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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CONSOL Energy, Inc. | NYSE:CNX.WI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
51-0337383
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Class
|
|
Shares outstanding as of April 17, 2017
|
Common stock, $0.01 par value
|
|
230,049,173
|
|
TABLE OF CONTENTS
|
||
|
|
Page
|
PART I FINANCIAL INFORMATION
|
|
|
|
|
|
ITEM 1.
|
Condensed Financial Statements
|
|
|
Consolidated Statements of Income for the three months ended March 31, 2017 and 2016
|
|
|
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016
|
|
|
Consolidated Balance Sheets at March 31, 2017 and December 31, 2016
|
|
|
Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2017
|
|
|
Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016
|
|
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
PART II OTHER INFORMATION
|
|
|
|
|
|
ITEM 1.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
ITEM 6.
|
ITEM 1.
|
CONDENSED FINANCIAL STATEMENTS
|
(Dollars in thousands, except per share data)
|
Three Months Ended
|
||||||
(Unaudited)
|
March 31,
|
||||||
Revenues and Other Income:
|
2017
|
|
2016
|
||||
Natural Gas, NGLs and Oil Sales
|
$
|
317,763
|
|
|
$
|
181,255
|
|
(Loss) Gain on Commodity Derivative Instruments
|
(22,463
|
)
|
|
55,060
|
|
||
Coal Sales
|
316,448
|
|
|
226,164
|
|
||
Other Outside Sales
|
13,053
|
|
|
7,766
|
|
||
Purchased Gas Sales
|
8,979
|
|
|
8,618
|
|
||
Freight-Outside Coal
|
12,282
|
|
|
13,110
|
|
||
Miscellaneous Other Income
|
40,696
|
|
|
48,131
|
|
||
Gain (Loss) on Sale of Assets
|
11,951
|
|
|
(7,276
|
)
|
||
Total Revenue and Other Income
|
698,709
|
|
|
532,828
|
|
||
Costs and Expenses:
|
|
|
|
||||
Exploration and Production Costs
|
|
|
|
||||
Lease Operating Expense
|
21,633
|
|
|
27,739
|
|
||
Transportation, Gathering and Compression
|
94,332
|
|
|
93,974
|
|
||
Production, Ad Valorem, and Other Fees
|
9,329
|
|
|
8,303
|
|
||
Depreciation, Depletion and Amortization
|
95,348
|
|
|
105,715
|
|
||
Exploration and Production Related Other Costs
|
9,786
|
|
|
1,747
|
|
||
Purchased Gas Costs
|
8,895
|
|
|
7,868
|
|
||
Other Corporate Expenses
|
17,930
|
|
|
22,798
|
|
||
Impairment of Exploration and Production Properties
|
137,865
|
|
|
—
|
|
||
Selling, General, and Administrative Costs
|
21,490
|
|
|
22,458
|
|
||
Total Exploration and Production Costs
|
416,608
|
|
|
290,602
|
|
||
PA Mining Operations Costs
|
|
|
|
||||
Operating and Other Costs
|
199,815
|
|
|
154,101
|
|
||
Depreciation, Depletion and Amortization
|
42,301
|
|
|
41,266
|
|
||
Freight Expense
|
12,282
|
|
|
13,110
|
|
||
Selling, General, and Administrative Costs
|
14,868
|
|
|
5,776
|
|
||
Total PA Mining Operations Costs
|
269,266
|
|
|
214,253
|
|
||
Other Costs
|
|
|
|
||||
Miscellaneous Operating Expense
|
43,200
|
|
|
35,339
|
|
||
Selling, General, and Administrative Costs
|
2,211
|
|
|
1,853
|
|
||
Depreciation, Depletion and Amortization
|
11,104
|
|
|
8,007
|
|
||
Gain on Debt Extinguishment
|
(822
|
)
|
|
—
|
|
||
Interest Expense
|
44,433
|
|
|
49,865
|
|
||
Total Other Costs
|
100,126
|
|
|
95,064
|
|
||
Total Costs And Expenses
|
786,000
|
|
|
599,919
|
|
||
Loss From Continuing Operations Before Income Tax
|
(87,291
|
)
|
|
(67,091
|
)
|
||
Income Tax Benefit
|
(53,789
|
)
|
|
(23,800
|
)
|
||
Loss From Continuing Operations
|
(33,502
|
)
|
|
(43,291
|
)
|
||
Loss From Discontinued Operations, net
|
—
|
|
|
(53,167
|
)
|
||
Net Loss
|
(33,502
|
)
|
|
(96,458
|
)
|
||
Less: Net Income Attributable to Noncontrolling Interest
|
5,464
|
|
|
1,114
|
|
||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(38,966
|
)
|
|
$
|
(97,572
|
)
|
|
Three Months Ended
|
||||||
(Dollars in thousands, except per share data)
|
March 31,
|
||||||
(Unaudited)
|
2017
|
|
2016
|
||||
Loss Per Share
|
|
|
|
||||
Basic
|
|
|
|
||||
Loss from Continuing Operations
|
$
|
(0.17
|
)
|
|
$
|
(0.19
|
)
|
Loss from Discontinued Operations
|
—
|
|
|
(0.24
|
)
|
||
Total Basic Loss Per Share
|
$
|
(0.17
|
)
|
|
$
|
(0.43
|
)
|
Dilutive
|
|
|
|
||||
Loss from Continuing Operations
|
$
|
(0.17
|
)
|
|
$
|
(0.19
|
)
|
Loss from Discontinued Operations
|
—
|
|
|
(0.24
|
)
|
||
Total Dilutive Loss Per Share
|
$
|
(0.17
|
)
|
|
$
|
(0.43
|
)
|
|
|
|
|
||||
Dividends Declared Per Share
|
$
|
—
|
|
|
$
|
0.0100
|
|
|
Three Months Ended
|
||||||
(Dollars in thousands)
|
March 31,
|
||||||
(Unaudited)
|
2017
|
|
2016
|
||||
Net Loss
|
$
|
(33,502
|
)
|
|
$
|
(96,458
|
)
|
Other Comprehensive Income (Loss):
|
|
|
|
||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($2,052), $682)
|
3,502
|
|
|
(2,484
|
)
|
||
Reclassification of Cash Flow Hedges from OCI to Earnings (Net of tax: $5,624)
|
—
|
|
|
(9,814
|
)
|
||
|
|
|
|
||||
Other Comprehensive Income (Loss)
|
3,502
|
|
|
(12,298
|
)
|
||
|
|
|
|
||||
Comprehensive Loss
|
(30,000
|
)
|
|
(108,756
|
)
|
||
|
|
|
|
||||
Less: Comprehensive Income Attributable to Noncontrolling Interests
|
5,452
|
|
|
1,114
|
|
||
|
|
|
|
||||
Comprehensive Loss Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(35,452
|
)
|
|
$
|
(109,870
|
)
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands)
|
March 31,
2017 |
|
December 31,
2016 |
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
61,266
|
|
|
$
|
60,475
|
|
Accounts and Notes Receivable:
|
|
|
|
||||
Trade
|
215,329
|
|
|
220,222
|
|
||
Other Receivables
|
100,949
|
|
|
69,901
|
|
||
Inventories
|
69,618
|
|
|
65,461
|
|
||
Recoverable Income Taxes
|
124,555
|
|
|
116,851
|
|
||
Prepaid Expenses
|
44,498
|
|
|
93,146
|
|
||
Current Assets of Discontinued Operations
|
—
|
|
|
83
|
|
||
Total Current Assets
|
616,215
|
|
|
626,139
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Property, Plant and Equipment
|
13,518,261
|
|
|
13,771,388
|
|
||
Less—Accumulated Depreciation, Depletion and Amortization
|
5,695,342
|
|
|
5,630,949
|
|
||
Property, Plant and Equipment of Assets Held for Sale, Net
|
163,622
|
|
|
—
|
|
||
Total Property, Plant and Equipment—Net
|
7,986,541
|
|
|
8,140,439
|
|
||
Other Assets:
|
|
|
|
||||
Deferred Income Taxes
|
44,174
|
|
|
4,290
|
|
||
Investment in Affiliates
|
197,385
|
|
|
190,964
|
|
||
Other
|
219,454
|
|
|
222,149
|
|
||
Total Other Assets
|
461,013
|
|
|
417,403
|
|
||
TOTAL ASSETS
|
$
|
9,063,769
|
|
|
$
|
9,183,981
|
|
|
(Unaudited)
|
|
|
||||
(Dollars in thousands, except per share data)
|
March 31,
2017 |
|
December 31,
2016 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
270,739
|
|
|
$
|
241,616
|
|
Current Portion of Long-Term Debt
|
11,851
|
|
|
12,000
|
|
||
Other Accrued Liabilities
|
704,367
|
|
|
680,348
|
|
||
Current Liabilities of Discontinued Operations
|
5,892
|
|
|
6,050
|
|
||
Total Current Liabilities
|
992,849
|
|
|
940,014
|
|
||
Long-Term Debt:
|
|
|
|
||||
Long-Term Debt
|
2,620,698
|
|
|
2,722,995
|
|
||
Capital Lease Obligations
|
36,596
|
|
|
39,074
|
|
||
Total Long-Term Debt
|
2,657,294
|
|
|
2,762,069
|
|
||
Deferred Credits and Other Liabilities:
|
|
|
|
||||
Postretirement Benefits Other Than Pensions
|
656,890
|
|
|
659,474
|
|
||
Pneumoconiosis Benefits
|
107,792
|
|
|
108,073
|
|
||
Mine Closing
|
224,055
|
|
|
218,631
|
|
||
Gas Well Closing
|
224,588
|
|
|
223,352
|
|
||
Workers’ Compensation
|
66,429
|
|
|
67,277
|
|
||
Salary Retirement
|
108,485
|
|
|
112,543
|
|
||
Other
|
119,048
|
|
|
151,660
|
|
||
Total Deferred Credits and Other Liabilities
|
1,507,287
|
|
|
1,541,010
|
|
||
TOTAL LIABILITIES
|
5,157,430
|
|
|
5,243,093
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 230,034,586 Issued and Outstanding at March 31, 2017; 229,443,008 Issued and Outstanding at December 31, 2016
|
2,304
|
|
|
2,298
|
|
||
Capital in Excess of Par Value
|
2,467,996
|
|
|
2,460,864
|
|
||
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding
|
—
|
|
|
—
|
|
||
Retained Earnings
|
1,682,545
|
|
|
1,727,789
|
|
||
Accumulated Other Comprehensive Loss
|
(389,042
|
)
|
|
(392,556
|
)
|
||
Total CONSOL Energy Inc. Stockholders’ Equity
|
3,763,803
|
|
|
3,798,395
|
|
||
Noncontrolling Interest
|
142,536
|
|
|
142,493
|
|
||
TOTAL EQUITY
|
3,906,339
|
|
|
3,940,888
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
9,063,769
|
|
|
$
|
9,183,981
|
|
(Dollars in thousands)
|
Common
Stock
|
|
Capital in
Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total CONSOL Energy Inc.
Stockholders’
Equity
|
|
Non-
Controlling
Interest
|
|
Total
Equity
|
||||||||||||||
Balance at December 31, 2016
|
$
|
2,298
|
|
|
$
|
2,460,864
|
|
|
$
|
1,727,789
|
|
|
$
|
(392,556
|
)
|
|
$
|
3,798,395
|
|
|
$
|
142,493
|
|
|
$
|
3,940,888
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net (Loss) Income
|
—
|
|
|
—
|
|
|
(38,966
|
)
|
|
—
|
|
|
(38,966
|
)
|
|
5,464
|
|
|
(33,502
|
)
|
|||||||
Other Comprehensive Income (Loss) (Net of ($2,052) Tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,514
|
|
|
3,514
|
|
|
(12
|
)
|
|
3,502
|
|
|||||||
Comprehensive (Loss) Income
|
—
|
|
|
—
|
|
|
(38,966
|
)
|
|
3,514
|
|
|
(35,452
|
)
|
|
5,452
|
|
|
(30,000
|
)
|
|||||||
Issuance of Common Stock
|
6
|
|
|
488
|
|
|
—
|
|
|
—
|
|
|
494
|
|
|
—
|
|
|
494
|
|
|||||||
Treasury Stock Activity
|
—
|
|
|
—
|
|
|
(6,278
|
)
|
|
—
|
|
|
(6,278
|
)
|
|
—
|
|
|
(6,278
|
)
|
|||||||
Amortization of Stock-Based Compensation Awards
|
—
|
|
|
6,644
|
|
|
—
|
|
|
—
|
|
|
6,644
|
|
|
58
|
|
|
6,702
|
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,467
|
)
|
|
(5,467
|
)
|
|||||||
Balance at March 31, 2017
|
$
|
2,304
|
|
|
$
|
2,467,996
|
|
|
$
|
1,682,545
|
|
|
$
|
(389,042
|
)
|
|
$
|
3,763,803
|
|
|
$
|
142,536
|
|
|
$
|
3,906,339
|
|
(Dollars in thousands)
|
Three Months Ended
|
||||||
(Unaudited)
|
March 31,
|
||||||
Cash Flows from Operating Activities:
|
2017
|
|
2016
|
||||
Net Loss
|
$
|
(33,502
|
)
|
|
$
|
(96,458
|
)
|
Adjustments to Reconcile Net Loss to Net Cash Provided By Operating Activities:
|
|
|
|
||||
Net Loss from Discontinued Operations
|
—
|
|
|
53,167
|
|
||
Depreciation, Depletion and Amortization
|
148,753
|
|
|
154,988
|
|
||
Impairment of Exploration and Production Properties
|
137,865
|
|
|
—
|
|
||
Stock-Based Compensation
|
6,702
|
|
|
5,624
|
|
||
(Gain) Loss on Sale of Assets
|
(11,951
|
)
|
|
7,276
|
|
||
Gain on Debt Extinguishment
|
(822
|
)
|
|
—
|
|
||
Loss (Gain) on Commodity Derivative Instruments
|
22,463
|
|
|
(55,060
|
)
|
||
Net Cash (Paid) Received in Settlement of Commodity Derivative Instruments
|
(47,103
|
)
|
|
84,331
|
|
||
Deferred Income Taxes
|
(41,936
|
)
|
|
(23,582
|
)
|
||
Equity in Earnings of Affiliates
|
(12,330
|
)
|
|
(16,665
|
)
|
||
Return on Equity Investment
|
—
|
|
|
4,512
|
|
||
Changes in Operating Assets:
|
|
|
|
||||
Accounts and Notes Receivable
|
(27,908
|
)
|
|
(14,833
|
)
|
||
Inventories
|
(4,315
|
)
|
|
(18,458
|
)
|
||
Prepaid Expenses
|
870
|
|
|
18,980
|
|
||
Changes in Other Assets
|
936
|
|
|
(9,864
|
)
|
||
Changes in Operating Liabilities:
|
|
|
|
||||
Accounts Payable
|
4,016
|
|
|
(8,316
|
)
|
||
Accrued Interest
|
34,411
|
|
|
35,867
|
|
||
Other Operating Liabilities
|
28,151
|
|
|
1,379
|
|
||
Changes in Other Liabilities
|
(10,036
|
)
|
|
(3,313
|
)
|
||
Other
|
10,930
|
|
|
4,087
|
|
||
Net Cash Provided by Continuing Operating Activities
|
205,194
|
|
|
123,662
|
|
||
Net Cash (Used in) Provided by Discontinued Operating Activities
|
(75
|
)
|
|
6,290
|
|
||
Net Cash Provided by Operating Activities
|
205,119
|
|
|
129,952
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital Expenditures
|
(112,978
|
)
|
|
(77,656
|
)
|
||
Proceeds from Sales of Assets
|
19,427
|
|
|
8,453
|
|
||
Net Distributions from (Investments in) Equity Affiliates
|
5,909
|
|
|
(5,578
|
)
|
||
Net Cash Used in Continuing Investing Activities
|
(87,642
|
)
|
|
(74,781
|
)
|
||
Net Cash Provided by Discontinued Investing Activities
|
—
|
|
|
395,757
|
|
||
Net Cash (Used in) Provided by Investing Activities
|
(87,642
|
)
|
|
320,976
|
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Payments on Short-Term Borrowings
|
—
|
|
|
(100,500
|
)
|
||
Payments on Miscellaneous Borrowings
|
(2,942
|
)
|
|
(2,095
|
)
|
||
Payments on Long-Term Notes
|
(98,243
|
)
|
|
—
|
|
||
Net (Payments on) Proceeds from Revolver - CNX Coal Resources LP
|
(4,000
|
)
|
|
15,000
|
|
||
Distributions to Noncontrolling Interest
|
(5,467
|
)
|
|
(5,413
|
)
|
||
Dividends Paid
|
—
|
|
|
(2,294
|
)
|
||
Issuance of Common Stock
|
494
|
|
|
3
|
|
||
Treasury Stock Activity
|
(6,278
|
)
|
|
(1,510
|
)
|
||
Debt Repurchase and Financing Fees
|
(250
|
)
|
|
—
|
|
||
Net Cash Used in Continuing Financing Activities
|
(116,686
|
)
|
|
(96,809
|
)
|
||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
(47
|
)
|
||
Net Cash Used in Financing Activities
|
(116,686
|
)
|
|
(96,856
|
)
|
||
Net Increase in Cash and Cash Equivalents
|
791
|
|
|
354,072
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
60,475
|
|
|
72,574
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
61,266
|
|
|
$
|
426,646
|
|
|
For the Three Months Ended March 31,
|
||||||||
|
2017
|
|
2016
|
||||||
Anti-Dilutive Options
|
5,472,165
|
|
|
5,365,686
|
|
||||
Anti-Dilutive Restricted Stock Units
|
951,320
|
|
|
868,842
|
|
||||
Anti-Dilutive Performance Share Units
|
1,762,690
|
|
|
113,531
|
|
||||
Anti-Dilutive Performance Stock Options
|
802,804
|
|
|
802,804
|
|
||||
|
8,988,979
|
|
|
7,150,863
|
|
|
For the Three Months Ended March 31,
|
||||||||
|
2017
|
|
2016
|
||||||
Options
|
61,624
|
|
|
—
|
|
||||
Restricted Stock Units
|
334,040
|
|
|
484,680
|
|
||||
Performance Share Units
|
560,936
|
|
|
—
|
|
||||
|
956,600
|
|
|
484,680
|
|
|
For the Three Months Ended March 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
||||||||
Loss from Continuing Operations
|
$
|
(33,502
|
)
|
|
$
|
(43,291
|
)
|
||||
Less: Net Income Attributable to Non-Controlling Interest
|
5,464
|
|
|
1,114
|
|
||||||
Net Loss from Continuing Operations Attributable to CONSOL Energy Shareholders
|
$
|
(38,966
|
)
|
|
$
|
(44,405
|
)
|
||||
Loss from Discontinued Operations
|
—
|
|
|
(53,167
|
)
|
||||||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(38,966
|
)
|
|
$
|
(97,572
|
)
|
||||
|
|
|
|
||||||||
Denominator:
|
|
|
|
||||||||
Weighted-average shares of common stock outstanding
|
229,817,169
|
|
|
229,259,228
|
|
||||||
Effect of dilutive shares
|
—
|
|
|
—
|
|
||||||
Weighted-average diluted shares of common stock outstanding
|
229,817,169
|
|
|
229,259,228
|
|
||||||
Loss per Share:
|
|
|
|
||||||||
Basic (Continuing Operations)
|
$
|
(0.17
|
)
|
|
$
|
(0.19
|
)
|
||||
Basic (Discontinued Operations)
|
—
|
|
|
(0.24
|
)
|
||||||
Total Basic
|
$
|
(0.17
|
)
|
|
$
|
(0.43
|
)
|
||||
|
|
|
|
||||||||
Dilutive (Continuing Operations)
|
$
|
(0.17
|
)
|
|
$
|
(0.19
|
)
|
||||
Dilutive (Discontinued Operations)
|
—
|
|
|
(0.24
|
)
|
||||||
Total Dilutive
|
$
|
(0.17
|
)
|
|
$
|
(0.43
|
)
|
|
Postretirement Benefits
|
||||
Balance at December 31, 2016
|
$
|
(392,556
|
)
|
||
Amounts Reclassified from Accumulated Other Comprehensive Loss
|
3,502
|
|
|||
Add: Other Comprehensive Loss Attributable to Non-Controlling Interest
|
12
|
|
|||
Balance at March 31, 2017
|
$
|
(389,042
|
)
|
|
For the Three Months Ended March 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
Derivative Instruments (Note 12)
|
|
|
|
||||||||
Natural Gas Price Swaps and Options
|
$
|
—
|
|
|
$
|
(15,438
|
)
|
||||
Tax Expense
|
—
|
|
|
5,624
|
|
||||||
Net of Tax
|
$
|
—
|
|
|
$
|
(9,814
|
)
|
||||
Actuarially Determined Long-Term Liability Adjustments* (Note 4 and Note 5)
|
|
|
|
||||||||
Amortization of Prior Service Costs
|
$
|
(749
|
)
|
|
$
|
(148
|
)
|
||||
Recognized Net Actuarial Loss
|
6,303
|
|
|
5,511
|
|
||||||
Total
|
5,554
|
|
|
5,363
|
|
||||||
Tax Benefit
|
(2,052
|
)
|
|
(2,018
|
)
|
||||||
Net of Tax
|
$
|
3,502
|
|
|
$
|
3,345
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Coal Sales
|
$
|
—
|
|
|
$
|
76,519
|
|
Freight-Outside Coal
|
—
|
|
|
1,012
|
|
||
Miscellaneous Other Income
|
—
|
|
|
43
|
|
||
Loss on Sale of Assets
|
—
|
|
|
(38,364
|
)
|
||
Total Revenue and Other Income
|
$
|
—
|
|
|
$
|
39,210
|
|
Total Costs
|
—
|
|
|
88,066
|
|
||
Loss From Operations Before Income Taxes
|
$
|
—
|
|
|
$
|
(48,856
|
)
|
Income Tax Expense
|
—
|
|
|
4,311
|
|
||
Loss From Discontinued Operations, net
|
$
|
—
|
|
|
$
|
(53,167
|
)
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
Assets:
|
|
|
|
||||
Accounts Receivable - Trade
|
$
|
—
|
|
|
$
|
83
|
|
Total Current Assets
|
$
|
—
|
|
|
$
|
83
|
|
Total Assets of Discontinued Operations
|
$
|
—
|
|
|
$
|
83
|
|
Liabilities:
|
|
|
|
||||
Accounts Payable
|
$
|
—
|
|
|
$
|
36
|
|
Other Current Liabilities
|
5,892
|
|
|
6,014
|
|
||
Total Current Liabilities
|
$
|
5,892
|
|
|
$
|
6,050
|
|
Total Liabilities of Discontinued Operations
|
$
|
5,892
|
|
|
$
|
6,050
|
|
|
For the Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Equity in Earnings of Affiliates - CONE
|
$
|
11,938
|
|
|
$
|
14,351
|
|
Rental Income
|
8,842
|
|
|
9,196
|
|
||
Royalty Income - Non-Operated Coal
|
8,785
|
|
|
2,230
|
|
||
Purchased Coal Sales
|
3,541
|
|
|
—
|
|
||
Gathering Revenue
|
3,153
|
|
|
2,748
|
|
||
Interest Income
|
1,543
|
|
|
214
|
|
||
Right of Way Issuance
|
1,001
|
|
|
15,733
|
|
||
Equity in Earnings of Affiliates - Other
|
392
|
|
|
2,314
|
|
||
Other
|
1,501
|
|
|
1,345
|
|
||
Miscellaneous Other Income
|
$
|
40,696
|
|
|
$
|
48,131
|
|
|
Pension Benefits
|
|
Other Post-Employment Benefits
|
||||||||||||
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service Cost
|
$
|
846
|
|
|
$
|
482
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest Cost
|
6,428
|
|
|
6,841
|
|
|
5,986
|
|
|
6,060
|
|
||||
Expected Return on Plan Assets
|
(10,596
|
)
|
|
(11,869
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of Prior Service Credits
|
(148
|
)
|
|
(147
|
)
|
|
(601
|
)
|
|
—
|
|
||||
Recognized Net Actuarial Loss
|
2,351
|
|
|
2,116
|
|
|
5,778
|
|
|
4,792
|
|
||||
Net Periodic Benefit (Credit) Cost
|
$
|
(1,119
|
)
|
|
$
|
(2,577
|
)
|
|
$
|
11,163
|
|
|
$
|
10,852
|
|
|
CWP
|
|
Workers' Compensation
|
||||||||||||
|
For the Three Months Ended March 31,
|
|
For the Three Months Ended March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service Cost
|
$
|
1,129
|
|
|
$
|
1,204
|
|
|
$
|
1,463
|
|
|
$
|
1,904
|
|
Interest Cost
|
1,013
|
|
|
1,123
|
|
|
592
|
|
|
638
|
|
||||
Amortization of Actuarial Gain
|
(1,908
|
)
|
|
(1,383
|
)
|
|
(153
|
)
|
|
(101
|
)
|
||||
Administrative Fees
|
151
|
|
|
—
|
|
|
138
|
|
|
—
|
|
||||
State Administrative Fees and Insurance Bond Premiums
|
—
|
|
|
—
|
|
|
799
|
|
|
731
|
|
||||
Curtailment Gain
|
—
|
|
|
(1,307
|
)
|
|
—
|
|
|
—
|
|
||||
Net Periodic Benefit Cost (Credit)
|
$
|
385
|
|
|
$
|
(363
|
)
|
|
$
|
2,839
|
|
|
$
|
3,172
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
Coal
|
$
|
12,626
|
|
|
$
|
7,800
|
|
Supplies
|
56,992
|
|
|
57,661
|
|
||
Total Inventories
|
$
|
69,618
|
|
|
$
|
65,461
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
E&P Property, Plant and Equipment
|
|
|
|
||||
Intangible drilling cost
|
$
|
3,465,645
|
|
|
$
|
3,583,565
|
|
Proved gas properties
|
1,982,134
|
|
|
2,016,916
|
|
||
Unproved gas properties
|
1,045,437
|
|
|
1,116,282
|
|
||
Gas gathering equipment
|
1,127,614
|
|
|
1,138,299
|
|
||
Gas wells and related equipment
|
763,248
|
|
|
791,996
|
|
||
Other gas assets
|
189,481
|
|
|
190,406
|
|
||
Gas advance royalties
|
13,186
|
|
|
13,762
|
|
||
Total E&P Property, Plant and Equipment
|
$
|
8,586,745
|
|
|
$
|
8,851,226
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
3,126,778
|
|
|
3,106,296
|
|
||
Total E&P Property, Plant and Equipment - Net
|
$
|
5,459,967
|
|
|
$
|
5,744,930
|
|
|
|
|
|
||||
PA Mining Operations Property, Plant and Equipment
|
|
|
|
||||
Coal and other plant and equipment
|
$
|
2,318,308
|
|
|
$
|
2,307,668
|
|
Coal properties and surface lands
|
458,976
|
|
|
458,398
|
|
||
Airshafts
|
372,656
|
|
|
371,752
|
|
||
Mine development
|
326,152
|
|
|
326,152
|
|
||
Coal advance mining royalties
|
16,108
|
|
|
16,224
|
|
||
Leased coal lands
|
26,556
|
|
|
26,566
|
|
||
Total PA Mining Operations and Other Property, Plant and Equipment
|
$
|
3,518,756
|
|
|
$
|
3,506,760
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
1,810,108
|
|
|
1,768,712
|
|
||
Total PA Mining Operations and Other Property, Plant and Equipment - Net
|
$
|
1,708,648
|
|
|
$
|
1,738,048
|
|
|
|
|
|
||||
Other Property, Plant and Equipment
|
|
|
|
||||
Coal and other plant and equipment
|
531,692
|
|
|
532,919
|
|
||
Coal properties and surface lands
|
481,037
|
|
|
481,126
|
|
||
Airshafts
|
10,002
|
|
|
10,003
|
|
||
Mine development
|
17,988
|
|
|
17,988
|
|
||
Coal advance mining royalties
|
311,205
|
|
|
310,530
|
|
||
Leased coal lands
|
60,836
|
|
|
60,836
|
|
||
Total Other Property, Plant and Equipment
|
$
|
1,412,760
|
|
|
$
|
1,413,402
|
|
Less: Accumulated Depreciation, Depletion and Amortization
|
758,456
|
|
|
755,941
|
|
||
Total Other Property, Plant and Equipment - Net
|
$
|
654,304
|
|
|
$
|
657,461
|
|
|
|
|
|
||||
Total Company Property, Plant and Equipment - Continuing Operations
|
$
|
13,518,261
|
|
|
$
|
13,771,388
|
|
Less - Total Company Accumulated Depreciation, Depletion and Amortization
|
5,695,342
|
|
|
5,630,949
|
|
||
Total Company Property, Plant and Equipment - Held for Sale - Net
|
163,622
|
|
|
—
|
|
||
Total Property, Plant and Equipment of Continuing Operations - Net
|
$
|
7,986,541
|
|
|
$
|
8,140,439
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
Debt:
|
|
|
|
||||
Senior Notes due April 2022 at 5.875% (Principal of $1,750,044 and $1,850,000 plus Unamortized Premium of $4,266 and $4,731, respectively)
|
$
|
1,754,310
|
|
|
$
|
1,854,731
|
|
Senior Notes due April 2023 at 8.00% (Principal of $500,000 less Unamortized Discount of $5,430 and $5,656, respectively)
|
494,570
|
|
|
494,344
|
|
||
Revolving Credit Facility - CNX Coal Resources LP
|
197,000
|
|
|
201,000
|
|
||
MEDCO Revenue Bonds in Series due September 2025 at 5.75%
|
102,865
|
|
|
102,865
|
|
||
Senior Notes due April 2020 at 8.25%, Issued at Par Value
|
74,470
|
|
|
74,470
|
|
||
Senior Notes due March 2021 at 6.375%, Issued at Par Value
|
20,611
|
|
|
20,611
|
|
||
Advance Royalty Commitments (7.73% Weighted Average Interest Rate)
|
2,678
|
|
|
2,678
|
|
||
Other Long-Term Note Maturing in 2018 (Principal of $1,431 and $1,789 less Unamortized Discount of $78 and $117, respectively)
|
1,353
|
|
|
1,672
|
|
||
Less: Unamortized Debt Issuance Costs
|
25,499
|
|
|
27,699
|
|
||
|
2,622,358
|
|
|
2,724,672
|
|
||
Less: Amounts Due in One Year*
|
1,660
|
|
|
1,677
|
|
||
Long-Term Debt
|
$
|
2,620,698
|
|
|
$
|
2,722,995
|
|
|
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
|
$
|
84,086
|
|
|
$
|
64,783
|
|
|
$
|
19,303
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Environmental
|
998
|
|
|
398
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
248,238
|
|
|
247,266
|
|
|
972
|
|
|
—
|
|
|
—
|
|
|||||
Total Letters of Credit
|
333,322
|
|
|
312,447
|
|
|
20,875
|
|
|
—
|
|
|
—
|
|
|||||
Surety Bonds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee-Related
|
112,560
|
|
|
79,680
|
|
|
32,880
|
|
|
—
|
|
|
—
|
|
|||||
Environmental
|
516,349
|
|
|
475,312
|
|
|
41,037
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
20,179
|
|
|
19,275
|
|
|
903
|
|
|
1
|
|
|
—
|
|
|||||
Total Surety Bonds
|
649,088
|
|
|
574,267
|
|
|
74,820
|
|
|
1
|
|
|
—
|
|
|||||
Guarantees:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
41,554
|
|
|
10,737
|
|
|
17,067
|
|
|
12,821
|
|
|
929
|
|
|||||
Total Guarantees
|
41,554
|
|
|
10,737
|
|
|
17,067
|
|
|
12,821
|
|
|
929
|
|
|||||
Total Commitments
|
$
|
1,023,964
|
|
|
$
|
897,451
|
|
|
$
|
112,762
|
|
|
$
|
12,822
|
|
|
$
|
929
|
|
Obligations Due
|
Amount
|
||
Less than 1 year
|
$
|
204,580
|
|
1 - 3 years
|
280,593
|
|
|
3 - 5 years
|
243,595
|
|
|
More than 5 years
|
598,135
|
|
|
Total Purchase Obligations
|
$
|
1,326,903
|
|
|
March 31,
|
|
December 31,
|
|
Forecasted to
|
||
|
2017
|
|
2016
|
|
Settle Through
|
||
Natural Gas Commodity Swaps (Bcf)
|
819.1
|
|
744.7
|
|
|
2021
|
|
Natural Gas Basis Swaps (Bcf)
|
476.8
|
|
482.0
|
|
|
2021
|
|
Propane Commodity Swaps (Mbbls)
|
—
|
|
|
126.0
|
|
|
—
|
Asset Derivative Instruments
|
|
Liability Derivative Instruments
|
||||||||||||||
|
March 31,
|
|
December 31,
|
|
|
March 31,
|
|
December 31,
|
||||||||
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
||||||||
Commodity Swaps:
|
|
|
|
|
|
|
|
|
||||||||
Prepaid Expense
|
$
|
6,408
|
|
|
$
|
16
|
|
|
Other Accrued Liabilities
|
$
|
122,747
|
|
|
$
|
209,980
|
|
Other Assets
|
58,422
|
|
|
29,596
|
|
|
Other Liabilities
|
25,838
|
|
|
67,139
|
|
||||
Total Asset
|
$
|
64,830
|
|
|
$
|
29,612
|
|
|
Total Liability
|
$
|
148,585
|
|
|
$
|
277,119
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basis Only Swaps:
|
|
|
|
|
|
|
|
|
||||||||
Prepaid Expense
|
$
|
2,745
|
|
|
$
|
56,916
|
|
|
Other Accrued Liabilities
|
$
|
70,281
|
|
|
$
|
21,593
|
|
Other Assets
|
12,722
|
|
|
35,603
|
|
|
Other Liabilities
|
24,946
|
|
|
11,575
|
|
||||
Total Asset
|
$
|
15,467
|
|
|
$
|
92,519
|
|
|
Total Liability
|
$
|
95,227
|
|
|
$
|
33,168
|
|
|
For the Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Cash (Paid) Received in Settlement of Commodity Derivative Instruments:
|
|
|
|
||||
Commodity Swaps:
|
|
|
|
||||
Natural Gas
|
$
|
(24,607
|
)
|
|
$
|
82,146
|
|
Propane
|
(1,216
|
)
|
|
—
|
|
||
Natural Gas Basis Swaps
|
(21,280
|
)
|
|
2,185
|
|
||
Total Cash (Paid) Received in Settlement of Commodity Derivative Instruments
|
(47,103
|
)
|
|
84,331
|
|
||
|
|
|
|
||||
Unrealized Gain (Loss) on Commodity Derivative Instruments:
|
|
|
|
||||
Commodity Swaps:
|
|
|
|
||||
Natural Gas
|
162,604
|
|
|
(38,023
|
)
|
||
Propane
|
1,147
|
|
|
(265
|
)
|
||
Natural Gas Basis Swaps
|
(139,111
|
)
|
|
(6,421
|
)
|
||
Reclassified from Accumulated OCI
|
—
|
|
|
15,438
|
|
||
Total Unrealized Gain (Loss) on Commodity Derivative Instruments
|
24,640
|
|
|
(29,271
|
)
|
||
|
|
|
|
||||
(Loss) Gain on Commodity Derivative Instruments:
|
|
|
|
||||
Commodity Swaps:
|
|
|
|
||||
Natural Gas
|
137,997
|
|
|
44,123
|
|
||
Propane
|
(69
|
)
|
|
(265
|
)
|
||
Natural Gas Basis Swaps
|
(160,391
|
)
|
|
(4,236
|
)
|
||
Reclassified from Accumulated OCI
|
—
|
|
|
15,438
|
|
||
Total (Loss) Gain on Commodity Derivative Instruments
|
$
|
(22,463
|
)
|
|
$
|
55,060
|
|
|
For the Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Beginning Balance – Accumulated OCI
|
$
|
—
|
|
|
$
|
43,470
|
|
Less: Gain Reclassified from Accumulated OCI (Net of tax: $5,624)
|
—
|
|
|
(9,814
|
)
|
||
Ending Balance – Accumulated OCI
|
$
|
—
|
|
|
$
|
33,656
|
|
|
Fair Value Measurements at March 31, 2017
|
|
Fair Value Measurements at December 31, 2016
|
||||||||||||||||||||
Description
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||||
Gas Derivatives
|
$
|
—
|
|
|
$
|
(163,515
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(188,156
|
)
|
|
$
|
—
|
|
Murray Energy Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,285
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,362
|
)
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Cash and Cash Equivalents
|
$
|
61,266
|
|
|
$
|
61,266
|
|
|
$
|
60,475
|
|
|
$
|
60,475
|
|
Long-Term Debt
|
$
|
2,647,857
|
|
|
$
|
2,628,205
|
|
|
$
|
2,752,371
|
|
|
$
|
2,717,582
|
|
|
Marcellus
Shale
|
|
Utica Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Mining Operations
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||
Sales—Outside
|
$
|
189,175
|
|
|
$
|
53,668
|
|
|
$
|
58,626
|
|
|
$
|
16,294
|
|
|
$
|
317,763
|
|
|
$
|
316,448
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
634,211
|
|
|
(Loss) Gain on Commodity Derivative Instruments
|
(32,665
|
)
|
|
(2,688
|
)
|
|
(9,198
|
)
|
|
22,088
|
|
|
(22,463
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,463
|
)
|
|
|||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,053
|
|
|
—
|
|
|
13,053
|
|
|
|||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
8,979
|
|
|
8,979
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,979
|
|
|
|||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,282
|
|
|
—
|
|
|
—
|
|
|
12,282
|
|
|
|||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,574
|
|
|
(4,574
|
)
|
|
—
|
|
|
|||||||||
Total Sales and Freight
|
$
|
156,510
|
|
|
$
|
50,980
|
|
|
$
|
49,428
|
|
|
$
|
47,361
|
|
|
$
|
304,279
|
|
|
$
|
328,730
|
|
|
$
|
17,627
|
|
|
$
|
(4,574
|
)
|
|
$
|
646,062
|
|
|
Earnings (Loss) From Continuing Operations Before Income Tax
|
$
|
29,969
|
|
|
$
|
17,807
|
|
|
$
|
3,608
|
|
|
$
|
(144,886
|
)
|
|
$
|
(93,502
|
)
|
|
$
|
61,015
|
|
|
$
|
(50,230
|
)
|
|
$
|
(4,574
|
)
|
|
$
|
(87,291
|
)
|
(A)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,074,299
|
|
|
$
|
1,955,172
|
|
|
$
|
1,029,724
|
|
|
$
|
4,574
|
|
|
$
|
9,063,769
|
|
(B)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
95,348
|
|
|
$
|
42,301
|
|
|
$
|
11,104
|
|
|
$
|
—
|
|
|
$
|
148,753
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
100,793
|
|
|
$
|
8,118
|
|
|
$
|
4,067
|
|
|
$
|
—
|
|
|
$
|
112,978
|
|
|
|
Marcellus
Shale
|
|
Utica
Shale
|
|
Coalbed Methane
|
|
Other
Gas
|
|
Total
E&P
|
|
PA Mining Operations
|
|
Other
|
|
Adjustments and
Eliminations
|
|
Consolidated
|
|
||||||||||||||||||
Sales—Outside
|
$
|
96,138
|
|
|
$
|
34,261
|
|
|
$
|
41,920
|
|
|
$
|
8,936
|
|
|
$
|
181,255
|
|
|
$
|
226,164
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
407,419
|
|
|
Gain (Loss) on Commodity Derivative Instruments
|
48,564
|
|
|
10,009
|
|
|
19,121
|
|
|
(22,634
|
)
|
|
55,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,060
|
|
|
|||||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,766
|
|
|
—
|
|
|
7,766
|
|
|
|||||||||
Sales—Purchased Gas
|
—
|
|
|
—
|
|
|
—
|
|
|
8,618
|
|
|
8,618
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,618
|
|
|
|||||||||
Freight—Outside
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,110
|
|
|
—
|
|
|
—
|
|
|
13,110
|
|
|
|||||||||
Intersegment Transfers
|
—
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
—
|
|
|
(424
|
)
|
|
—
|
|
|
|||||||||
Total Sales and Freight
|
$
|
144,702
|
|
|
$
|
44,270
|
|
|
$
|
61,465
|
|
|
$
|
(5,080
|
)
|
|
$
|
245,357
|
|
|
$
|
239,274
|
|
|
$
|
7,766
|
|
|
$
|
(424
|
)
|
|
$
|
491,973
|
|
|
Earnings (Loss) From Continuing Operations Before Income Tax
|
$
|
19,482
|
|
|
$
|
3,256
|
|
|
$
|
12,606
|
|
|
$
|
(58,223
|
)
|
|
$
|
(22,879
|
)
|
|
$
|
23,074
|
|
|
$
|
(66,862
|
)
|
|
$
|
(424
|
)
|
|
$
|
(67,091
|
)
|
(C)
|
Segment Assets
|
|
|
|
|
|
|
|
|
$
|
6,814,568
|
|
|
$
|
2,078,559
|
|
|
$
|
1,295,011
|
|
|
$
|
527,736
|
|
|
$
|
10,715,874
|
|
(D)
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
|
$
|
105,715
|
|
|
$
|
41,266
|
|
|
$
|
8,007
|
|
|
$
|
—
|
|
|
$
|
154,988
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
|
$
|
62,862
|
|
|
$
|
12,904
|
|
|
$
|
1,890
|
|
|
$
|
—
|
|
|
$
|
77,656
|
|
|
(C)
|
Includes equity in earnings of unconsolidated affiliates of
$15,598
and
$1,067
for Total E&P and Other, respectively.
|
|
For the Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Segment (Loss) Income Before Income Taxes for reportable business segments
|
$
|
(32,487
|
)
|
|
$
|
195
|
|
Segment Loss Before Income Taxes for all other business segments
|
(6,619
|
)
|
|
(16,997
|
)
|
||
Interest expense
|
(44,433
|
)
|
|
(49,865
|
)
|
||
Eliminations
|
(4,574
|
)
|
|
(424
|
)
|
||
Gain on debt extinguishment
|
822
|
|
|
—
|
|
||
Loss From Continuing Operations Before Income Tax
|
$
|
(87,291
|
)
|
|
$
|
(67,091
|
)
|
|
March 31,
|
||||||
2017
|
|
2016
|
|||||
Segment assets for total reportable business segments
|
$
|
8,029,471
|
|
|
$
|
8,893,127
|
|
Segment assets for all other business segments
|
810,939
|
|
|
876,286
|
|
||
Items excluded from segment assets:
|
|
|
|
||||
Cash and other investments
|
54,630
|
|
|
416,854
|
|
||
Recoverable income taxes
|
124,555
|
|
|
1,871
|
|
||
Deferred tax assets
|
44,174
|
|
|
—
|
|
||
Discontinued Operations
|
—
|
|
|
527,736
|
|
||
Total Consolidated Assets
|
$
|
9,063,769
|
|
|
$
|
10,715,874
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC Non-Guarantor
|
|
Elimination
|
|
Consolidated
|
||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
317,763
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
317,763
|
|
Loss on Commodity Derivative Instruments
|
—
|
|
|
(22,463
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,463
|
)
|
||||||
Coal Sales
|
—
|
|
|
—
|
|
|
237,336
|
|
|
79,112
|
|
|
—
|
|
|
316,448
|
|
||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
13,053
|
|
|
—
|
|
|
—
|
|
|
13,053
|
|
||||||
Purchased Gas Sales
|
—
|
|
|
8,979
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,979
|
|
||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
9,212
|
|
|
3,070
|
|
|
—
|
|
|
12,282
|
|
||||||
Miscellaneous Other Income
|
(8,486
|
)
|
|
15,842
|
|
|
23,753
|
|
|
1,101
|
|
|
8,486
|
|
|
40,696
|
|
||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
3,606
|
|
|
8,348
|
|
|
(3
|
)
|
|
—
|
|
|
11,951
|
|
||||||
Total Revenue and Other Income
|
(8,486
|
)
|
|
323,727
|
|
|
291,702
|
|
|
83,280
|
|
|
8,486
|
|
|
698,709
|
|
||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease Operating Expense
|
—
|
|
|
21,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,633
|
|
||||||
Transportation, Gathering and Compression
|
—
|
|
|
94,332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,332
|
|
||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
9,329
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,329
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
95,348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95,348
|
|
||||||
Exploration and Production Related Other Costs
|
—
|
|
|
9,786
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,786
|
|
||||||
Purchased Gas Costs
|
—
|
|
|
8,895
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,895
|
|
||||||
Other Corporate Expenses
|
—
|
|
|
17,930
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,930
|
|
||||||
Impairment of Exploration and Production Properties
|
—
|
|
|
137,865
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137,865
|
|
||||||
Selling, General, and Administrative Costs
|
—
|
|
|
21,490
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,490
|
|
||||||
Total Exploration and Production Costs
|
—
|
|
|
416,608
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
416,608
|
|
||||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and Other Costs
|
—
|
|
|
—
|
|
|
149,932
|
|
|
49,883
|
|
|
—
|
|
|
199,815
|
|
||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
31,780
|
|
|
10,521
|
|
|
—
|
|
|
42,301
|
|
||||||
Freight Expense
|
—
|
|
|
—
|
|
|
9,212
|
|
|
3,070
|
|
|
—
|
|
|
12,282
|
|
||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
11,585
|
|
|
3,283
|
|
|
—
|
|
|
14,868
|
|
||||||
Total PA Mining Operations Costs
|
—
|
|
|
—
|
|
|
202,509
|
|
|
66,757
|
|
|
—
|
|
|
269,266
|
|
||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Miscellaneous Operating Expense
|
10,278
|
|
|
—
|
|
|
32,922
|
|
|
—
|
|
|
—
|
|
|
43,200
|
|
||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
2,211
|
|
|
—
|
|
|
—
|
|
|
2,211
|
|
||||||
Depreciation, Depletion and Amortization
|
1
|
|
|
—
|
|
|
11,103
|
|
|
—
|
|
|
—
|
|
|
11,104
|
|
||||||
Gain on Debt Extinguishment
|
(822
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(822
|
)
|
||||||
Interest Expense
|
39,570
|
|
|
621
|
|
|
1,785
|
|
|
2,457
|
|
|
—
|
|
|
44,433
|
|
||||||
Total Other Costs
|
49,027
|
|
|
621
|
|
|
48,021
|
|
|
2,457
|
|
|
—
|
|
|
100,126
|
|
||||||
Total Costs And Expenses
|
49,027
|
|
|
417,229
|
|
|
250,530
|
|
|
69,214
|
|
|
—
|
|
|
786,000
|
|
||||||
(Loss) Earnings Before Income Tax
|
(57,513
|
)
|
|
(93,502
|
)
|
|
41,172
|
|
|
14,066
|
|
|
8,486
|
|
|
(87,291
|
)
|
||||||
Income Tax (Benefit) Expense
|
(18,547
|
)
|
|
(37,158
|
)
|
|
1,916
|
|
|
—
|
|
|
—
|
|
|
(53,789
|
)
|
||||||
Income (Loss) From Continuing Operations
|
(38,966
|
)
|
|
(56,344
|
)
|
|
39,256
|
|
|
14,066
|
|
|
8,486
|
|
|
(33,502
|
)
|
||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,464
|
|
|
5,464
|
|
||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders
|
$
|
(38,966
|
)
|
|
$
|
(56,344
|
)
|
|
$
|
39,256
|
|
|
$
|
14,066
|
|
|
$
|
3,022
|
|
|
$
|
(38,966
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC
Non-Guarantor |
|
Other Subsidiary
Non-Guarantors |
|
Elimination
|
|
Consolidated
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and Cash Equivalents
|
$
|
53,786
|
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
6,534
|
|
|
$
|
861
|
|
|
$
|
—
|
|
|
$
|
61,266
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trade
|
—
|
|
|
111,679
|
|
|
78,622
|
|
|
25,028
|
|
|
—
|
|
|
—
|
|
|
215,329
|
|
|||||||
Other Receivables
|
46,992
|
|
|
39,475
|
|
|
13,215
|
|
|
1,267
|
|
|
—
|
|
|
—
|
|
|
100,949
|
|
|||||||
Inventories
|
—
|
|
|
14,551
|
|
|
42,351
|
|
|
12,716
|
|
|
—
|
|
|
—
|
|
|
69,618
|
|
|||||||
Recoverable Income Taxes
|
171,857
|
|
|
(47,302
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124,555
|
|
|||||||
Prepaid Expenses
|
12,879
|
|
|
12,502
|
|
|
15,600
|
|
|
3,517
|
|
|
—
|
|
|
—
|
|
|
44,498
|
|
|||||||
Total Current Assets
|
285,514
|
|
|
130,990
|
|
|
149,788
|
|
|
49,062
|
|
|
861
|
|
|
—
|
|
|
616,215
|
|
|||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property, Plant and Equipment
|
115,021
|
|
|
8,591,319
|
|
|
3,932,232
|
|
|
879,689
|
|
|
—
|
|
|
—
|
|
|
13,518,261
|
|
|||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
85,851
|
|
|
3,126,778
|
|
|
2,030,186
|
|
|
452,527
|
|
|
—
|
|
|
—
|
|
|
5,695,342
|
|
|||||||
Property, Plant and Equipment of Assets Held for Sale, Net
|
—
|
|
|
163,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163,622
|
|
|||||||
Total Property, Plant and Equipment-Net
|
29,170
|
|
|
5,628,163
|
|
|
1,902,046
|
|
|
427,162
|
|
|
—
|
|
|
—
|
|
|
7,986,541
|
|
|||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deferred Income Taxes
|
40,354
|
|
|
3,820
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,174
|
|
|||||||
Investment in Affiliates
|
7,514,120
|
|
|
194,607
|
|
|
35,852
|
|
|
—
|
|
|
—
|
|
|
(7,547,194
|
)
|
|
197,385
|
|
|||||||
Other
|
19,206
|
|
|
73,237
|
|
|
107,670
|
|
|
19,341
|
|
|
—
|
|
|
—
|
|
|
219,454
|
|
|||||||
Total Other Assets
|
7,573,680
|
|
|
271,664
|
|
|
143,522
|
|
|
19,341
|
|
|
—
|
|
|
(7,547,194
|
)
|
|
461,013
|
|
|||||||
Total Assets
|
$
|
7,888,364
|
|
|
$
|
6,030,817
|
|
|
$
|
2,195,356
|
|
|
$
|
495,565
|
|
|
$
|
861
|
|
|
$
|
(7,547,194
|
)
|
|
$
|
9,063,769
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts Payable
|
$
|
15,629
|
|
|
$
|
174,002
|
|
|
$
|
54,508
|
|
|
$
|
15,221
|
|
|
$
|
—
|
|
|
$
|
11,379
|
|
|
$
|
270,739
|
|
Accounts Payable (Recoverable)-Related Parties
|
1,556,254
|
|
|
980,682
|
|
|
(2,504,736
|
)
|
|
1,764
|
|
|
(22,585
|
)
|
|
(11,379
|
)
|
|
—
|
|
|||||||
Current Portion of Long-Term Debt
|
1,511
|
|
|
6,452
|
|
|
3,797
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
11,851
|
|
|||||||
Other Accrued Liabilities
|
103,235
|
|
|
305,012
|
|
|
253,750
|
|
|
42,370
|
|
|
—
|
|
|
—
|
|
|
704,367
|
|
|||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,892
|
|
|
—
|
|
|
5,892
|
|
|||||||
Total Current Liabilities
|
1,676,629
|
|
|
1,466,148
|
|
|
(2,192,681
|
)
|
|
59,446
|
|
|
(16,693
|
)
|
|
—
|
|
|
992,849
|
|
|||||||
Long-Term Debt:
|
2,322,906
|
|
|
25,265
|
|
|
114,925
|
|
|
194,198
|
|
|
—
|
|
|
—
|
|
|
2,657,294
|
|
|||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
656,890
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
656,890
|
|
|||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
105,456
|
|
|
2,336
|
|
|
—
|
|
|
—
|
|
|
107,792
|
|
|||||||
Mine Closing
|
—
|
|
|
—
|
|
|
214,667
|
|
|
9,388
|
|
|
—
|
|
|
—
|
|
|
224,055
|
|
|||||||
Gas Well Closing
|
—
|
|
|
196,473
|
|
|
28,013
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
224,588
|
|
|||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
63,393
|
|
|
3,036
|
|
|
—
|
|
|
—
|
|
|
66,429
|
|
|||||||
Salary Retirement
|
108,485
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108,485
|
|
|||||||
Other
|
16,541
|
|
|
89,783
|
|
|
12,271
|
|
|
453
|
|
|
—
|
|
|
—
|
|
|
119,048
|
|
|||||||
Total Deferred Credits and Other Liabilities
|
125,026
|
|
|
286,256
|
|
|
1,080,690
|
|
|
15,315
|
|
|
—
|
|
|
—
|
|
|
1,507,287
|
|
|||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
3,763,803
|
|
|
4,253,148
|
|
|
3,192,422
|
|
|
226,606
|
|
|
17,554
|
|
|
(7,689,730
|
)
|
|
3,763,803
|
|
|||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,536
|
|
|
142,536
|
|
|||||||
Total Liabilities and Equity
|
$
|
7,888,364
|
|
|
$
|
6,030,817
|
|
|
$
|
2,195,356
|
|
|
$
|
495,565
|
|
|
$
|
861
|
|
|
$
|
(7,547,194
|
)
|
|
$
|
9,063,769
|
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC
Non-Guarantor |
|
Other
Subsidiary
Non-Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Revenues and Other Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
—
|
|
|
$
|
181,680
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(425
|
)
|
|
$
|
181,255
|
|
Gain on Commodity Derivative Instruments
|
—
|
|
|
55,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,060
|
|
|||||||
Coal Sales
|
—
|
|
|
—
|
|
|
169,623
|
|
|
56,541
|
|
|
—
|
|
|
—
|
|
|
226,164
|
|
|||||||
Other Outside Sales
|
—
|
|
|
—
|
|
|
7,766
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,766
|
|
|||||||
Purchased Gas Sales
|
—
|
|
|
8,618
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,618
|
|
|||||||
Freight-Outside Coal
|
—
|
|
|
—
|
|
|
9,841
|
|
|
3,269
|
|
|
—
|
|
|
—
|
|
|
13,110
|
|
|||||||
Miscellaneous Other Income
|
(66,640
|
)
|
|
30,161
|
|
|
17,969
|
|
|
1
|
|
|
—
|
|
|
66,640
|
|
|
48,131
|
|
|||||||
Loss on Sale of Assets
|
—
|
|
|
(7,143
|
)
|
|
(120
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(7,276
|
)
|
|||||||
Total Revenue and Other Income
|
(66,640
|
)
|
|
268,376
|
|
|
205,079
|
|
|
59,798
|
|
|
—
|
|
|
66,215
|
|
|
532,828
|
|
|||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exploration and Production Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease Operating Expense
|
—
|
|
|
27,739
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,739
|
|
|||||||
Transportation, Gathering and Compression
|
—
|
|
|
93,974
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,974
|
|
|||||||
Production, Ad Valorem, and Other Fees
|
—
|
|
|
8,303
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,303
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
105,715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105,715
|
|
|||||||
Exploration and Production Related Other Costs
|
—
|
|
|
1,747
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,747
|
|
|||||||
Purchased Gas Costs
|
—
|
|
|
7,868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,868
|
|
|||||||
Other Corporate Expenses
|
—
|
|
|
22,798
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,798
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
22,458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,458
|
|
|||||||
Total Exploration and Production Costs
|
—
|
|
|
290,602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290,602
|
|
|||||||
PA Mining Operations Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating and Other Costs
|
—
|
|
|
—
|
|
|
115,611
|
|
|
38,490
|
|
|
—
|
|
|
—
|
|
|
154,101
|
|
|||||||
Depreciation, Depletion and Amortization
|
—
|
|
|
—
|
|
|
30,949
|
|
|
10,317
|
|
|
—
|
|
|
—
|
|
|
41,266
|
|
|||||||
Freight Expense
|
—
|
|
|
—
|
|
|
9,841
|
|
|
3,269
|
|
|
—
|
|
|
—
|
|
|
13,110
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
3,848
|
|
|
1,928
|
|
|
—
|
|
|
—
|
|
|
5,776
|
|
|||||||
Total PA Mining Operations Costs
|
—
|
|
|
—
|
|
|
160,249
|
|
|
54,004
|
|
|
—
|
|
|
—
|
|
|
214,253
|
|
|||||||
Other Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Miscellaneous Operating Expense
|
3,720
|
|
|
—
|
|
|
31,597
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
35,339
|
|
|||||||
Selling, General, and Administrative Costs
|
—
|
|
|
—
|
|
|
1,853
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,853
|
|
|||||||
Depreciation, Depletion and Amortization
|
153
|
|
|
—
|
|
|
7,854
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,007
|
|
|||||||
Interest Expense
|
45,880
|
|
|
653
|
|
|
1,354
|
|
|
1,978
|
|
|
—
|
|
|
—
|
|
|
49,865
|
|
|||||||
Total Other Costs
|
49,753
|
|
|
653
|
|
|
42,658
|
|
|
1,978
|
|
|
22
|
|
|
—
|
|
|
95,064
|
|
|||||||
Total Costs And Expenses
|
49,753
|
|
|
291,255
|
|
|
202,907
|
|
|
55,982
|
|
|
22
|
|
|
—
|
|
|
599,919
|
|
|||||||
(Loss) Earnings From Continuing Operations Before Income Tax
|
(116,393
|
)
|
|
(22,879
|
)
|
|
2,172
|
|
|
3,816
|
|
|
(22
|
)
|
|
66,215
|
|
|
(67,091
|
)
|
|||||||
Income Tax (Benefit) Expense
|
(18,821
|
)
|
|
(9,355
|
)
|
|
4,384
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(23,800
|
)
|
|||||||
(Loss) Income From Continuing Operations
|
(97,572
|
)
|
|
(13,524
|
)
|
|
(2,212
|
)
|
|
3,816
|
|
|
(14
|
)
|
|
66,215
|
|
|
(43,291
|
)
|
|||||||
Loss From Discontinued Operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,167
|
)
|
|
—
|
|
|
(53,167
|
)
|
|||||||
Net (Loss) Income
|
(97,572
|
)
|
|
(13,524
|
)
|
|
(2,212
|
)
|
|
3,816
|
|
|
(53,181
|
)
|
|
66,215
|
|
|
(96,458
|
)
|
|||||||
Less: Net Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,114
|
|
|
1,114
|
|
|||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders
|
$
|
(97,572
|
)
|
|
$
|
(13,524
|
)
|
|
$
|
(2,212
|
)
|
|
$
|
3,816
|
|
|
$
|
(53,181
|
)
|
|
$
|
65,101
|
|
|
$
|
(97,572
|
)
|
|
Parent
Issuer
|
|
CNX Gas
Guarantor
|
|
Other
Subsidiary
Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary
Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and Cash Equivalents
|
$
|
49,722
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
9,785
|
|
|
$
|
885
|
|
|
$
|
—
|
|
|
$
|
60,475
|
|
Accounts and Notes Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trade
|
—
|
|
|
124,509
|
|
|
72,295
|
|
|
23,418
|
|
|
—
|
|
|
—
|
|
|
220,222
|
|
|||||||
Other Receivables
|
20,097
|
|
|
34,773
|
|
|
14,516
|
|
|
515
|
|
|
—
|
|
|
—
|
|
|
69,901
|
|
|||||||
Inventories
|
—
|
|
|
15,301
|
|
|
38,669
|
|
|
11,491
|
|
|
—
|
|
|
—
|
|
|
65,461
|
|
|||||||
Recoverable Income Taxes
|
175,877
|
|
|
(59,026
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116,851
|
|
|||||||
Prepaid Expenses
|
12,828
|
|
|
60,500
|
|
|
16,306
|
|
|
3,512
|
|
|
—
|
|
|
—
|
|
|
93,146
|
|
|||||||
Current Assets of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|||||||
Total Current Assets
|
258,524
|
|
|
176,140
|
|
|
141,786
|
|
|
48,721
|
|
|
968
|
|
|
—
|
|
|
626,139
|
|
|||||||
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property, Plant and Equipment
|
114,611
|
|
|
8,851,226
|
|
|
3,928,861
|
|
|
876,690
|
|
|
—
|
|
|
—
|
|
|
13,771,388
|
|
|||||||
Less-Accumulated Depreciation, Depletion and Amortization
|
84,788
|
|
|
3,106,296
|
|
|
1,997,687
|
|
|
442,178
|
|
|
—
|
|
|
—
|
|
|
5,630,949
|
|
|||||||
Total Property, Plant and Equipment-Net
|
29,823
|
|
|
5,744,930
|
|
|
1,931,174
|
|
|
434,512
|
|
|
—
|
|
|
—
|
|
|
8,140,439
|
|
|||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deferred Income Taxes
|
25,904
|
|
|
(21,614
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,290
|
|
|||||||
Investment in Affiliates
|
7,974,260
|
|
|
188,376
|
|
|
27,269
|
|
|
—
|
|
|
—
|
|
|
(7,998,941
|
)
|
|
190,964
|
|
|||||||
Other
|
19,960
|
|
|
67,096
|
|
|
114,030
|
|
|
21,063
|
|
|
—
|
|
|
—
|
|
|
222,149
|
|
|||||||
Total Other Assets
|
8,020,124
|
|
|
233,858
|
|
|
141,299
|
|
|
21,063
|
|
|
—
|
|
|
(7,998,941
|
)
|
|
417,403
|
|
|||||||
Total Assets
|
$
|
8,308,471
|
|
|
$
|
6,154,928
|
|
|
$
|
2,214,259
|
|
|
$
|
504,296
|
|
|
$
|
968
|
|
|
$
|
(7,998,941
|
)
|
|
$
|
9,183,981
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts Payable
|
$
|
48,666
|
|
|
$
|
127,309
|
|
|
$
|
36,039
|
|
|
$
|
18,797
|
|
|
$
|
—
|
|
|
$
|
10,805
|
|
|
$
|
241,616
|
|
Accounts Payable (Recoverable)-Related Parties
|
1,832,908
|
|
|
1,034,138
|
|
|
(2,648,416
|
)
|
|
1,666
|
|
|
(209,491
|
)
|
|
(10,805
|
)
|
|
—
|
|
|||||||
Current Portion of Long-Term Debt
|
1,533
|
|
|
6,369
|
|
|
4,010
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
12,000
|
|
|||||||
Other Accrued Liabilities
|
75,039
|
|
|
337,374
|
|
|
223,705
|
|
|
44,230
|
|
|
—
|
|
|
—
|
|
|
680,348
|
|
|||||||
Current Liabilities of Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,050
|
|
|
—
|
|
|
6,050
|
|
|||||||
Total Current Liabilities
|
1,958,146
|
|
|
1,505,190
|
|
|
(2,384,662
|
)
|
|
64,781
|
|
|
(203,441
|
)
|
|
—
|
|
|
940,014
|
|
|||||||
Long-Term Debt:
|
2,421,511
|
|
|
26,884
|
|
|
115,685
|
|
|
197,989
|
|
|
—
|
|
|
—
|
|
|
2,762,069
|
|
|||||||
Deferred Credits and Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Postretirement Benefits Other Than Pensions
|
—
|
|
|
—
|
|
|
659,474
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
659,474
|
|
|||||||
Pneumoconiosis Benefits
|
—
|
|
|
—
|
|
|
106,016
|
|
|
2,057
|
|
|
—
|
|
|
—
|
|
|
108,073
|
|
|||||||
Mine Closing
|
—
|
|
|
—
|
|
|
209,384
|
|
|
9,247
|
|
|
—
|
|
|
—
|
|
|
218,631
|
|
|||||||
Gas Well Closing
|
—
|
|
|
195,704
|
|
|
27,549
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
223,352
|
|
|||||||
Workers’ Compensation
|
—
|
|
|
—
|
|
|
64,187
|
|
|
3,090
|
|
|
—
|
|
|
—
|
|
|
67,277
|
|
|||||||
Salary Retirement
|
112,543
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112,543
|
|
|||||||
Other
|
17,876
|
|
|
117,658
|
|
|
15,663
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
151,660
|
|
|||||||
Total Deferred Credits and Other Liabilities
|
130,419
|
|
|
313,362
|
|
|
1,082,273
|
|
|
14,956
|
|
|
—
|
|
|
—
|
|
|
1,541,010
|
|
|||||||
Total CONSOL Energy Inc. Stockholders’ Equity
|
3,798,395
|
|
|
4,309,492
|
|
|
3,400,963
|
|
|
226,570
|
|
|
204,409
|
|
|
(8,141,434
|
)
|
|
3,798,395
|
|
|||||||
Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,493
|
|
|
142,493
|
|
|||||||
Total Liabilities and Equity
|
$
|
8,308,471
|
|
|
$
|
6,154,928
|
|
|
$
|
2,214,259
|
|
|
$
|
504,296
|
|
|
$
|
968
|
|
|
$
|
(7,998,941
|
)
|
|
$
|
9,183,981
|
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-Guarantor
|
|
Other
Subsidiary Non-Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
109,039
|
|
|
$
|
87,898
|
|
|
$
|
(873
|
)
|
|
$
|
17,662
|
|
|
$
|
51
|
|
|
$
|
(8,583
|
)
|
|
$
|
205,194
|
|
Net Cash Used in Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
|||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
109,039
|
|
|
$
|
87,898
|
|
|
$
|
(873
|
)
|
|
$
|
17,662
|
|
|
$
|
(24
|
)
|
|
$
|
(8,583
|
)
|
|
$
|
205,119
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Expenditures
|
$
|
(1,087
|
)
|
|
$
|
(100,793
|
)
|
|
$
|
(9,068
|
)
|
|
$
|
(2,030
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(112,978
|
)
|
Proceeds From Sales of Assets
|
—
|
|
|
8,518
|
|
|
10,909
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,427
|
|
|||||||
Net Distributions from Equity Affiliates
|
—
|
|
|
5,909
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,909
|
|
|||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
(1,087
|
)
|
|
$
|
(86,366
|
)
|
|
$
|
1,841
|
|
|
$
|
(2,030
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(87,642
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Payments on Miscellaneous Borrowings
|
$
|
(418
|
)
|
|
$
|
(1,530
|
)
|
|
$
|
(968
|
)
|
|
$
|
(26
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,942
|
)
|
Payments on Long-Term Borrowings
|
(98,243
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(98,243
|
)
|
|||||||
Net Payments on Revolver - CNX Coal Resources LP
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,000
|
)
|
|
—
|
|
|
—
|
|
|
(4,000
|
)
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,050
|
)
|
|
—
|
|
|
8,583
|
|
|
(5,467
|
)
|
|||||||
Issuance of Common Stock
|
494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
494
|
|
|||||||
Treasury Stock Activity
|
(5,471
|
)
|
|
—
|
|
|
—
|
|
|
(807
|
)
|
|
|
|
|
|
|
|
(6,278
|
)
|
|||||||
Debt Repurchase and Financing Fees
|
(250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(103,888
|
)
|
|
$
|
(1,530
|
)
|
|
$
|
(968
|
)
|
|
$
|
(18,883
|
)
|
|
$
|
—
|
|
|
$
|
8,583
|
|
|
$
|
(116,686
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net Cash Provided by (Used in) Continuing Operations
|
$
|
456,851
|
|
|
$
|
58,594
|
|
|
$
|
13,434
|
|
|
$
|
3,511
|
|
|
$
|
(401,447
|
)
|
|
$
|
(7,281
|
)
|
|
$
|
123,662
|
|
Net Cash Provided by Discontinued Operating Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,290
|
|
|
—
|
|
|
6,290
|
|
|||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
456,851
|
|
|
$
|
58,594
|
|
|
$
|
13,434
|
|
|
$
|
3,511
|
|
|
$
|
(395,157
|
)
|
|
$
|
(7,281
|
)
|
|
$
|
129,952
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Expenditures
|
$
|
(1,281
|
)
|
|
$
|
(62,862
|
)
|
|
$
|
(10,288
|
)
|
|
$
|
(3,225
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(77,656
|
)
|
Proceeds From Sales of Assets
|
—
|
|
|
7,953
|
|
|
480
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
8,453
|
|
|||||||
Net Investments in Equity Affiliates
|
—
|
|
|
(2,145
|
)
|
|
(3,433
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,578
|
)
|
|||||||
Net Cash Used in Continuing Investing Activities
|
(1,281
|
)
|
|
(57,054
|
)
|
|
(13,241
|
)
|
|
(3,205
|
)
|
|
—
|
|
|
—
|
|
|
(74,781
|
)
|
|||||||
Net Cash Provided by Discontinued Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
395,757
|
|
|
—
|
|
|
395,757
|
|
|||||||
Net Cash (Used in) Provided by Investing Activities
|
$
|
(1,281
|
)
|
|
$
|
(57,054
|
)
|
|
$
|
(13,241
|
)
|
|
$
|
(3,205
|
)
|
|
$
|
395,757
|
|
|
$
|
—
|
|
|
$
|
320,976
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Payments on Short-Term Borrowings
|
$
|
(100,500
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(100,500
|
)
|
Payments on Miscellaneous Borrowings
|
(353
|
)
|
|
(1,537
|
)
|
|
(193
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(2,095
|
)
|
|||||||
Net Proceeds from Revolver - CNX Coal Resources LP
|
—
|
|
|
—
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|
15,000
|
|
|||||||
Distributions to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,144
|
)
|
|
—
|
|
|
6,731
|
|
|
(5,413
|
)
|
|||||||
Net Change in Parent Advancements
|
—
|
|
|
—
|
|
|
—
|
|
|
(550
|
)
|
|
—
|
|
|
550
|
|
|
—
|
|
|||||||
Dividends Paid
|
(2,294
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,294
|
)
|
|||||||
Issuance of Common Stock
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||||
Treasury Stock Activity
|
(1,510
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,510
|
)
|
|||||||
Net Cash (Used in) Provided by Continuing Financing Activities
|
(104,654
|
)
|
|
(1,537
|
)
|
|
(193
|
)
|
|
2,294
|
|
|
—
|
|
|
7,281
|
|
|
(96,809
|
)
|
|||||||
Net Cash Used in Discontinued Financing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
(47
|
)
|
|||||||
Net Cash (Used in) Provided by Financing Activities
|
$
|
(104,654
|
)
|
|
$
|
(1,537
|
)
|
|
$
|
(193
|
)
|
|
$
|
2,294
|
|
|
$
|
(47
|
)
|
|
$
|
7,281
|
|
|
$
|
(96,856
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor |
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(38,966
|
)
|
|
$
|
(56,344
|
)
|
|
$
|
39,256
|
|
|
$
|
14,066
|
|
|
$
|
—
|
|
|
$
|
8,486
|
|
|
$
|
(33,502
|
)
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
3,502
|
|
|
—
|
|
|
3,541
|
|
|
(39
|
)
|
|
—
|
|
|
(3,502
|
)
|
|
3,502
|
|
|||||||
Other Comprehensive Income (Loss):
|
3,502
|
|
|
—
|
|
|
3,541
|
|
|
(39
|
)
|
|
—
|
|
|
(3,502
|
)
|
|
3,502
|
|
|||||||
Comprehensive (Loss) Income
|
(35,464
|
)
|
|
(56,344
|
)
|
|
42,797
|
|
|
14,027
|
|
|
—
|
|
|
4,984
|
|
|
(30,000
|
)
|
|||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,452
|
|
|
5,452
|
|
|||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(35,464
|
)
|
|
$
|
(56,344
|
)
|
|
$
|
42,797
|
|
|
$
|
14,027
|
|
|
$
|
—
|
|
|
$
|
(468
|
)
|
|
$
|
(35,452
|
)
|
|
Parent
|
|
CNX Gas
Guarantor
|
|
Other Subsidiary Guarantors
|
|
CNXC Non-
Guarantor
|
|
Other Subsidiary Non-
Guarantors
|
|
Elimination
|
|
Consolidated
|
||||||||||||||
Net (Loss) Income
|
$
|
(97,572
|
)
|
|
$
|
(13,524
|
)
|
|
$
|
(2,212
|
)
|
|
$
|
3,816
|
|
|
$
|
(53,181
|
)
|
|
$
|
66,215
|
|
|
$
|
(96,458
|
)
|
Other Comprehensive (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Actuarially Determined Long-Term Liability Adjustments
|
(2,484
|
)
|
|
—
|
|
|
(2,459
|
)
|
|
(25
|
)
|
|
—
|
|
|
2,484
|
|
|
(2,484
|
)
|
|||||||
Reclassification of Cash Flow Hedge from OCI to Earnings
|
(9,814
|
)
|
|
(9,814
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,814
|
|
|
(9,814
|
)
|
|||||||
Other Comprehensive (Loss) Income:
|
(12,298
|
)
|
|
(9,814
|
)
|
|
(2,459
|
)
|
|
(25
|
)
|
|
—
|
|
|
12,298
|
|
|
(12,298
|
)
|
|||||||
Comprehensive (Loss) Income
|
(109,870
|
)
|
|
(23,338
|
)
|
|
(4,671
|
)
|
|
3,791
|
|
|
(53,181
|
)
|
|
78,513
|
|
|
(108,756
|
)
|
|||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,114
|
|
|
1,114
|
|
|||||||
Comprehensive (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
|
$
|
(109,870
|
)
|
|
$
|
(23,338
|
)
|
|
$
|
(4,671
|
)
|
|
$
|
3,791
|
|
|
$
|
(53,181
|
)
|
|
$
|
77,399
|
|
|
$
|
(109,870
|
)
|
|
CONE
|
|
The Partnership
|
|
Total
|
||||||
Balance at December 31, 2016
|
$
|
151,075
|
|
|
$
|
18,133
|
|
|
$
|
169,208
|
|
Equity in Earnings
|
1,866
|
|
|
10,072
|
|
|
11,938
|
|
|||
Distribution of Earnings
|
—
|
|
|
(5,909
|
)
|
|
(5,909
|
)
|
|||
Balance at March 31, 2017
|
$
|
152,941
|
|
|
$
|
22,296
|
|
|
$
|
175,237
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Miscellaneous Other Income:
|
|
|
|
||||
Equity in Earnings of Affiliates - CONE
|
$
|
1,866
|
|
|
$
|
6,393
|
|
Equity in Earnings of Affiliates - the Partnership
|
$
|
10,072
|
|
|
$
|
7,958
|
|
|
|
|
|
||||
Transportation, Gathering and Compression:
|
|
|
|
||||
Gathering Services - CONE
|
$
|
253
|
|
|
$
|
217
|
|
Gathering Services - the Partnership
|
$
|
34,054
|
|
|
$
|
31,645
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Operating and Other Costs
|
$
|
872
|
|
|
$
|
1,266
|
|
Selling, General and Administrative Expenses
|
717
|
|
|
1,116
|
|
||
Total Services from CONSOL Energy
|
$
|
1,589
|
|
|
$
|
2,382
|
|
•
|
In March 2016, the FASB issued Update 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies how an entity determines whether it is a principal or an agent for goods or services promised to a customer as well as the nature of the goods or services promised to their customers.
|
•
|
In April 2016, the FASB issued Update 2016-10 - Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which seeks to address implementation issues in the areas of identifying performance obligations and licensing.
|
•
|
In May 2016, the FASB issued Update 2016-12 - Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients, which seeks to address implementation issues in the areas of collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition.
|
•
|
In December 2016, the FASB issued Update 2016-20 - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which includes amendments related to loan guarantee fees, contract costs, provisions for losses on construction and production-type contracts, scope, disclosures, contract modification, contract asset versus receivable, refund liability and advertising costs.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
2017
|
|
2018
|
Volumes Hedged (Bcf), as of 4/18/17
|
|
312.4*
|
|
283.2
|
|
|
Q2 2017
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
||||||||||
NYMEX Only Hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volumes (Bcf)
|
|
68.0
|
|
|
279.9
|
|
|
276.4
|
|
|
194.9
|
|
|
117.2
|
|
|||||
Average Prices ($/Mcf)
|
|
$
|
3.18
|
|
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
$
|
3.07
|
|
|
$
|
3.11
|
|
Index Hedges and Contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volumes (Bcf)
|
|
8.1
|
|
|
32.5
|
|
|
6.8
|
|
|
12.8
|
|
|
7.7
|
|
|||||
Average Prices ($/Mcf)
|
|
$
|
3.19
|
|
|
$
|
3.18
|
|
|
$
|
2.61
|
|
|
$
|
2.51
|
|
|
$
|
2.46
|
|
Total Volumes Hedged (Bcf)
|
|
76.1
|
|
|
312.4
|
|
|
283.2
|
|
|
207.7
|
|
|
124.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NYMEX + Basis (fully-covered volumes)
1
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volumes (Bcf)
|
|
71.1
|
|
|
307.2
|
|
|
253.8
|
|
|
170.0
|
|
|
109.8
|
|
|||||
Average Prices ($/Mcf)
|
|
$
|
2.59
|
|
|
$
|
2.61
|
|
|
$
|
2.86
|
|
|
$
|
2.81
|
|
|
$
|
2.85
|
|
NYMEX Only Hedges Exposed to Basis
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volumes (Bcf)
|
|
5.0
|
|
|
5.2
|
|
|
29.4
|
|
|
37.7
|
|
|
15.1
|
|
|||||
Average Prices ($/Mcf)
|
|
$
|
3.18
|
|
|
$
|
3.17
|
|
|
$
|
3.17
|
|
|
$
|
3.07
|
|
|
$
|
3.11
|
|
Total Volumes Hedged (Bcf)
|
|
76.1
|
|
|
312.4
|
|
|
283.2
|
|
|
207.7
|
|
|
124.9
|
|
|
For the Three Months Ended March 31,
|
||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
Variance
|
||||||
Loss from Continuing Operations
|
$
|
(33,502
|
)
|
|
$
|
(43,291
|
)
|
|
$
|
9,789
|
|
Loss from Discontinued Operations
|
—
|
|
|
(53,167
|
)
|
|
53,167
|
|
|||
Net Loss
|
$
|
(33,502
|
)
|
|
$
|
(96,458
|
)
|
|
$
|
62,956
|
|
Less: Net Income Attributable to Noncontrolling Interest
|
5,464
|
|
|
1,114
|
|
|
4,350
|
|
|||
Net Loss Attributable to CONSOL Energy Shareholders
|
$
|
(38,966
|
)
|
|
$
|
(97,572
|
)
|
|
$
|
58,606
|
|
|
|
For the Three Months Ended March 31,
|
|||||||||||||
in thousands (unless noted)
|
|
2017
|
|
2016
|
|
Variance
|
|
Percent Change
|
|||||||
LIQUIDS
|
|
|
|
|
|
|
|
|
|||||||
NGLs:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
8,079
|
|
|
9,721
|
|
|
(1,642
|
)
|
|
(16.9
|
)%
|
|||
Sales Volume (Mbbls)
|
|
1,347
|
|
|
1,620
|
|
|
(273
|
)
|
|
(16.9
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
29.16
|
|
|
$
|
12.30
|
|
|
$
|
16.86
|
|
|
137.1
|
%
|
Gross Revenue
|
|
$
|
39,283
|
|
|
$
|
19,907
|
|
|
$
|
19,376
|
|
|
97.3
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Oil:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
85
|
|
|
100
|
|
|
(15
|
)
|
|
(15.0
|
)%
|
|||
Sales Volume (Mbbls)
|
|
14
|
|
|
17
|
|
|
(3
|
)
|
|
(17.6
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
44.40
|
|
|
$
|
30.84
|
|
|
$
|
13.56
|
|
|
44.0
|
%
|
Gross Revenue
|
|
$
|
629
|
|
|
$
|
513
|
|
|
$
|
116
|
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Condensate:
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcfe)
|
|
763
|
|
|
1,580
|
|
|
(817
|
)
|
|
(51.7
|
)%
|
|||
Sales Volume (Mbbls)
|
|
127
|
|
|
263
|
|
|
(136
|
)
|
|
(51.7
|
)%
|
|||
Gross Price ($/Bbl)
|
|
$
|
33.84
|
|
|
$
|
14.64
|
|
|
$
|
19.20
|
|
|
131.1
|
%
|
Gross Revenue
|
|
$
|
4,305
|
|
|
$
|
3,861
|
|
|
$
|
444
|
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
GAS
|
|
|
|
|
|
|
|
|
|||||||
Sales Volume (MMcf)
|
|
86,099
|
|
|
86,064
|
|
|
35
|
|
|
—
|
%
|
|||
Sales Price ($/Mcf)
|
|
$
|
3.18
|
|
|
$
|
1.83
|
|
|
$
|
1.35
|
|
|
73.8
|
%
|
Gross Revenue
|
|
$
|
273,546
|
|
|
$
|
157,398
|
|
|
$
|
116,148
|
|
|
73.8
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Hedging Impact ($/Mcf)
|
|
$
|
(0.55
|
)
|
|
$
|
0.98
|
|
|
$
|
(1.53
|
)
|
|
(156.1
|
)%
|
(Loss) Gain on Commodity Derivative Instruments - Cash Settlement
|
|
$
|
(47,103
|
)
|
|
$
|
84,331
|
|
|
$
|
(131,434
|
)
|
|
(155.9
|
)%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
E&P Sales Volumes (Bcfe)
|
95.0
|
|
|
97.5
|
|
|
(2.5
|
)
|
|
(2.6
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price (per Mcfe)
|
$
|
2.85
|
|
|
$
|
2.73
|
|
|
$
|
0.12
|
|
|
4.4
|
%
|
Average Costs (per Mcfe)
|
2.32
|
|
|
2.41
|
|
|
(0.09
|
)
|
|
(3.7
|
)%
|
|||
Average Margin
|
$
|
0.53
|
|
|
$
|
0.32
|
|
|
$
|
0.21
|
|
|
65.6
|
%
|
•
|
Lease operating expense decreased on a per unit basis in the period-to-period comparison due to a decrease in well tending costs, salt water disposal costs and a decrease in both Company operated and joint venture operated repairs and maintenance costs.
|
•
|
Depreciation, depletion and amortization decreased on a per-unit basis primarily due to a reduction in Marcellus rates. The reduction in Marcellus rates was primarily due to an increase in the Company's Marcellus reserves following the Marcellus joint venture termination in the fourth quarter of 2016.
|
•
|
Transportation, gathering and compression expense increased on a per unit basis in the period-to-period comparison primarily due to an increase in CONE gathering expenses directly related to the increase in Marcellus production after the joint venture termination. See Note 16 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Mining Operations Tons Sold (in millions)
|
6.8
|
|
|
5.3
|
|
|
1.5
|
|
|
28.3
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price per ton sold
|
$
|
46.80
|
|
|
$
|
42.99
|
|
|
$
|
3.81
|
|
|
8.9
|
%
|
Average Cost of Goods Sold per ton sold
|
34.52
|
|
|
33.16
|
|
|
1.36
|
|
|
4.1
|
%
|
|||
Average Margin
|
$
|
12.28
|
|
|
$
|
9.83
|
|
|
$
|
2.45
|
|
|
24.9
|
%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Stock-Based Compensation
|
$
|
8
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
33.3
|
%
|
Short-Term Incentive Compensation
|
5
|
|
|
4
|
|
|
1
|
|
|
25.0
|
%
|
|||
Consulting and Professional Services
|
5
|
|
|
4
|
|
|
1
|
|
|
25.0
|
%
|
|||
Employee Wages and Related Expenses
|
14
|
|
|
13
|
|
|
1
|
|
|
7.7
|
%
|
|||
Advertising and Promotion
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Rent
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Other
|
4
|
|
|
—
|
|
|
4
|
|
|
100.0
|
%
|
|||
Total Company Selling, General and Administrative Expense
|
$
|
39
|
|
|
$
|
30
|
|
|
$
|
9
|
|
|
30.0
|
%
|
•
|
Stock-Based Compensation expense
increased
$2 million
in the period-to-period comparison primarily due to additional non-cash amortization expense.
|
•
|
The
increase
in Short-Term Incentive Compensation was a result of higher anticipated payouts in the current period.
|
|
For the Three Months Ended
|
|
Difference to Three Months Ended
|
||||||||||||||||||||||||||||||||||||
|
March 31, 2017
|
|
March 31, 2016
|
||||||||||||||||||||||||||||||||||||
(in millions)
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total E&P
|
|
Marcellus
|
|
Utica
|
|
CBM
|
|
Other
Gas
|
|
Total
E&P
|
||||||||||||||||||||
Natural Gas, NGLs and Oil Sales
|
$
|
190
|
|
|
$
|
54
|
|
|
$
|
58
|
|
|
$
|
16
|
|
|
$
|
318
|
|
|
$
|
94
|
|
|
$
|
20
|
|
|
$
|
16
|
|
|
$
|
6
|
|
|
$
|
136
|
|
(Loss) Gain on Commodity Derivative Instruments
|
(33
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
23
|
|
|
(22
|
)
|
|
(82
|
)
|
|
(13
|
)
|
|
(28
|
)
|
|
46
|
|
|
(77
|
)
|
||||||||||
Purchased Gas Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Miscellaneous Other Income
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
||||||||||
Gain (Loss) on Sale of Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
||||||||||
Total Revenue and Other Income
|
157
|
|
|
51
|
|
|
49
|
|
|
67
|
|
|
324
|
|
|
12
|
|
|
7
|
|
|
(12
|
)
|
|
49
|
|
|
56
|
|
||||||||||
Lease Operating Expense
|
8
|
|
|
4
|
|
|
6
|
|
|
4
|
|
|
22
|
|
|
(2
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
1
|
|
|
(6
|
)
|
||||||||||
Production, Ad Valorem, and Other Fees
|
4
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
9
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Transportation, Gathering and Compression
|
62
|
|
|
11
|
|
|
17
|
|
|
4
|
|
|
94
|
|
|
2
|
|
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
||||||||||
Depreciation, Depletion and Amortization
|
53
|
|
|
16
|
|
|
20
|
|
|
6
|
|
|
95
|
|
|
2
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|
(10
|
)
|
||||||||||
Exploration and Production Related Other Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||||||||
Purchased Gas Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||
Other Corporate Expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||||||
Impairment of Exploration and Production Properties
|
—
|
|
|
—
|
|
|
—
|
|
|
138
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138
|
|
|
138
|
|
||||||||||
Selling, General and Administrative Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||
Total Exploration and Production Costs
|
127
|
|
|
33
|
|
|
45
|
|
|
211
|
|
|
416
|
|
|
1
|
|
|
(8
|
)
|
|
(3
|
)
|
|
136
|
|
|
126
|
|
||||||||||
Interest Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total E&P Division Costs
|
127
|
|
|
33
|
|
|
45
|
|
|
212
|
|
|
417
|
|
|
1
|
|
|
(8
|
)
|
|
(3
|
)
|
|
136
|
|
|
126
|
|
||||||||||
Earnings (Loss) Before Income Tax
|
$
|
30
|
|
|
$
|
18
|
|
|
$
|
4
|
|
|
$
|
(145
|
)
|
|
$
|
(93
|
)
|
|
$
|
11
|
|
|
$
|
15
|
|
|
$
|
(9
|
)
|
|
$
|
(87
|
)
|
|
$
|
(70
|
)
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Marcellus Gas Sales Volumes (Bcf)
|
52.9
|
|
|
45.1
|
|
|
7.8
|
|
|
17.3
|
%
|
|||
NGLs Sales Volumes (Bcfe)*
|
4.8
|
|
|
5.3
|
|
|
(0.5
|
)
|
|
(9.4
|
)%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.3
|
|
|
0.8
|
|
|
(0.5
|
)
|
|
(62.5
|
)%
|
|||
Total Marcellus Sales Volumes (Bcfe)*
|
58.0
|
|
|
51.2
|
|
|
6.8
|
|
|
13.3
|
%
|
|||
|
|
|
|
|
|
|
|
|
||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.13
|
|
|
$
|
1.83
|
|
|
$
|
1.30
|
|
|
71.0
|
%
|
(Loss) Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
(0.62
|
)
|
|
$
|
1.08
|
|
|
$
|
(1.70
|
)
|
|
(157.4
|
)%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
4.54
|
|
|
$
|
2.21
|
|
|
$
|
2.33
|
|
|
105.4
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
5.42
|
|
|
$
|
2.67
|
|
|
$
|
2.75
|
|
|
103.0
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Total Average Marcellus Sales Price (per Mcfe)
|
$
|
2.70
|
|
|
$
|
2.83
|
|
|
$
|
(0.13
|
)
|
|
(4.6
|
)%
|
Average Marcellus Lease Operating Expenses (per Mcfe)
|
0.14
|
|
|
0.19
|
|
|
(0.05
|
)
|
|
(26.3
|
)%
|
|||
Average Marcellus Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.07
|
|
|
0.09
|
|
|
(0.02
|
)
|
|
(22.2
|
)%
|
|||
Average Marcellus Transportation, Gathering and Compression costs (per Mcfe)
|
1.06
|
|
|
1.16
|
|
|
(0.10
|
)
|
|
(8.6
|
)%
|
|||
Average Marcellus Depreciation, Depletion and Amortization costs (per Mcfe)
|
0.91
|
|
|
1.01
|
|
|
(0.10
|
)
|
|
(9.9
|
)%
|
|||
Total Average Marcellus Costs (per Mcfe)
|
$
|
2.18
|
|
|
$
|
2.45
|
|
|
$
|
(0.27
|
)
|
|
(11.0
|
)%
|
Average Margin for Marcellus (per Mcfe)
|
$
|
0.52
|
|
|
$
|
0.38
|
|
|
$
|
0.14
|
|
|
36.8
|
%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Utica Gas Sales Volumes (Bcf)
|
11.6
|
|
|
17.7
|
|
|
(6.1
|
)
|
|
(34.5
|
)%
|
|||
NGLs Sales Volumes (Bcfe)*
|
3.3
|
|
|
4.4
|
|
|
(1.1
|
)
|
|
(25.0
|
)%
|
|||
Condensate Sales Volumes (Bcfe)*
|
0.4
|
|
|
0.8
|
|
|
(0.4
|
)
|
|
(50.0
|
)%
|
|||
Total Utica Sales Volumes (Bcfe)*
|
15.3
|
|
|
22.9
|
|
|
(7.6
|
)
|
|
(33.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
2.90
|
|
|
$
|
1.37
|
|
|
$
|
1.53
|
|
|
111.7
|
%
|
(Loss) Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
(0.23
|
)
|
|
$
|
0.57
|
|
|
$
|
(0.80
|
)
|
|
(140.4
|
)%
|
Average Sales Price - NGLs (Mcfe)*
|
$
|
5.34
|
|
|
$
|
1.86
|
|
|
$
|
3.48
|
|
|
187.1
|
%
|
Average Sales Price - Condensate (Mcfe)*
|
$
|
5.83
|
|
|
$
|
2.20
|
|
|
$
|
3.63
|
|
|
165.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Utica Sales Price (per Mcfe)
|
$
|
3.32
|
|
|
$
|
1.93
|
|
|
$
|
1.39
|
|
|
72.0
|
%
|
Average Utica Lease Operating Expenses (per Mcfe)
|
0.27
|
|
|
0.34
|
|
|
(0.07
|
)
|
|
(20.6
|
)%
|
|||
Average Utica Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.17
|
|
|
0.06
|
|
|
0.11
|
|
|
183.3
|
%
|
|||
Average Utica Transportation, Gathering and Compression Costs (per Mcfe)
|
0.70
|
|
|
0.45
|
|
|
0.25
|
|
|
55.6
|
%
|
|||
Average Utica Depreciation, Depletion and Amortization Costs (per Mcfe)
|
1.02
|
|
|
0.94
|
|
|
0.08
|
|
|
8.5
|
%
|
|||
Total Average Utica Costs (per Mcfe)
|
$
|
2.16
|
|
|
$
|
1.79
|
|
|
$
|
0.37
|
|
|
20.7
|
%
|
Average Margin for Utica (per Mcfe)
|
$
|
1.16
|
|
|
$
|
0.14
|
|
|
$
|
1.02
|
|
|
728.6
|
%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
CBM Gas Sales Volumes (Bcf)
|
16.7
|
|
|
17.6
|
|
|
(0.9
|
)
|
|
(5.1
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.52
|
|
|
$
|
2.41
|
|
|
$
|
1.11
|
|
|
46.1
|
%
|
(Loss) Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
(0.55
|
)
|
|
$
|
1.09
|
|
|
$
|
(1.64
|
)
|
|
(150.5
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total Average CBM Sales Price (per Mcf)
|
$
|
2.97
|
|
|
$
|
3.50
|
|
|
$
|
(0.53
|
)
|
|
(15.1
|
)%
|
Average CBM Lease Operating Expenses (per Mcf)
|
0.37
|
|
|
0.39
|
|
|
(0.02
|
)
|
|
(5.1
|
)%
|
|||
Average CBM Production, Ad Valorem, and Other Fees (per Mcf)
|
0.13
|
|
|
0.09
|
|
|
0.04
|
|
|
44.4
|
%
|
|||
Average CBM Transportation, Gathering and Compression Costs (per Mcf)
|
1.00
|
|
|
1.05
|
|
|
(0.05
|
)
|
|
(4.8
|
)%
|
|||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf)
|
1.25
|
|
|
1.25
|
|
|
—
|
|
|
—
|
%
|
|||
Total Average CBM Costs (per Mcf)
|
$
|
2.75
|
|
|
$
|
2.78
|
|
|
$
|
(0.03
|
)
|
|
(1.1
|
)%
|
Average Margin for CBM (per Mcf)
|
$
|
0.22
|
|
|
$
|
0.72
|
|
|
$
|
(0.50
|
)
|
|
(69.4
|
)%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change |
|||||||
Other Gas Sales Volumes (Bcf)
|
4.9
|
|
|
5.7
|
|
|
(0.8
|
)
|
|
(14.0
|
)%
|
|||
Oil Sales Volumes (Bcfe)*
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|||
Total Other Sales Volumes (Bcfe)*
|
5.0
|
|
|
5.8
|
|
|
(0.8
|
)
|
|
(13.8
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average Sales Price - Gas (Mcf)
|
$
|
3.20
|
|
|
$
|
1.47
|
|
|
$
|
1.73
|
|
|
117.7
|
%
|
(Loss) Gain on Commodity Derivative Instruments - Cash Settlement- Gas (Mcf)
|
$
|
(0.52
|
)
|
|
$
|
1.15
|
|
|
$
|
(1.67
|
)
|
|
(145.2
|
)%
|
Average Sales Price - Oil (Mcfe)*
|
$
|
7.34
|
|
|
$
|
5.27
|
|
|
$
|
2.07
|
|
|
39.3
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Average Other Sales Price (per Mcfe)
|
$
|
2.75
|
|
|
$
|
2.66
|
|
|
$
|
0.09
|
|
|
3.4
|
%
|
Average Other Lease Operating Expenses (per Mcfe)
|
0.63
|
|
|
0.58
|
|
|
0.05
|
|
|
8.6
|
%
|
|||
Average Other Production, Ad Valorem, and Other Fees (per Mcfe)
|
0.14
|
|
|
0.11
|
|
|
0.03
|
|
|
27.3
|
%
|
|||
Average Other Transportation, Gathering and Compression Costs (per Mcfe)
|
1.08
|
|
|
0.96
|
|
|
0.12
|
|
|
12.5
|
%
|
|||
Average Other Depreciation, Depletion and Amortization Costs (per Mcfe)
|
1.06
|
|
|
1.76
|
|
|
(0.70
|
)
|
|
(39.8
|
)%
|
|||
Total Average Other Costs (per Mcfe)
|
$
|
2.91
|
|
|
$
|
3.41
|
|
|
$
|
(0.50
|
)
|
|
(14.7
|
)%
|
Average Margin for Other (per Mcfe)
|
$
|
(0.16
|
)
|
|
$
|
(0.75
|
)
|
|
$
|
0.59
|
|
|
78.7
|
%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change |
|||||||
Right of Way Sales
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
(11
|
)
|
|
(100.0
|
)%
|
Equity in Earnings of Affiliates
|
12
|
|
|
16
|
|
|
(4
|
)
|
|
(25.0
|
)%
|
|||
Gathering Revenue
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|||
Other
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
(100.0
|
)%
|
|||
Total Miscellaneous Other Income
|
$
|
15
|
|
|
$
|
29
|
|
|
$
|
(14
|
)
|
|
(48.3
|
)%
|
•
|
Right of Way Sales relate to an initiative to generate additional revenue from the Company's unutilized surface rights.
|
•
|
Equity in Earnings of Affiliates
decreased
$4
million due to a decrease in earnings from CONE Midstream Partners, LP. and CONE Gathering, LLC. See Note 16 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
|
For the Three Months Ended March 31,
|
|||||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Lease Expiration Costs
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
100.0
|
%
|
Land Rentals
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Other
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Total Exploration and Other Costs
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
8
|
|
|
400.0
|
%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Idle Rig Fees
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
(7
|
)
|
|
(77.8
|
)%
|
Litigation Expense
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
(100.0
|
)%
|
|||
Insurance Expense
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Unutilized Firm Transportation and Processing Fees
|
15
|
|
|
8
|
|
|
7
|
|
|
87.5
|
%
|
|||
Other
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
(100.0
|
)%
|
|||
Total Other Corporate Expenses
|
$
|
18
|
|
|
$
|
23
|
|
|
$
|
(5
|
)
|
|
(21.7
|
)%
|
•
|
Idle Rig Fees are fees related to the temporary idling of some of the Company's natural gas rigs. The total idle rig expense incurred by the Company has decreased by
$7
million for the current quarter as compared to the prior year quarter due to an increase in drilling activity as a direct result of the recovery in natural gas pricing.
|
•
|
Unutilized Firm Transportation and Processing Fees represent pipeline transportation capacity the E&P segment has obtained to enable gas production to flow uninterrupted as sales volumes increase, as well as additional processing capacity for natural gas liquids. The increase in the period-to-period comparison was primarily due to the decrease in the utilization of the capacity. The Company attempts to minimize this expense by releasing (selling) unutilized firm transportation capacity to other parties when possible and when beneficial. The revenue received when this capacity is released (sold) is included in Gathering Revenue in miscellaneous other income above.
|
|
For the Three Months Ended March 31,
|
||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
||||||
Sales:
|
|
|
|
|
|
||||||
Coal Sales
|
$
|
316
|
|
|
$
|
226
|
|
|
$
|
90
|
|
Freight Revenue
|
12
|
|
|
13
|
|
|
(1
|
)
|
|||
Miscellaneous Other Income
|
4
|
|
|
—
|
|
|
4
|
|
|||
Total Revenue and Other Income
|
332
|
|
|
239
|
|
|
93
|
|
|||
Operating Costs and Expenses:
|
|
|
|
|
|
||||||
Operating Costs
|
193
|
|
|
139
|
|
|
54
|
|
|||
Depreciation, Depletion and Amortization
|
40
|
|
|
35
|
|
|
5
|
|
|||
Total Operating Costs and Expenses
|
233
|
|
|
174
|
|
|
59
|
|
|||
Other Costs and Expenses:
|
|
|
|
|
|
||||||
Other Costs
|
7
|
|
|
15
|
|
|
(8
|
)
|
|||
Depreciation, Depletion and Amortization
|
2
|
|
|
6
|
|
|
(4
|
)
|
|||
Total Other Costs and Expenses
|
9
|
|
|
21
|
|
|
(12
|
)
|
|||
Freight Expense
|
12
|
|
|
13
|
|
|
(1
|
)
|
|||
Selling, General and Administrative Costs
|
15
|
|
|
6
|
|
|
9
|
|
|||
Total PA Mining Operations Costs
|
269
|
|
|
214
|
|
|
55
|
|
|||
Interest Expense
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total PA Mining Operations Division Expense
|
271
|
|
|
216
|
|
|
55
|
|
|||
Earnings Before Income Tax
|
$
|
61
|
|
|
$
|
23
|
|
|
$
|
38
|
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Company Produced PA Mining Operations Tons Sold (in millions)
|
6.8
|
|
|
5.3
|
|
|
1.5
|
|
|
28.3
|
%
|
|||
Average Sales Price Per PA Mining Operations Ton Sold
|
$
|
46.80
|
|
|
$
|
42.99
|
|
|
$
|
3.81
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total Operating Costs Per Ton Sold
|
$
|
28.75
|
|
|
$
|
26.71
|
|
|
$
|
2.04
|
|
|
7.6
|
%
|
Total Depreciation, Depletion and Amortization Costs Per Ton Sold
|
5.77
|
|
|
6.45
|
|
|
(0.68
|
)
|
|
(10.5
|
)%
|
|||
Total Costs Per PA Mining Operations Ton Sold
|
$
|
34.52
|
|
|
$
|
33.16
|
|
|
$
|
1.36
|
|
|
4.1
|
%
|
Average Margin Per PA Mining Operations Ton Sold
|
$
|
12.28
|
|
|
$
|
9.83
|
|
|
$
|
2.45
|
|
|
24.9
|
%
|
|
For the Three Months Ended March 31,
|
|||||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Other Outside Sales
|
$
|
13
|
|
|
$
|
8
|
|
|
$
|
5
|
|
|
62.5
|
%
|
Miscellaneous Other Income
|
21
|
|
|
17
|
|
|
4
|
|
|
23.5
|
%
|
|||
Gain on Sale of Assets
|
8
|
|
|
—
|
|
|
8
|
|
|
100.0
|
%
|
|||
Total Revenue
|
42
|
|
|
25
|
|
|
17
|
|
|
68.0
|
%
|
|||
Miscellaneous Operating Expense
|
44
|
|
|
35
|
|
|
9
|
|
|
25.7
|
%
|
|||
Selling, General, and Administrative Costs
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
%
|
|||
Depreciation, Depletion and Amortization
|
11
|
|
|
8
|
|
|
3
|
|
|
37.5
|
%
|
|||
Gain on Debt Extinguishment
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|||
Interest Expense
|
41
|
|
|
47
|
|
|
(6
|
)
|
|
(12.8
|
)%
|
|||
Total Other Costs
|
97
|
|
|
92
|
|
|
5
|
|
|
5.4
|
%
|
|||
Loss Before Income Tax
|
(55
|
)
|
|
(67
|
)
|
|
12
|
|
|
(17.9
|
)%
|
|||
Income Tax Benefit
|
(54
|
)
|
|
(24
|
)
|
|
(30
|
)
|
|
125.0
|
%
|
|||
Net Loss
|
$
|
(1
|
)
|
|
$
|
(43
|
)
|
|
$
|
42
|
|
|
(97.7
|
)%
|
|
|
For the Three Months Ended March 31,
|
||||||||||
(in millions)
|
|
2017
|
|
2016
|
|
Variance
|
||||||
Royalty Income
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
7
|
|
Rental Income
|
|
9
|
|
|
9
|
|
|
—
|
|
|||
Equity in Earnings of Affiliates
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Right of Way Sales
|
|
1
|
|
|
4
|
|
|
(3
|
)
|
|||
Other Income
|
|
2
|
|
|
1
|
|
|
1
|
|
|||
Total Miscellaneous Other Income
|
|
$
|
21
|
|
|
$
|
17
|
|
|
$
|
4
|
|
•
|
Royalty Income related to non-operated coal properties
increase
d
$7 million
in the period-to period comparison primarily due to payments received in the current period as a result of the Buchanan Mine sale. See Note 2-Discontinued Operations in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional details.
|
•
|
Right of Way Sales relate to an initiative to generate additional revenue from the Company's unutilized surface rights.
|
|
|
For the Three Months Ended March 31,
|
||||||||||
(in millions)
|
|
2017
|
|
2016
|
|
Variance
|
||||||
Transaction Fees
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Coal Terminal Operations
|
|
5
|
|
|
4
|
|
|
1
|
|
|||
Pension Expense
|
|
(2
|
)
|
|
(3
|
)
|
|
1
|
|
|||
Bank Fees
|
|
5
|
|
|
4
|
|
|
1
|
|
|||
Litigation Expense
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Lease Rental Expense
|
|
8
|
|
|
8
|
|
|
—
|
|
|||
Workers' Compensation
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
UMWA Expenses
|
|
2
|
|
|
2
|
|
|
—
|
|
|||
UMWA OPEB Expense
|
|
11
|
|
|
11
|
|
|
—
|
|
|||
Coal Reserve Holding Costs
|
|
2
|
|
|
2
|
|
|
—
|
|
|||
Professional Services
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|||
Closed and Idle Mines
|
|
2
|
|
|
3
|
|
|
(1
|
)
|
|||
Severance Payments
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Other
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Miscellaneous Operating Expense
|
|
$
|
44
|
|
|
$
|
35
|
|
|
$
|
9
|
|
•
|
Transaction Fees of
$5 million
are costs incurred in the current period related to strategic initiatives.
|
•
|
Coal Terminal Operations costs
increased
$1 million
in the period-to-period comparison primarily due to an increase in operating costs associated with the increase in throughput.
|
•
|
Severance Payments were
$1 million
for the three months ended
March 31, 2016
related to the company reorganization that occurred in the prior year period. No such transactions occurred in the current period.
|
•
|
Other includes expenses related to the Company's water operations as well as miscellaneous corporate activity. The increase was due to various transactions that occurred throughout both periods, none of which were individually material.
|
|
For the Three Months Ended March 31,
|
|||||||||||||
(in millions)
|
2017
|
|
2016
|
|
Variance
|
|
Percent
Change
|
|||||||
Total Company Loss Before Income Tax Excluding Noncontrolling Interest
|
$
|
(93
|
)
|
|
$
|
(68
|
)
|
|
$
|
(25
|
)
|
|
36.8
|
%
|
Income Tax Benefit
|
$
|
(54
|
)
|
|
$
|
(24
|
)
|
|
$
|
(30
|
)
|
|
125.0
|
%
|
Effective Income Tax Rate
|
58.0
|
%
|
|
34.9
|
%
|
|
23.1
|
%
|
|
|
|
For the Three Months Ended March 31,
|
||||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
Cash Provided by Operating Activities
|
$
|
205
|
|
|
$
|
130
|
|
|
$
|
75
|
|
Cash (Used in) Provided by Investing Activities
|
$
|
(88
|
)
|
|
$
|
321
|
|
|
$
|
(409
|
)
|
Cash Used in Financing Activities
|
$
|
(117
|
)
|
|
$
|
(97
|
)
|
|
$
|
(20
|
)
|
•
|
Net loss decreased $63 million in the period-to-period comparison.
|
•
|
Adjustments to reconcile net loss to cash provided by operating activities primarily consisted of a $54 million net change in commodity derivative instruments and a $59 million decrease in discontinued operations (See Note 2 - Discontinued Operations in the Notes to the Unaudited Consolidated Financial Statements included in Item 1 of this Form 10-Q for more information). These adjustments were offset, in part, by a $138 million impairment in the carrying value of Knox Energy, which was classified as Held for Sale at March 31, 2017 (See Note 8 - Property, Plant, and Equipment in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for more information).
|
•
|
Capital expenditures increased $35 million in the period-to-period comparison due to the following:
|
◦
|
E&P division capital expenditures increased $38 million primarily due to increased expenditures in both the Marcellus and Utica plays resulting from increased drilling activity.
|
◦
|
PA Mining Operations division capital expenditures decreased $5 million primarily due a decrease in building and structure expenditures, as well as equipment purchases and various other items that occurred throughout both periods, none of which were individually material.
|
◦
|
Other capital expenditures increased $2 million primarily due to expenditures related to the Company's water operations.
|
•
|
Proceeds from the sale of assets increased $11 million primarily due to the sale of the Company's Powhatan #4 surface property in Monroe County, Ohio.
|
•
|
Net Distributions from (Investments in) Equity Affiliates changed $11 million in the period-to-period comparison primarily due to a $6 million distribution received from CONE Midstream Partners, LP in the three months ended March 31, 2017. During the three months ended March 31, 2016, $5 million of contributions were made to CONE Midstream Partners, LP. See Note 16 - Related Party Transactions of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
Discontinued Operations decreased $396 million primarily as a result of the sale of the Buchanan Mine and certain other metallurgical coal reserves in the three months ended March 31, 2016. See Note 2 - Discontinued Operations of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.
|
•
|
In the three months ended March 31, 2017, CONSOL Energy repurchased $98 million of the 2022 bonds. See Note 10 - Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements of this Form 10-Q for additional details.
|
•
|
In the three months ended March 31, 2017, there were $4 million of net payments under the CNX Coal Resources LP credit facility compared with $15 million of net proceeds in the three months ended March 31, 2016.
|
•
|
In the
three
months ended
March 31, 2016
, CONSOL Energy made payments on the senior secured credit facility of $101 million. No payments were made in the three months ended March 31, 2017.
|
|
Payments due by Year
|
||||||||||||||||||
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
|
Total
|
||||||||||
Purchase Order Firm Commitments
|
$
|
58,005
|
|
|
$
|
25,036
|
|
|
$
|
1,255
|
|
|
$
|
—
|
|
|
$
|
84,296
|
|
Gas Firm Transportation and Processing
|
146,575
|
|
|
255,557
|
|
|
242,340
|
|
|
598,135
|
|
|
1,242,607
|
|
|||||
Long-Term Debt
|
1,660
|
|
|
475
|
|
|
292,470
|
|
|
2,353,252
|
|
|
2,647,857
|
|
|||||
Interest on Long-Term Debt
|
163,960
|
|
|
327,834
|
|
|
303,924
|
|
|
133,287
|
|
|
929,005
|
|
|||||
Capital (Finance) Lease Obligations
|
10,191
|
|
|
20,424
|
|
|
16,142
|
|
|
—
|
|
|
46,757
|
|
|||||
Interest on Capital (Finance) Lease Obligations
|
2,770
|
|
|
3,715
|
|
|
962
|
|
|
—
|
|
|
7,447
|
|
|||||
Operating Lease Obligations
|
103,607
|
|
|
87,566
|
|
|
52,856
|
|
|
75,502
|
|
|
319,531
|
|
|||||
Long-Term Liabilities—Employee Related (a)
|
67,582
|
|
|
132,776
|
|
|
129,806
|
|
|
583,372
|
|
|
913,536
|
|
|||||
Other Long-Term Liabilities (b)
|
479,092
|
|
|
101,256
|
|
|
50,975
|
|
|
340,141
|
|
|
971,464
|
|
|||||
Total Contractual Obligations (c)
|
$
|
1,033,442
|
|
|
$
|
954,639
|
|
|
$
|
1,090,730
|
|
|
$
|
4,083,689
|
|
|
$
|
7,162,500
|
|
(a)
|
Employee related long-term liabilities include other post-employment benefits, work-related injuries and illnesses. Estimated salaried retirement contributions required to meet minimum funding standards under ERISA are excluded from the pay-out table due to the uncertainty regarding amounts to be contributed. Additional contributions to the pension trust are not expected to be significant for the remainder of
2017
.
|
(b)
|
Other long-term liabilities include mine reclamation and closure and other long-term liability costs.
|
(c)
|
The significant obligation table does not include obligations to taxing authorities due to the uncertainty surrounding the ultimate settlement of amounts and timing of these obligations.
|
•
|
An aggregate principal amount of $
74
million
of
8.25%
senior unsecured notes due in April 2020. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes is guaranteed by most of CONSOL Energy’s subsidiaries.
|
•
|
An aggregate principal amount of $
21
million
of
6.375%
senior unsecured notes due in March 2021. Interest on the notes is payable March 1 and September 1 of each year. Payment of the principal and interest on the notes is guaranteed by most of CONSOL Energy's subsidiaries.
|
•
|
An aggregate principal amount of
$1,750
million
of
5.875%
senior unsecured notes due in April 2022 plus
$4
million of unamortized bond premium. Interest on the notes is payable April 15 and October 15 of each year. Payment of the principal and interest on the notes is guaranteed by most of CONSOL Energy's subsidiaries.
|
•
|
An aggregate principal amount of $
500
million
of
8.00%
senior unsecured notes due in April 2023 less
$5
million of unamortized bond discount. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes is guaranteed by most of CONSOL Energy’s subsidiaries.
|
•
|
An aggregate principal amount of $
103
million
of industrial revenue bonds, which were issued to finance the Baltimore port facility, bear interest at
5.75%
per annum and mature in September 2025. Interest on the industrial revenue bonds is payable March 1 and September 1 of each year. Payment of principal and interest on the notes is guaranteed by CONSOL Energy.
|
•
|
Advance royalty commitments of $
3
million
with an average interest rate of
7.73%
per annum.
|
•
|
An aggregate principal amount of $
1
million
on a note maturing in March 2018.
|
•
|
An aggregate principal amount of $
47
million
of capital leases with a weighted average interest rate of
6.51%
per annum.
|
•
|
An aggregate principal amount of
$197
million in outstanding borrowings under the revolver for CNXC. CONSOL Energy is not a guarantor of CNXC's revolving credit facility.
|
•
|
deterioration in economic conditions in any of the industries in which our customers operate may decrease demand for our products, impair our ability to collect customer receivables and impair our ability to access capital;
|
•
|
prices for natural gas, natural gas liquids and coal are volatile and can fluctuate widely based upon a number of factors beyond our control including oversupply relative to the demand available for our products, weather and the price and availability of alternative fuels;
|
•
|
an extended decline in the prices we receive for our natural gas, natural gas liquids and coal affecting our operating results and cash flows;
|
•
|
foreign currency fluctuations could adversely affect the competitiveness of our coal and natural gas liquids abroad;
|
•
|
our customers extending existing contracts or entering into new long-term contracts for coal on favorable terms;
|
•
|
our reliance on major customers;
|
•
|
our inability to collect payments from customers if their creditworthiness declines or if they fail to honor their contracts;
|
•
|
the disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our natural gas, natural gas liquids and coal to market;
|
•
|
a loss of our competitive position because of the competitive nature of the natural gas and coal industries, or a loss of our competitive position because of overcapacity in these industries impairing our profitability;
|
•
|
coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions;
|
•
|
the impact of potential, as well as any adopted environmental regulations including any relating to greenhouse gas emissions on our operating costs as well as on the market for natural gas and coal and for our securities;
|
•
|
the risks inherent in natural gas and coal operations, including our reliance upon third party contractors, being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant construction or repair of equipment, fires, explosions, accidents and weather conditions which could impact financial results;
|
•
|
decreases in the availability of, or increases in, the price of commodities or capital equipment used in our coal mining and natural gas operations;
|
•
|
obtaining and renewing governmental permits and approvals for our natural gas and coal operations;
|
•
|
the effects of government regulation on the discharge into the water or air, and the disposal and clean-up of, hazardous substances and wastes generated during our natural gas and coal operations;
|
•
|
our ability to find adequate water sources for our use in natural gas drilling, or our ability to dispose of water used or removed from strata in connection with our gas operations at a reasonable cost and within applicable environmental rules;
|
•
|
the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down our operations;
|
•
|
the potential for liabilities arising from environmental contamination or alleged environmental contamination in connection with our past or current gas and coal operations;
|
•
|
the effects of mine closing, reclamation, gas well closing and certain other liabilities;
|
•
|
uncertainties in estimating our economically recoverable natural gas, oil and coal reserves;
|
•
|
defects may exist in our chain of title and we may incur additional costs associated with perfecting title for natural gas rights on some of our properties or failing to acquire these additional rights may result in a reduction of our estimated reserves;
|
•
|
the outcomes of various legal proceedings, including those which are more fully described in our reports filed under the Securities Exchange Act of 1934;
|
•
|
exposure to employee-related long-term liabilities;
|
•
|
divestitures and acquisitions we anticipate may not occur or produce anticipated benefits;
|
•
|
joint ventures that we are party to now or in the future may restrict our flexibility, actions taken by our joint ventures may impact our financial position and operational results;
|
•
|
risks associated with our debt;
|
•
|
replacing our natural gas and oil reserves, which if not replaced, will cause our natural gas and oil reserves and production to decline;
|
•
|
declines in our borrowing base could occur for a variety of reasons, including lower natural gas or oil prices, declines in natural gas and oil proved reserves, and lending regulations requirements or regulations;
|
•
|
our hedging activities may prevent us from benefiting from near-term price increases and may expose us to other risks;
|
•
|
changes in federal or state income tax laws, particularly in the area of percentage depletion and intangible drilling costs, could cause our financial position and profitability to deteriorate;
|
•
|
failure to appropriately allocate capital and other resources among our strategic opportunities may adversely affect our financial condition;
|
•
|
failure by Murray Energy to satisfy liabilities it acquired from us, or failure to perform its obligations under various arrangements, which we guaranteed, could materially or adversely affect our results of operations, financial position, and cash flows;
|
•
|
information theft, data corruption, operational disruption and/or financial loss resulting from a terrorist attack or cyber incident;
|
•
|
operating in a single geographic area;
|
•
|
certain provisions in our multi-year 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 CNX Coal Resources LP and CONE Midstream Partners LP are subordinated, and we may not receive distributions from CNX Coal Resources LP or CONE Midstream Partners LP;
|
•
|
with respect to the sale of the Buchanan and Amonate mines and other coal assets to Coronado IV LLC, any disruption to our business, including customer, employee and supplier relationships resulting from this transaction, and the impact of the transaction on our future operating results;
|
•
|
there is no assurance that the potential drop-downs, spin-off or sale of the coal business will occur, or if it does occur that we will be able to negotiate favorable terms;
|
•
|
with respect to the termination of the joint venture with Noble, any disruption to our business, including customer and supplier relationships from this transaction, and the impact of the transaction on our future operating and financial results and liquidity; and
|
•
|
other factors discussed in the 2016 Form 10-K under “Risk Factors,” as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
For the Three Months Ended
|
|
|
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
Total Year
|
||||||||||
2017 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
N/A
|
|
76.1
|
|
|
81.0
|
|
|
81.0
|
|
|
238.1
|
|
||||||
Weighted Average Hedge Price per Mcf
|
N/A
|
|
$
|
2.62
|
|
|
$
|
2.59
|
|
|
$
|
2.65
|
|
|
$
|
2.63
|
|
||
2018 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
69.8
|
|
|
70.6
|
|
|
71.4
|
|
|
71.4
|
|
|
283.2
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.89
|
|
|
$
|
2.90
|
|
|
$
|
2.90
|
|
|
$
|
2.90
|
|
|
$
|
2.89
|
|
2019 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
51.2
|
|
|
51.8
|
|
|
52.4
|
|
|
52.3
|
|
|
207.7
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.86
|
|
|
$
|
2.86
|
|
|
$
|
2.86
|
|
|
$
|
2.86
|
|
|
$
|
2.86
|
|
2020 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
31.8
|
|
|
31.1
|
|
|
31.4
|
|
|
31.4
|
|
|
124.9*
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.98
|
|
|
$
|
2.86
|
|
|
$
|
2.86
|
|
|
$
|
2.84
|
|
|
$
|
2.88
|
|
2021 Fixed Price Volumes
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedged Bcf
|
6.9
|
|
|
7.0
|
|
|
7.1
|
|
|
6.6
|
|
|
27.6
|
|
|||||
Weighted Average Hedge Price per Mcf
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
2.66
|
|
|
$
|
2.58
|
|
|
$
|
2.64
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 6.
|
EXHIBITS
|
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
32.1
|
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
32.2
|
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
||
95
|
|
|
Mine Safety and Health Administration Safety Data.
|
|
|
||
101
|
|
|
Interactive Data File (Form 10-Q for the quarterly period ended March 31, 2017 furnished in XBRL).
|
CONSOL ENERGY INC.
|
|||
|
|
|
|
|
By:
|
|
/s/ NICHOLAS J. DEIULIIS
|
|
|
|
Nicholas J. DeIuliis
|
|
|
|
Chief Executive Officer and President and Director
(Duly Authorized Officer and Principal Executive Officer)
|
|
|
|
|
|
By:
|
|
/
S
/ DAVID M. KHANI
|
|
|
|
David M. Khani
|
|
|
|
Chief Financial Officer and Executive Vice President
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
|
By:
|
|
/
S
/ C. KRISTOPHER HAGEDORN
|
|
|
|
C. Kristopher Hagedorn
|
|
|
|
Vice President and Controller
(Duly Authorized Officer and Principal Accounting Officer)
|
1 Year CONSOL Energy, Inc. Chart |
1 Month CONSOL Energy, Inc. Chart |
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