|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
51-0337383
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Class
|
|
Shares outstanding as of July 15, 2016
|
Common stock, $0.01 par value
|
|
229,435,607
|
|
TABLE OF CONTENTS
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||
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|
Page
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PART I FINANCIAL INFORMATION
|
|
|
|
|
|
ITEM 1.
|
Condensed Financial Statements
|
|
|
Consolidated Statements of Income for the three and six months ended June 30, 2016 and 2015
|
|
|
Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015
|
|
|
Consolidated Balance Sheets at June 30, 2016 and December 31, 2015
|
|
|
Consolidated Statement of Stockholders’ Equity for the six months ended June 30, 2016
|
|
|
Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015
|
|
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||
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ITEM 2.
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||
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ITEM 3.
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||
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ITEM 4.
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||
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PART II OTHER INFORMATION
|
|
|
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ITEM 1.
|
||
|
|
|
ITEM 1A.
|
Risk Factors
|
|
|
|
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ITEM 4.
|
||
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|
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ITEM 6.
|
ITEM 1.
|
CONDENSED FINANCIAL STATEMENTS
|
(Dollars in thousands, except per share data)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Unaudited)
|
June 30,
|
|
June 30,
|
||||||||||||
Revenues and Other Income:
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
167,933
|
|
|
$
|
159,654
|
|
|
$
|
349,188
|
|
|
$
|
384,092
|
|
(Loss) Gain on Commodity Derivative Instruments
|
(199,380
|
)
|
|
17,322
|
|
|
(144,320
|
)
|
|
107,467
|
|
||||
Coal Sales
|
251,166
|
|
|
318,995
|
|
|
477,330
|
|
|
705,021
|
|
||||
Other Outside Sales
|
8,059
|
|
|
6,337
|
|
|
15,768
|
|
|
19,467
|
|
||||
Purchased Gas Sales
|
7,929
|
|
|
1,517
|
|
|
16,547
|
|
|
5,114
|
|
||||
Freight-Outside Coal
|
11,447
|
|
|
2,750
|
|
|
24,557
|
|
|
7,768
|
|
||||
Miscellaneous Other Income
|
33,032
|
|
|
34,687
|
|
|
81,163
|
|
|
71,208
|
|
||||
Gain (Loss) on Sale of Assets
|
5,614
|
|
|
4,312
|
|
|
(1,662
|
)
|
|
6,286
|
|
||||
Total Revenue and Other Income
|
285,800
|
|
|
545,574
|
|
|
818,571
|
|
|
1,306,423
|
|
||||
Costs and Expenses:
|
|
|
|
|
|
|
|
||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
||||||||
Lease Operating Expense
|
23,655
|
|
|
29,521
|
|
|
51,394
|
|
|
66,777
|
|
||||
Transportation, Gathering and Compression
|
90,983
|
|
|
83,196
|
|
|
184,957
|
|
|
158,717
|
|
||||
Production, Ad Valorem, and Other Fees
|
6,402
|
|
|
6,938
|
|
|
14,705
|
|
|
16,130
|
|
||||
Depreciation, Depletion and Amortization
|
105,151
|
|
|
89,850
|
|
|
210,866
|
|
|
177,294
|
|
||||
Exploration and Production Related Other Costs
|
2,823
|
|
|
2,324
|
|
|
5,231
|
|
|
4,364
|
|
||||
Purchased Gas Costs
|
8,884
|
|
|
1,061
|
|
|
16,752
|
|
|
4,018
|
|
||||
Other Corporate Expenses
|
30,656
|
|
|
20,622
|
|
|
58,350
|
|
|
39,718
|
|
||||
Impairment of Exploration and Production Properties
|
—
|
|
|
828,905
|
|
|
—
|
|
|
828,905
|
|
||||
Selling, General, and Administrative Costs
|
16,175
|
|
|
21,070
|
|
|
33,738
|
|
|
42,894
|
|
||||
Total Exploration and Production Costs
|
284,729
|
|
|
1,083,487
|
|
|
575,993
|
|
|
1,338,817
|
|
||||
Coal Costs
|
|
|
|
|
|
|
|
||||||||
Operating and Other Costs
|
217,465
|
|
|
213,022
|
|
|
401,834
|
|
|
474,765
|
|
||||
Depreciation, Depletion and Amortization
|
30,069
|
|
|
48,280
|
|
|
79,342
|
|
|
102,982
|
|
||||
Freight Expense
|
11,447
|
|
|
2,750
|
|
|
24,557
|
|
|
7,768
|
|
||||
Selling, General, and Administrative Costs
|
6,174
|
|
|
6,147
|
|
|
10,660
|
|
|
12,678
|
|
||||
Other Corporate Expenses
|
4,355
|
|
|
10,207
|
|
|
7,498
|
|
|
16,282
|
|
||||
Total Coal Costs
|
269,510
|
|
|
280,406
|
|
|
523,891
|
|
|
614,475
|
|
||||
Other Costs
|
|
|
|
|
|
|
|
||||||||
Miscellaneous Operating Expense
|
17,497
|
|
|
14,045
|
|
|
20,686
|
|
|
24,420
|
|
||||
Depreciation, Depletion and Amortization
|
1
|
|
|
5
|
|
|
1
|
|
|
12
|
|
||||
Loss on Debt Extinguishment
|
—
|
|
|
17
|
|
|
—
|
|
|
67,751
|
|
||||
Interest Expense
|
47,427
|
|
|
46,506
|
|
|
97,292
|
|
|
101,627
|
|
||||
Total Other Costs
|
64,925
|
|
|
60,573
|
|
|
117,979
|
|
|
193,810
|
|
||||
Total Costs And Expenses
|
619,164
|
|
|
1,424,466
|
|
|
1,217,863
|
|
|
2,147,102
|
|
||||
Loss From Continuing Operations Before Income Tax
|
(333,364
|
)
|
|
(878,892
|
)
|
|
(399,292
|
)
|
|
(840,679
|
)
|
||||
Income Taxes
|
(100,354
|
)
|
|
(301,669
|
)
|
|
(123,571
|
)
|
|
(316,652
|
)
|
||||
Loss From Continuing Operations
|
(233,010
|
)
|
|
(577,223
|
)
|
|
(275,721
|
)
|
|
(524,027
|
)
|
||||
Loss From Discontinued Operations, net
|
(235,639
|
)
|
|
(26,078
|
)
|
|
(289,391
|
)
|
|
(244
|
)
|
||||
Net Loss
|
(468,649
|
)
|
|
(603,301
|
)
|
|
(565,112
|
)
|
|
(524,271
|
)
|
||||
Less: Net Income Attributable to Noncontrolling Interest
|
1,179
|
|
|
—
|
|
|
2,293
|
|
|
—
|
|
||||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(469,828
|
)
|
|
$
|
(603,301
|
)
|
|
$
|
(567,405
|
)
|
|
$
|
(524,271
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Dollars in thousands, except per share data)
|
June 30,
|
|
June 30,
|
||||||||||||
(Unaudited)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Loss Per Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
|
|
|
|
|
|
||||||||
Loss from Continuing Operations
|
$
|
(1.02
|
)
|
|
$
|
(2.52
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(2.29
|
)
|
Loss from Discontinued Operations
|
(1.03
|
)
|
|
(0.12
|
)
|
|
(1.26
|
)
|
|
—
|
|
||||
Total Basic Loss Per Share
|
$
|
(2.05
|
)
|
|
$
|
(2.64
|
)
|
|
$
|
(2.47
|
)
|
|
$
|
(2.29
|
)
|
Dilutive
|
|
|
|
|
|
|
|
||||||||
Loss from Continuing Operations
|
$
|
(1.02
|
)
|
|
$
|
(2.52
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(2.29
|
)
|
Loss from Discontinued Operations
|
(1.03
|
)
|
|
(0.12
|
)
|
|
(1.26
|
)
|
|
—
|
|
||||
Total Dilutive Loss Per Share
|
$
|
(2.05
|
)
|
|
$
|
(2.64
|
)
|
|
$
|
(2.47
|
)
|
|
$
|
(2.29
|
)
|
|
|
|
|
|
|
|
|
||||||||
Dividends Paid Per Share
|
$
|
—
|
|
|
$
|
0.0625
|
|
|
$
|
0.0100
|
|
|
$
|
0.1250
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Dollars in thousands)
|
June 30,
|
|
June 30,
|
||||||||||||
(Unaudited)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net Loss
|
$
|
(468,649
|
)
|
|
$
|
(603,301
|
)
|
|
$
|
(565,112
|
)
|
|
$
|
(524,271
|
)
|
Other Comprehensive Loss:
|
|
|
|
|
|
|
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($5,008), ($4,875), ($4,326), ($4,785))
|
8,045
|
|
|
9,467
|
|
|
5,561
|
|
|
9,318
|
|
||||
Reclassification of Cash Flow Hedges from OCI to Earnings (Net of tax: $6,521, $12,103, $12,145, $23,316)
|
(11,203
|
)
|
|
(20,804
|
)
|
|
(21,017
|
)
|
|
(40,118
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Loss
|
(3,158
|
)
|
|
(11,337
|
)
|
|
(15,456
|
)
|
|
(30,800
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Loss
|
(471,807
|
)
|
|
(614,638
|
)
|
|
(580,568
|
)
|
|
(555,071
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Less: Net Income Attributable to Noncontrolling Interests
|
1,179
|
|
|
—
|
|
|
2,293
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Loss Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(472,986
|
)
|
|
$
|
(614,638
|
)
|
|
$
|
(582,861
|
)
|
|
$
|
(555,071
|
)
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands)
|
June 30,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
97,626
|
|
|
$
|
72,574
|
|
Accounts and Notes Receivable:
|
|
|
|
||||
Trade
|
153,977
|
|
|
151,383
|
|
||
Other Receivables
|
94,125
|
|
|
121,735
|
|
||
Inventories
|
60,818
|
|
|
66,792
|
|
||
Recoverable Income Taxes
|
—
|
|
|
13,887
|
|
||
Prepaid Expenses
|
103,526
|
|
|
297,287
|
|
||
Current Assets of Discontinued Operations
|
16,168
|
|
|
81,106
|
|
||
Total Current Assets
|
526,240
|
|
|
804,764
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Property, Plant and Equipment
|
13,866,137
|
|
|
13,794,907
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
5,360,046
|
|
|
5,062,201
|
|
||
Property, Plant and Equipment of Discontinued Operations, Net
|
103,085
|
|
|
936,670
|
|
||
Total Property, Plant and Equipment—Net
|
8,609,176
|
|
|
9,669,376
|
|
||
Other Assets:
|
|
|
|
||||
Deferred Income Taxes
|
175,929
|
|
|
—
|
|
||
Investment in Affiliates
|
256,167
|
|
|
237,330
|
|
||
Other
|
214,079
|
|
|
214,388
|
|
||
Other Assets of Discontinued Operations
|
3,166
|
|
|
4,044
|
|
||
Total Other Assets
|
649,341
|
|
|
455,762
|
|
||
TOTAL ASSETS
|
$
|
9,784,757
|
|
|
$
|
10,929,902
|
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands, except per share data)
|
June 30,
2016 |
|
December 31,
2015 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
171,359
|
|
|
$
|
250,609
|
|
Current Portion of Long-Term Debt
|
4,368
|
|
|
4,988
|
|
||
Short-Term Notes Payable
|
466,000
|
|
|
952,000
|
|
||
Accrued Income Taxes
|
5,459
|
|
|
—
|
|
||
Other Accrued Liabilities
|
479,255
|
|
|
421,827
|
|
||
Current Liabilities of Discontinued Operations
|
24,938
|
|
|
51,514
|
|
||
Total Current Liabilities
|
1,151,379
|
|
|
1,680,938
|
|
||
Long-Term Debt:
|
|
|
|
||||
Long-Term Debt
|
2,723,004
|
|
|
2,708,320
|
|
||
Capital Lease Obligations
|
31,494
|
|
|
34,884
|
|
||
Long-Term Debt of Discontinued Operations
|
1,254
|
|
|
5,001
|
|
||
Total Long-Term Debt
|
2,755,752
|
|
|
2,748,205
|
|
||
Deferred Credits and Other Liabilities:
|
|
|
|
||||
Deferred Income Taxes
|
—
|
|
|
74,629
|
|
||
Postretirement Benefits Other Than Pensions
|
619,220
|
|
|
630,892
|
|
||
Pneumoconiosis Benefits
|
117,984
|
|
|
111,903
|
|
||
Mine Closing
|
214,344
|
|
|
227,339
|
|
||
Gas Well Closing
|
164,195
|
|
|
163,842
|
|
||
Workers’ Compensation
|
68,687
|
|
|
69,812
|
|
||
Salary Retirement
|
87,321
|
|
|
91,596
|
|
||
Reclamation
|
246
|
|
|
25
|
|
||
Other
|
244,354
|
|
|
166,957
|
|
||
Deferred Credits and Other Liabilities of Discontinued Operations
|
89,845
|
|
|
107,988
|
|
||
Total Deferred Credits and Other Liabilities
|
1,606,196
|
|
|
1,644,983
|
|
||
TOTAL LIABILITIES
|
5,513,327
|
|
|
6,074,126
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 229,433,854 Issued and Outstanding at June 30, 2016; 229,054,236 Issued and Outstanding at December 31, 2015
|
2,298
|
|
|
2,294
|
|
||
Capital in Excess of Par Value
|
2,445,840
|
|
|
2,435,497
|
|
||
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding
|
—
|
|
|
—
|
|
||
Retained Earnings
|
2,008,514
|
|
|
2,579,834
|
|
||
Accumulated Other Comprehensive Loss
|
(331,054
|
)
|
|
(315,598
|
)
|
||
Total CONSOL Energy Inc. Stockholders’ Equity
|
4,125,598
|
|
|
4,702,027
|
|
||
Noncontrolling Interest
|
145,832
|
|
|
153,749
|
|
||
TOTAL EQUITY
|
4,271,430
|
|
|
4,855,776
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
9,784,757
|
|
|
$
|
10,929,902
|
|
(Dollars in thousands, except per share data)
|
Common
Stock
|
|
Capital in
Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total CONSOL Energy Inc.
Stockholders’
Equity
|
|
Non-
Controlling
Interest
|
|
Total
Equity
|
||||||||||||||
Balance at December 31, 2015
|
$
|
2,294
|
|
|
$
|
2,435,497
|
|
|
$
|
2,579,834
|
|
|
$
|
(315,598
|
)
|
|
$
|
4,702,027
|
|
|
$
|
153,749
|
|
|
$
|
4,855,776
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net (Loss) Income
|
—
|
|
|
—
|
|
|
(567,405
|
)
|
|
—
|
|
|
(567,405
|
)
|
|
2,293
|
|
|
(565,112
|
)
|
|||||||
Other Comprehensive Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,456
|
)
|
|
(15,456
|
)
|
|
—
|
|
|
(15,456
|
)
|
|||||||
Comprehensive (Loss) Income
|
—
|
|
|
—
|
|
|
(567,405
|
)
|
|
(15,456
|
)
|
|
(582,861
|
)
|
|
2,293
|
|
|
(580,568
|
)
|
|||||||
Issuance of Common Stock
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||||
Treasury Stock Activity
|
—
|
|
|
—
|
|
|
(1,621
|
)
|
|
—
|
|
|
(1,621
|
)
|
|
—
|
|
|
(1,621
|
)
|
|||||||
Tax Cost From Stock-Based Compensation
|
—
|
|
|
(5,096
|
)
|
|
—
|
|
|
—
|
|
|
(5,096
|
)
|
|
—
|
|
|
(5,096
|
)
|
|||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
15,439
|
|
|
—
|
|
|
—
|
|
|
15,439
|
|
|
615
|
|
|
16,054
|
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,825
|
)
|
|
(10,825
|
)
|
|||||||
Dividends ($0.01 per share)
|
—
|
|
|
—
|
|
|
(2,294
|
)
|
|
—
|
|
|
(2,294
|
)
|
|
—
|
|
|
(2,294
|
)
|
|||||||
Balance at June 30, 2016
|
$
|
2,298
|
|
|
$
|
2,445,840
|
|
|
$
|
2,008,514
|
|
|
$
|
(331,054
|
)
|
|
$
|
4,125,598
|
|
|
$
|
145,832
|
|
|
$
|
4,271,430
|
|
(Dollars in thousands)
|
Six Months Ended
|
||||||
(Unaudited)
|
June 30,
|
||||||
Operating Activities:
|
2016
|
|
2015
|
||||
Net Loss
|
$
|
(565,112
|
)
|
|
$
|
(524,271
|
)
|
Adjustments to Reconcile Net Loss to Net Cash Provided By Operating Activities:
|
|
|
|
||||
Net Loss from Discontinued Operations
|
289,391
|
|
|
244
|
|
||
Depreciation, Depletion and Amortization
|
290,209
|
|
|
280,288
|
|
||
Impairment of Exploration and Production Properties
|
—
|
|
|
828,905
|
|
||
Non-Cash Other Post-Employment Benefits
|
—
|
|
|
(50,925
|
)
|
||
Stock-Based Compensation
|
16,054
|
|
|
14,129
|
|
||
Loss (Gain) on Sale of Assets
|
1,662
|
|
|
(6,286
|
)
|
||
Loss on Debt Extinguishment
|
—
|
|
|
67,751
|
|
||
Loss (Gain) on Commodity Derivative Instruments
|
144,320
|
|
|
(107,467
|
)
|
||
Net Cash Received in Settlement of Commodity Derivative Instruments
|
164,666
|
|
|
72,399
|
|
||
Deferred Income Taxes
|
(124,516
|
)
|
|
(312,234
|
)
|
||
Equity in Earnings of Affiliates
|
(25,884
|
)
|
|
(23,250
|
)
|
||
Return on Equity Investment
|
9,192
|
|
|
8,162
|
|
||
Changes in Operating Assets:
|
|
|
|
||||
Accounts and Notes Receivable
|
18,101
|
|
|
93,180
|
|
||
Inventories
|
(7,947
|
)
|
|
(8,118
|
)
|
||
Prepaid Expenses
|
47,136
|
|
|
83,570
|
|
||
Changes in Other Assets
|
(15,298
|
)
|
|
16,943
|
|
||
Changes in Operating Liabilities:
|
|
|
|
||||
Accounts Payable
|
(45,781
|
)
|
|
(93,870
|
)
|
||
Accrued Interest
|
(807
|
)
|
|
26,149
|
|
||
Other Operating Liabilities
|
(14,069
|
)
|
|
(118,056
|
)
|
||
Changes in Other Liabilities
|
15,343
|
|
|
(56,340
|
)
|
||
Other
|
9,648
|
|
|
56,800
|
|
||
Net Cash Provided by Continuing Operating Activities
|
206,308
|
|
|
247,703
|
|
||
Net Cash Provided by Discontinued Operating Activities
|
17,433
|
|
|
46,512
|
|
||
Net Cash Provided by Operating Activities
|
223,741
|
|
|
294,215
|
|
||
Investing Activities:
|
|
|
|
||||
Capital Expenditures
|
(115,257
|
)
|
|
(616,484
|
)
|
||
Proceeds from Sales of Assets
|
18,284
|
|
|
6,931
|
|
||
Net Investments in Equity Affiliates
|
(5,578
|
)
|
|
(43,761
|
)
|
||
Net Cash Used in Continuing Investing Activities
|
(102,551
|
)
|
|
(653,314
|
)
|
||
Net Cash Provided by (Used in) Discontinued Investing Activities
|
394,511
|
|
|
(19,301
|
)
|
||
Net Cash Provided by (Used in) Investing Activities
|
291,960
|
|
|
(672,615
|
)
|
||
Financing Activities:
|
|
|
|
||||
(Payments on) Proceeds from Short-Term Borrowings
|
(486,000
|
)
|
|
1,058,000
|
|
||
Payments on Miscellaneous Borrowings
|
(4,459
|
)
|
|
(4,029
|
)
|
||
Payments on Long-Term Notes, including Redemption Premium
|
—
|
|
|
(1,263,719
|
)
|
||
Net Proceeds from Revolver - CNX Coal Resources LP
|
13,000
|
|
|
—
|
|
||
Distributions to Noncontrolling Interest
|
(10,825
|
)
|
|
—
|
|
||
Proceeds from Securitization Facility
|
—
|
|
|
38,669
|
|
||
Proceeds from Issuance of Long-Term Notes
|
—
|
|
|
492,760
|
|
||
Tax Benefit from Stock-Based Compensation
|
—
|
|
|
198
|
|
||
Dividends Paid
|
(2,294
|
)
|
|
(28,711
|
)
|
||
Issuance of Common Stock
|
4
|
|
|
8,288
|
|
||
Purchases of Treasury Stock
|
—
|
|
|
(71,674
|
)
|
||
Debt Issuance and Financing Fees
|
—
|
|
|
(18,257
|
)
|
||
Net Cash (Used in) Provided by Continuing Financing Activities
|
(490,574
|
)
|
|
211,525
|
|
||
Net Cash Used in Discontinued Financing Activities
|
(75
|
)
|
|
(83
|
)
|
||
Net Cash (Used in) Provided by Financing Activities
|
(490,649
|
)
|
|
211,442
|
|
||
Net Increase (Decrease) in Cash and Cash Equivalents
|
25,052
|
|
|
(166,958
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
72,574
|
|
|
176,985
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
97,626
|
|
|
$
|
10,027
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
|||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||
Anti-Dilutive Options
|
6,348,665
|
|
|
3,667,080
|
|
|
6,348,665
|
|
|
3,667,080
|
|
|||||||
Anti-Dilutive Restricted Stock Units
|
742,868
|
|
|
1,606,672
|
|
|
742,868
|
|
|
1,606,672
|
|
|||||||
Anti-Dilutive Performance Share Units
|
951,541
|
|
|
—
|
|
|
951,541
|
|
|
—
|
|
|||||||
Anti-Dilutive Performance Stock Options
|
802,804
|
|
|
802,804
|
|
|
802,804
|
|
|
802,804
|
|
|||||||
|
8,845,878
|
|
|
6,076,556
|
|
|
8,845,878
|
|
|
6,076,556
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Options
|
—
|
|
|
287,592
|
|
|
—
|
|
|
363,620
|
|
||||||||
Restricted Stock Units
|
83,710
|
|
|
37,149
|
|
|
568,390
|
|
|
486,507
|
|
||||||||
Performance Share Units
|
—
|
|
|
—
|
|
|
—
|
|
|
497,134
|
|
||||||||
|
83,710
|
|
|
324,741
|
|
|
568,390
|
|
|
1,347,261
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Loss from Continuing Operations
|
$
|
(233,010
|
)
|
|
$
|
(577,223
|
)
|
|
$
|
(275,721
|
)
|
|
$
|
(524,027
|
)
|
||||||||
Loss from Discontinued Operations
|
(235,639
|
)
|
|
(26,078
|
)
|
|
(289,391
|
)
|
|
(244
|
)
|
||||||||||||
Net Loss
|
$
|
(468,649
|
)
|
|
$
|
(603,301
|
)
|
|
$
|
(565,112
|
)
|
|
$
|
(524,271
|
)
|
||||||||
Net Income Attributable to Noncontrolling Interest
|
1,179
|
|
|
—
|
|
|
2,293
|
|
|
—
|
|
||||||||||||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(469,828
|
)
|
|
$
|
(603,301
|
)
|
|
$
|
(567,405
|
)
|
|
$
|
(524,271
|
)
|
||||||||
Weighted Average Shares of Common Stock Outstanding:
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
229,409,325
|
|
|
228,928,803
|
|
|
229,334,277
|
|
|
229,329,382
|
|
||||||||||||
Effect of Stock-Based Compensation Awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Dilutive
|
229,409,325
|
|
|
228,928,803
|
|
|
229,334,277
|
|
|
229,329,382
|
|
||||||||||||
Loss per Share:
|
|
|
|
|
|
|
|
||||||||||||||||
Basic (Continuing Operations)
|
$
|
(1.02
|
)
|
|
$
|
(2.52
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(2.29
|
)
|
||||||||
Basic (Discontinued Operations)
|
(1.03
|
)
|
|
(0.12
|
)
|
|
(1.26
|
)
|
|
—
|
|
||||||||||||
Total Basic
|
$
|
(2.05
|
)
|
|
$
|
(2.64
|
)
|
|
$
|
(2.47
|
)
|
|
$
|
(2.29
|
)
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
Dilutive (Continuing Operations)
|
$
|
(1.02
|
)
|
|
$
|
(2.52
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(2.29
|
)
|
||||||||
Dilutive (Discontinued Operations)
|
(1.03
|
)
|
|
(0.12
|
)
|
|
(1.26
|
)
|
|
—
|
|
||||||||||||
Total Dilutive
|
$
|
(2.05
|
)
|
|
$
|
(2.64
|
)
|
|
$
|
(2.47
|
)
|
|
$
|
(2.29
|
)
|
|
Gains on Cash Flow Hedges
|
|
Postretirement Benefits
|
|
Total
|
||||||||||||
Balance at December 31, 2015
|
$
|
43,470
|
|
|
$
|
(359,068
|
)
|
|
$
|
(315,598
|
)
|
||||||
Other Comprehensive Loss before Reclassifications
|
—
|
|
|
(9,046
|
)
|
|
(9,046
|
)
|
|||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss
|
(21,017
|
)
|
|
14,607
|
|
|
(6,410
|
)
|
|||||||||
Current period Other Comprehensive (Loss) Income
|
(21,017
|
)
|
|
5,561
|
|
|
(15,456
|
)
|
|||||||||
Balance at June 30, 2016
|
$
|
22,453
|
|
|
$
|
(353,507
|
)
|
|
$
|
(331,054
|
)
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Derivative Instruments (Note 14)
|
|
|
|
|
|
|
|
||||||||||||||||
Natural Gas Price Swaps and Options
|
$
|
(17,724
|
)
|
|
$
|
(32,907
|
)
|
|
$
|
(33,162
|
)
|
|
$
|
(63,434
|
)
|
||||||||
Tax Expense
|
6,521
|
|
|
12,103
|
|
|
12,145
|
|
|
23,316
|
|
||||||||||||
Net of Tax
|
$
|
(11,203
|
)
|
|
$
|
(20,804
|
)
|
|
$
|
(21,017
|
)
|
|
$
|
(40,118
|
)
|
||||||||
Actuarially Determined Long-Term Liability Adjustments* (Note 5 and Note 6)
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of Prior Service Costs
|
$
|
(148
|
)
|
|
$
|
(54,495
|
)
|
|
$
|
(295
|
)
|
|
$
|
(69,308
|
)
|
||||||||
Recognized Net Actuarial Loss
|
5,706
|
|
|
24,169
|
|
|
11,217
|
|
|
38,742
|
|
||||||||||||
Settlement Loss
|
13,696
|
|
|
—
|
|
|
13,696
|
|
|
—
|
|
||||||||||||
Total
|
19,254
|
|
|
(30,326
|
)
|
|
24,618
|
|
|
(30,566
|
)
|
||||||||||||
Tax (Benefit) Expense
|
(7,178
|
)
|
|
11,398
|
|
|
(9,196
|
)
|
|
11,488
|
|
||||||||||||
Net of Tax
|
$
|
12,076
|
|
|
$
|
(18,928
|
)
|
|
$
|
15,422
|
|
|
$
|
(19,078
|
)
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Coal Sales
|
$
|
19,411
|
|
|
$
|
95,484
|
|
|
$
|
95,930
|
|
|
$
|
206,124
|
|
Freight-Outside Coal
|
5
|
|
|
1,501
|
|
|
1,017
|
|
|
3,008
|
|
||||
Miscellaneous Other Income
|
2
|
|
|
20
|
|
|
33
|
|
|
31
|
|
||||
Gain (Loss) on Sale of Assets
|
100
|
|
|
3
|
|
|
(38,253
|
)
|
|
194
|
|
||||
Total Revenue and Other Income
|
$
|
19,518
|
|
|
$
|
97,008
|
|
|
$
|
58,727
|
|
|
$
|
209,357
|
|
Total Coal Costs
|
26,547
|
|
|
113,347
|
|
|
115,780
|
|
|
210,481
|
|
||||
Loss From Operations Before Income Taxes
|
$
|
(7,029
|
)
|
|
$
|
(16,339
|
)
|
|
$
|
(57,053
|
)
|
|
$
|
(1,124
|
)
|
Impairment on Assets Held for Sale
|
355,681
|
|
|
—
|
|
|
355,681
|
|
|
—
|
|
||||
Income Tax (Benefit) Expense
|
(127,071
|
)
|
|
9,739
|
|
|
(123,343
|
)
|
|
(880
|
)
|
||||
Loss From Discontinued Operations, net
|
$
|
(235,639
|
)
|
|
$
|
(26,078
|
)
|
|
$
|
(289,391
|
)
|
|
$
|
(244
|
)
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
Assets:
|
|
|
|
||||
Accounts Receivable - Trade
|
$
|
10,672
|
|
|
$
|
49,125
|
|
Inventories
|
5,422
|
|
|
30,646
|
|
||
Prepaid Expense
|
9
|
|
|
970
|
|
||
Other Current Assets
|
65
|
|
|
365
|
|
||
Total Current Assets
|
$
|
16,168
|
|
|
$
|
81,106
|
|
Property, Plant and Equipment, Net
|
103,085
|
|
|
936,670
|
|
||
Other Assets
|
3,166
|
|
|
4,044
|
|
||
Total Assets of Discontinued Operations
|
$
|
122,419
|
|
|
$
|
1,021,820
|
|
Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
5,177
|
|
|
$
|
20,786
|
|
Other Current Liabilities
|
19,761
|
|
|
30,728
|
|
||
Total Current Liabilities
|
$
|
24,938
|
|
|
$
|
51,514
|
|
Long Term Debt
|
1,254
|
|
|
5,001
|
|
||
Pneumoconiosis Benefits
|
—
|
|
|
1,129
|
|
||
Mine Closing
|
61,329
|
|
|
71,941
|
|
||
Reclamation
|
28,516
|
|
|
34,126
|
|
||
Other liabilities
|
—
|
|
|
792
|
|
||
Total Liabilities of Discontinued Operations
|
$
|
116,037
|
|
|
$
|
164,503
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Rental Income
|
$
|
9,079
|
|
|
$
|
9,406
|
|
|
$
|
18,275
|
|
|
$
|
18,998
|
|
Equity in Earnings of Affiliates - CONE
|
8,205
|
|
|
9,381
|
|
|
22,556
|
|
|
17,037
|
|
||||
Coal Contract Buyout
|
6,288
|
|
|
—
|
|
|
6,288
|
|
|
—
|
|
||||
Gathering Revenue
|
2,648
|
|
|
1,393
|
|
|
5,396
|
|
|
5,953
|
|
||||
Royalty Income - Coal
|
2,423
|
|
|
3,602
|
|
|
4,653
|
|
|
8,142
|
|
||||
Right of Way Issuance
|
2,070
|
|
|
5,422
|
|
|
17,803
|
|
|
7,950
|
|
||||
Equity in Earnings of Affiliates - Other
|
1,014
|
|
|
2,546
|
|
|
3,328
|
|
|
6,213
|
|
||||
Interest Income
|
547
|
|
|
364
|
|
|
761
|
|
|
1,507
|
|
||||
Other
|
758
|
|
|
2,573
|
|
|
2,103
|
|
|
5,408
|
|
||||
Total Miscellaneous Other Income
|
$
|
33,032
|
|
|
$
|
34,687
|
|
|
$
|
81,163
|
|
|
$
|
71,208
|
|
|
Pension Benefits
|
|
Other Post-Employment Benefits
|
||||||||||||||||||||||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Service Cost
|
$
|
482
|
|
|
$
|
2,350
|
|
|
$
|
963
|
|
|
$
|
4,700
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest Cost
|
6,841
|
|
|
8,580
|
|
|
13,683
|
|
|
17,160
|
|
|
6,060
|
|
|
6,889
|
|
|
12,121
|
|
|
13,884
|
|
||||||||
Expected Return on Plan Assets
|
(11,869
|
)
|
|
(12,690
|
)
|
|
(23,738
|
)
|
|
(25,379
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of Prior Service Credits
|
(148
|
)
|
|
(176
|
)
|
|
(295
|
)
|
|
(352
|
)
|
|
—
|
|
|
(54,320
|
)
|
|
—
|
|
|
(68,956
|
)
|
||||||||
Recognized net Actuarial Loss
|
2,116
|
|
|
6,940
|
|
|
4,232
|
|
|
13,880
|
|
|
4,792
|
|
|
18,522
|
|
|
9,584
|
|
|
27,448
|
|
||||||||
Settlement Loss
|
13,696
|
|
|
—
|
|
|
13,696
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net Periodic Benefit Cost (Credit)
|
$
|
11,118
|
|
|
$
|
5,004
|
|
|
$
|
8,541
|
|
|
$
|
10,009
|
|
|
$
|
10,852
|
|
|
$
|
(28,909
|
)
|
|
$
|
21,705
|
|
|
$
|
(27,624
|
)
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||||||||||||||||||
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Service Cost
|
$
|
1,041
|
|
|
$
|
1,623
|
|
|
$
|
2,244
|
|
|
$
|
3,246
|
|
|
$
|
1,904
|
|
|
$
|
2,347
|
|
|
$
|
3,809
|
|
|
$
|
4,695
|
|
Interest Cost
|
1,053
|
|
|
1,279
|
|
|
2,176
|
|
|
2,558
|
|
|
638
|
|
|
799
|
|
|
1,275
|
|
|
1,597
|
|
||||||||
Amortization of Actuarial Gain
|
(1,188
|
)
|
|
(1,394
|
)
|
|
(2,571
|
)
|
|
(2,788
|
)
|
|
(101
|
)
|
|
(8
|
)
|
|
(202
|
)
|
|
(15
|
)
|
||||||||
State Administrative Fees and Insurance Bond Premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
968
|
|
|
973
|
|
|
1,699
|
|
|
1,876
|
|
||||||||
Curtailment Gain
|
—
|
|
|
—
|
|
|
(1,307
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net Periodic Benefit Cost
|
$
|
906
|
|
|
$
|
1,508
|
|
|
$
|
542
|
|
|
$
|
3,016
|
|
|
$
|
3,409
|
|
|
$
|
4,111
|
|
|
$
|
6,581
|
|
|
$
|
8,153
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
Coal
|
$
|
2,975
|
|
|
$
|
4,660
|
|
Supplies
|
57,843
|
|
|
62,132
|
|
||
Total Inventories
|
$
|
60,818
|
|
|
$
|
66,792
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
E&P Property, Plant and Equipment
|
|
|
|
||||
Intangible drilling cost
|
$
|
3,491,437
|
|
|
$
|
3,452,989
|
|
Proved gas properties
|
1,928,917
|
|
|
1,922,602
|
|
||
Unproved gas properties
|
1,422,991
|
|
|
1,421,083
|
|
||
Gas gathering equipment
|
1,128,278
|
|
|
1,147,173
|
|
||
Gas wells and related equipment
|
819,408
|
|
|
785,744
|
|
||
Other gas assets
|
127,645
|
|
|
125,691
|
|
||
Gas advance royalties
|
15,278
|
|
|
19,745
|
|
||
Total E&P Property, Plant and Equipment
|
$
|
8,933,954
|
|
|
$
|
8,875,027
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
2,902,470
|
|
|
2,695,674
|
|
||
Total E&P Property, Plant and Equipment - Net
|
$
|
6,031,484
|
|
|
$
|
6,179,353
|
|
|
|
|
|
||||
Coal and Other Property, Plant and Equipment - Continuing Operations:
|
|
|
|
||||
Coal and other plant and equipment
|
$
|
2,856,928
|
|
|
$
|
2,853,436
|
|
Coal properties and surface lands
|
805,011
|
|
|
769,537
|
|
||
Airshafts
|
371,064
|
|
|
361,872
|
|
||
Mine development
|
344,138
|
|
|
344,298
|
|
||
Coal advance mining royalties
|
330,738
|
|
|
328,715
|
|
||
Leased coal lands
|
224,304
|
|
|
262,022
|
|
||
Total Coal and Other Property, Plant and Equipment
|
$
|
4,932,183
|
|
|
$
|
4,919,880
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
2,457,576
|
|
|
2,366,527
|
|
||
Total Coal and Other Property, Plant and Equipment - Net
|
$
|
2,474,607
|
|
|
$
|
2,553,353
|
|
|
|
|
|
||||
Total Company Property, Plant and Equipment
|
$
|
13,866,137
|
|
|
$
|
13,794,907
|
|
Less - Total Company Accumulated Depreciation, Depletion and Amortization
|
5,360,046
|
|
|
5,062,201
|
|
||
Total Property, Plant and Equipment of Continuing Operations - Net
|
$
|
8,506,091
|
|
|
$
|
8,732,706
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
Debt:
|
|
|
|
||||
Senior Notes due April 2022 at 5.875% (Principal of $1,850,000 plus Unamortized Premium of $5,175 and $5,617, respectively)
|
$
|
1,855,175
|
|
|
$
|
1,855,617
|
|
Senior Notes due April 2023 at 8.00% (Principal of $500,000 less Unamortized Discount of $6,109 and $6,561, respectively)
|
493,891
|
|
|
493,439
|
|
||
Revolving Credit Facility - CNX Coal Resources LP
|
198,000
|
|
|
185,000
|
|
||
MEDCO Revenue Bonds in Series due September 2025 at 5.75%
|
102,865
|
|
|
102,865
|
|
||
Senior Notes due April 2020 at 8.25%, Issued at Par Value
|
74,470
|
|
|
74,470
|
|
||
Senior Notes due March 2021 at 6.375%, Issued at Par Value
|
20,611
|
|
|
20,611
|
|
||
Advance Royalty Commitments (16.35% Weighted Average Interest Rate)
|
3,482
|
|
|
3,964
|
|
||
Other Long-Term Note Maturing in 2018 (Principal of $2,504 and $3,096 less Unamortized Discount of $215 and $327, respectively)
|
2,289
|
|
|
2,769
|
|
||
Less: Unamortized Debt Issuance Costs
|
30,357
|
|
|
33,017
|
|
||
|
2,720,426
|
|
|
2,705,718
|
|
||
Net Amounts Due in One Year and Current Unamortized Debt Issuance Costs*
|
(2,578
|
)
|
|
(2,602
|
)
|
||
Long-Term Debt
|
$
|
2,723,004
|
|
|
$
|
2,708,320
|
|
|
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
|
$
|
67,523
|
|
|
$
|
39,934
|
|
|
$
|
27,589
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Environmental
|
998
|
|
|
998
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
240,490
|
|
|
204,593
|
|
|
35,897
|
|
|
—
|
|
|
—
|
|
|||||
Total Letters of Credit
|
309,011
|
|
|
245,525
|
|
|
63,486
|
|
|
—
|
|
|
—
|
|
|||||
Surety Bonds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
115,352
|
|
|
115,352
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Environmental
|
551,830
|
|
|
542,859
|
|
|
8,971
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
26,167
|
|
|
23,952
|
|
|
2,213
|
|
|
2
|
|
|
—
|
|
|||||
Total Surety Bonds
|
693,349
|
|
|
682,163
|
|
|
11,184
|
|
|
2
|
|
|
—
|
|
|||||
Guarantees:
|
|
|
|
|
|
|
|
|
|
||||||||||
Coal
|
16,700
|
|
|
16,700
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
80,556
|
|
|
42,183
|
|
|
18,990
|
|
|
14,397
|
|
|
4,986
|
|
|||||
Total Guarantees
|
97,256
|
|
|
58,883
|
|
|
18,990
|
|
|
14,397
|
|
|
4,986
|
|
|||||
Total Commitments
|
$
|
1,099,616
|
|
|
$
|
986,571
|
|
|
$
|
93,660
|
|
|
$
|
14,399
|
|
|
$
|
4,986
|
|
Obligations Due
|
Amount
|
||
Less than 1 year
|
$
|
193,389
|
|
1 - 3 years
|
278,664
|
|
|
3 - 5 years
|
224,537
|
|
|
More than 5 years
|
608,816
|
|
|
Total Purchase Obligations
|
$
|
1,305,406
|
|
Asset Derivative Instruments
|
|
Liability Derivative Instruments
|
||||||||||||||
|
June 30,
|
|
December 31,
|
|
|
June 30,
|
|
December 31,
|
||||||||
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
|||||||||
Prepaid Expense
|
$
|
58,057
|
|
|
$
|
234,409
|
|
|
Other Accrued Liabilities
|
$
|
66,104
|
|
|
$
|
—
|
|
Other Assets
|
13,126
|
|
|
44,539
|
|
|
Other Liabilities
|
76,458
|
|
|
5,137
|
|
||||
Total Asset
|
$
|
71,183
|
|
|
$
|
278,948
|
|
|
Total Liability
|
$
|
142,562
|
|
|
$
|
5,137
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basis Only Swaps:
|
|
|
|
|
|
|
|
|
||||||||
Prepaid Expense
|
$
|
9,188
|
|
|
$
|
5,429
|
|
|
Other Accrued Liabilities
|
$
|
12,704
|
|
|
$
|
12,206
|
|
Other Assets
|
6,999
|
|
|
1,093
|
|
|
Other Liabilities
|
7,693
|
|
|
1,569
|
|
||||
Total Asset
|
$
|
16,187
|
|
|
$
|
6,522
|
|
|
Total Liability
|
$
|
20,397
|
|
|
$
|
13,775
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Cash Received (Paid) in Settlement of Commodity Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
||||||||
Natural Gas
|
$
|
91,302
|
|
|
$
|
42,097
|
|
|
$
|
173,449
|
|
|
$
|
72,356
|
|
Propane
|
(114
|
)
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
||||
Natural Gas Basis Swaps
|
(10,853
|
)
|
|
161
|
|
|
(8,669
|
)
|
|
43
|
|
||||
Total Cash Received in Settlement of Commodity Derivative Instruments
|
80,335
|
|
|
42,258
|
|
|
164,666
|
|
|
72,399
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-Cash Portion of (Loss) Gain on Commodity Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
||||||||
Natural Gas
|
(306,376
|
)
|
|
(60,277
|
)
|
|
(344,398
|
)
|
|
(29,173
|
)
|
||||
Propane
|
(526
|
)
|
|
—
|
|
|
(792
|
)
|
|
—
|
|
||||
Natural Gas Basis Swaps
|
9,463
|
|
|
2,434
|
|
|
3,042
|
|
|
807
|
|
||||
Reclassified from Accumulated OCI
|
17,724
|
|
|
32,907
|
|
|
33,162
|
|
|
63,434
|
|
||||
Total Non-Cash Portion of (Loss) Gain on Commodity Derivative Instruments
|
(279,715
|
)
|
|
(24,936
|
)
|
|
(308,986
|
)
|
|
35,068
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(Loss) Gain on Commodity Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
||||||||
Natural Gas
|
(215,074
|
)
|
|
(18,180
|
)
|
|
(170,949
|
)
|
|
43,183
|
|
||||
Propane
|
(640
|
)
|
|
—
|
|
|
(906
|
)
|
|
—
|
|
||||
Natural Gas Basis Swaps
|
(1,390
|
)
|
|
2,595
|
|
|
(5,627
|
)
|
|
850
|
|
||||
Reclassified from Accumulated OCI
|
17,724
|
|
|
32,907
|
|
|
33,162
|
|
|
63,434
|
|
||||
Total (Loss) Gain on Commodity Derivative Instruments
|
$
|
(199,380
|
)
|
|
$
|
17,322
|
|
|
$
|
(144,320
|
)
|
|
$
|
107,467
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning Balance – Accumulated OCI
|
$
|
33,656
|
|
|
$
|
102,207
|
|
|
$
|
43,470
|
|
|
$
|
121,521
|
|
Gain Reclassified from Accumulated OCI (Net of tax: $6,521, $12,103, $12,145, $23,316)
|
(11,203
|
)
|
|
(20,804
|
)
|
|
(21,017
|
)
|
|
(40,118
|
)
|
||||
Ending Balance – Accumulated OCI
|
$
|
22,453
|
|
|
$
|
81,403
|
|
|
$
|
22,453
|
|
|
$
|
81,403
|
|
|
Fair Value Measurements at June 30, 2016
|
|
Fair Value Measurements at December 31, 2015
|
||||||||||||||||||||
Description
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||||
Gas Derivatives
|
$
|
—
|
|
|
$
|
(75,589
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
266,558
|
|
|
$
|
—
|
|
Murray Energy Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,463
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,228
|
)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Cash and Cash Equivalents
|
$
|
97,626
|
|
|
$
|
97,626
|
|
|
$
|
72,574
|
|
|
$
|
72,574
|
|
Short-Term Notes Payable
|
$
|
(466,000
|
)
|
|
$
|
(466,000
|
)
|
|
$
|
(952,000
|
)
|
|
$
|
(952,000
|
)
|
Long-Term Debt
|
$
|
(2,750,784
|
)
|
|
$
|
(2,374,724
|
)
|
|
$
|
(2,738,735
|
)
|
|
$
|
(1,808,936
|
)
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Operations
|
|
Other
Coal
|
|
Total Coal
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||
Sales—Outside
|
$
|
83,651
|
|
|
$
|
41,037
|
|
|
$
|
33,574
|
|
|
$
|
9,671
|
|
|
$
|
167,933
|
|
|
$
|
250,562
|
|
|
$
|
604
|
|
|
$
|
251,166
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
419,099
|
|
|
Gain (Loss) on Commodity Derivative Instruments
|
48,870
|
|
|
10,019
|
|
|
16,478
|
|
|
(274,747
|
)
|
|
(199,380
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(199,380
|
)
|
|
|||||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,059
|
|
|
8,059
|
|
|
—
|
|
|
—
|
|
|
8,059
|
|
|
|||||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
7,929
|
|
|
7,929
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,929
|
|
|
|||||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,186
|
|
|
261
|
|
|
11,447
|
|
|
—
|
|
|
—
|
|
|
11,447
|
|
|
|||||||||||
Total Sales and Freight
|
$
|
132,521
|
|
|
$
|
51,056
|
|
|
$
|
50,052
|
|
|
$
|
(257,147
|
)
|
|
$
|
(23,518
|
)
|
|
$
|
261,748
|
|
|
$
|
8,924
|
|
|
$
|
270,672
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
247,154
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
13,304
|
|
|
$
|
9,923
|
|
|
$
|
5,218
|
|
|
$
|
(322,944
|
)
|
|
$
|
(294,499
|
)
|
|
$
|
22,773
|
|
|
$
|
642
|
|
|
$
|
23,415
|
|
|
$
|
(62,280
|
)
|
|
$
|
—
|
|
|
$
|
(333,364
|
)
|
(A)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,511,352
|
|
|
$
|
2,029,307
|
|
|
$
|
650,870
|
|
|
$
|
2,680,177
|
|
|
$
|
470,809
|
|
|
$
|
122,419
|
|
|
$
|
9,784,757
|
|
(B)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
105,151
|
|
|
$
|
41,698
|
|
|
$
|
(11,629
|
)
|
|
$
|
30,069
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
135,221
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
23,452
|
|
|
$
|
13,099
|
|
|
$
|
424
|
|
|
$
|
13,523
|
|
|
$
|
618
|
|
|
$
|
—
|
|
|
$
|
37,593
|
|
|
|
Marcellus
Shale
|
|
Utica
Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Operations
|
|
Other
Coal
|
|
Total
Coal
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||
Sales—Outside
|
$
|
81,321
|
|
|
$
|
17,661
|
|
|
$
|
46,640
|
|
|
$
|
14,032
|
|
|
$
|
159,654
|
|
|
$
|
318,995
|
|
|
$
|
—
|
|
|
$
|
318,995
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
478,649
|
|
(C)
|
Gain (Loss) on Commodity Derivative Instruments
|
18,260
|
|
|
—
|
|
|
18,752
|
|
|
(19,690
|
)
|
|
17,322
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,322
|
|
|
|||||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,337
|
|
|
6,337
|
|
|
—
|
|
|
—
|
|
|
6,337
|
|
|
|||||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
1,517
|
|
|
1,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,517
|
|
|
|||||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,706
|
|
|
44
|
|
|
2,750
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
|
|||||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(349
|
)
|
|
—
|
|
|
|||||||||||
Total Sales and Freight
|
$
|
99,581
|
|
|
$
|
17,661
|
|
|
$
|
65,741
|
|
|
$
|
(4,141
|
)
|
|
$
|
178,842
|
|
|
$
|
321,701
|
|
|
$
|
6,381
|
|
|
$
|
328,082
|
|
|
$
|
—
|
|
|
$
|
(349
|
)
|
|
$
|
506,575
|
|
|
(Loss) Earnings Before Income Taxes
|
$
|
(1,528
|
)
|
|
$
|
(6,710
|
)
|
|
$
|
13,997
|
|
|
$
|
(897,131
|
)
|
|
$
|
(891,372
|
)
|
|
$
|
61,804
|
|
|
$
|
9,635
|
|
|
$
|
71,439
|
|
|
$
|
(58,610
|
)
|
|
$
|
(349
|
)
|
|
$
|
(878,892
|
)
|
(D)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,761,700
|
|
|
$
|
2,090,674
|
|
|
$
|
934,115
|
|
|
$
|
3,024,789
|
|
|
$
|
180,931
|
|
|
$
|
998,441
|
|
|
$
|
10,965,861
|
|
(E)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
89,850
|
|
|
$
|
47,335
|
|
|
$
|
945
|
|
|
$
|
48,280
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
138,135
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
289,152
|
|
|
$
|
35,415
|
|
|
$
|
1,489
|
|
|
$
|
36,904
|
|
|
$
|
3,822
|
|
|
$
|
—
|
|
|
$
|
329,878
|
|
|
(C)
|
Included in the Coal segment are sales of
$51,676
to Duke Energy, which comprises over 10% of sales.
|
(D)
|
Includes equity in earnings of unconsolidated affiliates of
$10,032
and
$1,895
for E&P and Coal, respectively.
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Operations
|
|
Other
Coal
|
|
Total Coal
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||
Sales—Outside
|
$
|
179,789
|
|
|
$
|
75,298
|
|
|
$
|
75,493
|
|
|
$
|
18,608
|
|
|
$
|
349,188
|
|
|
$
|
476,726
|
|
|
$
|
604
|
|
|
$
|
477,330
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
826,518
|
|
|
Gain (Loss) on Commodity Derivative Instruments
|
97,434
|
|
|
20,028
|
|
|
35,599
|
|
|
(297,381
|
)
|
|
(144,320
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(144,320
|
)
|
|
|||||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,768
|
|
|
15,768
|
|
|
—
|
|
|
—
|
|
|
15,768
|
|
|
|||||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
16,547
|
|
|
16,547
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,547
|
|
|
|||||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,262
|
|
|
295
|
|
|
24,557
|
|
|
—
|
|
|
—
|
|
|
24,557
|
|
|
|||||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(424
|
)
|
|
—
|
|
|
|||||||||||
Total Sales and Freight
|
$
|
277,223
|
|
|
$
|
95,326
|
|
|
$
|
111,516
|
|
|
$
|
(262,226
|
)
|
|
$
|
221,839
|
|
|
$
|
500,988
|
|
|
$
|
16,667
|
|
|
$
|
517,655
|
|
|
$
|
—
|
|
|
$
|
(424
|
)
|
|
$
|
739,070
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
32,786
|
|
|
$
|
13,179
|
|
|
$
|
17,824
|
|
|
$
|
(381,829
|
)
|
|
$
|
(318,040
|
)
|
|
$
|
45,847
|
|
|
$
|
(14,398
|
)
|
|
$
|
31,449
|
|
|
$
|
(112,277
|
)
|
|
$
|
(424
|
)
|
|
$
|
(399,292
|
)
|
(F)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,511,352
|
|
|
$
|
2,029,307
|
|
|
$
|
650,870
|
|
|
$
|
2,680,177
|
|
|
$
|
470,809
|
|
|
$
|
122,419
|
|
|
$
|
9,784,757
|
|
(G)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
210,866
|
|
|
$
|
82,964
|
|
|
$
|
(3,622
|
)
|
|
$
|
79,342
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
290,209
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
86,314
|
|
|
$
|
26,003
|
|
|
$
|
1,041
|
|
|
$
|
27,044
|
|
|
$
|
1,899
|
|
|
$
|
—
|
|
|
$
|
115,257
|
|
|
|
Marcellus
Shale
|
|
Utica
Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Operations
|
|
Other
Coal
|
|
Total
Coal
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||||||
Sales—Outside
|
$
|
207,622
|
|
|
$
|
36,264
|
|
|
$
|
107,967
|
|
|
$
|
32,239
|
|
|
$
|
384,092
|
|
|
$
|
703,432
|
|
|
$
|
1,589
|
|
|
$
|
705,021
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,089,113
|
|
|
Gain on Commodity Derivative Instruments
|
31,051
|
|
|
—
|
|
|
32,410
|
|
|
44,006
|
|
|
107,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,467
|
|
|
|||||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,467
|
|
|
19,467
|
|
|
—
|
|
|
—
|
|
|
19,467
|
|
|
|||||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
5,114
|
|
|
5,114
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,114
|
|
|
|||||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,075
|
|
|
2,693
|
|
|
7,768
|
|
|
—
|
|
|
—
|
|
|
7,768
|
|
|
|||||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
896
|
|
|
—
|
|
|
896
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(896
|
)
|
|
—
|
|
|
|||||||||||
Total Sales and Freight
|
$
|
238,673
|
|
|
$
|
36,264
|
|
|
$
|
141,273
|
|
|
$
|
81,359
|
|
|
$
|
497,569
|
|
|
$
|
708,507
|
|
|
$
|
23,749
|
|
|
$
|
732,256
|
|
|
$
|
—
|
|
|
$
|
(896
|
)
|
|
$
|
1,228,929
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
45,649
|
|
|
$
|
(10,831
|
)
|
|
$
|
32,566
|
|
|
$
|
(882,765
|
)
|
|
$
|
(815,381
|
)
|
|
$
|
160,205
|
|
|
$
|
3,533
|
|
|
$
|
163,738
|
|
|
$
|
(188,140
|
)
|
|
$
|
(896
|
)
|
|
$
|
(840,679
|
)
|
(H)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,761,700
|
|
|
$
|
2,090,674
|
|
|
$
|
934,115
|
|
|
$
|
3,024,789
|
|
|
$
|
180,931
|
|
|
$
|
998,441
|
|
|
$
|
10,965,861
|
|
(I)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
177,294
|
|
|
$
|
93,079
|
|
|
$
|
9,903
|
|
|
$
|
102,982
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
280,288
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
539,455
|
|
|
$
|
67,961
|
|
|
$
|
2,310
|
|
|
$
|
70,271
|
|
|
$
|
6,758
|
|
|
$
|
—
|
|
|
$
|
616,484
|
|
|
(H)
|
Includes equity in earnings of unconsolidated affiliates of
$18,410
and
$4,840
for E&P and Coal, respectively.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
Loss Before Income Taxes:
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Segment Loss Before Income Taxes for reportable business segments
|
$
|
(271,084
|
)
|
|
$
|
(819,933
|
)
|
|
$
|
(286,591
|
)
|
|
$
|
(651,643
|
)
|
Segment Loss Before Income Taxes for all other business segments
|
(14,853
|
)
|
|
(12,087
|
)
|
|
(14,985
|
)
|
|
(18,762
|
)
|
||||
Interest expense, net
|
(47,427
|
)
|
|
(46,506
|
)
|
|
(97,292
|
)
|
|
(101,627
|
)
|
||||
Eliminations
|
—
|
|
|
(349
|
)
|
|
(424
|
)
|
|
(896
|
)
|
||||
Loss on debt extinguishment
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(67,751
|
)
|
||||
Loss Before Income Taxes
|
$
|
(333,364
|
)
|
|
$
|
(878,892
|
)
|
|
$
|
(399,292
|
)
|
|
$
|
(840,679
|
)
|
Total Assets:
|
June 30,
|
||||||
2016
|
|
2015
|
|||||
Segment assets for total reportable business segments
|
$
|
9,191,529
|
|
|
$
|
9,786,489
|
|
Segment assets for all other business segments
|
197,333
|
|
|
80,358
|
|
||
Items excluded from segment assets:
|
|
|
|
||||
Cash and other investments
|
97,547
|
|
|
9,942
|
|
||
Recoverable income taxes
|
—
|
|
|
21,211
|
|
||
Deferred tax assets
|
175,929
|
|
|
69,420
|
|
||
Discontinued Operations
|
122,419
|
|
|
998,441
|
|
||
Total Consolidated Assets
|
$
|
9,784,757
|
|
|
$
|
10,965,861
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
167,933
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
167,933
|
|
Loss on Commodity Derivative Instruments
|
—
|
|
|
(199,380
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(199,380
|
)
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
201,054
|
|
|
50,112
|
|
|
—
|
|
|
—
|
|
|
251,166
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
8,059
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,059
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
7,929
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,929
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
9,210
|
|
|
2,237
|
|
|
—
|
|
|
—
|
|
|
11,447
|
|
|||||||
Miscellaneous Other Income
|
(431,586
|
)
|
|
12,256
|
|
|
19,352
|
|
|
1,423
|
|
|
—
|
|
|
431,587
|
|
|
33,032
|
|
|||||||
Gain on Sale of Assets
|
—
|
|
|
2,247
|
|
|
3,366
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
5,614
|
|
|||||||
Total Revenue and Other Income
|
(431,586
|
)
|
|
(9,015
|
)
|
|
241,041
|
|
|
53,773
|
|
|
—
|
|
|
431,587
|
|
|
285,800
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
23,655
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,655
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
90,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,983
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
6,402
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,402
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
105,151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105,151
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
2,823
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,823
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
8,884
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,884
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
30,656
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,656
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
16,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,175
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
284,729
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284,729
|
|
|||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
932
|
|
|
—
|
|
|
179,696
|
|
|
36,837
|
|
|
—
|
|
|
—
|
|
|
217,465
|
|
|||||||
Depreciation, Depletion and Amortization
|
149
|
|
|
—
|
|
|
21,581
|
|
|
8,339
|
|
|
—
|
|
|
—
|
|
|
30,069
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
9,210
|
|
|
2,237
|
|
|
—
|
|
|
—
|
|
|
11,447
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
4,975
|
|
|
1,199
|
|
|
—
|
|
|
—
|
|
|
6,174
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
3,892
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
4,355
|
|
|||||||
Total Coal Costs
|
1,081
|
|
|
—
|
|
|
219,354
|
|
|
49,075
|
|
|
—
|
|
|
—
|
|
|
269,510
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
17,442
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
17,497
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Interest Expense
|
42,991
|
|
|
755
|
|
|
1,590
|
|
|
2,091
|
|
|
—
|
|
|
—
|
|
|
47,427
|
|
|||||||
Total Other Costs
|
60,433
|
|
|
755
|
|
|
1,638
|
|
|
2,091
|
|
|
8
|
|
|
—
|
|
|
64,925
|
|
|||||||
Total Costs And Expenses
|
61,514
|
|
|
285,484
|
|
|
220,992
|
|
|
51,166
|
|
|
8
|
|
|
—
|
|
|
619,164
|
|
|||||||
(Loss) Earnings Before Income Tax
|
(493,100
|
)
|
|
(294,499
|
)
|
|
20,049
|
|
|
2,607
|
|
|
(8
|
)
|
|
431,587
|
|
|
(333,364
|
)
|
|||||||
Income Taxes
|
(23,272
|
)
|
|
(117,034
|
)
|
|
39,955
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(100,354
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(469,828
|
)
|
|
(177,465
|
)
|
|
(19,906
|
)
|
|
2,607
|
|
|
(5
|
)
|
|
431,587
|
|
|
(233,010
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(235,639
|
)
|
|
—
|
|
|
(235,639
|
)
|
|||||||
Net (Loss) Income
|
(469,828
|
)
|
|
(177,465
|
)
|
|
(19,906
|
)
|
|
2,607
|
|
|
(235,644
|
)
|
|
431,587
|
|
|
(468,649
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
1,179
|
|
|||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders
|
$
|
(469,828
|
)
|
|
$
|
(177,465
|
)
|
|
$
|
(19,906
|
)
|
|
$
|
2,607
|
|
|
$
|
(235,644
|
)
|
|
$
|
430,408
|
|
|
$
|
(469,828
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC
Non-Guarantor |
|
Other Subsidiary
Non-Guarantors |
|
Elimination
|
|
Consolidated
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and Cash Equivalents
|
$
|
87,638
|
|
|
$
|
75
|
|
|
$
|
137
|
|
|
$
|
8,961
|
|
|
$
|
815
|
|
|
$
|
—
|
|
|
$
|
97,626
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trade
|
—
|
|
|
65,067
|
|
|
70,762
|
|
|
18,148
|
|
|
—
|
|
|
—
|
|
|
153,977
|
|
|||||||
Other Receivables
|
35,224
|
|
|
54,548
|
|
|
4,261
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
94,125
|
|
|||||||
Inventories
|
—
|
|
|
12,079
|
|
|
39,846
|
|
|
8,893
|
|
|
—
|
|
|
—
|
|
|
60,818
|
|
|||||||
Prepaid Expenses
|
16,398
|
|
|
70,994
|
|
|
13,452
|
|
|
2,682
|
|
|
—
|
|
|
—
|
|
|
103,526
|
|
|||||||
Current Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,168
|
|
|
—
|
|
|
16,168
|
|
|||||||
Total Current Assets
|
139,260
|
|
|
202,763
|
|
|
128,458
|
|
|
38,776
|
|
|
16,983
|
|
|
—
|
|
|
526,240
|
|
|||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property, Plant and Equipment
|
143,526
|
|
|
8,933,954
|
|
|
4,092,675
|
|
|
695,982
|
|
|
—
|
|
|
—
|
|
|
13,866,137
|
|
|||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
105,447
|
|
|
2,902,470
|
|
|
2,015,107
|
|
|
337,022
|
|
|
—
|
|
|
—
|
|
|
5,360,046
|
|
|||||||
Property, Plant and Equipment of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103,085
|
|
|
—
|
|
|
103,085
|
|
|||||||
Total Property, Plant and Equipment-Net
|
38,079
|
|
|
6,031,484
|
|
|
2,077,568
|
|
|
358,960
|
|
|
103,085
|
|
|
—
|
|
|
8,609,176
|
|
|||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deferred Income Taxes
|
234,572
|
|
|
(58,643
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175,929
|
|
|||||||
Investment in Affiliates
|
9,883,209
|
|
|
252,517
|
|
|
19,757
|
|
|
—
|
|
|
—
|
|
|
(9,899,316
|
)
|
|
256,167
|
|
|||||||
Other
|
63,051
|
|
|
24,588
|
|
|
109,255
|
|
|
17,185
|
|
|
—
|
|
|
—
|
|
|
214,079
|
|
|||||||
Other Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,166
|
|
|
—
|
|
|
3,166
|
|
|||||||
Total Other Assets
|
10,180,832
|
|
|
218,462
|
|
|
129,012
|
|
|
17,185
|
|
|
3,166
|
|
|
(9,899,316
|
)
|
|
649,341
|
|
|||||||
Total Assets
|
$
|
10,358,171
|
|
|
$
|
6,452,709
|
|
|
$
|
2,335,038
|
|
|
$
|
414,921
|
|
|
$
|
123,234
|
|
|
$
|
(9,899,316
|
)
|
|
$
|
9,784,757
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts Payable
|
$
|
19,794
|
|
|
$
|
85,410
|
|
|
$
|
45,968
|
|
|
$
|
11,240
|
|
|
$
|
—
|
|
|
$
|
8,947
|
|
|
$
|
171,359
|
|
Accounts Payable (Recoverable)-Related Parties
|
3,175,959
|
|
|
1,426,279
|
|
|
(4,384,694
|
)
|
|
981
|
|
|
(209,578
|
)
|
|
(8,947
|
)
|
|
—
|
|
|||||||
Current Portion of Long-Term Debt
|
(2,732
|
)
|
|
6,244
|
|
|
797
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
4,368
|
|
|||||||
Short-Term Notes Payable
|
466,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
466,000
|
|
|||||||
Accrued Income Taxes
|
(53,567
|
)
|
|
59,026
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,459
|
|
|||||||
Other Accrued Liabilities
|
57,701
|
|
|
160,024
|
|
|
229,257
|
|
|
32,273
|
|
|
—
|
|
|
—
|
|
|
479,255
|
|
|||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,938
|
|
|
—
|
|
|
24,938
|
|
|||||||
Total Current Liabilities
|
3,663,155
|
|
|
1,736,983
|
|
|
(4,108,672
|
)
|
|
44,553
|
|
|
(184,640
|
)
|
|
—
|
|
|
1,151,379
|
|
|||||||
Long-Term Debt:
|
2,424,590
|
|
|
30,110
|
|
|
105,293
|
|
|
194,505
|
|
|
1,254
|
|
|
—
|
|
|
2,755,752
|
|
|||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
619,220
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
619,220
|
|
|||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
116,118
|
|
|
1,866
|
|
|
—
|
|
|
—
|
|
|
117,984
|
|
|||||||
Mine Closing
|
—
|
|
|
—
|
|
|
207,148
|
|
|
7,196
|
|
|
—
|
|
|
—
|
|
|
214,344
|
|
|||||||
Gas Well Closing
|
—
|
|
|
134,790
|
|
|
29,326
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
164,195
|
|
|||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
66,267
|
|
|
2,420
|
|
|
—
|
|
|
—
|
|
|
68,687
|
|
|||||||
Salary Retirement
|
87,321
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,321
|
|
|||||||
Reclamation
|
—
|
|
|
—
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
246
|
|
|||||||
Other
|
57,507
|
|
|
182,240
|
|
|
4,071
|
|
|
536
|
|
|
—
|
|
|
—
|
|
|
244,354
|
|
|||||||
Deferred Credits and Other Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,845
|
|
|
—
|
|
|
89,845
|
|
|||||||
Total Deferred Credits and Other Liabilities
|
144,828
|
|
|
317,030
|
|
|
1,042,396
|
|
|
12,097
|
|
|
89,845
|
|
|
—
|
|
|
1,606,196
|
|
|||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
4,125,598
|
|
|
4,368,586
|
|
|
5,296,021
|
|
|
163,766
|
|
|
216,775
|
|
|
(10,045,148
|
)
|
|
4,125,598
|
|
|||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145,832
|
|
|
145,832
|
|
|||||||
Total Liabilities and Equity
|
$
|
10,358,171
|
|
|
$
|
6,452,709
|
|
|
$
|
2,335,038
|
|
|
$
|
414,921
|
|
|
$
|
123,234
|
|
|
$
|
(9,899,316
|
)
|
|
$
|
9,784,757
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC
Non-Guarantor |
|
Other
Subsidiary
Non-Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
160,004
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(350
|
)
|
|
$
|
159,654
|
|
Gain on Commodity Derivative Instruments
|
—
|
|
|
17,322
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,322
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
255,196
|
|
|
63,799
|
|
|
—
|
|
|
—
|
|
|
318,995
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
6,337
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,337
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
1,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,517
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
2,209
|
|
|
541
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
|||||||
Miscellaneous Other Income
|
(565,923
|
)
|
|
13,214
|
|
|
21,588
|
|
|
135
|
|
|
1,976
|
|
|
563,697
|
|
|
34,687
|
|
|||||||
Gain on Sale of Assets
|
—
|
|
|
1,545
|
|
|
2,757
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
4,312
|
|
|||||||
Total Revenue and Other Income
|
(565,923
|
)
|
|
193,602
|
|
|
288,087
|
|
|
64,485
|
|
|
1,976
|
|
|
563,347
|
|
|
545,574
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
29,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,521
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
83,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83,196
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
6,938
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,938
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
89,850
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,850
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
2,324
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
11
|
|
|
2,324
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
1,061
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,061
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
20,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,622
|
|
|||||||
Impairment of Exploration and Production Properties
|
—
|
|
|
828,905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
828,905
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
21,070
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,070
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
1,083,487
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
11
|
|
|
1,083,487
|
|
|||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
1,946
|
|
|
—
|
|
|
171,820
|
|
|
39,256
|
|
|
—
|
|
|
—
|
|
|
213,022
|
|
|||||||
Depreciation, Depletion and Amortization
|
147
|
|
|
—
|
|
|
38,666
|
|
|
9,467
|
|
|
—
|
|
|
—
|
|
|
48,280
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
2,209
|
|
|
541
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
5,002
|
|
|
1,145
|
|
|
—
|
|
|
—
|
|
|
6,147
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
8,435
|
|
|
1,772
|
|
|
—
|
|
|
—
|
|
|
10,207
|
|
|||||||
Total Coal Costs
|
2,093
|
|
|
—
|
|
|
226,132
|
|
|
52,181
|
|
|
—
|
|
|
—
|
|
|
280,406
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
13,140
|
|
|
—
|
|
|
680
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
14,045
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||||
Loss on Debt Extinguishment
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||||
Interest Expense
|
44,264
|
|
|
1,484
|
|
|
1,626
|
|
|
2,328
|
|
|
30
|
|
|
(3,226
|
)
|
|
46,506
|
|
|||||||
Total Other Costs
|
57,421
|
|
|
1,484
|
|
|
2,311
|
|
|
2,328
|
|
|
255
|
|
|
(3,226
|
)
|
|
60,573
|
|
|||||||
Total Costs And Expenses
|
59,514
|
|
|
1,084,971
|
|
|
228,443
|
|
|
54,509
|
|
|
244
|
|
|
(3,215
|
)
|
|
1,424,466
|
|
|||||||
(Loss) Earnings Before Income Tax
|
(625,437
|
)
|
|
(891,369
|
)
|
|
59,644
|
|
|
9,976
|
|
|
1,732
|
|
|
566,562
|
|
|
(878,892
|
)
|
|||||||
Income Taxes
|
(22,136
|
)
|
|
(351,270
|
)
|
|
71,081
|
|
|
—
|
|
|
656
|
|
|
—
|
|
|
(301,669
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(603,301
|
)
|
|
(540,099
|
)
|
|
(11,437
|
)
|
|
9,976
|
|
|
1,076
|
|
|
566,562
|
|
|
(577,223
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,078
|
)
|
|
—
|
|
|
(26,078
|
)
|
|||||||
Net (Loss) Income
|
$
|
(603,301
|
)
|
|
$
|
(540,099
|
)
|
|
$
|
(11,437
|
)
|
|
$
|
9,976
|
|
|
$
|
(25,002
|
)
|
|
$
|
566,562
|
|
|
$
|
(603,301
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and Cash Equivalents
|
$
|
64,995
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
6,531
|
|
|
$
|
973
|
|
|
$
|
—
|
|
|
$
|
72,574
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trade
|
—
|
|
|
72,664
|
|
|
63,201
|
|
|
15,518
|
|
|
—
|
|
|
—
|
|
|
151,383
|
|
|||||||
Other Receivables
|
18,933
|
|
|
99,001
|
|
|
3,424
|
|
|
377
|
|
|
—
|
|
|
—
|
|
|
121,735
|
|
|||||||
Inventories
|
—
|
|
|
13,815
|
|
|
43,186
|
|
|
9,791
|
|
|
—
|
|
|
—
|
|
|
66,792
|
|
|||||||
Recoverable Income Taxes
|
72,913
|
|
|
(59,026
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,887
|
|
|||||||
Prepaid Expenses
|
27,245
|
|
|
244,680
|
|
|
21,282
|
|
|
4,080
|
|
|
—
|
|
|
—
|
|
|
297,287
|
|
|||||||
Current Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,106
|
|
|
—
|
|
|
81,106
|
|
|||||||
Total Current Assets
|
184,086
|
|
|
371,209
|
|
|
131,093
|
|
|
36,297
|
|
|
82,079
|
|
|
—
|
|
|
804,764
|
|
|||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property, Plant and Equipment
|
156,348
|
|
|
8,875,027
|
|
|
4,071,050
|
|
|
692,482
|
|
|
—
|
|
|
—
|
|
|
13,794,907
|
|
|||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
111,367
|
|
|
2,695,674
|
|
|
1,934,431
|
|
|
320,729
|
|
|
—
|
|
|
—
|
|
|
5,062,201
|
|
|||||||
Property, Plant and Equipment of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
936,670
|
|
|
—
|
|
|
936,670
|
|
|||||||
Total Property, Plant and Equipment-Net
|
44,981
|
|
|
6,179,353
|
|
|
2,136,619
|
|
|
371,753
|
|
|
936,670
|
|
|
—
|
|
|
9,669,376
|
|
|||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment in Affiliates
|
9,701,145
|
|
|
234,803
|
|
|
6,293
|
|
|
—
|
|
|
—
|
|
|
(9,704,911
|
)
|
|
237,330
|
|
|||||||
Other
|
53,529
|
|
|
47,892
|
|
|
98,888
|
|
|
14,079
|
|
|
—
|
|
|
—
|
|
|
214,388
|
|
|||||||
Other Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,044
|
|
|
—
|
|
|
4,044
|
|
|||||||
Total Other Assets
|
9,754,674
|
|
|
282,695
|
|
|
105,181
|
|
|
14,079
|
|
|
4,044
|
|
|
(9,704,911
|
)
|
|
455,762
|
|
|||||||
Total Assets
|
$
|
9,983,741
|
|
|
$
|
6,833,257
|
|
|
$
|
2,372,893
|
|
|
$
|
422,129
|
|
|
$
|
1,022,793
|
|
|
$
|
(9,704,911
|
)
|
|
$
|
10,929,902
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts Payable
|
$
|
33,427
|
|
|
$
|
149,930
|
|
|
$
|
39,412
|
|
|
$
|
14,023
|
|
|
$
|
—
|
|
|
$
|
13,817
|
|
|
$
|
250,609
|
|
Accounts Payable (Recoverable)-Related Parties
|
1,786,710
|
|
|
1,521,444
|
|
|
(3,088,340
|
)
|
|
3,452
|
|
|
(209,449
|
)
|
|
(13,817
|
)
|
|
—
|
|
|||||||
Current Portion of Long-Term Debt
|
(2,777
|
)
|
|
6,798
|
|
|
918
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
4,988
|
|
|||||||
Short-Term Notes Payable
|
952,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
952,000
|
|
|||||||
Other Accrued Liabilities
|
63,668
|
|
|
102,753
|
|
|
225,477
|
|
|
29,929
|
|
|
—
|
|
|
—
|
|
|
421,827
|
|
|||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,514
|
|
|
—
|
|
|
51,514
|
|
|||||||
Total Current Liabilities
|
2,833,028
|
|
|
1,780,925
|
|
|
(2,822,533
|
)
|
|
47,453
|
|
|
(157,935
|
)
|
|
—
|
|
|
1,680,938
|
|
|||||||
Long-Term Debt:
|
2,423,247
|
|
|
33,141
|
|
|
105,770
|
|
|
181,046
|
|
|
5,001
|
|
|
—
|
|
|
2,748,205
|
|
|||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deferred Income Taxes
|
(122,547
|
)
|
|
197,176
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,629
|
|
|||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
630,892
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
630,892
|
|
|||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
110,356
|
|
|
1,547
|
|
|
—
|
|
|
—
|
|
|
111,903
|
|
|||||||
Mine Closing
|
—
|
|
|
—
|
|
|
220,617
|
|
|
6,722
|
|
|
—
|
|
|
—
|
|
|
227,339
|
|
|||||||
Gas Well Closing
|
—
|
|
|
135,174
|
|
|
28,591
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
163,842
|
|
|||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
67,469
|
|
|
2,343
|
|
|
—
|
|
|
—
|
|
|
69,812
|
|
|||||||
Salary Retirement
|
91,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,596
|
|
|||||||
Reclamation
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||||
Other
|
56,390
|
|
|
105,588
|
|
|
4,408
|
|
|
571
|
|
|
—
|
|
|
—
|
|
|
166,957
|
|
|||||||
Deferred Credits and Other Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,988
|
|
|
—
|
|
|
107,988
|
|
|||||||
Total Deferred Credits and Other Liabilities
|
25,439
|
|
|
437,938
|
|
|
1,062,358
|
|
|
11,260
|
|
|
107,988
|
|
|
—
|
|
|
1,644,983
|
|
|||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
4,702,027
|
|
|
4,581,253
|
|
|
4,027,298
|
|
|
182,370
|
|
|
1,067,739
|
|
|
(9,858,660
|
)
|
|
4,702,027
|
|
|||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153,749
|
|
|
153,749
|
|
|||||||
Total Liabilities and Equity
|
$
|
9,983,741
|
|
|
$
|
6,833,257
|
|
|
$
|
2,372,893
|
|
|
$
|
422,129
|
|
|
$
|
1,022,793
|
|
|
$
|
(9,704,911
|
)
|
|
$
|
10,929,902
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
349,611
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(423
|
)
|
|
$
|
349,188
|
|
Loss on Commodity Derivative Instruments
|
—
|
|
|
(144,320
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(144,320
|
)
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
381,985
|
|
|
95,345
|
|
|
—
|
|
|
—
|
|
|
477,330
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
15,768
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,768
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
16,547
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,547
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
19,705
|
|
|
4,852
|
|
|
—
|
|
|
—
|
|
|
24,557
|
|
|||||||
Miscellaneous Other Income
|
(498,206
|
)
|
|
42,419
|
|
|
37,321
|
|
|
1,424
|
|
|
—
|
|
|
498,205
|
|
|
81,163
|
|
|||||||
(Loss) Gain on Sale of Assets
|
—
|
|
|
(4,896
|
)
|
|
3,243
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(1,662
|
)
|
|||||||
Total Revenue and Other Income
|
(498,206
|
)
|
|
259,361
|
|
|
458,022
|
|
|
101,612
|
|
|
—
|
|
|
497,782
|
|
|
818,571
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
51,394
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,394
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
184,957
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184,957
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
14,705
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,705
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
210,866
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
210,866
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
5,231
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,231
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
16,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,752
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
58,350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,350
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
33,738
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,738
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
575,993
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
575,993
|
|
|||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
1,935
|
|
|
—
|
|
|
332,268
|
|
|
67,631
|
|
|
—
|
|
|
—
|
|
|
401,834
|
|
|||||||
Depreciation, Depletion and Amortization
|
302
|
|
|
—
|
|
|
62,448
|
|
|
16,592
|
|
|
—
|
|
|
—
|
|
|
79,342
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
19,705
|
|
|
4,852
|
|
|
—
|
|
|
—
|
|
|
24,557
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
8,229
|
|
|
2,431
|
|
|
—
|
|
|
—
|
|
|
10,660
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
6,583
|
|
|
915
|
|
|
—
|
|
|
—
|
|
|
7,498
|
|
|||||||
Total Coal Costs
|
2,237
|
|
|
—
|
|
|
429,233
|
|
|
92,421
|
|
|
—
|
|
|
—
|
|
|
523,891
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
20,450
|
|
|
—
|
|
|
206
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
20,686
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Interest Expense
|
88,619
|
|
|
1,408
|
|
|
3,180
|
|
|
4,085
|
|
|
—
|
|
|
—
|
|
|
97,292
|
|
|||||||
Total Other Costs
|
109,069
|
|
|
1,408
|
|
|
3,387
|
|
|
4,085
|
|
|
30
|
|
|
—
|
|
|
117,979
|
|
|||||||
Total Costs And Expenses
|
111,306
|
|
|
577,401
|
|
|
432,620
|
|
|
96,506
|
|
|
30
|
|
|
—
|
|
|
1,217,863
|
|
|||||||
(Loss) Earnings Before Income Tax
|
(609,512
|
)
|
|
(318,040
|
)
|
|
25,402
|
|
|
5,106
|
|
|
(30
|
)
|
|
497,782
|
|
|
(399,292
|
)
|
|||||||
Income Taxes
|
(42,107
|
)
|
|
(126,389
|
)
|
|
44,936
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(123,571
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(567,405
|
)
|
|
(191,651
|
)
|
|
(19,534
|
)
|
|
5,106
|
|
|
(19
|
)
|
|
497,782
|
|
|
(275,721
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(289,391
|
)
|
|
—
|
|
|
(289,391
|
)
|
|||||||
Net (Loss) Income
|
(567,405
|
)
|
|
(191,651
|
)
|
|
(19,534
|
)
|
|
5,106
|
|
|
(289,410
|
)
|
|
497,782
|
|
|
(565,112
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,293
|
|
|
2,293
|
|
|||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders
|
$
|
(567,405
|
)
|
|
$
|
(191,651
|
)
|
|
$
|
(19,534
|
)
|
|
$
|
5,106
|
|
|
$
|
(289,410
|
)
|
|
$
|
495,489
|
|
|
$
|
(567,405
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
384,989
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(897
|
)
|
|
$
|
384,092
|
|
Gain on Commodity Derivative Instruments
|
—
|
|
|
107,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,467
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
564,335
|
|
|
140,686
|
|
|
—
|
|
|
—
|
|
|
705,021
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
19,467
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,467
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
5,114
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,114
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
6,753
|
|
|
1,015
|
|
|
—
|
|
|
—
|
|
|
7,768
|
|
|||||||
Miscellaneous Other Income
|
(403,747
|
)
|
|
27,820
|
|
|
43,217
|
|
|
351
|
|
|
4,276
|
|
|
399,291
|
|
|
71,208
|
|
|||||||
Gain on Sale of Assets
|
—
|
|
|
2,186
|
|
|
4,075
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
6,286
|
|
|||||||
Total Revenue and Other Income
|
(403,747
|
)
|
|
527,576
|
|
|
637,847
|
|
|
142,077
|
|
|
4,276
|
|
|
398,394
|
|
|
1,306,423
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
66,777
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,777
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
158,717
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
158,717
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
16,130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,130
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
177,294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177,294
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
4,364
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
6
|
|
|
4,364
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
4,018
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,018
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
39,718
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,718
|
|
|||||||
Impairment of Exploration and Production Properties
|
—
|
|
|
828,905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
828,905
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
42,894
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,894
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
1,338,817
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
6
|
|
|
1,338,817
|
|
|||||||
Coal Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
3,594
|
|
|
—
|
|
|
385,801
|
|
|
85,370
|
|
|
—
|
|
|
—
|
|
|
474,765
|
|
|||||||
Depreciation, Depletion and Amortization
|
293
|
|
|
—
|
|
|
84,073
|
|
|
18,616
|
|
|
—
|
|
|
—
|
|
|
102,982
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
6,753
|
|
|
1,015
|
|
|
—
|
|
|
—
|
|
|
7,768
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
10,334
|
|
|
2,344
|
|
|
—
|
|
|
—
|
|
|
12,678
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
13,584
|
|
|
2,698
|
|
|
—
|
|
|
—
|
|
|
16,282
|
|
|||||||
Total Coal Costs
|
3,887
|
|
|
—
|
|
|
500,545
|
|
|
110,043
|
|
|
—
|
|
|
—
|
|
|
614,475
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
23,202
|
|
|
—
|
|
|
766
|
|
|
—
|
|
|
452
|
|
|
—
|
|
|
24,420
|
|
|||||||
Depreciation, Depletion and Amortization
|
2
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||||
Loss on Debt Extinguishment
|
67,751
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,751
|
|
|||||||
Interest Expense
|
97,110
|
|
|
4,139
|
|
|
3,186
|
|
|
4,709
|
|
|
76
|
|
|
(7,593
|
)
|
|
101,627
|
|
|||||||
Total Other Costs
|
188,065
|
|
|
4,139
|
|
|
3,962
|
|
|
4,709
|
|
|
528
|
|
|
(7,593
|
)
|
|
193,810
|
|
|||||||
Total Costs And Expenses
|
191,952
|
|
|
1,342,956
|
|
|
504,507
|
|
|
114,752
|
|
|
522
|
|
|
(7,587
|
)
|
|
2,147,102
|
|
|||||||
(Loss) Earnings Before Income Tax
|
(595,699
|
)
|
|
(815,380
|
)
|
|
133,340
|
|
|
27,325
|
|
|
3,754
|
|
|
405,981
|
|
|
(840,679
|
)
|
|||||||
Income Taxes
|
(71,428
|
)
|
|
(306,176
|
)
|
|
59,531
|
|
|
—
|
|
|
1,421
|
|
|
—
|
|
|
(316,652
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(524,271
|
)
|
|
(509,204
|
)
|
|
73,809
|
|
|
27,325
|
|
|
2,333
|
|
|
405,981
|
|
|
(524,027
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(244
|
)
|
|
—
|
|
|
(244
|
)
|
|||||||
Net (Loss) Income
|
$
|
(524,271
|
)
|
|
$
|
(509,204
|
)
|
|
$
|
73,809
|
|
|
$
|
27,325
|
|
|
$
|
2,089
|
|
|
$
|
405,981
|
|
|
$
|
(524,271
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary Non-Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
513,635
|
|
|
$
|
77,812
|
|
|
$
|
21,417
|
|
|
$
|
18,934
|
|
|
$
|
(412,027
|
)
|
|
$
|
(13,463
|
)
|
|
$
|
206,308
|
|
Net Cash Provided by Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,433
|
|
|
—
|
|
|
17,433
|
|
|||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
513,635
|
|
|
$
|
77,812
|
|
|
$
|
21,417
|
|
|
$
|
18,934
|
|
|
$
|
(394,594
|
)
|
|
$
|
(13,463
|
)
|
|
$
|
223,741
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Expenditures
|
$
|
(1,899
|
)
|
|
$
|
(86,314
|
)
|
|
$
|
(21,842
|
)
|
|
$
|
(5,202
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(115,257
|
)
|
Proceeds From Sales of Assets
|
—
|
|
|
13,700
|
|
|
4,569
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
18,284
|
|
|||||||
(Investments in), net of Distributions from, Equity Affiliates
|
—
|
|
|
(2,145
|
)
|
|
(3,433
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,578
|
)
|
|||||||
Net Cash Used in Continuing Operations
|
(1,899
|
)
|
|
(74,759
|
)
|
|
(20,706
|
)
|
|
(5,187
|
)
|
|
—
|
|
|
—
|
|
|
(102,551
|
)
|
|||||||
Net Cash Provided by Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394,511
|
|
|
—
|
|
|
394,511
|
|
|||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
(1,899
|
)
|
|
$
|
(74,759
|
)
|
|
$
|
(20,706
|
)
|
|
$
|
(5,187
|
)
|
|
$
|
394,511
|
|
|
$
|
—
|
|
|
$
|
291,960
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Payments on Short-Term Borrowings
|
$
|
(486,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(486,000
|
)
|
Payments on Miscellaneous Borrowings
|
(803
|
)
|
|
(3,053
|
)
|
|
(574
|
)
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(4,459
|
)
|
|||||||
Proceeds from Revolver - MLP
|
—
|
|
|
—
|
|
|
—
|
|
|
13,000
|
|
|
—
|
|
|
—
|
|
|
13,000
|
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,288
|
)
|
|
—
|
|
|
13,463
|
|
|
(10,825
|
)
|
|||||||
Dividends Paid
|
(2,294
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,294
|
)
|
|||||||
Proceeds from Issuance of Common Stock
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||||
Net Cash (Used in) Provided by Continuing Operations
|
(489,093
|
)
|
|
(3,053
|
)
|
|
(574
|
)
|
|
(11,317
|
)
|
|
—
|
|
|
13,463
|
|
|
(490,574
|
)
|
|||||||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
|||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(489,093
|
)
|
|
$
|
(3,053
|
)
|
|
$
|
(574
|
)
|
|
$
|
(11,317
|
)
|
|
$
|
(75
|
)
|
|
$
|
13,463
|
|
|
$
|
(490,649
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
(362,496
|
)
|
|
$
|
475,631
|
|
|
$
|
83,091
|
|
|
$
|
38,538
|
|
|
$
|
(27,257
|
)
|
|
$
|
40,196
|
|
|
$
|
247,703
|
|
Net Cash Provided by Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,512
|
|
|
—
|
|
|
46,512
|
|
|||||||
Net Cash (Used in) Provided by Operating Activities
|
$
|
(362,496
|
)
|
|
$
|
475,631
|
|
|
$
|
83,091
|
|
|
$
|
38,538
|
|
|
$
|
19,255
|
|
|
$
|
40,196
|
|
|
$
|
294,215
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Expenditures
|
$
|
(6,758
|
)
|
|
$
|
(539,455
|
)
|
|
$
|
(56,678
|
)
|
|
$
|
(13,593
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(616,484
|
)
|
Proceeds From Sales of Assets
|
—
|
|
|
2,607
|
|
|
4,279
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
6,931
|
|
|||||||
(Investments in), net of Distributions from, Equity Affiliates
|
—
|
|
|
(36,201
|
)
|
|
(7,560
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,761
|
)
|
|||||||
Net Cash Used in Continuing Operations
|
(6,758
|
)
|
|
(573,049
|
)
|
|
(59,959
|
)
|
|
(13,548
|
)
|
|
—
|
|
|
—
|
|
|
(653,314
|
)
|
|||||||
Net Cash Used in Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,301
|
)
|
|
—
|
|
|
(19,301
|
)
|
|||||||
Net Cash Used in Investing Activities
|
$
|
(6,758
|
)
|
|
$
|
(573,049
|
)
|
|
$
|
(59,959
|
)
|
|
$
|
(13,548
|
)
|
|
$
|
(19,301
|
)
|
|
$
|
—
|
|
|
$
|
(672,615
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proceeds from (Payments on) Short-Term Borrowings
|
$
|
1,058,000
|
|
|
$
|
70,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(70,000
|
)
|
|
$
|
1,058,000
|
|
(Payments on) Proceeds from Miscellaneous Borrowings
|
(788
|
)
|
|
(3,180
|
)
|
|
(4,875
|
)
|
|
4,814
|
|
|
—
|
|
|
—
|
|
|
(4,029
|
)
|
|||||||
Payments on Long-Term Borrowings
|
(1,263,719
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,263,719
|
)
|
|||||||
Proceeds from Long-Term Borrowings
|
492,760
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
492,760
|
|
|||||||
Proceeds from Securitization Facility
|
38,669
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,669
|
|
|||||||
Net Change in Parent Advancements
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,804
|
)
|
|
—
|
|
|
29,804
|
|
|
—
|
|
|||||||
Tax Benefit from Stock-Based Compensation
|
198
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198
|
|
|||||||
Dividends Paid
|
(28,711
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,711
|
)
|
|||||||
Proceeds from Issuance of Common Stock
|
8,288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,288
|
|
|||||||
Treasury Stock Activity
|
(71,674
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,674
|
)
|
|||||||
Debt Issuance and Financing Fees
|
—
|
|
|
—
|
|
|
(18,257
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,257
|
)
|
|||||||
Net Cash Provided by (Used in) Continuing Operations
|
233,023
|
|
|
66,820
|
|
|
(23,132
|
)
|
|
(24,990
|
)
|
|
—
|
|
|
(40,196
|
)
|
|
211,525
|
|
|||||||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
(83
|
)
|
|||||||
Net Cash Provided by (Used in) Financing Activities
|
$
|
233,023
|
|
|
$
|
66,820
|
|
|
$
|
(23,132
|
)
|
|
$
|
(24,990
|
)
|
|
$
|
(83
|
)
|
|
$
|
(40,196
|
)
|
|
$
|
211,442
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor |
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(469,828
|
)
|
|
$
|
(177,465
|
)
|
|
$
|
(19,906
|
)
|
|
$
|
2,607
|
|
|
$
|
(235,644
|
)
|
|
$
|
431,587
|
|
|
$
|
(468,649
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
8,045
|
|
|
—
|
|
|
8,062
|
|
|
(17
|
)
|
|
—
|
|
|
(8,045
|
)
|
|
8,045
|
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(11,203
|
)
|
|
(11,203
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,203
|
|
|
(11,203
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(3,158
|
)
|
|
(11,203
|
)
|
|
8,062
|
|
|
(17
|
)
|
|
—
|
|
|
3,158
|
|
|
(3,158
|
)
|
|||||||
Comprehensive (Loss) Income
|
(472,986
|
)
|
|
(188,668
|
)
|
|
(11,844
|
)
|
|
2,590
|
|
|
(235,644
|
)
|
|
434,745
|
|
|
(471,807
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
1,179
|
|
|||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(472,986
|
)
|
|
$
|
(188,668
|
)
|
|
$
|
(11,844
|
)
|
|
$
|
2,590
|
|
|
$
|
(235,644
|
)
|
|
$
|
433,566
|
|
|
$
|
(472,986
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(603,301
|
)
|
|
$
|
(540,099
|
)
|
|
$
|
(11,437
|
)
|
|
$
|
9,976
|
|
|
$
|
(25,002
|
)
|
|
$
|
566,562
|
|
|
$
|
(603,301
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
9,467
|
|
|
—
|
|
|
9,854
|
|
|
(387
|
)
|
|
—
|
|
|
(9,467
|
)
|
|
9,467
|
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(20,804
|
)
|
|
(20,804
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,804
|
|
|
(20,804
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(11,337
|
)
|
|
(20,804
|
)
|
|
9,854
|
|
|
(387
|
)
|
|
—
|
|
|
11,337
|
|
|
(11,337
|
)
|
|||||||
Comprehensive (Loss) Income
|
$
|
(614,638
|
)
|
|
$
|
(560,903
|
)
|
|
$
|
(1,583
|
)
|
|
$
|
9,589
|
|
|
$
|
(25,002
|
)
|
|
$
|
577,899
|
|
|
$
|
(614,638
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor |
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(567,405
|
)
|
|
$
|
(191,651
|
)
|
|
$
|
(19,534
|
)
|
|
$
|
5,106
|
|
|
$
|
(289,410
|
)
|
|
$
|
497,782
|
|
|
$
|
(565,112
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
5,561
|
|
|
—
|
|
|
5,598
|
|
|
(37
|
)
|
|
—
|
|
|
(5,561
|
)
|
|
5,561
|
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(21,017
|
)
|
|
(21,017
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,017
|
|
|
(21,017
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(15,456
|
)
|
|
(21,017
|
)
|
|
5,598
|
|
|
(37
|
)
|
|
—
|
|
|
15,456
|
|
|
(15,456
|
)
|
|||||||
Comprehensive (Loss) Income
|
(582,861
|
)
|
|
(212,668
|
)
|
|
(13,936
|
)
|
|
5,069
|
|
|
(289,410
|
)
|
|
513,238
|
|
|
(580,568
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,293
|
|
|
2,293
|
|
|||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(582,861
|
)
|
|
$
|
(212,668
|
)
|
|
$
|
(13,936
|
)
|
|
$
|
5,069
|
|
|
$
|
(289,410
|
)
|
|
$
|
510,945
|
|
|
$
|
(582,861
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(524,271
|
)
|
|
$
|
(509,204
|
)
|
|
$
|
73,809
|
|
|
$
|
27,325
|
|
|
$
|
2,089
|
|
|
$
|
405,981
|
|
|
$
|
(524,271
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
9,318
|
|
|
—
|
|
|
10,707
|
|
|
(1,389
|
)
|
|
—
|
|
|
(9,318
|
)
|
|
9,318
|
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(40,118
|
)
|
|
(40,118
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,118
|
|
|
(40,118
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(30,800
|
)
|
|
(40,118
|
)
|
|
10,707
|
|
|
(1,389
|
)
|
|
—
|
|
|
30,800
|
|
|
(30,800
|
)
|
|||||||
Comprehensive (Loss) Income
|
$
|
(555,071
|
)
|
|
$
|
(549,322
|
)
|
|
$
|
84,516
|
|
|
$
|
25,936
|
|
|
$
|
2,089
|
|
|
$
|
436,781
|
|
|
$
|
(555,071
|
)
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating and Other Costs
|
$
|
1,016
|
|
|
$
|
1,155
|
|
|
$
|
2,029
|
|
|
$
|
1,795
|
|
Selling, General and Administrative Expenses
|
962
|
|
|
1,897
|
|
|
1,896
|
|
|
3,525
|
|
||||
Total Services from CONSOL Energy
|
$
|
1,978
|
|
|
$
|
3,052
|
|
|
$
|
3,925
|
|
|
$
|
5,320
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
2016
|
|
2017
|
|
Total Yearly Production (Bcfe)
|
|
380-385
|
|
TBD
*
|
|
Volumes Hedged (Bcf), as of 7/13/16
|
|
268.5**
|
|
224.2
|
|
|
|
Q3 2016
|
|
2016
|
|
2017
|
||||||
Total NYMEX + Basis
*
(Bcf)
|
|
72.1
|
|
|
263.6
|
|
|
187.1
|
|
|||
Average Hedge Price ($/Mcf)
|
|
$
|
2.79
|
|
|
$
|
3.04
|
|
|
$
|
2.61
|
|
|
|
|
|
|
|
|
||||||
NYMEX Only Hedges Exposed to Basis (Bcf)
|
|
-
|
|
|
-
|
|
|
37.1
|
|
|||
Average Hedge Price ($/Mcf)
|
|
-
|
|
|
-
|
|
|
$
|
3.01
|
|
||
|
|
|
|
|
|
|
||||||
Physical Sales With Fixed Basis Exposed to NYMEX (Bcf)
|
|
3.5
|
|
|
4.9
|
|
|
-
|
|
|||
Average Hedge Basis Value ($/Mcf)
|
|
$
|
(0.29
|
)
|
|
$
|
(0.09
|
)
|
|
-
|
|
|
For the Three Months Ended June 30,
|
||||||||||
(Dollars in thousands)
|
2016
|
|
2015
|
|
Variance
|
||||||
Loss from Continuing Operations
|
$
|
(233,010
|
)
|
|
$
|
(577,223
|
)
|
|
$
|
344,213
|
|
Loss from Discontinued Operations
|
(235,639
|
)
|
|
(26,078
|
)
|
|
(209,561
|
)
|
|||
Net Loss
|
$
|
(468,649
|
)
|
|
$
|
(603,301
|
)
|
|
$
|
134,652
|
|
Less: Net Income Attributable to Noncontrolling Interest
|
1,179
|
|
|
—
|
|
|
1,179
|
|
|||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(469,828
|
)
|
|
$
|
(603,301
|
)
|
|
$
|
133,473
|
|
|
|
For the Three Months Ended June 30,
|
|||||||||||||
in thousands (unless noted)
|
|
2016
|
|
2015
|
|
Variance
|
|
Percent Change
|
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|||||||
NGLs:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
8,958
|
|
|
7,235
|
|
|
1,723
|
|
|
23.8
|
%
|
|||
Sales Volume (Mbbls)
|
|
1,493
|
|
|
1,206
|
|
|
287
|
|
|
23.8
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
12.84
|
|
|
$
|
12.48
|
|
|
$
|
0.36
|
|
|
2.9
|
%
|
Gross Revenue
|
|
$
|
19,207
|
|
|
$
|
15,021
|
|
|
$
|
4,186
|
|
|
27.9
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
114
|
|
|
162
|
|
|
(48
|
)
|
|
(29.6
|
)%
|
|||
Sales Volume (Mbbls)
|
|
19
|
|
|
27
|
|
|
(8
|
)
|
|
(29.6
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
33.72
|
|
|
$
|
46.14
|
|
|
$
|
(12.42
|
)
|
|
(26.9
|
)%
|
Gross Revenue
|
|
$
|
643
|
|
|
$
|
1,243
|
|
|
$
|
(600
|
)
|
|
(48.3
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
1,478
|
|
|
1,668
|
|
|
(190
|
)
|
|
(11.4
|
)%
|
|||
Sales Volume (Mbbls)
|
|
246
|
|
|
278
|
|
|
(32
|
)
|
|
(11.5
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
31.68
|
|
|
$
|
31.26
|
|
|
$
|
0.42
|
|
|
1.3
|
%
|
Gross Revenue
|
|
$
|
7,803
|
|
|
$
|
8,690
|
|
|
$
|
(887
|
)
|
|
(10.2
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
88,718
|
|
|
66,426
|
|
|
22,292
|
|
|
33.6
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
1.58
|
|
|
$
|
2.03
|
|
|
$
|
(0.45
|
)
|
|
(22.2
|
)%
|
Gross Revenue
|
|
$
|
140,280
|
|
|
$
|
135,048
|
|
|
$
|
5,232
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Hedging Impact ($/Mcf)
|
|
$
|
0.91
|
|
|
$
|
0.64
|
|
|
$
|
0.27
|
|
|
42.2
|
%
|
Gain on Commodity Derivative Instruments - Cash Settlement
|
|
$
|
80,334
|
|
|
$
|
42,257
|
|
|
$
|
38,077
|
|
|
90.1
|
%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price (per Mcfe)
|
$
|
2.50
|
|
|
$
|
2.68
|
|
|
$
|
(0.18
|
)
|
|
(6.7
|
)%
|
Average Costs (per Mcfe)
|
2.27
|
|
|
2.76
|
|
|
0.49
|
|
|
17.8
|
%
|
|||
Margin
|
$
|
0.23
|
|
|
$
|
(0.08
|
)
|
|
$
|
0.31
|
|
|
387.5
|
%
|
•
|
The improvement in unit costs is primarily due to the continuing shift towards lower cost Marcellus and Utica Shale production and the
31.5%
increase in total volumes sold in the period-to-period comparison. Marcellus production made up
53.5%
of natural gas and liquid sales volumes for the
three months
ended
June 30, 2016
, compared to
52.9%
for the three months ended
June 30, 2015
. Utica production made up
23.5%
of natural gas and liquid sales volumes in the
three months
ended
June 30, 2016
, compared to
14.1%
in the three months ended
June 30, 2015
.
|
•
|
Gathering expenses decreased on a per unit basis in the period-to-period comparison due to the overall increase in natural gas sales volumes. The decrease in unit costs was partially offset by an increase in total dollars related to an increase in utilized firm transportation costs, increased processing fees associated with NGLs, and an increase in CONE gathering expense directly related to the increase in Marcellus production. See Note 18 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Depreciation, depletion and amortization decreased on a per unit basis primarily due to the adjustment to our shallow oil and gas rates following impairment in the carrying value that was recognized in the second quarter of 2015, as well as the increase in natural gas sales volumes from our lower cost Marcellus and Utica production. The decrease was offset, in part, by an overall increase in rates due to the reduction in the 2015 year-end reserves.
|
•
|
Lifting costs also decreased on a per unit basis in the period-to-period comparison due to a decrease in well tending costs, employee related costs and due to the overall increase in natural gas sales volumes. The decrease in unit costs was partially offset by an increase in salt water disposal costs.
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price per ton sold
|
$
|
40.61
|
|
|
$
|
56.21
|
|
|
$
|
(15.60
|
)
|
|
(27.8
|
)%
|
Average Cost of Goods Sold per ton
|
34.46
|
|
|
44.15
|
|
|
9.69
|
|
|
21.9
|
%
|
|||
Margin
|
$
|
6.15
|
|
|
$
|
12.06
|
|
|
$
|
(5.91
|
)
|
|
(49.0
|
)%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Employee Wages and Related Expenses
|
$
|
11
|
|
|
$
|
15
|
|
|
$
|
(4
|
)
|
|
(26.7
|
)%
|
Consulting and Professional Services
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
%
|
|||
Rent
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Advertising and Promotion
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Miscellaneous
|
3
|
|
|
4
|
|
|
(1
|
)
|
|
(25.0
|
)%
|
|||
Total Company Selling, General and Administrative Expense
|
$
|
22
|
|
|
$
|
27
|
|
|
$
|
(5
|
)
|
|
(18.5
|
)%
|
•
|
Employee Wages and Related Expenses decreased
$4 million
primarily due to the Company reorganization that occurred during the second half of 2015 and the first quarter of 2016.
|
•
|
Miscellaneous items decreased
$1 million
in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Three Months Ended
|
|
Difference to Three Months Ended
|
||||||||||||||||||||||||||||||||||||
|
|
June 30, 2016
|
|
June 30, 2015
|
||||||||||||||||||||||||||||||||||||
(in millions)
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total E&P
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
E&P
|
||||||||||||||||||||
Natural Gas, NGLs and Oil Sales
|
|
84
|
|
|
41
|
|
|
34
|
|
|
9
|
|
|
168
|
|
|
2
|
|
|
23
|
|
|
(13
|
)
|
|
(4
|
)
|
|
8
|
|
||||||||||
Gain (Loss) on Commodity Derivative Instruments
|
|
49
|
|
|
10
|
|
|
16
|
|
|
(274
|
)
|
|
(199
|
)
|
|
31
|
|
|
10
|
|
|
(3
|
)
|
|
(254
|
)
|
|
(216
|
)
|
||||||||||
Purchased Gas Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||||||
Miscellaneous Other Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Gain on Sale of Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total Revenue and Other Income
|
|
133
|
|
|
51
|
|
|
50
|
|
|
(242
|
)
|
|
(8
|
)
|
|
33
|
|
|
33
|
|
|
(16
|
)
|
|
(252
|
)
|
|
(202
|
)
|
||||||||||
Lease Operating Expense
|
|
10
|
|
|
5
|
|
|
4
|
|
|
5
|
|
|
24
|
|
|
(1
|
)
|
|
1
|
|
|
(4
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||||||||
Production, Ad Valorem, and Other Fees
|
|
3
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
6
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||||
Transportation, Gathering and Compression
|
|
54
|
|
|
13
|
|
|
18
|
|
|
6
|
|
|
91
|
|
|
6
|
|
|
4
|
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
||||||||||
Depreciation, Depletion and Amortization
|
|
53
|
|
|
22
|
|
|
22
|
|
|
8
|
|
|
105
|
|
|
14
|
|
|
10
|
|
|
—
|
|
|
(9
|
)
|
|
15
|
|
||||||||||
Selling, General, and Administrative Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||||||
Purchased Gas Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||||||||
Exploration and Production Related Other Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Other Corporate Expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(819
|
)
|
|
(819
|
)
|
||||||||||
Total Exploration and Production Costs
|
|
120
|
|
|
41
|
|
|
45
|
|
|
79
|
|
|
285
|
|
|
18
|
|
|
16
|
|
|
(7
|
)
|
|
(826
|
)
|
|
(799
|
)
|
||||||||||
Interest Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total E&P Division Costs
|
|
120
|
|
|
41
|
|
|
45
|
|
|
80
|
|
|
286
|
|
|
18
|
|
|
16
|
|
|
(7
|
)
|
|
(826
|
)
|
|
(799
|
)
|
||||||||||
Earnings (Loss) Before Income Tax
|
|
$
|
13
|
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
(322
|
)
|
|
$
|
(294
|
)
|
|
$
|
15
|
|
|
$
|
17
|
|
|
$
|
(9
|
)
|
|
$
|
574
|
|
|
$
|
597
|
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
47.3
|
|
|
34.5
|
|
|
12.8
|
|
|
37.1
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
5.2
|
|
|
4.6
|
|
|
0.6
|
|
|
13.0
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.6
|
|
|
0.8
|
|
|
(0.2
|
)
|
|
(25.0
|
)%
|
|||
Total Marcellus Sales Volumes (Bcfe)*
|
53.1
|
|
|
39.9
|
|
|
13.2
|
|
|
33.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.50
|
|
|
$
|
1.88
|
|
|
$
|
(0.38
|
)
|
|
(20.2
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
1.03
|
|
|
$
|
0.53
|
|
|
$
|
0.50
|
|
|
94.3
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
1.84
|
|
|
$
|
2.65
|
|
|
$
|
(0.81
|
)
|
|
(30.6
|
)%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
5.03
|
|
|
$
|
5.37
|
|
|
$
|
(0.34
|
)
|
|
(6.3
|
)%
|
|
|
|
|
|
|
|
|
|
||||||
Total Average Marcellus Sales Price (per Mcfe)
|
$
|
2.50
|
|
|
$
|
2.49
|
|
|
$
|
0.01
|
|
|
0.4
|
%
|
Average Marcellus Lease Operating Expenses (per Mcfe)
|
0.19
|
|
|
0.28
|
|
|
(0.09
|
)
|
|
(32.1
|
)%
|
|||
Average Marcellus Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.05
|
|
|
0.10
|
|
|
(0.05
|
)
|
|
(50.0
|
)%
|
|||
Average Marcellus Transportation, Gathering and Compression costs (per Mcfe)
|
1.03
|
|
|
1.20
|
|
|
(0.17
|
)
|
|
(14.2
|
)%
|
|||
Average Marcellus Depreciation, Depletion and Amortization costs (per Mcfe)
|
0.98
|
|
|
0.95
|
|
|
0.03
|
|
|
3.2
|
%
|
|||
Total Average Marcellus Costs (per Mcfe)
|
$
|
2.25
|
|
|
$
|
2.53
|
|
|
$
|
(0.28
|
)
|
|
(11.1
|
)%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
0.25
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.29
|
|
|
725.0
|
%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Utica Gas Sales Volumes (Bcf)
|
18.7
|
|
|
7.2
|
|
|
11.5
|
|
|
159.7
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
3.7
|
|
|
2.7
|
|
|
1.0
|
|
|
37.0
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.9
|
|
|
0.8
|
|
|
0.1
|
|
|
12.5
|
%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
23.3
|
|
|
10.7
|
|
|
12.6
|
|
|
117.8
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.43
|
|
|
$
|
1.45
|
|
|
$
|
(0.02
|
)
|
|
(1.4
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.54
|
|
|
$
|
—
|
|
|
$
|
0.54
|
|
|
100.0
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
2.57
|
|
|
$
|
1.10
|
|
|
$
|
1.47
|
|
|
133.6
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
5.47
|
|
|
$
|
5.05
|
|
|
$
|
0.42
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica Sales Price (per Mcfe)
|
$
|
2.19
|
|
|
$
|
1.66
|
|
|
$
|
0.53
|
|
|
31.9
|
%
|
Average Utica Lease Operating Expenses (per Mcfe)
|
0.22
|
|
|
0.37
|
|
|
(0.15
|
)
|
|
(40.5
|
)%
|
|||
Average Utica Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.06
|
|
|
—
|
|
|
0.06
|
|
|
100.0
|
%
|
|||
Average Utica Transportation, Gathering and Compression Costs (per Mcfe)
|
0.55
|
|
|
0.85
|
|
|
(0.30
|
)
|
|
(35.3
|
)%
|
|||
Average Utica Depreciation, Depletion and Amortization Costs (per Mcfe)
|
0.93
|
|
|
1.07
|
|
|
(0.14
|
)
|
|
(13.1
|
)%
|
|||
Total Average Utica Costs (per Mcfe)
|
$
|
1.76
|
|
|
$
|
2.29
|
|
|
$
|
(0.53
|
)
|
|
(23.1
|
)%
|
Average Margin for Utica (per Mcfe)
|
$
|
0.43
|
|
|
$
|
(0.63
|
)
|
|
$
|
1.06
|
|
|
168.3
|
%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
17.1
|
|
|
18.8
|
|
|
(1.7
|
)
|
|
(9.0
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.97
|
|
|
$
|
2.50
|
|
|
$
|
(0.53
|
)
|
|
(21.2
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.97
|
|
|
$
|
1.00
|
|
|
$
|
(0.03
|
)
|
|
(3.0
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM Sales Price (per Mcf)
|
$
|
2.93
|
|
|
$
|
3.49
|
|
|
$
|
(0.56
|
)
|
|
(16.0
|
)%
|
Average CBM Lease Operating Expenses (per Mcf)
|
0.26
|
|
|
0.45
|
|
|
(0.19
|
)
|
|
(42.2
|
)%
|
|||
Average CBM Production, Ad Valorem, and Other Fees (per Mcf)
|
0.07
|
|
|
0.10
|
|
|
(0.03
|
)
|
|
(30.0
|
)%
|
|||
Average CBM Transportation, Gathering and Compression Costs (per Mcf)
|
1.04
|
|
|
1.08
|
|
|
(0.04
|
)
|
|
(3.7
|
)%
|
|||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf)
|
1.25
|
|
|
1.12
|
|
|
0.13
|
|
|
11.6
|
%
|
|||
Total Average CBM Costs (per Mcf)
|
$
|
2.62
|
|
|
$
|
2.75
|
|
|
$
|
(0.13
|
)
|
|
(4.7
|
)%
|
Average Margin for CBM (per Mcf)
|
$
|
0.31
|
|
|
$
|
0.74
|
|
|
$
|
(0.43
|
)
|
|
(58.1
|
)%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
5.7
|
|
|
6.0
|
|
|
(0.3
|
)
|
|
(5.0
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|||
Total Other Sales Volumes (Bcfe)*
|
5.8
|
|
|
6.1
|
|
|
(0.3
|
)
|
|
(4.9
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.58
|
|
|
$
|
2.18
|
|
|
$
|
(0.60
|
)
|
|
(27.5
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.87
|
|
|
$
|
0.88
|
|
|
$
|
(0.01
|
)
|
|
(1.1
|
)%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
5.68
|
|
|
$
|
7.89
|
|
|
$
|
(2.21
|
)
|
|
(28.0
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other Sales Price (per Mcfe)
|
$
|
2.52
|
|
|
$
|
3.17
|
|
|
$
|
(0.65
|
)
|
|
(20.5
|
)%
|
Average Other Lease Operating Expenses (per Mcfe)
|
0.68
|
|
|
0.98
|
|
|
(0.30
|
)
|
|
(30.6
|
)%
|
|||
Average Other Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.13
|
|
|
0.15
|
|
|
(0.02
|
)
|
|
(13.3
|
)%
|
|||
Average Other Transportation, Gathering and Compression Costs (per Mcfe)
|
1.05
|
|
|
1.00
|
|
|
0.05
|
|
|
5.0
|
%
|
|||
Average Other Depreciation, Depletion and Amortization Costs (per Mcfe)
|
1.64
|
|
|
3.02
|
|
|
(1.38
|
)
|
|
(45.7
|
)%
|
|||
Total Average Other Costs (per Mcfe)
|
$
|
3.50
|
|
|
$
|
5.15
|
|
|
$
|
(1.65
|
)
|
|
(32.0
|
)%
|
Average Margin for Other (per Mcfe)
|
$
|
(0.98
|
)
|
|
$
|
(1.98
|
)
|
|
$
|
1.00
|
|
|
50.5
|
%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Sales Volumes (in billion cubic feet)
|
5.3
|
|
|
0.7
|
|
|
4.6
|
|
|
657.1
|
%
|
|||
Average Sales Price Per thousand cubic feet
|
$
|
1.50
|
|
|
$
|
2.16
|
|
|
$
|
(0.66
|
)
|
|
(30.6
|
)%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Gathering Revenue
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
200.0
|
%
|
Equity in Earnings of Affiliates - CONE
|
9
|
|
|
10
|
|
|
(1
|
)
|
|
(10.0
|
)%
|
|||
Right of Way Sales
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|||
Other
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Total Miscellaneous Other Income
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
—
|
%
|
•
|
Gathering revenue primarily relates to the release (sale) of unutilized firm transportation capacity when possible and when beneficial in order to minimize unutilized firm transportation expense. Gathering revenue
increased
by
$2
million in the period-to-period comparison, due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Equity in Earnings of Affiliates - CONE
decreased
$1
million due to a decrease in earnings from CONE Midstream Partners, LP. and CONE Gathering, LLC. See Note 18 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Right of Way Sales totaled
$1
million in the
three months
ended
June 30, 2015
. No material sales occurred in the current period.
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Volumes (in billion cubic feet)
|
5.3
|
|
|
0.7
|
|
|
4.6
|
|
|
657.1
|
%
|
|||
Average Cost Per thousand cubic feet sold
|
$
|
1.68
|
|
|
$
|
1.51
|
|
|
$
|
0.17
|
|
|
11.3
|
%
|
|
For the Three Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Land Rentals
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
100.0
|
%
|
Lease Expiration Costs
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
100.0
|
%
|
|||
Total Exploration and Other Costs
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
50.0
|
%
|
•
|
Total exploration and other costs increased $
1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Impairment of Exploration and Production Properties
|
$
|
—
|
|
|
$
|
829
|
|
|
$
|
(829
|
)
|
|
(100.0
|
)%
|
Short-Term Incentive Compensation
|
2
|
|
|
4
|
|
|
(2
|
)
|
|
(50.0
|
)%
|
|||
Unutilized Firm Transportation and Processing Fees
|
8
|
|
|
7
|
|
|
1
|
|
|
14.3
|
%
|
|||
Stock-Based Compensation
|
7
|
|
|
4
|
|
|
3
|
|
|
75.0
|
%
|
|||
Idle Rig Fees
|
10
|
|
|
3
|
|
|
7
|
|
|
233.3
|
%
|
|||
Other
|
4
|
|
|
3
|
|
|
1
|
|
|
33.3
|
%
|
|||
Total Other Corporate Expenses
|
$
|
31
|
|
|
$
|
850
|
|
|
$
|
(819
|
)
|
|
(96.4
|
)%
|
•
|
Impairment of Exploration and Production properties primarily related to the write down of the Company's shallow oil and gas asset values in June 2015. See Note 10 - Property, Plant, And Equipment, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for more information. No such impairment was recorded in the current period.
|
•
|
Short-term incentive compensation expense
decrease
d
$2
million in the period-to-period comparison due to decreased payouts in the current period.
|
•
|
Unutilized firm transportation costs represent pipeline transportation capacity that the E&P division has obtained to enable gas production to flow uninterrupted as sales volumes increase, as well as additional processing capacity for natural gas liquids. Unutilized firm transportation
increase
d
$1
million in the period-to-period comparison due to an increase in overall capacity. The Company attempts to minimize this expense by releasing (selling) unutilized firm transportation capacity to other parties when possible and when beneficial. During the three months ended June 30, 2016 and 2015 the Company recognized approximately $2 million and $1 million, respectively, of revenue in connection with such releases. This revenue is included in Miscellaneous other income (Gathering Revenue) of the Other Gas Segment.
|
•
|
Stock-based compensation
increase
d
$3
million in the period-to-period comparison primarily due to additional non-cash amortization expense and accelerated non-cash amortization recorded in the current period for employees who received awards under the Performance Share Unit (PSU) program.
|
•
|
Idle rig fees are fees related to the temporary idling of some of the Company's natural gas rigs. The total idle rig expense incurred by the Company has increased by
$7
million for the current quarter as compared to the prior year quarter.
|
•
|
Other corporate related expenses
increase
d
$1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended
|
|
Difference to Three Months Ended
|
||||||||||||||||||||
|
June 30, 2016
|
|
June 30, 2015
|
||||||||||||||||||||
(in millions)
|
Pennsylvania Operations
|
|
Other
Coal
|
|
Total
Coal
|
|
Pennsylvania Operations
|
|
Other
Coal
|
|
Total
Coal
|
||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Outside Sales
|
$
|
251
|
|
|
$
|
—
|
|
|
$
|
251
|
|
|
$
|
(68
|
)
|
|
$
|
—
|
|
|
$
|
(68
|
)
|
Other Outside Sales
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Freight Revenue
|
11
|
|
|
—
|
|
|
11
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Miscellaneous Other Income
|
7
|
|
|
14
|
|
|
21
|
|
|
7
|
|
|
(7
|
)
|
|
—
|
|
||||||
Gain on Sale of Assets
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Total Revenue and Other Income
|
269
|
|
|
26
|
|
|
295
|
|
|
(53
|
)
|
|
(3
|
)
|
|
(56
|
)
|
||||||
Operating Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Costs
|
174
|
|
|
—
|
|
|
174
|
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
||||||
Depreciation, Depletion and Amortization
|
39
|
|
|
—
|
|
|
39
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Total Operating Costs and Expenses
|
213
|
|
|
—
|
|
|
213
|
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
||||||
Other Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Costs
|
11
|
|
|
34
|
|
|
45
|
|
|
23
|
|
|
17
|
|
|
40
|
|
||||||
Depreciation, Depletion and Amortization
|
3
|
|
|
(12
|
)
|
|
(9
|
)
|
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
||||||
Total Other Costs and Expenses
|
14
|
|
|
22
|
|
|
36
|
|
|
23
|
|
|
4
|
|
|
27
|
|
||||||
Freight Expense
|
11
|
|
|
—
|
|
|
11
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Selling, General and Administrative Costs
|
5
|
|
|
1
|
|
|
6
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
||||||
Other Corporate Expenses
|
2
|
|
|
2
|
|
|
4
|
|
|
(7
|
)
|
|
1
|
|
|
(6
|
)
|
||||||
Total Coal Costs
|
245
|
|
|
25
|
|
|
270
|
|
|
(16
|
)
|
|
6
|
|
|
(10
|
)
|
||||||
Interest Expense
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Total Coal Division Expense
|
247
|
|
|
25
|
|
|
272
|
|
|
(14
|
)
|
|
6
|
|
|
(8
|
)
|
||||||
Earnings (Loss) Before Income Taxes
|
$
|
22
|
|
|
$
|
1
|
|
|
$
|
23
|
|
|
$
|
(39
|
)
|
|
$
|
(9
|
)
|
|
$
|
(48
|
)
|
|
For the Three Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Operations Tons Sold (in millions)
|
6.2
|
|
|
5.7
|
|
|
0.5
|
|
|
8.8
|
%
|
|||
Average Sales Price Per PA Operations Ton Sold
|
$
|
40.61
|
|
|
$
|
56.21
|
|
|
$
|
(15.60
|
)
|
|
(27.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
27.96
|
|
|
$
|
36.60
|
|
|
$
|
(8.64
|
)
|
|
(23.6
|
)%
|
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
6.50
|
|
|
7.55
|
|
|
(1.05
|
)
|
|
(13.9
|
)%
|
|||
Total Costs Per PA Operations Ton Sold
|
$
|
34.46
|
|
|
$
|
44.15
|
|
|
$
|
(9.69
|
)
|
|
(21.9
|
)%
|
Average Margin Per PA Operations Ton Sold
|
$
|
6.15
|
|
|
$
|
12.06
|
|
|
$
|
(5.91
|
)
|
|
(49.0
|
)%
|
|
|
For the Three Months Ended June 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
OPEB Plan Changes
|
|
$
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
21
|
|
Idle Mine Costs
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Litigation Expense
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Coal Reserve Holding Costs
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Amortization of Financing Charges
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
|||
Other
|
|
5
|
|
|
2
|
|
|
3
|
|
|||
Other Costs and Expenses
|
|
$
|
11
|
|
|
$
|
(12
|
)
|
|
$
|
23
|
|
•
|
Income of
$21 million
related to OPEB plan changes made in May 2015 for retired employees. Refer to the discussion of total Company long-term liabilities contained in the section "Net Loss Attributable to CONSOL Energy Shareholders" of this quarterly report for more information. No such transactions occurred in the current period.
|
•
|
Idle Mine Costs
increased
$3 million
, due to the temporarily idling of one of the longwalls for approximately 90 days to optimize operating schedules.
|
•
|
Approximately
$2 million
of costs were incurred during the three months ended
June 30, 2016
related to the proposed consent decree with respect to the Bailey mine complex. See Note 13 - Commitments and Contingencies of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Coal Reserve Holding Costs
increased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Accelerated amortization of financing charges totaling
$7 million
related to a backstop loan were incurred in the 2015 period. No such transactions occurred in the current period.
|
•
|
Other
increased
$3 million
in the period-to-period comparison due to an increase in 401(k) discretionary contributions, as well as various other transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Three Months Ended June 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Royalty Income
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
Equity in Earnings of Affiliates
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Right of Way Sales
|
|
2
|
|
|
4
|
|
|
(2
|
)
|
|||
Rental Income
|
|
9
|
|
|
9
|
|
|
—
|
|
|||
Other Income
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Total Miscellaneous Other Income
|
|
$
|
14
|
|
|
$
|
21
|
|
|
$
|
(7
|
)
|
•
|
Royalty Income
decreased
$2 million
primarily due to the overall decrease in domestic coal pricing.
|
•
|
Equity in Earnings of Affiliates
decrease
d
$2 million
due to the sale of the Company's 49% interest in Western Allegheny Energy in September 2015.
|
•
|
Right of way sales
decrease
d
$2 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 Three Months Ended June 30,
|
||||||||||
|
|
2016
|
|
2015
|
|
Variance
|
||||||
OPEB Plan Changes
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
20
|
|
Closed and Idle Mines
|
|
2
|
|
|
2
|
|
|
—
|
|
|||
Lease Rental Expense
|
|
7
|
|
|
7
|
|
|
—
|
|
|||
Coal Terminal Operations
|
|
4
|
|
|
5
|
|
|
(1
|
)
|
|||
Coal Reserve Holding Costs
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
UMWA OPEB Expense
|
|
11
|
|
|
12
|
|
|
(1
|
)
|
|||
Other
|
|
9
|
|
|
9
|
|
|
—
|
|
|||
Total Other Costs and Expenses
|
|
$
|
34
|
|
|
$
|
17
|
|
|
$
|
17
|
|
•
|
Represents income of
$20 million
related to OPEB plan changes was the result of modifications made to the OPEB plan in May 2015 for retired employees. Refer to the discussion of total Company long-term liabilities contained in the section "Net Loss Attributable to CONSOL Energy Shareholders" of this quarterly report for more information. No such transactions occurred in the current period.
|
•
|
Coal Terminal Operations costs
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Coal Reserve Holding Costs
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
UMWA OPEB Expense
decreased
$1 million
primarily due to a decrease in interest costs.
|
|
For the Three Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Miscellaneous Operating Expense
|
$
|
17
|
|
|
$
|
14
|
|
|
$
|
3
|
|
|
21.4
|
%
|
Interest Expense
|
44
|
|
|
45
|
|
|
(1
|
)
|
|
(2.2
|
)%
|
|||
Total Other Costs
|
61
|
|
|
59
|
|
|
2
|
|
|
3.4
|
%
|
|||
Loss Before Income Tax
|
(61
|
)
|
|
(59
|
)
|
|
(2
|
)
|
|
3.4
|
%
|
|||
Income Tax Benefit
|
(100
|
)
|
|
(302
|
)
|
|
202
|
|
|
(66.9
|
)%
|
|||
Net Income
|
$
|
39
|
|
|
$
|
243
|
|
|
$
|
(204
|
)
|
|
(84.0
|
)%
|
|
|
For the Three Months Ended June 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Pension Settlement
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
14
|
|
Bank Fees
|
|
4
|
|
|
6
|
|
|
(2
|
)
|
|||
Transaction Fees
|
|
—
|
|
|
5
|
|
|
(5
|
)
|
|||
Pension Expense
|
|
(3
|
)
|
|
3
|
|
|
(6
|
)
|
|||
Other
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Miscellaneous Operating Expense
|
|
$
|
17
|
|
|
$
|
14
|
|
|
$
|
3
|
|
•
|
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. Settlement accounting was triggered in the three months ended
June 30, 2016
, primarily as a result of the sale of the Buchanan Mine in the first quarter of 2016. See Note 5 - Components of Pension and OPEB Plans Net Periodic Benefit Costs in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional detail. No such transactions occurred in the prior period.
|
•
|
Bank Fees decreased
$2 million
in the period-to-period comparison due to various items that occurred throughout both periods, none of which were individually material.
|
•
|
Transaction fees were
$5 million
for the three months ended
June 30, 2015
related to various corporate initiatives including the CNXC MLP. No such transactions occurred in the current period.
|
•
|
Actuarially-calculated amortization decreased
$6
million in the period-to-period comparison due to modifications made to the pension plan in May 2015. See Note 16 - Pension and Other Postretirement Benefits Plans in the Notes to the Audited Financial Statements in our December 31, 2015 Form 10-K for additional information.
|
•
|
Other increased
$2
million in the period-to-period comparison due to various items that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Loss Before Income Tax Excluding Noncontrolling Interest
|
$
|
(335
|
)
|
|
$
|
(879
|
)
|
|
$
|
544
|
|
|
(61.9
|
)%
|
Income Tax Benefit
|
$
|
(100
|
)
|
|
$
|
(302
|
)
|
|
$
|
202
|
|
|
(66.9
|
)%
|
Effective Income Tax Rate
|
30.0
|
%
|
|
34.3
|
%
|
|
(4.3
|
)%
|
|
|
|
For the Six Months Ended June 30,
|
||||||||||
(Dollars in thousands)
|
2016
|
|
2015
|
|
Variance
|
||||||
Loss from Continuing Operations
|
$
|
(275,721
|
)
|
|
$
|
(524,027
|
)
|
|
$
|
248,306
|
|
Loss Income from Discontinued Operations
|
(289,391
|
)
|
|
(244
|
)
|
|
(289,147
|
)
|
|||
Net Loss
|
$
|
(565,112
|
)
|
|
$
|
(524,271
|
)
|
|
$
|
(40,841
|
)
|
Less: Net Income Attributable to Noncontrolling Interest
|
2,293
|
|
|
—
|
|
|
2,293
|
|
|||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(567,405
|
)
|
|
$
|
(524,271
|
)
|
|
$
|
(43,134
|
)
|
|
|
For the Six Months Ended June 30,
|
|||||||||||||
in thousands (unless noted)
|
|
2016
|
|
2015
|
|
Variance
|
|
Percent Change
|
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|||||||
NGLs:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
18,679
|
|
|
13,759
|
|
|
4,920
|
|
|
35.8
|
%
|
|||
Sales Volume (Mbbls)
|
|
3,113
|
|
|
2,293
|
|
|
820
|
|
|
35.8
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
12.54
|
|
|
$
|
16.20
|
|
|
$
|
(3.66
|
)
|
|
(22.6
|
)%
|
Gross Revenue
|
|
$
|
39,113
|
|
|
$
|
37,193
|
|
|
$
|
1,920
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
214
|
|
|
306
|
|
|
(92
|
)
|
|
(30.1
|
)%
|
|||
Sales Volume (Mbbls)
|
|
36
|
|
|
51
|
|
|
(15
|
)
|
|
(29.4
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
32.40
|
|
|
$
|
46.92
|
|
|
$
|
(14.52
|
)
|
|
(30.9
|
)%
|
Gross Revenue
|
|
$
|
1,155
|
|
|
$
|
2,392
|
|
|
$
|
(1,237
|
)
|
|
(51.7
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
3,058
|
|
|
3,160
|
|
|
(102
|
)
|
|
(3.2
|
)%
|
|||
Sales Volume (Mbbls)
|
|
510
|
|
|
527
|
|
|
(17
|
)
|
|
(3.2
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
22.86
|
|
|
$
|
26.34
|
|
|
$
|
(3.48
|
)
|
|
(13.2
|
)%
|
Gross Revenue
|
|
$
|
11,664
|
|
|
$
|
13,870
|
|
|
$
|
(2,206
|
)
|
|
(15.9
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
174,782
|
|
|
129,882
|
|
|
44,900
|
|
|
34.6
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
1.70
|
|
|
$
|
2.55
|
|
|
$
|
(0.85
|
)
|
|
(33.3
|
)%
|
Gross Revenue
|
|
$
|
297,679
|
|
|
$
|
331,533
|
|
|
$
|
(33,854
|
)
|
|
(10.2
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Hedging Impact ($/Mcf)
|
|
$
|
0.94
|
|
|
$
|
0.56
|
|
|
$
|
0.38
|
|
|
67.9
|
%
|
Gain on Commodity Derivative Instruments - Cash Settlement
|
|
$
|
164,666
|
|
|
$
|
72,399
|
|
|
$
|
92,267
|
|
|
127.4
|
%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price (per Mcfe)
|
$
|
2.61
|
|
|
$
|
3.11
|
|
|
$
|
(0.50
|
)
|
|
(16.1
|
)%
|
Average Costs (per Mcfe)
|
2.34
|
|
|
2.83
|
|
|
0.49
|
|
|
17.3
|
%
|
|||
Margin
|
$
|
0.27
|
|
|
$
|
0.28
|
|
|
$
|
(0.01
|
)
|
|
(3.6
|
)%
|
•
|
The improvement in unit costs is primarily due to the continuing shift towards lower cost Marcellus and Utica Shale production and the
33.7%
increase in total volumes sold in the period-to-period comparison. Marcellus production made up
53%
of natural gas and liquid sales volumes for the
six months
ended
June 30, 2016
, compared to
52.2%
for the
six months
months ended
June 30, 2015
. Utica production made up
23.5%
of natural gas and liquid sales volumes in the
six months
ended
June 30, 2016
, compared to
13.7%
in the
six months
ended
June 30, 2015
.
|
•
|
Gathering expenses decreased on a per unit basis in the period-to-period comparison due to the overall increase in natural gas sales volumes. The decrease in unit costs was partially offset by an increase in total dollars related to an increase in utilized firm transportation costs, increased processing fees associated with NGLs, and an increase in CONE gathering expense directly related to the increase in Marcellus production. See Note 18 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Depreciation, depletion and amortization decreased on a per unit basis primarily due to the adjustment to our shallow oil and gas rates following impairment in the carrying value that was recognized in the second quarter of 2015, as well as the increase in natural gas sales volumes from our lower cost Marcellus and Utica production. The decrease was offset, in part, by an overall increase in rates due to the reduction in the 2015 year-end reserves.
|
•
|
Lifting costs also decreased on a per unit basis in the period-to-period comparison due to a decrease in well tending costs, employee related costs and due to the overall increase in natural gas sales volumes. The decrease in unit costs was partially offset by an increase in salt water disposal costs.
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Average Sales Price per ton sold
|
$
|
41.70
|
|
|
$
|
57.61
|
|
|
$
|
(15.91
|
)
|
|
(27.6
|
)%
|
Average Cost of Goods Sold per ton
|
33.86
|
|
|
43.33
|
|
|
9.47
|
|
|
21.9
|
%
|
|||
Margin
|
$
|
7.84
|
|
|
$
|
14.28
|
|
|
$
|
(6.44
|
)
|
|
(45.1
|
)%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Employee Wages and Related Expenses
|
$
|
22
|
|
|
$
|
32
|
|
|
$
|
(10
|
)
|
|
(31.3
|
)%
|
Consulting and Professional Services
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
%
|
|||
Rent
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
%
|
|||
Advertising and Promotion
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|||
Miscellaneous
|
8
|
|
|
10
|
|
|
(2
|
)
|
|
(20.0
|
)%
|
|||
Total Company Selling, General and Administrative Expense
|
$
|
44
|
|
|
$
|
56
|
|
|
$
|
(12
|
)
|
|
(21.4
|
)%
|
•
|
Employee Wages and Related Expenses decreased
$10 million
primarily due to the Company reorganization that occurred in the second half of 2015 and the first quarter of 2016.
|
•
|
Miscellaneous items decreased
$2 million
in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Six Months Ended
|
|
Difference to Six Months Ended
|
||||||||||||||||||||||||||||||||||||
|
|
June 30, 2016
|
|
June 30, 2015
|
||||||||||||||||||||||||||||||||||||
(in millions)
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total E&P
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
E&P
|
||||||||||||||||||||
Natural Gas, NGLs and Oil Sales
|
|
180
|
|
|
75
|
|
|
76
|
|
|
18
|
|
|
349
|
|
|
(28
|
)
|
|
39
|
|
|
(33
|
)
|
|
(14
|
)
|
|
(36
|
)
|
||||||||||
Gain (Loss) on Commodity Derivative Instruments
|
|
97
|
|
|
20
|
|
|
36
|
|
|
(297
|
)
|
|
(144
|
)
|
|
66
|
|
|
20
|
|
|
4
|
|
|
(341
|
)
|
|
(251
|
)
|
||||||||||
Purchased Gas Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||||||||
Miscellaneous Other Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
||||||||||
(Loss) Gain on Sale of Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||||
Total Revenue and Other Income
|
|
277
|
|
|
95
|
|
|
112
|
|
|
(225
|
)
|
|
259
|
|
|
38
|
|
|
59
|
|
|
(29
|
)
|
|
(337
|
)
|
|
(269
|
)
|
||||||||||
Lease Operating Expense
|
|
20
|
|
|
13
|
|
|
11
|
|
|
7
|
|
|
51
|
|
|
(3
|
)
|
|
2
|
|
|
(8
|
)
|
|
(7
|
)
|
|
(16
|
)
|
||||||||||
Production, Ad Valorem, and Other Fees
|
|
8
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
15
|
|
|
(1
|
)
|
|
2
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||
Transportation, Gathering and Compression
|
|
114
|
|
|
23
|
|
|
36
|
|
|
12
|
|
|
185
|
|
|
26
|
|
|
9
|
|
|
(7
|
)
|
|
(2
|
)
|
|
26
|
|
||||||||||
Depreciation, Depletion and Amortization
|
|
102
|
|
|
43
|
|
|
44
|
|
|
22
|
|
|
211
|
|
|
29
|
|
|
22
|
|
|
2
|
|
|
(19
|
)
|
|
34
|
|
||||||||||
Selling, General, and Administrative Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||||||
Purchased Gas Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
||||||||||
Exploration and Production Related Other Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Other Corporate Expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(811
|
)
|
|
(811
|
)
|
||||||||||
Total Exploration and Production Costs
|
|
244
|
|
|
82
|
|
|
94
|
|
|
156
|
|
|
576
|
|
|
51
|
|
|
35
|
|
|
(14
|
)
|
|
(835
|
)
|
|
(763
|
)
|
||||||||||
Interest Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||
Total E&P Division Costs
|
|
244
|
|
|
82
|
|
|
94
|
|
|
157
|
|
|
577
|
|
|
51
|
|
|
35
|
|
|
(14
|
)
|
|
(838
|
)
|
|
(766
|
)
|
||||||||||
Earnings (Loss) Before Income Tax
|
|
$
|
33
|
|
|
$
|
13
|
|
|
$
|
18
|
|
|
$
|
(382
|
)
|
|
$
|
(318
|
)
|
|
$
|
(13
|
)
|
|
$
|
24
|
|
|
$
|
(15
|
)
|
|
$
|
501
|
|
|
$
|
497
|
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
92.3
|
|
|
66.6
|
|
|
25.7
|
|
|
38.6
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
10.5
|
|
|
8.7
|
|
|
1.8
|
|
|
20.7
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
%
|
|||
Total Marcellus Sales Volumes (Bcfe)*
|
104.2
|
|
|
76.7
|
|
|
27.5
|
|
|
35.9
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.66
|
|
|
$
|
2.57
|
|
|
$
|
(0.91
|
)
|
|
(35.4
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
1.06
|
|
|
$
|
0.47
|
|
|
$
|
0.59
|
|
|
125.5
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
2.03
|
|
|
$
|
3.35
|
|
|
$
|
(1.32
|
)
|
|
(39.4
|
)%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
3.68
|
|
|
$
|
5.13
|
|
|
$
|
(1.45
|
)
|
|
(28.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Marcellus Sales Price (per Mcfe)
|
$
|
2.66
|
|
|
$
|
3.11
|
|
|
$
|
(0.45
|
)
|
|
(14.5
|
)%
|
Average Marcellus Lease Operating Expenses (per Mcfe)
|
0.19
|
|
|
0.30
|
|
|
(0.11
|
)
|
|
(36.7
|
)%
|
|||
Average Marcellus Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.08
|
|
|
0.12
|
|
|
(0.04
|
)
|
|
(33.3
|
)%
|
|||
Average Marcellus Transportation, Gathering and Compression costs (per Mcfe)
|
1.09
|
|
|
1.15
|
|
|
(0.06
|
)
|
|
(5.2
|
)%
|
|||
Average Marcellus Depreciation, Depletion and Amortization costs (per Mcfe)
|
0.99
|
|
|
0.94
|
|
|
0.05
|
|
|
5.3
|
%
|
|||
Total Average Marcellus Costs (per Mcfe)
|
$
|
2.35
|
|
|
$
|
2.51
|
|
|
$
|
(0.16
|
)
|
|
(6.4
|
)%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
0.31
|
|
|
$
|
0.60
|
|
|
$
|
(0.29
|
)
|
|
(48.3
|
)%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Utica Gas Sales Volumes (Bcf)
|
36.4
|
|
|
13.4
|
|
|
23.0
|
|
|
171.6
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
8.2
|
|
|
5.1
|
|
|
3.1
|
|
|
60.8
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
1.6
|
|
|
1.7
|
|
|
(0.1
|
)
|
|
(5.9
|
)%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
46.2
|
|
|
20.2
|
|
|
26.0
|
|
|
128.7
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.40
|
|
|
$
|
1.59
|
|
|
$
|
(0.19
|
)
|
|
(11.9
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.55
|
|
|
$
|
—
|
|
|
$
|
0.55
|
|
|
100.0
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
2.18
|
|
|
$
|
1.60
|
|
|
$
|
0.58
|
|
|
36.3
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
3.93
|
|
|
$
|
3.78
|
|
|
$
|
0.15
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica Sales Price (per Mcfe)
|
$
|
2.06
|
|
|
$
|
1.79
|
|
|
$
|
0.27
|
|
|
15.1
|
%
|
Average Utica Lease Operating Expenses (per Mcfe)
|
0.28
|
|
|
0.56
|
|
|
(0.28
|
)
|
|
(50.0
|
)%
|
|||
Average Utica Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.06
|
|
|
0.04
|
|
|
0.02
|
|
|
50.0
|
%
|
|||
Average Utica Transportation, Gathering and Compression Costs (per Mcfe)
|
0.50
|
|
|
0.67
|
|
|
(0.17
|
)
|
|
(25.4
|
)%
|
|||
Average Utica Depreciation, Depletion and Amortization Costs (per Mcfe)
|
0.93
|
|
|
1.06
|
|
|
(0.13
|
)
|
|
(12.3
|
)%
|
|||
Total Average Utica Costs (per Mcfe)
|
$
|
1.77
|
|
|
$
|
2.33
|
|
|
$
|
(0.56
|
)
|
|
(24.0
|
)%
|
Average Margin for Utica (per Mcfe)
|
$
|
0.29
|
|
|
$
|
(0.54
|
)
|
|
$
|
0.83
|
|
|
153.7
|
%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
34.6
|
|
|
37.7
|
|
|
(3.1
|
)
|
|
(8.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
2.19
|
|
|
$
|
2.89
|
|
|
$
|
(0.70
|
)
|
|
(24.2
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
1.03
|
|
|
$
|
0.86
|
|
|
$
|
0.17
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM Sales Price (per Mcf)
|
$
|
3.22
|
|
|
$
|
3.75
|
|
|
$
|
(0.53
|
)
|
|
(14.1
|
)%
|
Average CBM Lease Operating Expenses (per Mcf)
|
0.33
|
|
|
0.50
|
|
|
(0.17
|
)
|
|
(34.0
|
)%
|
|||
Average CBM Production, Ad Valorem, and Other Fees (per Mcf)
|
0.08
|
|
|
0.10
|
|
|
(0.02
|
)
|
|
(20.0
|
)%
|
|||
Average CBM Transportation, Gathering and Compression Costs (per Mcf)
|
1.05
|
|
|
1.15
|
|
|
(0.10
|
)
|
|
(8.7
|
)%
|
|||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf)
|
1.25
|
|
|
1.14
|
|
|
0.11
|
|
|
9.6
|
%
|
|||
Total Average CBM Costs (per Mcf)
|
$
|
2.71
|
|
|
$
|
2.89
|
|
|
$
|
(0.18
|
)
|
|
(6.2
|
)%
|
Average Margin for CBM (per Mcf)
|
$
|
0.51
|
|
|
$
|
0.86
|
|
|
$
|
(0.35
|
)
|
|
(40.7
|
)%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
11.5
|
|
|
12.2
|
|
|
(0.7
|
)
|
|
(5.7
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.2
|
|
|
0.3
|
|
|
(0.1
|
)
|
|
(33.3
|
)%
|
|||
Total Other Sales Volumes (Bcfe)*
|
11.7
|
|
|
12.5
|
|
|
(0.8
|
)
|
|
(6.4
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.53
|
|
|
$
|
2.47
|
|
|
$
|
(0.94
|
)
|
|
(38.1
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
1.01
|
|
|
$
|
0.73
|
|
|
$
|
0.28
|
|
|
38.4
|
%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
5.50
|
|
|
$
|
7.96
|
|
|
$
|
(2.46
|
)
|
|
(30.9
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other Sales Price (per Mcfe)
|
$
|
2.59
|
|
|
$
|
3.30
|
|
|
$
|
(0.71
|
)
|
|
(21.5
|
)%
|
Average Other Lease Operating Expenses (per Mcfe)
|
0.63
|
|
|
1.09
|
|
|
(0.46
|
)
|
|
(42.2
|
)%
|
|||
Average Other Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.12
|
|
|
0.19
|
|
|
(0.07
|
)
|
|
(36.8
|
)%
|
|||
Average Other Transportation, Gathering and Compression Costs (per Mcfe)
|
1.00
|
|
|
1.10
|
|
|
(0.10
|
)
|
|
(9.1
|
)%
|
|||
Average Other Depreciation, Depletion and Amortization Costs (per Mcfe)
|
1.70
|
|
|
3.07
|
|
|
(1.37
|
)
|
|
(44.6
|
)%
|
|||
Total Average Other Costs (per Mcfe)
|
$
|
3.45
|
|
|
$
|
5.45
|
|
|
$
|
(2.00
|
)
|
|
(36.7
|
)%
|
Average Margin for Other (per Mcfe)
|
$
|
(0.86
|
)
|
|
$
|
(2.15
|
)
|
|
$
|
1.29
|
|
|
60.0
|
%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Sales Volumes (in billion cubic feet)
|
10.0
|
|
|
1.4
|
|
|
8.6
|
|
|
614.3
|
%
|
|||
Average Sales Price Per thousand cubic feet
|
$
|
1.65
|
|
|
$
|
3.53
|
|
|
$
|
(1.88
|
)
|
|
(53.3
|
)%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Right of Way Sales
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
1,000.0
|
%
|
Equity in Earnings of Affiliates - CONE
|
25
|
|
|
18
|
|
|
7
|
|
|
38.9
|
%
|
|||
Gathering Revenue
|
5
|
|
|
6
|
|
|
(1
|
)
|
|
(16.7
|
)%
|
|||
Other
|
1
|
|
|
4
|
|
|
(3
|
)
|
|
(75.0
|
)%
|
|||
Total Miscellaneous Other Income
|
$
|
42
|
|
|
$
|
29
|
|
|
$
|
13
|
|
|
44.8
|
%
|
•
|
Right of Way Sales increased $
10
million in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Equity in Earnings of Affiliates - CONE
increased
$
7
million due to an increase in earnings from CONE Midstream Partners, LP. and CONE Gathering, LLC. See Note 18 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Gathering revenue primarily relates to the release (sale) of unutilized firm transportation capacity when possible and when beneficial in order to minimize unutilized firm transportation expense. Gathering revenue
decreased
by $
1
million in the period-to-period comparison, due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Other
decrease
d $
3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Purchased Gas Volumes (in billion cubic feet)
|
10.0
|
|
|
1.4
|
|
|
8.6
|
|
|
614.3
|
%
|
|||
Average Cost Per thousand cubic feet sold
|
$
|
1.67
|
|
|
$
|
2.77
|
|
|
$
|
(1.10
|
)
|
|
(39.7
|
)%
|
|
For the Six Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Land Rentals
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
50.0
|
%
|
Lease Expiration Costs
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
(50.0
|
)%
|
|||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
100.0
|
%
|
|||
Total Exploration and Other Costs
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
25.0
|
%
|
•
|
Total exploration and other costs increased $
1
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Six Months Ended June 30,
|
||||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
||||||||
Impairment of Exploration and Production Properties
|
$
|
—
|
|
|
$
|
829
|
|
|
$
|
(829
|
)
|
|
(100.0
|
)%
|
|
Unutilized Firm Transportation and Processing Fees
|
15
|
|
|
18
|
|
|
(3
|
)
|
|
(16.7
|
)%
|
||||
Short-Term Incentive Compensation
|
4
|
|
|
6
|
|
|
(2
|
)
|
|
(33.3
|
)%
|
||||
Stock-Based Compensation
|
10
|
|
|
8
|
|
|
2
|
|
|
25.0
|
%
|
||||
Litigation Expense
|
2
|
|
|
—
|
|
|
2
|
|
|
100.0
|
%
|
||||
Idle Rig Fees
|
19
|
|
|
3
|
|
|
16
|
|
|
533.3
|
%
|
||||
Other
|
8
|
|
|
5
|
|
|
3
|
|
|
60.0
|
%
|
||||
Total Other Corporate Expenses
|
$
|
58
|
|
—
|
|
$
|
869
|
|
|
$
|
(811
|
)
|
|
(93.3
|
)%
|
•
|
Impairment of Exploration and Production properties primarily related to the write down of the Company's shallow oil and gas asset values in June 2015. See Note 10 - Property, Plant, And Equipment, in the Notes to the Unaudited Consolidated Financial Statements included in this form 10-Q for more information. No such impairment was recorded in the current period.
|
•
|
Unutilized firm transportation costs represent pipeline transportation capacity that the E&P division has obtained to enable gas production to flow uninterrupted as sales volumes increase, as well as additional processing capacity for natural gas liquids. Unutilized firm transportation
decrease
d $
3
million in the period-to-period comparison due to an increase in the utilization of the capacity. The Company attempts to minimize this expense by releasing (selling) unutilized firm transportation capacity to other parties when possible and when beneficial. During the
six months
ended
June 30, 2016
and 2015 the Company recognized approximately $5 million and $3 million, respectively, of revenue in connection with such releases.
|
•
|
Short-term incentive compensation expense
decrease
d $
2
million in the period-to-period comparison due to decreased payouts in the current period.
|
•
|
Stock-based compensation
increase
d $
2
million in the period-to-period comparison primarily due to additional non-cash amortization expense and accelerated non-cash amortization recorded in the current period for employees who received awards under the Performance Share Unit (PSU) program.
|
•
|
Litigation expense increased $
2
million in the period-to-period comparison due to various items in the
six months
ended
June 30, 2016
, none of which were individually material.
|
•
|
Idle rig fees are fees related to the temporary idling of some of the Company's natural gas rigs. The total idle rig expense incurred by the Company has increased by
$16
million for the current period as compared to the prior period.
|
•
|
Other corporate related expenses
increase
d
$3
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Six Months Ended
|
|
Difference to Six Months Ended
|
||||||||||||||||||||
|
June 30, 2016
|
|
June 30, 2015
|
||||||||||||||||||||
(in millions)
|
Pennsylvania Operations
|
|
Other
Coal
|
|
Total
Coal
|
|
Pennsylvania Operations
|
|
Other
Coal
|
|
Total
Coal
|
||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Produced Coal
|
$
|
477
|
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
(226
|
)
|
|
$
|
—
|
|
|
$
|
(226
|
)
|
Purchased Coal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Total Outside Sales
|
477
|
|
|
—
|
|
|
477
|
|
|
(226
|
)
|
|
(2
|
)
|
|
(228
|
)
|
||||||
Other Outside Sales
|
—
|
|
|
16
|
|
|
16
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||
Freight Revenue
|
25
|
|
|
—
|
|
|
25
|
|
|
20
|
|
|
(3
|
)
|
|
17
|
|
||||||
Miscellaneous Other Income
|
7
|
|
|
32
|
|
|
39
|
|
|
5
|
|
|
(8
|
)
|
|
(3
|
)
|
||||||
Gain on Sale of Assets
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Total Revenue and Other Income
|
509
|
|
|
51
|
|
|
560
|
|
|
(201
|
)
|
|
(17
|
)
|
|
(218
|
)
|
||||||
Operating Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Costs
|
313
|
|
|
—
|
|
|
313
|
|
|
(128
|
)
|
|
—
|
|
|
(128
|
)
|
||||||
Depreciation, Depletion and Amortization
|
74
|
|
|
—
|
|
|
74
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
||||||
Total Operating Costs and Expenses
|
387
|
|
|
—
|
|
|
387
|
|
|
(142
|
)
|
|
—
|
|
|
(142
|
)
|
||||||
Other Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Costs
|
25
|
|
|
64
|
|
|
89
|
|
|
39
|
|
|
17
|
|
|
56
|
|
||||||
Depreciation, Depletion and Amortization
|
9
|
|
|
(4
|
)
|
|
5
|
|
|
4
|
|
|
(14
|
)
|
|
(10
|
)
|
||||||
Total Other Costs and Expenses
|
34
|
|
|
60
|
|
|
94
|
|
|
43
|
|
|
3
|
|
|
46
|
|
||||||
Freight Expense
|
25
|
|
|
—
|
|
|
25
|
|
|
20
|
|
|
(3
|
)
|
|
17
|
|
||||||
Selling, General and Administrative Costs
|
9
|
|
|
2
|
|
|
11
|
|
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
||||||
Other Corporate Expense
|
4
|
|
|
3
|
|
|
7
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Total Coal Costs
|
459
|
|
|
65
|
|
|
524
|
|
|
(91
|
)
|
|
1
|
|
|
(90
|
)
|
||||||
Interest Expense
|
4
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total Coal Division Expense
|
463
|
|
|
65
|
|
|
528
|
|
|
(87
|
)
|
|
1
|
|
|
(86
|
)
|
||||||
Earnings (Loss) Before Income Taxes
|
$
|
46
|
|
|
$
|
(14
|
)
|
|
$
|
32
|
|
|
$
|
(114
|
)
|
|
$
|
(18
|
)
|
|
$
|
(132
|
)
|
|
For the Six Months Ended June 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Operations Tons Sold (in millions)
|
11.4
|
|
|
12.2
|
|
|
(0.8
|
)
|
|
(6.6
|
)%
|
|||
Average Sales Price Per PA Operations Ton Sold
|
$
|
41.70
|
|
|
$
|
57.61
|
|
|
$
|
(15.91
|
)
|
|
(27.6
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
27.39
|
|
|
$
|
36.25
|
|
|
$
|
(8.86
|
)
|
|
(24.4
|
)%
|
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
6.47
|
|
|
7.08
|
|
|
(0.61
|
)
|
|
(8.6
|
)%
|
|||
Total Costs Per PA Operations Ton Sold
|
$
|
33.86
|
|
|
$
|
43.33
|
|
|
$
|
(9.47
|
)
|
|
(21.9
|
)%
|
Average Margin Per PA Operations Ton Sold
|
$
|
7.84
|
|
|
$
|
14.28
|
|
|
$
|
(6.44
|
)
|
|
(45.1
|
)%
|
|
|
For the Six Months Ended June 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
OPEB Plan Changes
|
|
$
|
—
|
|
|
$
|
(26
|
)
|
|
$
|
26
|
|
Idle Mine Costs
|
|
13
|
|
|
—
|
|
|
13
|
|
|||
Litigation Expense
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Severance Expense
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Coal Reserve Holding Costs
|
|
2
|
|
|
3
|
|
|
(1
|
)
|
|||
Amortization of Financing Charges
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
|||
Other
|
|
7
|
|
|
2
|
|
|
5
|
|
|||
Other Costs and Expenses
|
|
$
|
25
|
|
|
$
|
(14
|
)
|
|
$
|
39
|
|
•
|
Income of
$26 million
related to OPEB plan changes made in May 2015 for retired employees. Refer to the discussion of total Company long-term liabilities contained in the section "Net Loss Attributable to CONSOL Energy Shareholders" of this quarterly report for more information. No such transactions occurred in the current period.
|
•
|
Idle Mine Costs
increased
$13 million
, due to the temporarily idling of one of the longwalls for approximately 90 days to optimize operating schedules.
|
•
|
Approximately
$2 million
of costs were incurred during the six months ended
June 30, 2016
related to the proposed consent decree with respect to the Bailey mine complex. See Note 13 - Commitments and Contingent Liabilities of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Severance expense of $
1 million
was incurred during the six months ended
June 30, 2016
in connection with the Company's ongoing cost reduction efforts. No such transactions occurred in the period period.
|
•
|
Coal Reserve Holding Costs
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Accelerated amortization of financing charges totaling
$7 million
related to a backstop loan were incurred in the 2015 period.
|
•
|
Other
increased
$5 million
in the period-to-period comparison due to an increase in 401(k) discretionary contributions, as well as various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Six Months Ended June 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Equity in Earnings of Affiliates
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(4
|
)
|
Royalty Income
|
|
5
|
|
|
8
|
|
|
(3
|
)
|
|||
Rental Income
|
|
18
|
|
|
18
|
|
|
—
|
|
|||
Right of Way Sales
|
|
6
|
|
|
5
|
|
|
1
|
|
|||
Other Income
|
|
2
|
|
|
4
|
|
|
(2
|
)
|
|||
Total Miscellaneous Other Income
|
|
$
|
32
|
|
|
$
|
40
|
|
|
$
|
(8
|
)
|
•
|
Equity in Earnings of Affiliates
decreased
$4 million
due to the sale of the Company's 49% interest in Western Allegheny Energy in September 2015.
|
•
|
Royalty Income
decreased
$3 million
primarily due to the overall decrease in domestic coal pricing.
|
•
|
Right of Way sales increased
$1 million
in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Other Income
decreased
$2 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Six Months Ended June 30,
|
||||||||||
|
|
2016
|
|
2015
|
|
Variance
|
||||||
OPEB Plan Changes
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
25
|
|
Lease Rental Expense
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Coal Terminal Operations
|
|
8
|
|
|
12
|
|
|
(4
|
)
|
|||
Coal Reserve Holding Costs
|
|
4
|
|
|
5
|
|
|
(1
|
)
|
|||
Closed and Idle Mines
|
|
4
|
|
|
5
|
|
|
(1
|
)
|
|||
Purchased Coal Costs
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
UMWA OPEB Expense
|
|
22
|
|
|
23
|
|
|
(1
|
)
|
|||
Other
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Total Other Costs
|
|
$
|
64
|
|
|
$
|
47
|
|
|
$
|
17
|
|
•
|
Represents income of
$25 million
related to OPEB plan changes made in May 2015 for retired employees. Refer to the discussion of total Company long-term liabilities contained in the section "Net Loss Attributable to CONSOL Energy Shareholders" of this quarterly report for more information.
|
•
|
Coal Terminal Operations costs
decreased
$4 million
due to
decreased
throughput volumes in the current period.
|
•
|
Coal Reserve Holding Costs
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Closed and Idle Mine Costs
decreased
$1 million
in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Purchased Coal Costs
decreased
$1 million
due to
lower
volumes of coal that needed to be purchased to fulfill various contracts.
|
•
|
UMWA OPEB Expense
decreased
$1 million
primarily due to a decrease in interest costs.
|
|
For the Six Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Miscellaneous Operating Expense
|
$
|
21
|
|
|
$
|
24
|
|
|
$
|
(3
|
)
|
|
(12.5
|
)%
|
Loss on Debt Extinguishment
|
—
|
|
|
68
|
|
|
(68
|
)
|
|
(100.0
|
)%
|
|||
Interest Expense
|
92
|
|
|
98
|
|
|
(6
|
)
|
|
(6.1
|
)%
|
|||
Total Other Costs
|
113
|
|
|
190
|
|
|
(77
|
)
|
|
(40.5
|
)%
|
|||
Loss Before Income Tax
|
(113
|
)
|
|
(190
|
)
|
|
77
|
|
|
(40.5
|
)%
|
|||
Income Tax Benefit
|
(124
|
)
|
|
(317
|
)
|
|
193
|
|
|
(60.9
|
)%
|
|||
Net Income
|
$
|
11
|
|
|
$
|
127
|
|
|
$
|
(116
|
)
|
|
(91.3
|
)%
|
|
|
For the Six Months Ended June 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Pension Expense
|
|
$
|
(7
|
)
|
|
$
|
8
|
|
|
$
|
(15
|
)
|
Transaction Fees
|
|
—
|
|
|
5
|
|
|
(5
|
)
|
|||
Bank Fees
|
|
8
|
|
|
9
|
|
|
(1
|
)
|
|||
Severance Payments
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
Litigation Expense
|
|
3
|
|
|
1
|
|
|
2
|
|
|||
Pension Settlement
|
|
14
|
|
|
—
|
|
|
14
|
|
|||
Other
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Miscellaneous Operating Expense
|
|
$
|
21
|
|
|
$
|
24
|
|
|
$
|
(3
|
)
|
•
|
Actuarially-calculated amortization decreased
$15 million
in the period-to-period comparison due to modifications made to the pension plan in May 2015. See Note 16 - Pension and Other Postretirement Benefits Plans in the Notes to the Audited Financial Statements in our December 31, 2015 Form 10-K for additional information.
|
•
|
Transaction fees were
$5 million
for the six months ended
June 30, 2015
related to various corporate initiatives including the CNXC MLP. No such transactions occurred in the current period.
|
•
|
Bank Fees decreased
$1 million
in the period-to-period comparison due to various items that occurred throughout both periods, none of which were individually material.
|
•
|
Litigation expense increased
$2 million
in the period-to-period comparison due to various items that occurred throughout both periods, none of which were individually material.
|
•
|
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. Settlement accounting was triggered in the
six
months ended
June 30, 2016
, primarily as a result of the sale of the Buchanan Mine in the first quarter of 2016.. See Note 5 - Components of Pension and OPEB Plans Net Periodic Benefit Costs in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional detail. No such transactions occurred in the prior period.
|
•
|
Other increased
$2 million
in the period-to-period comparison due to various items that occurred throughout both periods, none of which were individually material.
|
|
For the Six Months Ended June 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Loss Before Income Tax excluding Noncontrolling Interest
|
$
|
(402
|
)
|
|
$
|
(841
|
)
|
|
$
|
439
|
|
|
(52.2
|
)%
|
Income Tax Benefit
|
$
|
(124
|
)
|
|
$
|
(317
|
)
|
|
$
|
193
|
|
|
(60.9
|
)%
|
Effective Income Tax Rate
|
30.8
|
%
|
|
37.7
|
%
|
|
(6.9
|
)%
|
|
|
|
For the Six Months Ended June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
Cash Provided by Operating Activities
|
$
|
224
|
|
|
$
|
294
|
|
|
$
|
(70
|
)
|
Cash Provided by (Used in) Investing Activities
|
$
|
292
|
|
|
$
|
(673
|
)
|
|
$
|
965
|
|
Cash (Used in) Provided by Financing Activities
|
$
|
(491
|
)
|
|
$
|
211
|
|
|
$
|
(702
|
)
|
•
|
Net loss increased $41 million in the period-to-period comparison.
|
•
|
Adjustments to reconcile net income to cash provided by operating activities decreased primarily due to the $829 million impairment of exploration and production properties recorded in 2015. (See Note 10 - Property, Plant, And Equipment, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for more information). This adjustment was offset, in part, by an increase in the loss from discontinued operations (See Note 2 - Discontinued Operations in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for more information), an increase in the loss on commodity derivative instruments of $252 million and an increase of $188 million related to changes in deferred taxes.
|
•
|
Other changes in operating assets, operating liabilities, other assets and other liabilities which occurred throughout both periods also contributed to the decrease in operating cash flows.
|
•
|
Capital expenditures decreased $501 million in the period-to-period comparison due to the following:
|
◦
|
Gas segment capital expenditures decreased $453 million due to decreased expenditures in both the Marcellus and Utica plays resulting from decreased drilling activity, as well as, other various transactions that occurred throughout both periods none of which were individually material.
|
◦
|
Coal segment capital expenditures decreased $43 million due to a $23 million decrease in equipment purchases and rebuilds at PA Operations, a $13 million decrease in PA Operations preparation plant expenditures including water treatment systems and various other items that occurred throughout both periods, none of which were individually material.
|
◦
|
Other capital expenditures decreased $5 million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Proceeds from the sale of assets increased $11 million primarily due to the $7 million sale of a gathering pipeline in the
six
months ended
June 30, 2016
. The remaining increase was due to various assets sales that occurred throughout both periods, none of which were individually material.
|
•
|
Cash provided by equity affiliates increased $38 million primarily due to a $40 million net change in investment in CONE Midstream Partners, LP and CONE Gathering LLC (See Note 18 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information), primarily due to a decrease in contributions in the current period. The remaining $2 million decrease was due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Discontinued Operations increased $414 million primarily as a result of the sale of the Buchanan Mine and certain other metallurgical coal reserves in the
six
months ended
June 30, 2016
. (See Note 2 - Discontinued Operations of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information).
|
•
|
In the
six
months ended
June 30, 2016
, CONSOL Energy made payments on the senior secured credit facility of $486 million compared to proceeds from the senior secured credit facility of $1,058 million in the
six
months ended
June 30, 2015
.
|
•
|
In the
six
months ended
June 30, 2015
, CONSOL Energy made net payments of $771 million related to the partial extinguishment of the 2020 and 2021 bonds offset, in part, by the issuance of the 2023 bonds. No such transactions occurred in the 2016 period. (See Note 12 - Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional details).
|
•
|
In the
six
months ended
June 30, 2015
, CONSOL Energy repurchased $72 million of its common stock on the open market under the previously announced share repurchase program. No repurchases were made in the
six
months ended
June 30, 2016
.
|
•
|
In the
six
months ended
June 30, 2015
, CONSOL Energy received proceeds of $39 million under the accounts receivable securitization facility. CONSOL Energy terminated the accounts receivable securitization facility effective July 7, 2015.
|
•
|
The remaining changes are due to various transactions that occurred throughout both periods.
|
|
Payments due by Year
|
||||||||||||||||||
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
|
Total
|
||||||||||
Purchase Order Firm Commitments
|
$
|
60,325
|
|
|
$
|
52,712
|
|
|
$
|
16,658
|
|
|
$
|
6,697
|
|
|
$
|
136,392
|
|
Gas Firm Transportation and Processing
|
133,064
|
|
|
225,952
|
|
|
207,879
|
|
|
602,119
|
|
|
1,169,014
|
|
|||||
Long-Term Debt
|
2,620
|
|
|
2,708
|
|
|
293,882
|
|
|
2,453,473
|
|
|
2,752,683
|
|
|||||
Interest on Long-Term Debt
|
169,039
|
|
|
338,173
|
|
|
325,365
|
|
|
219,616
|
|
|
1,052,193
|
|
|||||
Capital (Finance) Lease Obligations
|
7,027
|
|
|
14,611
|
|
|
14,049
|
|
|
2,965
|
|
|
38,652
|
|
|||||
Interest on Capital (Finance) Lease Obligations
|
2,347
|
|
|
3,471
|
|
|
1,529
|
|
|
52
|
|
|
7,399
|
|
|||||
Operating Lease Obligations
|
94,739
|
|
|
123,315
|
|
|
40,753
|
|
|
83,926
|
|
|
342,733
|
|
|||||
Long-Term Liabilities—Employee Related (a)
|
67,178
|
|
|
131,641
|
|
|
130,293
|
|
|
558,432
|
|
|
887,544
|
|
|||||
Other Long-Term Liabilities (b)
|
348,552
|
|
|
166,389
|
|
|
87,585
|
|
|
349,211
|
|
|
951,737
|
|
|||||
Total Contractual Obligations (c)
|
$
|
884,891
|
|
|
$
|
1,058,972
|
|
|
$
|
1,117,993
|
|
|
$
|
4,276,491
|
|
|
$
|
7,338,347
|
|
(a)
|
Employee related long-term liabilities 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. Additional contributions to the pension trust are not expected to be significant for the remainder of
2016
.
|
(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 $
74
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 is guaranteed by most of CONSOL Energy’s subsidiaries.
|
•
|
An aggregate principal amount of $
21
million
of
6.375%
senior unsecured 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 is guaranteed by most of CONSOL Energy's subsidiaries.
|
•
|
An aggregate principal amount of
$1,850
million
of
5.875%
senior unsecured notes due in April 2022 plus
$5
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 is guaranteed by most of CONSOL Energy's subsidiaries.
|
•
|
An aggregate principal amount of $
500
million
of
8.00%
senior unsecured notes due in April 2023 less
$6
million of unamortized bond discount. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes is 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 principal and interest on the notes is guaranteed by CONSOL Energy.
|
•
|
Advance royalty commitments of $
3
million
with an average interest rate of
16.35%
per annum.
|
•
|
An aggregate principal amount of $
3
million
on a note maturing through March 2018.
|
•
|
An aggregate principal amount of $
38
million
of capital leases with a weighted average interest rate of
6.52%
per annum.
|
•
|
An aggregate principal amount of
$198
million in outstanding borrowings under the revolver for CNXC. CONSOL Energy is not a guarantor of CNXC's revolving credit facility
|
Declaration Date
|
|
Amount Per Share
|
|
Record Date
|
|
Payment Date
|
||
February 1, 2016
|
|
$
|
0.0100
|
|
|
February 16, 2016
|
|
March 3, 2016
|
•
|
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;
|
•
|
prices for natural gas, natural gas and other 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;
|
•
|
foreign currency fluctuations could adversely affect the competitiveness of our coal abroad;
|
•
|
our customers extending existing contracts or entering into new long-term contracts for coal on favorable terms;
|
•
|
our reliance on major customers;
|
•
|
our inability to collect payments from customers if their creditworthiness declines or they fail to enter their contracts;
|
•
|
the disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our natural gas, natural gas liquids and coal to market;
|
•
|
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;
|
•
|
coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions;
|
•
|
the impact of potential, as well as any adopted environmental regulations including any relating to greenhouse gas emissions on our operating costs as well as on the market for natural gas and coal and for our securities;
|
•
|
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 construction or repair of equipment, fires, explosions, accidents and weather conditions which could impact financial results;
|
•
|
decreases in the availability of, or increases in, the price of commodities or capital equipment used in our mining and transportation operations;
|
•
|
obtaining and renewing governmental permits and approvals for our natural gas and coal operations;
|
•
|
the effects of government regulation on the discharge into the water or air, and the disposal and clean-up of, hazardous substances and wastes generated during our natural gas and coal operations;
|
•
|
our ability to find adequate water sources for our use in natural gas drilling, or our ability to dispose of water used or removed from strata in connection with our natural gas operations at a reasonable cost and within applicable environmental rules;
|
•
|
the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down our operations;
|
•
|
the potential for liabilities arising from environmental contamination or alleged environmental contamination in connection with our past or current natural gas and coal operations;
|
•
|
the effects of mine closing, reclamation, gas well closing and certain other liabilities;
|
•
|
uncertainties in estimating our economically recoverable natural gas, oil and coal reserves;
|
•
|
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;
|
•
|
the outcomes of various legal proceedings, which are more fully described in our reports filed under the Securities Exchange Act of 1934;
|
•
|
exposure to employee-related long-term liabilities;
|
•
|
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;
|
•
|
divestitures we anticipate may not occur or produce anticipated benefits;
|
•
|
the terms of our existing joint ventures restrict our flexibility, actions taken by the other party in our natural 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;
|
•
|
risks associated with our debt;
|
•
|
replacing our natural gas and oil reserves, which if not replaced, will cause our natural gas and oil reserves and production to decline;
|
•
|
declines in our borrowing base could occur for a variety of reasons, including lower natural gas or oil prices, declines in natural gas and oil proved reserves, and lending regulations requirements or regulations;
|
•
|
our hedging activities may prevent us from benefiting from price increases and may expose us to other risks;
|
•
|
changes in federal or state income tax laws, particularly in the area of percentage depletion and intangible drilling costs, could cause our financial position and profitability to deteriorate;
|
•
|
failure to appropriately allocate capital and other resources among our strategic opportunities may adversely affect our financial condition;
|
•
|
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;
|
•
|
information theft, data corruption, operational disruption and/or financial loss resulting from a terrorist attack or cyber incident;
|
•
|
operating in a single geographic area;
|
•
|
certain provisions in our multi-year sales contracts may provided limited protection during adverse economic conditions, and may result in economic penalties or permit the customer to terminate the contract;
|
•
|
our common units in CNX Coal Resources LP and CONE Midstream Partners LP are subordinated, and we may not receive distributions from CNX Coal Resources LP or CONE Midstream Partners LP;
|
•
|
with respect to the sale of the Buchanan and Amonate mines and other coal assets to Coronado IV LLC - disruption to our business, including customer, employee and supplier relationships resulting from this transaction, and the impact of the transaction on our future operating results; and
|
•
|
other factors discussed in the 2015 Form 10-K under “Risk Factors,” as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
For the Three Months Ended
|
|
|
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
Total Year
|
||||||||||
2016 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
N/A
|
|
N/A
|
|
72.1
|
|
|
63.4
|
|
|
135.5
|
|
|||||||
Weighted Average Hedge Price per Mcf
|
N/A
|
|
N/A
|
|
$
|
2.87
|
|
|
$
|
3.17
|
|
|
$
|
3.01
|
|
||||
2017 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
51.8
|
|
|
54.4
|
|
|
59.0
|
|
|
59.0
|
|
|
224.2
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.61
|
|
|
$
|
2.70
|
|
|
$
|
2.74
|
|
|
$
|
2.74
|
|
|
$
|
2.70
|
|
2018 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
36.2
|
|
|
36.6
|
|
|
37.0
|
|
|
37.0
|
|
|
146.8
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.80
|
|
|
$
|
2.84
|
|
|
$
|
2.84
|
|
|
$
|
2.84
|
|
|
$
|
2.83
|
|
2019 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
20.3
|
|
|
20.5
|
|
|
20.8
|
|
|
20.8
|
|
|
82.4
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.90
|
|
|
$
|
2.90
|
|
|
$
|
2.90
|
|
|
$
|
2.90
|
|
|
$
|
2.90
|
|
2020 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
6.6
|
|
|
6.6
|
|
|
6.7
|
|
|
6.7
|
|
|
26.6
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
3.04
|
|
|
$
|
3.04
|
|
|
$
|
3.04
|
|
|
$
|
3.04
|
|
|
$
|
3.04
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 6.
|
EXHIBITS
|
10.1
|
|
|
Amendment No. 2, dated as of April 20, 2016, to the Amended and Restated Credit Agreement, dated as of June 18, 2014, and the Amended and Restated Security Agreement, dated as of June 18, 2014, by and among CONSOL Energy Inc., the subsidiary guarantors party thereto, certain lenders and PNC Bank, National Association as administrative agent and as collateral agent, incorporated by reference to Exhibit 10.1 to the Form 8-K (file no. 001-14901) filed on April 26, 2016.
|
|
|
|
|
10.2
|
|
|
Agreement, dated as of April 28, 2016, between CONSOL Energy Inc. and James C. Grech, incorporated by reference to Exhibit 10.1 to the Form 8-K (file no. 001-14901) filed on May 4, 2016.
|
|
|
|
|
10.3
|
|
|
CONSOL Energy Inc. Equity Incentive Plan, as amended and restated effective May 11, 2016, incorporated by reference to Exhibit 99.1 to the Form S-8 (file no. 001-14901) filed on May 4, 2016.
|
|
|
|
|
10.4
|
|
|
Form of Employee Nonqualified Stock Option Agreement (May 26, 2016 and after).
|
|
|
|
|
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
32.1
|
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
32.2
|
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
95
|
|
|
Mine Safety and Health Administration Safety Data.
|
|
|
||
101
|
|
|
Interactive Data File (Form 10-Q for the quarterly period ended June 30, 2016 furnished in XBRL).
|
CONSOL ENERGY INC.
|
|||
|
|
|
|
|
By:
|
|
/s/ NICHOLAS J. DEIULIIS
|
|
|
|
Nicholas J. DeIuliis
|
|
|
|
Chief Executive Officer and President and Director
(Duly Authorized Officer and Principal Executive Officer)
|
|
|
|
|
|
By:
|
|
/
S
/ DAVID M. KHANI
|
|
|
|
David M. Khani
|
|
|
|
Chief Financial Officer and Executive Vice President
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
|
By:
|
|
/
S
/ C. KRISTOPHER HAGEDORN
|
|
|
|
C. Kristopher Hagedorn
|
|
|
|
Vice President and Controller
(Duly Authorized Officer and Principal Accounting Officer)
|
1.
|
I have reviewed this report on Form 10-Q of CONSOL Energy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of 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:
|
July 29, 2016
|
|
|
|
|
/s/ Nicholas J. DeIuliis
|
|
|
Nicholas J. DeIuliis
|
|
|
Chief Executive Officer and President and Director
(Duly Authorized Officer and Principal Executive Officer) |
|
1.
|
I have reviewed this report on Form 10-Q of CONSOL Energy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
July 29, 2016
|
|
|
|
|
/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:
|
July 29, 2016
|
|
|
|
|
/s/ Nicholas J. DeIuliis
|
|
|
Nicholas J. DeIuliis
|
|
|
Chief Executive Officer and President and Director
(Duly Authorized Officer and Principal Executive Officer) |
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Date:
|
July 29, 2016
|
|
|
|
|
/s/ David M. Khani
|
|
|
David M. Khani
|
|
|
Chief Financial Officer and Executive Vice President
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notice
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received
|
|
of
|
|
Legal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Dollar
|
|
Total
|
|
Notice of
|
|
Potential
|
|
Actions
|
|
|
|
|
|
|
|
|
|
|
|
|
Section
|
|
|
|
|
|
Value of
|
|
Number
|
|
Pattern of
|
|
to have
|
|
Pending
|
|
Legal
|
|
Legal
|
|
|
|
|
Section
|
|
|
|
104(d)
|
|
|
|
|
|
MSHA
|
|
of
|
|
Violations
|
|
Pattern
|
|
as of
|
|
Actions
|
|
Actions
|
Mine or Operating
|
|
104
|
|
Section
|
|
Citations
|
|
Section
|
|
Section
|
|
Assessments
|
|
Mining
|
|
Under
|
|
Under
|
|
Last
|
|
Initiated
|
|
Resolved
|
||
Name/MSHA
|
|
S&S
|
|
104(b)
|
|
and
|
|
110(b)(2)
|
|
107(a)
|
|
Proposed
|
|
Related
|
|
Section
|
|
Section
|
|
Day of
|
|
During
|
|
During
|
||
Identification Number
|
|
Citations
|
|
Orders
|
|
Orders
|
|
Violations
|
|
Orders
|
|
(In Dollars)
|
|
Fatalities
|
|
104(e)
|
|
104(e)
|
|
Period (1)
|
|
Period
|
|
Period
|
||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bailey
|
|
36-07230
|
|
23
|
|
—
|
|
—
|
|
—
|
|
—
|
|
39,774
|
|
—
|
|
No
|
|
No
|
|
24
|
|
7
|
|
—
|
Enlow Fork
|
|
36-07416
|
|
40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
26,242
|
|
—
|
|
No
|
|
No
|
|
24
|
|
3
|
|
2
|
Harvey
|
|
36-10045
|
|
8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,584
|
|
—
|
|
No
|
|
No
|
|
9
|
|
3
|
|
7
|
Miller Creek Prep Plant #1
|
|
46-05890
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Twin Branch Surface
|
|
46-09075
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
408
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alma No. 1 Deep
|
|
46-09277
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
263
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Surface Mine No. 2
|
|
46-08377
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
263
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
|
|
|
|
76
|
|
—
|
|
—
|
|
—
|
|
—
|
|
70,534
|
|
—
|
|
|
|
|
|
57
|
|
13
|
|
11
|
Mine or Operating Name/MSHA Identification Number
|
|
Contests of Citations, Orders
(as of 6.30.16)
(a)
|
|
Contests of Proposed Penalties
(as of 6.30.16)
(b)
|
|
Complaints for Compensation
(as of 6.30.16)
(c)
|
|
Complaints of Discharge, Discrimination or Interference
(as of 6.30.16)
(d)
|
|
Applications for Temporary Relief
(as of 6.30.16)
(e)
|
|
Appeals of Judges' Decisions or Order
(as of 6.30.16)
(f)
|
||||
|
|
|
||||||||||||||
|
|
Dockets
|
|
Citations
|
|
|
|
|
||||||||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bailey
|
|
36-07230
|
|
—
|
|
24
|
|
143
|
|
—
|
|
1
|
|
—
|
|
—
|
Enlow Fork
|
|
36-07416
|
|
—
|
|
24
|
|
170
|
|
—
|
|
—
|
|
—
|
|
3
|
Harvey
|
|
36-10045
|
|
—
|
|
9
|
|
30
|
|
—
|
|
—
|
|
—
|
|
—
|
Miller Creek Prep Plant #1
|
|
46-05890
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Twin Branch Surface
|
|
46-09075
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alma No. 1 Deep
|
|
46-09277
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
—
|
|
57
|
|
343
|
|
—
|
|
1
|
|
—
|
|
3
|