EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

LOGO

Investor Contact: Dan Zajdel at (724) 485-4169

Media Contact: Joe Cerenzia at (724) 485-4062

CNX Gas Reports Quarterly Net Income of $41.1 Million, or $0.27 per Share;

Annual 2009 Net Income of $164.5 million, or $1.09 per Share;

CNX Gas Reports Record Quarterly Production of 25.1 Bcf;

Record Annual 2009 Production of 94.4 Bcf, up 23% from 2008

Pittsburgh, PA (January 28, 2010) – CNX Gas Corporation (NYSE: CXG), a leading Appalachian producer, reported net income attributable to CNX Gas shareholders of $41.1 million, or $0.27 per diluted share, for the quarter ended December 31, 2009. This compares to $57.5 million, or $0.38 per diluted share, for the quarter ended December 31, 2008. Annual 2009 net income attributable to CNX Gas shareholders was $164.5 million, or $1.09 per share, compared to $239.1 million, or $1.58 per share, in 2008.

Production was 25.1 billion cubic feet (Bcf), or 273 million cubic feet (MMcf) per day, for the quarter ended December 31, 2009. This was the third consecutive quarterly production record, and 13% higher than the 22.2 Bcf, or 242 MMcf per day, for the year-ago quarter. Annual 2009 production was 94.4 Bcf, an increase of 23% over the 76.6 Bcf produced in 2008.

“CNX Gas ended 2009 on a very strong footing. Once again, we set another quarterly production record, and our employees continued working safely, having passed the 4-million hour mark without incurring a lost-time incident,” said J. Brett Harvey, chairman and chief executive officer. “With our increasing Virginia coalbed methane production and our continued Marcellus Shale success, we expect 2010 production of 100 Bcf. To support this goal, we have contracted for a second horizontal rig to begin drilling in the Marcellus Shale on March 1.

“CNX Gas increased production by 23% in 2009 while paying down about $15 million of debt. And as we reported earlier this week, we also increased our proved reserves in 2009 by one-half trillion cubic feet (Tcf), or 34%, to 1.9 Tcf. When viewed together with our 2009 return on capital employed of 10.6% on an after-tax basis, there is no doubt that CNX Gas is a premier company in the E&P industry.”

TABLE 1

FINANCIAL AND OPERATIONAL RESULTS - Period-To-Period

 

     Quarter
Ended
Dec. 31, 2009
   Quarter
Ended
Dec. 31, 2008
   Twelve Months
Ended

Dec. 31, 2009
   Twelve Months
Ended

Dec. 31, 2008

Total Revenue and Other Income

   $ 177.8    $ 206.1    $ 683.4    $ 789.4

Net Income attributable to CNX Gas shareholders

   $ 41.1    $ 57.5    $ 164.5    $ 239.1

Earnings per Share - Diluted

   $ 0.27    $ 0.38    $ 1.09    $ 1.58

Net Cash from Operating Activities

   $ 80.7    $ 140.5    $ 360.2    $ 447.4

EBITDA

   $ 93.4    $ 113.7    $ 377.9    $ 470.2

EBIT

   $ 64.8    $ 94.1    $ 270.6    $ 400.1

Total Period Production (Bcf)

     25.1      22.2      94.4      76.6

Average Daily Production (MMcf)

     273      242      259      209

Capital Expenditures

   $ 63.4    $ 154.5    $ 336.4    $ 560.7

Financial results are in millions of dollars except per share amounts. Production results are net of royalties.


Quarter-to-Quarter Analysis

The average price realized for the company’s gas production was $6.47 per Mcf for the quarter ended December 31, 2009, or $1.88 lower than the $8.35 per Mcf received for the quarter ended December 31, 2008. The average realized price for the just-ended quarter included 15.3 Bcf hedged at $7.90 per Mcf.

All-in unit costs for company production, exclusive of royalties, were $3.47 per Mcf in the just-ended quarter, or a decrease of $0.13 from the $3.60 per Mcf for the quarter ended December 31, 2008.

Pre-tax unit margins for company production were $3.00 per Mcf in the just-ended quarter, a decrease of $1.75 from the $4.75 per Mcf in the quarter ended December 31, 2008.

TABLE 2

PRICE AND COST DATA PER NET MCF - Period-To-Period Comparison

 

     Quarter
Ended
Dec. 31, 2009
   Quarter
Ended
Dec. 31, 2008
   Twelve Months
Ended

Dec. 31, 2009
   Twelve Months
Ended

Dec. 31, 2008

Average Sales Price

   $ 6.47    $ 8.35    $ 6.68    $ 8.99

Costs – Production

           

Lifting

   $ 0.54    $ 0.60    $ 0.52    $ 0.63

Production Taxes

   $ 0.10    $ 0.19    $ 0.06    $ 0.26

DD&A

   $ 0.92    $ 0.67    $ 0.91    $ 0.66
                           

Total Production Costs

   $ 1.56    $ 1.46    $ 1.49    $ 1.55

Costs – Gathering

           

Operating Costs

   $ 0.81    $ 0.92    $ 0.78    $ 0.94

Transportation

   $ 0.25    $ 0.19    $ 0.23    $ 0.15

DD&A

   $ 0.22    $ 0.21    $ 0.23    $ 0.25
                           

Total Gathering Costs

   $ 1.28    $ 1.32    $ 1.24    $ 1.34
                           

Costs – Administration

   $ 0.63    $ 0.82    $ 0.71    $ 0.77

Total Costs

   $ 3.47    $ 3.60    $ 3.44    $ 3.66
                           

Margin

   $ 3.00    $ 4.75    $ 3.24    $ 5.33

Note: Costs – Administration exclude incentive compensation and other corporate items.

Unit lifting costs were lower in the just-ended quarter, in part, because of fewer workovers conducted. Water volumes from CBM production were down, as were water handling rates due to reduced drilling. Lower water volumes also contributed to lower road maintenance costs. Higher gas production volumes also helped to lower unit lifting costs.

Unit production taxes were much lower in the just-ended quarter because they are calculated on average realized price before the effect of hedging. Due to market conditions, these prices were significantly lower in the just-ended quarter. Unit production taxes were also lower because of a revised estimate of a pending litigation settlement.

Unit production DD&A was higher in the just-ended quarter as more plant assets in Northern Appalachia were placed into service.

Higher production volumes helped to lower unit gathering operating costs.

 

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Unit firm transportation costs have increased due to acquiring additional capacity in the Northern Appalachian region in anticipation of greater production volumes.

Safety

During the fourth quarter, CNX Gas employees crossed the 4-million hour mark without incurring a lost time accident. As of December 31, the cumulative time worked by employees without a lost time incident was nearly 4.1 million hours.

Central Appalachia Operations

Total production in Central Appalachia, which includes Virginia CBM and Chattanooga Shale, was 19.2 Bcf in the quarter ended December 31, 2009. This was 1.2 Bcf higher than the 18.0 Bcf produced in the quarter ended December 31, 2008. The Central Appalachia December run rate was 199 MMcf per day.

CNX Gas drilled 201 vertical frac wells in its Virginia CBM Operations during the year, exceeding the goal of 175. CNX Gas expects to drill 175 wells in Virginia in 2010 with a drilling budget of $50 million.

For 2010, CNX Gas expects to drill 25 Chattanooga Shale wells for about $28 million, and five Huron Shale wells for about $12 million.

Northern Appalachia Operations

Total production in Northern Appalachia, which includes Mountaineer CBM, Nittany CBM, and Marcellus Shale, was 5.9 Bcf in the quarter ended December 31, 2009. This was 1.7 Bcf more than the 4.2 Bcf produced in the quarter ended December 31, 2008. The Northern Appalachia December run rate was 63 MMcf per day.

Of this Northern Appalachian production, 1.5 Bcf was from the Marcellus Shale in the just-ended quarter, versus less than 0.1 Bcf in the same quarter last year.

No coalbed methane wells were drilled in Northern Appalachia in the just-ended quarter. For 2010, CNX Gas expects to drill 5 horizontal CBM wells in Mountaineer and some ancillary wells for about $17 million.

In the Marcellus Shale, CNX Gas drilled, completed, and brought online one vertical well and two horizontal wells. The first of the two horizontal wells, GH 11C CV, has shown a 30-day daily production rate of 1.6 MMcf. This well has only 1,600 lateral feet, due to acreage constraints. The second horizontal well, GH 11B CV, is currently producing from only the first two frac stages at a 30-day production rate of 0.8 MMcf. This 1,800-ft lateral well is expected to see more normal levels of production when the remaining 3 stages are fraced.

For the entire horizontal Marcellus Shale program to date, 13 horizontal wells have been drilled. The reserves associated with the first 11 wells total 35.6 Bcf, or about 3.3 Bcf per well. The laterals on these wells averaged less than 2,000 feet.

Upcoming drilling in the Marcellus Shale is expected to be predominantly horizontal and on multiple-well pads, with laterals closer to 3,000 feet. For 2010, the company expects to drill approximately two dozen horizontal wells, with a drilling budget of about $110 million.

CNX Gas successfully increased its acreage with Marcellus Shale potential by 20,000 in the quarter, to a year-end total of 250,000. Of this, approximately 170,000 acres is considered to be Tier 1. The company remains committed to expanding its footprint to 400,000 acres.

Financial Update

The company continues to monitor and evaluate capital spending to ensure adequate liquidity and to preserve options for possible external investment. With regard to capital, CNX Gas intends to spend largely within its net

 

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cash from operating activities for 2010. Capital expenditures are targeted for $400 million, with $221 for drilling, $121 million for midstream, and the remainder for land.

The company ended the quarter with $57.8 million drawn on its $200 million credit facility. The amount drawn is down $15.2 million from September 30, 2009. Cash on hand was $1.1 million.

CNX Gas also has outstanding letters of credit of $14.9 million. Total funds available are $128.4 million.

Return on capital employed for the year was 10.6%, on an after tax basis, compared to 18.5% in 2008.

Guidance

The 2010 production guidance remains at 100 Bcf. CNX Gas expects to be able to achieve this production by adding a second horizontal rig drilling in the Marcellus Shale on March 1, the continued drilling of CBM frac wells in Virginia, and some ancillary drilling. While 2010 plans could be refined later in the year, the company views this as a realistic starting point.

Total hedged production in the 2010 first quarter is 13.0 Bcf, at an average price of $8.76 per Mcf.

TABLE 3

GUIDANCE

 

     Actual 2009    2010    2011    2012

Total Yearly Production (Bcf)

     94.4      100      NA      NA

Volumes Hedged (Bcf)

     51.6      47.5      22.6      15.1

Average Hedge Price ($/Mcf)

   $ 8.76    $ 7.88    $ 6.84    $ 6.84

Economic Outlook

The U.S. economy began growing in the third quarter of 2009, at an annual rate of 2.2% and continued growing in the fourth quarter. Due to the significant fiscal spending and relaxed monetary policy in the United States, a modest recovery appears likely to continue in the U.S. through 2010. This should lead to an increase in demand for energy products from industrial customers, power generators and steel producers. Depending on the pace and sustainability of the recovery, we believe substantial opportunities exist for our gas business.

Natural Gas Outlook

At the onset of the winter heating season, natural gas in storage fields was at record high levels. Because of much colder than normal weather in much of the U.S. from mid-December through mid-January, gas in storage has been drawn down to normal levels. The economic recovery is expected to positively affect industrial and commercial demand. Gas prices have now strengthened to the point where it makes sense for CNX Gas to add a second horizontal rig to its Marcellus Shale drilling program for 2010. CNX Gas, with its low costs and rising production volumes, is expected to benefit from this improved pricing.

Conference Call Information

CNX Gas and CONSOL Energy will co-host a conference call today at 10:00 a.m. Eastern Standard Time to discuss the company’s fourth quarter results. The teleconference can be heard “live” at the investor relations portion of the company web site: www.cnxgas.com.

Definition: EBIT is defined as earnings (excluding cumulative effect of accounting change) before deducting net interest expense (interest expense less interest income) and income taxes. EBITDA is defined as earnings (excluding cumulative effect of accounting change) before deducting net interest expense (interest expense less interest income), income taxes, and depreciation, depletion and amortization. Although EBIT and EBITDA are not measures of performance calculated in accordance with generally accepted accounting principles, management believes that they are useful to an investor in evaluating CNX Gas because they are widely used to evaluate a company’s operating performance before debt expense and its cash flow. EBIT and EBITDA do

 

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not purport to represent cash generated by operating activities and should not be considered in isolation or as a substitute for measures of performance in accordance with generally accepted accounting principles. In addition, because all companies do not calculate EBIT and EBITDA identically, the presentation here may not be comparable to similarly titled measures of other companies. Reconciliation of EBITDA and EBIT to the income statement is as follows:

CNX Gas

EBIT & EBITDA Reconciliation

(000) Omitted

 

     Quarter
Ended
Dec. 31, 2009
    Quarter
Ended
Dec. 31, 2008
    Twelve Months
Ended
Dec. 31, 2009
    Twelve Months
Ended
Dec. 31, 2008
 

Net Income attributable to CNX Gas shareholders

   $ 41,111      $ 57,482      $ 164,462      $ 239,073   

Add: Interest Expense

     1,815        2,253        7,568        7,820   

Less: Interest Income

     (4     (42     (64     (400

Add: Income Taxes

     21,856        34,369        98,636        153,656   
                                

Earnings Before Interest

& Taxes (EBIT)

     64,778        94,062        270,602        400,149   

Add: Depreciation, Depletion, & Amortization

     28,670        19,670        107,251        70,010   
                                

EBITDA

   $ 93,448      $ 113,732      $ 377,853      $ 470,159   
                                

CNX Gas

Capital Employed and Return on Capital Employed

(000) Omitted

Capital employed is a measure of net investment. When viewed from the perspective of how the capital is used, it includes CNX Gas’ property, plant, and equipment and other assets less liabilities.

 

Capital Employed

   As of
December 31,
2009
    As of
December 31,
2008
 

Total assets

   $ 2,171,382      $ 2,124,973   

Less liabilities:

    

Total current liabilities (other than current portion of indebtedness)

     (150,778     (199,888

Total long-term liabilities (other than indebtedness)

     (381,548     (384,367
                

Total Capital Employed

   $ 1,639,056      $ 1,540,718   
                

Return on average capital employed (ROCE) is a performance measure ratio. ROCE is defined as net income plus after-tax interest expense, divided by average capital employed. Below is a calculation of ROCE for the year 2009.

 

Return on Capital Employed

   Year Ended
December 31,
2009
 

Net Income

   $ 164,462   

Financing costs (after-tax):

     (4,731
        

Earnings excluding financing costs

   $ 169,193   

Average capital employed

   $ 1,589,887   

Return on average capital employed

     10.6

 

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Although ROCE is not a measure of performance calculated in accordance with generally accepted accounting principles, management believes that ROCE is a useful measure because it indicates the return on all capital, which includes equity and debt, employed in the business. Management believes that ROCE is an additional measure of efficiency when considered in conjunction with return on equity, which measures the return on only the shareholders’ equity component of total capital employed.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Various statements in this document, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995). The forward-looking statements may include projections and estimates concerning the timing and success of specific projects, our future production, revenues, income and capital spending. When we use the words “believe,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “would,” “will,” “estimate,” “plan,” “predict,” “project,” or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this document speak only as of the date of this document; we disclaim any obligation to update these statements unless required by securities law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, uncertainties and contingencies include, but are not limited to: our business strategy; our financial position, cash flow and liquidity; the deteriorating economic conditions in the United States and globally; declines in the prices we receive for our gas affecting our operating results and cash flow; uncertainties in estimating our gas reserves and replacing our gas reserves; uncertainties in exploring for and producing gas; our inability to obtain additional financing necessary in order to fund our operations, capital expenditures and to meet our other obligations; disruptions to, capacity constraints in or other limitations on the pipeline systems which deliver our gas; the cost of disposing of water from our coalbed methane and Marcellus Shale gas wells; the cost of removing impurities from the gas we produce; the availability of personnel and equipment, including our inability to retain and attract key personnel; increased costs; the effects of government regulation, permitting and other legal requirements; legal uncertainties regarding the ownership of the coalbed methane estate, and costs associated with perfecting title for gas rights in some of our properties; litigation concerning real property rights, intellectual property rights, royalty calculations and other matters; our relationships and arrangements with CONSOL Energy; and other factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 under “Risk Factors,” as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.

 

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CNX GAS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

 

     For the Three
Months Ended
December 31,
   For the Twelve
Months Ended
December 31,
     2009     2008    2009     2008

Revenue and Other Income:

         

Outside Sales

   $ 161,692      $ 184,169    $ 627,419      $ 678,793

Related Party Sales

     919        1,497      3,179        9,532

Royalty Interest Gas Sales

     11,210        17,381      40,951        79,302

Purchased Gas Sales

     2,938        1,604      7,040        8,464

Other Income

     1,040        1,401      4,855        13,330
                             

Total Revenue and Other Income

     177,799        206,052      683,444        789,421

Costs and Expenses:

         

Lifting Costs

     16,056        17,477      55,285        67,653

Gathering and Compression Costs

     26,552        24,718      95,687        83,752

Royalty Interest Gas Costs

     9,073        14,984      32,423        74,041

Purchased Gas Costs

     3,419        1,568      6,442        8,175

Exploration and Other Costs

     2,152        3,986      17,201        4,995

General and Administrative

     15,958        18,181      66,655        59,244

Other Corporate Expenses

     11,352        11,364      32,871        21,002

Depreciation, Depletion and Amortization

     28,670        19,670      107,251        70,010

Interest Expense

     1,815        2,253      7,568        7,820
                             

Total Costs and Expenses

     115,047        114,201      421,383        396,692
                             

Earnings Before Income Taxes and Noncontrolling Interest

     62,752        91,851      262,061        392,729

Noncontrolling Interest

     (215        (1,037  
                             

Earnings Before Income Taxes

     62,967        91,851      263,098        392,729

Income Taxes

     21,856        34,369      98,636        153,656
                             

Net Income Attributable to CNX Gas Shareholders

   $ 41,111      $ 57,482    $ 164,462      $ 239,073
                             

Earnings Per Share:

         

Basic

   $ 0.27      $ 0.38    $ 1.09      $ 1.58
                             

Dilutive

   $ 0.27      $ 0.38    $ 1.09      $ 1.58
                             

Weighted Average Number of Common Shares Outstanding:

         

Basic

     150,985,412        150,971,636      150,977,235        150,947,516
                             

Dilutive

     151,397,310        151,240,785      151,325,146        151,331,953
                             

 

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CNX GAS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

 

 

     December 31,
2009
   December 31,
2008
ASSETS      

Current Assets:

     

Cash and Cash Equivalents

   $ 1,124    $ 1,926

Accounts and Notes Receivable:

     

Trade

     43,421      61,764

Other Receivables

     975      3,080

Recoverable Income Taxes

     —        30,302

Derivatives

     99,265      150,564

Other

     3,829      2,222
             

Total Current Assets

     148,614      249,858

Property, Plant and Equipment:

     

Property, Plant and Equipment

     2,409,751      2,113,570

Less - Accumulated Depreciation, Depletion and Amortization

     433,201      322,470
             

Total Property, Plant and Equipment - Net

     1,976,550      1,791,100

Other Assets:

     

Investment in Affiliates

     24,591      25,204

Derivatives

     18,218      55,945

Other

     3,409      2,866
             

Total Other Assets

     46,218      84,015
             

TOTAL ASSETS

   $ 2,171,382    $ 2,124,973
             

 

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CNX GAS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

 

 

     December 31,
2009
    December 31,
2008
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current Liabilities:

    

Accounts Payable

   $ 53,516      $ 100,565

Accrued Royalties

     14,898        20,301

Accrued Severance Taxes

     1,037        3,672

Related Parties

     5,171        2,234

Short-Term Notes Payable

     57,850        72,700

Deferred Income Taxes

     34,871        55,000

Accrued Income Taxes

     31,765        —  

Current Portion of Long-Term Debt

     8,616        8,462

Other Current Liabilities

     9,520        18,116
              

Total Current Liabilities

     217,244        281,050

Long-Term Debt:

    

Long-Term Debt

     10,062        15,386

Capital Lease Obligations

     55,628        59,296
              

Total Long-Term Debt

     65,690        74,682

Deferred Credits and Other Liabilities:

    

Deferred Income Taxes

     334,493        331,338

Gas Well Plugging

     8,312        7,401

Postretirement Benefits Other Than Pensions

     3,642        2,728

Other

     35,101        42,900
              

Total Deferred Credits and Other Liabilities

     381,548        384,367

Total Liabilities

     664,482        740,099

Stockholders’ Equity:

    

Common Stock, $.01 par value;
200,000,000 Shares Authorized, 150,986,918 Issued and Outstanding at December 31, 2009 and 150,971,636 Issued and Outstanding at December 31, 2008

     1,510        1,510

Capital in Excess of Par Value

     806,527        789,625

Preferred Stock, 5,000,000 Shares Authorized; None Issued and Outstanding

     —          —  

Retained Earnings

     633,417        468,955

Other Comprehensive Income

     69,816        124,784
              

Total CNX Gas Shareholders’ Equity

     1,511,270        1,384,874

Noncontrolling Interest

     (4,370     —  
              

Total Equity

     1,506,900        1,384,874
              

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 2,171,382      $ 2,124,973
              

 

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CNX GAS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

 

 

     For the Three Months Ended
December 31,
    For the Twelve Months Ended
December 31,
 
     2009     2008     2009     2008  

Operating Activities:

        

Net Income Attributable to CNX Gas Shareholders

   $ 41,111      $ 57,482      $ 164,462      $ 239,073   

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

        

Depreciation, Depletion and Amortization

     28,670        19,670        107,251        70,010   

Stock-based Compensation

     673        843        6,311        3,378   

(Gain) Loss on the Sale of Assets

     (13     —          72        —     

Change in Noncontrolling Interest

     (215     —          (1,037     —     

Deferred Income Taxes

     (6,889     57,962        31,896        117,870   

Equity in Earnings of Affiliates

     13        (199     (637     (551

Changes in Operating Assets:

        

Accounts Receivable

     (15,711     6,136        20,448        (21,789

Related Party Receivable

     1,881        3,064        2,937        3,256   

Other Current Assets

     (1,863     (346     (1,607     191   

Changes in Other Assets

     445        (382     (505     3,861   

Changes in Operating Liabilities:

        

Accounts Payable

     8,296        20,708        (21,845     33,531   

Income Taxes

     20,090        (34,521     52,572        (28,515

Other Current Liabilities

     1,171        (209     (15,614     16,668   

Changes in Other Liabilities

     727        9,031        (1,369     10,611   

Other

     2,317        1,217        16,828        (219
                                

Net Cash Provided by Operating Activities

     80,703        140,456        360,163        447,375   

Investing Activities:

        

Capital Expenditures

     (63,428     (154,483     (336,447     (524,663

Acquisition of Knox Energy

     —          —          —          (36,000

Investment in Equity Affiliates

     —          —          1,250        1,081   

Proceeds From Sale of Assets

     13        —          288        450   
                                

Net Cash Used in Investing Activities

     (63,415     (154,483     (334,909     (559,132

Financing Activities:

        

Capital Lease Payments

     (936     (711     (3,750     (2,769

Variable Interest Entity Debt

     (1,114     (952     (5,218     11,032   

(Payment on) Proceeds from Short-Term Borrowings

     (15,200     14,500        (14,850     72,700   

Exercise of Stock Options

     85        (196     200        292   

Noncontrolling Interest Distribution

     —          —          (2,500     —     

Tax Benefit from Stock-Based Compensation

     33        196        62        380   
                                

Net Cash (Used in) Provided by Financing Activities

     (17,132     12,837        (26,056     81,635   
                                

Net Decrease in Cash and Cash Equivalents

     156        (1,190     (802     (30,122

Cash and Cash Equivalents at Beginning of Period

     968        3,116        1,926        32,048   
                                

Cash and Cash Equivalents at End of Period

   $ 1,124      $ 1,926      $ 1,124      $ 1,926   
                                

 

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CNX GAS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Dollars in Thousands - except per share data)

 

 

     Common
Stock
   Capital in
Excess of
Par Value
   Retained
Earnings
   Accumulated
Other
Comprehensive
Income

(Loss)
    Total CNX
Gas
Stockholders’
Equity
    Non-
controlling
Interest
    Total
Equity
 

Balance - December 31, 2008

   $ 1,510    $ 789,625    $ 468,955    $ 124,784      $ 1,384,874      $ —        $ 1,384,874   
                                                     
(Unaudited)                  

Net Income Attributable to CNX Gas Shareholders

     —        —        164,462      —          164,462        —          164,462   

Gas Cash Flow Hedge (net of $34,932 tax)

     —        —        —        (53,132     (53,132     —          (53,132

Actuarially Determined Liabilities Adjustment (Net of $1,185 tax)

     —        —        —        (1,836     (1,836     —          (1,836
                                                     

Comprehensive Income (Loss)

     —        —        164,462      (54,968     109,494          109,494   

Stock Options Exercised

     —        200      —        —          200        —          200   

Tax Benefit from Stock-Based Compensation

     —        44      —        —          44        —          44   

Amortization of Restricted Stock Unit Grants

     —        15,119      —        —          15,119        —          15,119   

Amortization of Stock Option Grants

     —        1,539      —        —          1,539        —          1,539   

Noncontrolling Interest

     —        —        —        —          —          (4,370     (4,370
                                                     

Balance - December 31, 2009

   $ 1,510    $ 806,527    $ 633,417    $ 69,816      $ 1,511,270      $ (4,370   $ 1,506,900   
                                                     

 

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