Delaware
|
|
001-14901
|
|
51-0337383
|
(State or other jurisdiction
of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer
Identification No.)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of exchange on which registered
|
Common Stock ($.01 par value)
|
|
CNX
|
|
New York Stock Exchange
|
Preferred Share Purchase Rights
|
|
--
|
|
New York Stock Exchange
|
|
|
|
|
i.
|
a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
|
ii.
|
a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
|
iii.
|
a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
|
•
|
The company reported net income attributable to CNX shareholders of $116 million, or earnings of $0.61 per diluted share, compared to net income attributable to CNX shareholders of $125 million, or earnings of $0.59 per diluted share, in the third quarter of 2018. During the third quarter of 2019 and 2018 there were unrealized gains on commodity derivative instruments of $157 million and $15 million, respectively.
|
•
|
The company reported total production costs of $1.99 per Mcfe, including $0.86 per Mcfe of Depreciation, Depletion, and Amortization (DD&A), compared to $1.97 per Mcfe, including $0.93 per Mcfe of DD&A, in the year-earlier quarter.
|
•
|
On a consolidated basis, the company reported net income of $144 million for the 2019 third quarter, compared to net income of $147 million in the third quarter of 2018.
|
•
|
Capital expenditures were $336 million, compared to $297 million spent in the year-earlier quarter.
|
•
|
The company had total weighted-average diluted shares of common stock outstanding of 188,430,959, compared to 212,708,082 shares in the third quarter of 2018.
|
•
|
Had sales volumes of 128 Bcfe, or an increase of 8% from the 119 Bcfe sold in the third quarter of 2018.
|
•
|
Had fully burdened cash margin of $0.82 per Mcfe, or a decrease of 36% from the $1.29 per Mcfe in the third quarter of 2018.
|
•
|
Turned-in-line 24 wells.
|
|
|
Quarter
|
|
Quarter
|
|
|
|
Quarter
|
|
Quarter
|
|
|
||||||||||
|
|
Ended
|
|
Ended
|
|
|
|
Ended
|
|
Ended
|
|
|
||||||||||
|
|
September 30, 2019
|
|
September 30, 2018
|
|
|
|
September 30, 2019
|
|
September 30, 2018
|
|
|
||||||||||
(Dollars in millions, except per share data)
|
|
Stand-alone
|
|
% Increase/(Decrease)
|
|
Consolidated
|
|
% Increase/(Decrease)
|
||||||||||||||
Adjusted Net (Loss) Income
|
|
$
|
(11
|
)
|
|
$
|
26
|
|
|
(142.3
|
)%
|
|
$
|
31
|
|
|
$
|
57
|
|
|
(45.6
|
)%
|
Total Shares Outstanding (in millions)2
|
|
186.6
|
|
|
203.6
|
|
|
(8.3
|
)%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Adjusted Net (Loss) Income per Outstanding Share2
|
|
$
|
(0.06
|
)
|
|
$
|
0.13
|
|
|
(146.2
|
)%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||
Adjusted EBITDAX
|
|
$
|
159
|
|
|
$
|
203
|
|
|
(21.7
|
)%
|
|
$
|
204
|
|
|
$
|
239
|
|
|
(14.6
|
)%
|
Adjusted EBITDAX per Outstanding Share2
|
|
$
|
0.85
|
|
|
$
|
1.00
|
|
|
(15.0
|
)%
|
|
$
|
1.09
|
|
|
$
|
1.17
|
|
|
(6.8
|
)%
|
Capital Expenditures3
|
|
$
|
272
|
|
|
$
|
255
|
|
|
6.7
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
|
Quarter
|
|
Quarter
|
||||
|
|
Ended
|
|
Ended
|
||||
(Per Mcfe)
|
|
September 30, 2019
|
|
September 30, 2018
|
||||
Average Sales Price - E&P
|
|
$
|
2.51
|
|
|
$
|
2.92
|
|
Total Production Cash Costs1
|
|
1.13
|
|
|
1.04
|
|
||
Operating Cash Margin
|
|
$
|
1.38
|
|
|
$
|
1.88
|
|
Operating Cash Margin (%)
|
|
55
|
%
|
|
64
|
%
|
||
|
|
|
|
|
||||
Total Fully Burdened Cash Costs2
|
|
$
|
1.69
|
|
|
$
|
1.63
|
|
Fully Burdened Cash Margin
|
|
$
|
0.82
|
|
|
$
|
1.29
|
|
Fully Burdened Cash Margin (%)
|
|
33
|
%
|
|
44
|
%
|
|
|
Quarter
|
|
Quarter
|
|
|
|
Quarter
|
|
|
|||||
|
|
Ended
|
|
Ended
|
|
|
|
Ended
|
|
|
|||||
|
|
September 30, 2019
|
|
September 30, 2018
|
|
% Increase/(Decrease)
|
|
June 30, 2019
|
|
% Increase/(Decrease)
|
|||||
GAS
|
|
|
|
|
|
|
|
|
|
|
|||||
Marcellus Sales Volumes (Bcf)
|
|
79.2
|
|
|
61.9
|
|
|
27.9
|
%
|
|
84.3
|
|
|
(6.0
|
)%
|
Utica Sales Volumes (Bcf)
|
|
26.8
|
|
|
31.9
|
|
|
(16.0
|
)%
|
|
28.1
|
|
|
(4.6
|
)%
|
CBM Sales Volumes (Bcf)
|
|
14.1
|
|
|
14.7
|
|
|
(4.1
|
)%
|
|
13.9
|
|
|
1.4
|
%
|
Other Sales Volumes (Bcf)
|
|
0.1
|
|
|
—
|
|
|
100.0
|
%
|
|
0.1
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIQUIDS1
|
|
|
|
|
|
|
|
|
|
|
|||||
NGLs Sales Volumes (Bcfe)
|
|
8.0
|
|
|
10.0
|
|
|
(20.0
|
)%
|
|
7.9
|
|
|
1.3
|
%
|
Oil Sales Volumes (Bcfe)
|
|
—
|
|
|
0.1
|
|
|
(100.0
|
)%
|
|
—
|
|
|
—
|
%
|
Condensate Sales Volumes (Bcfe)
|
|
0.1
|
|
|
0.4
|
|
|
(75.0
|
)%
|
|
0.2
|
|
|
(50.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|||||
TOTAL (Bcfe)
|
|
128.3
|
|
|
119.0
|
|
|
7.8
|
%
|
|
134.5
|
|
|
(4.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Daily Production (MMcfe)
|
|
1,394.6
|
|
|
1,293.0
|
|
|
|
|
1,477.6
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||
|
|
Ended
|
|
Ended
|
|
Ended
|
||||||
(Per Mcfe)
|
|
September 30, 2019
|
|
September 30, 2018
|
|
June 30, 2019
|
||||||
Average Sales Price - Gas
|
|
$
|
2.04
|
|
|
$
|
2.71
|
|
|
$
|
2.51
|
|
Average Gain on Commodity Derivative Instruments - Cash Settlement- Gas
|
|
$
|
0.47
|
|
|
$
|
0.03
|
|
|
$
|
0.08
|
|
Average Sales Price - Oil*
|
|
$
|
9.44
|
|
|
$
|
10.50
|
|
|
$
|
8.42
|
|
Average Sales Price - NGLs*
|
|
$
|
2.28
|
|
|
$
|
4.68
|
|
|
$
|
3.06
|
|
Average Sales Price - Condensate*
|
|
$
|
12.59
|
|
|
$
|
9.76
|
|
|
$
|
7.56
|
|
|
|
|
|
|
|
|
||||||
Average Sales Price - Total Company
|
|
$
|
2.51
|
|
|
$
|
2.92
|
|
|
$
|
2.63
|
|
|
|
|
|
|
|
|
||||||
Lease Operating Expense (LOE)
|
|
$
|
0.11
|
|
|
$
|
0.14
|
|
|
$
|
0.15
|
|
Production, Ad Valorem, and Other Fees
|
|
0.05
|
|
|
0.06
|
|
|
0.05
|
|
|||
Transportation, Gathering and Compression
|
|
0.97
|
|
|
0.84
|
|
|
0.98
|
|
|||
Depreciation, Depletion and Amortization (DD&A)
|
|
0.86
|
|
|
0.93
|
|
|
0.89
|
|
|||
Total Production Costs
|
|
$
|
1.99
|
|
|
$
|
1.97
|
|
|
$
|
2.07
|
|
|
|
|
|
|
|
|
||||||
Total Production Cash Costs, before DD&A
|
|
$
|
1.13
|
|
|
$
|
1.04
|
|
|
$
|
1.18
|
|
Cash Margin, before DD&A
|
|
$
|
1.38
|
|
|
$
|
1.88
|
|
|
$
|
1.45
|
|
|
|
2019
|
|
2020
|
|
Volumes Hedged (Bcf), as of 10/9/19
|
|
405.2*
|
|
489.6
|
|
|
|
Q4 2019
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
||||||||||||
NYMEX Only Hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Volumes (Bcf)
|
|
112.3
|
|
|
388.4
|
|
|
478.3
|
|
|
393.2
|
|
|
264.7
|
|
|
117.5
|
|
||||||
Average Prices ($/Mcf)
|
|
$
|
2.98
|
|
|
$
|
3.02
|
|
|
$
|
2.97
|
|
|
$
|
2.93
|
|
|
$
|
3.01
|
|
|
$
|
2.90
|
|
Physical Fixed Price Sales and Index Hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Volumes (Bcf)
|
|
3.4
|
|
|
16.8
|
|
|
11.3
|
|
|
21.0
|
|
|
13.4
|
|
|
27.1
|
|
||||||
Average Prices ($/Mcf)
|
|
$
|
2.54
|
|
|
$
|
2.63
|
|
|
$
|
2.45
|
|
|
$
|
2.50
|
|
|
$
|
2.60
|
|
|
$
|
2.14
|
|
Total Volumes Hedged (Bcf)1
|
|
115.7
|
|
|
405.2
|
|
|
489.6
|
|
|
414.2
|
|
|
278.1
|
|
|
144.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NYMEX + Basis (fully-covered volumes)2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Volumes (Bcf)
|
|
112.9
|
|
|
403.4
|
|
|
484.0
|
|
|
414.2
|
|
|
268.0
|
|
|
142.1
|
|
||||||
Average Prices ($/Mcf)
|
|
$
|
2.65
|
|
|
$
|
2.68
|
|
|
$
|
2.54
|
|
|
$
|
2.40
|
|
|
$
|
2.42
|
|
|
$
|
2.27
|
|
NYMEX Only Hedges Exposed to Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Volumes (Bcf)
|
|
2.8
|
|
|
1.8
|
|
|
5.6
|
|
|
—
|
|
|
10.1
|
|
|
2.5
|
|
||||||
Average Prices ($/Mcf)
|
|
$
|
2.98
|
|
|
$
|
3.02
|
|
|
$
|
2.97
|
|
|
$
|
—
|
|
|
$
|
3.01
|
|
|
$
|
2.90
|
|
Total Volumes Hedged (Bcf)1
|
|
115.7
|
|
|
405.2
|
|
|
489.6
|
|
|
414.2
|
|
|
278.1
|
|
|
144.6
|
|
Adjusted EBITDAX(1)
|
|
Previous
|
|
Updated
|
|
Previous
|
|
Updated
|
||||||||
|
|
2019E
|
|
2019E
|
|
2020E
|
|
2020E
|
||||||||
($ in millions, except per share data)
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Stand-Alone (Including Distributions)(2)
|
|
$740
|
-
|
$760
|
|
$745
|
-
|
$765
|
|
$770
|
-
|
$815
|
|
$710
|
-
|
$755
|
Stand-Alone (Including Distributions)(2) per Share
|
|
$3.95
|
-
|
$4.05
|
|
$3.99
|
-
|
$4.10
|
|
$4.11
|
-
|
$4.35
|
|
$3.81
|
-
|
$4.05
|
Consolidated
|
|
$885
|
-
|
$925
|
|
$910
|
-
|
$940
|
|
$945
|
-
|
$1,010
|
|
$885
|
-
|
$950
|
Capital Expenditures
|
|
Previous
|
|
Updated
|
|
Previous
|
|
Updated
|
||||||||
|
|
2019E
|
|
2019E
|
|
2020E
|
|
2020E
|
||||||||
($ in millions)
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Drilling & Completion (D&C)
|
|
$695
|
-
|
$745
|
|
$690
|
-
|
$715
|
|
$450
|
-
|
$520
|
|
$400
|
-
|
$450
|
Non-D&C
|
|
$200
|
-
|
$200
|
|
$200
|
-
|
$200
|
|
$90
|
-
|
$100
|
|
$90
|
-
|
$100
|
Total Stand-Alone Capital
|
|
$895
|
-
|
$945
|
|
$890
|
-
|
$915
|
|
$540
|
-
|
$620
|
|
$490
|
-
|
$550
|
CNX Midstream LP Capital
|
|
$310
|
-
|
$330
|
|
$310
|
-
|
$330
|
|
$80
|
-
|
$100
|
|
$80
|
-
|
$100
|
Total Consolidated Capital
|
|
$1,205
|
-
|
$1,275
|
|
$1,200
|
-
|
$1,245
|
|
$620
|
-
|
$720
|
|
$570
|
-
|
$650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (FCF)
|
|
—
|
|
—
|
|
$135
|
|
$146
|
|
Three Months Ended
|
||||||||||
|
September 30,
|
||||||||||
|
2019
|
|
2019
|
|
2019
|
||||||
Dollars in thousands
|
Stand-alone1
|
|
Midstream
|
|
Total Company
|
||||||
Net Income
|
$
|
102,219
|
|
|
$
|
41,741
|
|
|
$
|
143,960
|
|
Interest Expense
|
30,783
|
|
|
7,622
|
|
|
38,405
|
|
|||
Interest Income
|
(1,078
|
)
|
|
—
|
|
|
(1,078
|
)
|
|||
Income Tax Expense
|
48,902
|
|
|
—
|
|
|
48,902
|
|
|||
Earnings Before Interest & Taxes (EBIT)
|
$
|
180,826
|
|
|
$
|
49,363
|
|
|
$
|
230,189
|
|
Depreciation, Depletion & Amortization
|
111,839
|
|
|
8,620
|
|
|
120,459
|
|
|||
Exploration Expense
|
6,075
|
|
|
—
|
|
|
6,075
|
|
|||
Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX)
|
$
|
298,740
|
|
|
$
|
57,983
|
|
|
$
|
356,723
|
|
Adjustments:
|
|
|
|
|
|
||||||
Unrealized Gain on Commodity Derivative Instruments
|
$
|
(156,872
|
)
|
|
$
|
—
|
|
|
$
|
(156,872
|
)
|
Stock-Based Compensation
|
1,453
|
|
|
328
|
|
|
1,781
|
|
|||
Severance Expense
|
1,563
|
|
|
436
|
|
|
1,999
|
|
|||
Total Pre-tax Adjustments
|
$
|
(153,856
|
)
|
|
$
|
764
|
|
|
$
|
(153,092
|
)
|
Adjusted EBITDAX Consolidated
|
$
|
144,884
|
|
|
$
|
58,747
|
|
|
$
|
203,631
|
|
Midstream Distributions
|
14,388
|
|
|
N/A
|
|
|
N/A
|
|
|||
Stand-alone EBITDAX
|
$
|
159,272
|
|
|
N/A
|
|
|
N/A
|
|
|
Three Months Ended
|
||||||||||
|
September 30,
|
||||||||||
|
2018
|
|
2018
|
|
2018
|
||||||
Dollars in thousands
|
Stand-alone1
|
|
Midstream
|
|
Total Company
|
||||||
Net Income
|
$
|
115,583
|
|
|
$
|
31,173
|
|
|
$
|
146,756
|
|
Interest Expense
|
28,467
|
|
|
7,256
|
|
|
35,723
|
|
|||
Interest Income
|
(42
|
)
|
|
—
|
|
|
(42
|
)
|
|||
Income Tax Expense
|
56,678
|
|
|
—
|
|
|
56,678
|
|
|||
Earnings Before Interest & Taxes (EBIT)
|
$
|
200,686
|
|
|
$
|
38,429
|
|
|
$
|
239,115
|
|
Depreciation, Depletion & Amortization
|
111,844
|
|
|
7,741
|
|
|
119,585
|
|
|||
Exploration Expense
|
3,321
|
|
|
—
|
|
|
3,321
|
|
|||
Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX)
|
$
|
315,851
|
|
|
$
|
46,170
|
|
|
$
|
362,021
|
|
Adjustments:
|
|
|
|
|
|
||||||
Unrealized Gain on Commodity Derivative Instruments
|
$
|
(15,181
|
)
|
|
$
|
—
|
|
|
$
|
(15,181
|
)
|
Gain on Certain Asset Sales
|
(130,849
|
)
|
|
—
|
|
|
(130,849
|
)
|
|||
Severance Expense
|
513
|
|
|
—
|
|
|
513
|
|
|||
Litigation Settlements
|
2,000
|
|
|
—
|
|
|
2,000
|
|
|||
Loss on Debt Extinguishment
|
15,385
|
|
|
—
|
|
|
15,385
|
|
|||
Stock-Based Compensation
|
4,737
|
|
|
506
|
|
|
5,243
|
|
|||
Total Pre-tax Adjustments
|
$
|
(123,395
|
)
|
|
$
|
506
|
|
|
$
|
(122,889
|
)
|
Adjusted EBITDAX Consolidated
|
$
|
192,456
|
|
|
$
|
46,676
|
|
|
$
|
239,132
|
|
Midstream Distributions
|
10,078
|
|
|
N/A
|
|
|
N/A
|
|
|||
Stand-alone EBITDAX
|
$
|
202,534
|
|
|
N/A
|
|
|
N/A
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Dollars in thousands
|
Stand-alone1
|
|
Stand-alone1
|
|
Total Company
|
|
Total Company
|
||||||||
Net Income from EBITDAX Reconciliation
|
$
|
102,219
|
|
|
$
|
115,583
|
|
|
$
|
143,960
|
|
|
$
|
146,756
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Total Pre-tax Adjustments from EBITDAX Reconciliation
|
(153,856
|
)
|
|
(123,395
|
)
|
|
(153,092
|
)
|
|
(122,889
|
)
|
||||
Tax effect of Adjustments
|
40,464
|
|
|
33,465
|
|
|
40,263
|
|
|
33,328
|
|
||||
Adjusted Net (Loss) Income
|
$
|
(11,173
|
)
|
|
$
|
25,653
|
|
|
$
|
31,131
|
|
|
$
|
57,195
|
|
Net Debt
|
September 30, 2019
|
||||||||||
|
Stand-alone1
|
|
Midstream
|
|
Total Company
|
||||||
Total Long-Term Debt (GAAP)
|
$
|
2,000,309
|
|
|
$
|
639,925
|
|
|
$
|
2,640,234
|
|
Less Cash and Cash Equivalents
|
2,847
|
|
|
2,637
|
|
|
5,484
|
|
|||
Net Debt (Non-GAAP)
|
$
|
1,997,462
|
|
|
$
|
637,288
|
|
|
$
|
2,634,750
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
||||||||||||||||
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Dollars in thousands
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
||||||||||
Net Income (Loss)
|
$
|
129,415
|
|
|
$
|
(64,651
|
)
|
|
$
|
192,694
|
|
|
$
|
143,960
|
|
|
$
|
401,418
|
|
Interest Expense
|
33,222
|
|
|
35,771
|
|
|
40,152
|
|
|
38,405
|
|
|
147,550
|
|
|||||
Interest Income
|
1
|
|
|
(722
|
)
|
|
(71
|
)
|
|
(1,078
|
)
|
|
(1,870
|
)
|
|||||
Income Tax (Benefit) Expense
|
(23,713
|
)
|
|
(11,559
|
)
|
|
40,791
|
|
|
48,902
|
|
|
54,421
|
|
|||||
Earnings Before Interest & Taxes (EBIT)
|
$
|
138,925
|
|
|
$
|
(41,161
|
)
|
|
$
|
273,566
|
|
|
$
|
230,189
|
|
|
$
|
601,519
|
|
Depreciation, Depletion & Amortization
|
130,084
|
|
|
125,161
|
|
|
128,999
|
|
|
120,459
|
|
|
504,703
|
|
|||||
Exploration Expense
|
2,633
|
|
|
3,258
|
|
|
5,567
|
|
|
6,075
|
|
|
17,533
|
|
|||||
Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)
|
$
|
271,642
|
|
|
$
|
87,258
|
|
|
$
|
408,132
|
|
|
$
|
356,723
|
|
|
$
|
1,123,755
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized Loss (Gain) on Commodity Derivative Instruments
|
$
|
36,727
|
|
|
$
|
153,994
|
|
|
$
|
(210,909
|
)
|
|
$
|
(156,872
|
)
|
|
$
|
(177,060
|
)
|
Loss on Certain Asset Sales and Abandonments
|
96
|
|
|
3,564
|
|
|
—
|
|
|
—
|
|
|
3,660
|
|
|||||
Severance Expense
|
(55
|
)
|
|
—
|
|
|
1,182
|
|
|
1,999
|
|
|
3,126
|
|
|||||
Stock Based Compensation
|
5,478
|
|
|
10,903
|
|
|
23,873
|
|
|
1,781
|
|
|
42,035
|
|
|||||
(Gain) Loss on Debt Extinguishment
|
(315
|
)
|
|
7,537
|
|
|
77
|
|
|
—
|
|
|
7,299
|
|
|||||
Shaw Event
|
—
|
|
|
4,305
|
|
|
—
|
|
|
—
|
|
|
4,305
|
|
|||||
Total Pre-tax Adjustments
|
$
|
41,931
|
|
|
$
|
180,303
|
|
|
$
|
(185,777
|
)
|
|
$
|
(153,092
|
)
|
|
$
|
(116,635
|
)
|
Adjusted EBITDAX Consolidated TTM
|
$
|
313,573
|
|
|
$
|
267,561
|
|
|
$
|
222,355
|
|
|
$
|
203,631
|
|
|
$
|
1,007,120
|
|
|
Twelve Months Ended September 30, 2019
|
||||||||||
Dollars in thousands
|
Stand-alone1
|
|
Midstream
|
|
Total Company
|
||||||
Net Income
|
$
|
243,371
|
|
|
$
|
158,047
|
|
|
$
|
401,418
|
|
Interest Expense
|
118,153
|
|
|
29,397
|
|
|
147,550
|
|
|||
Interest Income
|
(1,870
|
)
|
|
—
|
|
|
(1,870
|
)
|
|||
Income Tax Expense
|
54,421
|
|
|
—
|
|
|
54,421
|
|
|||
Earnings Before Interest & Taxes (EBIT)
|
$
|
414,075
|
|
|
$
|
187,444
|
|
|
$
|
601,519
|
|
Depreciation, Depletion & Amortization
|
471,933
|
|
|
32,770
|
|
|
504,703
|
|
|||
Exploration Expense
|
17,533
|
|
|
—
|
|
|
17,533
|
|
|||
Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)
|
$
|
903,541
|
|
|
$
|
220,214
|
|
|
$
|
1,123,755
|
|
Adjustments:
|
|
|
|
|
|
||||||
Unrealized Gain on Commodity Derivative Instruments
|
$
|
(177,060
|
)
|
|
$
|
—
|
|
|
$
|
(177,060
|
)
|
(Gain) Loss on Certain Asset Sales and Abandonments
|
(3,569
|
)
|
|
7,229
|
|
|
3,660
|
|
|||
Severance Expense
|
2,690
|
|
|
436
|
|
|
3,126
|
|
|||
Stock Based Compensation
|
39,919
|
|
|
2,116
|
|
|
42,035
|
|
|||
Loss on Debt Extinguishment
|
7,299
|
|
|
—
|
|
|
7,299
|
|
|||
Shaw Event
|
4,305
|
|
|
—
|
|
|
4,305
|
|
|||
Total Pre-tax Adjustments
|
$
|
(126,416
|
)
|
|
$
|
9,781
|
|
|
$
|
(116,635
|
)
|
Adjusted EBITDAX Consolidated TTM
|
$
|
777,125
|
|
|
$
|
229,995
|
|
|
$
|
1,007,120
|
|
Midstream Distributions
|
50,869
|
|
|
N/A
|
|
|
N/A
|
|
|||
Stand-alone EBITDAX TTM
|
$
|
827,994
|
|
|
N/A
|
|
|
N/A
|
|
(Dollars in thousands, except per share data)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited)
|
September 30,
|
|
September 30,
|
||||||||||||
Revenues and Other Operating Income:
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Natural Gas, NGLs and Oil Revenue
|
$
|
265,051
|
|
|
$
|
344,712
|
|
|
$
|
1,043,862
|
|
|
$
|
1,084,851
|
|
Gain on Commodity Derivative Instruments
|
213,913
|
|
|
18,005
|
|
|
240,118
|
|
|
78,752
|
|
||||
Purchased Gas Revenue
|
29,192
|
|
|
10,560
|
|
|
64,181
|
|
|
38,546
|
|
||||
Midstream Revenue
|
18,525
|
|
|
19,946
|
|
|
55,863
|
|
|
69,684
|
|
||||
Other Operating Income
|
3,316
|
|
|
3,903
|
|
|
9,436
|
|
|
23,146
|
|
||||
Total Revenue and Other Operating Income
|
529,997
|
|
|
397,126
|
|
|
1,413,460
|
|
|
1,294,979
|
|
||||
Costs and Expenses:
|
|
|
|
|
|
|
|
||||||||
Operating Expense
|
|
|
|
|
|
|
|
||||||||
Lease Operating Expense
|
14,202
|
|
|
16,202
|
|
|
52,706
|
|
|
78,350
|
|
||||
Transportation, Gathering and Compression
|
80,193
|
|
|
68,907
|
|
|
244,217
|
|
|
230,935
|
|
||||
Production, Ad Valorem, and Other Fees
|
6,127
|
|
|
7,342
|
|
|
20,103
|
|
|
24,277
|
|
||||
Depreciation, Depletion and Amortization
|
120,459
|
|
|
119,585
|
|
|
374,619
|
|
|
363,338
|
|
||||
Exploration and Production Related Other Costs
|
6,075
|
|
|
3,321
|
|
|
14,900
|
|
|
9,401
|
|
||||
Purchased Gas Costs
|
27,490
|
|
|
10,602
|
|
|
62,476
|
|
|
37,404
|
|
||||
Impairment of Other Intangible Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
18,650
|
|
||||
Selling, General, and Administrative Costs
|
24,307
|
|
|
32,435
|
|
|
109,016
|
|
|
98,693
|
|
||||
Other Operating Expense
|
19,746
|
|
|
17,405
|
|
|
61,197
|
|
|
51,238
|
|
||||
Total Operating Expense
|
298,599
|
|
|
275,799
|
|
|
939,234
|
|
|
912,286
|
|
||||
Other Expense (Income)
|
|
|
|
|
|
|
|
||||||||
Other Expense (Income)
|
3,439
|
|
|
1,105
|
|
|
2,757
|
|
|
(4,812
|
)
|
||||
Gain on Asset Sales and Abandonments
|
(3,308
|
)
|
|
(134,320
|
)
|
|
(610
|
)
|
|
(148,942
|
)
|
||||
Gain on Previously Held Equity Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(623,663
|
)
|
||||
Loss on Debt Extinguishment
|
—
|
|
|
15,385
|
|
|
7,614
|
|
|
54,433
|
|
||||
Interest Expense
|
38,405
|
|
|
35,723
|
|
|
114,328
|
|
|
112,712
|
|
||||
Total Other Expense (Income)
|
38,536
|
|
|
(82,107
|
)
|
|
124,089
|
|
|
(610,272
|
)
|
||||
Total Costs and Expenses
|
337,135
|
|
|
193,692
|
|
|
1,063,323
|
|
|
302,014
|
|
||||
Earnings Before Income Tax
|
192,862
|
|
|
203,434
|
|
|
350,137
|
|
|
992,965
|
|
||||
Income Tax Expense
|
48,902
|
|
|
56,678
|
|
|
78,133
|
|
|
239,269
|
|
||||
Net Income
|
143,960
|
|
|
146,756
|
|
|
272,004
|
|
|
753,696
|
|
||||
Less: Net Income Attributable to Noncontrolling Interest
|
28,422
|
|
|
21,727
|
|
|
81,325
|
|
|
59,090
|
|
||||
Net Income Attributable to CNX Resources Shareholders
|
$
|
115,538
|
|
|
$
|
125,029
|
|
|
$
|
190,679
|
|
|
$
|
694,606
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.62
|
|
|
$
|
0.59
|
|
|
$
|
1.01
|
|
|
$
|
3.22
|
|
Diluted
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
$
|
1.01
|
|
|
$
|
3.18
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends Declared
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Dollars in thousands)
|
September 30,
|
|
September 30,
|
||||||||||||
(Unaudited)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
$
|
143,960
|
|
|
$
|
146,756
|
|
|
$
|
272,004
|
|
|
$
|
753,696
|
|
Other Comprehensive Income:
|
|
|
|
|
|
|
|
||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($15), ($13), ($44), ($794))
|
41
|
|
|
22
|
|
|
126
|
|
|
2,004
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income
|
144,001
|
|
|
146,778
|
|
|
272,130
|
|
|
755,700
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest
|
28,422
|
|
|
21,727
|
|
|
81,325
|
|
|
59,090
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income Attributable to CNX Resources Shareholders
|
$
|
115,579
|
|
|
$
|
125,051
|
|
|
$
|
190,805
|
|
|
$
|
696,610
|
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands)
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
5,484
|
|
|
$
|
17,198
|
|
Accounts and Notes Receivable:
|
|
|
|
||||
Trade
|
96,997
|
|
|
252,424
|
|
||
Other Receivables
|
11,462
|
|
|
11,077
|
|
||
Supplies Inventories
|
7,527
|
|
|
9,715
|
|
||
Recoverable Income Taxes
|
11,184
|
|
|
149,481
|
|
||
Prepaid Expenses
|
213,072
|
|
|
61,791
|
|
||
Total Current Assets
|
345,726
|
|
|
501,686
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Property, Plant and Equipment
|
10,512,298
|
|
|
9,567,428
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
2,981,723
|
|
|
2,624,984
|
|
||
Total Property, Plant and Equipment—Net
|
7,530,575
|
|
|
6,942,444
|
|
||
Other Assets:
|
|
|
|
||||
Operating Lease Right-of-Use Assets
|
205,647
|
|
|
—
|
|
||
Investment in Affiliates
|
17,110
|
|
|
18,663
|
|
||
Goodwill
|
796,359
|
|
|
796,359
|
|
||
Other Intangible Assets
|
98,285
|
|
|
103,200
|
|
||
Other
|
292,556
|
|
|
229,818
|
|
||
Total Other Assets
|
1,409,957
|
|
|
1,148,040
|
|
||
TOTAL ASSETS
|
$
|
9,286,258
|
|
|
$
|
8,592,170
|
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands, except per share data)
|
September 30,
2019 |
|
December 31,
2018 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
308,003
|
|
|
$
|
229,806
|
|
Current Portion of Finance Lease Obligations
|
7,203
|
|
|
6,997
|
|
||
Current Portion of Operating Lease Obligations
|
65,061
|
|
|
—
|
|
||
Other Accrued Liabilities
|
241,357
|
|
|
286,172
|
|
||
Total Current Liabilities
|
621,624
|
|
|
522,975
|
|
||
Non-Current Liabilities:
|
|
|
|
||||
Long-Term Debt
|
2,640,234
|
|
|
2,378,205
|
|
||
Finance Lease Obligations
|
9,400
|
|
|
13,299
|
|
||
Deferred Income Taxes
|
476,968
|
|
|
398,682
|
|
||
Operating Lease Obligations
|
122,514
|
|
|
—
|
|
||
Asset Retirement Obligations
|
33,123
|
|
|
37,479
|
|
||
Other
|
160,577
|
|
|
159,787
|
|
||
Total Non-Current Liabilities
|
3,442,816
|
|
|
2,987,452
|
|
||
TOTAL LIABILITIES
|
4,064,440
|
|
|
3,510,427
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 186,586,751 Issued and Outstanding at September 30, 2019; 198,663,342 Issued and Outstanding at December 31, 2018
|
1,870
|
|
|
1,990
|
|
||
Capital in Excess of Par Value
|
2,197,783
|
|
|
2,264,063
|
|
||
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding
|
—
|
|
|
—
|
|
||
Retained Earnings
|
2,243,104
|
|
|
2,071,809
|
|
||
Accumulated Other Comprehensive Loss
|
(7,778
|
)
|
|
(7,904
|
)
|
||
Total CNX Resources Stockholders’ Equity
|
4,434,979
|
|
|
4,329,958
|
|
||
Noncontrolling Interest
|
786,839
|
|
|
751,785
|
|
||
TOTAL STOCKHOLDERS' EQUITY
|
5,221,818
|
|
|
5,081,743
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
9,286,258
|
|
|
$
|
8,592,170
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Dollars in thousands)
|
September 30,
|
|
September 30,
|
||||||||||||
(Unaudited)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Total Stockholders’ Equity, Beginning Balance
|
$
|
5,099,995
|
|
|
$
|
5,038,923
|
|
|
$
|
5,081,743
|
|
|
$
|
3,899,899
|
|
|
|
|
|
|
|
|
|
||||||||
Common Stock and Capital in Excess of Par Value:
|
|
|
|
|
|
|
|
||||||||
Beginning Balance
|
2,205,848
|
|
|
2,374,788
|
|
|
2,266,053
|
|
|
2,452,564
|
|
||||
Issuance of Common Stock
|
49
|
|
|
126
|
|
|
211
|
|
|
1,689
|
|
||||
Purchase and Retirement of Common Stock
|
(7,697
|
)
|
|
(66,503
|
)
|
|
(101,687
|
)
|
|
(155,191
|
)
|
||||
Amortization of Stock-Based Compensation Awards
|
1,453
|
|
|
4,737
|
|
|
35,076
|
|
|
14,086
|
|
||||
Ending Balance
|
2,199,653
|
|
|
2,313,148
|
|
|
2,199,653
|
|
|
2,313,148
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Retained Earnings:
|
|
|
|
|
|
|
|
||||||||
Beginning Balance
|
2,127,627
|
|
|
1,940,507
|
|
|
2,071,809
|
|
|
1,455,811
|
|
||||
Net Income
|
115,538
|
|
|
125,029
|
|
|
190,679
|
|
|
694,606
|
|
||||
Purchase and Retirement of Common Stock
|
—
|
|
|
(61,512
|
)
|
|
(13,790
|
)
|
|
(141,543
|
)
|
||||
Shares Withheld for Taxes
|
(61
|
)
|
|
(136
|
)
|
|
(5,594
|
)
|
|
(4,986
|
)
|
||||
Ending Balance
|
2,243,104
|
|
|
2,003,888
|
|
|
2,243,104
|
|
|
2,003,888
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Accumulated Other Comprehensive Loss:
|
|
|
|
|
|
|
|
||||||||
Beginning Balance
|
(7,819
|
)
|
|
(6,494
|
)
|
|
(7,904
|
)
|
|
(8,476
|
)
|
||||
Other Comprehensive Income
|
41
|
|
|
22
|
|
|
126
|
|
|
2,004
|
|
||||
Ending Balance
|
(7,778
|
)
|
|
(6,472
|
)
|
|
(7,778
|
)
|
|
(6,472
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total CNX Resources Corporation Stockholders' Equity
|
4,434,979
|
|
|
4,310,564
|
|
|
4,434,979
|
|
|
4,310,564
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-Controlling Interest:
|
|
|
|
|
|
|
|
||||||||
Beginning Balance
|
774,339
|
|
|
730,122
|
|
|
751,785
|
|
|
—
|
|
||||
Net Income
|
28,422
|
|
|
21,727
|
|
|
81,325
|
|
|
59,090
|
|
||||
Shares Withheld for Taxes
|
—
|
|
|
(1
|
)
|
|
(690
|
)
|
|
(348
|
)
|
||||
Amortization of Stock-Based Compensation Awards
|
328
|
|
|
506
|
|
|
1,481
|
|
|
1,775
|
|
||||
Distributions to CNXM Noncontrolling Interest Holders
|
(16,250
|
)
|
|
(14,099
|
)
|
|
(47,062
|
)
|
|
(40,839
|
)
|
||||
Acquisition of CNX Gathering, LLC
|
—
|
|
|
—
|
|
|
—
|
|
|
718,577
|
|
||||
Ending Balance
|
786,839
|
|
|
738,255
|
|
|
786,839
|
|
|
738,255
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total Stockholders' Equity, Ending Balance
|
$
|
5,221,818
|
|
|
$
|
5,048,819
|
|
|
$
|
5,221,818
|
|
|
$
|
5,048,819
|
|
(Dollars in thousands)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited)
|
September 30,
|
|
September 30,
|
||||||||||||
Cash Flows from Operating Activities:
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
$
|
143,960
|
|
|
$
|
146,756
|
|
|
$
|
272,004
|
|
|
$
|
753,696
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
|
||||||||
Depreciation, Depletion and Amortization
|
120,459
|
|
|
119,585
|
|
|
374,619
|
|
|
363,338
|
|
||||
Amortization of Deferred Financing Costs
|
1,649
|
|
|
1,818
|
|
|
6,057
|
|
|
6,640
|
|
||||
Impairment of Other Intangible Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
18,650
|
|
||||
Stock-Based Compensation
|
1,781
|
|
|
5,243
|
|
|
36,557
|
|
|
15,861
|
|
||||
Gain on Asset Sales and Abandonments
|
(3,308
|
)
|
|
(134,320
|
)
|
|
(610
|
)
|
|
(148,942
|
)
|
||||
Gain on Previously Held Equity Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(623,663
|
)
|
||||
Loss on Debt Extinguishment
|
—
|
|
|
15,385
|
|
|
7,614
|
|
|
54,433
|
|
||||
Gain on Commodity Derivative Instruments
|
(213,913
|
)
|
|
(18,005
|
)
|
|
(240,118
|
)
|
|
(78,752
|
)
|
||||
Net Cash Received in Settlement of Commodity Derivative Instruments
|
57,041
|
|
|
2,825
|
|
|
26,331
|
|
|
2,518
|
|
||||
Deferred Income Taxes
|
48,902
|
|
|
68,922
|
|
|
78,133
|
|
|
259,116
|
|
||||
Equity in Earnings of Affiliates
|
(673
|
)
|
|
(1,241
|
)
|
|
(1,703
|
)
|
|
(4,688
|
)
|
||||
Return on Equity Investment
|
1,200
|
|
|
—
|
|
|
3,256
|
|
|
—
|
|
||||
Changes in Operating Assets:
|
|
|
|
|
|
|
|
||||||||
Accounts and Notes Receivable
|
28,724
|
|
|
5,969
|
|
|
154,715
|
|
|
50,125
|
|
||||
Recoverable Income Taxes
|
102,518
|
|
|
(12,244
|
)
|
|
138,406
|
|
|
(8,501
|
)
|
||||
Supplies Inventories
|
3,715
|
|
|
773
|
|
|
2,188
|
|
|
1,016
|
|
||||
Prepaid Expenses
|
1,438
|
|
|
(1,664
|
)
|
|
5,725
|
|
|
(337
|
)
|
||||
Changes in Operating Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts Payable
|
25,934
|
|
|
5,730
|
|
|
55,280
|
|
|
2,532
|
|
||||
Accrued Interest
|
(2,691
|
)
|
|
9,170
|
|
|
2,359
|
|
|
5,812
|
|
||||
Other Operating Liabilities
|
4,703
|
|
|
28,914
|
|
|
(31,689
|
)
|
|
30,418
|
|
||||
Changes in Other Liabilities
|
(16,134
|
)
|
|
(4,362
|
)
|
|
(23,041
|
)
|
|
(9,736
|
)
|
||||
Other
|
114
|
|
|
35
|
|
|
9
|
|
|
683
|
|
||||
Net Cash Provided by Operating Activities
|
305,419
|
|
|
239,289
|
|
|
866,092
|
|
|
690,219
|
|
||||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
||||||||
Capital Expenditures
|
(336,137
|
)
|
|
(297,465
|
)
|
|
(964,502
|
)
|
|
(794,124
|
)
|
||||
CNX Gathering LLC Acquisition, Net of Cash Acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(299,272
|
)
|
||||
Proceeds from Asset Sales
|
8,189
|
|
|
347,391
|
|
|
15,276
|
|
|
500,811
|
|
||||
Net Distributions from Equity Affiliates
|
—
|
|
|
4,100
|
|
|
—
|
|
|
7,750
|
|
||||
Net Cash (Used in) Provided by Investing Activities
|
(327,948
|
)
|
|
54,026
|
|
|
(949,226
|
)
|
|
(584,835
|
)
|
||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
||||||||
Payments on Miscellaneous Borrowings
|
(1,807
|
)
|
|
(1,708
|
)
|
|
(5,322
|
)
|
|
(5,455
|
)
|
||||
Payments on Long-Term Notes
|
—
|
|
|
(212,000
|
)
|
|
(405,876
|
)
|
|
(935,419
|
)
|
||||
Net Proceeds from (Payments on) CNXM Revolving Credit Facility
|
38,000
|
|
|
33,000
|
|
|
162,000
|
|
|
(105,500
|
)
|
||||
(Payments on) Proceeds from CNX Revolving Credit Facility
|
(16,800
|
)
|
|
17,000
|
|
|
1,200
|
|
|
439,000
|
|
||||
Proceeds from Issuance of CNX Senior Notes
|
—
|
|
|
—
|
|
|
500,000
|
|
|
—
|
|
||||
Proceeds from Issuance of CNXM Senior Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
394,000
|
|
||||
Distributions to CNXM Noncontrolling Interest Holders
|
(16,250
|
)
|
|
(14,099
|
)
|
|
(47,062
|
)
|
|
(40,839
|
)
|
||||
Proceeds from Issuance of Common Stock
|
49
|
|
|
127
|
|
|
210
|
|
|
1,689
|
|
||||
Shares Withheld for Taxes
|
(62
|
)
|
|
(138
|
)
|
|
(6,284
|
)
|
|
(5,335
|
)
|
||||
Purchases of Common Stock
|
(7,697
|
)
|
|
(127,645
|
)
|
|
(117,477
|
)
|
|
(294,365
|
)
|
||||
Debt Repurchase and Financing Fees
|
(31
|
)
|
|
(26
|
)
|
|
(9,969
|
)
|
|
(19,655
|
)
|
||||
Net Cash (Used in) Provided by Financing Activities
|
(4,598
|
)
|
|
(305,489
|
)
|
|
71,420
|
|
|
(571,879
|
)
|
||||
Net Decrease in Cash and Cash Equivalents
|
(27,127
|
)
|
|
(12,174
|
)
|
|
(11,714
|
)
|
|
(466,495
|
)
|
||||
Cash and Cash Equivalents at Beginning of Period
|
32,611
|
|
|
54,846
|
|
|
17,198
|
|
|
509,167
|
|
||||
Cash and Cash Equivalents at End of Period
|
$
|
5,484
|
|
|
$
|
42,672
|
|
|
$
|
5,484
|
|
|
$
|
42,672
|
|