.5 to Form 8-K (file no. 001-14901) filed on May 13, 2010.
|
10.28
|
|
Patent, Trademark and Copyright Assignment and Assumption, dated as of April 12, 2011, between Wilmington Trust Company as assignor and PNC Bank, National Association as assignee, incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.29
|
|
Guaranty and Suretyship Agreement, dated as of April 30, 2003, by CONSOL Energy Inc., as guarantor in favor of CNX Funding Corporation, incorporated by reference to Exhibit 10.6 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2011, filed on May 3, 2011.
|
10.30
|
|
Amended and Restated Continuing Agreement of Guaranty and Suretyship, dated as of May 7, 2010, jointly and severally given by each of the undersigned thereto and each of the other persons which become Guarantors thereunder from time to time in favor of PNC Bank, National Association, in its capacity as the administrative agent for the Lenders, in connection with that certain Amended and Restated Credit Agreement, as defined therein, incorporated by reference to Exhibit 10.22 to Form 10-K for the year ended December 31, 2010 (file no. 001-14901), filed on February 10, 2011.
|
10.31
|
|
CNX Gas Continuing Agreement of Guaranty and Suretyship, dated as of April 12, 2011, by CNX Gas Corporation and certain of its subsidiaries, incorporated by reference to Exhibit 10.2 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.32
|
|
Successor Agent Agreement, dated as of April 12, 2011, by and among among Wilmington Trust Company and David A. Varansky as existing agents, PNC Bank, National Association as Collateral Trustee and CONSOL Energy Inc. and certain of its subsidiaries, incorporated by reference to Exhibit 2.2 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.33
|
|
Amended and Restated Credit Agreement, dated as of April 12, 2011, by and among CNX Gas Corporation, the Guarantors Party thereto, the Lenders Party thereto, PNC Bank, National Association, as the Administrative Agent, Bank of America, N.A., as the Syndication Agent, The Bank of Nova Scotia, The Royal Bank of Scotland PLC and Wells Fargo Bank, N.A., as the Co-Documentation Agents, and PNC Capital Markets LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Bookrunners and Joint Lead Arrangers, incorporated by reference to Exhibit 10.3 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.34
|
|
Amendment No. 1 to Credit Agreement, dated as of December 14, 2011, by and among CNX Gas Corporation, the lenders and agents party thereto and PNC Bank, National Association, as Administrative Agent, incorporated by reference to Exhibit 10.29 to Form 10-K for the year ended December 31, 2012 (file no. 01-14901), filed on February 7, 2013.
|
10.35
|
|
Amendment No. 2 to Credit Agreement, dated as of March 12, 2013, to the Amended and Restated Credit Agreement, dated as of April 12, 2011, as amended by Amendment No. 1, dated December 14, 2011, by and among CNX Gas Corporation, the lenders and agents party thereto and PNC Bank, National Association, as administrative agent, incorporated by reference to Exhibit 10.1 of Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2013, filed on May 7, 2013.
|
10.36
|
|
Collateral Trust Agreement, dated as of May 7, 2010, by and among CNX Gas Corporation, its Designated Subsidiaries, Wilmington Trust Company, as Corporate Trustee and David A. Vanaskey, as Individual Trustee, incorporated by reference to Exhibit 2.1 to the CNX Gas Corporation Form 8-K (file no. 001-32723) filed on May 13, 2010.
|
10.37
|
|
Pledge Agreement, dated as of May 7, 2010, by each of the pledgors listed on the signature pages thereto and each of the other persons and entities that become bound thereby from time to time by joinder, assumption or otherwise and Wilmington Trust Company, as Collateral Trustee, incorporated by reference to Exhibit 2.2 to the CNX Gas Corporation Form 8-K (file no. 001-32723) filed on May 13, 2010.
|
10.38
|
|
Security Agreement, dated as of May 7, 2010, by and among CNX Gas Corporation and each of the undersigned parties thereto and each of the other persons and entities that become bound thereby from time to time by joinder, assumption or otherwise and Wilmington Trust Company, as Collateral Trustee, incorporated by reference to Exhibit 2.3 to the CNX Gas Corporation Form 8-K (file no. 001-32723) filed on May 13, 2010.
|
10.39
|
|
CONSOL Amended and Restated Continuing Agreement of Guaranty and Suretyship, dated as of April 12, 2011, by CONSOL Energy and certain of its subsidiaries, incorporated by reference to Exhibit 10.4 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.40
|
|
Amended and Restated Continuing Agreement of Guaranty and Suretyship, dated as of April 12, 2011, among CNX Gas Company LLC and certain of its subsidiaries, incorporated by reference to Exhibit 10.5 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.41
|
|
Successor Agent Agreement, dated as of April 12, 2011, by and among Wilmington Trust Company and David A. Vanaskey as existing agents, PNC Bank, National Association as Collateral Trustee and CNX Gas Corporation and certain of its subsidiaries, incorporated by reference to Exhibit 2.3 to Form 8-K (file no. 001-14901) filed on April 18, 2011.
|
10.42
|
|
Closing Agreement by and between CNX Gas Company LLC and Noble Energy, Inc. dated as of September 30, 2011, incorporated by reference to Exhibit 10.2 to Form 10-Q (file no. 001-14901) for the quarter ended September 30, 2011, filed on October 31, 2011.
|
10.43
|
|
Stipulation and Agreement of Compromise and Settlement, dated May 8, 2013, between and among (i) plaintiffs Harold L. Hurwitz and James R. Gummel, on their own behalf and on behalf of the Class (as defined therein) and (ii) defendants CNX Gas Corporation, CONSOL Energy Inc. and certain individual defendants, incorporated by reference to Exhibit 10.1 of Form 10-Q (file no. 001-14901) for the quarter ended June 30, 2013, filed on August 5, 2013.
|
10.44
|
|
Amendment No. 1, dated April 19, 2013, to the Asset Acquisition Agreement, dated August 17, 2011, between CNX Gas Company LLC and Noble Energy, Inc, incorporated by reference to Exhibit 10.2 of Form 10-Q (file no. 001-14901) for the quarter ended June 30, 2013, filed on August 5, 2013.
|
10.45
|
|
Purchase Agreement, dated as of April 10, 2014, among CONSOL Energy Inc., the subsidiary guarantors party thereto and J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC, as representatives of the several initial purchasers named therein, incorporated by reference to Exhibit 1.1 to Form 8-K (file no. 001-14901) filed on April 16, 2014.
|
10.46
|
|
Time Sharing Agreement, dated as of May 1, 2007, by and between CONSOL Energy Inc. and J. Brett Harvey, incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on May 7, 2007.
|
10.47
|
|
Amended and Restated Employment Agreement, dated March 21, 2014, between CONSOL Energy Inc. and J. Brett Harvey incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on March 26, 2014.
|
10.48
|
|
Letter Agreement, dated August 24, 2007, by and between CONSOL Energy Inc. and Nicholas J. DeIuliis, incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on August 24, 2007.
|
10.49
|
|
Change in Control Agreement by and between CONSOL Energy Inc. and J. Brett Harvey, incorporated by reference to Exhibit 10.3 to Form 10-K for the year ended December 31, 2008 (file no. 001-14901), filed on February 17, 2009.
|
10.50
|
|
Change in Control Agreement by and between CONSOL Energy Inc. and Nicholas J. DeIuliis, incorporated by reference to Exhibit 10.7 to Form 10-K for the year ended December 31, 2008 (file no. 001-14901), filed on February 17, 2009.
|
10.51
|
|
Amended and Restated Change in Control Severance Agreement, dated as of April 10, 2014, between CONSOL Energy Inc. and David M. Khani, incorporated by reference to Exhibit 10.8 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.52
|
|
Amended and Restated Change in Control Severance Agreement, dated as of April 10, 2014, between CONSOL Energy Inc. and James Grech, incorporated by reference to Exhibit 10.9 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.53
|
|
Change in Control Agreement by and among CNX Gas Corporation, CONSOL Energy Inc. and Stephen W. Johnson, incorporated by reference to Exhibit 10.4 to Form 10-K for the year ended December 31, 2008 of CNX Gas Corporation (file no. 001-32723) filed on February 17, 2009.
|
10.54
|
|
Amended and Restated Change in Control Severance Agreement, dated as of April 10, 2014, between CONSOL Energy Inc. and James A. Brock.
|
10.55
|
|
Change in Control Severance Agreement, dated as of February 28, 2014, between CONSOL Energy Inc. and Timothy Dugan.
|
10.56
|
|
Form of Indemnification Agreement for Directors and Executive Officers of CONSOL Energy Inc., incorporated by reference to Exhibit 10.6 to Form 10-Q (file no. 001-14901) for the quarter ended June 30, 2009, filed on August 3, 2009.
|
10.57
|
|
Form of Indemnification Agreement for Directors and Executive Officers of CNX Gas Corporation, incorporated by reference to Exhibit 10.7 to Form 10-Q (file no. 001-14901) for the quarter ended June 30, 2009, filed on August 3, 2009.
|
10.58
|
|
Equity Incentive Plan, As Amended and Restated, effective May 1, 2012 incorporated by reference to Exhibit 10.1 to the Form 8-K (file no. 001-14901) filed on March 21, 2012.
|
10.59
|
|
Amended and Restated CONSOL Energy Inc. Executive Annual Incentive Plan, incorporated by reference to Appendix A to the Form DEF 14A (file no. 001-14901) filed on March 29, 2013.
|
10.60
|
|
Non-Employee Director Option Grant Notice, as amended, incorporated by reference to Exhibit 10.84 to the Form 8-K (file no. 001-14901) filed on October 24, 2005.
|
10.61
|
|
Form of Non-Qualified Stock Option Award Agreement For Employees, incorporated by reference to Exhibit 10.26 to the Registration Statement on Form S-4 (file no. 333-149442) filed on February 28, 2008.
|
10.62
|
|
Form of Non-Qualified Stock Option Award Agreement for Employees (February 17, 2009 and after), incorporated by reference to Exhibit 10.28 to Form S-4 (file no. 333-157894) filed on June 26, 2009.
|
10.63
|
|
Form of Employee Non-Qualified Performance Stock Option Agreement, incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on June 21, 2010.
|
10.64
|
|
Form of Restricted Stock Unit Award for Employees (February 17, 2009 through 2014), incorporated by reference to Exhibit 10.31 to Amendment No. 1 to Form S-4 (file no. 333-157894) filed on June 26, 2009.
|
10.65
|
|
Form of 5-Year Restricted Stock Unit Award Agreement for Employees, incorporated by reference to Exhibit 10.4 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.66
|
|
Form of Restricted Stock Unit Award Agreement for Directors, incorporated by reference to Exhibit 10.30 to the Registration Statement on Form S-4 (file no. 333-149442) filed on February 28, 2008.
|
10.67
|
|
Form of Restricted Stock Unit Award Agreement for Employees (for 2015 awards and after).
|
10.68
|
|
Form of Performance Share Unit Award Agreement (for 2014 awards), incorporated by reference to Exhibit 10.3 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.69
|
|
Form of Performance Share Unit Award Agreement (for 2015 awards and after).
|
10.70
|
|
Form of CONSOL Stock Unit Acknowledgment Letter, incorporated by reference to Exhibit 10.5 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.71
|
|
Form of CONSOL Stock Unit Acknowledgment Letter (Alternate), incorporated by reference to Exhibit 10.6 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.72
|
|
Form of CONSOL Stock Unit Award Agreement under the Equity Incentive Plan, incorporated by reference to Exhibit 10.2 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2013, filed on May 7, 2013.
|
10.73
|
|
Summary of Non-Employee Director Compensation, incorporated by reference to Exhibit 10.69 to Form 10-K (file no. 001-14901) for the year ended December 31, 2013, filed on February 7, 2014.
|
10.74
|
|
Directors Deferred Compensation Plan (1999 Plan), incorporated by reference to Exhibit 10.1 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2008, filed on April 30, 2008.
|
10.75
|
|
Hypothetical Investment Election Form Relating to Directors' Deferred Compensation Plan (1999 Plan), incorporated by reference to Exhibit 10.53 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.76
|
|
Directors' Deferred Fee Plan (2004 Plan) (Amended and Restated on December 4, 2007), incorporated by reference to Exhibit 10.3 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2008, filed on April 30, 2008.
|
10.77
|
|
Hypothetical Investment Election Form Relating to Directors' Deferred Fee Plan (2004 Plan), incorporated by reference to Exhibit 10.50 to Form 10-K for the year ended December 31, 2007 (file no. 001-14901), filed on February 19, 2008.
|
10.78
|
|
Form of Director Deferred Stock Unit Grant Agreement, incorporated by reference to Exhibit 10.95 to the Form 8-K (file no. 001-14901) filed on May 8, 2006.
|
10.79
|
|
Trust Agreement (Amended and Restated on March 20, 2008) (1999 Directors Deferred Compensation Plan), incorporated by reference to Exhibit 10.2 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2008, filed on April 30, 2008.
|
10.80
|
|
Trust Agreement (Amended and Restated on March 20, 2008) (Directors' Deferred Fee Plan (2004 Plan)), incorporated by reference to Exhibit 10.4 to Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2008, filed on April 30, 2008.
|
10.81
|
|
Amended and Restated Retirement Restoration Plan of CONSOL Energy Inc., incorporated reference to Exhibit 10.30 to Form 10-K for the year ended December 31, 2008 (file no. 001-14901), filed on February 17, 2009.
|
10.82
|
|
Amended and Restated Supplemental Retirement Plan of CONSOL Energy Inc. effective January 1, 2007, as amended and restated on September 8, 2009, incorporated by reference to Exhibit 10.1 to Form 8-K (file no. 001-14901) filed on September 11, 2009.
|
10.83
|
|
Amendment to CONSOL Energy Inc. Supplemental Retirement Plan, dated as of October 17, 2011, incorporated by reference to Exhibit 10.3 to Form 10-Q (file no. 001-14901), for the quarter ended September 30, 2011, filed on October 31, 2011.
|
10.84
|
|
CONSOL Energy Inc. Defined Contribution Restoration Plan, effective January 1, 2012, incorporated by reference to Exhibit 10.12 of Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
10.85
|
|
Executive Compensation Clawback Policy of CONSOL Energy Inc., dated as of January 28, 2014, incorporated by reference to Exhibit 10.11 of Form 10-Q (file no. 001-14901) for the quarter ended March 31, 2014, filed on May 6, 2014.
|
12
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
14.1
|
|
Code of Employee Business Conduct and Ethics
|
21
|
|
Subsidiaries of CONSOL Energy Inc.
|
23.1
|
|
Consent of Ernst & Young LLP
|
23.2
|
|
Consent of Netherland Sewell & Associates, Inc.
|
23.3
|
|
Consent of Golder Associates, Inc.
|
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 Disclosure Exhibit
|
99.1
|
|
Engineers' Audit Letter
|
99.2
|
|
Mining Engineers' and Geologists' Audit Letter
|
101
|
|
Interactive Data File (Form 10-K for the year ended December 31, 2014 furnished in XBRL).
|
|
CONSOL ENERGY INC.
|
||
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By:
|
|
/s/ N
ICHOLAS
J. D
E
I
ULIIS
|
|
|
|
Nicholas J. DeIuliis
|
|
|
|
Director, Chief Executive Officer and President
|
|
|
|
(Duly Authorized Officer and Principal Executive Officer)
|
Signature
|
|
Title
|
|
|
|
/s/ N
ICHOLAS
J. D
E
I
ULIIS
|
|
Director, Chief Executive Officer and President
|
Nicholas J. DeIuliis
|
|
(Duly Authorized Officer and Principal Executive Officer)
|
|
|
|
/s/ D
AVID
M. K
HANI
|
|
Chief Financial Officer and Executive Vice President
|
David M. Khani
|
|
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
/s/ L
ORRAINE
L. R
ITTER
|
|
Controller and Vice President
|
Lorraine L. Ritter
|
|
(Duly Authorized Officer and Principal Accounting Officer)
|
|
|
|
/S/ J. B
RETT
H
ARVEY
|
|
Director and Chairman of the Board
|
J. Brett Harvey
|
|
|
|
|
|
/S/ P
HILIP
W. B
AXTER
|
|
Lead Independent Director
|
Philip W. Baxter
|
|
|
|
|
|
/S/ J
AMES
E. A
LTMEYER
, S
R
.
|
|
Director
|
James E. Altmeyer, Sr.
|
|
|
|
|
|
/s/ A
LVIN
R. C
ARPENTER
|
|
Director
|
Alvin R. Carpenter
|
|
|
|
|
|
/S/ W
ILLIAM
E. D
AVIS
|
|
Director
|
William E. Davis
|
|
|
|
|
|
/S/ R
AJ
K. G
UPTA
|
|
Director
|
Raj K. Gupta
|
|
|
|
|
|
/S/ D
AVID
C. H
ARDESTY
, J
R
.
|
|
Director
|
David C. Hardesty, Jr.
|
|
|
|
|
|
/s/ M
AUREEN
E. L
ALLY
-G
REEN
|
|
Director
|
Maureen E. Lally-Green
|
|
|
|
|
|
/S/ G
REGORY
A. L
ANHAM
|
|
Director
|
Gregory A. Lanham
|
|
|
|
|
|
/S/ J
OHN
T. M
ILLS
|
|
Director
|
John T. Mills
|
|
|
|
|
|
/s/ W
ILLIAM
P. P
OWELL
|
|
Director
|
William P. Powell
|
|
|
|
|
|
/S/ W
ILLIAM
N. T
HORNDIKE
|
|
Director
|
William N. Thorndike
|
|
|
|
|
|
/S/ J
OSEPH
T. W
ILLIAMS
|
|
Director
|
Joseph T. Williams
|
|
|
|
|
|
|
Additions
|
|
Deductions
|
|
|
||||||||||||
|
|
Balance at
|
|
|
|
Release of
|
|
|
|
Balance at
|
||||||||||
|
|
Beginning
|
|
Charged to
|
|
Valuation
|
|
Charged to
|
|
End
|
||||||||||
|
|
of Period
|
|
Expense
|
|
Allowance
|
|
Expense
|
|
of Period
|
||||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
State operating loss carry-forwards
|
|
$
|
7,527
|
|
|
$
|
157
|
|
|
$
|
(1,323
|
)
|
|
$
|
(281
|
)
|
|
$
|
6,080
|
|
Deferred deductible temporary differences
|
|
5
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Total
|
|
$
|
7,532
|
|
|
$
|
168
|
|
|
$
|
(1,323
|
)
|
|
$
|
(281
|
)
|
|
$
|
6,096
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
State operating loss carry-forwards
|
|
$
|
7,793
|
|
|
$
|
1,987
|
|
|
$
|
(1,410
|
)
|
|
$
|
(843
|
)
|
|
$
|
7,527
|
|
Deferred deductible temporary differences
|
|
170
|
|
|
—
|
|
|
—
|
|
|
(165
|
)
|
|
5
|
|
|||||
Total
|
|
$
|
7,963
|
|
|
$
|
1,987
|
|
|
$
|
(1,410
|
)
|
|
$
|
(1,008
|
)
|
|
$
|
7,532
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
State operating loss carry-forwards
|
|
$
|
7,801
|
|
|
$
|
224
|
|
|
$
|
(232
|
)
|
|
$
|
—
|
|
|
$
|
7,793
|
|
Deferred deductible temporary differences
|
|
72
|
|
|
153
|
|
|
(55
|
)
|
|
—
|
|
|
170
|
|
|||||
Total
|
|
$
|
7,873
|
|
|
$
|
377
|
|
|
$
|
(287
|
)
|
|
$
|
—
|
|
|
$
|
7,963
|
|
Name of Recipient:
|
______________________________________________________
|
|
Award Date:
|
__________________ ____, 20____
|
|
Number of Shares Subject to Award
:
|
_________ shares of the Company’s common stock
|
|
Vesting Schedule
:
|
Except as otherwise provided in the Terms and Conditions attached to this Letter, three (3) successive equal annual installments upon your completion of each year of continuous employment with the Company over the three (3)-year period measured from the Award Date.
|
|
Issuance Schedule
:
|
The shares which vest each year under your restricted stock units will be issued to you on the vesting date or if the vesting date is not a business day, on the immediately following business day (or as soon as reasonably practicable but in no event later than the 15th day of the third month following such date), subject to (i) your satisfaction of all applicable income and employment withholding taxes, and (ii) any deferral election you may have made with respect to the payment of such shares.
|
|
Deferral Election
|
To the extent you have elected to defer the issuance and receipt of shares (in accordance with the procedures established by the Company), such shares shall be issued to you in accordance with the terms of the election form executed by you. Further information concerning such deferral may be found by referring to a copy of your election form and/or the Summary Plan Description for the Equity Incentive Plan attached as Exhibit I.
|
|
||||||||||||||||||||
|
|
Twelve Months Ended December 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes
|
|
$
|
183,124
|
|
|
$
|
46,075
|
|
|
$
|
406,687
|
|
|
$
|
872,925
|
|
|
$
|
430,958
|
|
Fixed charges, as shown below
|
|
279,163
|
|
|
292,958
|
|
|
285,784
|
|
|
289,123
|
|
|
240,177
|
|
|||||
Equity in income of investees
|
|
(49,791
|
)
|
|
(33,133
|
)
|
|
(27,048
|
)
|
|
(24,663
|
)
|
|
(21,428
|
)
|
|||||
Noncontrolling Interest
|
|
—
|
|
|
1,386
|
|
|
397
|
|
|
—
|
|
|
(11,845
|
)
|
|||||
Adjusted Earnings
|
|
$
|
412,496
|
|
|
$
|
307,286
|
|
|
$
|
665,820
|
|
|
$
|
1,137,385
|
|
|
$
|
637,862
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on indebtedness, expensed or capitalized
|
|
$
|
237,137
|
|
|
$
|
262,915
|
|
|
$
|
258,096
|
|
|
$
|
263,891
|
|
|
$
|
218,425
|
|
Interest within rent expense
|
|
42,026
|
|
|
30,043
|
|
|
27,688
|
|
|
25,232
|
|
|
21,752
|
|
|||||
Total Fixed Charges
|
|
$
|
279,163
|
|
|
$
|
292,958
|
|
|
$
|
285,784
|
|
|
$
|
289,123
|
|
|
$
|
240,177
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of Earnings to Fixed Charges
|
|
1.48
|
|
|
1.05
|
|
|
2.33
|
|
|
3.93
|
|
|
2.66
|
|
1.
|
PAYMENTS BY AND TO THE COMPANY AND ITS EMPLOYEES 2
|
A.
|
NO IMPROPER PAYMENTS TO U.S. OR NON-U.S. GOVERNMENT OFFICIALS 2
|
B.
|
GIFTS, FAVORS, AND ENTERTAINMENT 2
|
C.
|
PAYMENTS RELATED TO SALES 3
|
D.
|
PAYMENTS RELATED TO PURCHASES 3
|
E.
|
GIFTS AND PAYMENTS TO EMPLOYEES 4
|
2.
|
CONFLICTS OF INTEREST 4
|
3.
|
SERVICE IN OUTSIDE ORGANIZATIONS 5
|
4.
|
BUSINESS INFORMATION PROTECTION 5
|
5.
|
FAIR DEALING 6
|
6.
|
INSIDER TRADING 6
|
7.
|
ELECTRONIC INFORMATION 6
|
8.
|
COMPLIANCE WITH THE LAW 6
|
A.
|
ANTITRUST LAWS 6
|
B.
|
ANTIBOYCOTT LAWS 7
|
C.
|
ENVIRONMENTAL AND SAFETY AND HEALTH LAWS 7
|
D.
|
EQUAL EMPLOYMENT OPPORTUNITY AND HARASSMENT 7
|
9.
|
POLITICAL CONTRIBUTIONS 7
|
10.
|
TRAVEL AND ENTERTAINMENT 8
|
11.
|
ACCOUNTING STANDARDS AND DOCUMENTATION 8
|
12.
|
PREVENTION OF FRAUD 8
|
13.
|
PROTECTION AND PROPER USE OF COMPANY ASSETS 9
|
14.
|
CORPORATE OPPORTUNITIES 9
|
15.
|
ANNUAL REPORTING 9
|
16.
|
COMPLIANCE 9
|
17.
|
WAIVERS AND EXCEPTIONS 9
|
18.
|
OTHER POLICIES 10
|
1.
|
PAYMENTS BY AND TO THE COMPANY AND ITS EMPLOYEES
|
•
|
Any officers, employees, or other persons acting on behalf of
|
◦
|
A government or government entity;
|
◦
|
An international organization (such as the Red Cross or World Bank);
|
◦
|
A political party; or
|
◦
|
A government-owned or -controlled company, such as a state-owned energy company or public utility; and
|
•
|
Candidates for political office.
|
•
|
They are consistent with customary business practices,
|
•
|
They are not excessive in value and cannot be construed as a bribe, pay-off or kickback,
|
•
|
They are not in contravention of applicable law or ethical standards, and
|
•
|
Public disclosure of the facts will embarrass neither the Company nor the employee.
|
(ii)
|
U.S. FOREIGN CORRUPT PRACTICES ACT OF 1977 ("FCPA")
|
(iii)
|
HONEST LEADERSHIP AND OPEN GOVERNMENT ACT OF 2007 ("HLOGA")
|
•
|
Bear a reasonable relationship to the value of goods delivered or services rendered,
|
•
|
Be by check or bank transfer to the specific business entity with whom the agreement is made or to whom the original related sales invoice was issued-not to individual officers, employees or agents of such entity, or to a related business entity,
|
•
|
Be made only in the country of the entity's place of business, and
|
•
|
Be supported by documentation that is complete and that clearly defines the nature and purpose of the transaction.
|
•
|
Bear a reasonable relationship to the value of goods received or services rendered,
|
•
|
Be by check or bank transfer to the specific business entity that provided the goods or services – not to individual officers, employees or agents of such entity, or to a related business entity,
|
•
|
Be made only in the country of the entity's place of business, and
|
•
|
Be supported by documentation that is complete and that clearly defines the nature and purpose of the transaction.
|
•
|
Employees may accept for themselves and members of their families common courtesies usually associated with customary business practices.
|
•
|
A strict standard is expected with respect to gifts, services, discounts, entertainment, or considerations of any kind from suppliers.
|
•
|
It is never permissible to accept a gift in cash or cash equivalents (e.g., stocks or other forms of marketable securities) of any amount.
|
•
|
Ownership by an employee or, to the employee's knowledge, by a member of the employee's family of a significant financial interest
*
in any outside enterprise which does or seeks to do business with or is a competitor of the Company.
|
•
|
Serving as a director, officer, partner, consultant, or in a managerial position with, or employment in a technical capacity by, any outside enterprise which does or is seeking to do business with or is a competitor of the Company.
|
•
|
Acting as broker, finder, go-between, or otherwise for the benefit of a third party in transactions involving or potentially involving the Company or its interests.
|
•
|
Any other arrangement or circumstances, including family or other personal relationships which might dissuade the employee from acting in the best interest of the Company.
|
•
|
The outside interest does business or competes with the employee's department, division, or site.
|
•
|
The employee has an active, managerial, or decision-making role in the outside interest.
|
•
|
The employee has access to Company information potentially useful to the outside interest.
|
•
|
Public disclosure of the facts will or are likely to embarrass the Company.
|
•
|
Give or release, without proper authority, to anyone not employed by the Company, or to another employee who has no need for information, data or information of a confidential nature obtained while in the Company's employment. This information includes but is not limited to materials relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, manufacturing processes, financing methods, plans or the business and affairs of the Company.
|
•
|
Use nonpublic information obtained while in the Company's employment (including information about customers, suppliers, or competitors) for the profit of the employee or other person or company. This includes, but is not limited to, taking advantage of such information by (1) trading or providing information for others to trade in securities, (2) acquiring a real estate interest of any kind, including but not limited to plant or office sites or adjacent properties, (3) acquiring (or acquiring options to obtain) interests in coal, oil and gas leases, royalties, minerals, or real property for the purpose of obtaining mineral or royalty interests, or any interest in coal, oil or gas production or profits from the same, or (4) retaining Company documents or using for any purpose or revealing to anyone else Company business practices, confidential information or trade secrets after leaving the Company's employment.
|
A.
|
ANTITRUST LAWS
|
B.
|
ANTIBOYCOTT LAWS
|
C.
|
ENVIRONMENTAL AND SAFETY AND HEALTH LAWS
|
D.
|
EQUAL EMPLOYMENT OPPORTUNITY AND HARASSMENT
|
•
|
Clearly describes and identifies the true nature of business transactions, assets, liabilities, or equity, and
|
•
|
Properly and timely classifies and records entries on the books of account in conformity with generally accepted accounting principles.
|
•
|
CONSOL shall maintain the right “tone at the top” with a view that improper or fraudulent activity will not be tolerated. The Company shall take the appropriate actions against any individual that commits or is in any way involved in an improper activity.
|
•
|
CONSOL shall maintain competent professionals in accounting, operational, internal auditing and any other positions that are critical to the deterrence of fraud.
|
•
|
CONSOL shall maintain the proper segregation of duties pertaining to its internal control environment.
|
•
|
CONSOL risk assessment procedures shall include discussions surrounding opportunities for fraud.
|
•
|
Internal reviews may be performed on various areas that have a greater propensity for fraud.
|
13.
|
PROTECTION AND PROPER USE OF COMPANY ASSETS
|
AMVEST Coal & Rail, LLC (a Virginia limited liability company)
|
|
CONSOL of Canada Inc. (a Delaware corporation)
|
AMVEST Coal Sales, Inc. (a Virginia corporation)
|
|
CONSOL of Central Pennsylvania LLC (a Pennsylvania limited
|
AMVEST Corporation (a Virginia corporation)
|
|
liability company)
|
AMVEST Gas Resources, Inc. (a Virginia corporation)
|
|
CONSOL of Kentucky Inc. (a Delaware corporation)
|
AMVEST Mineral Services, Inc. (a Virginia corporation)
|
|
CONSOL of Ohio LLC (an Ohio limited liability company)
|
AMVEST Minerals Company, LLC (a Virginia limited liability
|
|
Consol Pennsylvania Coal Company LLC (formerly Consol
|
company)
|
|
Pennsylvania Coal Company) (a Delaware limited liability
|
AMVEST Oil & Gas, Inc. (a Virginia corporation)
|
|
company)
|
AMVEST West Virginia Coal, LLC (a West Virginia limited
|
|
Fola Coal Company, LLC d/b/a Powellton Coal Company (a West
|
liability company)
|
|
Virginia limited liability company)
|
Braxton-Clay Land & Mineral, Inc. (a West Virginia corporation)
|
|
Glamorgan Coal Company, LLC (a Virginia limited liability
|
Cardinal States Gathering Company (a Virginia general partnership)
|
|
company)
|
CNX Funding Corporation (a Delaware corporation)
|
|
Helvetia Coal Company (a Pennsylvania corporation)
|
CNX Gas Company LLC (a Virginia limited liability company)
|
|
Island Creek Coal Company (a Delaware corporation)
|
CNX Gas Corporation (a Delaware corporation)
|
|
Knox Energy, LLC (a Tennessee limited liability company)
|
CNX Land LLC (a Delaware limited liability company)
|
|
Laurel Run Mining Company (a Virginia corporation)
|
CNX Marine Terminals Inc. (formerly Consolidation
|
|
Leatherwood, Inc. (a Pennsylvania corporation)
|
Coal Sales Company) (a Delaware corporation)
|
|
Little Eagle Coal Company, L.L.C. (a West Virginia limited liability
|
CNX RCPC LLC (a Delaware limited liability company)
|
|
company)
|
CNX Water Assets LLC (formerly CONSOL of WV LLC) (a West
|
|
MOB Corporation (a Pennsylvania corporation)
|
Virginia limited liability company)
|
|
Mon-View, LLC (a West Virginia limited liability company)
|
Coalfield Pipeline Company (a Tennessee corporation)
|
|
MTB, Inc. (a Delaware corporation)
|
Conrhein Coal Company (a Pennsylvania general partnership)
|
|
Nicholas-Clay Land & Mineral, Inc. (a Virginia corporation)
|
CONSOL Amonate Facility LLC (a Delaware limited liability
|
|
Panda Bamboo Holdings, Inc. (a Delaware corporation)
|
company)
|
|
Paros Corp. (a Delaware corporation)
|
CONSOL Amonate Mining Company LLC (a Delaware limited
|
|
Peters Creek Mineral Services, Inc. (a Virginia corporation)
|
liability company)
|
|
R&PCC LLC (a Pennsylvania limited liability company)
|
CONSOL Buchanan Mining Company LLC (a Delaware limited
|
|
TEAGLE Company, LLC (a Virginia limited liability company)
|
liability company)
|
|
TECPART Corporation (a Delaware corporation)
|
CONSOL Energy Canada Ltd. (a Canadian corporation)
|
|
Terra Firma Company (a West Virginia corporation)
|
CONSOL Energy Holdings LLC VI (a Delaware limited liability
|
|
Terry Eagle Coal Company, L.L.C. (a West Virginia limited liability
|
company)
|
|
company)
|
CONSOL Energy Sales Company (formerly CONSOL Sales
|
|
Terry Eagle Limited Partnership (a West Virginia limited
|
Company) (a Delaware corporation)
|
|
partnership)
|
CONSOL Financial Inc. (a Delaware corporation)
|
|
Vaughan Railroad Company (a West Virginia corporation)
|
CONSOL Mining Company LLC (a Delaware limited liability
|
|
Windsor Coal Company (a West Virginia corporation)
|
company)
|
|
Wolfpen Knob Development Company (a Virginia corporation)
|
CONSOL Mining Holding Company LLC (a Delaware limited
|
|
|
liability company)
|
|
|
NETHERLAND, SEWELL & ASSOCIATES, INC.
|
|
|
|
By:
|
/s/ DANNY D. SIMMONS, P.E.
|
|
Danny D. Simmons, P.E.
|
|
President and Chief Operating Officer
|
1.
|
I have reviewed this annual report on Form 10-K 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:
|
February 6, 2015
|
|
|
|
|
/s/ Nicholas J. DeIuliis
|
|
|
Nicholas J. DeIuliis
|
|
|
Director, Chief Executive Officer and President
|
|
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this annual report on Form 10-K 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:
|
February 6, 2015
|
|
|
|
|
/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:
|
February 6, 2015
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/s/ Nicholas J. DeIuliis
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Nicholas J. DeIuliis
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Director, Chief Executive Officer and President
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(Principal Executive Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
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Date:
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February 6, 2015
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/s/ David M. Khani
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David M. Khani
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Chief Financial Officer and Executive Vice President
(Principal Financial Officer)
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Received
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||||||||||||
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Notice
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||||||||||||
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Received
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of
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Legal
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||||||||||||
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Total Dollar
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Total
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Notice of
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Potential
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Actions
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||||||||||||
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Section
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Value of
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Number
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Pattern of
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to have
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Pending
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Legal
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Legal
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||||||||||||
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Section
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104(d)
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MSHA
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of
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Violations
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Pattern
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as of
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Actions
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Actions
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||||||||||||
Mine or Operating
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104
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Section
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Citations
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Section
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Section
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Assessments
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Mining
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Under
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Under
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Last
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Initiated
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Resolved
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||||||||||||||
Name/MSHA
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S&S
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104(b)
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and
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110(b)(2)
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107(a)
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Proposed (in
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Related
|
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Section
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Section
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Day of
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During
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During
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||||||||||||||
Identification Number
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Citations
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Orders
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Orders
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Violations
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Orders
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dollars)
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Fatalities
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104(e)
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104(e)
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Period (1)
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Period
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Period
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||||||||||||||
Active Operations
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||||||||||||
Bailey
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36-07230
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66
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—
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—
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—
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—
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$
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77,802
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—
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No
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No
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13
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12
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13
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Buchanan
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44-04856
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51
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—
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—
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—
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—
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$
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64,760
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1
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No
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No
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20
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17
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30
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Enlow Fork
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36-07416
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107
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—
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5
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—
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—
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$
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167,648
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—
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No
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No
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14
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12
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9
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Harvey
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36-10045
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36
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—
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3
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|
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—
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—
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$
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22,509
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—
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No
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No
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3
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3
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—
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Miller Creek PP #1
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46-05890
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8
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—
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—
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—
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—
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$
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3,142
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—
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No
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No
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1
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1
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—
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Twin Branch Surface
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46-09075
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5
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—
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—
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—
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—
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$
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3,709
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—
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No
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No
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—
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—
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—
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Water Assets - Contractor
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A9295
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—
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—
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—
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—
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—
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—
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$
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200
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—
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No
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No
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—
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1
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1
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||||||||||||
Inactive Operations
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||||||||||||
Alma No. 1 Mine
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46-09277
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—
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—
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—
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—
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|
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—
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|
|
$
|
3,904
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|
—
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No
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No
|
|
1
|
|
|
1
|
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|
1
|
|
|
Amonate
|
|
46-05449
|
|
—
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|
|
—
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|
|
—
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|
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—
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|
|
—
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|
|
$
|
100
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|
—
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No
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No
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|
—
|
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|
—
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|
|
—
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|
|
Emery
|
|
42-00079
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—
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|
—
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—
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|
—
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|
—
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|
|
$
|
100
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|
|
—
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|
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No
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No
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—
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|
|
—
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|
—
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|
|
Ike Fork (5 Block Mine)
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|
46-09420
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|
—
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|
—
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—
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|
|
—
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|
|
—
|
|
|
$
|
—
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|
|
—
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|
|
No
|
|
No
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Laurel Fork
|
|
46-09084
|
|
—
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|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
100
|
|
|
—
|
|
|
No
|
|
No
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
273
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
$
|
343,974
|
|
|
1
|
|
|
|
|
|
|
52
|
|
|
47
|
|
|
55
|
|
Mine or Operating Name/MSHA Identification Number
|
|
Contests of Citations, Orders
(as of 12.31.14)
(a)
|
|
Contests of Proposed Penalties
(as of 12.31.14)
(b)
|
|
Complaints for Compensation
(as of 12.31.14)
(c)
|
|
Complaints of Discharge, Discrimination or Interference
(as of 12.31.14)
(d)
|
|
Applications for Temporary Relief
(as of 12.31.14)
(e)
|
|
Appeals of Judges' Decisions or Order
(as of 12.31.14)
(f)
|
|||||||||||
|
|
|
|||||||||||||||||||||
|
|
Dockets
|
|
Citations
|
|
|
|
|
|||||||||||||||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Bailey
|
|
36-07230
|
|
—
|
|
|
13
|
|
|
42
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Buchanan
|
|
44-04856
|
|
—
|
|
|
20
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Enlow Fork
|
|
36-07416
|
|
—
|
|
|
14
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Harvey
|
|
36-10045
|
|
—
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Miller Creek PP #1
|
|
46-05890
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Twin Branch Surface
|
|
46-09075
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Water Assets - Contractor
|
|
A9295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Alma No. 1 Mine
|
|
46-09277
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amonate
|
|
46-05449
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Emery
|
|
42-00079
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ike Fork (5 Block Mine)
|
|
46-09420
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Laurel Fork
|
|
46-09084
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
52
|
|
|
256
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
|
Net Reserves
|
|
Future Net Revenue (M$)
|
|||||||||||
|
|
Oil
|
|
NGL
|
|
Gas
|
|
|
|
Present Worth
|
|||||
Category
|
|
(MBBL)
|
|
(MBBL)
|
|
(MMCF)
|
|
Total
|
|
at 10%
|
|||||
Proved Developed Producing
|
|
3,548.561
|
|
|
29,351.428
|
|
|
2,772,542.500
|
|
|
6,924,162.617
|
|
|
2,997,538.375
|
|
Proved Developed Non-Producing
|
|
512.837
|
|
|
3,053.765
|
|
|
207,363.297
|
|
|
676,218.438
|
|
|
292,942.594
|
|
Proved Undeveloped
|
|
3,151.293
|
|
|
45,384.684
|
|
|
3,337,694.750
|
|
|
7,432,983.500
|
|
|
1,593,710.500
|
|
Total Proved
|
|
7,212.690
|
|
|
77,789.875
|
|
|
6,317,600.500
|
|
|
15,033,366.000
|
|
|
4,884,191.000
|
|
|
|
|
NETHERLAND, SEWELL & ASSOCIATES, INC.
|
|
|
|
|
Texas Registered Engineering Firm F-2699
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ C.H. (Scott) Rees III
|
|
|
|
|
C.H. (Scott) Rees III, P.E.
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
By:
|
/s/ Richard B. Talley, Jr.
|
|
By:
|
/s/ David E. Nice
|
|
Richard B. Talley, Jr., P.E. 102425
|
|
|
David E. Nice, P.G. 346
|
|
Vice President
|
|
|
Vice President
|
|
|
|
|
|
Date Signed: February 2, 2015
|
|
Date Signed: February 2, 2015
|
||
|
|
|
|
|
RBT:TML
|
|
|
|
SUMMARY OF NET RESERVES AND FUTURE REVENUE
|
|||||||||||||||||||||||||||
CONSOL ENERGY INC. INTEREST
|
|||||||||||||||||||||||||||
AS OF DECEMBER 31, 2014
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
|
|
|
|
|
|||||||||
|
|
Net Reserves
|
|
Future
|
|
Operating
|
|
|
|
Including
|
|
Future Net Revenue (M$)
|
|||||||||||||||
|
|
Oil
|
|
NGL
|
|
Gas
|
|
Gross Revenue
|
|
Expense
|
|
Taxes
|
|
Abandonment
|
|
|
|
Discounted
|
|||||||||
Category
|
|
(MBBL)
|
|
(MBBL)
|
|
(MMCF)
|
|
(M$)
|
|
(M$)
|
|
(M$)
|
|
(M$)
|
|
Total
|
|
At 10%
|
|||||||||
Proved Developed Producing
|
|
3,548.561
|
|
|
29,351.428
|
|
|
2,772,542.500
|
|
|
12,045,982.000
|
|
|
4,228,079.500
|
|
|
437,335.500
|
|
|
326,642.781
|
|
|
7,053,924.000
|
|
|
3,107,607.250
|
|
Other Revenue and Costs
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79,330.180
|
)
|
|
50,431.230
|
|
|
—
|
|
|
—
|
|
|
(129,761.383
|
)
|
|
(110,068.875
|
)
|
Total Proved Developed Producing
|
|
3,548.561
|
|
|
29,351.428
|
|
|
2,772,542.500
|
|
|
11,966,651.820
|
|
|
4,278,510.730
|
|
|
437,335.500
|
|
|
326,642.781
|
|
|
6,924,162.617
|
|
|
2,997,538.375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Proved Developed Non-Producing
|
|
512.837
|
|
|
3,053.765
|
|
|
207,363.297
|
|
|
984,901.250
|
|
|
236,352.922
|
|
|
28,721.824
|
|
|
43,608.062
|
|
|
676,218.438
|
|
|
292,942.594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Proved Undeveloped
|
|
3,151.293
|
|
|
45,384.684
|
|
|
3,337,694.750
|
|
|
15,551,301.000
|
|
|
4,468,533.000
|
|
|
651,414.500
|
|
|
2,998,369.750
|
|
|
7,432,983.500
|
|
|
1,593,710.500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Proved
|
|
7,212.690
|
|
|
77,789.875
|
|
|
6,317,600.500
|
|
|
28,502,852.000
|
|
|
8,983,396.000
|
|
|
1,117,471.875
|
|
|
3,368,620.750
|
|
|
15,033,366.000
|
|
|
4,884,191.000
|
|
•
|
Bailey Mine (active)
|
•
|
Enlow fork Mine (active
|
•
|
Harvey Mine (formerly BMX Mine, active)
|
•
|
Mason-Dixon Mine (proposed)
|
•
|
River Mine (proposed)
|
Area
|
CONSOL Reserves
(Mt)
|
Golder Reserves
(Mt)
|
Difference
(%)
|
Bailey
|
255.2
|
257.4
|
0.90%
|
Enlow Fork
|
333.4
|
338.3
|
1.46%
|
BMX
|
200.3
|
203.7
|
1.73%
|
Mason-Dixon
|
377.4
|
375.7
|
-0.45%
|
River
|
543.2
|
549.8
|
1.21%
|
Total
|
1,709.4
|
1,724.9
|
0.90%
|