|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
|
51-0337383
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
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Class
|
|
Shares outstanding as of October 17, 2016
|
Common stock, $0.01 par value
|
|
229,440,368
|
|
TABLE OF CONTENTS
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||
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Page
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PART I FINANCIAL INFORMATION
|
|
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ITEM 1.
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Condensed Financial Statements
|
|
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Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015
|
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Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015
|
|
|
Consolidated Balance Sheets at September 30, 2016 and December 31, 2015
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|
Consolidated Statement of Stockholders’ Equity for the nine months ended September 30, 2016
|
|
|
Consolidated Statements of Cash Flows for the nine months ended September 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.
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||
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ITEM 1A.
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Risk Factors
|
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ITEM 4.
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||
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ITEM 5.
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Other Information
|
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ITEM 6.
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ITEM 1.
|
CONDENSED FINANCIAL STATEMENTS
|
(Dollars in thousands, except per share data)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited)
|
September 30,
|
|
September 30,
|
||||||||||||
Revenues and Other Income:
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
205,913
|
|
|
$
|
157,538
|
|
|
$
|
555,101
|
|
|
$
|
541,630
|
|
Gain on Commodity Derivative Instruments
|
198,192
|
|
|
143,606
|
|
|
53,872
|
|
|
251,073
|
|
||||
Coal Sales
|
267,685
|
|
|
323,171
|
|
|
744,411
|
|
|
1,026,596
|
|
||||
Other Outside Sales
|
4,714
|
|
|
5,129
|
|
|
20,687
|
|
|
24,596
|
|
||||
Purchased Gas Sales
|
12,086
|
|
|
2,535
|
|
|
28,633
|
|
|
7,649
|
|
||||
Freight-Outside Coal
|
9,392
|
|
|
2,436
|
|
|
33,949
|
|
|
10,204
|
|
||||
Miscellaneous Other Income
|
32,393
|
|
|
38,475
|
|
|
114,159
|
|
|
111,279
|
|
||||
Gain on Sale of Assets
|
15,203
|
|
|
48,043
|
|
|
13,541
|
|
|
54,329
|
|
||||
Total Revenue and Other Income
|
745,578
|
|
|
720,933
|
|
|
1,564,353
|
|
|
2,027,356
|
|
||||
Costs and Expenses:
|
|
|
|
|
|
|
|
||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
||||||||
Lease Operating Expense
|
22,602
|
|
|
29,452
|
|
|
73,996
|
|
|
96,229
|
|
||||
Transportation, Gathering and Compression
|
94,796
|
|
|
89,965
|
|
|
279,753
|
|
|
248,682
|
|
||||
Production, Ad Valorem, and Other Fees
|
9,027
|
|
|
8,475
|
|
|
23,732
|
|
|
24,605
|
|
||||
Depreciation, Depletion and Amortization
|
101,257
|
|
|
92,083
|
|
|
312,122
|
|
|
269,377
|
|
||||
Exploration and Production Related Other Costs
|
384
|
|
|
3,332
|
|
|
5,036
|
|
|
7,695
|
|
||||
Purchased Gas Costs
|
11,940
|
|
|
1,921
|
|
|
28,692
|
|
|
5,939
|
|
||||
Other Corporate Expenses
|
21,760
|
|
|
20,953
|
|
|
65,980
|
|
|
47,088
|
|
||||
Impairment of Exploration and Production Properties
|
—
|
|
|
—
|
|
|
—
|
|
|
828,905
|
|
||||
Selling, General, and Administrative Costs
|
26,198
|
|
|
23,919
|
|
|
74,067
|
|
|
80,396
|
|
||||
Total Exploration and Production Costs
|
287,964
|
|
|
270,100
|
|
|
863,378
|
|
|
1,608,916
|
|
||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
||||||||
Operating and Other Costs
|
182,717
|
|
|
137,759
|
|
|
521,277
|
|
|
564,604
|
|
||||
Depreciation, Depletion and Amortization
|
42,370
|
|
|
43,459
|
|
|
125,334
|
|
|
136,536
|
|
||||
Freight Expense
|
9,392
|
|
|
2,436
|
|
|
33,949
|
|
|
10,204
|
|
||||
Selling, General, and Administrative Costs
|
7,653
|
|
|
9,044
|
|
|
20,207
|
|
|
34,231
|
|
||||
Total PA Mining Operations Costs
|
242,132
|
|
|
192,698
|
|
|
700,767
|
|
|
745,575
|
|
||||
Other Costs
|
|
|
|
|
|
|
|
||||||||
Miscellaneous Operating Expense
|
40,085
|
|
|
(3,078
|
)
|
|
127,531
|
|
|
70,554
|
|
||||
Selling, General, and Administrative Costs
|
4,569
|
|
|
6,173
|
|
|
10,173
|
|
|
9,946
|
|
||||
Depreciation, Depletion and Amortization
|
8,085
|
|
|
11,302
|
|
|
4,463
|
|
|
21,219
|
|
||||
Loss on Debt Extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
67,751
|
|
||||
Interest Expense
|
47,317
|
|
|
48,558
|
|
|
144,609
|
|
|
150,185
|
|
||||
Total Other Costs
|
100,056
|
|
|
62,955
|
|
|
286,776
|
|
|
319,655
|
|
||||
Total Costs And Expenses
|
630,152
|
|
|
525,753
|
|
|
1,850,921
|
|
|
2,674,146
|
|
||||
Income (Loss) From Continuing Operations Before Income Tax
|
115,426
|
|
|
195,180
|
|
|
(286,568
|
)
|
|
(646,790
|
)
|
||||
Income Taxes
|
52,858
|
|
|
65,868
|
|
|
(71,798
|
)
|
|
(251,181
|
)
|
||||
Income (Loss) From Continuing Operations
|
62,568
|
|
|
129,312
|
|
|
(214,770
|
)
|
|
(395,609
|
)
|
||||
Loss From Discontinued Operations, net
|
(34,975
|
)
|
|
(3,842
|
)
|
|
(322,747
|
)
|
|
(3,192
|
)
|
||||
Net Income (Loss)
|
27,593
|
|
|
125,470
|
|
|
(537,517
|
)
|
|
(398,801
|
)
|
||||
Less: Net Income Attributable to Noncontrolling Interest
|
2,248
|
|
|
6,490
|
|
|
4,541
|
|
|
6,490
|
|
||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
25,345
|
|
|
$
|
118,980
|
|
|
$
|
(542,058
|
)
|
|
$
|
(405,291
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Dollars in thousands, except per share data)
|
September 30,
|
|
September 30,
|
||||||||||||
(Unaudited)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Earnings (Loss) Per Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
|
|
|
|
|
|
||||||||
Income (Loss) from Continuing Operations
|
$
|
0.26
|
|
|
$
|
0.54
|
|
|
$
|
(0.96
|
)
|
|
$
|
(1.75
|
)
|
Loss from Discontinued Operations
|
(0.15
|
)
|
|
(0.02
|
)
|
|
(1.40
|
)
|
|
(0.02
|
)
|
||||
Total Basic Earnings (Loss) Per Share
|
$
|
0.11
|
|
|
$
|
0.52
|
|
|
$
|
(2.36
|
)
|
|
$
|
(1.77
|
)
|
Dilutive
|
|
|
|
|
|
|
|
||||||||
Income (Loss) from Continuing Operations
|
$
|
0.26
|
|
|
$
|
0.54
|
|
|
$
|
(0.96
|
)
|
|
$
|
(1.75
|
)
|
Loss from Discontinued Operations
|
(0.15
|
)
|
|
(0.02
|
)
|
|
(1.40
|
)
|
|
(0.02
|
)
|
||||
Total Dilutive Earnings (Loss) Per Share
|
$
|
0.11
|
|
|
$
|
0.52
|
|
|
$
|
(2.36
|
)
|
|
$
|
(1.77
|
)
|
|
|
|
|
|
|
|
|
||||||||
Dividends Declared Per Share
|
$
|
—
|
|
|
$
|
0.0100
|
|
|
$
|
0.0100
|
|
|
$
|
0.1350
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Dollars in thousands)
|
September 30,
|
|
September 30,
|
||||||||||||
(Unaudited)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net Income (Loss)
|
$
|
27,593
|
|
|
$
|
125,470
|
|
|
$
|
(537,517
|
)
|
|
$
|
(398,801
|
)
|
Other Comprehensive Loss:
|
|
|
|
|
|
|
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($1,043), $29,720, ($5,369), $24,935)
|
1,305
|
|
|
(49,353
|
)
|
|
6,866
|
|
|
(40,036
|
)
|
||||
Reclassification of Cash Flow Hedges from OCI to Earnings (Net of tax: $7,139, $11,807, $19,284, $35,123)
|
(12,458
|
)
|
|
(20,602
|
)
|
|
(33,475
|
)
|
|
(60,720
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Loss
|
(11,153
|
)
|
|
(69,955
|
)
|
|
(26,609
|
)
|
|
(100,756
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income (Loss)
|
16,440
|
|
|
55,515
|
|
|
(564,126
|
)
|
|
(499,557
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interests
|
2,248
|
|
|
6,490
|
|
|
4,541
|
|
|
6,490
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
14,192
|
|
|
$
|
49,025
|
|
|
$
|
(568,667
|
)
|
|
$
|
(506,047
|
)
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands)
|
September 30,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
80,247
|
|
|
$
|
72,574
|
|
Accounts and Notes Receivable:
|
|
|
|
||||
Trade
|
163,955
|
|
|
151,383
|
|
||
Other Receivables
|
80,490
|
|
|
121,735
|
|
||
Inventories
|
62,622
|
|
|
66,792
|
|
||
Recoverable Income Taxes
|
—
|
|
|
13,887
|
|
||
Prepaid Expenses
|
125,490
|
|
|
297,287
|
|
||
Current Assets of Discontinued Operations
|
2,111
|
|
|
81,106
|
|
||
Total Current Assets
|
514,915
|
|
|
804,764
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Property, Plant and Equipment
|
13,920,715
|
|
|
13,794,907
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
5,506,096
|
|
|
5,062,201
|
|
||
Property, Plant and Equipment of Discontinued Operations, Net
|
—
|
|
|
936,670
|
|
||
Total Property, Plant and Equipment—Net
|
8,414,619
|
|
|
9,669,376
|
|
||
Other Assets:
|
|
|
|
||||
Deferred Income Taxes
|
149,680
|
|
|
—
|
|
||
Investment in Affiliates
|
257,423
|
|
|
237,330
|
|
||
Other
|
228,857
|
|
|
214,388
|
|
||
Other Assets of Discontinued Operations
|
—
|
|
|
4,044
|
|
||
Total Other Assets
|
635,960
|
|
|
455,762
|
|
||
TOTAL ASSETS
|
$
|
9,565,494
|
|
|
$
|
10,929,902
|
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands, except per share data)
|
September 30,
2016 |
|
December 31,
2015 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
197,479
|
|
|
$
|
250,609
|
|
Current Portion of Long-Term Debt
|
4,470
|
|
|
4,988
|
|
||
Short-Term Notes Payable
|
354,000
|
|
|
952,000
|
|
||
Accrued Income Taxes
|
5,485
|
|
|
—
|
|
||
Other Accrued Liabilities
|
508,144
|
|
|
421,827
|
|
||
Current Liabilities of Discontinued Operations
|
664
|
|
|
51,514
|
|
||
Total Current Liabilities
|
1,070,242
|
|
|
1,680,938
|
|
||
Long-Term Debt:
|
|
|
|
||||
Long-Term Debt
|
2,734,004
|
|
|
2,708,320
|
|
||
Capital Lease Obligations
|
29,805
|
|
|
34,884
|
|
||
Long-Term Debt of Discontinued Operations
|
—
|
|
|
5,001
|
|
||
Total Long-Term Debt
|
2,763,809
|
|
|
2,748,205
|
|
||
Deferred Credits and Other Liabilities:
|
|
|
|
||||
Deferred Income Taxes
|
—
|
|
|
74,629
|
|
||
Postretirement Benefits Other Than Pensions
|
613,233
|
|
|
630,892
|
|
||
Pneumoconiosis Benefits
|
117,586
|
|
|
111,903
|
|
||
Mine Closing
|
216,232
|
|
|
227,339
|
|
||
Gas Well Closing
|
164,115
|
|
|
163,842
|
|
||
Workers’ Compensation
|
68,587
|
|
|
69,812
|
|
||
Salary Retirement
|
89,305
|
|
|
91,596
|
|
||
Reclamation
|
—
|
|
|
25
|
|
||
Other
|
172,218
|
|
|
166,957
|
|
||
Deferred Credits and Other Liabilities of Discontinued Operations
|
—
|
|
|
107,988
|
|
||
Total Deferred Credits and Other Liabilities
|
1,441,276
|
|
|
1,644,983
|
|
||
TOTAL LIABILITIES
|
5,275,327
|
|
|
6,074,126
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 229,438,910 Issued and Outstanding at September 30, 2016; 229,054,236 Issued and Outstanding at December 31, 2015
|
2,298
|
|
|
2,294
|
|
||
Capital in Excess of Par Value
|
2,453,275
|
|
|
2,435,497
|
|
||
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding
|
—
|
|
|
—
|
|
||
Retained Earnings
|
2,033,849
|
|
|
2,579,834
|
|
||
Accumulated Other Comprehensive Loss
|
(342,207
|
)
|
|
(315,598
|
)
|
||
Total CONSOL Energy Inc. Stockholders’ Equity
|
4,147,215
|
|
|
4,702,027
|
|
||
Noncontrolling Interest
|
142,952
|
|
|
153,749
|
|
||
TOTAL EQUITY
|
4,290,167
|
|
|
4,855,776
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
9,565,494
|
|
|
$
|
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
|
—
|
|
|
—
|
|
|
(542,058
|
)
|
|
—
|
|
|
(542,058
|
)
|
|
4,541
|
|
|
(537,517
|
)
|
|||||||
Other Comprehensive Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,609
|
)
|
|
(26,609
|
)
|
|
—
|
|
|
(26,609
|
)
|
|||||||
Comprehensive (Loss) Income
|
—
|
|
|
—
|
|
|
(542,058
|
)
|
|
(26,609
|
)
|
|
(568,667
|
)
|
|
4,541
|
|
|
(564,126
|
)
|
|||||||
Issuance of Common Stock
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||||
Treasury Stock Activity
|
—
|
|
|
—
|
|
|
(1,633
|
)
|
|
—
|
|
|
(1,633
|
)
|
|
—
|
|
|
(1,633
|
)
|
|||||||
Tax Cost From Stock-Based Compensation
|
—
|
|
|
(5,144
|
)
|
|
—
|
|
|
—
|
|
|
(5,144
|
)
|
|
—
|
|
|
(5,144
|
)
|
|||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
22,922
|
|
|
—
|
|
|
—
|
|
|
22,922
|
|
|
903
|
|
|
23,825
|
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,241
|
)
|
|
(16,241
|
)
|
|||||||
Dividends ($0.01 per share)
|
—
|
|
|
—
|
|
|
(2,294
|
)
|
|
—
|
|
|
(2,294
|
)
|
|
—
|
|
|
(2,294
|
)
|
|||||||
Balance at September 30, 2016
|
$
|
2,298
|
|
|
$
|
2,453,275
|
|
|
$
|
2,033,849
|
|
|
$
|
(342,207
|
)
|
|
$
|
4,147,215
|
|
|
$
|
142,952
|
|
|
$
|
4,290,167
|
|
(Dollars in thousands)
|
Nine Months Ended
|
||||||
(Unaudited)
|
September 30,
|
||||||
Operating Activities:
|
2016
|
|
2015
|
||||
Net Loss
|
$
|
(537,517
|
)
|
|
$
|
(398,801
|
)
|
Adjustments to Reconcile Net Loss to Net Cash Provided By Operating Activities:
|
|
|
|
||||
Net Loss from Discontinued Operations
|
322,747
|
|
|
3,192
|
|
||
Depreciation, Depletion and Amortization
|
441,919
|
|
|
427,132
|
|
||
Impairment of Exploration and Production Properties
|
—
|
|
|
828,905
|
|
||
Non-Cash Other Post-Employment Benefits
|
—
|
|
|
(151,871
|
)
|
||
Stock-Based Compensation
|
23,825
|
|
|
19,849
|
|
||
Gain on Sale of Assets
|
(13,541
|
)
|
|
(54,329
|
)
|
||
Loss on Debt Extinguishment
|
—
|
|
|
67,751
|
|
||
Gain on Commodity Derivative Instruments
|
(53,872
|
)
|
|
(251,073
|
)
|
||
Net Cash Received in Settlement of Commodity Derivative Instruments
|
203,303
|
|
|
116,868
|
|
||
Deferred Income Taxes
|
(72,866
|
)
|
|
(273,497
|
)
|
||
Equity in Earnings of Affiliates
|
(41,239
|
)
|
|
(38,838
|
)
|
||
Return on Equity Investment
|
22,268
|
|
|
31,111
|
|
||
Changes in Operating Assets:
|
|
|
|
||||
Accounts and Notes Receivable
|
4,555
|
|
|
119,064
|
|
||
Inventories
|
4,169
|
|
|
(9,922
|
)
|
||
Prepaid Expenses
|
71,423
|
|
|
103,466
|
|
||
Changes in Other Assets
|
(14,241
|
)
|
|
22,483
|
|
||
Changes in Operating Liabilities:
|
|
|
|
||||
Accounts Payable
|
(12,654
|
)
|
|
(123,171
|
)
|
||
Accrued Interest
|
35,985
|
|
|
63,879
|
|
||
Other Operating Liabilities
|
(21,370
|
)
|
|
(105,692
|
)
|
||
Changes in Other Liabilities
|
(2,620
|
)
|
|
(12,360
|
)
|
||
Other
|
11,937
|
|
|
9,369
|
|
||
Net Cash Provided by Continuing Operating Activities
|
372,211
|
|
|
393,515
|
|
||
Net Cash Provided by Discontinued Operating Activities
|
14,427
|
|
|
10,768
|
|
||
Net Cash Provided by Operating Activities
|
386,638
|
|
|
404,283
|
|
||
Investing Activities:
|
|
|
|
||||
Capital Expenditures
|
(179,389
|
)
|
|
(864,262
|
)
|
||
Proceeds from Sales of Assets
|
38,977
|
|
|
83,044
|
|
||
Net Investments in Equity Affiliates
|
(4,555
|
)
|
|
(70,224
|
)
|
||
Net Cash Used in Continuing Investing Activities
|
(144,967
|
)
|
|
(851,442
|
)
|
||
Net Cash Provided by (Used in) Discontinued Investing Activities
|
366,251
|
|
|
(30,894
|
)
|
||
Net Cash Provided by (Used in) Investing Activities
|
221,284
|
|
|
(882,336
|
)
|
||
Financing Activities:
|
|
|
|
||||
(Payments on) Proceeds from Short-Term Borrowings
|
(598,000
|
)
|
|
945,000
|
|
||
Payments on Miscellaneous Borrowings
|
(6,222
|
)
|
|
(1,523
|
)
|
||
Payments on Long-Term Notes, including Redemption Premium
|
—
|
|
|
(1,263,719
|
)
|
||
Net Proceeds from Revolver - CNX Coal Resources LP
|
23,000
|
|
|
180,000
|
|
||
Proceeds from Sale of MLP Interest
|
—
|
|
|
148,359
|
|
||
Distributions to Noncontrolling Interest
|
(16,241
|
)
|
|
—
|
|
||
Proceeds from Issuance of Long-Term Notes
|
—
|
|
|
492,760
|
|
||
Tax Benefit from Stock-Based Compensation
|
—
|
|
|
208
|
|
||
Dividends Paid
|
(2,294
|
)
|
|
(30,991
|
)
|
||
Issuance of Common Stock
|
4
|
|
|
8,288
|
|
||
Purchases of Treasury Stock
|
—
|
|
|
(71,674
|
)
|
||
Debt Issuance and Financing Fees
|
(482
|
)
|
|
(22,586
|
)
|
||
Net Cash (Used in) Provided by Continuing Financing Activities
|
(600,235
|
)
|
|
384,122
|
|
||
Net Cash Used in Discontinued Financing Activities
|
(14
|
)
|
|
(39
|
)
|
||
Net Cash (Used in) Provided by Financing Activities
|
(600,249
|
)
|
|
384,083
|
|
||
Net Increase (Decrease) in Cash and Cash Equivalents
|
7,673
|
|
|
(93,970
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
72,574
|
|
|
176,985
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
80,247
|
|
|
$
|
83,015
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||
Anti-Dilutive Options
|
2,989,610
|
|
|
3,650,864
|
|
|
6,230,099
|
|
|
3,650,864
|
|
|||||||
Anti-Dilutive Restricted Stock Units
|
3,455
|
|
|
785,585
|
|
|
645,302
|
|
|
1,394,115
|
|
|||||||
Anti-Dilutive Performance Share Units
|
1,659,014
|
|
|
—
|
|
|
2,326,120
|
|
|
—
|
|
|||||||
Anti-Dilutive Performance Stock Options
|
802,804
|
|
|
802,804
|
|
|
802,804
|
|
|
802,804
|
|
|||||||
|
5,454,883
|
|
|
5,239,253
|
|
|
10,004,325
|
|
|
5,847,783
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Options
|
—
|
|
|
—
|
|
|
—
|
|
|
363,620
|
|
||||||||
Restricted Stock Units
|
5,920
|
|
|
90,055
|
|
|
574,310
|
|
|
576,562
|
|
||||||||
Performance Share Units
|
—
|
|
|
—
|
|
|
—
|
|
|
497,134
|
|
||||||||
|
5,920
|
|
|
90,055
|
|
|
574,310
|
|
|
1,437,316
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Income (Loss) from Continuing Operations
|
$
|
62,568
|
|
|
$
|
129,312
|
|
|
$
|
(214,770
|
)
|
|
$
|
(395,609
|
)
|
||||||||
Loss from Discontinued Operations
|
(34,975
|
)
|
|
(3,842
|
)
|
|
(322,747
|
)
|
|
(3,192
|
)
|
||||||||||||
Net Income (Loss)
|
$
|
27,593
|
|
|
$
|
125,470
|
|
|
$
|
(537,517
|
)
|
|
$
|
(398,801
|
)
|
||||||||
Net Income Attributable to Noncontrolling Interest
|
2,248
|
|
|
6,490
|
|
|
4,541
|
|
|
6,490
|
|
||||||||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
25,345
|
|
|
$
|
118,980
|
|
|
$
|
(542,058
|
)
|
|
$
|
(405,291
|
)
|
||||||||
Weighted Average Shares of Common Stock Outstanding:
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
229,438,612
|
|
|
229,036,172
|
|
|
229,369,309
|
|
|
229,230,571
|
|
||||||||||||
Effect of Stock-Based Compensation Awards
|
2,079,973
|
|
|
315,955
|
|
|
—
|
|
|
—
|
|
||||||||||||
Dilutive
|
231,518,585
|
|
|
229,352,127
|
|
|
229,369,309
|
|
|
229,230,571
|
|
||||||||||||
Income (Loss) per Share:
|
|
|
|
|
|
|
|
||||||||||||||||
Basic (Continuing Operations)
|
$
|
0.26
|
|
|
$
|
0.54
|
|
|
$
|
(0.96
|
)
|
|
$
|
(1.75
|
)
|
||||||||
Basic (Discontinued Operations)
|
(0.15
|
)
|
|
(0.02
|
)
|
|
(1.40
|
)
|
|
(0.02
|
)
|
||||||||||||
Total Basic
|
$
|
0.11
|
|
|
$
|
0.52
|
|
|
$
|
(2.36
|
)
|
|
$
|
(1.77
|
)
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
Dilutive (Continuing Operations)
|
$
|
0.26
|
|
|
$
|
0.54
|
|
|
$
|
(0.96
|
)
|
|
$
|
(1.75
|
)
|
||||||||
Dilutive (Discontinued Operations)
|
(0.15
|
)
|
|
(0.02
|
)
|
|
(1.40
|
)
|
|
(0.02
|
)
|
||||||||||||
Total Dilutive
|
$
|
0.11
|
|
|
$
|
0.52
|
|
|
$
|
(2.36
|
)
|
|
$
|
(1.77
|
)
|
|
Gains on Cash Flow Hedges
|
|
Postretirement Benefits
|
|
Total
|
||||||||||||
Balance at December 31, 2015
|
$
|
43,470
|
|
|
$
|
(359,068
|
)
|
|
$
|
(315,598
|
)
|
||||||
Other Comprehensive Loss before Reclassifications
|
—
|
|
|
(13,912
|
)
|
|
(13,912
|
)
|
|||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss
|
(33,475
|
)
|
|
20,778
|
|
|
(12,697
|
)
|
|||||||||
Current period Other Comprehensive (Loss) Income
|
(33,475
|
)
|
|
6,866
|
|
|
(26,609
|
)
|
|||||||||
Balance at September 30, 2016
|
$
|
9,995
|
|
|
$
|
(352,202
|
)
|
|
$
|
(342,207
|
)
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Derivative Instruments (Note 14)
|
|
|
|
|
|
|
|
||||||||||||||||
Natural Gas Price Swaps and Options
|
$
|
(19,597
|
)
|
|
$
|
(32,409
|
)
|
|
$
|
(52,759
|
)
|
|
$
|
(95,843
|
)
|
||||||||
Tax Expense
|
7,139
|
|
|
11,807
|
|
|
19,284
|
|
|
35,123
|
|
||||||||||||
Net of Tax
|
$
|
(12,458
|
)
|
|
$
|
(20,602
|
)
|
|
$
|
(33,475
|
)
|
|
$
|
(60,720
|
)
|
||||||||
Actuarially Determined Long-Term Liability Adjustments* (Note 5 and Note 6)
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of Prior Service Costs
|
$
|
(148
|
)
|
|
$
|
(133,851
|
)
|
|
$
|
(443
|
)
|
|
$
|
(203,159
|
)
|
||||||||
Recognized Net Actuarial Loss
|
6,332
|
|
|
41,755
|
|
|
17,549
|
|
|
80,497
|
|
||||||||||||
Curtailment Loss
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||||||||
Settlement Loss
|
3,651
|
|
|
3,132
|
|
|
17,347
|
|
|
3,132
|
|
||||||||||||
Total
|
9,835
|
|
|
(88,959
|
)
|
|
34,453
|
|
|
(119,525
|
)
|
||||||||||||
Tax (Benefit) Expense
|
(3,664
|
)
|
|
33,436
|
|
|
(12,861
|
)
|
|
44,923
|
|
||||||||||||
Net of Tax
|
$
|
6,171
|
|
|
$
|
(55,523
|
)
|
|
$
|
21,592
|
|
|
$
|
(74,602
|
)
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Coal Sales
|
$
|
6,974
|
|
|
$
|
80,432
|
|
|
$
|
102,904
|
|
|
$
|
286,557
|
|
Freight-Outside Coal
|
305
|
|
|
783
|
|
|
1,322
|
|
|
3,791
|
|
||||
Miscellaneous Other Income
|
2,204
|
|
|
3
|
|
|
2,237
|
|
|
33
|
|
||||
Gain (Loss) on Sale of Assets
|
(53,119
|
)
|
|
80
|
|
|
(91,372
|
)
|
|
274
|
|
||||
Total Revenue and Other Income
|
$
|
(43,636
|
)
|
|
$
|
81,298
|
|
|
$
|
15,091
|
|
|
$
|
290,655
|
|
Total Costs
|
11,789
|
|
|
92,865
|
|
|
124,865
|
|
|
302,055
|
|
||||
Loss From Operations Before Income Taxes
|
$
|
(55,425
|
)
|
|
$
|
(11,567
|
)
|
|
$
|
(109,774
|
)
|
|
$
|
(11,400
|
)
|
Impairment on Assets Held for Sale
|
—
|
|
|
—
|
|
|
355,681
|
|
|
—
|
|
||||
Income Tax Benefit
|
(20,450
|
)
|
|
(7,725
|
)
|
|
(142,708
|
)
|
|
(8,208
|
)
|
||||
Loss From Discontinued Operations, net
|
$
|
(34,975
|
)
|
|
$
|
(3,842
|
)
|
|
$
|
(322,747
|
)
|
|
$
|
(3,192
|
)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Assets:
|
|
|
|
||||
Accounts Receivable - Trade
|
$
|
2,107
|
|
|
$
|
49,125
|
|
Inventories
|
—
|
|
|
30,646
|
|
||
Prepaid Expense
|
—
|
|
|
970
|
|
||
Other Current Assets
|
4
|
|
|
365
|
|
||
Total Current Assets
|
$
|
2,111
|
|
|
$
|
81,106
|
|
Property, Plant and Equipment, Net
|
—
|
|
|
936,670
|
|
||
Other Assets
|
—
|
|
|
4,044
|
|
||
Total Assets of Discontinued Operations
|
$
|
2,111
|
|
|
$
|
1,021,820
|
|
Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
303
|
|
|
$
|
20,786
|
|
Other Current Liabilities
|
361
|
|
|
30,728
|
|
||
Total Current Liabilities
|
$
|
664
|
|
|
$
|
51,514
|
|
Long Term Debt
|
—
|
|
|
5,001
|
|
||
Pneumoconiosis Benefits
|
—
|
|
|
1,129
|
|
||
Mine Closing
|
—
|
|
|
71,941
|
|
||
Reclamation
|
—
|
|
|
34,126
|
|
||
Other liabilities
|
—
|
|
|
792
|
|
||
Total Liabilities of Discontinued Operations
|
$
|
664
|
|
|
$
|
164,503
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Equity in Earnings of Affiliates - CONE
|
$
|
14,153
|
|
|
$
|
12,733
|
|
|
$
|
36,709
|
|
|
$
|
29,770
|
|
Rental Income
|
8,983
|
|
|
9,439
|
|
|
27,258
|
|
|
28,437
|
|
||||
Gathering Revenue
|
2,602
|
|
|
1,426
|
|
|
7,998
|
|
|
7,379
|
|
||||
Royalty Income - Non-Operated Coal
|
2,011
|
|
|
4,847
|
|
|
6,664
|
|
|
12,989
|
|
||||
Purchased Coal Sales
|
1,908
|
|
|
—
|
|
|
2,512
|
|
|
1,596
|
|
||||
Equity in Earnings of Affiliates - Other
|
1,202
|
|
|
2,855
|
|
|
4,530
|
|
|
9,068
|
|
||||
Interest Income
|
214
|
|
|
361
|
|
|
975
|
|
|
1,868
|
|
||||
Right of Way Issuance
|
149
|
|
|
5,252
|
|
|
17,952
|
|
|
13,202
|
|
||||
Coal Contract Buyout
|
—
|
|
|
—
|
|
|
6,288
|
|
|
—
|
|
||||
Other
|
1,171
|
|
|
1,562
|
|
|
3,273
|
|
|
6,970
|
|
||||
Total Miscellaneous Other Income
|
$
|
32,393
|
|
|
$
|
38,475
|
|
|
$
|
114,159
|
|
|
$
|
111,279
|
|
|
Pension Benefits
|
|
Other Post-Employment Benefits
|
||||||||||||||||||||||||||||
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Service Cost
|
$
|
482
|
|
|
$
|
2,162
|
|
|
$
|
1,445
|
|
|
$
|
6,862
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest Cost
|
5,895
|
|
|
8,042
|
|
|
19,578
|
|
|
25,202
|
|
|
6,060
|
|
|
6,677
|
|
|
18,181
|
|
|
20,561
|
|
||||||||
Expected Return on Plan Assets
|
(11,195
|
)
|
|
(12,903
|
)
|
|
(34,933
|
)
|
|
(38,282
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of Prior Service Credits
|
(148
|
)
|
|
(166
|
)
|
|
(443
|
)
|
|
(518
|
)
|
|
—
|
|
|
(133,685
|
)
|
|
—
|
|
|
(202,641
|
)
|
||||||||
Recognized net Actuarial Loss
|
2,743
|
|
|
5,335
|
|
|
6,975
|
|
|
19,215
|
|
|
4,792
|
|
|
37,713
|
|
|
14,376
|
|
|
65,161
|
|
||||||||
Settlement Loss
|
3,651
|
|
|
3,132
|
|
|
17,347
|
|
|
3,132
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Curtailment Loss
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net Periodic Benefit Cost (Credit)
|
$
|
1,428
|
|
|
$
|
5,607
|
|
|
$
|
9,969
|
|
|
$
|
15,616
|
|
|
$
|
10,852
|
|
|
$
|
(89,295
|
)
|
|
$
|
32,557
|
|
|
$
|
(116,919
|
)
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||||||||||||||||||
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Service Cost
|
$
|
1,041
|
|
|
$
|
1,623
|
|
|
$
|
3,285
|
|
|
$
|
4,868
|
|
|
$
|
1,904
|
|
|
$
|
2,347
|
|
|
$
|
5,713
|
|
|
$
|
7,042
|
|
Interest Cost
|
1,053
|
|
|
1,279
|
|
|
3,230
|
|
|
3,837
|
|
|
638
|
|
|
799
|
|
|
1,913
|
|
|
2,396
|
|
||||||||
Amortization of Actuarial Gain
|
(1,188
|
)
|
|
(1,394
|
)
|
|
(3,759
|
)
|
|
(4,182
|
)
|
|
(101
|
)
|
|
(8
|
)
|
|
(303
|
)
|
|
(23
|
)
|
||||||||
State Administrative Fees and Insurance Bond Premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
792
|
|
|
888
|
|
|
2,491
|
|
|
2,764
|
|
||||||||
Curtailment Gain
|
—
|
|
|
—
|
|
|
(1,307
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net Periodic Benefit Cost
|
$
|
906
|
|
|
$
|
1,508
|
|
|
$
|
1,449
|
|
|
$
|
4,523
|
|
|
$
|
3,233
|
|
|
$
|
4,026
|
|
|
$
|
9,814
|
|
|
$
|
12,179
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Coal
|
$
|
8,367
|
|
|
$
|
4,660
|
|
Supplies
|
54,255
|
|
|
62,132
|
|
||
Total Inventories
|
$
|
62,622
|
|
|
$
|
66,792
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
E&P Property, Plant and Equipment
|
|
|
|
||||
Intangible drilling cost
|
$
|
3,515,485
|
|
|
$
|
3,452,989
|
|
Proved gas properties
|
1,933,211
|
|
|
1,922,602
|
|
||
Unproved gas properties
|
1,429,905
|
|
|
1,421,083
|
|
||
Gas gathering equipment
|
1,133,840
|
|
|
1,147,173
|
|
||
Gas wells and related equipment
|
819,902
|
|
|
785,744
|
|
||
Other gas assets
|
127,984
|
|
|
125,691
|
|
||
Gas advance royalties
|
15,265
|
|
|
19,745
|
|
||
Total E&P Property, Plant and Equipment
|
$
|
8,975,592
|
|
|
$
|
8,875,027
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
3,002,288
|
|
|
2,695,674
|
|
||
Total E&P Property, Plant and Equipment - Net
|
$
|
5,973,304
|
|
|
$
|
6,179,353
|
|
|
|
|
|
||||
PA Mining Operations Property, Plant and Equipment
|
|
|
|
||||
Coal and other plant and equipment
|
$
|
2,300,650
|
|
|
$
|
2,284,175
|
|
Coal properties and surface lands
|
457,372
|
|
|
456,044
|
|
||
Airshafts
|
368,031
|
|
|
351,870
|
|
||
Mine development
|
326,153
|
|
|
326,153
|
|
||
Coal advance mining royalties
|
16,294
|
|
|
16,263
|
|
||
Leased coal lands
|
26,569
|
|
|
26,402
|
|
||
Total PA Mining Operations and Other Property, Plant and Equipment
|
$
|
3,495,069
|
|
|
$
|
3,460,907
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
1,728,423
|
|
|
1,603,642
|
|
||
Total PA Mining Operations and Other Property, Plant and Equipment - Net
|
$
|
1,766,646
|
|
|
$
|
1,857,265
|
|
|
|
|
|
||||
Other Property, Plant and Equipment
|
|
|
|
||||
Coal and other plant and equipment
|
561,575
|
|
|
569,261
|
|
||
Coal properties and surface lands
|
481,371
|
|
|
313,493
|
|
||
Airshafts
|
10,002
|
|
|
10,002
|
|
||
Mine development
|
17,987
|
|
|
18,145
|
|
||
Coal advance mining royalties
|
314,537
|
|
|
312,452
|
|
||
Leased coal lands
|
64,582
|
|
|
235,620
|
|
||
Total Other Property, Plant and Equipment
|
$
|
1,450,054
|
|
|
$
|
1,458,973
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
775,385
|
|
|
762,885
|
|
||
Total Other Property, Plant and Equipment - Net
|
$
|
674,669
|
|
|
$
|
696,088
|
|
|
|
|
|
||||
Total Company Property, Plant and Equipment
|
$
|
13,920,715
|
|
|
$
|
13,794,907
|
|
Less - Total Company Accumulated Depreciation, Depletion and Amortization
|
5,506,096
|
|
|
5,062,201
|
|
||
Total Property, Plant and Equipment of Continuing Operations - Net
|
$
|
8,414,619
|
|
|
$
|
8,732,706
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Debt:
|
|
|
|
||||
Senior Notes due April 2022 at 5.875% (Principal of $1,850,000 plus Unamortized Premium of $4,953 and $5,617, respectively)
|
$
|
1,854,953
|
|
|
$
|
1,855,617
|
|
Senior Notes due April 2023 at 8.00% (Principal of $500,000 less Unamortized Discount of $5,882 and $6,561, respectively)
|
494,118
|
|
|
493,439
|
|
||
Revolving Credit Facility - CNX Coal Resources LP
|
208,000
|
|
|
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 $2,146 and $3,096 less Unamortized Discount of $162 and $327, respectively)
|
1,984
|
|
|
2,769
|
|
||
Less: Unamortized Debt Issuance Costs
|
29,028
|
|
|
33,017
|
|
||
|
2,731,455
|
|
|
2,705,718
|
|
||
Net Amounts Due in One Year and Current Unamortized Debt Issuance Costs*
|
(2,549
|
)
|
|
(2,602
|
)
|
||
Long-Term Debt
|
$
|
2,734,004
|
|
|
$
|
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
|
$
|
82,273
|
|
|
$
|
54,574
|
|
|
$
|
27,699
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Environmental
|
998
|
|
|
998
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
240,490
|
|
|
37,477
|
|
|
203,013
|
|
|
—
|
|
|
—
|
|
|||||
Total Letters of Credit
|
323,761
|
|
|
93,049
|
|
|
230,712
|
|
|
—
|
|
|
—
|
|
|||||
Surety Bonds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
112,810
|
|
|
111,760
|
|
|
1,050
|
|
|
—
|
|
|
—
|
|
|||||
Environmental
|
528,430
|
|
|
523,868
|
|
|
4,562
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
22,522
|
|
|
21,371
|
|
|
1,149
|
|
|
2
|
|
|
—
|
|
|||||
Total Surety Bonds
|
663,762
|
|
|
656,999
|
|
|
6,761
|
|
|
2
|
|
|
—
|
|
|||||
Guarantees:
|
|
|
|
|
|
|
|
|
|
||||||||||
Coal
|
8,350
|
|
|
8,350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
77,622
|
|
|
41,693
|
|
|
18,386
|
|
|
13,860
|
|
|
3,683
|
|
|||||
Total Guarantees
|
85,972
|
|
|
50,043
|
|
|
18,386
|
|
|
13,860
|
|
|
3,683
|
|
|||||
Total Commitments
|
$
|
1,073,495
|
|
|
$
|
800,091
|
|
|
$
|
255,859
|
|
|
$
|
13,862
|
|
|
$
|
3,683
|
|
Obligations Due
|
Amount
|
||
Less than 1 year
|
$
|
199,528
|
|
1 - 3 years
|
270,334
|
|
|
3 - 5 years
|
223,058
|
|
|
More than 5 years
|
587,331
|
|
|
Total Purchase Obligations
|
$
|
1,280,251
|
|
Asset Derivative Instruments
|
|
Liability Derivative Instruments
|
||||||||||||||
|
September 30,
|
|
December 31,
|
|
|
September 30,
|
|
December 31,
|
||||||||
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
|
||||||||
Prepaid Expense
|
$
|
36,686
|
|
|
$
|
234,409
|
|
|
Other Accrued Liabilities
|
$
|
51,829
|
|
|
$
|
—
|
|
Other Assets
|
39,124
|
|
|
44,539
|
|
|
Other Liabilities
|
40,636
|
|
|
5,137
|
|
||||
Total Asset
|
$
|
75,810
|
|
|
$
|
278,948
|
|
|
Total Liability
|
$
|
92,465
|
|
|
$
|
5,137
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basis Only Swaps:
|
|
|
|
|
|
|
|
|
||||||||
Prepaid Expense
|
$
|
55,209
|
|
|
$
|
5,429
|
|
|
Other Accrued Liabilities
|
$
|
6,909
|
|
|
$
|
12,206
|
|
Other Assets
|
36,998
|
|
|
1,093
|
|
|
Other Liabilities
|
4,275
|
|
|
1,569
|
|
||||
Total Asset
|
$
|
92,207
|
|
|
$
|
6,522
|
|
|
Total Liability
|
$
|
11,184
|
|
|
$
|
13,775
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Cash Received (Paid) in Settlement of Commodity Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
||||||||
Natural Gas
|
$
|
28,175
|
|
|
$
|
43,169
|
|
|
$
|
201,624
|
|
|
$
|
115,525
|
|
Propane
|
22
|
|
|
—
|
|
|
(92
|
)
|
|
—
|
|
||||
Natural Gas Basis Swaps
|
10,440
|
|
|
1,300
|
|
|
1,771
|
|
|
1,343
|
|
||||
Total Cash Received in Settlement of Commodity Derivative Instruments
|
38,637
|
|
|
44,469
|
|
|
203,303
|
|
|
116,868
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Unrealized Gain (Loss) on Commodity Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
||||||||
Natural Gas
|
54,676
|
|
|
70,362
|
|
|
(289,722
|
)
|
|
41,189
|
|
||||
Propane
|
48
|
|
|
—
|
|
|
(744
|
)
|
|
—
|
|
||||
Natural Gas Basis Swaps
|
85,234
|
|
|
(3,634
|
)
|
|
88,276
|
|
|
(2,827
|
)
|
||||
Reclassified from Accumulated OCI
|
19,597
|
|
|
32,409
|
|
|
52,759
|
|
|
95,843
|
|
||||
Total Unrealized Gain (Loss) on Commodity Derivative Instruments
|
159,555
|
|
|
99,137
|
|
|
(149,431
|
)
|
|
134,205
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain (Loss) on Commodity Derivative Instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
||||||||
Natural Gas
|
82,851
|
|
|
113,531
|
|
|
(88,098
|
)
|
|
156,714
|
|
||||
Propane
|
70
|
|
|
—
|
|
|
(836
|
)
|
|
—
|
|
||||
Natural Gas Basis Swaps
|
95,674
|
|
|
(2,334
|
)
|
|
90,047
|
|
|
(1,484
|
)
|
||||
Reclassified from Accumulated OCI
|
19,597
|
|
|
32,409
|
|
|
52,759
|
|
|
95,843
|
|
||||
Total Gain on Commodity Derivative Instruments
|
$
|
198,192
|
|
|
$
|
143,606
|
|
|
$
|
53,872
|
|
|
$
|
251,073
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning Balance – Accumulated OCI
|
$
|
22,453
|
|
|
$
|
81,403
|
|
|
$
|
43,470
|
|
|
$
|
121,521
|
|
Less: Gain Reclassified from Accumulated OCI (Net of tax: $7,139, $11,807, $19,284, $35,123)
|
(12,458
|
)
|
|
(20,602
|
)
|
|
(33,475
|
)
|
|
(60,720
|
)
|
||||
Ending Balance – Accumulated OCI
|
$
|
9,995
|
|
|
$
|
60,801
|
|
|
$
|
9,995
|
|
|
$
|
60,801
|
|
|
Fair Value Measurements at September 30, 2016
|
|
Fair Value Measurements at December 31, 2015
|
||||||||||||||||||||
Description
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||||
Gas Derivatives
|
$
|
—
|
|
|
$
|
64,368
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
266,558
|
|
|
$
|
—
|
|
Murray Energy Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,463
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,228
|
)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Cash and Cash Equivalents
|
$
|
80,247
|
|
|
$
|
80,247
|
|
|
$
|
72,574
|
|
|
$
|
72,574
|
|
Short-Term Notes Payable
|
$
|
354,000
|
|
|
$
|
354,000
|
|
|
$
|
952,000
|
|
|
$
|
952,000
|
|
Long-Term Debt
|
$
|
2,760,483
|
|
|
$
|
2,563,492
|
|
|
$
|
2,738,735
|
|
|
$
|
1,808,936
|
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Mining Operations
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||
Sales—Outside
|
$
|
107,676
|
|
|
$
|
40,312
|
|
|
$
|
46,917
|
|
|
$
|
11,008
|
|
|
$
|
205,913
|
|
|
$
|
267,685
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
473,598
|
|
|
Gain on Commodity Derivative Instruments
|
23,548
|
|
|
4,646
|
|
|
8,197
|
|
|
161,801
|
|
|
198,192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198,192
|
|
|
|||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,714
|
|
|
—
|
|
|
4,714
|
|
|
|||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
12,086
|
|
|
12,086
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,086
|
|
|
|||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,392
|
|
|
—
|
|
|
—
|
|
|
9,392
|
|
|
|||||||||
Total Sales and Freight
|
$
|
131,224
|
|
|
$
|
44,958
|
|
|
$
|
55,114
|
|
|
$
|
184,895
|
|
|
$
|
416,191
|
|
|
$
|
277,077
|
|
|
$
|
4,714
|
|
|
$
|
—
|
|
|
$
|
697,982
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
10,465
|
|
|
$
|
4,342
|
|
|
$
|
6,989
|
|
|
$
|
139,279
|
|
|
$
|
161,075
|
|
|
$
|
34,741
|
|
|
$
|
(80,390
|
)
|
|
$
|
—
|
|
|
$
|
115,426
|
|
(A)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,537,210
|
|
|
$
|
2,007,767
|
|
|
$
|
1,018,406
|
|
|
$
|
2,111
|
|
|
$
|
9,565,494
|
|
(B)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
101,257
|
|
|
$
|
42,370
|
|
|
$
|
8,085
|
|
|
$
|
—
|
|
|
$
|
151,712
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
48,746
|
|
|
$
|
12,292
|
|
|
$
|
3,094
|
|
|
$
|
—
|
|
|
$
|
64,132
|
|
|
|
Marcellus
Shale
|
|
Utica
Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Mining Operations
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||
Sales—Outside
|
$
|
75,003
|
|
|
$
|
20,617
|
|
|
$
|
48,860
|
|
|
$
|
13,058
|
|
|
$
|
157,538
|
|
|
$
|
323,171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
480,709
|
|
(C)
|
Gain on Commodity Derivative Instruments
|
24,039
|
|
|
955
|
|
|
14,285
|
|
|
104,327
|
|
|
143,606
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
143,606
|
|
|
|||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,129
|
|
|
—
|
|
|
5,129
|
|
|
|||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
2,535
|
|
|
2,535
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,535
|
|
|
|||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,436
|
|
|
—
|
|
|
—
|
|
|
2,436
|
|
|
|||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
—
|
|
|
(298
|
)
|
|
—
|
|
|
|||||||||
Total Sales and Freight
|
$
|
99,042
|
|
|
$
|
21,572
|
|
|
$
|
63,443
|
|
|
$
|
119,920
|
|
|
$
|
303,977
|
|
|
$
|
325,607
|
|
|
$
|
5,129
|
|
|
$
|
(298
|
)
|
|
$
|
634,415
|
|
|
(Loss) Earnings Before Income Taxes
|
$
|
(13,975
|
)
|
|
$
|
(10,505
|
)
|
|
$
|
11,541
|
|
|
$
|
63,126
|
|
|
$
|
50,187
|
|
|
$
|
132,327
|
|
|
$
|
12,964
|
|
|
$
|
(298
|
)
|
|
$
|
195,180
|
|
(D)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,843,935
|
|
|
$
|
2,141,700
|
|
|
$
|
1,067,176
|
|
|
$
|
1,028,463
|
|
|
$
|
11,081,274
|
|
(E)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
92,083
|
|
|
$
|
43,459
|
|
|
$
|
11,302
|
|
|
$
|
—
|
|
|
$
|
146,844
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
209,560
|
|
|
$
|
34,978
|
|
|
$
|
3,240
|
|
|
$
|
—
|
|
|
$
|
247,778
|
|
|
(C)
|
Included in the PA Mining Operations segment are sales of
$73,780
to Duke Energy, which comprises over 10% of sales.
|
(D)
|
Includes equity in earnings of unconsolidated affiliates of
$13,467
and
$2,121
for E&P and Other, respectively.
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Mining Operations
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||
Sales—Outside
|
$
|
287,465
|
|
|
$
|
115,610
|
|
|
$
|
122,410
|
|
|
$
|
29,616
|
|
|
$
|
555,101
|
|
|
$
|
744,411
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,299,512
|
|
|
Gain (Loss) on Commodity Derivative Instruments
|
120,982
|
|
|
24,674
|
|
|
43,796
|
|
|
(135,580
|
)
|
|
53,872
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,872
|
|
|
|||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,687
|
|
|
—
|
|
|
20,687
|
|
|
|||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
28,633
|
|
|
28,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,633
|
|
|
|||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,949
|
|
|
—
|
|
|
—
|
|
|
33,949
|
|
|
|||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
—
|
|
|
(424
|
)
|
|
—
|
|
|
|||||||||
Total Sales and Freight
|
$
|
408,447
|
|
|
$
|
140,284
|
|
|
$
|
166,630
|
|
|
$
|
(77,331
|
)
|
|
$
|
638,030
|
|
|
$
|
778,360
|
|
|
$
|
20,687
|
|
|
$
|
(424
|
)
|
|
$
|
1,436,653
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
43,251
|
|
|
$
|
17,521
|
|
|
$
|
24,813
|
|
|
$
|
(241,971
|
)
|
|
$
|
(156,386
|
)
|
|
$
|
80,588
|
|
|
$
|
(210,346
|
)
|
|
$
|
(424
|
)
|
|
$
|
(286,568
|
)
|
(F)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,537,210
|
|
|
$
|
2,007,767
|
|
|
$
|
1,018,406
|
|
|
$
|
2,111
|
|
|
$
|
9,565,494
|
|
(G)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
312,122
|
|
|
$
|
125,334
|
|
|
$
|
4,463
|
|
|
$
|
—
|
|
|
$
|
441,919
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
134,967
|
|
|
$
|
38,295
|
|
|
$
|
6,127
|
|
|
$
|
—
|
|
|
$
|
179,389
|
|
|
|
Marcellus
Shale
|
|
Utica
Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Mining Operations
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||
Sales—Outside
|
$
|
282,626
|
|
|
$
|
56,880
|
|
|
$
|
156,827
|
|
|
$
|
45,297
|
|
|
$
|
541,630
|
|
|
$
|
1,026,596
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,568,226
|
|
(H)
|
Gain on Commodity Derivative Instruments
|
55,090
|
|
|
955
|
|
|
46,695
|
|
|
148,333
|
|
|
251,073
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
251,073
|
|
|
|||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,596
|
|
|
—
|
|
|
24,596
|
|
|
|||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
7,649
|
|
|
7,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,649
|
|
|
|||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,204
|
|
|
—
|
|
|
—
|
|
|
10,204
|
|
|
|||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
1,194
|
|
|
—
|
|
|
1,194
|
|
|
—
|
|
|
—
|
|
|
(1,194
|
)
|
|
—
|
|
|
|||||||||
Total Sales and Freight
|
$
|
337,716
|
|
|
$
|
57,835
|
|
|
$
|
204,716
|
|
|
$
|
201,279
|
|
|
$
|
801,546
|
|
|
$
|
1,036,800
|
|
|
$
|
24,596
|
|
|
$
|
(1,194
|
)
|
|
$
|
1,861,748
|
|
|
Earnings (Loss) Before Income Taxes
|
$
|
31,674
|
|
|
$
|
(21,336
|
)
|
|
$
|
44,106
|
|
|
$
|
(819,637
|
)
|
|
$
|
(765,193
|
)
|
|
$
|
292,533
|
|
|
$
|
(172,936
|
)
|
|
$
|
(1,194
|
)
|
|
$
|
(646,790
|
)
|
(I)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,843,935
|
|
|
$
|
2,141,700
|
|
|
$
|
1,067,176
|
|
|
$
|
1,028,463
|
|
|
$
|
11,081,274
|
|
(J)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
269,377
|
|
|
$
|
136,536
|
|
|
$
|
21,219
|
|
|
$
|
—
|
|
|
$
|
427,132
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
749,015
|
|
|
$
|
102,939
|
|
|
$
|
12,308
|
|
|
$
|
—
|
|
|
$
|
864,262
|
|
|
(H)
|
Included in the PA Mining Operations segment are sales of
$183,864
to Duke Energy, which comprises over 10% of sales.
|
(I)
|
Includes equity in earnings of unconsolidated affiliates of
$31,877
and
$6,961
for E&P and Other, respectively.
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
Income (Loss) Before Income Taxes:
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Segment Income (Loss) Before Income Taxes for reportable business segments
|
$
|
195,816
|
|
|
$
|
182,514
|
|
|
$
|
(75,798
|
)
|
|
$
|
(472,660
|
)
|
Segment (Loss) Income Before Income Taxes for all other business segments
|
(33,073
|
)
|
|
61,522
|
|
|
(65,737
|
)
|
|
45,000
|
|
||||
Interest expense, net
|
(47,317
|
)
|
|
(48,558
|
)
|
|
(144,609
|
)
|
|
(150,185
|
)
|
||||
Eliminations
|
—
|
|
|
(298
|
)
|
|
(424
|
)
|
|
(1,194
|
)
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
(67,751
|
)
|
||||
Income (Loss) Before Income Taxes
|
$
|
115,426
|
|
|
$
|
195,180
|
|
|
$
|
(286,568
|
)
|
|
$
|
(646,790
|
)
|
Total Assets:
|
September 30,
|
||||||
2016
|
|
2015
|
|||||
Segment assets for total reportable business segments
|
$
|
8,544,977
|
|
|
$
|
8,985,635
|
|
Segment assets for all other business segments
|
794,917
|
|
|
914,042
|
|
||
Items excluded from segment assets:
|
|
|
|
||||
Cash and other investments
|
73,809
|
|
|
79,887
|
|
||
Recoverable income taxes
|
—
|
|
|
64,693
|
|
||
Deferred tax assets
|
149,680
|
|
|
8,554
|
|
||
Discontinued Operations
|
2,111
|
|
|
1,028,463
|
|
||
Total Consolidated Assets
|
$
|
9,565,494
|
|
|
$
|
11,081,274
|
|
|
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
|
$
|
—
|
|
|
$
|
205,913
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
205,913
|
|
Gain on Commodity Derivative Instruments
|
—
|
|
|
198,192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198,192
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
200,763
|
|
|
66,922
|
|
|
—
|
|
|
—
|
|
|
267,685
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
4,714
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,714
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
12,086
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,086
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
6,985
|
|
|
2,407
|
|
|
—
|
|
|
—
|
|
|
9,392
|
|
|||||||
Miscellaneous Other Income
|
56,836
|
|
|
18,175
|
|
|
13,737
|
|
|
483
|
|
|
—
|
|
|
(56,838
|
)
|
|
32,393
|
|
|||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
15,342
|
|
|
(141
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
15,203
|
|
|||||||
Total Revenue and Other Income
|
56,836
|
|
|
449,708
|
|
|
226,058
|
|
|
69,814
|
|
|
—
|
|
|
(56,838
|
)
|
|
745,578
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
22,602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,602
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
94,796
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,796
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
9,027
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,027
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
101,257
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101,257
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
384
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
384
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
11,940
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,940
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
21,760
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,760
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
26,198
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,198
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
287,964
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
287,964
|
|
|||||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
—
|
|
|
—
|
|
|
137,186
|
|
|
45,531
|
|
|
—
|
|
|
—
|
|
|
182,717
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
31,778
|
|
|
10,592
|
|
|
—
|
|
|
—
|
|
|
42,370
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
6,985
|
|
|
2,407
|
|
|
—
|
|
|
—
|
|
|
9,392
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
4,993
|
|
|
2,660
|
|
|
—
|
|
|
—
|
|
|
7,653
|
|
|||||||
Total PA Mining Operations Costs
|
—
|
|
|
—
|
|
|
180,942
|
|
|
61,190
|
|
|
—
|
|
|
—
|
|
|
242,132
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
7,692
|
|
|
—
|
|
|
32,386
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
40,085
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
4,569
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,569
|
|
|||||||
Depreciation, Depletion and Amortization
|
150
|
|
|
—
|
|
|
7,935
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,085
|
|
|||||||
Interest Expense
|
42,812
|
|
|
669
|
|
|
1,613
|
|
|
2,223
|
|
|
—
|
|
|
—
|
|
|
47,317
|
|
|||||||
Total Other Costs
|
50,654
|
|
|
669
|
|
|
46,503
|
|
|
2,223
|
|
|
7
|
|
|
—
|
|
|
100,056
|
|
|||||||
Total Costs And Expenses
|
50,654
|
|
|
288,633
|
|
|
227,445
|
|
|
63,413
|
|
|
7
|
|
|
—
|
|
|
630,152
|
|
|||||||
Earnings (Loss) Before Income Tax
|
6,182
|
|
|
161,075
|
|
|
(1,387
|
)
|
|
6,401
|
|
|
(7
|
)
|
|
(56,838
|
)
|
|
115,426
|
|
|||||||
Income Taxes
|
(19,163
|
)
|
|
64,241
|
|
|
7,783
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
52,858
|
|
|||||||
Income (Loss) From Continuing Operations
|
25,345
|
|
|
96,834
|
|
|
(9,170
|
)
|
|
6,401
|
|
|
(4
|
)
|
|
(56,838
|
)
|
|
62,568
|
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,975
|
)
|
|
—
|
|
|
(34,975
|
)
|
|||||||
Net Income (Loss)
|
25,345
|
|
|
96,834
|
|
|
(9,170
|
)
|
|
6,401
|
|
|
(34,979
|
)
|
|
(56,838
|
)
|
|
27,593
|
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,248
|
|
|
2,248
|
|
|||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
25,345
|
|
|
$
|
96,834
|
|
|
$
|
(9,170
|
)
|
|
$
|
6,401
|
|
|
$
|
(34,979
|
)
|
|
$
|
(59,086
|
)
|
|
$
|
25,345
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC
Non-Guarantor |
|
Other Subsidiary
Non-Guarantors |
|
Elimination
|
|
Consolidated
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and Cash Equivalents
|
$
|
72,879
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
6,314
|
|
|
$
|
960
|
|
|
$
|
—
|
|
|
$
|
80,247
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trade
|
—
|
|
|
79,276
|
|
|
63,678
|
|
|
21,001
|
|
|
—
|
|
|
—
|
|
|
163,955
|
|
|||||||
Other Receivables
|
30,046
|
|
|
46,204
|
|
|
4,040
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
80,490
|
|
|||||||
Inventories
|
—
|
|
|
12,088
|
|
|
38,954
|
|
|
11,580
|
|
|
—
|
|
|
—
|
|
|
62,622
|
|
|||||||
Prepaid Expenses
|
10,232
|
|
|
94,009
|
|
|
16,510
|
|
|
4,739
|
|
|
—
|
|
|
—
|
|
|
125,490
|
|
|||||||
Current Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,111
|
|
|
—
|
|
|
2,111
|
|
|||||||
Total Current Assets
|
113,157
|
|
|
231,671
|
|
|
123,182
|
|
|
43,834
|
|
|
3,071
|
|
|
—
|
|
|
514,915
|
|
|||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property, Plant and Equipment
|
139,302
|
|
|
8,975,592
|
|
|
3,932,054
|
|
|
873,767
|
|
|
—
|
|
|
—
|
|
|
13,920,715
|
|
|||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
104,680
|
|
|
3,002,288
|
|
|
1,967,022
|
|
|
432,106
|
|
|
—
|
|
|
—
|
|
|
5,506,096
|
|
|||||||
Total Property, Plant and Equipment-Net
|
34,622
|
|
|
5,973,304
|
|
|
1,965,032
|
|
|
441,661
|
|
|
—
|
|
|
—
|
|
|
8,414,619
|
|
|||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deferred Income Taxes
|
265,425
|
|
|
(115,745
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149,680
|
|
|||||||
Investment in Affiliates
|
10,608,821
|
|
|
253,637
|
|
|
20,537
|
|
|
—
|
|
|
—
|
|
|
(10,625,572
|
)
|
|
257,423
|
|
|||||||
Other
|
23,021
|
|
|
78,598
|
|
|
105,936
|
|
|
21,302
|
|
|
—
|
|
|
—
|
|
|
228,857
|
|
|||||||
Total Other Assets
|
10,897,267
|
|
|
216,490
|
|
|
126,473
|
|
|
21,302
|
|
|
—
|
|
|
(10,625,572
|
)
|
|
635,960
|
|
|||||||
Total Assets
|
$
|
11,045,046
|
|
|
$
|
6,421,465
|
|
|
$
|
2,214,687
|
|
|
$
|
506,797
|
|
|
$
|
3,071
|
|
|
$
|
(10,625,572
|
)
|
|
$
|
9,565,494
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts Payable
|
$
|
29,313
|
|
|
$
|
85,841
|
|
|
$
|
54,061
|
|
|
$
|
18,095
|
|
|
$
|
—
|
|
|
$
|
10,169
|
|
|
$
|
197,479
|
|
Accounts Payable (Recoverable)-Related Parties
|
3,945,832
|
|
|
1,367,030
|
|
|
(5,094,587
|
)
|
|
1,320
|
|
|
(209,426
|
)
|
|
(10,169
|
)
|
|
—
|
|
|||||||
Current Portion of Long-Term Debt
|
(2,810
|
)
|
|
6,288
|
|
|
902
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
4,470
|
|
|||||||
Short-Term Notes Payable
|
354,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
354,000
|
|
|||||||
Accrued Income Taxes
|
(53,541
|
)
|
|
59,026
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,485
|
|
|||||||
Other Accrued Liabilities
|
95,891
|
|
|
147,961
|
|
|
223,196
|
|
|
41,096
|
|
|
—
|
|
|
—
|
|
|
508,144
|
|
|||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
664
|
|
|
—
|
|
|
664
|
|
|||||||
Total Current Liabilities
|
4,368,685
|
|
|
1,666,146
|
|
|
(4,816,428
|
)
|
|
60,601
|
|
|
(208,762
|
)
|
|
—
|
|
|
1,070,242
|
|
|||||||
Long-Term Debt:
|
2,425,071
|
|
|
28,473
|
|
|
105,480
|
|
|
204,785
|
|
|
—
|
|
|
—
|
|
|
2,763,809
|
|
|||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
613,233
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
613,233
|
|
|||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
115,049
|
|
|
2,537
|
|
|
—
|
|
|
—
|
|
|
117,586
|
|
|||||||
Mine Closing
|
—
|
|
|
—
|
|
|
207,062
|
|
|
9,170
|
|
|
—
|
|
|
—
|
|
|
216,232
|
|
|||||||
Gas Well Closing
|
—
|
|
|
134,258
|
|
|
29,756
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
164,115
|
|
|||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
65,454
|
|
|
3,133
|
|
|
—
|
|
|
—
|
|
|
68,587
|
|
|||||||
Salary Retirement
|
89,305
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,305
|
|
|||||||
Other
|
14,770
|
|
|
139,046
|
|
|
17,754
|
|
|
648
|
|
|
—
|
|
|
—
|
|
|
172,218
|
|
|||||||
Total Deferred Credits and Other Liabilities
|
104,075
|
|
|
273,304
|
|
|
1,048,308
|
|
|
15,589
|
|
|
—
|
|
|
—
|
|
|
1,441,276
|
|
|||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
4,147,215
|
|
|
4,453,542
|
|
|
5,877,327
|
|
|
225,822
|
|
|
211,833
|
|
|
(10,768,524
|
)
|
|
4,147,215
|
|
|||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,952
|
|
|
142,952
|
|
|||||||
Total Liabilities and Equity
|
$
|
11,045,046
|
|
|
$
|
6,421,465
|
|
|
$
|
2,214,687
|
|
|
$
|
506,797
|
|
|
$
|
3,071
|
|
|
$
|
(10,625,572
|
)
|
|
$
|
9,565,494
|
|
|
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
|
$
|
—
|
|
|
$
|
157,835
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(297
|
)
|
|
$
|
157,538
|
|
Gain on Commodity Derivative Instruments
|
—
|
|
|
143,606
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
143,606
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
242,378
|
|
|
80,793
|
|
|
—
|
|
|
—
|
|
|
323,171
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
5,129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,129
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
2,535
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,535
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
2,134
|
|
|
302
|
|
|
—
|
|
|
—
|
|
|
2,436
|
|
|||||||
Miscellaneous Other Income
|
156,955
|
|
|
16,122
|
|
|
22,194
|
|
|
330
|
|
|
(171
|
)
|
|
(156,955
|
)
|
|
38,475
|
|
|||||||
Gain on Sale of Assets
|
—
|
|
|
890
|
|
|
47,140
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
48,043
|
|
|||||||
Total Revenue and Other Income
|
156,955
|
|
|
320,988
|
|
|
318,975
|
|
|
81,438
|
|
|
(171
|
)
|
|
(157,252
|
)
|
|
720,933
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
29,452
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,452
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
89,965
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,965
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
8,475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,475
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
92,083
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,083
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
3,332
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
(15
|
)
|
|
3,332
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
1,921
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,921
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
20,953
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,953
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
23,919
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,919
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
270,100
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
(15
|
)
|
|
270,100
|
|
|||||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
—
|
|
|
—
|
|
|
90,823
|
|
|
46,936
|
|
|
—
|
|
|
—
|
|
|
137,759
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
32,671
|
|
|
10,788
|
|
|
—
|
|
|
—
|
|
|
43,459
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
2,134
|
|
|
302
|
|
|
—
|
|
|
—
|
|
|
2,436
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
6,428
|
|
|
2,616
|
|
|
—
|
|
|
—
|
|
|
9,044
|
|
|||||||
Total PA Mining Operations Costs
|
—
|
|
|
—
|
|
|
132,056
|
|
|
60,642
|
|
|
—
|
|
|
—
|
|
|
192,698
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
16,543
|
|
|
—
|
|
|
(19,665
|
)
|
|
—
|
|
|
44
|
|
|
—
|
|
|
(3,078
|
)
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
6,173
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,173
|
|
|||||||
Depreciation, Depletion and Amortization
|
154
|
|
|
—
|
|
|
11,148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,302
|
|
|||||||
Interest Expense
|
44,385
|
|
|
701
|
|
|
1,600
|
|
|
1,872
|
|
|
—
|
|
|
—
|
|
|
48,558
|
|
|||||||
Total Other Costs
|
61,082
|
|
|
701
|
|
|
(744
|
)
|
|
1,872
|
|
|
44
|
|
|
—
|
|
|
62,955
|
|
|||||||
Total Costs And Expenses
|
61,082
|
|
|
270,801
|
|
|
131,312
|
|
|
62,514
|
|
|
59
|
|
|
(15
|
)
|
|
525,753
|
|
|||||||
Earnings (Loss) Before Income Tax
|
95,873
|
|
|
50,187
|
|
|
187,663
|
|
|
18,924
|
|
|
(230
|
)
|
|
(157,237
|
)
|
|
195,180
|
|
|||||||
Income Taxes
|
(23,107
|
)
|
|
19,841
|
|
|
69,222
|
|
|
—
|
|
|
(88
|
)
|
|
—
|
|
|
65,868
|
|
|||||||
Income (Loss) From Continuing Operations
|
118,980
|
|
|
30,346
|
|
|
118,441
|
|
|
18,924
|
|
|
(142
|
)
|
|
(157,237
|
)
|
|
129,312
|
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,842
|
)
|
|
—
|
|
|
(3,842
|
)
|
|||||||
Net Income (Loss)
|
$
|
118,980
|
|
|
$
|
30,346
|
|
|
$
|
118,441
|
|
|
$
|
18,924
|
|
|
$
|
(3,984
|
)
|
|
$
|
(157,237
|
)
|
|
$
|
125,470
|
|
Less: Net Income Attributable to Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,490
|
|
|
6,490
|
|
|||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders
|
$
|
118,980
|
|
|
$
|
30,346
|
|
|
$
|
118,441
|
|
|
$
|
18,924
|
|
|
$
|
(3,984
|
)
|
|
$
|
(163,727
|
)
|
|
$
|
118,980
|
|
|
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
|
|
|
$
|
—
|
|
|
$
|
6,534
|
|
|
$
|
970
|
|
|
$
|
—
|
|
|
$
|
72,574
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trade
|
—
|
|
|
72,664
|
|
|
59,321
|
|
|
19,398
|
|
|
—
|
|
|
—
|
|
|
151,383
|
|
|||||||
Other Receivables
|
18,933
|
|
|
99,001
|
|
|
3,330
|
|
|
471
|
|
|
—
|
|
|
—
|
|
|
121,735
|
|
|||||||
Inventories
|
—
|
|
|
13,815
|
|
|
40,739
|
|
|
12,238
|
|
|
—
|
|
|
—
|
|
|
66,792
|
|
|||||||
Recoverable Income Taxes
|
72,913
|
|
|
(59,026
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,887
|
|
|||||||
Prepaid Expenses
|
27,245
|
|
|
244,680
|
|
|
20,273
|
|
|
5,089
|
|
|
—
|
|
|
—
|
|
|
297,287
|
|
|||||||
Current Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,106
|
|
|
—
|
|
|
81,106
|
|
|||||||
Total Current Assets
|
184,086
|
|
|
371,209
|
|
|
123,663
|
|
|
43,730
|
|
|
82,076
|
|
|
—
|
|
|
804,764
|
|
|||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property, Plant and Equipment
|
156,348
|
|
|
8,875,027
|
|
|
3,898,005
|
|
|
865,527
|
|
|
—
|
|
|
—
|
|
|
13,794,907
|
|
|||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
111,367
|
|
|
2,695,674
|
|
|
1,854,249
|
|
|
400,911
|
|
|
—
|
|
|
—
|
|
|
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
|
|
|
2,043,756
|
|
|
464,616
|
|
|
936,670
|
|
|
—
|
|
|
9,669,376
|
|
|||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment in Affiliates
|
10,563,985
|
|
|
234,803
|
|
|
6,293
|
|
|
—
|
|
|
—
|
|
|
(10,567,751
|
)
|
|
237,330
|
|
|||||||
Other
|
53,529
|
|
|
47,892
|
|
|
95,369
|
|
|
17,598
|
|
|
—
|
|
|
—
|
|
|
214,388
|
|
|||||||
Other Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,044
|
|
|
—
|
|
|
4,044
|
|
|||||||
Total Other Assets
|
10,617,514
|
|
|
282,695
|
|
|
101,662
|
|
|
17,598
|
|
|
4,044
|
|
|
(10,567,751
|
)
|
|
455,762
|
|
|||||||
Total Assets
|
$
|
10,846,581
|
|
|
$
|
6,833,257
|
|
|
$
|
2,269,081
|
|
|
$
|
525,944
|
|
|
$
|
1,022,790
|
|
|
$
|
(10,567,751
|
)
|
|
$
|
10,929,902
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts Payable
|
$
|
32,245
|
|
|
$
|
149,930
|
|
|
$
|
37,212
|
|
|
$
|
17,405
|
|
|
$
|
—
|
|
|
$
|
13,817
|
|
|
$
|
250,609
|
|
Accounts Payable (Recoverable)-Related Parties
|
2,650,732
|
|
|
1,521,442
|
|
|
(3,953,215
|
)
|
|
4,310
|
|
|
(209,452
|
)
|
|
(13,817
|
)
|
|
—
|
|
|||||||
Current Portion of Long-Term Debt
|
(2,777
|
)
|
|
6,798
|
|
|
906
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
4,988
|
|
|||||||
Short-Term Notes Payable
|
952,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
952,000
|
|
|||||||
Other Accrued Liabilities
|
63,668
|
|
|
102,753
|
|
|
218,186
|
|
|
37,220
|
|
|
—
|
|
|
—
|
|
|
421,827
|
|
|||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,514
|
|
|
—
|
|
|
51,514
|
|
|||||||
Total Current Liabilities
|
3,695,868
|
|
|
1,780,923
|
|
|
(3,696,911
|
)
|
|
58,996
|
|
|
(157,938
|
)
|
|
—
|
|
|
1,680,938
|
|
|||||||
Long-Term Debt:
|
2,423,247
|
|
|
33,141
|
|
|
105,746
|
|
|
181,070
|
|
|
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
|
—
|
|
|
—
|
|
|
109,969
|
|
|
1,934
|
|
|
—
|
|
|
—
|
|
|
111,903
|
|
|||||||
Mine Closing
|
—
|
|
|
—
|
|
|
218,936
|
|
|
8,403
|
|
|
—
|
|
|
—
|
|
|
227,339
|
|
|||||||
Gas Well Closing
|
—
|
|
|
135,174
|
|
|
28,572
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
163,842
|
|
|||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
66,883
|
|
|
2,929
|
|
|
—
|
|
|
—
|
|
|
69,812
|
|
|||||||
Salary Retirement
|
91,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,596
|
|
|||||||
Reclamation
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||||
Other
|
56,390
|
|
|
105,588
|
|
|
4,266
|
|
|
713
|
|
|
—
|
|
|
—
|
|
|
166,957
|
|
|||||||
Deferred Credits and Other Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,988
|
|
|
—
|
|
|
107,988
|
|
|||||||
Total Deferred Credits and Other Liabilities
|
25,439
|
|
|
437,938
|
|
|
1,059,543
|
|
|
14,075
|
|
|
107,988
|
|
|
—
|
|
|
1,644,983
|
|
|||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
4,702,027
|
|
|
4,581,255
|
|
|
4,800,703
|
|
|
271,803
|
|
|
1,067,739
|
|
|
(10,721,500
|
)
|
|
4,702,027
|
|
|||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153,749
|
|
|
153,749
|
|
|||||||
Total Liabilities and Equity
|
$
|
10,846,581
|
|
|
$
|
6,833,257
|
|
|
$
|
2,269,081
|
|
|
$
|
525,944
|
|
|
$
|
1,022,790
|
|
|
$
|
(10,567,751
|
)
|
|
$
|
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
|
$
|
—
|
|
|
$
|
555,526
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(425
|
)
|
|
$
|
555,101
|
|
Loss on Commodity Derivative Instruments
|
—
|
|
|
53,872
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,872
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
558,308
|
|
|
186,103
|
|
|
—
|
|
|
—
|
|
|
744,411
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
20,687
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,687
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
28,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,633
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
25,476
|
|
|
8,473
|
|
|
—
|
|
|
—
|
|
|
33,949
|
|
|||||||
Miscellaneous Other Income
|
(441,368
|
)
|
|
60,592
|
|
|
51,304
|
|
|
2,264
|
|
|
—
|
|
|
441,367
|
|
|
114,159
|
|
|||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
10,446
|
|
|
3,105
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
13,541
|
|
|||||||
Total Revenue and Other Income
|
(441,368
|
)
|
|
709,069
|
|
|
658,880
|
|
|
196,830
|
|
|
—
|
|
|
440,942
|
|
|
1,564,353
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
73,996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,996
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
279,753
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
279,753
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
23,732
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,732
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
312,122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312,122
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
5,036
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,036
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
28,692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,692
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
65,980
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,980
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
74,067
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,067
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
863,378
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
863,378
|
|
|||||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
—
|
|
|
—
|
|
|
391,211
|
|
|
130,066
|
|
|
—
|
|
|
—
|
|
|
521,277
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
94,002
|
|
|
31,332
|
|
|
—
|
|
|
—
|
|
|
125,334
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
25,476
|
|
|
8,473
|
|
|
—
|
|
|
—
|
|
|
33,949
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
13,649
|
|
|
6,558
|
|
|
—
|
|
|
—
|
|
|
20,207
|
|
|||||||
Total PA Mining Operations Costs
|
—
|
|
|
—
|
|
|
524,338
|
|
|
176,429
|
|
|
—
|
|
|
—
|
|
|
700,767
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
30,077
|
|
|
—
|
|
|
97,417
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
127,531
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
10,173
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,173
|
|
|||||||
Depreciation, Depletion and Amortization
|
452
|
|
|
—
|
|
|
4,011
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,463
|
|
|||||||
Interest Expense
|
131,431
|
|
|
2,077
|
|
|
4,824
|
|
|
6,277
|
|
|
—
|
|
|
—
|
|
|
144,609
|
|
|||||||
Total Other Costs
|
161,960
|
|
|
2,077
|
|
|
116,425
|
|
|
6,277
|
|
|
37
|
|
|
—
|
|
|
286,776
|
|
|||||||
Total Costs And Expenses
|
161,960
|
|
|
865,455
|
|
|
640,763
|
|
|
182,706
|
|
|
37
|
|
|
—
|
|
|
1,850,921
|
|
|||||||
(Loss) Earnings Before Income Tax
|
(603,328
|
)
|
|
(156,386
|
)
|
|
18,117
|
|
|
14,124
|
|
|
(37
|
)
|
|
440,942
|
|
|
(286,568
|
)
|
|||||||
Income Taxes
|
(61,270
|
)
|
|
(62,148
|
)
|
|
51,634
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(71,798
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(542,058
|
)
|
|
(94,238
|
)
|
|
(33,517
|
)
|
|
14,124
|
|
|
(23
|
)
|
|
440,942
|
|
|
(214,770
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(322,747
|
)
|
|
—
|
|
|
(322,747
|
)
|
|||||||
Net (Loss) Income
|
(542,058
|
)
|
|
(94,238
|
)
|
|
(33,517
|
)
|
|
14,124
|
|
|
(322,770
|
)
|
|
440,942
|
|
|
(537,517
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,541
|
|
|
4,541
|
|
|||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders
|
$
|
(542,058
|
)
|
|
$
|
(94,238
|
)
|
|
$
|
(33,517
|
)
|
|
$
|
14,124
|
|
|
$
|
(322,770
|
)
|
|
$
|
436,401
|
|
|
$
|
(542,058
|
)
|
|
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
|
$
|
—
|
|
|
$
|
542,824
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,194
|
)
|
|
$
|
541,630
|
|
Gain on Commodity Derivative Instruments
|
—
|
|
|
251,073
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
251,073
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
769,945
|
|
|
256,651
|
|
|
—
|
|
|
—
|
|
|
1,026,596
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
24,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,596
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
7,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,649
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
8,633
|
|
|
1,571
|
|
|
—
|
|
|
—
|
|
|
10,204
|
|
|||||||
Miscellaneous Other Income
|
(246,791
|
)
|
|
43,941
|
|
|
68,130
|
|
|
768
|
|
|
4,105
|
|
|
241,126
|
|
|
111,279
|
|
|||||||
Gain on Sale of Assets
|
—
|
|
|
3,076
|
|
|
51,208
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
54,329
|
|
|||||||
Total Revenue and Other Income
|
(246,791
|
)
|
|
848,563
|
|
|
922,512
|
|
|
259,035
|
|
|
4,105
|
|
|
239,932
|
|
|
2,027,356
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
96,229
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96,229
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
248,682
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
248,682
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
24,605
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,605
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
269,377
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269,377
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
7,695
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
7,695
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
5,939
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,939
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
47,088
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,088
|
|
|||||||
Impairment of Exploration and Production Properties
|
—
|
|
|
828,905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
828,905
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
80,396
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,396
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
1,608,916
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
1,608,916
|
|
|||||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
—
|
|
|
—
|
|
|
410,950
|
|
|
153,654
|
|
|
—
|
|
|
—
|
|
|
564,604
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
102,479
|
|
|
34,057
|
|
|
—
|
|
|
—
|
|
|
136,536
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
8,633
|
|
|
1,571
|
|
|
—
|
|
|
—
|
|
|
10,204
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
25,318
|
|
|
8,913
|
|
|
—
|
|
|
—
|
|
|
34,231
|
|
|||||||
Total PA Mining Operations Costs
|
—
|
|
|
—
|
|
|
547,380
|
|
|
198,195
|
|
|
—
|
|
|
—
|
|
|
745,575
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
43,343
|
|
|
—
|
|
|
26,715
|
|
|
—
|
|
|
496
|
|
|
—
|
|
|
70,554
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
9,946
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,946
|
|
|||||||
Depreciation, Depletion and Amortization
|
449
|
|
|
—
|
|
|
20,770
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,219
|
|
|||||||
Loss on Debt Extinguishment
|
67,751
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,751
|
|
|||||||
Interest Expense
|
141,493
|
|
|
4,840
|
|
|
4,821
|
|
|
7,758
|
|
|
76
|
|
|
(8,803
|
)
|
|
150,185
|
|
|||||||
Total Other Costs
|
253,036
|
|
|
4,840
|
|
|
62,252
|
|
|
7,758
|
|
|
572
|
|
|
(8,803
|
)
|
|
319,655
|
|
|||||||
Total Costs And Expenses
|
253,036
|
|
|
1,613,756
|
|
|
609,632
|
|
|
205,953
|
|
|
581
|
|
|
(8,812
|
)
|
|
2,674,146
|
|
|||||||
(Loss) Earnings Before Income Tax
|
(499,827
|
)
|
|
(765,193
|
)
|
|
312,880
|
|
|
53,082
|
|
|
3,524
|
|
|
248,744
|
|
|
(646,790
|
)
|
|||||||
Income Taxes
|
(94,536
|
)
|
|
(286,335
|
)
|
|
128,357
|
|
|
—
|
|
|
1,333
|
|
|
—
|
|
|
(251,181
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(405,291
|
)
|
|
(478,858
|
)
|
|
184,523
|
|
|
53,082
|
|
|
2,191
|
|
|
248,744
|
|
|
(395,609
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,192
|
)
|
|
—
|
|
|
(3,192
|
)
|
|||||||
Net (Loss) Income
|
$
|
(405,291
|
)
|
|
$
|
(478,858
|
)
|
|
$
|
184,523
|
|
|
$
|
53,082
|
|
|
$
|
(1,001
|
)
|
|
$
|
248,744
|
|
|
$
|
(398,801
|
)
|
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,490
|
|
|
6,490
|
|
|||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders
|
$
|
(405,291
|
)
|
|
$
|
(478,858
|
)
|
|
$
|
184,523
|
|
|
$
|
53,082
|
|
|
$
|
(1,001
|
)
|
|
$
|
242,254
|
|
|
$
|
(405,291
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary Non-Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
611,844
|
|
|
$
|
106,017
|
|
|
$
|
32,398
|
|
|
$
|
47,324
|
|
|
$
|
(380,674
|
)
|
|
$
|
(44,698
|
)
|
|
$
|
372,211
|
|
Net Cash Used in Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,427
|
|
|
—
|
|
|
14,427
|
|
|||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
611,844
|
|
|
$
|
106,017
|
|
|
$
|
32,398
|
|
|
$
|
47,324
|
|
|
$
|
(366,247
|
)
|
|
$
|
(44,698
|
)
|
|
$
|
386,638
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Expenditures
|
$
|
(2,450
|
)
|
|
$
|
(134,967
|
)
|
|
$
|
(32,403
|
)
|
|
$
|
(9,569
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(179,389
|
)
|
CNXC Acquisition of 5% Pennsylvania Mining Complex
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,500
|
)
|
|
—
|
|
|
21,500
|
|
|
—
|
|
|||||||
Proceeds From Sales of Assets
|
—
|
|
|
33,041
|
|
|
5,915
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
38,977
|
|
|||||||
Net Distributions from (Investments in) Equity Affiliates
|
—
|
|
|
518
|
|
|
(5,073
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,555
|
)
|
|||||||
Net Cash (Used in) Provided by Continuing Operations
|
(2,450
|
)
|
|
(101,408
|
)
|
|
(31,561
|
)
|
|
(31,048
|
)
|
|
—
|
|
|
21,500
|
|
|
(144,967
|
)
|
|||||||
Net Cash Provided by Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
366,251
|
|
|
—
|
|
|
366,251
|
|
|||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
(2,450
|
)
|
|
$
|
(101,408
|
)
|
|
$
|
(31,561
|
)
|
|
$
|
(31,048
|
)
|
|
$
|
366,251
|
|
|
$
|
21,500
|
|
|
$
|
221,284
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Payments on Short-Term Borrowings
|
$
|
(598,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(598,000
|
)
|
Payments on Miscellaneous Borrowings
|
(1,220
|
)
|
|
(4,590
|
)
|
|
(355
|
)
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(6,222
|
)
|
|||||||
Proceeds from Revolver - MLP
|
—
|
|
|
—
|
|
|
—
|
|
|
23,000
|
|
|
—
|
|
|
—
|
|
|
23,000
|
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,486
|
)
|
|
—
|
|
|
14,245
|
|
|
(16,241
|
)
|
|||||||
Pre-Merger Distributions to Parent
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,953
|
)
|
|
—
|
|
|
8,953
|
|
|
—
|
|
|||||||
Dividends Paid
|
(2,294
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,294
|
)
|
|||||||
Proceeds from Issuance of Common Stock
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||||
Debt Issuance and Financing Fees
|
—
|
|
|
—
|
|
|
(482
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(482
|
)
|
|||||||
Net Cash (Used in) Provided by Continuing Operations
|
(601,510
|
)
|
|
(4,590
|
)
|
|
(837
|
)
|
|
(16,496
|
)
|
|
—
|
|
|
23,198
|
|
|
(600,235
|
)
|
|||||||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(601,510
|
)
|
|
$
|
(4,590
|
)
|
|
$
|
(837
|
)
|
|
$
|
(16,496
|
)
|
|
$
|
(14
|
)
|
|
$
|
23,198
|
|
|
$
|
(600,249
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Cash (Used in) Provided by Continuing Operations
|
$
|
(130,726
|
)
|
|
$
|
712,504
|
|
|
$
|
(329,261
|
)
|
|
$
|
47,465
|
|
|
$
|
20,053
|
|
|
$
|
73,480
|
|
|
$
|
393,515
|
|
Net Cash Provided by Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,768
|
|
|
—
|
|
|
10,768
|
|
|||||||
Net Cash (Used in) Provided by Operating Activities
|
$
|
(130,726
|
)
|
|
$
|
712,504
|
|
|
$
|
(329,261
|
)
|
|
$
|
47,465
|
|
|
$
|
30,821
|
|
|
$
|
73,480
|
|
|
$
|
404,283
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Expenditures
|
$
|
(8,607
|
)
|
|
$
|
(749,015
|
)
|
|
$
|
(80,928
|
)
|
|
$
|
(25,712
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(864,262
|
)
|
Proceeds From Sales of Assets
|
47
|
|
|
3,600
|
|
|
79,327
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
83,044
|
|
|||||||
Net Investments in Equity Affiliates
|
—
|
|
|
(62,860
|
)
|
|
(7,364
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70,224
|
)
|
|||||||
Net Cash Used in Continuing Operations
|
(8,560
|
)
|
|
(808,275
|
)
|
|
(8,965
|
)
|
|
(25,642
|
)
|
|
—
|
|
|
—
|
|
|
(851,442
|
)
|
|||||||
Net Cash Used in Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,894
|
)
|
|
—
|
|
|
(30,894
|
)
|
|||||||
Net Cash Used in Investing Activities
|
$
|
(8,560
|
)
|
|
$
|
(808,275
|
)
|
|
$
|
(8,965
|
)
|
|
$
|
(25,642
|
)
|
|
$
|
(30,894
|
)
|
|
$
|
—
|
|
|
$
|
(882,336
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proceeds from (Payments on) Short-Term Borrowings
|
$
|
945,000
|
|
|
$
|
70,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(70,000
|
)
|
|
$
|
945,000
|
|
(Payments on) Proceeds from Miscellaneous Borrowings
|
(6,853
|
)
|
|
(4,823
|
)
|
|
4,148
|
|
|
6,005
|
|
|
—
|
|
|
—
|
|
|
(1,523
|
)
|
|||||||
Payments on Long-Term Borrowings
|
(1,263,719
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,263,719
|
)
|
|||||||
Proceeds from Long-Term Borrowings
|
492,760
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
492,760
|
|
|||||||
Proceeds from Revolver - MLP
|
—
|
|
|
—
|
|
|
200,000
|
|
|
180,000
|
|
|
—
|
|
|
(200,000
|
)
|
|
180,000
|
|
|||||||
Proceeds from Sale of MLP Interest
|
—
|
|
|
—
|
|
|
148,359
|
|
|
148,359
|
|
|
—
|
|
|
(148,359
|
)
|
|
148,359
|
|
|||||||
Net Distributions from Offering to Parent
|
—
|
|
|
—
|
|
|
—
|
|
|
(342,711
|
)
|
|
—
|
|
|
342,711
|
|
|
—
|
|
|||||||
Net Change in Parent Advancements
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,789
|
)
|
|
—
|
|
|
5,789
|
|
|
—
|
|
|||||||
Pre-Merger Distributions to Parent
|
—
|
|
|
—
|
|
|
—
|
|
|
(355
|
)
|
|
—
|
|
|
355
|
|
|
—
|
|
|||||||
Tax Benefit from Stock-Based Compensation
|
208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|||||||
Dividends Paid
|
(30,991
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,991
|
)
|
|||||||
Proceeds from Issuance of Common Stock
|
8,288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,288
|
|
|||||||
Treasury Stock Activity
|
(71,674
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,674
|
)
|
|||||||
Debt Issuance and Financing Fees
|
—
|
|
|
—
|
|
|
(14,281
|
)
|
|
(4,329
|
)
|
|
—
|
|
|
(3,976
|
)
|
|
(22,586
|
)
|
|||||||
Net Cash Provided by (Used in) Continuing Operations
|
73,019
|
|
|
65,177
|
|
|
338,226
|
|
|
(18,820
|
)
|
|
—
|
|
|
(73,480
|
)
|
|
384,122
|
|
|||||||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
|||||||
Net Cash Provided by (Used in) Financing Activities
|
$
|
73,019
|
|
|
$
|
65,177
|
|
|
$
|
338,226
|
|
|
$
|
(18,820
|
)
|
|
$
|
(39
|
)
|
|
$
|
(73,480
|
)
|
|
$
|
384,083
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor |
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Income (Loss)
|
$
|
25,345
|
|
|
$
|
96,834
|
|
|
$
|
(9,170
|
)
|
|
$
|
6,401
|
|
|
$
|
(34,979
|
)
|
|
$
|
(56,838
|
)
|
|
$
|
27,593
|
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
1,305
|
|
|
—
|
|
|
1,327
|
|
|
(22
|
)
|
|
—
|
|
|
(1,305
|
)
|
|
1,305
|
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(12,458
|
)
|
|
(12,458
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,458
|
|
|
(12,458
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(11,153
|
)
|
|
(12,458
|
)
|
|
1,327
|
|
|
(22
|
)
|
|
—
|
|
|
11,153
|
|
|
(11,153
|
)
|
|||||||
Comprehensive Income (Loss)
|
14,192
|
|
|
84,376
|
|
|
(7,843
|
)
|
|
6,379
|
|
|
(34,979
|
)
|
|
(45,685
|
)
|
|
16,440
|
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,248
|
|
|
2,248
|
|
|||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
14,192
|
|
|
$
|
84,376
|
|
|
$
|
(7,843
|
)
|
|
$
|
6,379
|
|
|
$
|
(34,979
|
)
|
|
$
|
(47,933
|
)
|
|
$
|
14,192
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Income (Loss)
|
$
|
118,980
|
|
|
$
|
30,346
|
|
|
$
|
118,441
|
|
|
$
|
18,924
|
|
|
$
|
(3,984
|
)
|
|
$
|
(157,237
|
)
|
|
$
|
125,470
|
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
(49,353
|
)
|
|
—
|
|
|
(49,337
|
)
|
|
(16
|
)
|
|
—
|
|
|
49,353
|
|
|
(49,353
|
)
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(20,602
|
)
|
|
(20,602
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,602
|
|
|
(20,602
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(69,955
|
)
|
|
(20,602
|
)
|
|
(49,337
|
)
|
|
(16
|
)
|
|
—
|
|
|
69,955
|
|
|
(69,955
|
)
|
|||||||
Comprehensive Income (Loss)
|
49,025
|
|
|
9,744
|
|
|
69,104
|
|
|
18,908
|
|
|
(3,984
|
)
|
|
(87,282
|
)
|
|
55,515
|
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,490
|
|
|
6,490
|
|
|||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
49,025
|
|
|
$
|
9,744
|
|
|
$
|
69,104
|
|
|
$
|
18,908
|
|
|
$
|
(3,984
|
)
|
|
$
|
(93,772
|
)
|
|
$
|
49,025
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor |
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(542,058
|
)
|
|
$
|
(94,238
|
)
|
|
$
|
(33,517
|
)
|
|
$
|
14,124
|
|
|
$
|
(322,770
|
)
|
|
$
|
440,942
|
|
|
$
|
(537,517
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
6,866
|
|
|
—
|
|
|
6,936
|
|
|
(70
|
)
|
|
—
|
|
|
(6,866
|
)
|
|
6,866
|
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(33,475
|
)
|
|
(33,475
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,475
|
|
|
(33,475
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(26,609
|
)
|
|
(33,475
|
)
|
|
6,936
|
|
|
(70
|
)
|
|
—
|
|
|
26,609
|
|
|
(26,609
|
)
|
|||||||
Comprehensive (Loss) Income
|
(568,667
|
)
|
|
(127,713
|
)
|
|
(26,581
|
)
|
|
14,054
|
|
|
(322,770
|
)
|
|
467,551
|
|
|
(564,126
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,541
|
|
|
4,541
|
|
|||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(568,667
|
)
|
|
$
|
(127,713
|
)
|
|
$
|
(26,581
|
)
|
|
$
|
14,054
|
|
|
$
|
(322,770
|
)
|
|
$
|
463,010
|
|
|
$
|
(568,667
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(405,291
|
)
|
|
$
|
(478,858
|
)
|
|
$
|
184,523
|
|
|
$
|
53,082
|
|
|
$
|
(1,001
|
)
|
|
$
|
248,744
|
|
|
$
|
(398,801
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
(40,036
|
)
|
|
—
|
|
|
(38,284
|
)
|
|
(1,752
|
)
|
|
—
|
|
|
40,036
|
|
|
(40,036
|
)
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(60,720
|
)
|
|
(60,720
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,720
|
|
|
(60,720
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(100,756
|
)
|
|
(60,720
|
)
|
|
(38,284
|
)
|
|
(1,752
|
)
|
|
—
|
|
|
100,756
|
|
|
(100,756
|
)
|
|||||||
Comprehensive (Loss) Income
|
(506,047
|
)
|
|
(539,578
|
)
|
|
146,239
|
|
|
51,330
|
|
|
(1,001
|
)
|
|
349,500
|
|
|
(499,557
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,490
|
|
|
6,490
|
|
|||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(506,047
|
)
|
|
$
|
(539,578
|
)
|
|
$
|
146,239
|
|
|
$
|
51,330
|
|
|
$
|
(1,001
|
)
|
|
$
|
343,010
|
|
|
$
|
(506,047
|
)
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating and Other Costs
|
$
|
854
|
|
|
$
|
2,736
|
|
|
$
|
3,390
|
|
|
$
|
5,177
|
|
Selling, General and Administrative Expenses
|
856
|
|
|
2,598
|
|
|
3,090
|
|
|
6,904
|
|
||||
Total Services from CONSOL Energy
|
$
|
1,710
|
|
|
$
|
5,334
|
|
|
$
|
6,480
|
|
|
$
|
12,081
|
|
•
|
In March 2016, the FASB issued Update 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies how an entity determines whether it is a principal or an agent for goods or services promised to a customer as well as the nature of the goods or services promised to their customers.
|
•
|
In April 2016, the FASB issued Update 2016-10 - Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which seeks to address implementation issues in the areas of identifying performance obligations and licensing.
|
•
|
In May 2016, the FASB issued Update 2016-12 - Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients, which seeks to address implementation issues in the areas of collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
2016
|
|
2017
|
|
Total Yearly Production (Bcfe)
|
|
390-395
|
|
TBD
*
|
|
Volumes Hedged (Bcf), as of 10/13/16
|
|
271.8**
|
|
237.8
|
|
|
|
Q4 2016
|
|
2016
|
|
2017
|
||||||
Total NYMEX + Basis
*
(Bcf)
|
|
61.8
|
|
|
264.5
|
|
|
207.5
|
|
|||
Average Hedge Price ($/Mcf)
|
|
$
|
3.16
|
|
|
$
|
3.03
|
|
|
$
|
2.61
|
|
|
|
|
|
|
|
|
||||||
NYMEX Only Hedges Exposed to Basis (Bcf)
|
|
1.8
|
|
|
-
|
|
|
30.3
|
|
|||
Average Hedge Price ($/Mcf)
|
|
$
|
3.41
|
|
|
-
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
|
||||||
Physical Sales With Fixed Basis Exposed to NYMEX (Bcf)
|
|
-
|
|
|
7.3
|
|
|
-
|
|
|||
Average Hedge Basis Value ($/Mcf)
|
|
-
|
|
|
$
|
(0.06
|
)
|
|
-
|
|
|
For the Three Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2016
|
|
2015
|
|
Variance
|
||||||
Income from Continuing Operations
|
$
|
62,568
|
|
|
$
|
129,312
|
|
|
$
|
(66,744
|
)
|
Loss from Discontinued Operations
|
(34,975
|
)
|
|
(3,842
|
)
|
|
(31,133
|
)
|
|||
Net Income
|
$
|
27,593
|
|
|
$
|
125,470
|
|
|
$
|
(97,877
|
)
|
Less: Net Income Attributable to Noncontrolling Interest
|
2,248
|
|
|
6,490
|
|
|
(4,242
|
)
|
|||
Net Income Attributable to CONSOL Energy Shareholders
|
$
|
25,345
|
|
|
$
|
118,980
|
|
|
$
|
(93,635
|
)
|
|
|
For the Three Months Ended September 30,
|
|||||||||||||
in thousands (unless noted)
|
|
2016
|
|
2015
|
|
Variance
|
|
Percent Change
|
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|||||||
NGLs:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
12,341
|
|
|
9,598
|
|
|
2,743
|
|
|
28.6
|
%
|
|||
Sales Volume (Mbbls)
|
|
2,057
|
|
|
1,600
|
|
|
457
|
|
|
28.6
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
13.14
|
|
|
$
|
4.80
|
|
|
$
|
8.34
|
|
|
173.8
|
%
|
Gross Revenue
|
|
$
|
27,048
|
|
|
$
|
7,645
|
|
|
$
|
19,403
|
|
|
253.8
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
94
|
|
|
189
|
|
|
(95
|
)
|
|
(50.3
|
)%
|
|||
Sales Volume (Mbbls)
|
|
16
|
|
|
32
|
|
|
(16
|
)
|
|
(50.0
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
42.06
|
|
|
$
|
54.18
|
|
|
$
|
(12.12
|
)
|
|
(22.4
|
)%
|
Gross Revenue
|
|
$
|
663
|
|
|
$
|
1,706
|
|
|
$
|
(1,043
|
)
|
|
(61.1
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
1,205
|
|
|
2,337
|
|
|
(1,132
|
)
|
|
(48.4
|
)%
|
|||
Sales Volume (Mbbls)
|
|
201
|
|
|
390
|
|
|
(189
|
)
|
|
(48.5
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
37.26
|
|
|
$
|
27.84
|
|
|
$
|
9.42
|
|
|
33.8
|
%
|
Gross Revenue
|
|
$
|
7,483
|
|
|
$
|
10,836
|
|
|
$
|
(3,353
|
)
|
|
(30.9
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
82,752
|
|
|
73,952
|
|
|
8,800
|
|
|
11.9
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
2.06
|
|
|
$
|
1.86
|
|
|
$
|
0.20
|
|
|
10.8
|
%
|
Gross Revenue
|
|
$
|
170,720
|
|
|
$
|
137,649
|
|
|
$
|
33,071
|
|
|
24.0
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Hedging Impact ($/Mcf)
|
|
$
|
0.47
|
|
|
$
|
0.60
|
|
|
$
|
(0.13
|
)
|
|
(21.7
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement
|
|
$
|
38,637
|
|
|
$
|
44,469
|
|
|
$
|
(5,832
|
)
|
|
(13.1
|
)%
|
•
|
The improvement in unit costs is primarily due to the continuing shift towards lower cost Marcellus and Utica Shale production, ongoing cost reduction efforts and the
12.0%
increase in total volumes sold in the period-to-period comparison. Marcellus production made up
53.7%
of natural gas and liquid sales volumes for the
three months
ended
September 30, 2016
, compared to
53.3%
for the three months ended
September 30, 2015
. Utica production made up
23.3%
of natural gas and liquid sales volumes for the
three months
ended
September 30, 2016
, compared to
17.8%
for the three months ended
September 30, 2015
.
|
•
|
Lease operating expense decreased on a per unit basis in the period-to-period comparison due to a decrease in well tending costs, employee related costs and salt water disposal costs. The decrease in unit costs was also due to the overall increase in E&P sales volumes.
|
•
|
Transportation, gathering and compression expense decreased on a per unit basis in the period-to-period comparison due to the overall increase in E&P sales volumes and the shift towards dry Utica Shale production which has lower gathering costs since there are no associated processing fees. 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.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Mining Operations Tons Sold (in millions)
|
6.0
|
|
|
5.7
|
|
|
0.3
|
|
|
5.3
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price per ton sold
|
$
|
44.30
|
|
|
$
|
56.99
|
|
|
$
|
(12.69
|
)
|
|
(22.3
|
)%
|
Average Cost of Goods Sold per ton
|
35.79
|
|
|
40.26
|
|
|
(4.47
|
)
|
|
(11.1
|
)%
|
|||
Margin
|
$
|
8.51
|
|
|
$
|
16.73
|
|
|
$
|
(8.22
|
)
|
|
(49.1
|
)%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Short-Term Incentive Compensation
|
$
|
5
|
|
|
$
|
11
|
|
|
$
|
(6
|
)
|
|
(54.5
|
)%
|
Advertising and Promotion
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
(50.0
|
)%
|
|||
Consulting and Professional Services
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
%
|
|||
Rent
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Employee Wages and Related Expenses
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
%
|
|||
Stock-Based Compensation
|
8
|
|
|
6
|
|
|
2
|
|
|
33.3
|
%
|
|||
Other
|
4
|
|
|
—
|
|
|
4
|
|
|
100.0
|
%
|
|||
Total Company Selling, General and Administrative Expense
|
$
|
38
|
|
|
$
|
39
|
|
|
$
|
(1
|
)
|
|
(2.6
|
)%
|
•
|
The
decrease
in Short-Term Incentive Compensation was a result of lower payouts in the current period.
|
•
|
Advertising and Promotion expense
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Stock-Based Compensation expenses
increased
$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.
|
•
|
Other
increased
$4 million
in the period-to-period comparison primarily due to a 401(k) discretionary contribution in the current period.
|
|
|
For the Three Months Ended
|
|
Difference to Three Months Ended
|
||||||||||||||||||||||||||||||||||||
|
|
September 30, 2016
|
|
September 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
|
|
$
|
107
|
|
|
$
|
40
|
|
|
$
|
47
|
|
|
$
|
12
|
|
|
$
|
206
|
|
|
$
|
32
|
|
|
$
|
19
|
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
$
|
48
|
|
Gain on Commodity Derivative Instruments
|
|
24
|
|
|
5
|
|
|
8
|
|
|
161
|
|
|
198
|
|
|
—
|
|
|
4
|
|
|
(6
|
)
|
|
56
|
|
|
54
|
|
||||||||||
Purchased Gas Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
||||||||||
Miscellaneous Other Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||||||
Gain on Sale of Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||||||||
Total Revenue and Other Income
|
|
131
|
|
|
45
|
|
|
55
|
|
|
219
|
|
|
450
|
|
|
32
|
|
|
23
|
|
|
(8
|
)
|
|
82
|
|
|
129
|
|
||||||||||
Lease Operating Expense
|
|
8
|
|
|
4
|
|
|
7
|
|
|
4
|
|
|
23
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(6
|
)
|
||||||||||
Production, Ad Valorem, and Other Fees
|
|
5
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Transportation, Gathering and Compression
|
|
57
|
|
|
14
|
|
|
18
|
|
|
6
|
|
|
95
|
|
|
3
|
|
|
5
|
|
|
(3
|
)
|
|
—
|
|
|
5
|
|
||||||||||
Depreciation, Depletion and Amortization
|
|
51
|
|
|
22
|
|
|
21
|
|
|
7
|
|
|
101
|
|
|
7
|
|
|
5
|
|
|
1
|
|
|
(5
|
)
|
|
8
|
|
||||||||||
Selling, General, and Administrative Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||||
Purchased Gas Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
||||||||||
Exploration and Production Related Other Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||
Other Corporate Expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Total Exploration and Production Costs
|
|
121
|
|
|
41
|
|
|
48
|
|
|
78
|
|
|
288
|
|
|
8
|
|
|
8
|
|
|
(3
|
)
|
|
5
|
|
|
18
|
|
||||||||||
Interest Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total E&P Division Costs
|
|
121
|
|
|
41
|
|
|
48
|
|
|
79
|
|
|
289
|
|
|
8
|
|
|
8
|
|
|
(3
|
)
|
|
5
|
|
|
18
|
|
||||||||||
Earnings (Loss) Before Income Tax
|
|
$
|
10
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
140
|
|
|
$
|
161
|
|
|
$
|
24
|
|
|
$
|
15
|
|
|
$
|
(5
|
)
|
|
$
|
77
|
|
|
$
|
111
|
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
43.0
|
|
|
39.1
|
|
|
3.9
|
|
|
10.0
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
8.3
|
|
|
5.5
|
|
|
2.8
|
|
|
50.9
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.5
|
|
|
1.3
|
|
|
(0.8
|
)
|
|
(61.5
|
)%
|
|||
Total Marcellus Sales Volumes (Bcfe)*
|
51.8
|
|
|
45.9
|
|
|
5.9
|
|
|
12.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
||||||
Average Sales Price - Gas (Mcf)
|
$
|
2.06
|
|
|
$
|
1.59
|
|
|
$
|
0.47
|
|
|
29.6
|
%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.55
|
|
|
$
|
0.62
|
|
|
$
|
(0.07
|
)
|
|
(11.3
|
)%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
1.94
|
|
|
$
|
0.97
|
|
|
$
|
0.97
|
|
|
100.0
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
5.50
|
|
|
$
|
5.68
|
|
|
$
|
(0.18
|
)
|
|
(3.2
|
)%
|
|
|
|
|
|
|
|
|
|
||||||
Total Average Marcellus Sales Price (per Mcfe)
|
$
|
2.53
|
|
|
$
|
2.16
|
|
|
$
|
0.37
|
|
|
17.1
|
%
|
Average Marcellus Lease Operating Expenses (per Mcfe)
|
0.15
|
|
|
0.23
|
|
|
(0.08
|
)
|
|
(34.8
|
)%
|
|||
Average Marcellus Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.10
|
|
|
0.11
|
|
|
(0.01
|
)
|
|
(9.1
|
)%
|
|||
Average Marcellus Transportation, Gathering and Compression costs (per Mcfe)
|
1.10
|
|
|
1.18
|
|
|
(0.08
|
)
|
|
(6.8
|
)%
|
|||
Average Marcellus Depreciation, Depletion and Amortization costs (per Mcfe)
|
0.98
|
|
|
0.94
|
|
|
0.04
|
|
|
4.3
|
%
|
|||
Total Average Marcellus Costs (per Mcfe)
|
$
|
2.33
|
|
|
$
|
2.46
|
|
|
$
|
(0.13
|
)
|
|
(5.3
|
)%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
0.20
|
|
|
$
|
(0.30
|
)
|
|
$
|
0.50
|
|
|
166.7
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Utica Gas Sales Volumes (Bcf)
|
17.7
|
|
|
10.2
|
|
|
7.5
|
|
|
73.5
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
4.1
|
|
|
4.1
|
|
|
—
|
|
|
—
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.7
|
|
|
1.0
|
|
|
(0.3
|
)
|
|
(30.0
|
)%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
22.5
|
|
|
15.3
|
|
|
7.2
|
|
|
47.1
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.40
|
|
|
$
|
1.48
|
|
|
$
|
(0.08
|
)
|
|
(5.4
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.26
|
|
|
$
|
0.09
|
|
|
$
|
0.17
|
|
|
188.9
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
2.69
|
|
|
$
|
0.56
|
|
|
$
|
2.13
|
|
|
380.4
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
6.80
|
|
|
$
|
3.24
|
|
|
$
|
3.56
|
|
|
109.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica Sales Price (per Mcfe)
|
$
|
2.00
|
|
|
$
|
1.41
|
|
|
$
|
0.59
|
|
|
41.8
|
%
|
Average Utica Lease Operating Expenses (per Mcfe)
|
0.20
|
|
|
0.38
|
|
|
(0.18
|
)
|
|
(47.4
|
)%
|
|||
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)
|
0.62
|
|
|
0.62
|
|
|
—
|
|
|
—
|
%
|
|||
Average Utica Depreciation, Depletion and Amortization Costs (per Mcfe)
|
0.93
|
|
|
1.06
|
|
|
(0.13
|
)
|
|
(12.3
|
)%
|
|||
Total Average Utica Costs (per Mcfe)
|
$
|
1.81
|
|
|
$
|
2.10
|
|
|
$
|
(0.29
|
)
|
|
(13.8
|
)%
|
Average Margin for Utica (per Mcfe)
|
$
|
0.19
|
|
|
$
|
(0.69
|
)
|
|
$
|
0.88
|
|
|
127.5
|
%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
17.0
|
|
|
18.5
|
|
|
(1.5
|
)
|
|
(8.1
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
2.77
|
|
|
$
|
2.65
|
|
|
$
|
0.12
|
|
|
4.5
|
%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.48
|
|
|
$
|
0.77
|
|
|
$
|
(0.29
|
)
|
|
(37.7
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM Sales Price (per Mcf)
|
$
|
3.25
|
|
|
$
|
3.42
|
|
|
$
|
(0.17
|
)
|
|
(5.0
|
)%
|
Average CBM Lease Operating Expenses (per Mcf)
|
0.41
|
|
|
0.42
|
|
|
(0.01
|
)
|
|
(2.4
|
)%
|
|||
Average CBM Production, Ad Valorem, and Other Fees (per Mcf)
|
0.10
|
|
|
0.12
|
|
|
(0.02
|
)
|
|
(16.7
|
)%
|
|||
Average CBM Transportation, Gathering and Compression Costs (per Mcf)
|
1.06
|
|
|
1.12
|
|
|
(0.06
|
)
|
|
(5.4
|
)%
|
|||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf)
|
1.27
|
|
|
1.14
|
|
|
0.13
|
|
|
11.4
|
%
|
|||
Total Average CBM Costs (per Mcf)
|
$
|
2.84
|
|
|
$
|
2.80
|
|
|
$
|
0.04
|
|
|
1.4
|
%
|
Average Margin for CBM (per Mcf)
|
$
|
0.41
|
|
|
$
|
0.62
|
|
|
$
|
(0.21
|
)
|
|
(33.9
|
)%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
5.0
|
|
|
6.2
|
|
|
(1.2
|
)
|
|
(19.4
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.1
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
(50.0
|
)%
|
|||
Total Other Sales Volumes (Bcfe)*
|
5.1
|
|
|
6.4
|
|
|
(1.3
|
)
|
|
(20.3
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
2.03
|
|
|
$
|
1.83
|
|
|
$
|
0.20
|
|
|
10.9
|
%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.44
|
|
|
$
|
0.84
|
|
|
$
|
(0.40
|
)
|
|
(47.6
|
)%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
7.03
|
|
|
$
|
9.25
|
|
|
$
|
(2.22
|
)
|
|
(24.0
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other Sales Price (per Mcfe)
|
$
|
2.55
|
|
|
$
|
2.85
|
|
|
$
|
(0.30
|
)
|
|
(10.5
|
)%
|
Average Other Lease Operating Expenses (per Mcfe)
|
0.71
|
|
|
0.82
|
|
|
(0.11
|
)
|
|
(13.4
|
)%
|
|||
Average Other Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.16
|
|
|
0.12
|
|
|
0.04
|
|
|
33.3
|
%
|
|||
Average Other Transportation, Gathering and Compression Costs (per Mcfe)
|
1.10
|
|
|
0.86
|
|
|
0.24
|
|
|
27.9
|
%
|
|||
Average Other Depreciation, Depletion and Amortization Costs (per Mcfe)
|
1.40
|
|
|
1.59
|
|
|
(0.19
|
)
|
|
(11.9
|
)%
|
|||
Total Average Other Costs (per Mcfe)
|
$
|
3.37
|
|
|
$
|
3.39
|
|
|
$
|
(0.02
|
)
|
|
(0.6
|
)%
|
Average Margin for Other (per Mcfe)
|
$
|
(0.82
|
)
|
|
$
|
(0.54
|
)
|
|
$
|
(0.28
|
)
|
|
(51.9
|
)%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Gathering Revenue
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
200.0
|
%
|
Equity in Earnings of Affiliates - CONE
|
15
|
|
|
13
|
|
|
2
|
|
|
15.4
|
%
|
|||
Right of Way Sales
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
100.0
|
%
|
|||
Total Miscellaneous Other Income
|
$
|
19
|
|
|
$
|
15
|
|
|
$
|
4
|
|
|
26.7
|
%
|
•
|
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
increased
$2
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.
|
•
|
Right of Way Sales totaled
$1
million in the
three months
ended
September 30, 2015
. No material sales occurred in the current period.
|
•
|
The remaining
$1
million
increase
relates to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Lease Expiration Costs
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
(100.0
|
)%
|
Land Rentals
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|||
Total Exploration and Other Costs
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
(100.0
|
)%
|
•
|
Lease expiration costs
decrease
d by
$2
million in the period-to-period comparison, primarily due to a decreased number of leases expiring in the
three months
ended
September 30, 2016
as compared to the
three months
ended
September 30, 2015
.
|
•
|
Land rental costs
decrease
d by
$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 September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Unutilized Firm Transportation and Processing Fees
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
2
|
|
|
25.0
|
%
|
Idle Rig Fees
|
8
|
|
|
7
|
|
|
1
|
|
|
14.3
|
%
|
|||
Litigation Expense
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Insurance Expense
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Severance Expense
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
(100.0
|
)%
|
|||
Other
|
2
|
|
|
1
|
|
|
1
|
|
|
100.0
|
%
|
|||
Total Other Corporate Expenses
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
1
|
|
|
4.8
|
%
|
•
|
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
$2
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 September 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 section (Gathering Revenue) of the Other Gas Segment.
|
•
|
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
$1
million for the current quarter as compared to the prior year quarter.
|
•
|
Severance expense was a result of the Company reorganization that occurred in the third quarter of 2015.
|
•
|
Other
increase
d
$1
million due to a 401(k) discretionary contribution in the current period, as well as various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended
|
||||||||||
|
September 30, 2016
|
||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
||||||
Sales:
|
|
|
|
|
|
||||||
Coal Sales
|
$
|
268
|
|
|
$
|
323
|
|
|
$
|
(55
|
)
|
Freight Revenue
|
9
|
|
|
2
|
|
|
7
|
|
|||
Miscellaneous Other Income
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total Revenue and Other Income
|
279
|
|
|
327
|
|
|
(48
|
)
|
|||
Operating Costs and Expenses:
|
|
|
|
|
|
||||||
Operating Costs
|
176
|
|
|
187
|
|
|
(11
|
)
|
|||
Depreciation, Depletion and Amortization
|
40
|
|
|
41
|
|
|
(1
|
)
|
|||
Total Operating Costs and Expenses
|
216
|
|
|
228
|
|
|
(12
|
)
|
|||
Other Costs and Expenses:
|
|
|
|
|
|
||||||
Other Costs
|
7
|
|
|
(49
|
)
|
|
56
|
|
|||
Depreciation, Depletion and Amortization
|
2
|
|
|
3
|
|
|
(1
|
)
|
|||
Total Other Costs and Expenses
|
9
|
|
|
(46
|
)
|
|
55
|
|
|||
Freight Expense
|
9
|
|
|
2
|
|
|
7
|
|
|||
Selling, General and Administrative Costs
|
8
|
|
|
9
|
|
|
(1
|
)
|
|||
Total PA Mining Operation Costs
|
242
|
|
|
193
|
|
|
49
|
|
|||
Interest Expense
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total PA Mining Operations Division Expense
|
244
|
|
|
195
|
|
|
49
|
|
|||
Earnings Before Income Tax
|
$
|
35
|
|
|
$
|
132
|
|
|
$
|
(97
|
)
|
|
For the Three Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Mining Operations Tons Sold (in millions)
|
6.0
|
|
|
5.7
|
|
|
0.3
|
|
|
5.3
|
%
|
|||
Average Sales Price Per PA Mining Operations Ton Sold
|
$
|
44.30
|
|
|
$
|
56.99
|
|
|
$
|
(12.69
|
)
|
|
(22.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
29.29
|
|
|
$
|
33.21
|
|
|
$
|
(3.92
|
)
|
|
(11.8
|
)%
|
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
6.50
|
|
|
7.05
|
|
|
(0.55
|
)
|
|
(7.8
|
)%
|
|||
Total Costs Per PA Mining Operations Ton Sold
|
$
|
35.79
|
|
|
$
|
40.26
|
|
|
$
|
(4.47
|
)
|
|
(11.1
|
)%
|
Average Margin Per PA Mining Operations Ton Sold
|
$
|
8.51
|
|
|
$
|
16.73
|
|
|
$
|
(8.22
|
)
|
|
(49.1
|
)%
|
|
For the Three Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Other Outside Sales
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
—
|
%
|
Miscellaneous Other Income
|
11
|
|
|
21
|
|
|
(10
|
)
|
|
(47.6
|
)%
|
|||
Gain on Sale of Assets
|
—
|
|
|
47
|
|
|
(47
|
)
|
|
(100.0
|
)%
|
|||
Total Revenue
|
16
|
|
|
73
|
|
|
(57
|
)
|
|
(78.1
|
)%
|
|||
Miscellaneous Operating Expense
|
40
|
|
|
(3
|
)
|
|
43
|
|
|
(1,433.3
|
)%
|
|||
Selling, General, and Administrative Costs
|
5
|
|
|
6
|
|
|
(1
|
)
|
|
(16.7
|
)%
|
|||
Depreciation, Depletion and Amortization
|
8
|
|
|
11
|
|
|
(3
|
)
|
|
(27.3
|
)%
|
|||
Interest Expense
|
44
|
|
|
46
|
|
|
(2
|
)
|
|
(4.3
|
)%
|
|||
Total Other Costs
|
97
|
|
|
60
|
|
|
37
|
|
|
61.7
|
%
|
|||
(Loss) Income Before Income Tax
|
(81
|
)
|
|
13
|
|
|
(94
|
)
|
|
(723.1
|
)%
|
|||
Income Tax Expense
|
53
|
|
|
66
|
|
|
(13
|
)
|
|
(19.7
|
)%
|
|||
Net Loss
|
$
|
(134
|
)
|
|
$
|
(53
|
)
|
|
$
|
(81
|
)
|
|
152.8
|
%
|
|
|
For the Three Months Ended September 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Royalty Income
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
(3
|
)
|
Right of Way Sales
|
|
—
|
|
|
3
|
|
|
(3
|
)
|
|||
Equity in Earnings of Affiliates
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Rental Income
|
|
9
|
|
|
9
|
|
|
—
|
|
|||
Other Income
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Total Miscellaneous Other Income
|
|
$
|
11
|
|
|
$
|
21
|
|
|
$
|
(10
|
)
|
•
|
Royalty Income related to non-operated coal properties
decrease
d
$3 million
in the period-to period comparison primarily due to the overall decrease in domestic coal pricing.
|
•
|
Right of Way Sales
decrease
d
$3 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
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. See Note 3 - Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional details.
|
•
|
Other Income
decreased
$2 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
|
For the Three Months Ended September 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
OPEB Plan Changes
|
|
$
|
—
|
|
|
$
|
(48
|
)
|
|
$
|
48
|
|
Pension Settlement
|
|
4
|
|
|
3
|
|
|
1
|
|
|||
Bank Fees
|
|
5
|
|
|
4
|
|
|
1
|
|
|||
Lease Rental Expense
|
|
8
|
|
|
7
|
|
|
1
|
|
|||
Coal Terminal Operations
|
|
5
|
|
|
4
|
|
|
1
|
|
|||
Closed and Idle Mines
|
|
2
|
|
|
2
|
|
|
—
|
|
|||
UMWA OPEB Expense
|
|
11
|
|
|
12
|
|
|
(1
|
)
|
|||
Severance Payments
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
|||
Pension Expense
|
|
(3
|
)
|
|
1
|
|
|
(4
|
)
|
|||
Other
|
|
8
|
|
|
8
|
|
|
—
|
|
|||
Miscellaneous Operating Expense
|
|
$
|
40
|
|
|
$
|
(3
|
)
|
|
$
|
43
|
|
•
|
Income of
$48 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 Income Attributable to CONSOL Energy Shareholders" of this quarterly report for more information. No such transactions occurred in the current period.
|
•
|
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
September 30, 2016
, primarily as a result of the sale of the Buchanan Mine in the first quarter of 2016 and the sale of the Fola and Miller Creek mining complexes in the third 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.
|
•
|
Bank Fees increased
$1 million
in the period-to-period comparison due to various items that occurred throughout both periods, none of which were individually material.
|
•
|
Lease Rental Expense
increased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Coal Terminal Operations costs
increased
$1 million
primarily due to an increase in supply costs.
|
•
|
UMWA OPEB Expense
decreased
$1 million
primarily due to a decrease in interest costs.
|
•
|
Severance Payments were
$4 million
for the three months ended
September 30, 2015
related to the company reorganization that occurred in the prior year period. No such transactions occurred in the current period.
|
•
|
Actuarially-calculated amortization decreased
$4
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.
|
|
For the Three Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Earnings Before Income Tax Excluding Noncontrolling Interest
|
$
|
113
|
|
|
$
|
189
|
|
|
$
|
(76
|
)
|
|
(40.2
|
)%
|
Income Tax Expense
|
$
|
53
|
|
|
$
|
66
|
|
|
$
|
(13
|
)
|
|
(19.7
|
)%
|
Effective Income Tax Rate
|
46.7
|
%
|
|
34.9
|
%
|
|
11.8
|
%
|
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
(Dollars in thousands)
|
2016
|
|
2015
|
|
Variance
|
||||||
Loss from Continuing Operations
|
$
|
(214,770
|
)
|
|
$
|
(395,609
|
)
|
|
$
|
180,839
|
|
Loss from Discontinued Operations
|
(322,747
|
)
|
|
(3,192
|
)
|
|
(319,555
|
)
|
|||
Net Loss
|
$
|
(537,517
|
)
|
|
$
|
(398,801
|
)
|
|
$
|
(138,716
|
)
|
Less: Net Income Attributable to Noncontrolling Interest
|
4,541
|
|
|
6,490
|
|
|
(1,949
|
)
|
|||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(542,058
|
)
|
|
$
|
(405,291
|
)
|
|
$
|
(136,767
|
)
|
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
in thousands (unless noted)
|
|
2016
|
|
2015
|
|
Variance
|
|
Percent Change
|
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|||||||
NGLs:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
31,020
|
|
|
23,357
|
|
|
7,663
|
|
|
32.8
|
%
|
|||
Sales Volume (Mbbls)
|
|
5,170
|
|
|
3,893
|
|
|
1,277
|
|
|
32.8
|
%
|
|||
Gross Price ($/Bbl)
|
|
$
|
12.78
|
|
|
$
|
11.52
|
|
|
$
|
1.26
|
|
|
10.9
|
%
|
Gross Revenue
|
|
$
|
66,161
|
|
|
$
|
44,838
|
|
|
$
|
21,323
|
|
|
47.6
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
308
|
|
|
495
|
|
|
(187
|
)
|
|
(37.8
|
)%
|
|||
Sales Volume (Mbbls)
|
|
51
|
|
|
83
|
|
|
(32
|
)
|
|
(38.6
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
35.34
|
|
|
$
|
49.68
|
|
|
$
|
(14.34
|
)
|
|
(28.9
|
)%
|
Gross Revenue
|
|
$
|
1,818
|
|
|
$
|
4,098
|
|
|
$
|
(2,280
|
)
|
|
(55.6
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
4,263
|
|
|
5,497
|
|
|
(1,234
|
)
|
|
(22.4
|
)%
|
|||
Sales Volume (Mbbls)
|
|
711
|
|
|
916
|
|
|
(205
|
)
|
|
(22.4
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
26.94
|
|
|
$
|
26.94
|
|
|
$
|
—
|
|
|
—
|
%
|
Gross Revenue
|
|
$
|
19,147
|
|
|
$
|
24,706
|
|
|
$
|
(5,559
|
)
|
|
(22.5
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
257,534
|
|
|
203,834
|
|
|
53,700
|
|
|
26.3
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
1.82
|
|
|
$
|
2.30
|
|
|
$
|
(0.48
|
)
|
|
(20.9
|
)%
|
Gross Revenue
|
|
$
|
468,399
|
|
|
$
|
469,182
|
|
|
$
|
(783
|
)
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Hedging Impact ($/Mcf)
|
|
$
|
0.79
|
|
|
$
|
0.57
|
|
|
$
|
0.22
|
|
|
38.6
|
%
|
Gain on Commodity Derivative Instruments - Cash Settlement
|
|
$
|
203,303
|
|
|
$
|
116,868
|
|
|
$
|
86,435
|
|
|
74.0
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Total E&P Sales Volumes (Bcfe)
|
293.1
|
|
|
233.2
|
|
|
59.9
|
|
|
25.7
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price (per Mcfe)
|
$
|
2.59
|
|
|
$
|
2.83
|
|
|
$
|
(0.24
|
)
|
|
(8.5
|
)%
|
Average Costs (per Mcfe)
|
2.35
|
|
|
2.73
|
|
|
(0.38
|
)
|
|
(13.9
|
)%
|
|||
Margin
|
$
|
0.24
|
|
|
$
|
0.10
|
|
|
$
|
0.14
|
|
|
140.0
|
%
|
•
|
The improvement in unit costs is primarily due to the continuing shift towards lower cost Marcellus and Utica Shale production, ongoing cost reduction efforts and the
25.7%
increase in total volumes sold in the period-to-period comparison.
Marcellus production made up
53.2%
of natural gas and liquid sales volumes for the
nine months
ended
September 30, 2016
, compared to
52.6%
for the
nine months
months ended
September 30, 2015
. Utica production made up
23.4%
of natural gas and liquid sales volumes for the
nine months
ended
September 30, 2016
, compared to
15.2%
for the
nine months
ended
September 30, 2015
.
|
•
|
Lease operating expense decreased on a per unit basis in the period-to-period comparison due to a decrease in well tending costs, employee related costs and repairs and maintenance costs. The decrease in unit costs is also due to the overall increase in E&P sales volumes. The decrease in unit costs was partially offset by an increase in salt water disposal costs.
|
•
|
Transportation, gathering and compression expense decreased on a per unit basis in the period-to-period comparison due to the overall increase in E&P sales volumes and the shift towards dry Utica Shale production which has lower gathering costs since there are no associated processing fees. 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 the Company's shallow oil and gas rates following the impairment in carrying value that was recognized in the second quarter of 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), as well as the increase in E&P sales volumes from the Company's 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.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Mining Operations Tons Sold (in millions)
|
17.5
|
|
|
17.9
|
|
|
(0.4
|
)
|
|
(2.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price per ton sold
|
$
|
42.60
|
|
|
$
|
57.41
|
|
|
$
|
(14.81
|
)
|
|
(25.8
|
)%
|
Average Cost of Goods Sold per ton
|
34.53
|
|
|
42.35
|
|
|
(7.82
|
)
|
|
(18.5
|
)%
|
|||
Margin
|
$
|
8.07
|
|
|
$
|
15.06
|
|
|
$
|
(6.99
|
)
|
|
(46.4
|
)%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Short-Term Incentive Compensation
|
$
|
12
|
|
|
$
|
33
|
|
|
$
|
(21
|
)
|
|
(63.6
|
)%
|
Employee Wages and Related Expenses
|
41
|
|
|
50
|
|
|
(9
|
)
|
|
(18.0
|
)%
|
|||
Advertising and Promotion
|
4
|
|
|
5
|
|
|
(1
|
)
|
|
(20.0
|
)%
|
|||
Consulting and Professional Services
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
%
|
|||
Rent
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|||
Stock-Based Compensation
|
24
|
|
|
20
|
|
|
4
|
|
|
20.0
|
%
|
|||
Other
|
6
|
|
|
—
|
|
|
6
|
|
|
100.0
|
%
|
|||
Total Company Selling, General and Administrative Expense
|
$
|
104
|
|
|
$
|
125
|
|
|
$
|
(21
|
)
|
|
(16.8
|
)%
|
•
|
The
decrease
in Short-Term Incentive Compensation was a result of lower payouts in the current period.
|
•
|
Employee Wages and Related Expenses
decreased
$9 million
primarily due to the Company reorganization that occurred in the second half of 2015 and the first quarter of 2016.
|
•
|
Advertising and Promotion expense
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Stock-based compensation
increased
$4 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.
|
•
|
Other
increased
$6 million
in the period-to-period comparison primarily due to a 401(k) discretionary contribution in the current period.
|
|
|
For the Nine Months Ended
|
|
Difference to Nine Months Ended
|
||||||||||||||||||||||||||||||||||||
|
|
September 30, 2016
|
|
September 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
|
|
287
|
|
|
115
|
|
|
123
|
|
|
30
|
|
|
555
|
|
|
4
|
|
|
58
|
|
|
(35
|
)
|
|
(14
|
)
|
|
13
|
|
||||||||||
Gain (Loss) on Commodity Derivative Instruments
|
|
121
|
|
|
25
|
|
|
44
|
|
|
(136
|
)
|
|
54
|
|
|
66
|
|
|
24
|
|
|
(3
|
)
|
|
(284
|
)
|
|
(197
|
)
|
||||||||||
Purchased Gas Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
||||||||||
Miscellaneous Other Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||||||
Gain on Sale of Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
||||||||||
Total Revenue and Other Income
|
|
408
|
|
|
140
|
|
|
167
|
|
|
(6
|
)
|
|
709
|
|
|
70
|
|
|
82
|
|
|
(38
|
)
|
|
(254
|
)
|
|
(140
|
)
|
||||||||||
Lease Operating Expense
|
|
27
|
|
|
17
|
|
|
18
|
|
|
12
|
|
|
74
|
|
|
(6
|
)
|
|
—
|
|
|
(9
|
)
|
|
(7
|
)
|
|
(22
|
)
|
||||||||||
Production, Ad Valorem, and Other Fees
|
|
13
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
24
|
|
|
(1
|
)
|
|
3
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||
Transportation, Gathering and Compression
|
|
171
|
|
|
37
|
|
|
54
|
|
|
18
|
|
|
280
|
|
|
29
|
|
|
14
|
|
|
(10
|
)
|
|
(2
|
)
|
|
31
|
|
||||||||||
Depreciation, Depletion and Amortization
|
|
154
|
|
|
64
|
|
|
66
|
|
|
27
|
|
|
311
|
|
|
37
|
|
|
26
|
|
|
2
|
|
|
(23
|
)
|
|
42
|
|
||||||||||
Selling, General, and Administrative Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||||
Purchased Gas Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
||||||||||
Exploration and Production Related Other Costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||
Other Corporate Expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(810
|
)
|
|
(810
|
)
|
||||||||||
Total Exploration and Production Costs
|
|
365
|
|
|
122
|
|
|
142
|
|
|
234
|
|
|
863
|
|
|
59
|
|
|
43
|
|
|
(19
|
)
|
|
(829
|
)
|
|
(746
|
)
|
||||||||||
Interest Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||||
Total E&P Division Costs
|
|
365
|
|
|
122
|
|
|
142
|
|
|
236
|
|
|
865
|
|
|
59
|
|
|
43
|
|
|
(19
|
)
|
|
(832
|
)
|
|
(749
|
)
|
||||||||||
Earnings (Loss) Before Income Tax
|
|
$
|
43
|
|
|
$
|
18
|
|
|
$
|
25
|
|
|
$
|
(242
|
)
|
|
$
|
(156
|
)
|
|
$
|
11
|
|
|
$
|
39
|
|
|
$
|
(19
|
)
|
|
$
|
578
|
|
|
$
|
609
|
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
135.3
|
|
|
105.6
|
|
|
29.7
|
|
|
28.1
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
18.7
|
|
|
14.2
|
|
|
4.5
|
|
|
31.7
|
%
|
|||
Condensate Sales Volumes (Bcfe)*
|
2.0
|
|
|
2.8
|
|
|
(0.8
|
)
|
|
(28.6
|
)%
|
|||
Total Marcellus Sales Volumes (Bcfe)*
|
156.0
|
|
|
122.6
|
|
|
33.4
|
|
|
27.2
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.79
|
|
|
$
|
2.21
|
|
|
$
|
(0.42
|
)
|
|
(19.0
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.89
|
|
|
$
|
0.52
|
|
|
$
|
0.37
|
|
|
71.2
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
1.99
|
|
|
$
|
2.42
|
|
|
$
|
(0.43
|
)
|
|
(17.8
|
)%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
4.18
|
|
|
$
|
5.40
|
|
|
$
|
(1.22
|
)
|
|
(22.6
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Marcellus Sales Price (per Mcfe)
|
$
|
2.62
|
|
|
$
|
2.75
|
|
|
$
|
(0.13
|
)
|
|
(4.7
|
)%
|
Average Marcellus Lease Operating Expenses (per Mcfe)
|
0.17
|
|
|
0.27
|
|
|
(0.10
|
)
|
|
(37.0
|
)%
|
|||
Average Marcellus Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.09
|
|
|
0.12
|
|
|
(0.03
|
)
|
|
(25.0
|
)%
|
|||
Average Marcellus Transportation, Gathering and Compression costs (per Mcfe)
|
1.10
|
|
|
1.16
|
|
|
(0.06
|
)
|
|
(5.2
|
)%
|
|||
Average Marcellus Depreciation, Depletion and Amortization costs (per Mcfe)
|
0.98
|
|
|
0.94
|
|
|
0.04
|
|
|
4.3
|
%
|
|||
Total Average Marcellus Costs (per Mcfe)
|
$
|
2.34
|
|
|
$
|
2.49
|
|
|
$
|
(0.15
|
)
|
|
(6.0
|
)%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
0.28
|
|
|
$
|
0.26
|
|
|
$
|
0.02
|
|
|
7.7
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Utica Gas Sales Volumes (Bcf)
|
54.0
|
|
|
23.6
|
|
|
30.4
|
|
|
128.8
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
12.3
|
|
|
9.1
|
|
|
3.2
|
|
|
35.2
|
%
|
|||
Oil Sales Volumes (Bcfe)*
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
(100.0
|
)%
|
|||
Condensate Sales Volumes (Bcfe)*
|
2.3
|
|
|
2.7
|
|
|
(0.4
|
)
|
|
(14.8
|
)%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
68.6
|
|
|
35.5
|
|
|
33.1
|
|
|
93.2
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.40
|
|
|
$
|
1.54
|
|
|
$
|
(0.14
|
)
|
|
(9.1
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.46
|
|
|
$
|
0.04
|
|
|
$
|
0.42
|
|
|
1,050.0
|
%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
2.35
|
|
|
$
|
1.14
|
|
|
$
|
1.21
|
|
|
106.1
|
%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
—
|
|
|
$
|
6.69
|
|
|
$
|
(6.69
|
)
|
|
(100.0
|
)%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
4.77
|
|
|
$
|
3.59
|
|
|
$
|
1.18
|
|
|
32.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica Sales Price (per Mcfe)
|
$
|
2.04
|
|
|
$
|
1.63
|
|
|
$
|
0.41
|
|
|
25.2
|
%
|
Average Utica Lease Operating Expenses (per Mcfe)
|
0.25
|
|
|
0.48
|
|
|
(0.23
|
)
|
|
(47.9
|
)%
|
|||
Average Utica Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.05
|
|
|
0.04
|
|
|
0.01
|
|
|
25.0
|
%
|
|||
Average Utica Transportation, Gathering and Compression Costs (per Mcfe)
|
0.54
|
|
|
0.65
|
|
|
(0.11
|
)
|
|
(16.9
|
)%
|
|||
Average Utica Depreciation, Depletion and Amortization Costs (per Mcfe)
|
0.94
|
|
|
1.06
|
|
|
(0.12
|
)
|
|
(11.3
|
)%
|
|||
Total Average Utica Costs (per Mcfe)
|
$
|
1.78
|
|
|
$
|
2.23
|
|
|
$
|
(0.45
|
)
|
|
(20.2
|
)%
|
Average Margin for Utica (per Mcfe)
|
$
|
0.26
|
|
|
$
|
(0.60
|
)
|
|
$
|
0.86
|
|
|
143.3
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
51.6
|
|
|
56.2
|
|
|
(4.6
|
)
|
|
(8.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
2.38
|
|
|
$
|
2.81
|
|
|
$
|
(0.43
|
)
|
|
(15.3
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.85
|
|
|
$
|
0.83
|
|
|
$
|
0.02
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM Sales Price (per Mcf)
|
$
|
3.23
|
|
|
$
|
3.64
|
|
|
$
|
(0.41
|
)
|
|
(11.3
|
)%
|
Average CBM Lease Operating Expenses (per Mcf)
|
0.36
|
|
|
0.47
|
|
|
(0.11
|
)
|
|
(23.4
|
)%
|
|||
Average CBM Production, Ad Valorem, and Other Fees (per Mcf)
|
0.09
|
|
|
0.11
|
|
|
(0.02
|
)
|
|
(18.2
|
)%
|
|||
Average CBM Transportation, Gathering and Compression Costs (per Mcf)
|
1.05
|
|
|
1.14
|
|
|
(0.09
|
)
|
|
(7.9
|
)%
|
|||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf)
|
1.25
|
|
|
1.14
|
|
|
0.11
|
|
|
9.6
|
%
|
|||
Total Average CBM Costs (per Mcf)
|
$
|
2.75
|
|
|
$
|
2.86
|
|
|
$
|
(0.11
|
)
|
|
(3.8
|
)%
|
Average Margin for CBM (per Mcf)
|
$
|
0.48
|
|
|
$
|
0.78
|
|
|
$
|
(0.30
|
)
|
|
(38.5
|
)%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
16.6
|
|
|
18.5
|
|
|
(1.9
|
)
|
|
(10.3
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.3
|
|
|
0.4
|
|
|
(0.1
|
)
|
|
(25.0
|
)%
|
|||
Total Other Sales Volumes (Bcfe)*
|
16.9
|
|
|
18.9
|
|
|
(2.0
|
)
|
|
(10.6
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
1.68
|
|
|
$
|
2.25
|
|
|
$
|
(0.57
|
)
|
|
(25.3
|
)%
|
Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
0.84
|
|
|
$
|
0.77
|
|
|
$
|
0.07
|
|
|
9.1
|
%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
5.99
|
|
|
$
|
8.49
|
|
|
$
|
(2.50
|
)
|
|
(29.4
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other Sales Price (per Mcfe)
|
$
|
2.58
|
|
|
$
|
3.15
|
|
|
$
|
(0.57
|
)
|
|
(18.1
|
)%
|
Average Other Lease Operating Expenses (per Mcfe)
|
0.65
|
|
|
1.00
|
|
|
(0.35
|
)
|
|
(35.0
|
)%
|
|||
Average Other Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.13
|
|
|
0.17
|
|
|
(0.04
|
)
|
|
(23.5
|
)%
|
|||
Average Other Transportation, Gathering and Compression Costs (per Mcfe)
|
1.03
|
|
|
1.02
|
|
|
0.01
|
|
|
1.0
|
%
|
|||
Average Other Depreciation, Depletion and Amortization Costs (per Mcfe)
|
1.62
|
|
|
2.57
|
|
|
(0.95
|
)
|
|
(37.0
|
)%
|
|||
Total Average Other Costs (per Mcfe)
|
$
|
3.43
|
|
|
$
|
4.76
|
|
|
$
|
(1.33
|
)
|
|
(27.9
|
)%
|
Average Margin for Other (per Mcfe)
|
$
|
(0.85
|
)
|
|
$
|
(1.61
|
)
|
|
$
|
0.76
|
|
|
47.2
|
%
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change |
|||||||
Right of Way Sales
|
$
|
11
|
|
|
$
|
2
|
|
|
$
|
9
|
|
|
450.0
|
%
|
Equity in Earnings of Affiliates - CONE
|
40
|
|
|
32
|
|
|
8
|
|
|
25.0
|
%
|
|||
Gathering Revenue
|
8
|
|
|
7
|
|
|
1
|
|
|
14.3
|
%
|
|||
Other
|
2
|
|
|
4
|
|
|
(2
|
)
|
|
(50.0
|
)%
|
|||
Total Miscellaneous Other Income
|
$
|
61
|
|
|
$
|
45
|
|
|
$
|
16
|
|
|
35.6
|
%
|
•
|
Right of Way Sales increased $
9
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
$
8
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
increased
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 $
2
million due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Lease Expiration Costs
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
(3
|
)
|
|
(75.0
|
)%
|
Land Rentals
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
(33.3
|
)%
|
|||
Other
|
2
|
|
|
1
|
|
|
1
|
|
|
100.0
|
%
|
|||
Total Exploration and Other Costs
|
$
|
5
|
|
|
$
|
8
|
|
|
$
|
(3
|
)
|
|
(37.5
|
)%
|
•
|
Lease expiration costs
decrease
d by
$3
million in the period-to-period comparison, primarily due to a decreased number of leases expiring in the
nine months
ended
September 30, 2016
as compared to the
nine months
ended
September 30, 2015
.
|
•
|
Land rental costs
decrease
d by
$1
million in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
The remaining
$1
million
increase
relates to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended September 30,
|
||||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
||||||||
Impairment of Exploration and Production Properties
|
$
|
—
|
|
|
$
|
829
|
|
|
$
|
(829
|
)
|
|
(100.0
|
)%
|
|
Severance Expense
|
1
|
|
|
5
|
|
|
(4
|
)
|
|
(80.0
|
)%
|
||||
Unutilized Firm Transportation and Processing Fees
|
25
|
|
|
26
|
|
|
(1
|
)
|
|
(3.8
|
)%
|
||||
Insurance Expense
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
||||
Litigation Expense
|
3
|
|
|
2
|
|
|
1
|
|
|
50.0
|
%
|
||||
Idle Rig Fees
|
27
|
|
|
11
|
|
|
16
|
|
|
145.5
|
%
|
||||
Other
|
8
|
|
|
1
|
|
|
7
|
|
|
700.0
|
%
|
||||
Total Other Corporate Expenses
|
$
|
66
|
|
—
|
|
$
|
876
|
|
|
$
|
(810
|
)
|
|
(92.5
|
)%
|
•
|
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.
|
•
|
Severance expense decreased
$4
million in period-to-period comparison primarily due to the Company reorganization that occurred in the third quarter of 2015. Amounts recorded in current period are in connection with the Company's ongoing cost reduction efforts.
|
•
|
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 $
1
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
nine months
ended
September 30, 2016
and 2015 the Company recognized approximately $7 million and $6 million, respectively, of revenue in connection with such releases. This revenue is included in miscellaneous other income (Gathering Revenue) of the Other Gas Segment.
|
•
|
Litigation expense increased $
1
million in the period-to-period comparison due to various items throughout both periods, 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
increase
d by
$16
million for the current period as compared to the prior period.
|
•
|
Other expenses
increase
d
$7
million in the period-to-period comparison due to a 401(k) discretionary contribution in the current period, as well as various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended
|
||||||||||
|
September 30, 2016
|
||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
||||||
Sales:
|
|
|
|
|
|
||||||
Coal Sales
|
$
|
744
|
|
|
$
|
1,027
|
|
|
$
|
(283
|
)
|
Freight Revenue
|
34
|
|
|
10
|
|
|
24
|
|
|||
Miscellaneous Other Income
|
10
|
|
|
3
|
|
|
7
|
|
|||
Total Revenue and Other Income
|
788
|
|
|
1,040
|
|
|
(252
|
)
|
|||
Operating Costs and Expenses:
|
|
|
|
|
|
||||||
Operating Costs
|
489
|
|
|
629
|
|
|
(140
|
)
|
|||
Depreciation, Depletion and Amortization
|
114
|
|
|
129
|
|
|
(15
|
)
|
|||
Total Operating Costs and Expenses
|
603
|
|
|
758
|
|
|
(155
|
)
|
|||
Other Costs and Expenses:
|
|
|
|
|
|
||||||
Other Costs
|
33
|
|
|
(64
|
)
|
|
97
|
|
|||
Depreciation, Depletion and Amortization
|
11
|
|
|
8
|
|
|
3
|
|
|||
Total Other Costs and Expenses
|
44
|
|
|
(56
|
)
|
|
100
|
|
|||
Freight Expense
|
34
|
|
|
10
|
|
|
24
|
|
|||
Selling, General and Administrative Costs
|
20
|
|
|
34
|
|
|
(14
|
)
|
|||
Total PA Mining Operation Costs
|
701
|
|
|
746
|
|
|
(45
|
)
|
|||
Interest Expense
|
7
|
|
|
2
|
|
|
5
|
|
|||
Total PA Mining Operations Division Expense
|
708
|
|
|
748
|
|
|
(40
|
)
|
|||
Earnings Before Income Tax
|
$
|
80
|
|
|
$
|
292
|
|
|
$
|
(212
|
)
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Mining Operations Tons Sold (in millions)
|
17.5
|
|
|
17.9
|
|
|
(0.4
|
)
|
|
(2.2
|
)%
|
|||
Average Sales Price Per PA Mining Operations Ton Sold
|
$
|
42.60
|
|
|
$
|
57.41
|
|
|
$
|
(14.81
|
)
|
|
(25.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
28.05
|
|
|
$
|
35.28
|
|
|
$
|
(7.23
|
)
|
|
(20.5
|
)%
|
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
6.48
|
|
|
7.07
|
|
|
(0.59
|
)
|
|
(8.3
|
)%
|
|||
Total Costs Per PA Mining Operations Ton Sold
|
$
|
34.53
|
|
|
$
|
42.35
|
|
|
$
|
(7.82
|
)
|
|
(18.5
|
)%
|
Average Margin Per PA Mining Operations Ton Sold
|
$
|
8.07
|
|
|
$
|
15.06
|
|
|
$
|
(6.99
|
)
|
|
(46.4
|
)%
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
OPEB Plan Changes
|
|
$
|
—
|
|
|
$
|
(79
|
)
|
|
$
|
79
|
|
Idle Mine Costs
|
|
13
|
|
|
—
|
|
|
13
|
|
|||
Litigation Expense
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Purchased Coal Costs
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Severance Expense
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Amortization of Financing Charges
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
|||
Other
|
|
13
|
|
|
8
|
|
|
5
|
|
|||
Other Costs and Expenses
|
|
$
|
33
|
|
|
$
|
(64
|
)
|
|
$
|
97
|
|
•
|
Income of
$79 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.
|
•
|
Idle Mine Costs
increased
$13 million
, due to the temporary idling of one longwall at the PA Mining Operations complex for approximately 90 days in the first half of 2016 to optimize operating schedules.
|
•
|
Approximately
$3 million
of costs were incurred during the nine months ended
September 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.
|
•
|
Purchased Coal Costs
increased
$3 million
due to higher volumes of coal that needed to be purchased to fulfill various contracts.
|
•
|
Severance expense of $
1 million
was incurred during the nine months ended
September 30, 2016
in connection with the Company's ongoing cost reduction efforts. No such transactions occurred in the prior period.
|
•
|
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 a 401(k) discretionary contribution in the current period, as well as various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Nine Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Other Outside Sales
|
$
|
21
|
|
|
$
|
25
|
|
|
$
|
(4
|
)
|
|
(16.0
|
)%
|
Miscellaneous Other Income
|
43
|
|
|
63
|
|
|
(20
|
)
|
|
(31.7
|
)%
|
|||
Gain on Sale of Assets
|
3
|
|
|
51
|
|
|
(48
|
)
|
|
(94.1
|
)%
|
|||
Total Revenue
|
67
|
|
|
139
|
|
|
(72
|
)
|
|
(51.8
|
)%
|
|||
Miscellaneous Operating Expense
|
128
|
|
|
71
|
|
|
57
|
|
|
80.3
|
%
|
|||
Selling, General, and Administrative Costs
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
|||
Depreciation, Depletion and Amortization
|
4
|
|
|
21
|
|
|
(17
|
)
|
|
(81.0
|
)%
|
|||
Loss on Debt Extinguishment
|
—
|
|
|
68
|
|
|
(68
|
)
|
|
(100.0
|
)%
|
|||
Interest Expense
|
136
|
|
|
143
|
|
|
(7
|
)
|
|
(4.9
|
)%
|
|||
Total Other Costs
|
278
|
|
|
313
|
|
|
(35
|
)
|
|
(11.2
|
)%
|
|||
Loss Before Income Tax
|
(211
|
)
|
|
(174
|
)
|
|
(37
|
)
|
|
21.3
|
%
|
|||
Income Tax Benefit
|
(72
|
)
|
|
(251
|
)
|
|
179
|
|
|
(71.3
|
)%
|
|||
Net (Loss) Income
|
$
|
(139
|
)
|
|
$
|
77
|
|
|
$
|
(216
|
)
|
|
(280.5
|
)%
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Royalty Income
|
|
$
|
7
|
|
|
$
|
13
|
|
|
$
|
(6
|
)
|
Equity in Earnings of Affiliates
|
|
1
|
|
|
7
|
|
|
(6
|
)
|
|||
Right of Way Sales
|
|
6
|
|
|
8
|
|
|
(2
|
)
|
|||
Purchased Coal Sales
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Rental Income
|
|
27
|
|
|
28
|
|
|
(1
|
)
|
|||
Interest Income
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Other Income
|
|
1
|
|
|
3
|
|
|
(2
|
)
|
|||
Total Miscellaneous Other Income
|
|
$
|
43
|
|
|
$
|
63
|
|
|
$
|
(20
|
)
|
•
|
Royalty Income related to non-operated coal properties
decreased
$6 million
primarily due to the overall decrease in domestic coal pricing.
|
•
|
Equity in Earnings of Affiliates
decreased
$6 million
due to the sale of the Company's 49% interest in Western Allegheny Energy in September 2015. See Note 3 - Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional details.
|
•
|
Right of Way sales
decreased
$2 million
in the period-to-period comparison due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Purchased Coal Sales
decreased
$2 million
due to various transactions that occurred throughout both periods, none of which were individually material
|
•
|
Rental Income
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Interest Income
decreased
$1 million
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 Nine Months Ended September 30,
|
||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
Variance
|
||||||
Pension Expense
|
|
$
|
(10
|
)
|
|
$
|
9
|
|
|
$
|
(19
|
)
|
Severance Payments
|
|
1
|
|
|
6
|
|
|
(5
|
)
|
|||
Coal Terminal Operations
|
|
13
|
|
|
16
|
|
|
(3
|
)
|
|||
Coal Reserve Holding Costs
|
|
4
|
|
|
6
|
|
|
(2
|
)
|
|||
UMWA OPEB Expense
|
|
33
|
|
|
35
|
|
|
(2
|
)
|
|||
Closed and Idle Mines
|
|
7
|
|
|
8
|
|
|
(1
|
)
|
|||
Lease Rental Expense
|
|
23
|
|
|
23
|
|
|
—
|
|
|||
Bank Fees
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Workers' Compensation
|
|
5
|
|
|
5
|
|
|
—
|
|
|||
Selling, General and Administrative Costs
|
|
10
|
|
|
9
|
|
|
1
|
|
|||
Litigation Expense
|
|
4
|
|
|
1
|
|
|
3
|
|
|||
Pension Settlement
|
|
17
|
|
|
3
|
|
|
14
|
|
|||
OPEB Plan Changes
|
|
—
|
|
|
(73
|
)
|
|
73
|
|
|||
Other
|
|
8
|
|
|
10
|
|
|
(2
|
)
|
|||
Miscellaneous Operating Expense
|
|
$
|
128
|
|
|
$
|
71
|
|
|
$
|
57
|
|
•
|
Actuarially-calculated amortization decreased
$19 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.
|
•
|
Severance payments
decreased
$5 million
in the period-to-period comparison, primarily related to the company reorganization that occurred in the prior year period.
|
•
|
Coal Terminal Operations
decreased
$3 million
due to
decreased
throughput volumes in the current period.
|
•
|
Coal Reserve Holding Costs
decreased
$2 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
UMWA OPEB Expense
decreased
$2 million
primarily due to a decrease in interest costs.
|
•
|
Closed and Idle Mines
decreased
$1 million
due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Selling, General and Administrative Costs
increased
$1 million
in the period-to-period comparison. Refer to the discussion of total Company selling, general and administrative costs contained in the section "Net Loss Attributable to CONSOL Energy Shareholders" of this quarterly report for a detailed cost explanation.
|
•
|
Litigation expense
increased
$3 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
nine
months ended
September 30, 2016
, primarily as a result of the sale of the Buchanan Mine in the first quarter of 2016 and the sale of the Fola and Miller Creek mining complexes in the third 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.
|
•
|
Income of
$73 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.
|
•
|
Other
decreased
$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 Nine Months Ended September 30,
|
|||||||||||||
(in millions)
|
2016
|
|
2015
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Loss Before Income Tax excluding Noncontrolling Interest
|
$
|
(291
|
)
|
|
$
|
(653
|
)
|
|
$
|
362
|
|
|
(55.4
|
)%
|
Income Tax Benefit
|
$
|
(72
|
)
|
|
$
|
(251
|
)
|
|
$
|
179
|
|
|
(71.3
|
)%
|
Effective Income Tax Rate
|
24.7
|
%
|
|
38.4
|
%
|
|
(13.7
|
)%
|
|
|
|
For the Nine Months Ended September 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
Cash Provided by Operating Activities
|
$
|
387
|
|
|
$
|
404
|
|
|
$
|
(17
|
)
|
Cash Provided by (Used in) Investing Activities
|
$
|
221
|
|
|
$
|
(882
|
)
|
|
$
|
1,103
|
|
Cash (Used in) Provided by Financing Activities
|
$
|
(600
|
)
|
|
$
|
384
|
|
|
$
|
(984
|
)
|
•
|
Net loss increased $139 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 a net change in discontinued operations of $323 million (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 $197 million and an increase of $201 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 $685 million in the period-to-period comparison due to the following:
|
◦
|
E&P division capital expenditures decreased $614 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.
|
◦
|
PA Mining Operations division capital expenditures decreased $65 million primarily due to a $31 million decrease in equipment purchases and rebuilds, a $20 million decrease in 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 $6 million due to various transactions that occurred throughout both periods, none of which were individually material.
|
•
|
Proceeds from the sale of assets decreased $44 million primarily due to the $76 million received in September 2015 related to the sale of CONSOL Energy's interest in its Western Allegheny Energy joint venture. See Note 3 - Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional details. The decrease was offset in part by various land and equipment asset sales that occurred throughout both periods none of which were individually material.
|
•
|
Net investment in equity affiliates changed $65 million in the period-to-period comparion primarily due to the sale of the Company's 49% interest in Western Allegheny Energy in September 2015, as discussed above. The remaining change was due to changes in the investment in CONE Midstream Partners, LP and CONE Gathering LLC (See Note
|
•
|
Discontinued Operations increased $397 million primarily as a result of the sale of the Buchanan Mine and certain other metallurgical coal reserves and the sale of the Miller Creek and Fola mining complexes in the
nine
months ended
September 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
nine
months ended
September 30, 2016
, CONSOL Energy made payments on the senior secured credit facility of $598 million compared to proceeds from the senior secured credit facility of $945 million in the
nine
months ended
September 30, 2015
.
|
•
|
In the
nine
months ended
September 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
nine
months ended
September 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
nine
months ended
September 30, 2016
.
|
•
|
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
|
$
|
65,615
|
|
|
$
|
47,236
|
|
|
$
|
14,124
|
|
|
$
|
5,403
|
|
|
$
|
132,378
|
|
Gas Firm Transportation and Processing
|
133,913
|
|
|
223,098
|
|
|
208,934
|
|
|
581,928
|
|
|
1,147,873
|
|
|||||
Long-Term Debt
|
1,873
|
|
|
1,585
|
|
|
303,710
|
|
|
2,453,315
|
|
|
2,760,483
|
|
|||||
Interest on Long-Term Debt
|
170,061
|
|
|
340,100
|
|
|
323,676
|
|
|
216,315
|
|
|
1,050,152
|
|
|||||
Capital (Finance) Lease Obligations
|
7,019
|
|
|
14,618
|
|
|
14,024
|
|
|
1,163
|
|
|
36,824
|
|
|||||
Interest on Capital (Finance) Lease Obligations
|
2,255
|
|
|
3,261
|
|
|
1,268
|
|
|
7
|
|
|
6,791
|
|
|||||
Operating Lease Obligations
|
86,078
|
|
|
101,792
|
|
|
36,483
|
|
|
79,651
|
|
|
304,004
|
|
|||||
Long-Term Liabilities—Employee Related (a)
|
66,844
|
|
|
131,300
|
|
|
130,220
|
|
|
551,826
|
|
|
880,190
|
|
|||||
Other Long-Term Liabilities (b)
|
322,450
|
|
|
159,143
|
|
|
46,808
|
|
|
276,284
|
|
|
804,685
|
|
|||||
Total Contractual Obligations (c)
|
$
|
856,108
|
|
|
$
|
1,022,133
|
|
|
$
|
1,079,247
|
|
|
$
|
4,165,892
|
|
|
$
|
7,123,380
|
|
(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, 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 $
2
million
on a note maturing through March 2018.
|
•
|
An aggregate principal amount of $
37
million
of capital leases with a weighted average interest rate of
6.60%
per annum.
|
•
|
An aggregate principal amount of
$208
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
|
|
N/A
|
|
|
63.6
|
|
|
63.6
|
|
|||||||
Weighted Average Hedge Price per Mcf
|
N/A
|
|
N/A
|
|
N/A
|
|
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|||||
2017 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
53.8
|
|
|
56.5
|
|
|
61.2
|
|
|
61.2
|
|
|
232.7
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.62
|
|
|
$
|
2.70
|
|
|
$
|
2.67
|
|
|
$
|
2.67
|
|
|
$
|
2.66
|
|
2018 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
39.7
|
|
|
40.1
|
|
|
40.5
|
|
|
40.5
|
|
|
160.8
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.70
|
|
|
$
|
2.73
|
|
|
$
|
2.73
|
|
|
$
|
2.73
|
|
|
$
|
2.72
|
|
2019 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
24.5
|
|
|
24.8
|
|
|
25.1
|
|
|
25.1
|
|
|
99.5
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.76
|
|
|
$
|
2.76
|
|
|
$
|
2.76
|
|
|
$
|
2.76
|
|
|
$
|
2.76
|
|
2020 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
10.0
|
|
|
10.1
|
|
|
10.2
|
|
|
10.2
|
|
|
40.5
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.87
|
|
|
$
|
2.87
|
|
|
$
|
2.87
|
|
|
$
|
2.88
|
|
|
$
|
2.88
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 6.
|
EXHIBITS
|
10.1
|
|
|
Purchase and Sale Agreement dated July 19, 2016, among CONSOL of Kentucky Inc., Island Creek Coal Company, Laurel Run Mining Company, and CNX Land LLC and Southeastern Land, LLC, incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on July 25, 2016.
|
|
|
|
|
10.2
|
|
|
Purchase and Sale Agreement dated July 19, 2016, among AMVEST West Virginia Coal, L.L.C., Braxton-Clay Land & Mineral, Inc., Nicholas-Clay Land & Mineral, Inc., Peters Creek Mineral Services, Inc., Terry Eagle Limited Partnership, Terry Eagle Coal Company, L.L.C., Fola Coal Company, L.L.C., Little Eagle Coal Company, L.L.C., and Vaughan Railroad Company and Southeastern Land, LLC, incorporated by reference to Exhibit 2.2 to Form 8-K (file no. 001-14901) filed on July 25, 2016.
|
|
|
|
|
10.3
|
|
|
Resignation, Consent and Appointment Agreement entered into as of September 12, 2016, by and among Bank of America, N.A., as the resigning Syndication Agent under that certain Amended and Restated Credit Agreement, dated as of June 18, 2014, JPMorgan Chase Bank, N.A., as the successor Syndication Agent, and CONSOL Energy Inc., a Delaware corporation, as the Borrower.
|
|
|
|
|
3.1
|
|
|
CONSOL Energy Inc. Bylaws (Amended and Restated on September 20, 2016), incorporated by reference to Exhibit 3.1 to Form 8-K (file no. 001-14901) filed on September 26, 2016.
|
|
|
|
|
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.
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||
32.2
|
|
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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.
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||
95
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|
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Mine Safety and Health Administration Safety Data.
|
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|
||
101
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|
|
Interactive Data File (Form 10-Q for the quarterly period ended September 30, 2016 furnished in XBRL).
|
CONSOL ENERGY INC.
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|||
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By:
|
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/s/ NICHOLAS J. DEIULIIS
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Nicholas J. DeIuliis
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Chief Executive Officer and President and Director
(Duly Authorized Officer and Principal Executive Officer)
|
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By:
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/
S
/ DAVID M. KHANI
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David M. Khani
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Chief Financial Officer and Executive Vice President
(Duly Authorized Officer and Principal Financial Officer)
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By:
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/
S
/ C. KRISTOPHER HAGEDORN
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C. Kristopher Hagedorn
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Vice President and Controller
(Duly Authorized Officer and Principal Accounting Officer)
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1.
|
Agency Resignation, Consent and Appointment
.
|
2.
|
Address for Notices
. As of the Resignation Effective Time, the address for notices made to the Syndication Agent shall be as follows:
|
3.
|
Representations and Warranties
.
|
4.
|
Conditions Precedent to Effectiveness
. For purposes of this Agreement, the term “
Resignation Effective Time
” means the first time (New York City time) at which all of the following conditions have been satisfied:
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5.
|
Further Assurances
.
|
6.
|
Successors and Assigns
. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto.
|
7.
|
Counterparts
. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which taken together shall be one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or electronic mail shall be effective as delivery of an original executed counterpart of this Agreement.
|
8.
|
Headings
. The section headings used in this Agreement are for convenience only and shall not affect the interpretation of any of the provisions hereof.
|
9.
|
Interpretation
. This Agreement is a Loan Document for the purposes of the Credit Agreement.
|
10.
|
GOVERNING LAW
. The provisions of Section 11.11.1 [GOVERNING LAW] of the Credit Agreement are hereby incorporated,
mutatis mutandis
, by reference as if such sections were set forth in full herein.
|
11.
|
CONSENT TO JURISDICTION
. The provisions of Section 11.11.2 [SUBMISSION TO JURISDICTION] of the Credit Agreement are hereby incorporated,
mutatis mutandis
, by reference as if such sections were set forth in full herein.
|
12.
|
WAIVER OF JURY TRIAL
. The provisions of Section 11.11.5 [WAIVER OF JURY TRIAL] of the Credit Agreement are hereby incorporated,
mutatis mutandis
, by reference as if such sections were set forth in full herein.
|
13.
|
No Waiver
. No failure or delay of the Existing Syndication Agent, the Successor Syndication Agent, the Administrative Agent, the Collateral Agent or any Lender in exercising any power or right hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Existing Syndication Agent, the Successor Syndication Agent, the Administrative Agent, the Collateral Agent and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.
|
14.
|
Severability
. In the event any one or more of the provisions contained in this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
|
15.
|
Entire Agreement
. This Agreement, the Consents and the other Loan Documents constitute the entire contract between the parties relative to the subject matter hereof. Any other previous agreement among the parties with respect to the subject matter hereof is superseded by this Agreement and the other Loan Documents. Nothing in this Agreement or in the other Loan Documents, expressed or implied, is intended to confer upon any Person (other than the parties hereto and thereto, their respective successors and assigns permitted hereunder and, to the extent expressly contemplated hereby, the Related Parties of each of the Existing Syndication Agent, the Successor Syndication Agent, the Administrative Agent, the Collateral Agent and the Lenders) any rights, remedies, obligations or liabilities under or by reason of this Agreement or the other Loan Documents.
|
1.
|
I have reviewed this report on Form 10-Q of CONSOL Energy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 1, 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:
|
November 1, 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:
|
November 1, 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:
|
November 1, 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
|
|
25
|
|
—
|
|
—
|
|
—
|
|
—
|
|
35,787
|
|
—
|
|
No
|
|
No
|
|
21
|
|
4
|
|
7
|
Enlow Fork
|
|
36-07416
|
|
45
|
|
—
|
|
—
|
|
—
|
|
—
|
|
44,071
|
|
—
|
|
No
|
|
No
|
|
22
|
|
3
|
|
5
|
Harvey
|
|
36-10045
|
|
19
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19,338
|
|
—
|
|
No
|
|
No
|
|
9
|
|
2
|
|
2
|
Miller Creek Prep Plant #1
|
|
46-05890
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,445
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
Twin Branch Surface
|
|
46-09075
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,280
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alma No. 1 Deep
|
|
46-09277
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
1
|
|
1
|
|
—
|
Surface Mine No. 2
|
|
46-08377
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
No
|
|
No
|
|
—
|
|
—
|
|
—
|
|
|
|
|
89
|
|
—
|
|
—
|
|
—
|
|
—
|
|
101,921
|
|
—
|
|
|
|
|
|
53
|
|
10
|
|
14
|
Mine or Operating Name/MSHA Identification Number
|
|
Contests of Citations, Orders
(as of 9.30.16)
(a)
|
|
Contests of Proposed Penalties
(as of 9.30.16)
(b)
|
|
Complaints for Compensation
(as of 9.30.16)
(c)
|
|
Complaints of Discharge, Discrimination or Interference
(as of 9.30.16)
(d)
|
|
Applications for Temporary Relief
(as of 9.30.16)
(e)
|
|
Appeals of Judges' Decisions or Order
(as of 9.30.16)
(f)
|
||||
|
|
|
||||||||||||||
|
|
Dockets
|
|
Citations
|
|
|
|
|
||||||||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bailey
|
|
36-07230
|
|
—
|
|
21
|
|
143
|
|
—
|
|
—
|
|
—
|
|
—
|
Enlow Fork
|
|
36-07416
|
|
—
|
|
22
|
|
146
|
|
—
|
|
—
|
|
—
|
|
3
|
Harvey
|
|
36-10045
|
|
—
|
|
9
|
|
34
|
|
—
|
|
—
|
|
—
|
|
—
|
Miller Creek Prep Plant #1
|
|
46-05890
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Twin Branch Surface
|
|
46-09075
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inactive Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alma No. 1 Deep
|
|
46-09277
|
|
—
|
|
1
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
—
|
|
53
|
|
324
|
|
—
|
|
—
|
|
—
|
|
3
|