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x
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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
|
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82-1954058
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value
|
CEIX
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New York Stock Exchange
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Page
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Part I. Financial Information
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Item 1.
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Financial Statements
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Consolidated Statements of Income for the three months ended March 31, 2019 and 2018
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Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018
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Consolidated Balance Sheets at March 31, 2019 and December 31, 2018
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Consolidated Statement of Stockholders' Equity for the three months ended March 31, 2019 and 2018
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Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018
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Notes to Unaudited Consolidated Financial Statements
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Item 2.
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Item 3.
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Item 4.
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Part II. Other Information
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Item 1.
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Item 1A.
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||
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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Item 4.
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Item 6.
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||
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•
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“CONSOL Energy,” “we,” “our,” “us,” “our Company” and “the Company” refer to CONSOL Energy Inc. and its subsidiaries;
|
•
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“Btu” means one British Thermal unit;
|
•
|
“Coal Business” refers to all of our interest in the Pennsylvania Mining Complex (PAMC) and certain related coal assets, including our former parent’s ownership interest in the Partnership, which owns a 25% undivided interest in PAMC, the CONSOL Marine Terminal and undeveloped coal reserves (Greenfield Reserves) located in the Northern Appalachian, Central Appalachian and Illinois basins and certain related coal assets and liabilities. “Coal Business” prior to November 28, 2017 refers to our former parent's interest in the Coal Business. References in this report to historical assets, liabilities, products, businesses or activities generally refer to the historical assets, liabilities, products, businesses or activities of the Coal Business as it was conducted as part of our former parent prior to the completion of the separation and distribution;
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•
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“CONSOL Marine Terminal” refers to the terminal operations located at the Port of Baltimore that were transferred from the Company's former parent to the Company as part of the separation;
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•
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“distribution” refers to the pro rata distribution on November 28, 2017 of the Company’s issued and outstanding shares of common stock to its former parent’s stockholders as of the close of business on the record date for the distribution;
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•
|
“former parent” or “CNX” refers to CNX Resources Corporation and its consolidated subsidiaries;
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•
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“General Partner” refers to CONSOL Coal Resources GP LLC, a Delaware limited liability company;
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•
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“Greenfield Reserves” means those undeveloped reserves owned by the Company in the Northern Appalachian, Central Appalachian and Illinois basins that are not associated with the Pennsylvania Mining Complex;
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•
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“mmBtu” means one million British Thermal units;
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•
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“Partnership” or “CCR” refers to a Delaware limited partnership that holds a 25% undivided interest in, and is the sole operator of, the Pennsylvania Mining Complex;
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•
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“Pennsylvania Mining Complex” or “PAMC” refers to the Bailey, Enlow Fork and Harvey coal mines, coal reserves and related assets and operations, located primarily in southwestern Pennsylvania and owned 75% by the Company and 25% by the Partnership;
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•
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“recoverable coal reserves” refer to the Company's proven and probable coal reserves as defined by Industry Guide 7 that could be economically and legally extracted or produced at the time of the reserve determination, taking into account mining recovery and preparation plant yield; and
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•
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“separation” refers to the separation of the Coal Business from our former parent’s other businesses on November 28, 2017 and the creation, as a result of the distribution, of an independent, publicly-traded company (the Company) to hold the assets and liabilities associated with the Coal Business after the distribution.
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Three Months Ended
March 31, |
||||||
Revenue and Other Income:
|
2019
|
|
2018
|
||||
Coal Revenue
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$
|
332,502
|
|
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$
|
351,009
|
|
Terminal Revenue
|
17,818
|
|
|
15,221
|
|
||
Freight Revenue
|
6,662
|
|
|
17,887
|
|
||
Miscellaneous Other Income
|
13,292
|
|
|
25,887
|
|
||
Gain on Sale of Assets
|
339
|
|
|
254
|
|
||
Total Revenue and Other Income
|
370,613
|
|
|
410,258
|
|
||
Costs and Expenses:
|
|
|
|
||||
Operating and Other Costs
|
230,112
|
|
|
229,802
|
|
||
Depreciation, Depletion and Amortization
|
50,724
|
|
|
49,471
|
|
||
Freight Expense
|
6,662
|
|
|
17,887
|
|
||
Selling, General and Administrative Costs
|
21,923
|
|
|
13,484
|
|
||
Loss on Debt Extinguishment
|
23,143
|
|
|
1,426
|
|
||
Interest Expense, net
|
18,596
|
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|
21,045
|
|
||
Total Costs and Expenses
|
351,160
|
|
|
333,115
|
|
||
Earnings Before Income Tax
|
19,453
|
|
|
77,143
|
|
||
Income Tax (Benefit) Expense
|
(850
|
)
|
|
6,185
|
|
||
Net Income
|
20,303
|
|
|
70,958
|
|
||
Less: Net Income Attributable to Noncontrolling Interest
|
5,868
|
|
|
8,550
|
|
||
Net Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
14,435
|
|
|
$
|
62,408
|
|
|
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|
|
||||
Earnings per Share:
|
|
|
|
||||
Total Basic Earnings per Share
|
$
|
0.52
|
|
|
$
|
2.23
|
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Total Dilutive Earnings per Share
|
$
|
0.52
|
|
|
$
|
2.20
|
|
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Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Net Income
|
$
|
20,303
|
|
|
$
|
70,958
|
|
|
|
|
|
||||
Other Comprehensive Income:
|
|
|
|
||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($781), ($1,281))
|
2,460
|
|
|
3,997
|
|
||
Other Comprehensive Income
|
2,460
|
|
|
3,997
|
|
||
|
|
|
|
||||
Comprehensive Income
|
$
|
22,763
|
|
|
$
|
74,955
|
|
|
|
|
|
||||
Less: Comprehensive Income Attributable to Noncontrolling Interest
|
5,867
|
|
|
8,548
|
|
||
|
|
|
|
||||
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
16,896
|
|
|
$
|
66,407
|
|
|
(Unaudited)
|
|
|
||||
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March 31,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
155,167
|
|
|
$
|
235,677
|
|
Restricted Cash
|
21,601
|
|
|
29,258
|
|
||
Accounts and Notes Receivable
|
|
|
|
||||
Trade
|
109,264
|
|
|
87,589
|
|
||
Other Receivables
|
36,564
|
|
|
41,355
|
|
||
Inventories
|
54,888
|
|
|
48,646
|
|
||
Prepaid Expenses and Other Assets
|
28,669
|
|
|
31,430
|
|
||
Total Current Assets
|
406,153
|
|
|
473,955
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Property, Plant and Equipment
|
4,878,730
|
|
|
4,838,171
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
2,778,448
|
|
|
2,731,643
|
|
||
Total Property, Plant and Equipment—Net
|
2,100,282
|
|
|
2,106,528
|
|
||
Other Assets:
|
|
|
|
||||
Deferred Income Taxes
|
77,614
|
|
|
77,545
|
|
||
Right of Use Asset - Operating Leases
|
87,026
|
|
|
—
|
|
||
Other
|
95,966
|
|
|
102,699
|
|
||
Total Other Assets
|
260,606
|
|
|
180,244
|
|
||
TOTAL ASSETS
|
$
|
2,767,041
|
|
|
$
|
2,760,727
|
|
|
(Unaudited)
|
|
|
||||
|
March 31,
2019 |
|
December 31,
2018 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
126,787
|
|
|
$
|
130,930
|
|
Current Portion of Long-Term Debt
|
35,254
|
|
|
134,812
|
|
||
Other Accrued Liabilities
|
255,279
|
|
|
226,434
|
|
||
Total Current Liabilities
|
417,320
|
|
|
492,176
|
|
||
Long-Term Debt:
|
|
|
|
||||
Long-Term Debt
|
715,181
|
|
|
708,536
|
|
||
Finance Lease Obligations
|
21,180
|
|
|
25,690
|
|
||
Total Long-Term Debt
|
736,361
|
|
|
734,226
|
|
||
Deferred Credits and Other Liabilities:
|
|
|
|
||||
Postretirement Benefits Other Than Pensions
|
437,221
|
|
|
441,246
|
|
||
Pneumoconiosis Benefits
|
165,317
|
|
|
165,001
|
|
||
Asset Retirement Obligations
|
237,596
|
|
|
235,984
|
|
||
Workers’ Compensation
|
59,999
|
|
|
59,742
|
|
||
Salary Retirement
|
60,989
|
|
|
64,172
|
|
||
Operating Lease Liability
|
70,600
|
|
|
—
|
|
||
Other
|
10,116
|
|
|
16,569
|
|
||
Total Deferred Credits and Other Liabilities
|
1,041,838
|
|
|
982,714
|
|
||
TOTAL LIABILITIES
|
2,195,519
|
|
|
2,209,116
|
|
||
|
|
|
|
||||
Stockholders' Equity:
|
|
|
|
||||
Common Stock, $0.01 Par Value; 62,500,000 Shares Authorized, 27,611,008 Issued and Outstanding at March 31, 2019; 27,437,844 Issued and Outstanding at December 31, 2018
|
276
|
|
|
274
|
|
||
Capital in Excess of Par Value
|
554,183
|
|
|
550,995
|
|
||
Retained Earnings
|
196,583
|
|
|
182,148
|
|
||
Accumulated Other Comprehensive Loss
|
(321,021
|
)
|
|
(323,482
|
)
|
||
Total CONSOL Energy Inc. Stockholders' Equity
|
430,021
|
|
|
409,935
|
|
||
Noncontrolling Interest
|
141,501
|
|
|
141,676
|
|
||
TOTAL EQUITY
|
571,522
|
|
|
551,611
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
2,767,041
|
|
|
$
|
2,760,727
|
|
|
|
Common Stock
|
|
Capital in Excess of Par Value
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Total CONSOL Energy Inc. Stockholders' Equity
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||
December 31, 2018
|
|
$
|
274
|
|
|
$
|
550,995
|
|
|
$
|
182,148
|
|
|
$
|
(323,482
|
)
|
|
$
|
409,935
|
|
|
$
|
141,676
|
|
|
$
|
551,611
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income
|
|
—
|
|
|
—
|
|
|
14,435
|
|
|
—
|
|
|
14,435
|
|
|
5,868
|
|
|
20,303
|
|
|||||||
Actuarially Determined Long-Term Liability Adjustments (Net of $781 Tax)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,461
|
|
|
2,461
|
|
|
(1
|
)
|
|
2,460
|
|
|||||||
Comprehensive Income
|
|
—
|
|
|
—
|
|
|
14,435
|
|
|
2,461
|
|
|
16,896
|
|
|
5,867
|
|
|
22,763
|
|
|||||||
Issuance of Common Stock
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Amortization of Stock-Based Compensation Awards
|
|
—
|
|
|
7,053
|
|
|
—
|
|
|
—
|
|
|
7,053
|
|
|
397
|
|
|
7,450
|
|
|||||||
Units/Shares Withheld for Taxes
|
|
—
|
|
|
(3,863
|
)
|
|
—
|
|
|
—
|
|
|
(3,863
|
)
|
|
(880
|
)
|
|
(4,743
|
)
|
|||||||
Distributions to Noncontrolling Interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,559
|
)
|
|
(5,559
|
)
|
|||||||
March 31, 2019
|
|
$
|
276
|
|
|
$
|
554,183
|
|
|
$
|
196,583
|
|
|
$
|
(321,021
|
)
|
|
$
|
430,021
|
|
|
$
|
141,501
|
|
|
$
|
571,522
|
|
|
|
Common Stock
|
|
Capital in Excess of Par Value
|
|
Retained Earnings (Deficit)
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Total CONSOL Energy Inc. Stockholders' Equity
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||
December 31, 2017
|
|
$
|
280
|
|
|
$
|
552,793
|
|
|
$
|
(43,713
|
)
|
|
$
|
(305,100
|
)
|
|
$
|
204,260
|
|
|
$
|
139,381
|
|
|
$
|
343,641
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income
|
|
—
|
|
|
—
|
|
|
62,408
|
|
|
—
|
|
|
62,408
|
|
|
8,550
|
|
|
70,958
|
|
|||||||
Actuarially Determined Long-Term Liability Adjustments (Net of $1,281 Tax)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,999
|
|
|
3,999
|
|
|
(2
|
)
|
|
3,997
|
|
|||||||
Comprehensive Income
|
|
—
|
|
|
—
|
|
|
62,408
|
|
|
3,999
|
|
|
66,407
|
|
|
8,548
|
|
|
74,955
|
|
|||||||
Reclassification of Stranded Tax Effect of Change in Tax Law
|
|
—
|
|
|
—
|
|
|
84,729
|
|
|
(84,729
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Separation Adjustments
|
|
—
|
|
|
(1,595
|
)
|
|
—
|
|
|
—
|
|
|
(1,595
|
)
|
|
—
|
|
|
(1,595
|
)
|
|||||||
Issuance of Common Stock
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Retirement of Common Stock (44,000 shares)
|
|
(1
|
)
|
|
(867
|
)
|
|
(417
|
)
|
|
—
|
|
|
(1,285
|
)
|
|
—
|
|
|
(1,285
|
)
|
|||||||
Amortization of Stock-Based Compensation Awards
|
|
—
|
|
|
1,488
|
|
|
—
|
|
|
—
|
|
|
1,488
|
|
|
359
|
|
|
1,847
|
|
|||||||
Units/Shares Withheld for Taxes
|
|
—
|
|
|
(1,889
|
)
|
|
—
|
|
|
—
|
|
|
(1,889
|
)
|
|
(899
|
)
|
|
(2,788
|
)
|
|||||||
Distributions to Noncontrolling Interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,587
|
)
|
|
(5,587
|
)
|
|||||||
March 31, 2018
|
|
$
|
280
|
|
|
$
|
549,929
|
|
|
$
|
103,007
|
|
|
$
|
(385,830
|
)
|
|
$
|
267,386
|
|
|
$
|
141,802
|
|
|
$
|
409,188
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net Income
|
$
|
20,303
|
|
|
$
|
70,958
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
|
|
|
||||
Depreciation, Depletion and Amortization
|
50,724
|
|
|
49,471
|
|
||
Gain on Sale of Assets
|
(339
|
)
|
|
(254
|
)
|
||
Stock/Unit-Based Compensation
|
7,450
|
|
|
1,847
|
|
||
Amortization of Debt Issuance Costs
|
1,976
|
|
|
2,390
|
|
||
Loss on Debt Extinguishment
|
23,143
|
|
|
1,426
|
|
||
Deferred Income Taxes
|
(850
|
)
|
|
7,527
|
|
||
Changes in Operating Assets:
|
|
|
|
||||
Accounts and Notes Receivable
|
(16,850
|
)
|
|
8,390
|
|
||
Inventories
|
(6,242
|
)
|
|
(7,346
|
)
|
||
Prepaid Expenses
|
2,761
|
|
|
(1,185
|
)
|
||
Changes in Other Assets
|
10,080
|
|
|
7,292
|
|
||
Changes in Operating Liabilities:
|
|
|
|
||||
Accounts Payable
|
(10,695
|
)
|
|
(11,267
|
)
|
||
Other Operating Liabilities
|
12,419
|
|
|
(6,213
|
)
|
||
Changes in Other Liabilities
|
(11,709
|
)
|
|
(7,376
|
)
|
||
Other
|
—
|
|
|
73
|
|
||
Net Cash Provided by Operating Activities
|
82,171
|
|
|
115,733
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital Expenditures
|
(34,171
|
)
|
|
(21,956
|
)
|
||
Proceeds from Sales of Assets
|
311
|
|
|
393
|
|
||
Net Cash Used in Investing Activities
|
(33,860
|
)
|
|
(21,563
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Payments on Finance Leases
|
(4,537
|
)
|
|
(1,366
|
)
|
||
Proceeds from (Payments on) Term Loan A
|
26,250
|
|
|
(15,000
|
)
|
||
Payments on Term Loan B
|
(122,375
|
)
|
|
(1,000
|
)
|
||
Buyback of Second Lien Notes
|
(7,000
|
)
|
|
(10,000
|
)
|
||
Repurchases of Common Stock
|
—
|
|
|
(1,285
|
)
|
||
Spin Distribution to CNX Resources
|
—
|
|
|
(18,234
|
)
|
||
Distributions to Noncontrolling Interest
|
(5,559
|
)
|
|
(5,587
|
)
|
||
Shares/Units Withheld for Taxes
|
(4,743
|
)
|
|
(2,788
|
)
|
||
Debt-Related Financing Fees
|
(18,514
|
)
|
|
(1,170
|
)
|
||
Net Cash Used in Financing Activities
|
(136,478
|
)
|
|
(56,430
|
)
|
||
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash
|
(88,167
|
)
|
|
37,740
|
|
||
Cash and Cash Equivalents and Restricted Cash at Beginning of Period
|
264,935
|
|
|
153,979
|
|
||
Cash and Cash Equivalents and Restricted Cash at End of Period
|
$
|
176,768
|
|
|
$
|
191,719
|
|
|
|
|
|
||||
Non-Cash Investing and Financing Activities:
|
|
|
|
||||
Finance Lease
|
$
|
—
|
|
|
$
|
22,631
|
|
|
For the Three Months Ended
|
||||
|
March 31,
|
||||
|
2019
|
|
2018
|
||
Anti-Dilutive Restricted Stock Units
|
—
|
|
|
—
|
|
Anti-Dilutive Performance Share Units
|
8,086
|
|
|
96,508
|
|
|
8,086
|
|
|
96,508
|
|
|
For the Three Months Ended
|
||||||
Dollars in thousands, except per share data
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Numerator:
|
|
|
|
||||
Net Income
|
$
|
20,303
|
|
|
$
|
70,958
|
|
Less: Net Income Attributable to Noncontrolling Interest
|
5,868
|
|
|
8,550
|
|
||
Net Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
14,435
|
|
|
$
|
62,408
|
|
|
|
|
|
||||
Denominator:
|
|
|
|
||||
Weighted-average shares of common stock outstanding
|
27,530,859
|
|
|
28,029,146
|
|
||
Effect of dilutive shares
|
308,534
|
|
|
295,724
|
|
||
Weighted-average diluted shares of common stock outstanding
|
27,839,393
|
|
|
28,324,870
|
|
||
|
|
|
|
||||
Earnings per Share:
|
|
|
|
||||
Basic
|
$
|
0.52
|
|
|
$
|
2.23
|
|
Dilutive
|
$
|
0.52
|
|
|
$
|
2.20
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||
|
|
March 31, 2019
|
|
March 31, 2018
|
||||
Coal Revenue
|
|
$
|
332,502
|
|
|
$
|
351,009
|
|
Terminal Revenue
|
|
17,818
|
|
|
15,221
|
|
||
Freight Revenue
|
|
6,662
|
|
|
17,887
|
|
||
Total Revenue from Contracts with Customers
|
|
$
|
356,982
|
|
|
$
|
384,117
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Royalty Income - Non-Operated Coal
|
$
|
6,210
|
|
|
$
|
9,806
|
|
Purchased Coal Sales
|
3,186
|
|
|
8,746
|
|
||
Property Easements and Option Income
|
979
|
|
|
4,151
|
|
||
Interest Income
|
887
|
|
|
601
|
|
||
Rental Income
|
617
|
|
|
1,122
|
|
||
Other
|
1,413
|
|
|
1,461
|
|
||
Miscellaneous Other Income
|
$
|
13,292
|
|
|
$
|
25,887
|
|
|
Pension Benefits
|
|
Other Post-Employment Benefits
|
||||||||||||
|
Three Months Ended
March 31, |
|
Three Months Ended
March 31, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service Cost
|
$
|
987
|
|
|
$
|
288
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest Cost
|
6,275
|
|
|
5,876
|
|
|
4,580
|
|
|
4,677
|
|
||||
Expected Return on Plan Assets
|
(10,114
|
)
|
|
(10,092
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of Prior Service Credits
|
(92
|
)
|
|
(126
|
)
|
|
(601
|
)
|
|
(601
|
)
|
||||
Amortization of Actuarial Loss
|
1,490
|
|
|
2,179
|
|
|
2,315
|
|
|
4,051
|
|
||||
Net Periodic Benefit (Credit) Cost
|
$
|
(1,454
|
)
|
|
$
|
(1,875
|
)
|
|
$
|
6,294
|
|
|
$
|
8,127
|
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||
|
Three Months Ended
March 31, |
|
Three Months Ended
March 31, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service Cost
|
$
|
948
|
|
|
$
|
1,662
|
|
|
$
|
1,421
|
|
|
$
|
1,558
|
|
Interest Cost
|
1,750
|
|
|
1,311
|
|
|
646
|
|
|
571
|
|
||||
Amortization of Actuarial Loss (Gain)
|
254
|
|
|
(213
|
)
|
|
(193
|
)
|
|
(20
|
)
|
||||
State Administrative Fees and Insurance Bond Premiums
|
—
|
|
|
—
|
|
|
587
|
|
|
593
|
|
||||
Net Periodic Benefit Cost
|
$
|
2,952
|
|
|
$
|
2,760
|
|
|
$
|
2,461
|
|
|
$
|
2,702
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Coal
|
$
|
8,853
|
|
|
$
|
4,642
|
|
Supplies
|
46,035
|
|
|
44,004
|
|
||
Total Inventories
|
$
|
54,888
|
|
|
$
|
48,646
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Plant and Equipment
|
$
|
2,922,041
|
|
|
$
|
2,890,970
|
|
Coal Properties and Surface Lands
|
858,153
|
|
|
858,153
|
|
||
Airshafts
|
428,387
|
|
|
419,100
|
|
||
Mine Development
|
342,489
|
|
|
342,405
|
|
||
Advance Mining Royalties
|
327,660
|
|
|
327,543
|
|
||
Total Property, Plant and Equipment
|
4,878,730
|
|
|
4,838,171
|
|
||
Less: Accumulated Depreciation, Depletion and Amortization
|
2,778,448
|
|
|
2,731,643
|
|
||
Total Property, Plant and Equipment, Net
|
$
|
2,100,282
|
|
|
$
|
2,106,528
|
|
Fixed operating lease expense
|
$
|
6,857
|
|
Variable operating lease expense
|
3,052
|
|
|
Total operating lease expense
|
$
|
9,909
|
|
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
3,881
|
|
ROU assets obtained in exchange for operating lease obligations
|
—
|
|
Lease Assets and Liabilities
|
Classification
|
|
||
Assets:
|
|
|
||
Operating Lease ROU Assets
|
Other Assets
|
$
|
87,026
|
|
|
|
|
||
Liabilities:
|
|
|
||
Current:
|
|
|
||
Operating Lease Liabilities
|
Other Accrued Liabilities
|
$
|
19,600
|
|
Long-Term:
|
|
|
||
Operating Lease Liabilities
|
Operating Lease Liabilities
|
$
|
70,600
|
|
Total Operating Lease Liabilities
|
|
$
|
90,200
|
|
|
|
|
||
Weighted average remaining lease term (in years)
|
|
5.42
|
|
|
Weighted average discount rate
|
|
6.75
|
%
|
Remainder of 2019
|
2020
|
2021
|
2022
|
2033
|
Thereafter
|
Total
|
||||||||||||||||||||
$
|
1,237
|
|
|
$
|
627
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,864
|
|
Amortization of right of use assets
|
$
|
3,914
|
|
Interest expense
|
555
|
|
|
Total finance lease expense
|
$
|
4,469
|
|
Weighted average remaining lease term (in years)
|
|
2.06
|
|
Weighted average discount rate
|
|
5.38
|
%
|
Remainder of 2019
|
2020
|
2021
|
2022
|
2033
|
Thereafter
|
Total
|
||||||||||||||||||||
$
|
2,774
|
|
|
$
|
3,699
|
|
|
$
|
2,157
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,630
|
|
|
|
Finance
|
|
Operating
|
||||
|
|
Leases
|
|
Leases
|
||||
Remainder of 2019
|
|
$
|
13,566
|
|
|
$
|
19,751
|
|
2020
|
|
20,209
|
|
|
23,921
|
|
||
2021
|
|
6,541
|
|
|
23,134
|
|
||
2022
|
|
129
|
|
|
13,341
|
|
||
2023
|
|
108
|
|
|
6,504
|
|
||
Thereafter
|
|
5
|
|
|
22,113
|
|
||
Total minimum lease payments
|
|
40,558
|
|
|
108,764
|
|
||
Less amount representing interest
|
|
2,260
|
|
|
18,564
|
|
||
Present value of minimum lease payments
|
|
$
|
38,298
|
|
|
$
|
90,200
|
|
|
March 31,
2019 |
|
December 31, 2018
|
||||
Subsidence Liability
|
$
|
89,055
|
|
|
$
|
83,532
|
|
Accrued Payroll and Benefits
|
15,985
|
|
|
12,978
|
|
||
Accrued Interest
|
12,705
|
|
|
6,850
|
|
||
Litigation
|
9,673
|
|
|
8,235
|
|
||
Accrued Other Taxes
|
4,782
|
|
|
5,050
|
|
||
Short-Term Incentive Compensation
|
2,608
|
|
|
6,024
|
|
||
Other
|
13,648
|
|
|
15,588
|
|
||
Current Portion of Long-Term Liabilities:
|
|
|
|
||||
Postretirement Benefits Other than Pensions
|
32,351
|
|
|
32,345
|
|
||
Asset Retirement Obligations
|
31,017
|
|
|
31,017
|
|
||
Operating Lease Liability
|
19,600
|
|
|
—
|
|
||
Workers' Compensation
|
12,135
|
|
|
12,628
|
|
||
Pneumoconiosis Benefits
|
11,720
|
|
|
12,187
|
|
||
Total Other Accrued Liabilities
|
$
|
255,279
|
|
|
$
|
226,434
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Debt:
|
|
|
|
||||
Term Loan B due in September 2024 (Principal of $275,000 and $396,000 less Unamortized Discount of $1,375 and $6,253, 7.00% and 8.53% Weighted Average Interest Rate, respectively)
|
$
|
273,625
|
|
|
$
|
389,747
|
|
11.00% Senior Secured Second Lien Notes due 2025
|
267,276
|
|
|
274,276
|
|
||
MEDCO Revenue Bonds in Series due September 2025 at 5.75%
|
102,865
|
|
|
102,865
|
|
||
Term Loan A due in March 2023 (6.25% and 6.78% Weighted Average Interest Rate, respectively)
|
100,000
|
|
|
73,750
|
|
||
Advance Royalty Commitments (8.57% Weighted Average Interest Rate)
|
2,261
|
|
|
2,261
|
|
||
Less: Unamortized Debt Issuance Costs
|
12,710
|
|
|
16,409
|
|
||
|
733,317
|
|
|
826,490
|
|
||
Less: Amounts Due in One Year*
|
18,136
|
|
|
117,954
|
|
||
Long-Term Debt
|
$
|
715,181
|
|
|
$
|
708,536
|
|
|
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
|
$
|
68,583
|
|
|
$
|
51,731
|
|
|
$
|
16,852
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Environmental
|
398
|
|
|
398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
29,498
|
|
|
29,498
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Letters of Credit
|
98,479
|
|
|
81,627
|
|
|
16,852
|
|
|
—
|
|
|
—
|
|
|||||
Surety Bonds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
104,033
|
|
|
72,351
|
|
|
31,682
|
|
|
—
|
|
|
—
|
|
|||||
Environmental
|
538,698
|
|
|
502,039
|
|
|
36,659
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
3,725
|
|
|
3,434
|
|
|
291
|
|
|
—
|
|
|
—
|
|
|||||
Total Surety Bonds
|
646,456
|
|
|
577,824
|
|
|
68,632
|
|
|
—
|
|
|
—
|
|
|||||
Guarantees:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
22,241
|
|
|
8,106
|
|
|
13,206
|
|
|
398
|
|
|
531
|
|
|||||
Total Guarantees
|
22,241
|
|
|
8,106
|
|
|
13,206
|
|
|
398
|
|
|
531
|
|
|||||
Total Commitments
|
$
|
767,176
|
|
|
$
|
667,557
|
|
|
$
|
98,690
|
|
|
$
|
398
|
|
|
$
|
531
|
|
|
Fair Value Measurements at
March 31, 2019 |
|
Fair Value Measurements at
December 31, 2018 |
||||||||||||||||||||
Description
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Lease Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(678
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(734
|
)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Long-Term Debt
|
$
|
746,027
|
|
|
$
|
789,965
|
|
|
$
|
842,899
|
|
|
$
|
881,711
|
|
|
PAMC
|
|
Other
|
|
Adjustments and Eliminations
|
|
Consolidated
|
|
|
||||||||
Coal Revenue
|
$
|
332,502
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
332,502
|
|
|
(A)
|
Terminal Revenue
|
—
|
|
|
17,818
|
|
|
—
|
|
|
17,818
|
|
|
|
||||
Freight Revenue
|
6,662
|
|
|
—
|
|
|
—
|
|
|
6,662
|
|
|
|
||||
Total Revenue and Freight
|
$
|
339,164
|
|
|
$
|
17,818
|
|
|
$
|
—
|
|
|
$
|
356,982
|
|
|
|
Earnings (Loss) Before Income Tax
|
$
|
64,698
|
|
|
$
|
(45,245
|
)
|
|
$
|
—
|
|
|
$
|
19,453
|
|
|
|
Segment Assets
|
$
|
1,992,549
|
|
|
$
|
774,492
|
|
|
$
|
—
|
|
|
$
|
2,767,041
|
|
|
|
Depreciation, Depletion and Amortization
|
$
|
44,868
|
|
|
$
|
5,856
|
|
|
$
|
—
|
|
|
$
|
50,724
|
|
|
|
Capital Expenditures
|
$
|
32,372
|
|
|
$
|
1,799
|
|
|
$
|
—
|
|
|
$
|
34,171
|
|
|
|
|
PAMC
|
|
Other
|
|
Adjustments and Eliminations
|
|
Consolidated
|
|
|
||||||||
Coal Revenue
|
$
|
351,009
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
351,009
|
|
|
(A)
|
Terminal Revenue
|
—
|
|
|
15,221
|
|
|
—
|
|
|
15,221
|
|
|
|
||||
Freight Revenue
|
17,887
|
|
|
—
|
|
|
—
|
|
|
17,887
|
|
|
|
||||
Total Revenue and Freight
|
$
|
368,896
|
|
|
$
|
15,221
|
|
|
$
|
—
|
|
|
$
|
384,117
|
|
|
|
Earnings (Loss) Before Income Tax
|
$
|
98,480
|
|
|
$
|
(21,337
|
)
|
|
$
|
—
|
|
|
$
|
77,143
|
|
|
|
Segment Assets
|
$
|
1,965,979
|
|
|
$
|
763,137
|
|
|
$
|
—
|
|
|
$
|
2,729,116
|
|
|
|
Depreciation, Depletion and Amortization
|
$
|
43,257
|
|
|
$
|
6,214
|
|
|
$
|
—
|
|
|
$
|
49,471
|
|
|
|
Capital Expenditures
|
$
|
19,714
|
|
|
$
|
2,242
|
|
|
$
|
—
|
|
|
$
|
21,956
|
|
|
|
(A)
|
For the
three
months ended
March 31, 2019
and
2018
, the PAMC segment had revenues from the following customers, each comprising over 10% of the Company’s total sales:
|
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Segment assets for total reportable business segments
|
$
|
1,992,549
|
|
|
$
|
1,965,979
|
|
Segment assets for all other business segments
|
510,583
|
|
|
504,822
|
|
||
Items excluded from segment assets:
|
|
|
|
||||
Cash, restricted cash and other investments
|
186,295
|
|
|
190,777
|
|
||
Deferred tax assets
|
77,614
|
|
|
67,538
|
|
||
Total Consolidated Assets
|
$
|
2,767,041
|
|
|
$
|
2,729,116
|
|
|
Parent
Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Revenue and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coal Revenue
|
$
|
—
|
|
|
$
|
249,376
|
|
|
$
|
83,126
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
332,502
|
|
Terminal Revenue
|
—
|
|
|
17,818
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,818
|
|
||||||
Freight Revenue
|
—
|
|
|
4,997
|
|
|
1,665
|
|
|
—
|
|
|
—
|
|
|
6,662
|
|
||||||
Miscellaneous Other Income
|
53,792
|
|
|
2,532
|
|
|
1,311
|
|
|
—
|
|
|
(44,343
|
)
|
|
13,292
|
|
||||||
Gain on Sale of Assets
|
—
|
|
|
334
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
339
|
|
||||||
Total Revenue and Other Income
|
53,792
|
|
|
275,057
|
|
|
86,107
|
|
|
—
|
|
|
(44,343
|
)
|
|
370,613
|
|
||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and Other Costs
|
—
|
|
|
177,603
|
|
|
52,094
|
|
|
415
|
|
|
—
|
|
|
230,112
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
39,507
|
|
|
11,217
|
|
|
—
|
|
|
—
|
|
|
50,724
|
|
||||||
Freight Expense
|
—
|
|
|
4,997
|
|
|
1,665
|
|
|
—
|
|
|
—
|
|
|
6,662
|
|
||||||
Selling, General and Administrative Costs
|
—
|
|
|
17,363
|
|
|
4,560
|
|
|
—
|
|
|
—
|
|
|
21,923
|
|
||||||
Loss on Debt Extinguishment
|
23,143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,143
|
|
||||||
Interest Expense, net
|
17,064
|
|
|
181
|
|
|
1,351
|
|
|
—
|
|
|
—
|
|
|
18,596
|
|
||||||
Total Costs And Expenses
|
40,207
|
|
|
239,651
|
|
|
70,887
|
|
|
415
|
|
|
—
|
|
|
351,160
|
|
||||||
Earnings (Loss) Before Income Tax
|
13,585
|
|
|
35,406
|
|
|
15,220
|
|
|
(415
|
)
|
|
(44,343
|
)
|
|
19,453
|
|
||||||
Income Tax Benefit
|
(850
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(850
|
)
|
||||||
Net Income (Loss)
|
14,435
|
|
|
35,406
|
|
|
15,220
|
|
|
(415
|
)
|
|
(44,343
|
)
|
|
20,303
|
|
||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,868
|
|
|
5,868
|
|
||||||
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
14,435
|
|
|
$
|
35,406
|
|
|
$
|
15,220
|
|
|
$
|
(415
|
)
|
|
$
|
(50,211
|
)
|
|
$
|
14,435
|
|
|
Parent
Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
154,696
|
|
|
$
|
66
|
|
|
$
|
405
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
155,167
|
|
Restricted Cash
|
14,695
|
|
|
—
|
|
|
—
|
|
|
6,906
|
|
|
—
|
|
|
21,601
|
|
||||||
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
—
|
|
|
—
|
|
|
109,264
|
|
|
—
|
|
|
109,264
|
|
||||||
Other Receivables
|
19,833
|
|
|
14,167
|
|
|
2,564
|
|
|
—
|
|
|
—
|
|
|
36,564
|
|
||||||
Inventories
|
—
|
|
|
42,243
|
|
|
12,645
|
|
|
—
|
|
|
—
|
|
|
54,888
|
|
||||||
Prepaid Expenses and Other Assets
|
10,322
|
|
|
13,727
|
|
|
4,620
|
|
|
—
|
|
|
—
|
|
|
28,669
|
|
||||||
Total Current Assets
|
199,546
|
|
|
70,203
|
|
|
20,234
|
|
|
116,170
|
|
|
—
|
|
|
406,153
|
|
||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, Plant and Equipment
|
—
|
|
|
3,922,846
|
|
|
955,884
|
|
|
—
|
|
|
—
|
|
|
4,878,730
|
|
||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
—
|
|
|
2,240,721
|
|
|
537,727
|
|
|
—
|
|
|
—
|
|
|
2,778,448
|
|
||||||
Total Property, Plant and Equipment-Net
|
—
|
|
|
1,682,125
|
|
|
418,157
|
|
|
—
|
|
|
—
|
|
|
2,100,282
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Income Taxes
|
77,614
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,614
|
|
||||||
Affiliated Credit Facility
|
134,532
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(134,532
|
)
|
|
—
|
|
||||||
Investment in Affiliates
|
785,307
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(785,307
|
)
|
|
—
|
|
||||||
Right of Use Asset - Operating Leases
|
—
|
|
|
67,836
|
|
|
19,190
|
|
|
—
|
|
|
—
|
|
|
87,026
|
|
||||||
Other
|
37,024
|
|
|
44,752
|
|
|
14,190
|
|
|
—
|
|
|
—
|
|
|
95,966
|
|
||||||
Total Other Assets
|
1,034,477
|
|
|
112,588
|
|
|
33,380
|
|
|
—
|
|
|
(919,839
|
)
|
|
260,606
|
|
||||||
Total Assets
|
$
|
1,234,023
|
|
|
$
|
1,864,916
|
|
|
$
|
471,771
|
|
|
$
|
116,170
|
|
|
$
|
(919,839
|
)
|
|
$
|
2,767,041
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
$
|
65,877
|
|
|
$
|
22,530
|
|
|
$
|
26,535
|
|
|
$
|
10,050
|
|
|
$
|
1,795
|
|
|
$
|
126,787
|
|
Accounts Payable (Recoverable)-Related Parties
|
(22,330
|
)
|
|
16,328
|
|
|
6,002
|
|
|
109,264
|
|
|
(109,264
|
)
|
|
—
|
|
||||||
Current Portion of Long-Term Debt
|
20,644
|
|
|
11,060
|
|
|
3,550
|
|
|
—
|
|
|
—
|
|
|
35,254
|
|
||||||
Other Accrued Liabilities
|
94,958
|
|
|
123,390
|
|
|
38,726
|
|
|
—
|
|
|
(1,795
|
)
|
|
255,279
|
|
||||||
Total Current Liabilities
|
159,149
|
|
|
173,308
|
|
|
74,813
|
|
|
119,314
|
|
|
(109,264
|
)
|
|
417,320
|
|
||||||
Long-Term Debt:
|
583,864
|
|
|
148,404
|
|
|
138,625
|
|
|
—
|
|
|
(134,532
|
)
|
|
736,361
|
|
||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
437,221
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
437,221
|
|
||||||
Pneumoconiosis Benefits
|
—
|
|
|
160,840
|
|
|
4,477
|
|
|
—
|
|
|
—
|
|
|
165,317
|
|
||||||
Asset Retirement Obligations
|
—
|
|
|
227,623
|
|
|
9,973
|
|
|
—
|
|
|
—
|
|
|
237,596
|
|
||||||
Workers’ Compensation
|
—
|
|
|
56,905
|
|
|
3,094
|
|
|
—
|
|
|
—
|
|
|
59,999
|
|
||||||
Salary Retirement
|
60,989
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,989
|
|
||||||
Operating Lease Liability
|
—
|
|
|
55,409
|
|
|
15,191
|
|
|
—
|
|
|
—
|
|
|
70,600
|
|
||||||
Other
|
—
|
|
|
9,587
|
|
|
529
|
|
|
—
|
|
|
—
|
|
|
10,116
|
|
||||||
Total Deferred Credits and Other Liabilities
|
60,989
|
|
|
947,585
|
|
|
33,264
|
|
|
—
|
|
|
—
|
|
|
1,041,838
|
|
||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
430,021
|
|
|
595,619
|
|
|
225,069
|
|
|
(3,144
|
)
|
|
(817,544
|
)
|
|
430,021
|
|
||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141,501
|
|
|
141,501
|
|
||||||
Total Liabilities and Equity
|
$
|
1,234,023
|
|
|
$
|
1,864,916
|
|
|
$
|
471,771
|
|
|
$
|
116,170
|
|
|
$
|
(919,839
|
)
|
|
$
|
2,767,041
|
|
|
Parent
Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Revenue and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Coal Revenue
|
$
|
—
|
|
|
$
|
263,257
|
|
|
$
|
87,752
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
351,009
|
|
Terminal Revenue
|
—
|
|
|
15,221
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,221
|
|
||||||
Freight Revenue
|
—
|
|
|
13,415
|
|
|
4,472
|
|
|
—
|
|
|
—
|
|
|
17,887
|
|
||||||
Miscellaneous Other Income
|
90,304
|
|
|
11,018
|
|
|
2,201
|
|
|
—
|
|
|
(77,636
|
)
|
|
25,887
|
|
||||||
Gain on Sale of Assets
|
—
|
|
|
178
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
254
|
|
||||||
Total Revenue and Other Income
|
90,304
|
|
|
303,089
|
|
|
94,501
|
|
|
—
|
|
|
(77,636
|
)
|
|
410,258
|
|
||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and Other Costs
|
—
|
|
|
176,820
|
|
|
52,287
|
|
|
695
|
|
|
—
|
|
|
229,802
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
38,657
|
|
|
10,814
|
|
|
—
|
|
|
—
|
|
|
49,471
|
|
||||||
Freight Expense
|
—
|
|
|
13,415
|
|
|
4,472
|
|
|
—
|
|
|
—
|
|
|
17,887
|
|
||||||
Selling, General and Administrative Costs
|
—
|
|
|
10,464
|
|
|
3,020
|
|
|
—
|
|
|
—
|
|
|
13,484
|
|
||||||
Loss on Debt Extinguishment
|
1,426
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,426
|
|
||||||
Interest Expense, net
|
20,285
|
|
|
944
|
|
|
(184
|
)
|
|
—
|
|
|
—
|
|
|
21,045
|
|
||||||
Total Costs And Expenses
|
21,711
|
|
|
240,300
|
|
|
70,409
|
|
|
695
|
|
|
—
|
|
|
333,115
|
|
||||||
Earnings (Loss) Before Income Tax
|
68,593
|
|
|
62,789
|
|
|
24,092
|
|
|
(695
|
)
|
|
(77,636
|
)
|
|
77,143
|
|
||||||
Income Tax Expense
|
6,185
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,185
|
|
||||||
Net Income (Loss)
|
62,408
|
|
|
62,789
|
|
|
24,092
|
|
|
(695
|
)
|
|
(77,636
|
)
|
|
70,958
|
|
||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,550
|
|
|
8,550
|
|
||||||
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
62,408
|
|
|
$
|
62,789
|
|
|
$
|
24,092
|
|
|
$
|
(695
|
)
|
|
$
|
(86,186
|
)
|
|
$
|
62,408
|
|
|
Parent
Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
234,536
|
|
|
$
|
138
|
|
|
$
|
1,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
235,677
|
|
Restricted Cash
|
14,557
|
|
|
—
|
|
|
—
|
|
|
14,701
|
|
|
—
|
|
|
29,258
|
|
||||||
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
—
|
|
|
—
|
|
|
87,589
|
|
|
—
|
|
|
87,589
|
|
||||||
Other Receivables
|
24,352
|
|
|
15,935
|
|
|
1,068
|
|
|
—
|
|
|
—
|
|
|
41,355
|
|
||||||
Inventories
|
—
|
|
|
37,580
|
|
|
11,066
|
|
|
—
|
|
|
—
|
|
|
48,646
|
|
||||||
Prepaid Expenses and Other Assets
|
10,883
|
|
|
15,451
|
|
|
5,096
|
|
|
—
|
|
|
—
|
|
|
31,430
|
|
||||||
Total Current Assets
|
284,328
|
|
|
69,104
|
|
|
18,233
|
|
|
102,290
|
|
|
—
|
|
|
473,955
|
|
||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, Plant and Equipment
|
—
|
|
|
3,891,873
|
|
|
946,298
|
|
|
—
|
|
|
—
|
|
|
4,838,171
|
|
||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
—
|
|
|
2,204,896
|
|
|
526,747
|
|
|
—
|
|
|
—
|
|
|
2,731,643
|
|
||||||
Total Property, Plant and Equipment-Net
|
—
|
|
|
1,686,977
|
|
|
419,551
|
|
|
—
|
|
|
—
|
|
|
2,106,528
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred Income Taxes
|
77,545
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,545
|
|
||||||
Affiliated Credit Facility
|
141,129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(141,129
|
)
|
|
—
|
|
||||||
Investment in Affiliates
|
605,981
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(605,981
|
)
|
|
—
|
|
||||||
Other
|
40,760
|
|
|
47,031
|
|
|
14,908
|
|
|
—
|
|
|
—
|
|
|
102,699
|
|
||||||
Total Other Assets
|
865,415
|
|
|
47,031
|
|
|
14,908
|
|
|
—
|
|
|
(747,110
|
)
|
|
180,244
|
|
||||||
Total Assets
|
$
|
1,149,743
|
|
|
$
|
1,803,112
|
|
|
$
|
452,692
|
|
|
$
|
102,290
|
|
|
$
|
(747,110
|
)
|
|
$
|
2,760,727
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts Payable
|
$
|
(721
|
)
|
|
$
|
102,995
|
|
|
$
|
24,834
|
|
|
$
|
—
|
|
|
$
|
3,822
|
|
|
$
|
130,930
|
|
Accounts Payable (Recoverable)-Related Parties
|
(2,291
|
)
|
|
36,220
|
|
|
3,831
|
|
|
87,593
|
|
|
(125,353
|
)
|
|
—
|
|
||||||
Current Portion of Long-Term Debt
|
8,157
|
|
|
11,139
|
|
|
3,503
|
|
|
—
|
|
|
112,013
|
|
|
134,812
|
|
||||||
Other Accrued Liabilities
|
92,534
|
|
|
105,806
|
|
|
31,916
|
|
|
—
|
|
|
(3,822
|
)
|
|
226,434
|
|
||||||
Total Current Liabilities
|
97,679
|
|
|
256,160
|
|
|
64,084
|
|
|
87,593
|
|
|
(13,340
|
)
|
|
492,176
|
|
||||||
Long-Term Debt:
|
577,957
|
|
|
151,202
|
|
|
146,196
|
|
|
—
|
|
|
(141,129
|
)
|
|
734,226
|
|
||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
441,246
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
441,246
|
|
||||||
Pneumoconiosis Benefits
|
—
|
|
|
160,741
|
|
|
4,260
|
|
|
—
|
|
|
—
|
|
|
165,001
|
|
||||||
Asset Retirement Obligations
|
—
|
|
|
226,209
|
|
|
9,775
|
|
|
—
|
|
|
—
|
|
|
235,984
|
|
||||||
Workers’ Compensation
|
—
|
|
|
56,623
|
|
|
3,119
|
|
|
—
|
|
|
—
|
|
|
59,742
|
|
||||||
Salary Retirement
|
64,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,172
|
|
||||||
Other
|
—
|
|
|
16,051
|
|
|
518
|
|
|
—
|
|
|
—
|
|
|
16,569
|
|
||||||
Total Deferred Credits and Other Liabilities
|
64,172
|
|
|
900,870
|
|
|
17,672
|
|
|
—
|
|
|
—
|
|
|
982,714
|
|
||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
409,935
|
|
|
494,880
|
|
|
224,740
|
|
|
14,697
|
|
|
(734,317
|
)
|
|
409,935
|
|
||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141,676
|
|
|
141,676
|
|
||||||
Total Liabilities and Equity
|
$
|
1,149,743
|
|
|
$
|
1,803,112
|
|
|
$
|
452,692
|
|
|
$
|
102,290
|
|
|
$
|
(747,110
|
)
|
|
$
|
2,760,727
|
|
|
Parent Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
107,358
|
|
|
$
|
(50,405
|
)
|
|
$
|
25,218
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
82,171
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
—
|
|
|
(26,078
|
)
|
|
(8,093
|
)
|
|
—
|
|
|
—
|
|
|
(34,171
|
)
|
||||||
Proceeds from Sales of Assets
|
—
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
311
|
|
||||||
(Investments in), net of Distributions from, Subsidiaries
|
(65,421
|
)
|
|
74,267
|
|
|
—
|
|
|
—
|
|
|
(8,846
|
)
|
|
—
|
|
||||||
Net Cash (Used in) Provided by Investing Activities
|
(65,421
|
)
|
|
48,500
|
|
|
(8,093
|
)
|
|
—
|
|
|
(8,846
|
)
|
|
(33,860
|
)
|
||||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments on Finance Leases
|
—
|
|
|
(3,599
|
)
|
|
(938
|
)
|
|
—
|
|
|
—
|
|
|
(4,537
|
)
|
||||||
Net (Payments on) Proceeds from Related Party Long-Term Notes
|
—
|
|
|
—
|
|
|
(1,500
|
)
|
|
—
|
|
|
1,500
|
|
|
—
|
|
||||||
Proceeds from Term Loan A
|
26,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,250
|
|
||||||
Payments on Term Loan B
|
(122,375
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122,375
|
)
|
||||||
Buyback of Second Lien Notes
|
(7,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,000
|
)
|
||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
(14,405
|
)
|
|
—
|
|
|
8,846
|
|
|
(5,559
|
)
|
||||||
Shares/Units Withheld for Taxes
|
—
|
|
|
(3,863
|
)
|
|
(880
|
)
|
|
—
|
|
|
—
|
|
|
(4,743
|
)
|
||||||
Debt-Related Financing Fees
|
(18,514
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,514
|
)
|
||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(121,639
|
)
|
|
$
|
(7,462
|
)
|
|
$
|
(17,723
|
)
|
|
$
|
—
|
|
|
$
|
10,346
|
|
|
$
|
(136,478
|
)
|
|
Parent Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Cash (Used in) Provided by Operating Activities
|
$
|
(2,305
|
)
|
|
$
|
88,774
|
|
|
$
|
29,264
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115,733
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures
|
—
|
|
|
(17,027
|
)
|
|
(4,929
|
)
|
|
—
|
|
|
—
|
|
|
(21,956
|
)
|
||||||
Proceeds from Sales of Assets
|
—
|
|
|
318
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
393
|
|
||||||
(Investments in), net of Distributions from, Subsidiaries
|
(2,048
|
)
|
|
2,048
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Cash Used in Investing Activities
|
(2,048
|
)
|
|
(14,661
|
)
|
|
(4,854
|
)
|
|
—
|
|
|
—
|
|
|
(21,563
|
)
|
||||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments on Finance Leases
|
—
|
|
|
(999
|
)
|
|
(367
|
)
|
|
—
|
|
|
—
|
|
|
(1,366
|
)
|
||||||
Net (Payments on) Proceeds from Related Party Long-Term Notes
|
—
|
|
|
—
|
|
|
(9,583
|
)
|
|
—
|
|
|
9,583
|
|
|
—
|
|
||||||
Payments on Term Loan A
|
(15,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,000
|
)
|
||||||
Payments on Term Loan B
|
(1,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,000
|
)
|
||||||
Buyback of Second Lien Notes
|
(10,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,000
|
)
|
||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
(14,346
|
)
|
|
—
|
|
|
8,759
|
|
|
(5,587
|
)
|
||||||
Shares/Units Withheld for Taxes
|
—
|
|
|
(1,889
|
)
|
|
(899
|
)
|
|
—
|
|
|
—
|
|
|
(2,788
|
)
|
||||||
Intercompany Contributions/(Distributions)
|
72,317
|
|
|
(72,317
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Spin Distribution to CNX Resources
|
(1,595
|
)
|
|
(16,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,234
|
)
|
||||||
Repurchases of Common Stock
|
(1,285
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,285
|
)
|
||||||
Debt-Related Financing Fees
|
(755
|
)
|
|
(415
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,170
|
)
|
||||||
Net Cash Provided by (Used in) Financing Activities
|
$
|
42,682
|
|
|
$
|
(92,259
|
)
|
|
$
|
(25,195
|
)
|
|
$
|
—
|
|
|
$
|
18,342
|
|
|
$
|
(56,430
|
)
|
|
Parent Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-
Guarantor |
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Income (Loss)
|
$
|
14,435
|
|
|
$
|
35,406
|
|
|
$
|
15,220
|
|
|
$
|
(415
|
)
|
|
$
|
(44,343
|
)
|
|
$
|
20,303
|
|
Other Comprehensive Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain
|
2,461
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
2,460
|
|
||||||
Other Comprehensive Income
|
2,461
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
2,460
|
|
||||||
Comprehensive Income (Loss)
|
16,896
|
|
|
35,406
|
|
|
15,219
|
|
|
(415
|
)
|
|
(44,343
|
)
|
|
22,763
|
|
||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,867
|
|
|
5,867
|
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
16,896
|
|
|
$
|
35,406
|
|
|
$
|
15,219
|
|
|
$
|
(415
|
)
|
|
$
|
(50,210
|
)
|
|
$
|
16,896
|
|
|
Parent Issuer
|
|
Guarantor
|
|
CCR Non-Guarantor
|
|
Non-
Guarantor |
|
Elimination
|
|
Consolidated
|
||||||||||||
Net Income (Loss)
|
$
|
62,408
|
|
|
$
|
62,789
|
|
|
$
|
24,092
|
|
|
$
|
(695
|
)
|
|
$
|
(77,636
|
)
|
|
$
|
70,958
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain (Loss)
|
3,999
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
3,997
|
|
||||||
Other Comprehensive Income (Loss)
|
3,999
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
3,997
|
|
||||||
Comprehensive Income (Loss)
|
66,407
|
|
|
62,789
|
|
|
24,090
|
|
|
(695
|
)
|
|
(77,636
|
)
|
|
74,955
|
|
||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,548
|
|
|
8,548
|
|
||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders
|
$
|
66,407
|
|
|
$
|
62,789
|
|
|
$
|
24,090
|
|
|
$
|
(695
|
)
|
|
$
|
(86,184
|
)
|
|
$
|
66,407
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating and Other Costs
|
$
|
763
|
|
|
$
|
685
|
|
Selling, General and Administrative Costs
|
3,056
|
|
|
1,645
|
|
||
Total Services from CONSOL Energy
|
$
|
3,819
|
|
|
$
|
2,330
|
|
•
|
Pennsylvania Mining Complex: The PAMC, which includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine and the Central Preparation Plant, has extensive high-quality coal reserves. We mine our reserves from the Pittsburgh No. 8 Coal Seam, which is a large contiguous formation of uniform, high-Btu coal that is ideal for high productivity, low-cost longwall operations. The design of the PAMC is optimized to produce large quantities of coal on a cost-efficient basis. We are able to sustain high production volumes at comparatively low operating costs due to, among other things, our technologically advanced longwall mining systems, logistics infrastructure and safety. All of our mines utilize longwall mining, which is a highly automated underground mining technique that produces large volumes of coal at lower costs compared to other underground mining methods. We own a 75% undivided interest in PAMC, and the remaining 25% is owned by CCR, as discussed below.
|
•
|
CCR Ownership: CONSOL Energy owns, directly or indirectly, through CCR's general partner, 61.4% of the partnership, which is comprised of a 1.7% general partner interest and a 59.7% limited partner interest. At March 31, 2019, CCR's assets included a 25% undivided interest in, and full operational control over, the PAMC.
|
•
|
CONSOL Marine Terminal: Through our subsidiary CONSOL Marine Terminals LLC, we provide coal export terminal services through the Port of Baltimore. The terminal can either store coal or load coal directly into vessels from rail cars. It is also one of the few terminals in the United States served by two railroads, Norfolk Southern Corporation and CSX Transportation Inc.
|
•
|
Itmann Mine: Construction of the Itmann Mine, located in Wyoming County, West Virginia, is expected to begin in late 2019 or early 2020; full production is expected in 2021 upon the completion of a new preparation plant. The Company anticipates 600+ thousand tons per year of high-quality, low-vol coking coal production.
|
•
|
Greenfield Reserves: We own approximately 1.6 billion tons of high-quality, undeveloped coal reserves located in NAPP, CAPP, and the ILB.
|
•
|
PAMC employees improved their safety performance by 70% compared to the year-ago quarter. The central preparation plant and CONSOL Marine Terminal continued their strong safety performance with an incident-free quarter.
|
•
|
Net income of
$20
million
|
•
|
Reduced total debt by $100 million during the quarter
|
•
|
Amended and paid down debt to lower the Company's annual expected interest expense by $15 million, improve operational and financial flexibility, extend maturities and boost liquidity
|
•
|
our operating performance as compared to the operating performance of other companies in the coal industry, without regard to financing methods, historical cost basis or capital structure;
|
•
|
the ability of our assets to generate sufficient cash flow;
|
•
|
our ability to incur and service debt and fund capital expenditures;
|
•
|
the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities; and
|
•
|
the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Total Costs and Expenses
|
|
$
|
351,160
|
|
|
$
|
333,115
|
|
Freight Expense
|
|
(6,662
|
)
|
|
(17,887
|
)
|
||
Selling, General and Administrative Costs
|
|
(21,923
|
)
|
|
(13,484
|
)
|
||
Loss on Debt Extinguishment
|
|
(23,143
|
)
|
|
(1,426
|
)
|
||
Interest Expense, net
|
|
(18,596
|
)
|
|
(21,045
|
)
|
||
Other Costs (Non-Production)
|
|
(30,793
|
)
|
|
(36,758
|
)
|
||
Depreciation, Depletion and Amortization (Non-Production)
|
|
(8,165
|
)
|
|
(8,375
|
)
|
||
Cost of Coal Sold
|
|
$
|
241,878
|
|
|
$
|
234,140
|
|
Depreciation, Depletion and Amortization (Production)
|
|
(42,559
|
)
|
|
(41,096
|
)
|
||
Cash Cost of Coal Sold
|
|
$
|
199,319
|
|
|
$
|
193,044
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Total Coal Revenue
|
|
$
|
332,502
|
|
|
$
|
351,009
|
|
Operating and Other Costs
|
|
230,112
|
|
|
229,802
|
|
||
Less: Other Costs (Non-Production)
|
|
(30,793
|
)
|
|
(36,758
|
)
|
||
Cash Cost of Coal Sold
|
|
199,319
|
|
|
193,044
|
|
||
Add: Depreciation, Depletion and Amortization
|
|
50,724
|
|
|
49,471
|
|
||
Less: Depreciation, Depletion and Amortization (Non-Production)
|
|
(8,165
|
)
|
|
(8,375
|
)
|
||
Cost of Coal Sold
|
|
$
|
241,878
|
|
|
$
|
234,140
|
|
Total Tons Sold (in millions)
|
|
6.7
|
|
|
6.6
|
|
||
Average Revenue per Ton Sold
|
|
$
|
49.38
|
|
|
$
|
52.98
|
|
Average Cash Cost per Ton Sold
|
|
29.71
|
|
|
29.21
|
|
||
Depreciation, Depletion and Amortization Costs per Ton Sold
|
|
6.21
|
|
|
6.13
|
|
||
Average Cost per Ton Sold
|
|
35.92
|
|
|
35.34
|
|
||
Average Margin per Ton Sold
|
|
13.46
|
|
|
17.64
|
|
||
Add: Depreciation, Depletion and Amortization Costs per Ton Sold
|
|
6.21
|
|
|
6.13
|
|
||
Average Cash Margin per Ton Sold
|
|
$
|
19.67
|
|
|
$
|
23.77
|
|
|
For the Three Months Ended
|
||||||||||
|
March 31,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
Variance
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Coal Revenue
|
$
|
333
|
|
|
$
|
351
|
|
|
$
|
(18
|
)
|
Freight Revenue
|
7
|
|
|
18
|
|
|
(11
|
)
|
|||
Miscellaneous Other Income
|
5
|
|
|
9
|
|
|
(4
|
)
|
|||
Total Revenue and Other Income
|
345
|
|
|
378
|
|
|
(33
|
)
|
|||
Cost of Coal Sold:
|
|
|
|
|
|
||||||
Operating Costs
|
199
|
|
|
193
|
|
|
6
|
|
|||
Depreciation, Depletion and Amortization
|
43
|
|
|
41
|
|
|
2
|
|
|||
Total Cost of Coal Sold
|
242
|
|
|
234
|
|
|
8
|
|
|||
Other Costs:
|
|
|
|
|
|
||||||
Other Costs
|
9
|
|
|
15
|
|
|
(6
|
)
|
|||
Depreciation, Depletion and Amortization
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total Other Costs
|
11
|
|
|
17
|
|
|
(6
|
)
|
|||
Freight Expense
|
7
|
|
|
18
|
|
|
(11
|
)
|
|||
Selling, General and Administrative Costs
|
21
|
|
|
11
|
|
|
10
|
|
|||
Total Costs and Expenses
|
281
|
|
|
280
|
|
|
1
|
|
|||
Earnings Before Income Tax
|
$
|
64
|
|
|
$
|
98
|
|
|
$
|
(34
|
)
|
|
|
For the Three Months Ended March 31,
|
|||||||
Mine
|
|
2019
|
|
2018
|
|
Variance
|
|||
Bailey
|
|
2,947
|
|
|
3,813
|
|
|
(866
|
)
|
Enlow Fork
|
|
2,830
|
|
|
2,017
|
|
|
813
|
|
Harvey
|
|
1,072
|
|
|
872
|
|
|
200
|
|
Total
|
|
6,849
|
|
|
6,702
|
|
|
147
|
|
|
For the Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Variance
|
||||||
Total Tons Sold
(in millions)
|
6.7
|
|
|
6.6
|
|
|
0.1
|
|
|||
Average Revenue per Ton Sold
|
$
|
49.38
|
|
|
$
|
52.98
|
|
|
$
|
(3.60
|
)
|
|
|
|
|
|
|
||||||
Average Cash Cost per Ton Sold
|
$
|
29.71
|
|
|
$
|
29.21
|
|
|
$
|
0.50
|
|
Depreciation, Depletion and Amortization Costs per Ton Sold (Non-Cash Cost)
|
6.21
|
|
|
6.13
|
|
|
0.08
|
|
|||
Total Costs per Ton Sold
|
$
|
35.92
|
|
|
$
|
35.34
|
|
|
$
|
0.58
|
|
Average Margin per Ton Sold
|
$
|
13.46
|
|
|
$
|
17.64
|
|
|
$
|
(4.18
|
)
|
Add: Depreciation, Depletion and Amortization Costs per Ton Sold
|
6.21
|
|
|
6.13
|
|
|
0.08
|
|
|||
Average Cash Margin per Ton Sold
(1)
|
$
|
19.67
|
|
|
$
|
23.77
|
|
|
$
|
(4.10
|
)
|
|
For the Three Months Ended
|
||||||||||
|
March 31,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
Variance
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Terminal Revenue
|
$
|
18
|
|
|
$
|
15
|
|
|
$
|
3
|
|
Miscellaneous Other Income
|
8
|
|
|
17
|
|
|
(9
|
)
|
|||
Total Revenue and Other Income
|
26
|
|
|
32
|
|
|
(6
|
)
|
|||
Other Costs and Expenses:
|
|
|
|
|
|
||||||
Operating and Other Costs
|
22
|
|
|
22
|
|
|
—
|
|
|||
Depreciation, Depletion and Amortization
|
6
|
|
|
7
|
|
|
(1
|
)
|
|||
Selling, General and Administrative Costs
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Loss on Debt Extinguishment
|
23
|
|
|
1
|
|
|
22
|
|
|||
Interest Expense, net
|
19
|
|
|
21
|
|
|
(2
|
)
|
|||
Total Other Costs and Expenses
|
71
|
|
|
53
|
|
|
18
|
|
|||
Loss Before Income Tax
|
$
|
(45
|
)
|
|
$
|
(21
|
)
|
|
$
|
(24
|
)
|
|
For the Three Months Ended March 31,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
Variance
|
||||||
Terminal Operating Costs
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
1
|
|
Employee-Related Legacy Liability Expense
|
9
|
|
|
10
|
|
|
(1
|
)
|
|||
Lease Rental Expense
|
1
|
|
|
1
|
|
|
—
|
|
|||
Coal Reserve Holding Costs
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Closed and Idle Mines
|
1
|
|
|
1
|
|
|
—
|
|
|||
Litigation Expense
|
3
|
|
|
3
|
|
|
—
|
|
|||
Other
|
2
|
|
|
1
|
|
|
1
|
|
|||
Total Operating and Other Costs
|
$
|
22
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
For the Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Cash Provided by Operating Activities
|
$
|
82
|
|
|
$
|
116
|
|
|
$
|
(34
|
)
|
Cash Used in Investing Activities
|
$
|
(34
|
)
|
|
$
|
(22
|
)
|
|
$
|
(12
|
)
|
Cash Used in Financing Activities
|
$
|
(136
|
)
|
|
$
|
(56
|
)
|
|
$
|
(80
|
)
|
|
For the Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Building and Infrastructure
|
$
|
15
|
|
|
$
|
6
|
|
|
$
|
9
|
|
Equipment Purchases and Rebuilds
|
7
|
|
|
5
|
|
|
2
|
|
|||
Refuse Storage Area
|
7
|
|
|
8
|
|
|
(1
|
)
|
|||
IS&T Infrastructure
|
3
|
|
|
1
|
|
|
2
|
|
|||
Other
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total Capital Expenditures
|
$
|
34
|
|
|
$
|
22
|
|
|
$
|
12
|
|
|
Year
|
Percentage
|
|
|
2021
|
105.50%
|
|
|
2022
|
102.75%
|
|
|
2023 and thereafter
|
100.00%
|
|
|
Payments due by Year
|
||||||||||||||||||
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
|
Total
|
||||||||||
Purchase Order Firm Commitments
|
$
|
1,210
|
|
|
$
|
1,352
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,562
|
|
Long-Term Debt
|
18,136
|
|
|
56,183
|
|
|
40,913
|
|
|
632,170
|
|
|
747,402
|
|
|||||
Interest on Long-Term Debt
|
60,815
|
|
|
117,705
|
|
|
110,104
|
|
|
77,598
|
|
|
366,222
|
|
|||||
Finance Lease Obligations
|
18,634
|
|
|
21,715
|
|
|
209
|
|
|
—
|
|
|
40,558
|
|
|||||
Operating Lease Obligations
|
23,245
|
|
|
45,947
|
|
|
19,033
|
|
|
20,539
|
|
|
108,764
|
|
|||||
Long-Term Liabilities—Employee Related (a)
|
57,931
|
|
|
110,296
|
|
|
106,786
|
|
|
454,542
|
|
|
729,555
|
|
|||||
Other Long-Term Liabilities (b)
|
167,460
|
|
|
49,410
|
|
|
31,974
|
|
|
157,237
|
|
|
406,081
|
|
|||||
Total Contractual Obligations (c)
|
$
|
347,431
|
|
|
$
|
402,608
|
|
|
$
|
309,019
|
|
|
$
|
1,342,086
|
|
|
$
|
2,401,144
|
|
(a)
|
Employee related long-term liabilities include other post-employment benefits and work-related injuries and illnesses. Estimated salaried retirement contributions required to meet minimum funding standards under ERISA are excluded from the pay-out table due to the uncertainty regarding amounts to be contributed. CONSOL Energy does not expect to contribute to the pension plan in 2019.
|
(b)
|
Other long-term liabilities include mine reclamation and closure and other long-term liability costs.
|
(c)
|
The significant obligations 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
$275 million
in connection with the Term Loan B (TLB) Facility, due in September 2024, less
$1 million
of unamortized bond discount. Borrowings under the TLB Facility bear interest at a floating rate.
|
•
|
An aggregate principal amount of
$267 million
of
11.00%
senior secured second lien notes due in November 2025. Interest on the notes is payable May 15 and November 15 of each year.
|
•
|
An aggregate principal amount of
$100 million
in connection with the Term Loan A (TLA) Facility, due in March 2023. Borrowings under the TLA Facility bear interest at a floating rate.
|
•
|
An aggregate principal amount of
$103 million
of industrial revenue bonds which were issued to finance the Baltimore port facility and bear interest at
5.75%
per annum and mature in September 2025. Interest on the industrial revenue bonds is payable March 1 and September 1 of each year. Payment of the principal and interest on the notes is guaranteed by CONSOL Energy.
|
•
|
Advance royalty commitments of
$2 million
with an average interest rate of
8.57%
per annum.
|
•
|
An aggregate principal amount of
$38 million
of finance leases with a weighted average interest rate of
5.38%
per annum.
|
•
|
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;
|
•
|
volatility and wide fluctuation in coal prices 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 coal affecting our operating results and cash flows;
|
•
|
the risk of our debt agreements, our debt and changes in interest rates affecting our operating results and cash flows;
|
•
|
the effect of our affiliated company credit agreement on our cash flows;
|
•
|
foreign currency fluctuations that 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;
|
•
|
decreases in demand and changes in coal consumption patterns of U.S. electric power generators;
|
•
|
our inability to acquire additional coal reserves that are economically recoverable;
|
•
|
our inability to collect payments from customers if their creditworthiness declines or if they fail to honor their contracts;
|
•
|
our inability to acquire additional coal reserves and other assets;
|
•
|
the availability and reliability of transportation facilities and other systems, disruption of rail, barge, processing and transportation facilities and other systems that deliver our coal to market and fluctuations in transportation costs;
|
•
|
a loss of our competitive position because of the competitive nature of 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, regulations to address climate change, including any relating to greenhouse gas emissions on our operating costs as well as on the market for coal;
|
•
|
the effects of litigation seeking to hold energy companies accountable for the effects of climate change;
|
•
|
the risks inherent in coal operations, including our reliance upon third party contractors, being subject to unexpected disruptions, including geological conditions, equipment failure, delays in moving out longwall equipment, railroad derailments, security breaches or terroristic acts and other hazards, timing of completion of significant construction or repair of equipment, fires, explosions, seismic activities, 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 coal mining operations;
|
•
|
obtaining, maintaining and renewing governmental permits and approvals for our 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 coal operations;
|
•
|
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 coal operations;
|
•
|
the effects of mine closing, reclamation and certain other liabilities;
|
•
|
defects in our chain of title for our undeveloped reserves or failure to acquire additional property to perfect our title to coal rights;
|
•
|
uncertainties in estimating our economically recoverable coal reserves;
|
•
|
the outcomes of various legal proceedings, including those which are more fully described herein;
|
•
|
exposure to employee-related long-term liabilities;
|
•
|
failure by one or more of the third parties to satisfy certain liabilities it acquired from our former parent, or failure to perform its obligations under various arrangements, which our former parent guaranteed and for which we have indemnification obligations to our former parent;
|
•
|
information theft, data corruption, operational disruption and/or financial loss resulting from a terrorist attack or cyber incident;
|
•
|
operating in a single geographic area;
|
•
|
the effects of coordinating our operations with oil and natural gas drillers and distributors operating on our land;
|
•
|
certain provisions in our multi-year coal sales contracts may provide limited protection during adverse economic conditions, and may result in economic penalties or permit the customer to terminate the contract;
|
•
|
the majority of our common units in the Partnership are subordinated, and we may not receive distributions from the Partnership;
|
•
|
the potential failure to retain and attract skilled personnel of the Company;
|
•
|
unfavorable terms in our separation from our former parent, related agreements and other transactions and the Company’s agreement to provide certain indemnification to our former parent following the separation;
|
•
|
the Company’s failure to obtain any consents that may be required under existing contracts and other arrangements with third parties;
|
•
|
a determination by the IRS that the distribution or certain related transactions should be treated as a taxable transaction;
|
•
|
the Company’s ability to engage in desirable strategic or capital-raising transactions after the separation;
|
•
|
exposure to potential liabilities arising out of state and federal fraudulent conveyance laws and legal dividend requirements as a result of the separation and related transactions;
|
•
|
uncertainty with respect to the Company’s common stock, potential stock price volatility and future dilution;
|
•
|
the existence of certain anti-takeover provisions in our governance documents, which could prevent or delay an acquisition of the Company and negatively impact the trading price of the Company’s common stock;
|
•
|
adverse effect of cybersecurity threats;
|
•
|
recent action and the possibility of future action on trade made by U.S. and foreign governments;
|
•
|
our inability to obtain financing for capital expenditures on satisfactory terms;
|
•
|
the effect of new tariffs and other trade measures;
|
•
|
our inability to find suitable acquisition targets or integrating the operations of future acquisitions into our operations;
|
•
|
the effects of hedging transactions on our cash flow;
|
•
|
failure to maintain effective internal controls over financial reporting;
|
•
|
the failure to receive the benefits of certain contracts assigned to us in the separation but for which consent by our counterparty to such assignment was not given;
|
•
|
certain indemnification obligations that we may have to our former parent as a result of the separation and the failure of our former parent to indemnify us for certain indemnity obligations they owe us as a result of the separation;
|
•
|
uncertainty regarding the timing of any dividends we may declare;
|
•
|
uncertainty as to whether we will repurchase shares of our common stock or outstanding debt securities;
|
•
|
restrictions on the ability to acquire us in our certificate of incorporation, bylaws and Delaware law and the resulting effects on the trading price of our common stock;
|
•
|
inability of stockholders to bring legal action against us in any forum other than the state courts of Delaware; and
|
•
|
other unforeseen factors.
|
|
CONSOL ENERGY INC.
|
||
|
|
|
|
|
By:
|
|
/s/ JAMES A. BROCK
|
|
|
|
James A. Brock
|
|
|
|
Director, Chief Executive Officer and President
(Principal Executive Officer)
|
|
|
|
|
|
By:
|
|
/s/ DAVID M. KHANI
|
|
|
|
David M. Khani
|
|
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
By:
|
|
/s/ JOHN M. ROTHKA
|
|
|
|
John M. Rothka
|
|
|
|
Chief Accounting Officer
(Principal Accounting Officer) |
1.)
|
You will continue to work for the Company through March 31, 2020, your retirement date ("Retirement Date");
|
2.)
|
Management will recommend a change in the original terms and conditions of any equity awards (RSUs and PSUs)
1
still outstanding on your behalf as of your Retirement Date that are not yet vested. The recommendation will include:
|
a.
|
Continued vesting (beyond your Retirement Date as if you continued employment) of any of your RSUs, PSUs or other equity awards currently outstanding that are unvested as of your Retirement Date;
|
b.
|
With respect to any PSUs, the vesting of such awards will be subject to the satisfactory achievement of any performance metrics attached to such awards as reviewed and approved by the Committee at the end of the applicable performance period.
|
c.
|
In the event that you terminate employment prior to March 31, 2020, the original terms and conditions attached to your awards shall continue in place.
|
3.)
|
The action outlined in this letter is subject to the formal approval of the Compensation Committee, and it is anticipated this matter will be presented to the Committee at the February 2019 Committee meeting.
|
1.
|
Terms and Conditions
: This grant of service-based restricted stock units is made under the CONSOL Energy Inc. Omnibus Incentive Plan
(the “
Plan
”), and is subject in all respects to the terms of the Plan. All terms of the Plan are hereby incorporated into these terms and conditions (the “
Terms and Conditions
”) by reference. In the event of a conflict between one or more provisions of these Terms and Conditions and one or more provisions of the Plan, the provisions of the Plan shall govern; provided that the terms of any written individual Agreement entered into between the Company and the Grantee approved by the Committee shall supersede these Terms and Conditions so long as consistent with the Plan. Each capitalized term not defined herein has the meaning assigned to such term in the Plan.
|
2.
|
Confirmation of Grant
: Effective as of ________, 20__ (the “
Award Date
”), CONSOL Energy Inc. (the “
Company
”) granted the individual whose name is set forth in the notice of grant (the “
Grantee
”) service-based Restricted Stock Units with respect to a specified number of shares of Common Stock as set forth in the Grantee’s notice of grant (the “
RSUs
”). By accepting the RSUs, the Grantee acknowledges and agrees that the RSUs are subject to the Terms and Conditions and the terms of the Plan.
|
3.
|
Stockholder Rights
:
|
a.
|
Except as provided in Section 3(b) below, the Grantee will not have any stockholder rights or privileges (including voting rights) with respect to the shares of Common Stock subject to the RSUs until such shares of Common Stock vest and are actually issued and registered in the Grantee’s name in the Company’s books and records.
|
b.
|
If the Company declares a cash dividend on its shares of Common Stock, on the payment date of the dividend, the Grantee shall be credited with dividend equivalents equal to the amount of such cash dividend per share of Common Stock multiplied by the number of shares of Common Stock subject to the RSUs. The dividend equivalents will be subject to the same terms regarding vesting and forfeiture as the RSUs and will be paid in cash at the times that the corresponding shares of Common Stock associated with the RSUs are delivered (or forfeited at the time that the RSUs are forfeited). Such cash payment will be subject to withholding for applicable taxes.
|
4.
|
Automatic Forfeiture
: The RSUs (including any RSUs that have vested but not yet been settled) will automatically be forfeited and all rights of the Grantee to the RSUs shall terminate under any of the following circumstances:
|
a.
|
The Grantee’s employment is terminated by the Company for Cause.
|
b.
|
The Grantee breaches any restrictive covenant set forth on the attached
Exhibit A
or in any restrictive covenants agreement between the Grantee and the Company or an affiliate.
|
5.
|
Restrictive Covenants
: By accepting the RSUs, the Grantee agrees to comply with the confidentiality, non-solicitation and non-competition covenants set forth on the attached
Exhibit A
. If the Grantee has a written restrictive covenants agreement with the Company or one of its affiliates, the Grantee also agrees to continue to comply with the obligations under such Restrictive Covenants Agreement as a condition of grant of the RSUs.
|
6.
|
Transferability
: The RSUs shall not be sold, transferred, assigned, pledged or otherwise encumbered or disposed.
|
7.
|
Vesting
: The RSUs shall vest in [XX] equal installments on [insert vesting dates]; provided that the Grantee continues to be employed by the Company through the applicable vesting date. Except as otherwise provided below, if a Grantee terminates employment prior to the applicable vesting date, any unvested RSUs shall be forfeited and all rights of the Grantee to the unvested RSUs shall terminate.
|
8.
|
Termination of Employment
: If, prior to the applicable vesting date,
|
a.
|
(i) the Grantee’s employment is terminated by reason of death or Disability (as defined below), (ii) the Grantee’s employment is terminated (other than for Cause) or (iii) the Grantee’s employment is involuntarily terminated by the Company without Cause, (A) a number of RSUs (rounded up to the nearest whole number) shall vest such that the ratio of (I) the total number of RSUs granted on the Award Date that have vested after giving effect to this provision to (II) the total number of RSUs granted on the Award Date equals the ratio of (I) the number of completed full months from the Award Date to the date of the Grantee’s termination of employment to (II) 36, and (B) any remaining portion of the RSUs shall be forfeited. The vested RSUs shall be settled as described in Section 10 below. For purposes of these Terms and Conditions, “
Disability
” means permanently and totally disabled under the terms of the Company’s qualified retirement plans.
|
b.
|
the Grantee’s terminates employment on or after attaining age sixty (60) with twenty (20) or more years of service with the Company or an affiliate, also including any years of service with CNX Resources Corporation (our former parent or its affiliates), then the RSUs shall vest in full and be settled as described in Section 10 below.
|
9.
|
Change in Control
: In the event of a Change in Control, where following the Change in Control the RSUs are assumed, and, within 2 years following the Change in Control, the Grantee’s employment is terminated by reason of the Grantee’s death or Disability or the Grantee terminates employment after attaining age sixty (60) with twenty (20) or more years of service with the Company or an affiliate, also including any years of service with CNX Resources Corporation (our former parent), or by the assuming company without Cause, the RSUs shall vest in full and be settled as provided in Section 10 of these Terms and Conditions. In the event of a Change of Control where the RSUs are not assumed the RSUs shall immediately vest and be settled in accordance with Section 10 of these Terms and Conditions.
|
10.
|
Settlement
: Any RSUs not previously forfeited shall be settled by delivery of one share of Common Stock for each RSU being settled. The RSUs shall be settled as soon as practicable after the applicable vesting date (including without limitation for this purpose vesting upon the Grantee’s termination of employment as provided in Section 8 and Section 9), but in no event later than 60 days after the applicable vesting date. Notwithstanding the foregoing, to the extent that the RSUs are subject to Section 409A of the Internal Revenue Code, all such payments shall be made in compliance with the requirements of Section 409A of the Internal Revenue Code, including application of the six month settlement delay for any specified employee (as defined in Section 409A of the Internal Revenue Code) in the event of vesting as a result of a separation from service (as defined in Section 409A of the Internal Revenue Code).
|
11.
|
Tax Withholding
: The Grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the RSUs. The tax withholding obligation shall be satisfied by withholding shares of Common Stock otherwise issuable in respect of the Grantee’s RSUs. The grantee authorizes the Company to satisfy any tax withholding obligation arising upon the lapse of any risk of forfeiture (including FICA due upon such lapse) by accelerating the vesting and withholding of the number of shares of Common Stock subject to the RSUs required to satisfy such tax withholding obligation. The Company may withhold shares up to the maximum applicable withholding tax rate for federal (including FICA), state, local and foreign tax liabilities. Shares of Common Stock used to satisfy tax withholding shall be valued based on the Fair Market Value when the tax withholding is required to be made.
|
12.
|
No Right to Continued Employment
: The Grantee understands and agrees that these Terms and Conditions do not impact the right of the Company or any of its affiliates employing the Grantee to terminate or change the terms of the Grantee’s employment at any time for any reason, with or without cause. The Grantee understands and agrees that the Grantee’s employment with the Company or any of its affiliates is on an “at-will” basis.
|
13.
|
Captions
: Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of these Terms and Conditions.
|
14.
|
Severability
: In the event that any provision in these Terms and Conditions shall be held invalid or unenforceable for any reason, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of these Terms and Conditions.
|
1.
|
Terms and Conditions
: This grant of performance-based Restricted Stock Units is made under the CONSOL Energy Inc. Omnibus Performance Incentive Plan (the “
Plan
”), and is subject in all respects to the terms of the Plan. All terms of the Plan are hereby incorporated into these terms and conditions (the “
Terms and Conditions
”) by reference. In the event of a conflict between one or more provisions of these Terms and Conditions and one or more provisions of the Plan, the provisions of the Plan shall govern; provided that the terms of any individual written Agreement entered into by the Company and the Grantee approved by the Committee shall supersede these Terms and Conditions so long as consistent with the Plan. Each capitalized term not defined herein has the meaning assigned to such term in the Plan.
|
2.
|
Confirmation of Grant
: Effective as of ___________, 20__ (the “
Award Date
”), CONSOL Energy Inc. (the “
Company
”) granted the individual whose name is set forth in the notice of grant (the “
Grantee
”) performance-based Restricted Stock Units with respect to a specified number of shares of Common Stock as set forth in the Grantee’s notice of grant (the “
PSUs
”). By accepting the PSUs, the Grantee acknowledges and agrees that the PSUs are subject to these Terms and Conditions and the terms of the Plan.
|
3.
|
Stockholder Rights
:
|
a.
|
Except as provided in Section 3(b) below, the Grantee will not have any stockholder rights or privileges (including voting rights) with respect to the shares of Common Stock subject to the PSUs until such shares of Common Stock are actually issued and registered in the Grantee’s name in the Company’s books and records.
|
b.
|
If the Company declares a cash dividend on its shares of Common Stock, on the payment date of the dividend, the Grantee shall be credited with dividend equivalents equal to the amount of such cash dividend per share of Common Stock multiplied by the number of shares of Common Stock subject to the PSUs. The dividend equivalents will be subject to the same terms regarding vesting and forfeiture as the PSUs and will be paid in cash at the time(s) that the corresponding shares of Common Stock associated with the PSUs are delivered (or forfeited at the time that the PSUs are forfeited). Such cash payment will be subject to withholding for applicable taxes.
|
4.
|
Automatic Forfeiture
: The PSUs will automatically be forfeited and all rights of the Grantee to the PSUs shall terminate under the following circumstances:
|
a.
|
Employment of the Grantee is terminated for Cause.
|
b.
|
The Grantee breaches any confidentiality, non-solicitation or non-competition covenant set forth on the attached
Exhibit B
or in any restrictive covenants agreement between the Grantee and the Company or an affiliate.
|
c.
|
The Committee requires recoupment of the PSUs in accordance with any recoupment policy adopted or amended by the Company from time to time.
|
5.
|
Restrictive Covenants
: By accepting the PSUs, the Grantee agrees to comply with the confidentiality, non-solicitation and non-competition covenants set forth on the attached
Exhibit B
. If the Grantee has a written restrictive covenants agreement with the Company or an affiliate, the Grantee also agrees to continue to comply with the obligations under such restrictive covenants agreement as a condition of grant of the PSUs.
|
6.
|
Transferability
: The PSUs shall not be sold, transferred, assigned, pledged or otherwise encumbered or disposed.
|
7.
|
Vesting
: The PSUs shall vest in [XXX] increments on [insert vesting dates] based on attainment of the performance goals set forth on the attached
Exhibit A
(the “
Performance Goals
”) during the period beginning on __________, 20__ and ending on _________, 20__ (the “
Performance Period
”), provided the Grantee continues to be employed by the Company through December 31 of each calendar year during the Performance Period, and provided further that no PSUs shall be settled until the Committee certifies that the Performance Goals have been attained. At the end of each calendar year during the Performance Period, the Committee shall determine whether and to what extent the Performance Goals have been met, shall certify attainment of the Performance Goals and shall authorize the settlement of PSU Awards consistent with the achievement of the Performance Goals, which settlement shall take place as soon as practicable thereafter. The Committee shall have the discretion to reduce (including to zero) the number of PSUs that would otherwise vest upon attainment of the Performance Goals, based on such factors as the Committee deems appropriate. In the event that the Performance Goals have not been met, the PSUs shall automatically be forfeited and all rights of the Grantee to the PSUs shall terminate. Except as otherwise provided below, if the Grantee terminates employment prior to the end of any calendar year which ends within the Performance Period, the PSUs eligible for vesting shall be cancelled and all rights of the Grantee to the PSU Award shall terminate.
|
8.
|
Termination of Employment
: If, following the Award Date and prior to the date on which the Committee Certifies the Performance Goals have been attained,
|
a.
|
(i) the Grantee’s employment is terminated by reason of death or Disability (as defined below), (ii) the Grantee’s employment is terminated (other than for Cause) or (iii) the Grantee’s employment is involuntarily terminated without Cause, the Grantee shall earn a pro rata portion of the PSUs based on the achievement of the Performance Goals as certified by the Committee following the end of the Performance Period. The pro rata portion of the PSUs that vest shall be determined by multiplying the number of PSUs earned based on attainment of the Performance Goals, by a fraction, the numerator of which is the number of completed full months from the Award Date to the date of the Grantee’s termination of employment and the denominator of which is 36. The vested PSUs shall be settled as described in Section 10 below. For purposes of these Terms and Conditions, “Disability means permanently and totally disable under the terms of the Company’s qualified retirement plans.
|
b.
|
the Grantee terminates employment on or after attaining age sixty (60) with twenty (20) or more years of service with the Company or an affiliate, also including any years of service with CNX Resources Corporation (our former parent or its affiilates), then the PSUs shall vest in full based on the achievement of the Performance Goals as certified by the Committee following the end of the Performance Period. The vested PSUs shall be settled as described in Section 10 below.
|
9.
|
Settlement
: The PSUs shall be settled by delivery of one share of Common Stock for each PSU earned based on the achievement of Performance Goals during the Performance Period. The PSUs shall be settled as soon as practicable after the date that the Committee certifies the Performance Goals have been achieved, but in no event later than 60 days after such date. Notwithstanding the foregoing, to the extent that the PSUs are subject to Section 409A of the Internal Revenue Code, all such payments shall be made in compliance with the requirements of Section 409A of the Internal Revenue Code.
|
10.
|
Change in Control
: Upon the occurrence of a Change in Control as defined in Section 17 of the Plan, and absent any provision in any agreement between the Grantee and the Company to the contrary, the PSUs shall vest in full, be free of any restrictions, and be deemed earned in an amount equal to the product obtained by multiplying (i) the full value of the PSUs with all applicable Performance Goals achieved at the greater of (A) the applicable target level and (B) the level of achievement of the Performance Goals for the PSUs as determined by the Committee no later than the Change in Control, taking into account performance through the date of the Change in Control to which performance can, as a practical matter, be determined (but not later than the end of the applicable Performance Period) and (ii) the applicable pro-ration factor. For purposes of this Section 10, applicable pro-ration factor shall mean the quotient obtained by dividing the number of days that have elapsed during the applicable Performance Period through and including the date of the Change in Control by the total number of days covered by the full Performance Period.
|
11.
|
Tax Withholding
: The Grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the PSUs. The tax withholding obligation shall be satisfied by withholding shares of Common Stock otherwise issuable in respect of the Grantee’s PSUs. Any tax withholding obligations arising upon the lapse of any risk of forfeiture (including FICA due upon such lapse) shall be satisfied by withholding of the number of shares of Common Stock subject to the PSUs. The Company may withhold shares up to the maximum applicable withholding tax rate for federal (including FICA) state, local and foreign tax liabilities. Shares of Common Stock are used to satisfy tax withholding, such shares shall be valued based on the Fair Market Value when the tax withholding is required to be made.
|
12.
|
No Right to Continued Employment
. The Grantee understands and agrees that these Terms and Conditions do not impact the right of the Company or any of its affiliates employing the Grantee to terminate or change the terms of the Grantee’s employment at any time for any reason, with or without cause. The Grantee understands and agrees that the Grantee’s employment with the Company or any of its affiliates is on an “at-will” basis.
|
13.
|
Captions
. Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of these Terms and Conditions.
|
14.
|
Severability.
In the event that any provision in these Terms and Conditions shall be held invalid or unenforceable for any reason, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of these Terms and Conditions.
|
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.
|
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.
|
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.
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received
|
|
Notice 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
|
|
28
|
|
—
|
|
1
|
|
—
|
|
1
|
|
63,403
|
|
—
|
|
No
|
|
No
|
|
8
|
|
3
|
|
1
|
Enlow Fork
|
|
36-07416
|
|
9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14,271
|
|
—
|
|
No
|
|
No
|
|
12
|
|
3
|
|
5
|
Harvey
|
|
36-10045
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,081
|
|
—
|
|
No
|
|
No
|
|
8
|
|
3
|
|
2
|
|
|
|
|
41
|
|
—
|
|
1
|
|
—
|
|
1
|
|
86,755
|
|
—
|
|
|
|
|
|
28
|
|
9
|
|
8
|
Mine or Operating Name/MSHA Identification Number
|
|
Contests of Citations, Orders
(as of 3.31.19) (a) |
|
Contests of Proposed Penalties
(as of 3.31.19) (b) |
|
Complaints for Compensation
(as of 3.31.19) (c) |
|
Complaints of Discharge, Discrimination or Interference
(as of 3.31.19) (d) |
|
Applications for Temporary Relief
(as of 3.31.19) (e) |
|
Appeals of Judges' Decisions or Order
(as of 3.31.19) (f) |
||||
|
|
|
||||||||||||||
|
|
Dockets
|
|
Citations
|
|
|
|
|
||||||||
Active Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bailey
|
|
36-07230
|
|
—
|
|
8
|
|
41
|
|
—
|
|
—
|
|
—
|
|
1
|
Enlow Fork
|
|
36-07416
|
|
—
|
|
12
|
|
101
|
|
—
|
|
—
|
|
—
|
|
—
|
Harvey
|
|
36-10045
|
|
—
|
|
8
|
|
31
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
—
|
|
28
|
|
173
|
|
—
|
|
—
|
|
—
|
|
1
|