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 | 82-1954058 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Page | ||
Part I. Financial Information | ||
Item 1. | Financial Statements | |
Consolidated Statements of Income for the three and nine months ended September 30, 2018 and 2017 | ||
Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 | ||
Consolidated Balance Sheets at September 30, 2018 and December 31, 2017 | ||
Consolidated Statement of Stockholders' Equity for the nine months ended September 30, 2018 | ||
Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017 | ||
Notes to Unaudited Consolidated Financial Statements | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 4. | ||
Item 6. | ||
• | “we,” “our,” “us,” “our Company,” “the Company” and “CONSOL Energy” refer to CONSOL Energy Inc. and its subsidiaries on or after November 28, 2017 and to CONSOL Mining Corporation and its subsidiaries prior to November 28, 2017, except to the extent of any discussion of the financial condition, results of operations, cash flows, and other business activities of the Company on or prior to November 28, 2017 that relate specifically to the Coal Business, in which case such references shall be to the Predecessor; |
• | “Btu” means one British Thermal unit; |
• | “Coal Business” prior to November 28, 2017 refers to all of ParentCo’s interest in the Pennsylvania Mining Operations (PAMC) and certain related coal assets, including ParentCo’s ownership interest in the Partnership, which owns a 25% undivided interest stake in PAMC, as well as ParentCo’s ownership of the CONSOL Marine Terminal and undeveloped coal reserves (Greenfield Reserves) located in the Northern Appalachian, Central Appalachian and Illinois basins and certain related coal assets and liabilities. References in this report to historical assets, liabilities, products, businesses or activities generally refer to the historical assets, liabilities, products, businesses or activities of the Coal Business as it was conducted as part of ParentCo prior to the completion of the separation and distribution; |
• | “Coal Business” on or after November 28, 2017 refers to CONSOL Energy Inc.’s interest in the Coal Business; |
• | “distribution” refers to the pro rata distribution of the Company’s issued and outstanding shares of common stock to ParentCo stockholders as of the close of business on the record date for the distribution; |
• | “CONSOL Marine Terminal” refers to the terminal operations located at the Port of Baltimore that were transferred from ParentCo to the Company as part of the separation. Prior to November 28, 2017, the CONSOL Marine Terminal was named CNX Marine Terminal. As part of the separation and distribution on November 28, 2017, the terminal changed its name to CONSOL Marine Terminal; |
• | the “General Partner” refers to CONSOL Coal Resources GP LLC, a Delaware limited liability company, formerly known as CNX Coal Resources GP LLC; |
• | “GasCo” refers to ParentCo after the completion of the separation and distribution. Prior to November 28, 2017, ParentCo was named CONSOL Energy Inc. In connection with the separation and distribution on November 28, 2017, ParentCo changed its name to CNX Resources Corporation, and its business is now comprised of ParentCo’s oil and natural gas exploration and production business, focused on Appalachian area natural gas and liquids activity, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin (collectively, the “Gas Business”); |
• | “Greenfield Reserves” means those undeveloped reserves owned by the Company in the Northern Appalachian, Central Appalachian and Illinois basins; |
• | “mmBtu” means one million British Thermal units; |
• | “ParentCo” or “CNX” refers to CNX Resources Corporation and its consolidated subsidiaries on or after November 28, 2017 and to CONSOL Energy Inc. and its consolidated subsidiaries prior to November 28, 2017 (including the Company and the Coal Business prior to completion of the separation and distribution on November 28, 2017); |
• | “Partnership” or “CCR” refers to a Delaware limited partnership that holds a 25% undivided interest in, and is the sole operator of, the Pennsylvania Mining Complex. Prior to November 28, 2017, the Partnership was named CNX Coal Resources LP and its common units traded on the New York Stock Exchange under the ticker “CNXC.” As part of the separation and distribution on November 28, 2017, the Partnership changed its name to CONSOL Coal Resources LP and changed its NYSE ticker to “CCR”; |
• | “Pennsylvania Mining Complex” or “PAMC” refers to coal mines, coal reserves and related assets and operations, located primarily in southwestern Pennsylvania and owned 75% by the Company and 25% by the Partnership; |
• | “Predecessor” historical assets, liabilities, products, businesses or activities generally refers to the historical assets, liabilities, products, businesses or activities of the Coal Business as the business was conducted as part of ParentCo prior to the completion of the separation; and |
• | “separation” refers to the separation of the Coal Business from ParentCo’s other businesses and the creation, as a result of the distribution, of an independent, publicly-traded company (the Company) to hold the assets and liabilities associated with the Coal Business after the distribution. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Revenue and Other Income: | 2018 | 2017 | 2018 | 2017 | |||||||||||
Coal Revenue | $ | 294,797 | $ | 279,245 | $ | 1,016,503 | $ | 899,400 | |||||||
Terminal Revenue | 16,115 | 15,065 | 47,995 | 42,806 | |||||||||||
Freight Revenue | 2,443 | 21,803 | 37,774 | 51,847 | |||||||||||
Miscellaneous Other Income | 10,978 | 19,713 | 47,234 | 52,508 | |||||||||||
(Loss) Gain on Sale of Assets | (85 | ) | (513 | ) | 273 | 13,024 | |||||||||
Total Revenue and Other Income | 324,248 | 335,313 | 1,149,779 | 1,059,585 | |||||||||||
Costs and Expenses: | |||||||||||||||
Operating and Other Costs | 222,781 | 229,527 | 700,778 | 682,403 | |||||||||||
Depreciation, Depletion and Amortization | 51,242 | 46,653 | 155,674 | 124,914 | |||||||||||
Freight Expense | 2,443 | 21,803 | 37,774 | 51,847 | |||||||||||
Selling, General and Administrative Costs | 18,526 | 21,180 | 47,715 | 58,597 | |||||||||||
Loss on Debt Extinguishment | — | — | 3,149 | — | |||||||||||
Interest Expense, net | 20,862 | 3,862 | 63,411 | 11,828 | |||||||||||
Total Costs and Expenses | 315,854 | 323,025 | 1,008,501 | 929,589 | |||||||||||
Earnings Before Income Tax | 8,394 | 12,288 | 141,278 | 129,996 | |||||||||||
Income Tax (Benefit) Expense | (690 | ) | 3,770 | 8,527 | 22,787 | ||||||||||
Net Income | 9,084 | 8,518 | 132,751 | 107,209 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interest | 3,350 | 790 | 19,447 | 10,567 | |||||||||||
Net Income Attributable to CONSOL Energy Inc. Shareholders | $ | 5,734 | $ | 7,728 | $ | 113,304 | $ | 96,642 | |||||||
Earnings per Share: | |||||||||||||||
Total Basic Earnings per Share | $ | 0.20 | $ | 0.28 | $ | 4.04 | $ | 3.46 | |||||||
Total Dilutive Earnings per Share | $ | 0.20 | $ | 0.28 | $ | 3.97 | $ | 3.46 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Income | $ | 9,084 | $ | 8,518 | $ | 132,751 | $ | 107,209 | |||||||
Other Comprehensive Income: | |||||||||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($1,232), ($1,893), ($3,697), ($5,679)) | 4,177 | 3,285 | 12,356 | 9,855 | |||||||||||
Other Comprehensive Income | 4,177 | 3,285 | 12,356 | 9,855 | |||||||||||
Comprehensive Income | $ | 13,261 | $ | 11,803 | $ | 145,107 | $ | 117,064 | |||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest | 3,346 | 779 | 19,444 | 10,533 | |||||||||||
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders | $ | 9,915 | $ | 11,024 | $ | 125,663 | $ | 106,531 |
(Unaudited) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 250,452 | $ | 153,979 | |||
Accounts and Notes Receivable | |||||||
Trade | 78,649 | 131,545 | |||||
Other Receivables | 29,208 | 36,552 | |||||
Inventories | 52,470 | 53,420 | |||||
Prepaid Expenses and Other Assets | 58,123 | 23,744 | |||||
Total Current Assets | 468,902 | 399,240 | |||||
Property, Plant and Equipment: | |||||||
Property, Plant and Equipment | 4,796,141 | 4,676,353 | |||||
Less—Accumulated Depreciation, Depletion and Amortization | 2,692,450 | 2,554,056 | |||||
Total Property, Plant and Equipment—Net | 2,103,691 | 2,122,297 | |||||
Other Assets: | |||||||
Deferred Income Taxes | 72,120 | 75,065 | |||||
Other | 101,215 | 110,497 | |||||
Total Other Assets | 173,335 | 185,562 | |||||
TOTAL ASSETS | $ | 2,745,928 | $ | 2,707,099 |
(Unaudited) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 102,401 | $ | 109,100 | |||
Current Portion of Long-Term Debt | 20,945 | 22,482 | |||||
Other Accrued Liabilities | 249,758 | 290,627 | |||||
Total Current Liabilities | 373,104 | 422,209 | |||||
Long-Term Debt: | |||||||
Long-Term Debt | 826,777 | 856,650 | |||||
Capital Lease Obligations | 30,234 | 8,639 | |||||
Total Long-Term Debt | 857,011 | 865,289 | |||||
Deferred Credits and Other Liabilities: | |||||||
Postretirement Benefits Other Than Pensions | 541,373 | 554,099 | |||||
Pneumoconiosis Benefits | 151,676 | 149,868 | |||||
Asset Retirement Obligations | 236,191 | 228,343 | |||||
Workers’ Compensation | 65,346 | 66,648 | |||||
Salary Retirement | 39,921 | 52,960 | |||||
Other | 18,845 | 24,042 | |||||
Total Deferred Credits and Other Liabilities | 1,053,352 | 1,075,960 | |||||
TOTAL LIABILITIES | 2,283,467 | 2,363,458 | |||||
Stockholders' Equity: | |||||||
Common Stock, $0.01 Par Value; 62,500,000 Shares Authorized, 27,815,470 Issued and Outstanding at September 30, 2018; 27,973,281 Issued and Outstanding at December 31, 2017 | 278 | 280 | |||||
Capital in Excess of Par Value | 549,507 | 552,793 | |||||
Retained Earnings (Deficit) | 148,619 | (43,713 | ) | ||||
Accumulated Other Comprehensive Loss | (377,470 | ) | (305,100 | ) | |||
Total CONSOL Energy Inc. Stockholders' Equity | 320,934 | 204,260 | |||||
Noncontrolling Interest | 141,527 | 139,381 | |||||
TOTAL EQUITY | 462,461 | 343,641 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,745,928 | $ | 2,707,099 |
Common Stock | Capital in Excess of Par Value | Retained Earnings (Deficit) | Accumulated Other Comprehensive (Loss) Income | Total CONSOL Energy Inc. Stockholders' Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||
December 31, 2017 | $ | 280 | $ | 552,793 | $ | (43,713 | ) | $ | (305,100 | ) | $ | 204,260 | $ | 139,381 | $ | 343,641 | ||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Net Income | — | — | 113,304 | — | 113,304 | 19,447 | 132,751 | |||||||||||||||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of $3,697 Tax) | — | — | — | 12,359 | 12,359 | (3 | ) | 12,356 | ||||||||||||||||||||
Comprehensive Income | — | — | 113,304 | 12,359 | 125,663 | 19,444 | 145,107 | |||||||||||||||||||||
Reclassification of Stranded Tax Effect of Change in Tax Law | — | — | 84,729 | (84,729 | ) | — | — | — | ||||||||||||||||||||
Separation Adjustments | — | (1,595 | ) | — | — | (1,595 | ) | — | (1,595 | ) | ||||||||||||||||||
Issuance of Common Stock | 1 | (1 | ) | — | — | — | — | — | ||||||||||||||||||||
Retirement of Common Stock (281,272 shares) | (3 | ) | (5,555 | ) | (5,701 | ) | — | (11,259 | ) | — | (11,259 | ) | ||||||||||||||||
Purchase of CCR Units (77,536 units) | — | (392 | ) | — | — | (392 | ) | (993 | ) | (1,385 | ) | |||||||||||||||||
Amortization of Stock-Based Compensation Awards | — | 6,268 | — | — | 6,268 | 1,370 | 7,638 | |||||||||||||||||||||
Units/Shares Withheld for Taxes | — | (2,011 | ) | — | — | (2,011 | ) | (912 | ) | (2,923 | ) | |||||||||||||||||
Distributions to Noncontrolling Interest | — | — | — | — | — | (16,763 | ) | (16,763 | ) | |||||||||||||||||||
September 30, 2018 | $ | 278 | $ | 549,507 | $ | 148,619 | $ | (377,470 | ) | $ | 320,934 | $ | 141,527 | $ | 462,461 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash Flows from Operating Activities: | |||||||
Net Income | $ | 132,751 | $ | 107,209 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation, Depletion and Amortization | 155,674 | 124,914 | |||||
Gain on Sale of Assets | (273 | ) | (13,024 | ) | |||
Stock/Unit Based Compensation | 7,638 | 15,074 | |||||
Deferred Income Taxes | 2,945 | (4,801 | ) | ||||
Changes in Operating Assets: | |||||||
Accounts and Notes Receivable | 60,240 | 5,489 | |||||
Inventories | 950 | (1,843 | ) | ||||
Prepaid Expenses | (8,230 | ) | (4,258 | ) | |||
Changes in Other Assets | 10,005 | 4,567 | |||||
Changes in Operating Liabilities: | |||||||
Accounts Payable | 5,197 | 8,341 | |||||
Other Operating Liabilities | (18,239 | ) | (23,076 | ) | |||
Changes in Other Liabilities | (25,154 | ) | (48,136 | ) | |||
Other | 6,748 | 1,195 | |||||
Net Cash Provided by Operating Activities | 330,252 | 171,651 | |||||
Cash Flows from Investing Activities: | |||||||
Capital Expenditures | (96,855 | ) | (51,010 | ) | |||
Proceeds from Sales of Assets | 1,368 | 17,921 | |||||
Net Cash Used in Investing Activities | (95,487 | ) | (33,089 | ) | |||
Cash Flows from Financing Activities: | |||||||
Payments on Capitalized Leases | (11,019 | ) | (2,920 | ) | |||
Net Payments on Revolver - MLP | — | (13,000 | ) | ||||
Payments on Term Loan A | (26,250 | ) | — | ||||
Payments on Term Loan B | (3,000 | ) | — | ||||
Buyback of Second Lien Notes | (20,524 | ) | — | ||||
Purchases of CCR Units | (1,142 | ) | — | ||||
Repurchases of Common Stock | (9,724 | ) | — | ||||
Spin Distribution to CNX Resources | (18,234 | ) | — | ||||
Distributions to Noncontrolling Interest | (16,763 | ) | (16,403 | ) | |||
Other Parent Net Distributions | — | (114,844 | ) | ||||
Shares/Units Withheld for Taxes | (2,923 | ) | (1,009 | ) | |||
Debt-Related Financing Fees | (2,851 | ) | — | ||||
Net Cash Used in Financing Activities | (112,430 | ) | (148,176 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | 122,335 | (9,614 | ) | ||||
Cash and Cash Equivalents and Restricted Cash at Beginning of Period | 153,979 | 13,311 | |||||
Cash and Cash Equivalents and Restricted Cash at End of Period | $ | 276,314 | $ | 3,697 | |||
Non-Cash Investing and Financing Activities: | |||||||
Capital Lease | $ | 45,979 | $ | — |
September 30, 2018 | December 31, 2017 | |||||||
Cash and cash equivalents | $ | 250,452 | $ | 153,979 | ||||
Restricted cash* | 25,862 | — | ||||||
$ | 276,314 | $ | 153,979 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Anti-Dilutive Restricted Stock Units | 620 | — | 620 | — |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
Amounts in thousands, except per share data | September 30, | September 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Numerator: | |||||||||||||||
Net Income | $ | 9,084 | $ | 8,518 | $ | 132,751 | $ | 107,209 | |||||||
Less: Net Income Attributable to Noncontrolling Interest | 3,350 | 790 | 19,447 | 10,567 | |||||||||||
Net Income Attributable to CONSOL Energy Inc. Shareholders | $ | 5,734 | $ | 7,728 | $ | 113,304 | $ | 96,642 | |||||||
Denominator: | |||||||||||||||
Weighted-average shares of common stock outstanding | 27,982,538 | 27,967,509 | 28,011,488 | 27,967,509 | |||||||||||
Effect of dilutive shares | 593,322 | — | 516,527 | — | |||||||||||
Weighted-average diluted shares of common stock outstanding | 28,575,860 | 27,967,509 | 28,528,015 | 27,967,509 | |||||||||||
Earnings per Share: | |||||||||||||||
Basic | $ | 0.20 | $ | 0.28 | $ | 4.04 | $ | 3.46 | |||||||
Dilutive | $ | 0.20 | $ | 0.28 | $ | 3.97 | $ | 3.46 |
Three Months Ended | Nine Months Ended | |||||||
September 30, 2018 | September 30, 2018 | |||||||
Coal Revenue | $ | 294,797 | $ | 1,016,503 | ||||
Terminal Revenue | 16,115 | 47,995 | ||||||
Freight Revenue | 2,443 | 37,774 | ||||||
Total Revenue from Contracts with Customers | $ | 313,355 | $ | 1,102,272 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Royalty Income - Non-Operated Coal | $ | 5,160 | $ | 3,520 | $ | 19,108 | $ | 15,713 | |||||||
Purchased Coal Sales | 2,901 | 3,569 | 15,389 | 9,667 | |||||||||||
Property Easements and Option Income | 1,069 | 1,402 | 5,479 | 2,396 | |||||||||||
Rental Income | 896 | 1,589 | 3,066 | 12,722 | |||||||||||
Interest Income | 523 | 448 | 1,591 | 1,495 | |||||||||||
Contract Buyout | — | 8,410 | — | 8,410 | |||||||||||
Other | 429 | 775 | 2,601 | 2,105 | |||||||||||
Miscellaneous Other Income | $ | 10,978 | $ | 19,713 | $ | 47,234 | $ | 52,508 |
Pension Benefits | Other Post-Employment Benefits | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Service Cost | $ | 288 | $ | 759 | $ | 863 | $ | 2,277 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Interest Cost | 5,876 | 6,121 | 17,628 | 18,363 | 4,677 | 5,986 | 14,030 | 17,958 | |||||||||||||||||||||||
Expected Return on Plan Assets | (10,092 | ) | (10,596 | ) | (30,277 | ) | (31,787 | ) | — | — | — | — | |||||||||||||||||||
Amortization of Prior Service Credits | (126 | ) | (60 | ) | (377 | ) | (180 | ) | (601 | ) | (601 | ) | (1,804 | ) | (1,804 | ) | |||||||||||||||
Amortization of Actuarial Loss | 2,179 | 1,955 | 6,537 | 5,865 | 4,051 | 5,778 | 12,154 | 17,334 | |||||||||||||||||||||||
Net Periodic Benefit (Credit) Cost | $ | (1,875 | ) | $ | (1,821 | ) | $ | (5,626 | ) | $ | (5,462 | ) | $ | 8,127 | $ | 11,163 | $ | 24,380 | $ | 33,488 |
CWP | Workers' Compensation | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Service Cost | $ | 1,662 | $ | 1,280 | $ | 4,987 | $ | 3,842 | $ | 1,558 | $ | 1,569 | $ | 4,673 | $ | 4,706 | |||||||||||||||
Interest Cost | 1,311 | 1,013 | 3,934 | 3,038 | 571 | 580 | 1,712 | 1,740 | |||||||||||||||||||||||
Amortization of Actuarial Gain | (213 | ) | (1,908 | ) | (640 | ) | (5,724 | ) | (20 | ) | (150 | ) | (59 | ) | (449 | ) | |||||||||||||||
State Administrative Fees and Insurance Bond Premiums | — | — | — | — | 675 | 609 | 1,986 | 1,969 | |||||||||||||||||||||||
Net Periodic Benefit Cost | $ | 2,760 | $ | 385 | $ | 8,281 | $ | 1,156 | $ | 2,784 | $ | 2,608 | $ | 8,312 | $ | 7,966 |
September 30, 2018 | December 31, 2017 | ||||||
Coal | $ | 9,572 | $ | 11,411 | |||
Supplies | 42,898 | 42,009 | |||||
Total Inventories | $ | 52,470 | $ | 53,420 |
September 30, 2018 | December 31, 2017 | ||||||
Plant and Equipment | $ | 2,860,449 | $ | 2,757,062 | |||
Coal Properties and Surface Lands | 857,814 | 857,031 | |||||
Airshafts | 406,726 | 392,266 | |||||
Mine Development | 344,147 | 344,139 | |||||
Advance Mining Royalties | 327,005 | 325,855 | |||||
Total Property, Plant and Equipment | 4,796,141 | 4,676,353 | |||||
Less: Accumulated Depreciation, Depletion and Amortization | 2,692,450 | 2,554,056 | |||||
Total Property, Plant and Equipment, Net | $ | 2,103,691 | $ | 2,122,297 |
September 30, 2018 | December 31, 2017 | ||||||
Subsidence Liability | $ | 90,311 | $ | 88,027 | |||
Accrued Payroll and Benefits | 16,045 | 14,689 | |||||
Accrued Interest | 13,305 | 10,039 | |||||
Litigation | 9,270 | 8,197 | |||||
Accrued Other Taxes | 5,164 | 7,510 | |||||
Short-Term Incentive Compensation | 4,862 | 4,729 | |||||
Deferred Revenue | 155 | 6,807 | |||||
Longwall Equipment Buyout | — | 22,631 | |||||
Equipment Lease Rental | — | 9,865 | |||||
Other | 18,424 | 23,900 | |||||
Current Portion of Long-Term Liabilities: | |||||||
Postretirement Benefits Other than Pensions | 37,238 | 37,464 | |||||
Asset Retirement Obligations | 31,823 | 30,480 | |||||
Workers' Compensation | 12,369 | 13,317 | |||||
Pneumoconiosis Benefits | 10,792 | 12,972 | |||||
Total Other Accrued Liabilities | $ | 249,758 | $ | 290,627 |
September 30, 2018 | December 31, 2017 | ||||||
Debt: | |||||||
Term Loan B due in November 2022 (Principal of $397,000 and $400,000 less Unamortized Discount of $6,653 and $7,853, respectively, 8.25% Weighted Average Interest Rate) | $ | 390,347 | $ | 392,147 | |||
11.00% Senior Secured Second Lien Notes due 2025 | 279,476 | 300,000 | |||||
MEDCO Revenue Bonds in Series due September 2025 at 5.75% | 102,865 | 102,865 | |||||
Term Loan A due in November 2021 (6.50% Weighted Average Interest Rate) | 73,750 | 100,000 | |||||
Advance Royalty Commitments (9.42% Weighted Average Interest Rate) | 2,085 | 2,085 | |||||
Less: Unamortized Debt Issuance Costs | 17,428 | 21,129 | |||||
831,095 | 875,968 | ||||||
Less: Amounts Due in One Year* | 4,318 | 19,318 | |||||
Long-Term Debt | $ | 826,777 | $ | 856,650 |
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 | $ | 73,383 | $ | 46,944 | $ | 26,439 | $ | — | $ | — | |||||||||
Environmental | 398 | 398 | — | — | — | ||||||||||||||
Other | 32,820 | 25,704 | 7,116 | — | — | ||||||||||||||
Total Letters of Credit | 106,601 | 73,046 | 33,555 | — | — | ||||||||||||||
Surety Bonds: | |||||||||||||||||||
Employee-Related | 104,033 | 103,083 | 950 | — | — | ||||||||||||||
Environmental | 490,545 | 484,495 | 6,050 | — | — | ||||||||||||||
Other | 4,802 | 4,605 | 197 | — | — | ||||||||||||||
Total Surety Bonds | 599,380 | 592,183 | 7,197 | — | — | ||||||||||||||
Guarantees: | |||||||||||||||||||
Other | 26,562 | 8,634 | 13,860 | 3,438 | 630 | ||||||||||||||
Total Guarantees | 26,562 | 8,634 | 13,860 | 3,438 | 630 | ||||||||||||||
Total Commitments | $ | 732,543 | $ | 673,863 | $ | 54,612 | $ | 3,438 | $ | 630 |
Fair Value Measurements at September 30, 2018 | Fair Value Measurements at December 31, 2017 | ||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Murray Energy Guarantees | $ | — | $ | — | $ | (818 | ) | $ | — | $ | — | $ | (1,040 | ) |
September 30, 2018 | December 31, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-Term Debt | $ | 848,523 | $ | 905,597 | $ | 897,097 | $ | 931,768 |
PAMC | Other | Adjustments and Eliminations | Consolidated | ||||||||||||||
Coal Revenue | $ | 294,797 | $ | — | $ | — | $ | 294,797 | (A) | ||||||||
Terminal Revenue | — | 16,115 | — | 16,115 | |||||||||||||
Freight Revenue | 2,443 | — | — | 2,443 | |||||||||||||
Total Revenue and Freight | $ | 297,240 | $ | 16,115 | $ | — | $ | 313,355 | |||||||||
Earnings (Loss) Before Income Tax | $ | 37,962 | $ | (29,568 | ) | $ | — | $ | 8,394 | ||||||||
Segment Assets | $ | 1,891,606 | $ | 854,322 | $ | — | $ | 2,745,928 | |||||||||
Depreciation, Depletion and Amortization | $ | 44,236 | $ | 7,006 | $ | — | $ | 51,242 | |||||||||
Capital Expenditures | $ | 32,309 | $ | 8,347 | $ | — | $ | 40,656 |
PAMC | Other | Adjustments and Eliminations | Consolidated | ||||||||||||||
Coal Revenue | $ | 279,245 | $ | — | $ | — | $ | 279,245 | (A) | ||||||||
Terminal Revenue | — | 15,065 | — | 15,065 | |||||||||||||
Freight Revenue | 21,803 | — | — | 21,803 | |||||||||||||
Total Revenue and Freight | $ | 301,048 | $ | 15,065 | $ | — | $ | 316,113 | |||||||||
Earnings (Loss) Before Income Tax | $ | 21,011 | $ | (8,723 | ) | $ | — | $ | 12,288 | ||||||||
Segment Assets | $ | 1,912,656 | $ | 675,873 | $ | — | $ | 2,588,529 | |||||||||
Depreciation, Depletion and Amortization | $ | 41,638 | $ | 5,015 | $ | — | $ | 46,653 | |||||||||
Capital Expenditures | $ | 27,157 | $ | 624 | $ | — | $ | 27,781 |
PAMC | Other | Adjustments and Eliminations | Consolidated | ||||||||||||||
Coal Revenue | $ | 1,016,503 | $ | — | $ | — | $ | 1,016,503 | (A) | ||||||||
Terminal Revenue | — | 47,995 | — | 47,995 | |||||||||||||
Freight Revenue | 37,774 | — | — | 37,774 | |||||||||||||
Total Revenue and Freight | $ | 1,054,277 | $ | 47,995 | $ | — | $ | 1,102,272 | |||||||||
Earnings (Loss) Before Income Tax | $ | 220,862 | $ | (79,584 | ) | $ | — | $ | 141,278 | ||||||||
Segment Assets | $ | 1,891,606 | $ | 854,322 | $ | — | $ | 2,745,928 | |||||||||
Depreciation, Depletion and Amortization | $ | 135,074 | $ | 20,600 | $ | — | $ | 155,674 | |||||||||
Capital Expenditures | $ | 81,025 | $ | 15,830 | $ | — | $ | 96,855 |
PAMC | Other | Adjustments and Eliminations | Consolidated | ||||||||||||||
Coal Revenue | $ | 899,400 | $ | — | $ | — | $ | 899,400 | (A) | ||||||||
Terminal Revenue | — | 42,806 | — | 42,806 | |||||||||||||
Freight Revenue | 51,847 | — | — | 51,847 | |||||||||||||
Total Revenue and Freight | $ | 951,247 | $ | 42,806 | $ | — | $ | 994,053 | |||||||||
Earnings (Loss) Before Income Tax | $ | 131,670 | $ | (1,674 | ) | $ | — | $ | 129,996 | ||||||||
Segment Assets | $ | 1,912,656 | $ | 675,873 | $ | — | $ | 2,588,529 | |||||||||
Depreciation, Depletion and Amortization | $ | 125,341 | $ | (427 | ) | $ | — | $ | 124,914 | ||||||||
Capital Expenditures | $ | 49,045 | $ | 1,965 | $ | — | $ | 51,010 |
(A) | For the three and nine months ended September 30, 2018 and 2017, the PAMC segment had revenues from the following customers, each comprising over 10% of the Company’s total sales: |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Customer A | $ | 46,727 | * | $ | 209,968 | * | |||||||
Customer B | 84,110 | * | 181,236 | 114,451 | |||||||||
Customer C | 59,364 | 70,159 | 169,052 | 177,948 |
September 30, | |||||||
2018 | 2017 | ||||||
Segment assets for total reportable business segments | $ | 1,891,606 | $ | 1,912,656 | |||
Segment assets for all other business segments | 506,825 | 400,362 | |||||
Items excluded from segment assets: | |||||||
Cash and other investments | 275,377 | 86,131 | |||||
Deferred tax assets | 72,120 | 189,380 | |||||
Total Consolidated Assets | $ | 2,745,928 | $ | 2,588,529 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Revenues and Other Income: | |||||||||||||||||||||||
Coal Revenue | $ | — | $ | 221,097 | $ | 73,700 | $ | — | $ | — | $ | 294,797 | |||||||||||
Terminal Revenue | — | 16,115 | — | — | — | 16,115 | |||||||||||||||||
Freight Revenue | — | 1,832 | 611 | — | — | 2,443 | |||||||||||||||||
Miscellaneous Other Income | 25,485 | 5,292 | 1,003 | — | (20,802 | ) | 10,978 | ||||||||||||||||
Gain on Sale of Assets | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
Total Revenue and Other Income | 25,485 | 244,251 | 75,314 | — | (20,802 | ) | 324,248 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating and Other Costs | — | 172,569 | 49,540 | 672 | — | 222,781 | |||||||||||||||||
Depreciation, Depletion and Amortization | — | 40,183 | 11,059 | — | — | 51,242 | |||||||||||||||||
Freight Expense | — | 1,832 | 611 | — | — | 2,443 | |||||||||||||||||
Selling, General and Administrative Costs | — | 14,627 | 3,899 | — | — | 18,526 | |||||||||||||||||
Interest Expense | 20,441 | 421 | 1,560 | — | (1,560 | ) | 20,862 | ||||||||||||||||
Total Costs And Expenses | 20,441 | 229,632 | 66,669 | 672 | (1,560 | ) | 315,854 | ||||||||||||||||
Earnings (Loss) Before Income Tax | 5,044 | 14,619 | 8,645 | (672 | ) | (19,242 | ) | 8,394 | |||||||||||||||
Income Tax Expense | (690 | ) | — | — | — | (690 | ) | ||||||||||||||||
Net Income (Loss) | 5,734 | 14,619 | 8,645 | (672 | ) | (19,242 | ) | 9,084 | |||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | — | — | — | — | 3,350 | 3,350 | |||||||||||||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders | $ | 5,734 | $ | 14,619 | $ | 8,645 | $ | (672 | ) | $ | (22,592 | ) | $ | 5,734 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 249,287 | $ | 245 | $ | 920 | $ | — | $ | — | $ | 250,452 | |||||||||||
Accounts and Notes Receivable: | |||||||||||||||||||||||
Trade | — | — | — | 78,649 | — | 78,649 | |||||||||||||||||
Other Receivables | 16,917 | 11,964 | 327 | — | — | 29,208 | |||||||||||||||||
Inventories | — | 40,445 | 12,025 | — | — | 52,470 | |||||||||||||||||
Prepaid Expenses | 7,840 | 18,285 | 6,136 | 25,862 | — | 58,123 | |||||||||||||||||
Total Current Assets | 274,044 | 70,939 | 19,408 | 104,511 | — | 468,902 | |||||||||||||||||
Property, Plant and Equipment: | |||||||||||||||||||||||
Property, Plant and Equipment | — | 3,860,242 | 935,899 | — | — | 4,796,141 | |||||||||||||||||
Less-Accumulated Depreciation, Depletion and Amortization | — | 2,176,357 | 516,093 | — | — | 2,692,450 | |||||||||||||||||
Total Property, Plant and Equipment-Net | — | 1,683,885 | 419,806 | — | — | 2,103,691 | |||||||||||||||||
Other Assets: | |||||||||||||||||||||||
Deferred Income Taxes | 72,120 | — | — | — | — | 72,120 | |||||||||||||||||
Affiliated Credit Facility | 147,277 | — | — | — | (147,277 | ) | — | ||||||||||||||||
Investment in Affiliates | 640,187 | — | — | — | (640,187 | ) | — | ||||||||||||||||
Other | 39,011 | 47,261 | 14,943 | — | — | 101,215 | |||||||||||||||||
Total Other Assets | 898,595 | 47,261 | 14,943 | — | (787,464 | ) | 173,335 | ||||||||||||||||
Total Assets | $ | 1,172,639 | $ | 1,802,085 | $ | 454,157 | $ | 104,511 | $ | (787,464 | ) | $ | 2,745,928 | ||||||||||
Liabilities and Equity: | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts Payable | $ | 8,709 | $ | 71,169 | $ | 20,656 | $ | — | $ | 1,867 | $ | 102,401 | |||||||||||
Accounts Payable (Recoverable)-Related Parties | (2,291 | ) | 36,220 | 1,573 | 87,513 | (123,015 | ) | — | |||||||||||||||
Current Portion of Long-Term Debt | 6,796 | 10,696 | 3,453 | — | — | 20,945 | |||||||||||||||||
Other Accrued Liabilities | 101,272 | 114,392 | 35,961 | — | (1,867 | ) | 249,758 | ||||||||||||||||
Total Current Liabilities | 114,486 | 232,477 | 61,643 | 87,513 | (123,015 | ) | 373,104 | ||||||||||||||||
Long-Term Debt: | 697,298 | 153,708 | 153,282 | — | (147,277 | ) | 857,011 | ||||||||||||||||
Deferred Credits and Other Liabilities: | |||||||||||||||||||||||
Postretirement Benefits Other Than Pensions | — | 541,373 | — | — | — | 541,373 | |||||||||||||||||
Pneumoconiosis Benefits | — | 146,729 | 4,947 | — | — | 151,676 | |||||||||||||||||
Asset Retirement Obligations | — | 226,586 | 9,605 | — | — | 236,191 | |||||||||||||||||
Workers’ Compensation | — | 61,816 | 3,530 | — | — | 65,346 | |||||||||||||||||
Salary Retirement | 39,921 | — | — | — | — | 39,921 | |||||||||||||||||
Other | — | 18,240 | 605 | — | — | 18,845 | |||||||||||||||||
Total Deferred Credits and Other Liabilities | 39,921 | 994,744 | 18,687 | — | — | 1,053,352 | |||||||||||||||||
Total CONSOL Energy Inc. Stockholders’ Equity | 320,934 | 421,156 | 220,545 | 16,998 | (658,699 | ) | 320,934 | ||||||||||||||||
Noncontrolling Interest | — | — | — | — | 141,527 | 141,527 | |||||||||||||||||
Total Liabilities and Equity | $ | 1,172,639 | $ | 1,802,085 | $ | 454,157 | $ | 104,511 | $ | (787,464 | ) | $ | 2,745,928 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Revenues and Other Income: | |||||||||||||||||||||||
Coal Revenue | $ | — | $ | 209,434 | $ | 69,811 | $ | — | $ | — | $ | 279,245 | |||||||||||
Terminal Revenue | — | 15,065 | — | — | — | 15,065 | |||||||||||||||||
Freight Revenue | — | 16,352 | 5,451 | — | — | 21,803 | |||||||||||||||||
Miscellaneous Other Income | 11,682 | 11,903 | 2,996 | — | (6,868 | ) | 19,713 | ||||||||||||||||
(Loss) Gain on Sale of Assets | — | (519 | ) | 6 | — | — | (513 | ) | |||||||||||||||
Total Revenue and Other Income | 11,682 | 252,235 | 78,264 | — | (6,868 | ) | 335,313 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating and Other Costs | — | 177,354 | 52,160 | (74,324 | ) | 74,337 | 229,527 | ||||||||||||||||
Depreciation, Depletion and Amortization | — | 36,301 | 10,352 | — | — | 46,653 | |||||||||||||||||
Freight Expense | — | 16,352 | 5,451 | — | — | 21,803 | |||||||||||||||||
Selling, General and Administrative Costs | — | 16,897 | 4,283 | — | — | 21,180 | |||||||||||||||||
Interest Expense | 184 | 1,274 | 2,404 | — | — | 3,862 | |||||||||||||||||
Total Costs And Expenses | 184 | 248,178 | 74,650 | (74,324 | ) | 74,337 | 323,025 | ||||||||||||||||
Earnings Before Income Tax | 11,498 | 4,057 | 3,614 | 74,324 | (81,205 | ) | 12,288 | ||||||||||||||||
Income Tax Expense | 3,770 | — | — | — | — | 3,770 | |||||||||||||||||
Net Income (Loss) | 7,728 | 4,057 | 3,614 | 74,324 | (81,205 | ) | 8,518 | ||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | — | — | — | — | 790 | 790 | |||||||||||||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders | $ | 7,728 | $ | 4,057 | $ | 3,614 | $ | 74,324 | $ | (81,995 | ) | $ | 7,728 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 152,235 | $ | 105 | $ | 1,533 | $ | 106 | $ | — | $ | 153,979 | |||||||||||
Accounts and Notes Receivable: | |||||||||||||||||||||||
Trade | — | — | — | 131,545 | — | 131,545 | |||||||||||||||||
Other Receivables | 17,702 | 16,880 | 1,970 | — | — | 36,552 | |||||||||||||||||
Inventories | — | 41,117 | 12,303 | — | — | 53,420 | |||||||||||||||||
Prepaid Expenses | 5,745 | 13,568 | 4,428 | 3 | — | 23,744 | |||||||||||||||||
Total Current Assets | 175,682 | 71,670 | 20,234 | 131,654 | — | 399,240 | |||||||||||||||||
Property, Plant and Equipment: | |||||||||||||||||||||||
Property, Plant and Equipment | — | 3,765,885 | 910,468 | — | — | 4,676,353 | |||||||||||||||||
Less-Accumulated Depreciation, Depletion and Amortization | — | 2,070,646 | 483,410 | — | — | 2,554,056 | |||||||||||||||||
Total Property, Plant and Equipment-Net | — | 1,695,239 | 427,058 | — | — | 2,122,297 | |||||||||||||||||
Other Assets: | |||||||||||||||||||||||
Deferred Income Taxes | 75,065 | — | — | — | — | 75,065 | |||||||||||||||||
Affiliated Credit Facility | 165,110 | — | — | — | (165,110 | ) | — | ||||||||||||||||
Investment in Affiliates | 645,157 | — | — | — | (645,157 | ) | — | ||||||||||||||||
Other | 44,177 | 50,846 | 15,474 | — | — | 110,497 | |||||||||||||||||
Total Other Assets | 929,509 | 50,846 | 15,474 | — | (810,267 | ) | 185,562 | ||||||||||||||||
Total Assets | $ | 1,105,191 | $ | 1,817,755 | $ | 462,766 | $ | 131,654 | $ | (810,267 | ) | $ | 2,707,099 | ||||||||||
Liabilities and Equity: | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts Payable | $ | 20,014 | $ | 66,271 | $ | 22,789 | $ | 8 | $ | 18 | $ | 109,100 | |||||||||||
Accounts Payable (Recoverable)-Related Parties | (2,291 | ) | 36,221 | — | 129,139 | (163,069 | ) | — | |||||||||||||||
Current Portion of Long-Term Debt | — | 22,405 | 77 | — | — | 22,482 | |||||||||||||||||
Other Accrued Liabilities | 101,994 | 149,425 | 44,102 | (20 | ) | (4,874 | ) | 290,627 | |||||||||||||||
Total Current Liabilities | 119,717 | 274,322 | 66,968 | 129,127 | (167,925 | ) | 422,209 | ||||||||||||||||
Long-Term Debt: | 728,254 | 135,390 | 165,183 | 1,572 | (165,110 | ) | 865,289 | ||||||||||||||||
Deferred Credits and Other Liabilities: | |||||||||||||||||||||||
Postretirement Benefits Other Than Pensions | — | 554,099 | — | — | — | 554,099 | |||||||||||||||||
Pneumoconiosis Benefits | — | 146,035 | 3,833 | — | — | 149,868 | |||||||||||||||||
Asset Retirement Obligations | — | 218,728 | 9,615 | — | — | 228,343 | |||||||||||||||||
Workers’ Compensation | — | 63,244 | 3,404 | — | — | 66,648 | |||||||||||||||||
Salary Retirement | 52,960 | — | — | — | — | 52,960 | |||||||||||||||||
Other | — | 23,435 | 607 | — | — | 24,042 | |||||||||||||||||
Total Deferred Credits and Other Liabilities | 52,960 | 1,005,541 | 17,459 | — | — | 1,075,960 | |||||||||||||||||
Total CONSOL Energy Inc. Stockholders’ Equity | 204,260 | 402,502 | 213,156 | 955 | (616,613 | ) | 204,260 | ||||||||||||||||
Noncontrolling Interest | — | — | — | — | 139,381 | 139,381 | |||||||||||||||||
Total Liabilities and Equity | $ | 1,105,191 | $ | 1,817,755 | $ | 462,766 | $ | 131,654 | $ | (810,267 | ) | $ | 2,707,099 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Revenues and Other Income: | |||||||||||||||||||||||
Coal Revenue | $ | — | $ | 762,377 | $ | 254,126 | $ | — | $ | — | $ | 1,016,503 | |||||||||||
Terminal Revenue | — | 47,995 | — | — | — | 47,995 | |||||||||||||||||
Freight Revenue | — | 28,330 | 9,444 | — | — | 37,774 | |||||||||||||||||
Miscellaneous Other Income | 186,475 | 21,893 | 4,240 | — | (165,374 | ) | 47,234 | ||||||||||||||||
Gain on Sale of Assets | — | 211 | 62 | — | — | 273 | |||||||||||||||||
Total Revenue and Other Income | 186,475 | 860,806 | 267,872 | — | (165,374 | ) | 1,149,779 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating and Other Costs | — | 539,412 | 159,126 | 2,240 | — | 700,778 | |||||||||||||||||
Depreciation, Depletion and Amortization | — | 121,905 | 33,769 | — | — | 155,674 | |||||||||||||||||
Freight Expense | — | 28,330 | 9,444 | — | — | 37,774 | |||||||||||||||||
Selling, General and Administrative Costs | — | 37,455 | 10,260 | — | — | 47,715 | |||||||||||||||||
Loss on Debt Extinguishment | 3,149 | — | — | — | — | 3,149 | |||||||||||||||||
Interest Expense | 61,495 | 1,916 | 5,295 | — | (5,295 | ) | 63,411 | ||||||||||||||||
Total Costs And Expenses | 64,644 | 729,018 | 217,894 | 2,240 | (5,295 | ) | 1,008,501 | ||||||||||||||||
Earnings (Loss) Before Income Tax | 121,831 | 131,788 | 49,978 | (2,240 | ) | (160,079 | ) | 141,278 | |||||||||||||||
Income Tax Expense | 8,527 | — | — | — | — | 8,527 | |||||||||||||||||
Net Income (Loss) | 113,304 | 131,788 | 49,978 | (2,240 | ) | (160,079 | ) | 132,751 | |||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | — | — | — | — | 19,447 | 19,447 | |||||||||||||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders | $ | 113,304 | $ | 131,788 | $ | 49,978 | $ | (2,240 | ) | $ | (179,526 | ) | $ | 113,304 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Revenues and Other Income: | |||||||||||||||||||||||
Coal Revenue | $ | — | $ | 674,550 | $ | 224,850 | $ | — | $ | — | $ | 899,400 | |||||||||||
Terminal Revenue | — | 42,806 | — | — | — | 42,806 | |||||||||||||||||
Freight Revenue | — | 38,885 | 12,962 | — | — | 51,847 | |||||||||||||||||
Miscellaneous Other Income | 120,022 | 22,865 | 4,798 | — | (95,177 | ) | 52,508 | ||||||||||||||||
Gain on Sale of Assets | — | 11,618 | 1,406 | — | — | 13,024 | |||||||||||||||||
Total Revenue and Other Income | 120,022 | 790,724 | 244,016 | — | (95,177 | ) | 1,059,585 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating and Other Costs | — | 530,040 | 152,275 | 88 | — | 682,403 | |||||||||||||||||
Depreciation, Depletion and Amortization | — | 93,764 | 31,150 | — | — | 124,914 | |||||||||||||||||
Freight Expense | — | 38,885 | 12,962 | — | — | 51,847 | |||||||||||||||||
Selling, General and Administrative Costs | — | 47,379 | 11,218 | — | — | 58,597 | |||||||||||||||||
Interest Expense | 593 | 3,978 | 7,257 | — | — | 11,828 | |||||||||||||||||
Total Costs And Expenses | 593 | 714,046 | 214,862 | 88 | — | 929,589 | |||||||||||||||||
Earnings (Loss) Before Income Tax | 119,429 | 76,678 | 29,154 | (88 | ) | (95,177 | ) | 129,996 | |||||||||||||||
Income Tax Expense | 22,787 | — | — | 22,787 | |||||||||||||||||||
Net Income (Loss) | 96,642 | 76,678 | 29,154 | (88 | ) | (95,177 | ) | 107,209 | |||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | — | — | — | — | 10,567 | 10,567 | |||||||||||||||||
Net Income (Loss) Attributable to CONSOL Energy Shareholders | $ | 96,642 | $ | 76,678 | $ | 29,154 | $ | (88 | ) | $ | (105,744 | ) | $ | 96,642 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (45,278 | ) | $ | 280,396 | $ | 95,134 | $ | — | $ | — | $ | 330,252 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital Expenditures | — | (76,599 | ) | (20,256 | ) | — | — | (96,855 | ) | ||||||||||||||
Proceeds From Sales of Assets | — | 1,198 | 170 | — | — | 1,368 | |||||||||||||||||
(Investments in), net of Distributions from, Subsidiaries | 30,237 | (3,959 | ) | — | — | (26,278 | ) | — | |||||||||||||||
Net Cash (Used in) Provided by Investing Activities | 30,237 | (79,360 | ) | (20,086 | ) | — | (26,278 | ) | (95,487 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Payments on Capitalized Lease Obligations | — | (8,894 | ) | (2,125 | ) | — | — | (11,019 | ) | ||||||||||||||
Affiliated Credit Facility | 29,583 | — | (29,583 | ) | — | — | — | ||||||||||||||||
Payments on Term Loan A | (26,250 | ) | — | — | — | — | (26,250 | ) | |||||||||||||||
Payments on Term Loan B | (3,000 | ) | — | — | — | — | (3,000 | ) | |||||||||||||||
Buyback of Second Lien Notes | (20,524 | ) | — | — | — | — | (20,524 | ) | |||||||||||||||
Distributions to Noncontrolling Interest | — | — | (43,041 | ) | — | 26,278 | (16,763 | ) | |||||||||||||||
Shares/Units Withheld for Taxes | — | (2,011 | ) | (912 | ) | — | — | (2,923 | ) | ||||||||||||||
Spin Distribution to CNX Resources | (18,234 | ) | — | — | — | (18,234 | ) | ||||||||||||||||
Repurchases of Common Stock | (9,724 | ) | — | — | — | — | (9,724 | ) | |||||||||||||||
Purchases of CCR Units | (1,142 | ) | — | — | — | — | (1,142 | ) | |||||||||||||||
Debt-Related Financing Fees | (2,851 | ) | — | — | — | — | (2,851 | ) | |||||||||||||||
Net Cash (Used in) Provided by Financing Activities | $ | (33,908 | ) | $ | (29,139 | ) | $ | (75,661 | ) | $ | — | $ | 26,278 | $ | (112,430 | ) |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (89,602 | ) | $ | 200,470 | $ | 60,783 | $ | — | $ | — | $ | 171,651 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital Expenditures | — | (38,749 | ) | (12,261 | ) | — | — | (51,010 | ) | ||||||||||||||
Proceeds From Sales of Assets | — | 16,421 | 1,500 | — | — | 17,921 | |||||||||||||||||
(Investments in), net of Distributions from, Subsidiaries | 37,243 | (11,496 | ) | — | — | (25,747 | ) | — | |||||||||||||||
Net Cash (Used in) Provided by Investing Activities | 37,243 | (33,824 | ) | (10,761 | ) | — | (25,747 | ) | (33,089 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Payments on Capitalized Lease Obligations | — | (2,846 | ) | (74 | ) | — | — | (2,920 | ) | ||||||||||||||
Net (Payments on) Proceeds from Revolver - MLP | — | — | (13,000 | ) | — | — | (13,000 | ) | |||||||||||||||
Distributions to Noncontrolling Interest | — | — | (42,150 | ) | — | 25,747 | (16,403 | ) | |||||||||||||||
Shares/Units Withheld for Taxes | — | — | (1,009 | ) | — | — | (1,009 | ) | |||||||||||||||
Intercompany Contributions/(Distributions) | 114,844 | (114,844 | ) | — | — | — | — | ||||||||||||||||
Other Parent Net Distributions | (114,844 | ) | — | — | — | — | (114,844 | ) | |||||||||||||||
Net Cash (Used in) Provided by Financing Activities | $ | — | $ | (117,690 | ) | $ | (56,233 | ) | $ | — | $ | 25,747 | $ | (148,176 | ) |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non- Guarantor | Elimination | Consolidated | ||||||||||||||||||
Net Income (Loss) | $ | 5,734 | $ | 14,619 | $ | 8,645 | $ | (672 | ) | $ | (19,242 | ) | $ | 9,084 | |||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Net Actuarial Gain (Loss) | 4,177 | — | (2 | ) | — | 2 | 4,177 | ||||||||||||||||
Other Comprehensive Income (Loss): | 4,177 | — | (2 | ) | — | 2 | 4,177 | ||||||||||||||||
Comprehensive Income (Loss) | 9,911 | 14,619 | 8,643 | (672 | ) | (19,240 | ) | 13,261 | |||||||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest | — | — | — | — | 3,346 | 3,346 | |||||||||||||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders | $ | 9,911 | $ | 14,619 | $ | 8,643 | $ | (672 | ) | $ | (22,586 | ) | $ | 9,915 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non- Guarantor | Elimination | Consolidated | ||||||||||||||||||
Net Income (Loss) | $ | 7,728 | $ | 4,057 | $ | 3,614 | $ | 74,324 | $ | (81,205 | ) | $ | 8,518 | ||||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Net Actuarial Gain (Loss) | 3,285 | — | (39 | ) | — | 39 | 3,285 | ||||||||||||||||
Other Comprehensive Income (Loss): | 3,285 | — | (39 | ) | — | 39 | 3,285 | ||||||||||||||||
Comprehensive Income (Loss) | 11,013 | 4,057 | 3,575 | 74,324 | (81,166 | ) | 11,803 | ||||||||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest | — | — | — | — | 779 | 779 | |||||||||||||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders | $ | 11,013 | $ | 4,057 | $ | 3,575 | $ | 74,324 | $ | (81,945 | ) | $ | 11,024 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non- Guarantor | Elimination | Consolidated | ||||||||||||||||||
Net Income (Loss) | $ | 113,304 | $ | 131,788 | $ | 49,978 | $ | (2,240 | ) | $ | (160,079 | ) | $ | 132,751 | |||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Net Actuarial Gain (Loss) | 12,356 | — | (6 | ) | — | 6 | 12,356 | ||||||||||||||||
Other Comprehensive Income (Loss): | 12,356 | — | (6 | ) | — | 6 | 12,356 | ||||||||||||||||
Comprehensive Income (Loss) | 125,660 | 131,788 | 49,972 | (2,240 | ) | (160,073 | ) | 145,107 | |||||||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest | — | — | — | — | 19,444 | 19,444 | |||||||||||||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders | $ | 125,660 | $ | 131,788 | $ | 49,972 | $ | (2,240 | ) | $ | (179,517 | ) | $ | 125,663 |
Parent Issuer | Guarantor | CCR Non-Guarantor | Non- Guarantor | Elimination | Consolidated | ||||||||||||||||||
Net Income (Loss) | $ | 96,642 | $ | 76,678 | $ | 29,154 | $ | (88 | ) | $ | (95,177 | ) | $ | 107,209 | |||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Net Actuarial Gain (Loss) | 9,855 | — | (118 | ) | — | 118 | 9,855 | ||||||||||||||||
Other Comprehensive Income (Loss): | 9,855 | — | (118 | ) | — | 118 | 9,855 | ||||||||||||||||
Comprehensive Income (Loss) | 106,497 | 76,678 | 29,036 | (88 | ) | (95,059 | ) | 117,064 | |||||||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interest | — | — | — | — | 10,533 | 10,533 | |||||||||||||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders | $ | 106,497 | $ | 76,678 | $ | 29,036 | $ | (88 | ) | $ | (105,592 | ) | $ | 106,531 |
• | Separation and Distribution Agreement (“SDA”); |
• | Transition Services Agreement (“TSA”); |
• | Tax Matters Agreement (“TMA”); |
• | Employee Matters Agreement (“EMA”); |
• | Intellectual Property Matters Agreement (“IPMA”); |
• | CNX Resources Corporation to CONSOL Energy Inc. Trademark License Agreement (“TLA 1”); |
• | CONSOL Energy Inc. to CNX Resources Corporation Trademark License Agreement (“TLA 2”); |
• | First Amendment to the First Amended and Restated Omnibus Agreement (“Omnibus Amendment”); |
• | First Amendment to Contract Agency Agreement by and among CONSOL Energy Sales Company, CONSOL Thermal Holdings LLC (formerly known as CNX Thermal Holdings LLC) and the other parties thereto (“Contract Agency Amendment”); |
• | First Amendment to Water Supply and Services Agreement by and between CNX Water Assets LLC and CONSOL Thermal Holdings LLC (formerly known as CNX Thermal Holdings LLC) (“Water Supply Amendment”); |
• | Second Amendment to Pennsylvania Mine Complex Operating Agreement by and among CONSOL Pennsylvania Coal Company LLC, Conrhein Coal Company, CONSOL Thermal Holdings LLC (formerly known as CNX Thermal Holdings LLC) and CONSOL Coal Resources LP (formerly known as CNX Coal Resources LP) (the “Operating Agreement Amendment”); |
• | Affiliated Company Credit Agreement, dated November 28, 2017, by and among CONSOL Coal Resources LP, certain of its affiliates party thereto, CONSOL Energy Inc. and PNC Bank, National Association (the “Affiliated Company Credit Agreement”); and |
• | Second Amendment and Restatement of Master Cooperation and Safety Agreement, dated October 20, 2017, by and between CONSOL Energy Inc., CNX Gas Company LLC and certain other parties thereto (the “MCSA”). |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating and Other Costs | $ | 725 | $ | 850 | $ | 2,172 | $ | 2,589 | |||||||
Selling, General and Administrative Costs | 2,345 | 834 | 5,943 | 2,288 | |||||||||||
Total Services from CONSOL Energy | $ | 3,070 | $ | 1,684 | $ | 8,115 | $ | 4,877 |
• | Pennsylvania Mining Complex: The PAMC, which includes the Bailey Mine, the Enlow Fork Mine and the Harvey Mine, has extensive high-quality coal reserves. We mine our reserves from the Pittsburgh No. 8 Coal Seam, which is a large contiguous formation of uniform, high-Btu thermal coal that is ideal for high productivity, low-cost longwall operations. The design of the PAMC is optimized to produce large quantities of coal on a cost-efficient basis. We are able to sustain high production volumes at comparatively low operating costs due to, among other things, the technologically advanced longwall mining systems, logistics infrastructure and safety. All of our mines utilize longwall mining, which is a highly automated underground mining technique that produces large volumes of coal at lower costs compared to other underground mining methods. We own a 75% undivided interest in PAMC, and the remaining 25% is owned by CCR, as discussed below. |
• | CCR Ownership: We own 60.3% of CCR's limited partnership interests and 100% of CCR's general partnership interest, which equates to a 61.3% economic ownership interest in the Partnership. CCR is a master limited partnership originally formed by CNX to manage and further develop its active coal operations in Pennsylvania. At September 30, 2018, CCR's assets included a 25% undivided interest in, and full operational control over, the PAMC. |
• | CONSOL Marine Terminal: Through our subsidiary CONSOL Marine Terminals LLC, we provide coal export terminal services through the Port of Baltimore. The terminal can either store coal or load coal directly into vessels from rail cars. It is also one of the few terminals in the United States served by two railroads, Norfolk Southern Corporation and CSX Transportation Inc. |
• | Greenfield Reserves: We own approximately 1.6 billion tons of high-quality, undeveloped coal reserves located in NAPP, CAPP, and the ILB. |
• | Net income of $9 million |
• | Repurchased 190,272 CONSOL Energy common shares outstanding at an average price of $41.93 per share |
• | Purchased 77,536 common units of CONSOL Coal Resources LP at an average price of $17.86 per unit |
• | Strongest third quarter production in the history of the PAMC |
• | The Company's 2018 coal production is expected to be approximately 27 million tons. |
• | The Company's 2018 coal capital investment is expected to be approximately $130-$145 million.1 |
• | our operating performance as compared to the operating performance of other companies in the coal industry, |
• | without regard to financing methods, historical cost basis or capital structure; |
• | the ability of our assets to generate sufficient cash flow; |
• | our ability to incur and service debt and fund capital expenditures; |
• | the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities; and |
• | the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Total Costs and Expenses | $ | 315,854 | $ | 323,025 | $ | 1,008,501 | $ | 929,589 | ||||||||
Freight Expense | (2,443 | ) | (21,803 | ) | (37,774 | ) | (51,847 | ) | ||||||||
Selling, General and Administrative Costs | (18,526 | ) | (21,180 | ) | (47,715 | ) | (58,597 | ) | ||||||||
Loss on Debt Extinguishment | — | — | (3,149 | ) | — | |||||||||||
Interest Expense, net | (20,862 | ) | (3,862 | ) | (63,411 | ) | (11,828 | ) | ||||||||
Other Costs (Non-Production) | (30,801 | ) | (32,749 | ) | (103,513 | ) | (94,870 | ) | ||||||||
Depreciation, Depletion and Amortization (Non-Production) | (9,175 | ) | (7,420 | ) | (27,098 | ) | (6,890 | ) | ||||||||
Cost of Coal Sold | $ | 234,047 | $ | 236,011 | $ | 725,841 | $ | 705,557 | ||||||||
Depreciation, Depletion and Amortization (Production) | (42,067 | ) | (39,233 | ) | (128,576 | ) | (118,024 | ) | ||||||||
Cash Cost of Coal Sold | $ | 191,980 | $ | 196,778 | $ | 597,265 | $ | 587,533 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Total Coal Revenue | $ | 294,797 | $ | 279,245 | $ | 1,016,503 | $ | 899,400 | ||||||||
Operating and Other Costs | 222,781 | 229,527 | 700,778 | 682,403 | ||||||||||||
Less: Other Costs (Non-Production) | (30,801 | ) | (32,749 | ) | (103,513 | ) | (94,870 | ) | ||||||||
Cash Cost of Coal Sold | 191,980 | 196,778 | 597,265 | 587,533 | ||||||||||||
Add: Depreciation, Depletion and Amortization | 51,242 | 46,653 | 155,674 | 124,914 | ||||||||||||
Less: Depreciation, Depletion and Amortization (Non-Production) | (9,175 | ) | (7,420 | ) | (27,098 | ) | (6,890 | ) | ||||||||
Cost of Coal Sold | $ | 234,047 | $ | 236,011 | $ | 725,841 | $ | 705,557 | ||||||||
Total Tons Sold (in millions) | 6.2 | 6.3 | 20.7 | 19.9 | ||||||||||||
Average Revenue per Ton Sold | $ | 47.21 | $ | 44.16 | $ | 49.11 | $ | 45.26 | ||||||||
Average Cash Cost per Ton Sold | 30.88 | 30.94 | 28.87 | 29.57 | ||||||||||||
Depreciation, Depletion and Amortization Costs per Ton Sold | 6.60 | 6.38 | 6.20 | 5.94 | ||||||||||||
Average Cost per Ton Sold | 37.48 | 37.32 | 35.07 | 35.51 | ||||||||||||
Average Margin per Ton Sold | 9.73 | 6.84 | 14.04 | 9.75 | ||||||||||||
Add: Depreciation, Depletion and Amortization Costs per Ton Sold | 6.60 | 6.38 | 6.20 | 5.94 | ||||||||||||
Average Cash Margin per Ton Sold | $ | 16.33 | $ | 13.22 | $ | 20.24 | $ | 15.69 |
For the Three Months Ended | |||||||||||
September 30, | |||||||||||
(in millions) | 2018 | 2017 | Variance | ||||||||
Revenue: | |||||||||||
Coal Revenue | $ | 295 | $ | 279 | $ | 16 | |||||
Freight Revenue | 2 | 22 | (20 | ) | |||||||
Miscellaneous Other Income | 4 | 12 | (8 | ) | |||||||
Total Revenue and Other Income | 301 | 313 | (12 | ) | |||||||
Cost of Coal Sold: | |||||||||||
Operating Costs | 192 | 197 | (5 | ) | |||||||
Depreciation, Depletion and Amortization | 42 | 39 | 3 | ||||||||
Total Cost of Coal Sold | 234 | 236 | (2 | ) | |||||||
Other Costs: | |||||||||||
Other Costs | 8 | 11 | (3 | ) | |||||||
Depreciation, Depletion and Amortization | 2 | 2 | — | ||||||||
Total Other Costs | 10 | 13 | (3 | ) | |||||||
Freight Expense | 2 | 22 | (20 | ) | |||||||
Selling, General and Administrative Costs | 17 | 19 | (2 | ) | |||||||
Interest Expense, net | — | 2 | (2 | ) | |||||||
Total Costs and Expenses | 263 | 292 | (29 | ) | |||||||
Earnings Before Income Tax | $ | 38 | $ | 21 | $ | 17 |
For the Three Months Ended September 30, | |||||||||
Mine | 2018 | 2017 | Variance | ||||||
Bailey | 2,394 | 2,764 | (370 | ) | |||||
Enlow Fork | 2,584 | 1,944 | 640 | ||||||
Harvey | 1,394 | 1,437 | (43 | ) | |||||
Total | 6,372 | 6,145 | 227 |
For the Three Months Ended September 30, | |||||||||||
2018 | 2017 | Variance | |||||||||
Total Tons Sold (in millions) | 6.2 | 6.3 | (0.1 | ) | |||||||
Average Revenue per Ton Sold | $ | 47.21 | $ | 44.16 | $ | 3.05 | |||||
Average Cash Cost per Ton Sold | $ | 30.88 | $ | 30.94 | $ | (0.06 | ) | ||||
Depreciation, Depletion and Amortization Costs per Ton Sold (Non-Cash Cost) | 6.60 | 6.38 | 0.22 | ||||||||
Total Costs per Ton Sold | $ | 37.48 | $ | 37.32 | $ | 0.16 | |||||
Average Margin per Ton Sold | $ | 9.73 | $ | 6.84 | $ | 2.89 | |||||
Add: Depreciation, Depletion and Amortization Costs per Ton Sold | 6.60 | 6.38 | 0.22 | ||||||||
Average Cash Margin per Ton Sold (1) | $ | 16.33 | $ | 13.22 | $ | 3.11 |
For the Three Months Ended | |||||||||||
September 30, | |||||||||||
(in millions) | 2018 | 2017 | Variance | ||||||||
Revenue: | |||||||||||
Terminal Revenue | $ | 16 | $ | 15 | $ | 1 | |||||
Miscellaneous Other Income | 7 | 8 | (1 | ) | |||||||
Gain (Loss) on Sale of Assets | — | (1 | ) | 1 | |||||||
Total Revenue and Other Income | 23 | 22 | 1 | ||||||||
Other Costs and Expenses: | |||||||||||
Operating and Other Costs | 23 | 21 | 2 | ||||||||
Depreciation, Depletion and Amortization | 7 | 6 | 1 | ||||||||
Selling, General and Administrative Costs | 2 | 2 | — | ||||||||
Interest Expense, net | 21 | 2 | 19 | ||||||||
Total Other Costs and Expenses | 53 | 31 | 22 | ||||||||
Loss Before Income Tax | $ | (30 | ) | $ | (9 | ) | $ | (21 | ) |
For the Three Months Ended September 30, | |||||||||||
2018 | 2017 | Variance | |||||||||
Terminal Operating Costs | $ | 7 | $ | 6 | $ | 1 | |||||
Employee-Related Legacy Liability Expense | 11 | 12 | (1 | ) | |||||||
Lease Rental Expense | — | 1 | (1 | ) | |||||||
Coal Reserve Holding Costs | 1 | 1 | — | ||||||||
Closed and Idle Mines | 1 | 1 | — | ||||||||
Litigation Expense | 1 | — | 1 | ||||||||
Other | 2 | — | 2 | ||||||||
Total Operating and Other Costs | $ | 23 | $ | 21 | $ | 2 |
For the Nine Months Ended September 30, | |||||||||||
(in millions) | 2018 | 2017 | Variance | ||||||||
Revenue: | |||||||||||
Coal Revenue | $ | 1,017 | $ | 899 | $ | 118 | |||||
Freight Revenue | 38 | 52 | (14 | ) | |||||||
Miscellaneous Other Income | 17 | 19 | (2 | ) | |||||||
Gain on Sale of Assets | — | 6 | (6 | ) | |||||||
Total Revenue and Other Income | 1,072 | 976 | 96 | ||||||||
Cost of Coal Sold: | |||||||||||
Operating Costs | 597 | 588 | 9 | ||||||||
Depreciation, Depletion and Amortization | 129 | 118 | 11 | ||||||||
Total Cost of Coal Sold | 726 | 706 | 20 | ||||||||
Other Costs: | |||||||||||
Other Costs | 38 | 21 | 17 | ||||||||
Depreciation, Depletion and Amortization | 6 | 7 | (1 | ) | |||||||
Total Other Costs | 44 | 28 | 16 | ||||||||
Freight Expense | 38 | 52 | (14 | ) | |||||||
Selling, General and Administrative Costs | 43 | 51 | (8 | ) | |||||||
Interest Expense, net | — | 7 | (7 | ) | |||||||
Total Costs and Expenses | 851 | 844 | 7 | ||||||||
Earnings Before Income Tax | $ | 221 | $ | 132 | $ | 89 |
For the Nine Months Ended September 30, | |||||||||
Mine | 2018 | 2017 | Variance | ||||||
Bailey | 9,659 | 9,000 | 659 | ||||||
Enlow Fork | 7,386 | 7,169 | 217 | ||||||
Harvey | 3,709 | 3,697 | 12 | ||||||
Total | 20,754 | 19,866 | 888 |
For the Nine Months Ended September 30, | |||||||||||
2018 | 2017 | Variance | |||||||||
Total Tons Sold (in millions) | 20.7 | 19.9 | 0.8 | ||||||||
Average Revenue per Ton Sold | $ | 49.11 | $ | 45.26 | $ | 3.85 | |||||
Average Cash Cost per Ton Sold | $ | 28.87 | $ | 29.57 | $ | (0.70 | ) | ||||
Depreciation, Depletion and Amortization Costs per Ton Sold (Non-Cash Cost) | 6.20 | 5.94 | 0.26 | ||||||||
Total Costs per Ton Sold | $ | 35.07 | $ | 35.51 | $ | (0.44 | ) | ||||
Average Margin per Ton Sold | $ | 14.04 | $ | 9.75 | $ | 4.29 | |||||
Add: Depreciation, Depletion and Amortization Costs per Ton Sold | 6.20 | 5.94 | 0.26 | ||||||||
Average Cash Margin per Ton Sold (1) | $ | 20.24 | $ | 15.69 | $ | 4.55 |
For the Nine Months Ended | |||||||||||
September 30, | |||||||||||
(in millions) | 2018 | 2017 | Variance | ||||||||
Revenue: | |||||||||||
Terminal Revenue | $ | 48 | $ | 43 | $ | 5 | |||||
Miscellaneous Other Income | 30 | 34 | (4 | ) | |||||||
Gain on Sale of Assets | — | 7 | (7 | ) | |||||||
Total Revenue and Other Income | 78 | 84 | (6 | ) | |||||||
Other Costs and Expenses: | |||||||||||
Operating and Other Costs | 66 | 73 | (7 | ) | |||||||
Depreciation, Depletion and Amortization | 21 | — | 21 | ||||||||
Selling, General and Administrative Costs | 5 | 8 | (3 | ) | |||||||
Loss on Debt Extinguishment | 3 | — | 3 | ||||||||
Interest Expense, net | 63 | 5 | 58 | ||||||||
Total Other Costs and Expenses | 158 | 86 | 72 | ||||||||
Loss Before Income Tax | $ | (80 | ) | $ | (2 | ) | $ | (78 | ) |
For the Nine Months Ended September 30, | |||||||||||
2018 | 2017 | Variance | |||||||||
Terminal Operating Costs | $ | 19 | $ | 15 | $ | 4 | |||||
Employee-Related Legacy Liability Expense | 32 | 36 | (4 | ) | |||||||
Lease Rental Expense | 2 | 11 | (9 | ) | |||||||
Coal Reserve Holding Costs | 2 | 5 | (3 | ) | |||||||
Closed and Idle Mines | 3 | 6 | (3 | ) | |||||||
Bank Fees | 2 | — | 2 | ||||||||
Litigation Expense | 3 | — | 3 | ||||||||
Other | 3 | — | 3 | ||||||||
Total Operating and Other Costs | $ | 66 | $ | 73 | $ | (7 | ) |
• | Employee-Related Legacy Liability Expense decreased $4 million in the period-to-period comparison due to modifications made to the actuarial calculation of net periodic benefit cost at the beginning of each year. |
• | Lease Rental Expense decreased $9 million primarily due to the sale of certain subleased equipment to Murray Energy in the second quarter of 2017. |
• | Bank fees represent costs associated with the Company's A/R securitization facility (see Note 8 - Accounts Receivable Securitization of the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information). |
For the Nine Months Ended September 30, | |||||||||||
2018 | 2017 | Change | |||||||||
Cash Provided by Operating Activities | $ | 330 | $ | 172 | $ | 158 | |||||
Cash Used in Investing Activities | $ | (95 | ) | $ | (33 | ) | $ | (62 | ) | ||
Cash Used in Financing Activities | $ | (112 | ) | $ | (148 | ) | $ | 36 |
Year | Percentage | ||
2021 | 105.50% | ||
2022 | 102.75% | ||
2023 and thereafter | 100.00% |
• | An aggregate principal amount of $397 million in connection with the Term Loan B (TLB) Facility, due in November 2022, less $7 million of unamortized bond discount. Borrowings under the TLB Facility bear interest at a floating rate. |
• | An aggregate principal amount of $279 million of 11.00% senior secured second lien notes due in November 2025. Interest on the notes is payable May 15 and November 15 of each year. |
• | An aggregate principal amount of $74 million in connection with the Term Loan A (TLA) Facility, due in November 2021. Borrowings under the TLA Facility bear interest at a floating rate. |
• | An aggregate principal amount of $103 million of industrial revenue bonds which were issued to finance the Baltimore port facility and bear interest at 5.75% per annum and mature in September 2025. Interest on the industrial revenue bonds is payable March 1 and September 1 of each year. Payment of the principal and interest on the notes is guaranteed by CONSOL Energy. |
• | Advance royalty commitments of $2 million with an average interest rate of 9.42% per annum. |
• | An aggregate principal amount of $47 million of capital leases with a weighted average interest rate of 5.39% per annum. |
• | whether the operational, strategic and other benefits of the separation can be achieved; |
• | whether the costs and expenses of the separation can be controlled within expectations; |
• | deterioration in economic conditions in any of the industries in which our customers operate may decrease demand for our products, impair our ability to collect customer receivables and impair our ability to access capital; |
• | volatility and wide fluctuation in coal prices based upon a number of factors beyond our control including oversupply relative to the demand available for our products, weather and the price and availability of alternative fuels; |
• | an extended decline in the prices we receive for our coal affecting our operating results and cash flows; |
• | the risk of our debt agreements, our debt and changes in interest rates affecting our operating results and cash flows; |
• | the effect of our affiliated company credit agreement on our cash flows; |
• | foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad; |
• | our customers extending existing contracts or entering into new long-term contracts for coal on favorable terms; |
• | our reliance on major customers; |
• | our inability to collect payments from customers if their creditworthiness declines or if they fail to honor their contracts; |
• | our inability to acquire additional coal reserves and other assets; |
• | our inability to control the timing of divestitures and whether they provide their anticipated benefits; |
• | the availability and reliability of transportation facilities and other systems, disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our coal to market and fluctuations in transportation costs; |
• | a loss of our competitive position because of the competitive nature of coal industries, or a loss of our competitive position because of overcapacity in these industries impairing our profitability; |
• | coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions; |
• | the impact of potential, as well as any adopted environmental regulations including any relating to greenhouse gas emissions on our operating costs as well as on the market for coal; |
• | the risks inherent in coal operations, including our reliance upon third party contractors, being subject to unexpected disruptions, including geological conditions, equipment failure, delays in moving out longwall equipment, railroad derailments, security breaches or terroristic acts and other hazards, timing of completion of significant construction or repair of equipment, fires, explosions, seismic activities, accidents and weather conditions which could impact financial results; |
• | decreases in the availability of, or increases in, the price of commodities or capital equipment used in our coal mining operations; |
• | obtaining, maintaining and renewing governmental permits and approvals for our coal operations; |
• | the effects of government regulation on the discharge into the water or air, and the disposal and clean-up of, hazardous substances and wastes generated during our coal operations; |
• | the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down our operations; |
• | the potential for liabilities arising from environmental contamination or alleged environmental contamination in connection with our past or current coal operations; |
• | the effects of mine closing, reclamation and certain other liabilities; |
• | defects in our chain of title for our undeveloped reserves or failure to acquire additional property to perfect our title to coal rights; |
• | uncertainties in estimating our economically recoverable coal reserves; |
• | the outcomes of various legal proceedings, including those which are more fully described herein; |
• | exposure to employee-related long-term liabilities; |
• | failure by Murray Energy to satisfy certain liabilities it acquired from ParentCo, or failure to perform its obligations under various arrangements, which ParentCo guaranteed and for which we have indemnification obligations to ParentCo; |
• | 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 the Partnership are subordinated, and we may not receive distributions from the Partnership; |
• | the potential failure to retain and attract skilled personnel of the Company; |
• | the impact of the separation and the distribution and risks relating to the Company's ability to operate effectively as an independent, publicly traded company, including various costs associated with operation, and any difficulties associated with enhancing our accounting systems and internal controls and complying with financial reporting requirements; |
• | unfavorable terms in our separation from ParentCo, related agreements and other transactions and the Company’s agreement to provide certain indemnification to ParentCo following the separation; |
• | any failure of the Company’s customers, prospective customers, suppliers or other companies with whom the Company conducts business to be satisfied with the Company’s financial stability, or the Company’s failure to obtain any consents that may be required under existing contracts and other arrangements with third parties; |
• | a determination by the IRS that the distribution or certain related transactions should be treated as a taxable transaction; |
• | the Company’s ability to engage in desirable strategic or capital-raising transactions after the separation; |
• | the existence of any actual or potential conflicts of interest of the Company’s directors or officers because of their equity ownership in ParentCo following the separation and distribution; |
• | exposure to potential liabilities arising out of state and federal fraudulent conveyance laws and legal dividend requirements as a result of the separation and related transactions; |
• | uncertainty with respect to the Company’s common stock, including as to whether an active trading market will develop for the Company’s common stock, potential stock price volatility and future dilution; |
• | the existence of certain anti-takeover provisions in our governance documents, which could prevent or delay an acquisition of the Company and negatively impact the trading price of the Company’s common stock; |
• | cybersecurity threats; |
• | recent action and the possibility of future action on trade by U.S. and foreign governments; and |
• | other unforeseen factors. |
(a) | (b) | (c) | (d) | ||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs (000s omitted) (2) | |||||||||||
July 1, 2018 - July 31, 2018 | — | $ | — | — | $ | 74,383 | |||||||||
August 1, 2018 - August 31, 2018 | — | $ | — | — | $ | 74,383 | (3) | ||||||||
September 1, 2018 - September 30, 2018 | 190,272 | $ | 41.93 | 190,272 | $ | 65,020 | (4) | ||||||||
Total | 190,272 | $ | 41.93 |
Exhibits | Description | Method of Filing |
Omnibus Amendment, dated as of August 30, 2018, by and among CONSOL Funding LLC, CONSOL Pennsylvania Coal Company LLC, CONSOL Thermal Holdings LLC, CONSOL Energy Inc., CONSOL Marine Terminal LLC and PNC Bank, N.A. | Filed as Exhibit 10.1 to Form 8-K (file No. 001-38147) filed on September 6, 2018 | |
10.2* | CONSOL Energy Inc. Deferred Compensation Plan for Non-Employee Directors | Filed herewith |
Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002 | Filed herewith | |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |
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. | Filed herewith | |
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. | Filed herewith | |
Mine Safety and Health Administration Safety Data. | Filed herewith | |
101 | Interactive Data File (Form 10-Q for the quarterly period ended September 30, 2018, furnished in XBRL). | Filed herewith |
CONSOL ENERGY INC. | |||
By: | /s/ JAMES A. BROCK | ||
James A. Brock | |||
Director, Chief Executive Officer and President (Duly Authorized Officer and Principal Executive Officer) | |||
By: | /s/ DAVID M. KHANI | ||
David M. Khani | |||
Chief Financial Officer, Executive Vice President and Treasurer (Duly Authorized Officer and Principal Financial Officer) | |||
By: | /s/ JOHN M. ROTHKA | ||
John M. Rothka | |||
Chief Accounting Officer (Duly Authorized Officer and Principal Accounting Officer) |
1. | Purpose and Effective Date. The purpose of this Plan is to provide the non-employee members of the Board of Directors (the “Board”) of Consol Energy Inc., and its successors (the “Company”) with an opportunity to defer payment of all or a portion of their annual cash and/or stock compensation and to encourage them to acquire additional shares of the Company’s common stock. The Plan shall be effective as of September 25, 2018 (the “Effective Date”). The Plan is established in connection with the CONSOL Energy Inc. Omnibus Performance Incentive Plan (the “Equity Plan”). Unless otherwise defined in the Plan, capitalized terms used in the Plan shall have the same meanings assigned to them in the Equity Plan. |
2. | Definitions. Except as otherwise provided for herein or in the Equity Plan, the following terms shall have the meanings given in this section unless a different meaning is clearly implied by the context: |
a) | “Cash Compensation” means any compensation payable to a Director in cash for serving as a member of the Board, a Board committee or as a Committee Chair or Board Chair, but excluding any expense reimbursements. |
b) | “Change in Control” means “Change in Control” as defined in the Equity Plan. |
c) | “Compensation Committee” means the Compensation Committee of the Board. |
d) | “Deferred Compensation Account” means an account maintained for each Director who makes a deferral election as described in Section 4. |
e) | “Deferred Stock Unit” means a Stock Unit that is received by a Participant pursuant to this Plan and provides for the deferred receipt of such compensation. |
f) | “Director Compensation” means Director Cash Compensation and Restricted Stock Units, or any other equity-based compensation payable to Directors eligible for deferral, as approved by the Board. |
g) | “Eligible Director” shall mean a director who is not an employee of the Company or any of its Affiliates. |
h) | “Equity Plan” means the Consol Energy Omnibus Performance Incentive Plan as it may be amended or restated from time to time, or, to the extent applicable, any future or successor equity compensation plan of the Company. |
i) | “Participant” means an Eligible Director who elects to participate in the Plan. |
j) | “Fair Market Value” means “Fair Market Value” as defined in the Equity Plan. |
k) | “Plan” means the Consol Energy Inc. Deferred Compensation Plan for Non-Employee Directors. |
l) | “Plan Year” means a calendar year or, with respect to the year in which the Effective Date occurs, the portion of such calendar year occurring from and after the Effective Date. |
m) | “Plan Administrator” means the Board. |
n) | “Section 409A” means “Section 409A” as defined in the Equity Plan. |
o) | “Separation from Service” means “Separation from Service” as defined in the Equity Plan. |
p) | “Shares” means “Shares” as defined in the Equity Plan. |
q) | “Restricted Stock Unit” means an economic unit equal in value to one Share (or fraction thereof) of Company common stock. |
3. | Eligibility. All Eligible Directors shall be eligible to participate in the Plan. |
4. | Election to Defer Director Compensation. |
a) | Manner and Amount of Deferral Election. An Eligible Director may elect to defer receipt of all or a specified portion of his or her Director Compensation by giving written notice on an election form provided by the Plan Administrator specifying the amount of the deferral, subject to reasonable limitations established by the Plan Administrator on such deferrals, including but not limited to minimum and increment percentage amounts. An Eligible Director’s election to defer is irrevocable and may not be changed, except as may be provided in the election form. |
b) | Time of Election. Elections to defer the Director Compensation shall be made at the following times: |
i. | An Eligible Director may elect to defer Director Compensation at such time or times during the calendar year as permitted by the Plan Administrator; provided, however, that generally deferral elections shall be required to be completed and submitted to the Plan Administrator on or before the December 31 of the calendar year preceding the calendar year for which the Director’s Compensation relates. Such election shall be effective for Cash Compensation earned and Restricted Stock Units granted in the following calendar year(s). Initially, all deferral elections will be made only once a year. |
ii. | The deferral election shall include (i) the designation and portion of the Award to be deferred; (ii) the date on which settlement of the deferred Award shall be made or commence (which may be a fixed date such as the Participant’s attainment of a particular age or the Participant’s termination of service for any reason); and (iii) whether settlement shall be made on a single date or in installments over a period not to exceed five years from the Director’s termination of service with the Company and subject to earlier settlement as described in Section 6 below. |
iii. | A nominee for election to Director (who is not at the time of nomination a sitting Director and was not previously eligible to participate in this Plan) may elect to defer Director Compensation no later than 30 days after the date of the Director’s commencement of services as an Eligible Director. Such deferral election shall be effective for Cash Compensation earned and Restricted Stock Units granted following |
c) | Duration of Deferral Election. A deferral election shall apply to one Plan Year only and Participants shall be required to make a new deferral election prior to each Plan Year in order to implement a deferral election for such Plan Year. |
5. | Deferred Compensation Accounts. The Company shall establish on its books and records a Deferred Compensation Account for each Participant, as provided below. |
a) | Crediting of Cash Compensation “deferred.” Deferred Cash Compensation shall be credited to the Participant’s Deferred Compensation Account in the form of Deferred Stock Units effective as of the Annual Meeting date. Effective on such date, the Company shall credit the Deferred Compensation Account with a number of Deferred Stock Units determined by dividing (i) the portion of the Cash Compensation that the Participant elected to defer, by (ii) the Fair Market Value of the Shares on such date, rounded down to the nearest whole Deferred Stock Unit. No fractional Deferred Stock Units will be credited to a Participant’s account. Unused cash attributable to a fractional Deferred Stock Unit will be refunded to the Participant in cash as soon as practicable following the original payment date. A Participant will be fully vested in each Deferred Stock Unit that relates to deferred Cash Compensation. |
b) | Crediting of Restricted Stock Units “deferred.” Deferred Restricted Stock Units shall be credited to the Participant’s Deferred Compensation Account in an equal amount of Deferred Stock Units reflecting awards generally made on the day of the Annual Meeting. The Deferred Stock Units related to such deferred Restricted Stock Units shall be subject to the same vesting or other forfeiture restrictions that would have otherwise applied to such Restricted Stock Units. In the event the Participant forfeits Deferred Stock Units in accordance with the foregoing, the Participant’s Deferred Compensation Account shall be debited for the number of Deferred Stock Units forfeited. |
c) | Dividend Equivalents. Each Deferred Stock Unit credited to a Participant’s Deferred Compensation Account shall carry with it a right to receive dividend equivalents in respect of the Shares underlying such Deferred Stock Unit. Dividend equivalents shall be credited to Participants Deferred Compensation Account(s) on the Company’s applicable dividend payment date based on the number of Deferred Stock Units, whether vested or unvested, held in the Director’s Deferred Compensation Account on the applicable Company record date. No fractional dividend equivalents will be credited to a Participant’s account and the number of whole Shares relating to dividend equivalents to which a Director may be entitled may be rounded down to achieve such result. The dividend equivalent right associated with a Deferred Stock Unit shall remain outstanding until the delivery to the Participant of the Shares underlying such Deferred Stock Unit. |
d) | Adjustment of Deferred Stock Units. The Board is authorized to make adjustments in the terms and conditions of, and the criteria included in, Deferred Stock Units in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 3(c) of the Equity Plan) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Board determines that such adjustments are appropriate; |
6. | Payment of Deferred Compensation. |
a) | Distributions. Unless otherwise set forth in a Participant’s deferral election form, the Deferred Stock Units shall be settled (or commence settlement if an installment method is elected) and delivered (or commence delivery) on the earliest to occur of: |
i. | within 30 days following the Participant’s Separation from Service; |
ii. | on or within 30 days following a Change in Control; |
iii. | within 90 days following the Participant’s Disability; or |
iv. | within 90 days following the Participant’s death. |
b) | Medium of Payment. Payments from the Deferred Compensation Account shall be made in whole Shares of common stock for each whole Deferred Stock Unit, and in cash for any fractional Deferred Stock Unit; provided, that, the Company may choose in its discretion to pay the Participant cash in lieu of all or a portion of the Shares. Deferred Stock Units issued to and Shares of common stock paid to Participants under the Plan shall be issued and paid in accordance with the Equity Plan. |
7. | Unfunded Promise to Pay; No Segregation of Funds or Assets. Nothing in this Plan shall require the segregation of any assets of the Company or any type of funding by the Company, it being the intention of the parties that the Plan be an unfunded arrangement for federal income tax purposes. No Participant shall have any rights to or interest in any specific assets or the Shares by reason of the Plan, and any Participant’s rights to enforce payment of the obligations of the Company hereunder shall be those of a general creditor of the Company. |
8. | Nonassignability; Beneficiary Designation. The right of a Participant to receive any unpaid portion of the Participant’s Deferred Compensation Account shall not be assigned, transferred, pledged or encumbered or subjected in any manner to alienation or anticipation. However, in the event of a Participant’s death, the Company will pay the unpaid portion of the Participant’s Deferred Compensation Account to the Participant’s designated beneficiaries. If the Participant fails to complete a valid beneficiary designation, the Participant’s beneficiary will be his or her estate. |
9. | Administration. The Plan will be administered under the supervision of the Plan Administrator. The Plan Administrator will prescribe guidelines and forms for the implementation and administration of the Plan, interpret the terms of the Plan, and make all other substantive decisions regarding the operation of the Plan. The Plan Administrator’s decisions in its administration of the Plan are conclusive and binding on all persons. |
10. | Construction. The Plan is intended to comply with Section 409A and any regulations and guidance thereunder and shall be interpreted and operated in accordance with such intent. Notwithstanding anything to the contrary in the Plan, neither the Company, its affiliates, the Board, nor the Compensation Committee will have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Participant under Section 409A, and neither the Company, its affiliates, the Board, nor the Compensation Committee will have any liability to any Participant for such tax or penalty. The laws of the State of Delaware shall govern all questions of law arising with respect to the Plan, without regard to the choice of law principles of any jurisdiction, except where the laws governing the Plan are preempted by the laws of the United States. The Plan is intended to be construed so that the participation in the Plan will be exempt from Section 16(b) of the Securities Exchange Act of 1934, as amended, pursuant to regulations and interpretations issued from time to time by the Securities and Exchange Commission. If any provision of the Plan is held to be illegal or void, such illegality or invalidity shall not affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced as if the illegal or invalid provision had never been inserted. This document constitutes the entire Plan, and supersedes any prior oral or written agreements on the subject matter hereof. |
11. | Amendment and Termination. The Board may amend, suspend, or terminate the Plan at any time and for any reason. No amendment, suspension, or termination will, without the consent of the Participant, materially impair rights or obligations under any Deferred Stock Units previously awarded to the Participant under the Plan, except as provided below. The Board may terminate the Plan and distribute the Deferred Compensation Accounts to Participants in accordance with and subject to the rules of Treas. Reg. Section 1.409A-3(j)(4)(ix), or successor provisions, and any generally applicable guidance issued by the Internal Revenue Service permitting such termination and distribution. |
1. | I have reviewed this report on Form 10-Q of CONSOL Energy Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q of CONSOL Energy Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Received | ||||||||||||||||||||||||||
Notice | ||||||||||||||||||||||||||
Received | of | Legal | ||||||||||||||||||||||||
Total Dollar | Total | Notice of | Potential | Actions | ||||||||||||||||||||||
Section | Value of | Number | Pattern of | to have | Pending | Legal | Legal | |||||||||||||||||||
Section | 104(d) | MSHA | of | Violations | Pattern | as of | Actions | Actions | ||||||||||||||||||
Mine or Operating | 104 | Section | Citations | Section | Section | Assessments | Mining | Under | Under | Last | Initiated | Resolved | ||||||||||||||
Name/MSHA | S&S | 104(b) | and | 110(b)(2) | 107(a) | Proposed | Related | Section | Section | Day of | During | During | ||||||||||||||
Identification Number | Citations | Orders | Orders | Violations | Orders | (In Dollars) | Fatalities | 104(e) | 104(e) | Period (1) | Period | Period | ||||||||||||||
Active Operations | ||||||||||||||||||||||||||
Bailey | 36-07230 | 14 | — | — | — | — | 28,422 | — | No | No | 11 | 4 | 8 | |||||||||||||
Enlow Fork | 36-07416 | 34 | — | 2 | — | — | 85,909 | — | No | No | 16 | 5 | 2 | |||||||||||||
Harvey | 36-10045 | 1 | — | — | — | — | 2,202 | — | No | No | 11 | 2 | 1 | |||||||||||||
49 | — | 2 | — | — | 116,533 | — | 38 | 11 | 11 |
Mine or Operating Name/MSHA Identification Number | Contests of Citations, Orders (as of 9.30.18) (a) | Contests of Proposed Penalties (as of 9.30.18) (b) | Complaints for Compensation (as of 9.30.18) (c) | Complaints of Discharge, Discrimination or Interference (as of 9.30.18) (d) | Applications for Temporary Relief (as of 9.30.18) (e) | Appeals of Judges' Decisions or Order (as of 9.30.18) (f) | ||||||||||
Dockets | Citations | |||||||||||||||
Active Operations | ||||||||||||||||
Bailey | 36-07230 | — | 11 | 47 | — | — | — | 1 | ||||||||
Enlow Fork | 36-07416 | — | 16 | 101 | — | — | — | — | ||||||||
Harvey | 36-10045 | — | 11 | 60 | — | — | — | — | ||||||||
— | 38 | 208 | — | — | — | 1 |
Document and Equity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 15, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CONSOL Energy Inc. | |
Entity Central Index Key | 0001710366 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 27,778,006 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 9,084 | $ 8,518 | $ 132,751 | $ 107,209 |
Other Comprehensive Income: | ||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($1,232), ($1,893), ($3,697), ($5,679)) | 4,177 | 3,285 | 12,356 | 9,855 |
Other Comprehensive Income | 4,177 | 3,285 | 12,356 | 9,855 |
Comprehensive Income | 13,261 | 11,803 | 145,107 | 117,064 |
Less: Comprehensive Income Attributable to Noncontrolling Interest | 3,346 | 779 | 19,444 | 10,533 |
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders | $ 9,915 | $ 11,024 | $ 125,663 | $ 106,531 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Parenthetical - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Actuarially Determined Long-Term Liability Adjustments, Tax | $ 1,232 | $ 1,893 | $ 3,697 | $ 5,679 |
CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 62,500,000 | 62,500,000 |
Common stock shares issued (in shares) | 27,815,470 | 27,973,281 |
Common stock shares outstanding (in shares) | 27,815,470 | 27,973,281 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands |
Total |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings (Deficit) |
Accumulated Other Comprehensive (Loss) Income |
Total CONSOL Energy Inc. Stockholders' Equity |
Noncontrolling Interest |
Consol Coal Resources LP Units |
Consol Coal Resources LP Units
Capital in Excess of Par Value
|
Consol Coal Resources LP Units
Total CONSOL Energy Inc. Stockholders' Equity
|
Consol Coal Resources LP Units
Noncontrolling Interest
|
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 343,641 | $ 280 | $ 552,793 | $ (43,713) | $ (305,100) | $ 204,260 | $ 139,381 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 132,751 | 113,304 | 113,304 | 19,447 | |||||||
Actuarially Determined Long-Term Liability Adjustments (Net of $3,697 Tax) | 12,356 | 12,359 | 12,359 | (3) | |||||||
Comprehensive Income | 145,107 | 113,304 | 12,359 | 125,663 | 19,444 | ||||||
Reclassification of Stranded Tax Effect of Change in Tax Law | 0 | 84,729 | (84,729) | ||||||||
Separation Adjustments | (1,595) | (1,595) | (1,595) | ||||||||
Issuance of Common Stock | 0 | 1 | (1) | ||||||||
Retirement of outstanding shares | (11,259) | (3) | (5,555) | (5,701) | (11,259) | $ (1,385) | $ (392) | $ (392) | $ (993) | ||
Amortization of Stock-Based Compensation Awards | 7,638 | 6,268 | 6,268 | 1,370 | |||||||
Units/Shares Withheld for Taxes | (2,923) | (2,011) | (2,011) | (912) | |||||||
Distributions to Noncontrolling Interest | (16,763) | (16,763) | |||||||||
Ending balance at Sep. 30, 2018 | $ 462,461 | $ 278 | $ 549,507 | $ 148,619 | $ (377,470) | $ 320,934 | $ 141,527 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - Parenthetical - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Actuarially Determined Long-Term Liability Adjustments, Tax | $ 1,232 | $ 1,893 | $ 3,697 | $ 5,679 |
Retirement of common stock (in shares) | 281,272 | |||
Consol Coal Resources LP Units | ||||
Retirement of common stock (in shares) | 77,536 |
BASIS OF PRESENTATION |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION: Unless otherwise indicated or except where the context otherwise requires, references to “we,” “our,” “us,” “our Company,” “the Company” and “CONSOL Energy” refer to CONSOL Energy Inc. and its subsidiaries on or after November 28, 2017 and to CONSOL Mining Corporation and its subsidiaries prior to November 28, 2017, except to the extent of any discussion of the financial condition, results of operations, cash flows, and other business activities of the Company on or prior to November 28, 2017 that relate specifically to the Coal Business, in which case such references shall be to the Predecessor. Basis of Presentation The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for future periods. The Consolidated Balance Sheet at December 31, 2017 has been derived from the Audited Consolidated Financial Statements at that date but does not include all disclosures required by GAAP. This Form 10-Q report should be read in conjunction with CONSOL Energy Inc.'s Annual Report on Form 10-K for the year ended December 31, 2017. Basis of Consolidation The Unaudited Consolidated Financial Statements include the accounts of CONSOL Energy Inc., and its wholly owned and majority-owned and/or controlled subsidiaries. The portion of these entities that is not owned by the Company is presented as non-controlling interest. All significant intercompany transactions and accounts between subsidiaries within the Company have been eliminated in consolidation. Prior to the separation and distribution, CONSOL Energy did not operate as a separate, standalone entity. The Company's operations were included in ParentCo's financial results. Accordingly, for all periods prior to the separation and distribution, the accompanying Unaudited Consolidated Financial Statements were prepared from ParentCo's historical accounting records and were presented on a standalone basis as if the Company's operations had been conducted independently from ParentCo. Such Unaudited Consolidated Financial Statements include the historical operations that were considered to comprise the Company's businesses, as well as certain assets and liabilities that were historically held at ParentCo's corporate level but were specifically identifiable or otherwise attributable to the Company. ParentCo's net investment in these operations is reflected as Parent Net Investment in the accompanying Unaudited Consolidated Financial Statements. All significant intercompany transactions between ParentCo and the Company were included within Parent Net Investment in the accompanying Unaudited Consolidated Financial Statements. Cost Allocations The description and information on cost allocations is applicable for all periods included in the Unaudited Consolidated Financial Statements prior to the separation and distribution. Prior to the completion of the separation and distribution, the Company utilized centralized functions of ParentCo to support its operations, and in return, ParentCo allocated certain of its expenses to the Company. Such expenses represent costs related, but not limited, to treasury, legal, accounting, insurance, information technology, payroll administration, human resources, incentive plans and other services. These costs, together with an allocation of ParentCo overhead costs, are included within the Selling, General and Administrative Costs caption of the Unaudited Consolidated Statements of Income. Where it was possible to specifically attribute such expenses to activities of the Company, amounts have been charged or credited directly to the Company without allocation or apportionment. Allocation of all other such expenses was based on a reasonable reflection of the utilization of service provided or benefits received by the Company during the periods presented on a consistent basis, such as a percentage of total revenue and a percentage of total projected capital expenditures. The Company's management supports the methods used in allocating expenses and believes these methods to be reasonable estimates. Nevertheless, the Unaudited Consolidated Financial Statements of CONSOL Energy Inc. may not reflect the actual expenses that would have been incurred and may not reflect CONSOL Energy Inc.'s consolidated results of operations, financial position and cash flows had it been a standalone company during the periods prior to the separation and distribution. Actual costs that would have been incurred if CONSOL Energy Inc. had been a standalone company would depend on multiple factors, including organizational structure, capital structure, and strategic decisions made in various areas, including information technology and infrastructure. Transactions between CONSOL Energy Inc. and ParentCo were included as related party transactions in the Unaudited Consolidated Financial Statements and were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these transactions is reflected in the accompanying Unaudited Consolidated Statements of Cash Flows as a financing activity and in the Unaudited Consolidated Balance Sheets as Parent Net Investment. Long-term employee obligations, comprised of pensions, OPEB, CWP and workers' compensation, have been allocated to CONSOL Energy Inc. on the basis of the underlying employees comprising those plans. Prior to the completion of the separation and distribution, all external debt not directly attributable to the ParentCo Coal Business has been excluded from the Unaudited Consolidated Balance Sheets of CONSOL Energy Inc. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These changes will be effective for fiscal years ending after December 15, 2020, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13 - Fair Value Measurement (Topic 820) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements on fair value measurements including the consideration of costs and benefits. These changes will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11 - Leases (Topic 842) to assist stakeholders with implementation questions and issues as organizations prepare to adopt the new leasing standard. Under the amendments in Update 2018-11, entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and lessors may elect not to separate lease and nonlease components when certain conditions are met. These changes will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07 - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting. The amendments in this update seek to simplify accounting for non-employee share-based payments by clarifying and improving the areas of the overall measurement objective, measurement date, and awards with performance conditions. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management does not expect this update to have a material impact on the Company's financial statements. In February 2018, the FASB issued ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. CONSOL Energy adopted the new guidance during the first quarter of 2018 and elected to make the reclassification. As a result, retained earnings increased $84,729 with a corresponding decrease to accumulated other comprehensive loss. In January 2018, the FASB issued ASU 2018-01 - Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. This Update, if elected, would not require an entity to reassess the accounting treatment of existing land easements not currently accounted for as a lease under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this update is permitted for all entities. Management is expecting to adopt this practical expedient and is currently evaluating the impact this guidance may have on the Company’s financial statements. In November 2016, the FASB issued ASU 2016-18 - Statement of Cash Flows (Topic 230) - Restricted Cash. During the three months ended March 31, 2018, the Company adopted this guidance, which addressed the presentation of several items in the statement of cash flows. Specifically, the guidance identifies nine cash flow items and the sections where they must be presented within the statement of cash flows. Other than the classification of restricted cash, the adoption of this guidance had no impact on the Company's financial statements. This guidance requires that restricted cash be aggregated with cash and cash equivalents in both the beginning-of-period and end-of-period line items at the bottom of the statement of cash flows. Previously, the change in restricted cash between the beginning-of-period and end-of-period was reflected as either an investing, financing, operating, or non-cash activity based on the underlying nature of the transaction. Accordingly, for the accompanying Unaudited Consolidated Statement of Cash Flows for the nine months ended September 30, 2018, the cash and cash equivalents and restricted cash at end of period line item includes $25,862 of restricted cash. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the accompanying Unaudited Consolidated Balance Sheet that sums to the cash and cash equivalents and restricted cash at the end of the period presented on the accompanying Unaudited Consolidated Statement of Cash Flows for the nine months ended September 30, 2018:
*These amounts are reported in Prepaid Expenses and Other Assets on the accompanying Unaudited Consolidated Balance Sheets. In June 2016, the FASB issued ASU 2016-13 - Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The amendments in this Update will be applied using a modified-retrospective approach and, for public entities, are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for fiscal years beginning after December 15, 2018 and interim periods within those annual periods. Management does not expect this update to have a material impact on the Company's financial statements. In 2016, the FASB issued a new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses in their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. The ultimate impact of the standard will depend on the Company's lease portfolio as of the adoption date. CONSOL Energy will adopt ASC 842 using a modified retrospective transition method. The Company continues to assess its current population of contracts classified as leases, which will be updated as the lease population changes, continues to evaluate new business processes related to internal controls for leases and is assessing and documenting the accounting impacts related to the new standard. In addition to monitoring FASB activity regarding ASU 2016-02, the Company continues to monitor various non-authoritative groups with respect to implementation issues that could affect its assessment. These changes will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. Separation Transaction In December 2016, CNX announced its intent to separate into two independent, publicly-traded companies - an independently traded coal company and an independently traded oil and natural gas exploration and production company focused on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. In anticipation of the separation, CONSOL Energy was originally formed as CONSOL Mining Corporation in Delaware on June 21, 2017 to hold all of ParentCo’s Coal Business, including its interest in the Pennsylvania Mining Complex, and certain related coal assets, including ParentCo’s ownership interest in CNX Coal Resources LP, which owns a 25% undivided interest stake in PAMC, as well as ParentCo's ownership of the CONSOL Marine Terminal and undeveloped coal reserves (Greenfield Reserves) located in the Northern Appalachian, Central Appalachian and Illinois basins and certain related coal assets and liabilities (the Coal Business). The Registration Statement on Form 10 (as amended) filed by the Company with the SEC describes the Company and the assets and liabilities that comprise the Coal Business that it now owns after completion of the separation and distribution. The separation occurred on November 28, 2017, through the pro rata distribution by ParentCo of all of the outstanding common stock of CONSOL Mining Corporation to ParentCo’s shareholders. Following the separation and distribution, ParentCo continues to own the Gas Business. In connection with the separation, CONSOL Mining Corporation changed its name to CONSOL Energy Inc. and ParentCo changed its name to CNX Resources Corporation. In addition, CNX Coal Resources LP changed its name to CONSOL Coal Resources LP and its ticker to CCR. The separation was subject to a number of conditions, including, but not limited to: final approval by ParentCo’s Board of Directors; the continuing validity of the private letter ruling from the Internal Revenue Service regarding certain U.S. federal income tax matters relating to the transaction; receipt of an opinion of legal counsel regarding the qualification of the distribution, together with certain related transactions, as a transaction that is generally tax-free for U.S. federal income tax purposes; and the SEC declaring effective a Registration Statement on Form 10, as amended. The registration statement on Form 10 was declared effective on November 3, 2017. In connection with the separation and distribution, CONSOL Mining Corporation and ParentCo entered into a separation and distribution agreement on November 28, 2017 that identified the assets of the Coal Business that were transferred to CONSOL Mining Corporation, the liabilities that were assumed and the contracts that were transferred to each of CONSOL Mining Corporation and ParentCo as part of the separation into two companies. The agreement also implemented the legal and structural separation between the two companies. ParentCo and the Company also entered into additional ancillary agreements that govern the relationship between the two companies after the completion of the separation and distribution, and allocate between GasCo and the Company various assets, liabilities and obligations, including, among other things, employee benefits, environmental liabilities, intellectual property, and tax-related assets and liabilities. These additional agreements included a tax matters agreement, employee matters agreement, transition services agreement and certain agreements related to intellectual property. Earnings per Share Basic earnings per share are computed by dividing net income attributable to CONSOL Energy Inc. shareholders by the weighted average shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include additional shares from restricted stock units and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding restricted stock units and performance share units were released, and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. The third quarter of 2018 represents CONSOL Energy's third full quarter as a publicly-traded company. The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be anti-dilutive:
The computations for basic and dilutive earnings per share are as follows:
In 2017, the earnings per share included on the accompanying Unaudited Consolidated Statements of Income was calculated based on the 27,967,509 shares of CONSOL Energy common stock distributed in conjunction with the completion of the separation and distribution, and is considered pro forma in nature. Prior to November 28, 2017, CONSOL Energy did not have any issued or outstanding common stock. As of September 30, 2018, CONSOL Energy had 500,000 shares of preferred stock, none of which were issued or outstanding. |
REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE: The following table disaggregates CONSOL Energy's revenue by major source for the three and nine months ended September 30, 2018:
ASU 2014-09 - Revenue from Contracts with Customers (Topic 606): On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) for all contracts using the modified retrospective method. No cumulative adjustment to the opening balance of retained earnings was made as a result of initially applying the new revenue standard. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company does not expect the adoption of the new revenue standard to have a material impact to its net income on an ongoing basis. CONSOL Energy's revenue continues to be recognized when title passes to the customer. Coal Revenue Revenues are recognized when title passes to the customers and the price is fixed and determinable. Generally, title passes when coal is loaded at the central preparation facility and, on occasion, at terminal locations or other customer destinations. The Company's coal contract revenue per ton is fixed and determinable and adjusted for nominal quality adjustments. Some coal contracts also contain positive electric power price-related adjustments in addition to a fixed base price per ton. None of the Company’s coal contracts allow for retroactive adjustments to pricing after title to the coal has passed. Some of the Company's contracts span multiple years and have annual pricing modifications, based upon market-driven or inflationary adjustments, where no additional value is exchanged. Also, some of the Company's contracts contain favorable electric power price related adjustments, which represent market-driven price adjustments, wherein there is no additional value being exchanged. Management believes that the invoice price is the most appropriate rate at which to recognize revenue. While CONSOL Energy does, from time to time, experience costs of obtaining coal customer contracts with amortization periods greater than one year, those costs are immaterial to the Company's net income. At September 30, 2018, the Company does not have any capitalized costs to obtain customer contracts on its Unaudited Consolidated Balance Sheet. As of and for the three and nine months ended September 30, 2018, the Company has not recognized any amortization of previously existing capitalized costs of obtaining customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Terminal Revenue Terminal revenues are attributable to the Company's CONSOL Marine Terminal and include revenues earned from providing receipt and unloading of coal from rail cars, transporting coal from the receipt point to temporary storage or stockpile facilities located at the Terminal, stockpiling, blending, weighing, sampling, redelivery, and loading of coal onto vessels. Revenues for these services are generally earned on a throughput basis, and performance obligations are considered fulfilled as the services are performed. CONSOL Marine Terminal does not normally experience material costs of obtaining customer contracts with amortization periods greater than one year. At September 30, 2018, the Company does not have any capitalized costs to obtain customer contracts on its Unaudited Consolidated Balance Sheet. As of and for the three and nine months ended September 30, 2018, the Company has not recognized any amortization of previously existing capitalized costs of obtaining Terminal customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Freight Revenue Some of CONSOL Energy's coal contracts require that the Company sell its coal at locations other than its central preparation plant. The cost to transport the Company's coal to the ultimate sales point is passed through to the Company's customers and CONSOL Energy recognizes the freight revenue equal to the transportation costs when title of the coal passes to the customer. |
MISCELLANEOUS OTHER INCOME |
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MISCELLANEOUS OTHER INCOME | MISCELLANEOUS OTHER INCOME:
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COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS |
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COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS | COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS: Components of Net Periodic Benefit (Credit) Cost are as follows:
Expenses related to pension and other post-employment benefits are reflected in Operating and Other Costs in the Consolidated Statements of Income. |
COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS | COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS: Components of Net Periodic Benefit Cost are as follows:
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INCOME TAXES |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The effective tax rate for the three and nine months ended September 30, 2018 was (8.2)% and 6.0%, respectively. The effective tax rate for the three and nine months ended September 30, 2018 differs from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion. The effective tax rate for the three and nine months ended September 30, 2017 was 30.7% and 17.5%, respectively. The effective tax rate for the three and nine months ended September 30, 2017 differs from the U.S. federal statutory rate of 35%, primarily due to the income tax benefit for excess percentage depletion. On December 22, 2017, the President of the United States signed Public Law 115-97 “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018,” commonly referred to as the Tax Cuts and Jobs Act (“Tax Bill”). Under U.S. GAAP, the effects of new legislation are recognized upon enactment, which, for federal legislation, is the date the President signs a bill into law. Accordingly, recognition of the tax effects of the Tax Bill is required in the interim and annual periods that include December 22, 2017. The SEC also released Staff Accounting Bulletin 118 on December 22, 2017. This bulletin clarifies certain aspects of ASC 740 and provides a three-step process for applying ASC 740. First, a company must reflect in its financial statements the income tax effects of the Tax Bill on items for which the company can make a complete assessment. Next, a measurement period not to exceed one year is provided for a company to report provisional amounts of the income tax effects of the Tax Bill for items for which the company's assessment is incomplete, but for which it can make a reasonable estimate. A company may adjust provisional amounts as it obtains additional information in subsequent reporting periods. Finally, for items for which a company cannot make a reasonable estimate, a company is not required to report provisional amounts and will continue to apply ASC 740 based on tax law existing immediately before December 22, 2017. A company is required to report provisional amounts for these items in the first reporting period in which the company is able to make a reasonable estimate of the income tax effects of the Tax Bill. The Company recorded a deferred tax expense of approximately $58,558 in its financial statements for the period ended December 31, 2017. This impact is related to the reduction of the net deferred tax asset as a result of the federal corporate income tax rate being reduced from 35% to 21% for all periods after December 31, 2017. The Company recognized a tax benefit of $297 related to the Tax Bill in its financial statements for the three and nine months ended September 30, 2018. This benefit is related to finalizing the impact of certain provisions of the Tax Bill during this time period. The Tax Cuts and Jobs Act is a comprehensive tax reform bill containing a number of provisions that either currently or in the future could impact the Company. Examples include the ability to fully expense certain depreciable property and the limitation on the deductibility of business interest expense. As a result, the Company continues to monitor and evaluate all applicable provisions of the Tax Bill during the measurement period. The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the nine months ended September 30, 2018 and the year ended December 31, 2017, the Company did not have any unrecognized tax benefits. If accrual for interest or penalties is required, it is the Company's policy to include these as a component of income tax expense. The Company is subject to taxation in the United States, as well as various states, and Canada, as well as various provinces. Under the provisions of the Tax Matters Agreement signed on November 28, 2017 by and between CONSOL Energy Inc. (Parent) and CONSOL Mining Corporation (Company), certain subsidiaries of the Company are subject to examination for tax years for the period January 1, 2015 through the nine months ended September 30, 2018 for certain state and foreign returns. Further, the Company is subject to examination for the period November 29, 2017 through the nine months ended September 30, 2018 for federal and certain state returns. |
INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES: Inventory components consist of the following:
Inventories are stated at the lower of cost or net realizable value. The cost of coal inventories is determined by the first-in, first-out (“FIFO”) method. Coal inventory costs include labor, supplies, equipment costs, operating overhead, depreciation, depletion and amortization, and other related costs. The cost of supplies inventory is determined by the average cost method and includes operating and maintenance supplies to be used in the Company's coal operations. |
ACCOUNTS RECEIVABLE SECURITIZATION |
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Sep. 30, 2018 | |
Short-term Debt [Abstract] | |
ACCOUNTS RECEIVABLE SECURITIZATION | ACCOUNTS RECEIVABLE SECURITIZATION: CONSOL Energy and certain of its U.S. subsidiaries are parties to a trade accounts receivable securitization facility with financial institutions for the sale on a continuous basis of eligible trade accounts receivable. In August 2018, the securitization facility was amended to, among other things, extend the term of the securitization facility for three years ending August 30, 2021. Pursuant to the securitization facility, CONSOL Thermal Holdings LLC sells current and future trade receivables to CONSOL Pennsylvania Coal Company LLC. CONSOL Marine Terminals LLC and CONSOL Pennsylvania Coal Company LLC sells and/or contributes current and future trade receivables (including receivables sold to CONSOL Pennsylvania Coal Company LLC by CONSOL Thermal Holdings LLC) to CONSOL Funding LLC (the “SPV”). The SPV, in turn, pledges its interests in the receivables to PNC Bank, which either makes loans or issues letters of credit on behalf of the SPV. The maximum amount of advances and letters of credit outstanding under the securitization facility may not exceed $100 million. Loans under the securitization facility accrue interest at a reserve-adjusted LIBOR market index rate equal to the one-month Eurodollar rate. Loans and letters of credit under the securitization facility also accrue a program fee and a letter of credit participation fee, respectively, ranging from 2.00% to 2.50% per annum depending on the total net leverage ratio of CONSOL Energy. In addition, the SPV paid certain structuring fees to PNC Capital Markets LLC and will pay other customary fees to the lenders, including a fee on unused commitments equal to 0.60% per annum. At September 30, 2018, the Company's eligible accounts receivable yielded $41,188 of borrowing capacity. At September 30, 2018, the facility had no outstanding borrowings and $52,536 of letters of credit outstanding, leaving no unused capacity. CONSOL Energy posted $11,348 of cash collateral to secure the difference in the outstanding letters of credit and the eligible accounts receivable. Restricted cash of $11,348 is included in Prepaid Expenses and Other Assets in the Unaudited Consolidated Balance Sheets. At December 31, 2017, the Company's eligible accounts receivable yielded $60,582 of borrowing capacity. At December 31, 2017, the facility had no outstanding borrowings and $60,582 of letters of credit outstanding, leaving no unused capacity. Costs associated with the receivables facility totaled $658 thousand and $2,184 thousand for the three and nine months ended September 30, 2018. These costs have been recorded as financing fees which are included in Operating and Other Costs in the Unaudited Consolidated Statements of Income. The Company has not derecognized any receivables due to its continued involvement in the collections efforts. |
PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment consists of the following:
Coal reserves are controlled either through fee ownership or by lease. The duration of the leases vary; however, the lease terms are generally extended automatically to the exhaustion of economically recoverable reserves, as long as active mining continues. Coal interests held by lease provide the same rights as fee ownership for mineral extraction and are legally considered real property interests. As of September 30, 2018 and December 31, 2017, property, plant and equipment includes gross assets under capital lease of $49,619 and $3,559, respectively. Accumulated amortization for capital leases was $12,058 and $2,839 at September 30, 2018 and December 31, 2017, respectively. Amortization expense for assets under capital leases approximated $3,927 and $104 for the three months ended and $9,236 and $315 for the nine months ended September 30, 2018 and 2017, respectively, and is included in Depreciation, Depletion and Amortization in the accompanying Unaudited Consolidated Statements of Income. |
OTHER ACCRUED LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES:
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT:
* Excludes current portion of Capital Lease Obligations of $16,627 and $3,164 at September 30, 2018 and December 31, 2017, respectively. In November 2017, CONSOL Energy entered into a revolving credit facility with commitments up to $300 million (the “Revolving Credit Facility”), a Term Loan A Facility of up to $100 million (the “TLA Facility”) and a Term Loan B Facility of up to $400 million (the “TLB Facility”, and together with the Revolving Credit Facility and the TLA Facility, the “Senior Secured Credit Facilities”). Borrowings under the Company's Senior Secured Credit Facilities bear interest at a floating rate which can be, at the Company's option, either (i) LIBOR plus an applicable margin or (ii) an alternate base rate plus an applicable margin. The applicable margin for the Revolving Credit Facility and TLA Facility depends on the total net leverage ratio, whereas the applicable margin for the TLB Facility is fixed. The Revolving Credit and TLA Facilities mature on November 28, 2021. The TLB Facility matures on November 28, 2022. Obligations under the Senior Secured Credit Facilities are guaranteed by (i) all owners of the 75% undivided economic interest in the PAMC held by the Company, (ii) any other members of the Company’s group that own any portion of the collateral securing the Revolving Credit Facility, and (iii) subject to certain customary exceptions and agreed materiality thresholds, all other existing or future direct or indirect wholly owned restricted subsidiaries of the Company (excluding the Partnership and its wholly-owned subsidiaries). The Revolving Credit Facility and TLA Facility also include financial covenants, including (i) a maximum first lien gross leverage ratio, (ii) a maximum total net leverage ratio, and (iii) a minimum fixed charge coverage ratio. CONSOL Energy must maintain a maximum first lien gross leverage ratio covenant of no more than 2.25 to 1.00, measured quarterly, stepping down to 2.00 to 1.00 in March 2019 and 1.75 to 1.00 in March 2020. The maximum first lien gross leverage ratio is calculated as the ratio of Consolidated First Lien Debt to Consolidated EBITDA, excluding the Partnership. The maximum first lien gross leverage ratio was 1.29 to 1.00 at September 30, 2018. CONSOL Energy must maintain a maximum total net leverage ratio covenant of no more than 3.25 to 1.00, measured quarterly, stepping down to 3.00 to 1.00 in March 2019 and 2.75 to 1.00 in March 2020. The maximum total net leverage ratio is calculated as the ratio of Consolidated Indebtedness, minus Cash on Hand, to Consolidated EBITDA, excluding the Partnership. The maximum total net leverage ratio was 1.63 to 1.00 at September 30, 2018. Consolidated EBITDA, as used in the covenant calculation, excludes non-cash compensation expenses, non-recurring transaction expenses, extraordinary gains and losses, gains and losses on discontinued operations, non-cash charges related to legacy employee liabilities and gains and losses on debt extinguishment, and includes cash distributions received from the Partnership and subtracts cash payments related to legacy employee liabilities. The facilities also include a minimum fixed charge coverage covenant of no less than 1.00 to 1.00, measured quarterly, stepping up to 1.05 to 1.00 in March 2020 and 1.10 to 1.00 in March 2021. The minimum fixed charge coverage ratio is calculated as the ratio of Consolidated EBITDA to Consolidated Fixed Charges, excluding the Partnership. Consolidated Fixed Charges, as used in the covenant calculation, include cash interest payments, cash payments for income taxes, scheduled debt repayments, dividends paid, and Maintenance Capital Expenditures. The minimum fixed charge coverage ratio was 2.17 to 1.00 at September 30, 2018. The TLB Facility also includes a financial covenant that requires the Company to repay a certain amount of its borrowings under the TLB Facility within ten days after the date it files its Form 10-K with the Securities and Exchange Commission if the Company has excess cash flow (as defined in the credit agreement for the Senior Secured Credit Facilities) during the year covered by the applicable Form 10-K. As the amount of excess cash flow is a covenant feature only applicable as of the Company's year-end and calculated as of December 31, 2018, no amounts related to the prepayment of the TLB Facility have been classified as Current Portion of Long-Term Debt in the Unaudited Consolidated Balance Sheet as of September 30, 2018. At September 30, 2018, the Revolving Credit Facility had no borrowings outstanding and $54,065 of letters of credit outstanding, leaving $245,935 of unused capacity. At December 31, 2017, the Revolving Credit Facility had no borrowings outstanding and $27,426 of letters of credit outstanding, leaving $272,574 of unused capacity. From time to time, CONSOL Energy is required to post financial assurances to satisfy contractual and other requirements generated in the normal course of business. Some of these assurances are posted to comply with federal, state or other government agencies' statutes and regulations. CONSOL Energy sometimes uses letters of credit to satisfy these requirements and these letters of credit reduce the Company's borrowing facility capacity. In November 2017, CONSOL Energy issued $300 million in aggregate principal amount of 11.00% Senior Secured Second Lien Notes due 2025 (the “Second Lien Notes”) pursuant to an indenture (the “Indenture”) dated as of November 13, 2017, by and between the Company and UMB Bank, N.A., a national banking association, as trustee and collateral trustee (the “Trustee”). On November 28, 2017, certain subsidiaries of the Company executed a supplement to the Indenture and became party to the Indenture as a guarantor (the “Guarantors”). The Second Lien Notes are secured by second priority liens on substantially all of the assets of the Company and the Guarantors that are pledged and on a first-priority basis as collateral securing the Company’s obligations under the Senior Secured Credit Facilities (described above), subject to certain exceptions under the Indenture. During the nine months ended September 30, 2018, CONSOL Energy made total payments of $26 million on its outstanding TLA Facility, including accelerated payments of $15 million. The Company also repurchased $21 million of its outstanding 11.00% Senior Secured Second Lien Notes due in 2025 during the nine months ended September 30, 2018. As part of these transactions, $3,149 was included in Loss on Debt Extinguishment on the Unaudited Consolidated Statements of Income for the nine months ended September 30, 2018. |
COMMITMENTS AND CONTINGENT LIABILITIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES: The Company and ParentCo entered into a separation and distribution agreement on November 28, 2017 that implemented the legal and structural separation of the Company from ParentCo. The separation and distribution agreement also identified the assets of the Coal Business that were transferred to the Company and the liabilities and contracts related to the Coal Business that were assumed by the Company as part of the separation and distribution, and provides post-closing indemnification obligations and procedures between the Company and ParentCo relating to the liabilities of the Coal Business that the Company assumed. The Company (as the owner of the Coal Business following the separation and distribution) is subject to various lawsuits and claims with respect to such matters as personal injury, wrongful death, damage to property, exposure to hazardous substances, governmental regulations including environmental remediation, employment and contract disputes and other claims and actions arising out of the normal course of business. The Company accrues the estimated loss for these lawsuits and claims when the loss is probable and reasonably estimable. The Company’s estimated accruals as of September 30, 2018 related to these pending claims, individually and in the aggregate, are immaterial to the financial position, results of operations or cash flows of the Company as of September 30, 2018. It is possible that the aggregate loss in the future with respect to these lawsuits and claims could ultimately be material to the Company’s financial position, results of operations or cash flows; however, such amounts cannot be reasonably estimated. The amount claimed against the Company as of September 30, 2018 is disclosed below when an amount is expressly stated in the lawsuit or claim, which is not often the case. Fitzwater Litigation: Three nonunion retired coal miners have sued Fola Coal Company LLC, Consolidation Coal Company (“CCC”) and CONSOL of Kentucky Inc. (“COK”) (as well as ParentCo) in West Virginia Federal Court alleging ERISA violations in the termination of retiree health care benefits. The Plaintiffs contend they relied to their detriment on oral statements and promises of “lifetime health benefits” allegedly made by various members of management during Plaintiffs’ employment and that they were allegedly denied access to Summary Plan Documents that clearly reserved the right to modify or terminate the Retiree Health and Welfare Plan subject to Plaintiffs’ claims. Pursuant to Plaintiffs’ amended complaint filed on April 24, 2017, Plaintiffs request that retiree health benefits be reinstated and seek to represent a class of all nonunion retirees who were associated with AMVEST and COK areas of operation. The Company believes it has a meritorious defense and intends to vigorously defend this suit. Casey Litigation: A class action lawsuit was filed on August 23, 2017 on behalf of two nonunion retired coal miners against CCC, COK, CONSOL Buchanan Mining Co., LLC and Kurt Salvatori in West Virginia Federal Court alleging ERISA violations in the termination of retiree health care benefits. Filed by the same lawyers who filed the Fitzwater litigation, and raising nearly identical claims, the Plaintiffs contend they relied to their detriment on oral promises of “lifetime health benefits” allegedly made by various members of management during Plaintiffs’ employment and that they were not provided with copies of Summary Plan Documents clearly reserving to the Company the right to modify or terminate the Retiree Health and Welfare Plan. Plaintiffs request that retiree health benefits be reinstated for them and their dependents and seek to represent a class of all nonunion retirees of any ParentCo subsidiary that operated or employed individuals in McDowell or Mercer Counties, West Virginia, or Buchanan or Tazewell Counties, Virginia whose retiree welfare benefits were terminated. On December 1, 2017, the trial court judge in Fitzwater signed an order to consolidate Fitzwater with Casey. The Casey complaint was amended on March 1, 2018 to add new plaintiffs, add defendant CONSOL Pennsylvania Coal Company, LLC and eliminate defendant CONSOL Buchanan Mining Co., LLC in an attempt to expand the class of retirees. The Company believes it has a meritorious defense and intends to vigorously defend this suit. Other Matters: Various Company subsidiaries are defendants in certain other legal proceedings arising out of the conduct of the Coal Business prior to the separation and distribution, and the Company is also a defendant in other legal proceedings following the separation and distribution. In the opinion of management, based upon an investigation of these matters and discussion with legal counsel, the ultimate outcome of such other legal proceedings, individually and in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. As part of the separation and distribution, the Company assumed various financial obligations relating to the Coal Business or agreed to reimburse ParentCo for certain financial guarantees relating to the Coal Business that ParentCo retained following the separation and distribution. Employee-related financial guarantees have primarily been provided to support the United Mine Workers’ of America’s 1992 Benefit Plan and federal black lung and various state workers’ compensation self-insurance programs. Environmental financial guarantees have primarily been provided to support various performance bonds related to reclamation and other environmental issues. Coal and other financial guarantees have primarily been provided to support various sales contracts. Other guarantees have been extended to support insurance policies, legal matters, full and timely payments of mining equipment leases, and various other items necessary in the normal course of business. The following is a summary, as of September 30, 2018, of the financial guarantees, unconditional purchase obligations and letters of credit to certain third parties. These amounts represent the maximum potential of total future payments that the Company could be required to make under these instruments, or under the separation and distribution agreement to the extent retained by ParentCo on behalf of the Coal Business. These amounts have not been reduced for potential recoveries under recourse or collateralization provisions. Generally, recoveries under reclamation bonds would be limited to the extent of the work performed at the time of the default. No amounts related to these financial guarantees and letters of credit are recorded as liabilities in the financial statements. The Company’s management believes that these guarantees will expire without being funded, and therefore, the commitments will not have a material adverse effect on the Company’s financial condition.
Included in the above table are commitments and guarantees entered into in conjunction with the sale of Consolidation Coal Company and certain of its subsidiaries, which contain all five of its longwall coal mines in West Virginia and its river operations, to a subsidiary of Murray Energy Corporation. As part of the separation and distribution, ParentCo agreed to indemnify the Company and the Company agreed to indemnify ParentCo in each case with respect to guarantees of certain equipment lease obligations that were assumed by Murray Energy. In the event that Murray Energy would default on the obligations defined in the agreements, the Company would be required to perform under the guarantees. If the Company would be required to perform, the stock purchase agreement provides various recourse actions. As of September 30, 2018, the Company has not been required to perform under these guarantees. The equipment lease obligations are collateralized by the underlying assets. The current maximum estimated exposure under the Murray Energy guarantees as of September 30, 2018 and December 31, 2017 is believed to be approximately $30,000 and $35,000, respectively. At September 30, 2018 and December 31, 2017, the fair value of these guarantees was $818 and $1,040, respectively, and is included in Other Accrued Liabilities on the Unaudited Consolidated Balance Sheets. The fair value of certain of the guarantees was determined using the Company’s risk-adjusted interest rate. Significant increases or decreases in the risk-adjusted interest rates may result in a significantly higher or lower fair value measurement. No other amounts related to financial guarantees and letters of credit are recorded as liabilities in the financial statements. Significant judgment is required in determining the fair value of these guarantees. The guarantees of the leases are classified within Level 3 of the fair value hierarchy. The Company regularly evaluates the likelihood of default for all guarantees based on an expected loss analysis and records the fair value, if any, of its guarantees as an obligation in the consolidated financial statements. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION: CONSOL Energy Inc. consists of one reportable segment: Pennsylvania Mining Complex. The principal activities of PAMC are mining, preparation and marketing of thermal coal, sold primarily to power generators. It also includes selling, general and administrative activities, as well as various other activities assigned to PAMC. CONSOL Energy Inc.’s Other segment includes revenue and expenses from various corporate and diversified business activities that are not allocated to PAMC. The diversified business activities include coal terminal operations, closed and idle mine activities, selling, general and administrative activities, as well as various other non-operated activities, none of which are individually significant to the Company. Industry segment results for the three months ended September 30, 2018 are:
Industry segment results for the three months ended September 30, 2017 are:
Industry segment results for the nine months ended September 30, 2018 are:
Industry segment results for the nine months ended September 30, 2017 are:
* Revenues from these customers during the periods presented were less than 10% of the Company’s total sales. Reconciliation of Segment Information to Consolidated Amounts: Total Assets:
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS: CONSOL Energy determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources (including LIBOR-based discount rates), while unobservable inputs reflect the Company’s own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below. Level One - Quoted prices for identical instruments in active markets. Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs, including LIBOR-based discount rates. Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. The significant unobservable inputs used in the fair value measurement of the Company’s third party guarantees are the credit risk of the third party and the third party surety bond markets. A significant increase or decrease in these values, in isolation, would have a directionally similar effect resulting in higher or lower fair value measurement of the Company’s Level 3 guarantees. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The financial instruments measured at fair value on a recurring basis are summarized below:
The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: Long-term debt: The fair value of long-term debt is measured using unadjusted quoted market prices or estimated using discounted cash flow analyses. The discounted cash flow analyses are based on current market rates for instruments with similar cash flows. The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
Certain of the Company’s debt is actively traded on a public market and, as a result, constitutes Level 1 fair value measurements. The portion of the Company’s debt obligations that are not actively traded are valued through reference to the applicable underlying benchmark rate and, as a result, constitute Level 2 fair value measurements. |
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION: The payment obligations under the $400,000, Term Loan B due in November 2022, the $300,000, 11.000% per annum senior notes due November 2025, and the $100,000, Term Loan A due in November 2021 issued by CONSOL Energy are jointly and severally, and also fully and unconditionally, guaranteed by certain subsidiaries of CONSOL Energy. In accordance with positions established by the SEC, the following financial information sets forth separate financial information with respect to the parent, guarantor subsidiaries, CCR, a non-guarantor subsidiary, and the remaining non-guarantor subsidiaries. The principal elimination entries include investments in subsidiaries and certain intercompany balances and transactions. CONSOL Energy, the parent, and a guarantor subsidiary manage several assets and liabilities of all other wholly owned subsidiaries. These include, for example, deferred tax assets, cash and other post-employment liabilities. These assets and liabilities are reflected as parent company or guarantor company amounts for purposes of this presentation. Income Statement for the Three Months Ended September 30, 2018 (unaudited):
Balance Sheet at September 30, 2018 (unaudited):
Income Statement for the Three Months Ended September 30, 2017 (unaudited):
Balance Sheet at December 31, 2017:
Income Statement for the Nine Months Ended September 30, 2018 (unaudited):
Income Statement for the Nine Months Ended September 30, 2017 (unaudited):
Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2018 (unaudited):
Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2017 (unaudited):
Statement of Comprehensive Income for the Three Months Ended September 30, 2018 (unaudited):
Statement of Comprehensive Income for the Three Months Ended September 30, 2017 (unaudited):
Statement of Comprehensive Income for the Nine Months Ended September 30, 2018 (unaudited):
Statement of Comprehensive Income for the Nine Months Ended September 30, 2017 (unaudited):
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RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS: CNX Resources Corporation Transactions Separation from CNX Resources Corporation (ParentCo) On November 28, 2017, in connection with the separation and distribution, the Company and/or certain of its subsidiaries entered into several agreements with CNX Resources Corporation and/or the Partnership and/or certain of its subsidiaries that govern the relationship of the various parties following the separation, including the following:
Summaries of the material terms of the SDA, TSA, TMA, EMA, Omnibus Amendment, Contract Agency Amendment, Water Supply Amendment and MCSA may be found under the section entitled “Certain Relationships and Related Party Transactions” in that certain Information Statement of the Company, dated November 3, 2017, and the summaries of the material terms of the IPMA, TLA1, TLA2, the Operating Agreement Amendment and the Affiliated Company Credit Agreement may be found under Item 1.01 Entry into a Material Definitive Agreement to Form 8-K filed December 4, 2017. Refer to Note 1 - Basis of Presentation for further information on the separation from ParentCo. Also refer to Note 16 - Stock-Based Compensation in the Notes to the Audited Consolidated Financial Statements in Item 8 of the Company’s December 31, 2017 Form 10-K for information regarding the conversion of share-based awards from ParentCo to the Company as of the date of the separation and distribution. Cash Management and Treasury For periods prior to the separation and distribution, the Company participated in ParentCo’s centralized treasury and cash management processes. Transactions occurring in periods prior to the separation and distribution were considered to be effectively settled for cash at the time the transactions were recorded. These transactions and net cash transfers to and from ParentCo’s centralized cash management system are reflected as a component of ParentCo’s net investment on the Unaudited Consolidated Balance Sheets and as a financing activity within the accompanying Unaudited Consolidated Statements of Cash Flows. In the Unaudited Consolidated Statements of Stockholders’ Equity, ParentCo’s net investment on the Unaudited Consolidated Balance Sheets represents the cumulative net investment by ParentCo in the Company, including net income through the completion of the separation and distribution and net cash transfers to and from ParentCo. All significant transactions between the Company and CNX Resources Corporation have been included in the unaudited consolidated financial statements. Transition Services Agreements The Company also entered into a TSA and certain other agreements in connection with the SDA with ParentCo to cover certain continued corporate services provided by the Company and ParentCo to each other following the completion of the separation and distribution. In connection with the separation and distribution, the Company began to set up its own corporate functions, and pursuant to the TSA, ParentCo provided various corporate support services, including certain accounting, human resources, information technology, office and building, risk, security, tax and treasury, building security and tax services, as well as certain regulatory compliance services required during the period in which the Company remained a majority-owned subsidiary of ParentCo. Additional services may be identified from time to time and also be provided under the TSA. The charges associated with these services were not material during the three and nine months ended September 30, 2018, and are consistent with expenses that ParentCo has historically allocated or incurred with respect to such services. CNX Resources Receivables and Payables At September 30, 2018 and December 31, 2017, the Company had a payable to CNX Resources Corporation of $473 and $12,540, respectively. The Company also had a receivable from CNX Resources Corporation of $11,570 and $15,415, of which $5,282 and $4,500 was recorded in current assets and $6,288 and $10,915 was included in other assets on the Unaudited Consolidated Balance Sheets at September 30, 2018 and December 31, 2017, respectively. These items relate to the reimbursement of the one-time transaction costs as well as other reimbursements per the terms of the SDA. The one-time transaction costs related to the separation and distribution were approximately $40,545 for the year ended December 31, 2017. During the nine months ended September 30, 2018, the Company paid CNX Resources $18,234 for its portion of the one-time transaction costs related to the separation and distribution. Per the SDA, these costs are split equally by the two companies. These costs consist of consulting and professional fees associated with preparing for and executing the separation and distribution, as well as various other items. Corporate Allocations Prior to the completion of the separation and distribution, the Company utilized centralized functions of ParentCo to support its operations, and in return, ParentCo allocated certain of its expenses to the Company. Such expenses represent costs related, but not limited, to treasury, legal, accounting, insurance, information technology, payroll administration, human resources, incentive plans and other services. These costs, together with an allocation of ParentCo overhead costs, are included within the Selling, General and Administrative Costs caption on the Unaudited Consolidated Statements of Income. Where it was possible to specifically attribute such expenses to activities of the Company, amounts have been charged or credited directly to the Company without allocation or apportionment. Allocation of all other such expenses was based on a reasonable reflection of the utilization of service provided or benefits received by the Company during the periods presented on a consistent basis, such as a percentage of total revenue and a percentage of total projected capital expenditures. The Company’s management supports the methods used in allocating expenses and believes these methods to be reasonable estimates. CONSOL Coal Resources LP In July 2015, CONSOL Coal Resources LP closed its initial public offering of 5,000,000 common units representing limited partnership interests at a price to the public of $15.00 per unit. Additionally, Greenlight Capital entered into a common unit purchase agreement with CCR pursuant to which Greenlight Capital agreed to purchase, and CCR agreed to sell, 5,000,000 common units at a price per unit equal to $15.00, which equates to $75,000 in net proceeds. CCR’s general partner is CONSOL Coal Resources GP LLC, which was controlled by CNX at the time of the IPO and is now controlled by the Company following the separation and distribution. The underwriters of the IPO filing exercised an over-allotment option of 561,067 common units to the public at $15.00 per unit. In connection with its IPO, CCR entered into a $400,000 senior secured revolving credit facility with certain lenders and PNC Bank, National Association (PNC), as administrative agent (the “Original CCR Credit Facility”). Obligations under the revolving credit facility were guaranteed by CCR’s subsidiaries (the guarantor subsidiaries) and were secured by substantially all of CCR’s and CCR’s subsidiaries’ assets pursuant to a security agreement and various mortgages. CCR made an initial draw of $200,000, and after origination fees of $3,000, the net proceeds were $197,000. The total net proceeds related to these transactions that were distributed to ParentCo were $342,711. In September 2016, CCR and its wholly owned subsidiary, CONSOL Thermal, entered into a Contribution Agreement with ParentCo, CONSOL Pennsylvania Coal Company LLC and Conrhein Coal Company under which CONSOL Thermal acquired an additional 5% undivided interest in and to the Pennsylvania Mining Complex, in exchange for (i) cash consideration in the amount of $21,500 and (ii) CCR's issuance of 3,956,496 Class A Preferred Units representing limited partnership interests in CCR at an issue price of $17.01 per Class A Preferred Unit (the “Class A Preferred Unit Issue Price”), or an aggregate $67,300 in equity consideration. The Class A Preferred Unit Issue Price was calculated as the volume-weighted average trading price of CCR’s common units (the “Common Units”) over the trailing 15-day trading period ending on September 29, 2016 (or $14.79 per unit), plus a 15% premium. In October 2017, ParentCo elected to have the 3,956,496 Class A Preferred Units, representing its limited partnership interest in CCR, converted into an equal number of Common Units under the terms of the Second Amended and Restated Agreement of Limited Partnership of CCR. In connection with the PAMC acquisition, in September 2016, CCR’s General Partner and CCR entered into the First Amended and Restated Omnibus Agreement (the “Amended Omnibus Agreement”) with ParentCo and certain of its subsidiaries. Under the Amended Omnibus Agreement, ParentCo indemnified CCR for certain liabilities. The Amended Omnibus Agreement also amended CCR’s obligations to ParentCo with respect to the payment of an annual administrative support fee and reimbursement for the provisions of certain management and operating services provided, in each case to reflect structural changes in how those services are provided to CCR by ParentCo. The Company assumed this agreement as part of the separation and distribution. On November 28, 2017, the Company also entered into an Affiliated Company Credit Agreement with the Partnership and certain of its subsidiaries (the Partnership Credit Parties) under which the Company provides as lender a revolving credit facility in an aggregate principal amount of up to $275 million to the Partnership Credit Parties. In connection with the completion of the separation, the Partnership drew an initial $201 million, the net proceeds of which were used to repay outstanding amounts under the Original CCR Credit Facility and to provide working capital for the Partnership following the separation and for other general corporate purposes. The Original CCR Credit Facility was then terminated. The Affiliated Company Credit Agreement matures on February 27, 2023. Interest accrues at a rate ranging from 3.75% to 4.75%, subject to the Partnership's net leverage ratio. For the three and nine months ended September 30, 2018, $1,832 and $5,942 of interest expense is included in the Unaudited Consolidated Statements of Income, respectively. The collateral obligations under the Affiliated Company Credit Agreement generally mirror the Original CCR Credit Facility, as does the list of entities that will act as guarantors thereunder. The Affiliated Company Credit Agreement is subject to financial covenants relating to a maximum first lien gross leverage ratio and a maximum total net leverage ratio, which will be calculated on a consolidated basis for the Partnership and its restricted subsidiaries at the end of each fiscal quarter. The Partnership was in compliance with each of these financial covenants at September 30, 2018. The Affiliated Company Credit Agreement also contains a number of customary affirmative covenants and negative covenants, including limitations on the ability of the Partnership to incur additional indebtedness, grant liens, and make investments, acquisitions, dispositions, restricted payments, and prepayments of junior indebtedness (subject to certain limited exceptions). CCR is a party to a number of other agreements with CONSOL Energy, or its subsidiaries, that are described in detail in the section titled “Agreements with Affiliates” in Item 13 of CCR’s Form 10-K filed on February 16, 2018. Charges for services from the Company to CCR include the following:
Operating and Other Costs includes service costs for pension and insurance expenses. Selling, General and Administrative Costs include charges for incentive compensation, an annual administrative support fee and reimbursement for the provision of certain management and operating services provided by CNX prior to the separation and by CONSOL Energy following the separation. As of November 28, 2017, certain administrative services historically incurred by the Partnership are now incurred by CONSOL Energy and the Partnership's portion is reimbursed to CONSOL Energy. At September 30, 2018 and December 31, 2017, CCR had a net payable to the Company in the amount of $1,573 and $3,071, respectively. This payable includes reimbursements for business expenses, executive fees, stock-based compensation and other items under the omnibus agreement. In July 2018, CONSOL Energy Inc.'s Board of Directors approved an expansion of the stock and debt repurchase program (see Note 17 - Stock, Unit and Debt Repurchase). The program expansion allows the Company to use up to $25 million of the program to purchase CONSOL Coal Resources LP's outstanding common units in the open market. During the nine months ended September 30, 2018, 77,536 of the Partnership's common units were repurchased at an average price of $17.86 per unit. |
STOCK, UNIT AND DEBT REPURCHASE |
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Sep. 30, 2018 | |
Equity [Abstract] | |
STOCK, UNIT AND DEBT REPURCHASE | STOCK, UNIT AND DEBT REPURCHASE: In December 2017, CONSOL Energy’s Board of Directors approved a program to repurchase, from time to time, the Company’s outstanding shares of common stock or its 11.00% Senior Secured Second Lien Notes due 2025, in an aggregate amount of up to $50 million through the period ending June 30, 2019. The program was subsequently amended by CONSOL Energy’s Board of Directors in July 2018 to allow up to $100 million of repurchases of the Company’s common stock or its 11.00% Senior Secured Second Lien Notes due 2025, subject to certain limitations in the Company’s current credit agreement and the TMA. The Company’s Board of Directors also authorized the Company to use up to $25 million of the program to purchase CONSOL Coal Resources LP’s outstanding common units in the open market. Under the terms of the program, CONSOL Energy is permitted to make repurchases in the open market, in privately negotiated transactions, accelerated repurchase programs or in structured share repurchase programs. CONSOL Energy is also authorized to enter into one or more 10b5-1 plans with respect to any of the repurchases. Any repurchases of common stock, notes or units are to be funded from available cash on hand or short-term borrowings. The program does not obligate CONSOL Energy to acquire any particular amount of its common stock, notes or units, and can be modified or suspended at any time at the Company’s discretion. The program is conducted in compliance with applicable legal requirements and within the limits imposed by any credit agreement, receivables purchase agreement, indenture, or the TMA, and is subject to market conditions and other factors. During the nine months ended September 30, 2018, 281,272 shares of the Company’s common stock were repurchased and retired at an average price of $40.03 per share, and 77,536 of the Partnership’s common units were purchased at an average price of $17.86 per unit. Additionally, the Company repurchased approximately $20,524 of its Senior Secured Second Lien Notes. |
SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: On October 25, 2018, the Board of Directors of CCR's general partner declared a cash distribution of $0.5125 for the quarter ended September 30, 2018 per unit to CCR's limited partner unitholders and the holder of the general partner interest. The cash distribution will be paid on November 15, 2018 to the unitholders of record at the close of business on November 8, 2018. |
BASIS OF PRESENTATION (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for future periods. The Consolidated Balance Sheet at December 31, 2017 has been derived from the Audited Consolidated Financial Statements at that date but does not include all disclosures required by GAAP. This Form 10-Q report should be read in conjunction with CONSOL Energy Inc.'s Annual Report on Form 10-K for the year ended December 31, 2017. |
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Basis of Consolidation | Basis of Consolidation The Unaudited Consolidated Financial Statements include the accounts of CONSOL Energy Inc., and its wholly owned and majority-owned and/or controlled subsidiaries. The portion of these entities that is not owned by the Company is presented as non-controlling interest. All significant intercompany transactions and accounts between subsidiaries within the Company have been eliminated in consolidation. Prior to the separation and distribution, CONSOL Energy did not operate as a separate, standalone entity. The Company's operations were included in ParentCo's financial results. Accordingly, for all periods prior to the separation and distribution, the accompanying Unaudited Consolidated Financial Statements were prepared from ParentCo's historical accounting records and were presented on a standalone basis as if the Company's operations had been conducted independently from ParentCo. Such Unaudited Consolidated Financial Statements include the historical operations that were considered to comprise the Company's businesses, as well as certain assets and liabilities that were historically held at ParentCo's corporate level but were specifically identifiable or otherwise attributable to the Company. ParentCo's net investment in these operations is reflected as Parent Net Investment in the accompanying Unaudited Consolidated Financial Statements. All significant intercompany transactions between ParentCo and the Company were included within Parent Net Investment in the accompanying Unaudited Consolidated Financial Statements. |
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Cost Allocations | Cost Allocations The description and information on cost allocations is applicable for all periods included in the Unaudited Consolidated Financial Statements prior to the separation and distribution. Prior to the completion of the separation and distribution, the Company utilized centralized functions of ParentCo to support its operations, and in return, ParentCo allocated certain of its expenses to the Company. Such expenses represent costs related, but not limited, to treasury, legal, accounting, insurance, information technology, payroll administration, human resources, incentive plans and other services. These costs, together with an allocation of ParentCo overhead costs, are included within the Selling, General and Administrative Costs caption of the Unaudited Consolidated Statements of Income. Where it was possible to specifically attribute such expenses to activities of the Company, amounts have been charged or credited directly to the Company without allocation or apportionment. Allocation of all other such expenses was based on a reasonable reflection of the utilization of service provided or benefits received by the Company during the periods presented on a consistent basis, such as a percentage of total revenue and a percentage of total projected capital expenditures. The Company's management supports the methods used in allocating expenses and believes these methods to be reasonable estimates. Nevertheless, the Unaudited Consolidated Financial Statements of CONSOL Energy Inc. may not reflect the actual expenses that would have been incurred and may not reflect CONSOL Energy Inc.'s consolidated results of operations, financial position and cash flows had it been a standalone company during the periods prior to the separation and distribution. Actual costs that would have been incurred if CONSOL Energy Inc. had been a standalone company would depend on multiple factors, including organizational structure, capital structure, and strategic decisions made in various areas, including information technology and infrastructure. Transactions between CONSOL Energy Inc. and ParentCo were included as related party transactions in the Unaudited Consolidated Financial Statements and were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these transactions is reflected in the accompanying Unaudited Consolidated Statements of Cash Flows as a financing activity and in the Unaudited Consolidated Balance Sheets as Parent Net Investment. Long-term employee obligations, comprised of pensions, OPEB, CWP and workers' compensation, have been allocated to CONSOL Energy Inc. on the basis of the underlying employees comprising those plans. Prior to the completion of the separation and distribution, all external debt not directly attributable to the ParentCo Coal Business has been excluded from the Unaudited Consolidated Balance Sheets of CONSOL Energy Inc. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These changes will be effective for fiscal years ending after December 15, 2020, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13 - Fair Value Measurement (Topic 820) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements on fair value measurements including the consideration of costs and benefits. These changes will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11 - Leases (Topic 842) to assist stakeholders with implementation questions and issues as organizations prepare to adopt the new leasing standard. Under the amendments in Update 2018-11, entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and lessors may elect not to separate lease and nonlease components when certain conditions are met. These changes will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07 - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting. The amendments in this update seek to simplify accounting for non-employee share-based payments by clarifying and improving the areas of the overall measurement objective, measurement date, and awards with performance conditions. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management does not expect this update to have a material impact on the Company's financial statements. In February 2018, the FASB issued ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. CONSOL Energy adopted the new guidance during the first quarter of 2018 and elected to make the reclassification. As a result, retained earnings increased $84,729 with a corresponding decrease to accumulated other comprehensive loss. In January 2018, the FASB issued ASU 2018-01 - Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. This Update, if elected, would not require an entity to reassess the accounting treatment of existing land easements not currently accounted for as a lease under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this update is permitted for all entities. Management is expecting to adopt this practical expedient and is currently evaluating the impact this guidance may have on the Company’s financial statements. In November 2016, the FASB issued ASU 2016-18 - Statement of Cash Flows (Topic 230) - Restricted Cash. During the three months ended March 31, 2018, the Company adopted this guidance, which addressed the presentation of several items in the statement of cash flows. Specifically, the guidance identifies nine cash flow items and the sections where they must be presented within the statement of cash flows. Other than the classification of restricted cash, the adoption of this guidance had no impact on the Company's financial statements. This guidance requires that restricted cash be aggregated with cash and cash equivalents in both the beginning-of-period and end-of-period line items at the bottom of the statement of cash flows. Previously, the change in restricted cash between the beginning-of-period and end-of-period was reflected as either an investing, financing, operating, or non-cash activity based on the underlying nature of the transaction. Accordingly, for the accompanying Unaudited Consolidated Statement of Cash Flows for the nine months ended September 30, 2018, the cash and cash equivalents and restricted cash at end of period line item includes $25,862 of restricted cash. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the accompanying Unaudited Consolidated Balance Sheet that sums to the cash and cash equivalents and restricted cash at the end of the period presented on the accompanying Unaudited Consolidated Statement of Cash Flows for the nine months ended September 30, 2018:
*These amounts are reported in Prepaid Expenses and Other Assets on the accompanying Unaudited Consolidated Balance Sheets. In June 2016, the FASB issued ASU 2016-13 - Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The amendments in this Update will be applied using a modified-retrospective approach and, for public entities, are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for fiscal years beginning after December 15, 2018 and interim periods within those annual periods. Management does not expect this update to have a material impact on the Company's financial statements. In 2016, the FASB issued a new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses in their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. The ultimate impact of the standard will depend on the Company's lease portfolio as of the adoption date. CONSOL Energy will adopt ASC 842 using a modified retrospective transition method. The Company continues to assess its current population of contracts classified as leases, which will be updated as the lease population changes, continues to evaluate new business processes related to internal controls for leases and is assessing and documenting the accounting impacts related to the new standard. In addition to monitoring FASB activity regarding ASU 2016-02, the Company continues to monitor various non-authoritative groups with respect to implementation issues that could affect its assessment. These changes will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. |
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Earnings per Share | Earnings per Share Basic earnings per share are computed by dividing net income attributable to CONSOL Energy Inc. shareholders by the weighted average shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include additional shares from restricted stock units and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding restricted stock units and performance share units were released, and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. |
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Revenue Recognition | ASU 2014-09 - Revenue from Contracts with Customers (Topic 606): On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) for all contracts using the modified retrospective method. No cumulative adjustment to the opening balance of retained earnings was made as a result of initially applying the new revenue standard. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company does not expect the adoption of the new revenue standard to have a material impact to its net income on an ongoing basis. CONSOL Energy's revenue continues to be recognized when title passes to the customer. Coal Revenue Revenues are recognized when title passes to the customers and the price is fixed and determinable. Generally, title passes when coal is loaded at the central preparation facility and, on occasion, at terminal locations or other customer destinations. The Company's coal contract revenue per ton is fixed and determinable and adjusted for nominal quality adjustments. Some coal contracts also contain positive electric power price-related adjustments in addition to a fixed base price per ton. None of the Company’s coal contracts allow for retroactive adjustments to pricing after title to the coal has passed. Some of the Company's contracts span multiple years and have annual pricing modifications, based upon market-driven or inflationary adjustments, where no additional value is exchanged. Also, some of the Company's contracts contain favorable electric power price related adjustments, which represent market-driven price adjustments, wherein there is no additional value being exchanged. Management believes that the invoice price is the most appropriate rate at which to recognize revenue. While CONSOL Energy does, from time to time, experience costs of obtaining coal customer contracts with amortization periods greater than one year, those costs are immaterial to the Company's net income. At September 30, 2018, the Company does not have any capitalized costs to obtain customer contracts on its Unaudited Consolidated Balance Sheet. As of and for the three and nine months ended September 30, 2018, the Company has not recognized any amortization of previously existing capitalized costs of obtaining customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Terminal Revenue Terminal revenues are attributable to the Company's CONSOL Marine Terminal and include revenues earned from providing receipt and unloading of coal from rail cars, transporting coal from the receipt point to temporary storage or stockpile facilities located at the Terminal, stockpiling, blending, weighing, sampling, redelivery, and loading of coal onto vessels. Revenues for these services are generally earned on a throughput basis, and performance obligations are considered fulfilled as the services are performed. CONSOL Marine Terminal does not normally experience material costs of obtaining customer contracts with amortization periods greater than one year. At September 30, 2018, the Company does not have any capitalized costs to obtain customer contracts on its Unaudited Consolidated Balance Sheet. As of and for the three and nine months ended September 30, 2018, the Company has not recognized any amortization of previously existing capitalized costs of obtaining Terminal customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Freight Revenue Some of CONSOL Energy's coal contracts require that the Company sell its coal at locations other than its central preparation plant. The cost to transport the Company's coal to the ultimate sales point is passed through to the Company's customers and CONSOL Energy recognizes the freight revenue equal to the transportation costs when title of the coal passes to the customer. |
BASIS OF PRESENTATION (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the accompanying Unaudited Consolidated Balance Sheet that sums to the cash and cash equivalents and restricted cash at the end of the period presented on the accompanying Unaudited Consolidated Statement of Cash Flows for the nine months ended September 30, 2018:
*These amounts are reported in Prepaid Expenses and Other Assets on the accompanying Unaudited Consolidated Balance Sheets. |
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Schedule of Antidilutive Securities | The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be anti-dilutive:
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Schedule of Basic and Dilutive Earnings Per Share | The computations for basic and dilutive earnings per share are as follows:
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REVENUE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue by Major Source | The following table disaggregates CONSOL Energy's revenue by major source for the three and nine months ended September 30, 2018:
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MISCELLANEOUS OTHER INCOME (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Miscellaneous Other Income |
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COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit (Credit) Cost | Components of Net Periodic Benefit (Credit) Cost are as follows:
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COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost are as follows:
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INVENTORIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventory components consist of the following:
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment consists of the following:
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OTHER ACCRUED LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities |
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LONG-TERM DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt |
* Excludes current portion of Capital Lease Obligations of $16,627 and $3,164 at September 30, 2018 and December 31, 2017, respectively. |
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Commitment Expiration | The Company’s management believes that these guarantees will expire without being funded, and therefore, the commitments will not have a material adverse effect on the Company’s financial condition.
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SEGMENT INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Industry Segment Results | Industry segment results for the three months ended September 30, 2018 are:
Industry segment results for the three months ended September 30, 2017 are:
Industry segment results for the nine months ended September 30, 2018 are:
Industry segment results for the nine months ended September 30, 2017 are:
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Schedule of Segment Revenues from Major Customers | For the three and nine months ended September 30, 2018 and 2017, the PAMC segment had revenues from the following customers, each comprising over 10% of the Company’s total sales:
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Schedule of Total Assets | Total Assets:
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Measured at Fair Value | The financial instruments measured at fair value on a recurring basis are summarized below:
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Schedule of Fair Value of Financial Instruments | The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
|
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement | Income Statement for the Three Months Ended September 30, 2017 (unaudited):
Income Statement for the Three Months Ended September 30, 2018 (unaudited):
Income Statement for the Nine Months Ended September 30, 2018 (unaudited):
Income Statement for the Nine Months Ended September 30, 2017 (unaudited):
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Balance Sheet | Balance Sheet at September 30, 2018 (unaudited):
Balance Sheet at December 31, 2017:
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Condensed Statement of Cash Flows | Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2018 (unaudited):
Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2017 (unaudited):
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Statement of Comprehensive Income | Statement of Comprehensive Income for the Three Months Ended September 30, 2018 (unaudited):
Statement of Comprehensive Income for the Three Months Ended September 30, 2017 (unaudited):
Statement of Comprehensive Income for the Nine Months Ended September 30, 2018 (unaudited):
Statement of Comprehensive Income for the Nine Months Ended September 30, 2017 (unaudited):
|
RELATED PARTY TRANSACTIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Charges for services from the Company to CCR include the following:
|
BASIS OF PRESENTATION - Schedule of Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 250,452 | $ 153,979 | ||
Restricted cash | 25,862 | 0 | ||
Cash and cash equivalents and restricted cash | $ 276,314 | $ 153,979 | $ 3,697 | $ 13,311 |
BASIS OF PRESENTATION - Schedule of Antidilutive Securities (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Anti-Dilutive Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share (in shares) | 620 | 0 | 620 | 0 |
BASIS OF PRESENTATION - Schedule of Basic and Dilutive Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Numerator: | ||||
Net Income | $ 9,084 | $ 8,518 | $ 132,751 | $ 107,209 |
Less: Net Income Attributable to Noncontrolling Interest | 3,350 | 790 | 19,447 | 10,567 |
Net Income Attributable to CONSOL Energy Inc. Shareholders | $ 5,734 | $ 7,728 | $ 113,304 | $ 96,642 |
Denominator: | ||||
Weighted-average shares of common stock outstanding (in shares) | 27,982,538 | 27,967,509 | 28,011,488 | 27,967,509 |
Effect of dilutive shares (in shares) | 593,322 | 0 | 516,527 | 0 |
Weighted-average diluted shares of common stock outstanding (in shares) | 28,575,860 | 27,967,509 | 28,528,015 | 27,967,509 |
Earnings per Share: | ||||
Basic (in dollars per share) | $ 0.20 | $ 0.28 | $ 4.04 | $ 3.46 |
Dilutive (in dollars per share) | $ 0.20 | $ 0.28 | $ 3.97 | $ 3.46 |
REVENUE (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Contracts with Customers | $ 313,355 | $ 316,113 | $ 1,102,272 | $ 994,053 |
Coal Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Contracts with Customers | 294,797 | 279,245 | 1,016,503 | 899,400 |
Terminal Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Contracts with Customers | 16,115 | 15,065 | 47,995 | 42,806 |
Freight Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue from Contracts with Customers | $ 2,443 | $ 21,803 | $ 37,774 | $ 51,847 |
MISCELLANEOUS OTHER INCOME (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Other Income and Expenses [Abstract] | ||||
Royalty Income - Non-Operated Coal | $ 5,160 | $ 3,520 | $ 19,108 | $ 15,713 |
Purchased Coal Sales | 2,901 | 3,569 | 15,389 | 9,667 |
Property Easements and Option Income | 1,069 | 1,402 | 5,479 | 2,396 |
Rental Income | 896 | 1,589 | 3,066 | 12,722 |
Interest Income | 523 | 448 | 1,591 | 1,495 |
Contract Buyout | 0 | 8,410 | 0 | 8,410 |
Other | 429 | 775 | 2,601 | 2,105 |
Miscellaneous Other Income | $ 10,978 | $ 19,713 | $ 47,234 | $ 52,508 |
COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS - Schedule of Components of Net Periodic Benefit (Credit) Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $ 288 | $ 759 | $ 863 | $ 2,277 |
Interest Cost | 5,876 | 6,121 | 17,628 | 18,363 |
Expected Return on Plan Assets | (10,092) | (10,596) | (30,277) | (31,787) |
Amortization of Prior Service Credits | (126) | (60) | (377) | (180) |
Amortization of Actuarial Loss | 2,179 | 1,955 | 6,537 | 5,865 |
Net Periodic Benefit (Credit) Cost | (1,875) | (1,821) | (5,626) | (5,462) |
Other Post-Employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 0 | 0 | 0 | 0 |
Interest Cost | 4,677 | 5,986 | 14,030 | 17,958 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service Credits | (601) | (601) | (1,804) | (1,804) |
Amortization of Actuarial Loss | 4,051 | 5,778 | 12,154 | 17,334 |
Net Periodic Benefit (Credit) Cost | $ 8,127 | $ 11,163 | $ 24,380 | $ 33,488 |
COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
CWP | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | $ 1,662 | $ 1,280 | $ 4,987 | $ 3,842 |
Interest Cost | 1,311 | 1,013 | 3,934 | 3,038 |
Amortization of Actuarial Gain | (213) | (1,908) | (640) | (5,724) |
State Administrative Fees and Insurance Bond Premiums | 0 | 0 | 0 | 0 |
Net Periodic Benefit (Credit) Cost | 2,760 | 385 | 8,281 | 1,156 |
Workers' Compensation | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | 1,558 | 1,569 | 4,673 | 4,706 |
Interest Cost | 571 | 580 | 1,712 | 1,740 |
Amortization of Actuarial Gain | (20) | (150) | (59) | (449) |
State Administrative Fees and Insurance Bond Premiums | 675 | 609 | 1,986 | 1,969 |
Net Periodic Benefit (Credit) Cost | $ 2,784 | $ 2,608 | $ 8,312 | $ 7,966 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (as a percent) | (8.20%) | 30.70% | 6.00% | 17.50% | |
Deferred tax expense | $ 58,558 | ||||
Tax benefit | $ 297 | $ 297 |
INVENTORIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Coal | $ 9,572 | $ 11,411 |
Supplies | 42,898 | 42,009 |
Total Inventories | $ 52,470 | $ 53,420 |
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Subsidence Liability | $ 90,311 | $ 88,027 |
Accrued Payroll and Benefits | 16,045 | 14,689 |
Accrued Interest | 13,305 | 10,039 |
Litigation | 9,270 | 8,197 |
Accrued Other Taxes | 5,164 | 7,510 |
Short-Term Incentive Compensation | 4,862 | 4,729 |
Deferred Revenue | 155 | 6,807 |
Longwall Equipment Buyout | 0 | 22,631 |
Equipment Lease Rental | 0 | 9,865 |
Other | 18,424 | 23,900 |
Current Portion of Long-Term Liabilities: | ||
Postretirement Benefits Other than Pensions | 37,238 | 37,464 |
Asset Retirement Obligations | 31,823 | 30,480 |
Workers' Compensation | 12,369 | 13,317 |
Pneumoconiosis Benefits | 10,792 | 12,972 |
Total Other Accrued Liabilities | $ 249,758 | $ 290,627 |
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Aug. 23, 2017
plaintiff
|
Apr. 24, 2017
plaintiff
|
Sep. 30, 2018
USD ($)
mine
|
Dec. 31, 2017
USD ($)
|
|
Loss Contingencies [Line Items] | ||||
Number of mines sold | mine | 5 | |||
Guarantees maximum exposure | $ | $ 30,000 | $ 35,000 | ||
Fair value of guarantees | $ | $ 818 | $ 1,040 | ||
Fitzwater Litigation | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 3 | |||
Casey Litigation | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 2 |
SEGMENT INFORMATION - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
SEGMENT INFORMATION - Schedule of Segment Revenues from Major Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenue, Major Customer [Line Items] | ||||
Revenue from contracts with customers | $ 313,355 | $ 316,113 | $ 1,102,272 | $ 994,053 |
PAMC | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from contracts with customers | 297,240 | 301,048 | 1,054,277 | 951,247 |
Sales Revenue, Goods, Net | Customer Concentration Risk | Customer A | PAMC | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from contracts with customers | 46,727 | 209,968 | ||
Sales Revenue, Goods, Net | Customer Concentration Risk | Customer B | PAMC | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from contracts with customers | 84,110 | 181,236 | 114,451 | |
Sales Revenue, Goods, Net | Customer Concentration Risk | Customer C | PAMC | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from contracts with customers | $ 59,364 | $ 70,159 | $ 169,052 | $ 177,948 |
SEGMENT INFORMATION - Schedule of Total Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|---|
Items excluded from segment assets: | |||
Deferred tax assets | $ 72,120 | $ 75,065 | |
Segment Assets | 2,745,928 | $ 2,707,099 | $ 2,588,529 |
Corporate Reconciling Items and Eliminations | |||
Items excluded from segment assets: | |||
Cash and other investments | 275,377 | 86,131 | |
Deferred tax assets | 72,120 | 189,380 | |
Reportable Segments | Operating Segments | |||
Items excluded from segment assets: | |||
Segment Assets | 1,891,606 | 1,912,656 | |
All Other Segments | Operating Segments | |||
Items excluded from segment assets: | |||
Segment Assets | $ 506,825 | $ 400,362 |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Murray Energy Guarantees | $ (818) | $ (1,040) |
Fair Value Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Murray Energy Guarantees | 0 | 0 |
Fair Value Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Murray Energy Guarantees | 0 | 0 |
Fair Value Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Murray Energy Guarantees | $ (818) | $ (1,040) |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-Term Debt, Carrying Amount | $ 848,523 | $ 897,097 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-Term Debt, Fair Value | $ 905,597 | $ 931,768 |
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION - Narrative (Details) - USD ($) |
Sep. 30, 2018 |
Nov. 30, 2017 |
---|---|---|
Loans Payable | Term Loan B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Debt instrument face value | $ 400,000,000 | |
Loans Payable | Term Loan A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Debt instrument face value | 100,000,000 | |
Senior Notes | Senior Secured Second Lien Notes due 2025 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Debt instrument face value | $ 300,000,000 | $ 300,000,000 |
Stated interest rate (as a percent) | 11.00% | 11.00% |
RELATED PARTY TRANSACTIONS - Schedule of Related Party Disclosures (Details) - Majority Shareholder - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Related Party Transaction [Line Items] | ||||
Total Services from CONSOL Energy | $ 3,070 | $ 1,684 | $ 8,115 | $ 4,877 |
Operating and Other Costs | ||||
Related Party Transaction [Line Items] | ||||
Total Services from CONSOL Energy | 725 | 850 | 2,172 | 2,589 |
Selling, General and Administrative Costs | ||||
Related Party Transaction [Line Items] | ||||
Total Services from CONSOL Energy | $ 2,345 | $ 834 | $ 5,943 | $ 2,288 |
STOCK, UNIT AND DEBT REPURCHASE (Details) - USD ($) |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018 |
Jul. 31, 2018 |
Dec. 31, 2017 |
Nov. 30, 2017 |
|
Class of Stock [Line Items] | ||||
Aggregate authorized amount | $ 50,000,000 | |||
Stock and debt repurchase authorized amount | $ 100,000,000 | |||
Shares repurchased (in shares) | 281,272 | |||
Average share price (in dollars per share) | $ 40.03 | |||
Senior Secured Second Lien Notes due 2025 | ||||
Class of Stock [Line Items] | ||||
Repayments of debt | $ 20,524,000 | |||
Senior Notes | Senior Secured Notes due 2025 | ||||
Class of Stock [Line Items] | ||||
Stated interest rate (as a percent) | 11.00% | 11.00% | ||
Senior Notes | Senior Secured Second Lien Notes due 2025 | ||||
Class of Stock [Line Items] | ||||
Stated interest rate (as a percent) | 11.00% | 11.00% | ||
Repayments of debt | $ 20,524,000 | |||
Consol Coal Resources LP Units | ||||
Class of Stock [Line Items] | ||||
Stock and debt repurchase additional amount authorized | $ 25,000,000 | |||
Shares repurchased (in shares) | 77,536 | |||
Average share price (in dollars per share) | $ 17.86 |
SUBSEQUENT EVENTS (Details) |
Oct. 25, 2018
$ / shares
|
---|---|
Subsequent Event | CONSOL Coal Resources LP | |
Subsequent Event [Line Items] | |
Cash distribution declared (per common unit) | $ 0.5125 |
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