GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION

GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION:

The payment obligations under the $275,000, Term Loan B due in September 2024, the $300,000, 11.000% per annum senior notes due November 2025, and the $100,000, Term Loan A due in March 2023 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 June 30, 2019 (unaudited):

	Parent Issuer			Guarantor			CCR Non-Guarantor			Non-Guarantor		Elimination			Consolidated
Revenue and Other Income:
Coal Revenue	$	—		$	262,965		$	87,655		$	—	$	—		$	350,620
Terminal Revenue	—			16,708			—			—		—			16,708
Freight Revenue	—			2,890			964			—		—			3,854
Miscellaneous Other Income (Loss)	55,908			(8,869		)	1,038			19,000		(54,883		)	12,194
Gain (Loss) on Sale of Assets	1,291			(348		)	(10		)	—		—			933
Total Revenue and Other Income	57,199			273,346			89,647			19,000		(54,883		)	384,309
Costs and Expenses:
Operating and Other Costs	—			194,580			58,450			418		—			253,448
Depreciation, Depletion and Amortization	—			34,815			11,336			—		—			46,151
Freight Expense	—			2,890			964			—		—			3,854
Selling, General and Administrative Costs	—			13,335			2,953			—		—			16,288
Loss on Debt Extinguishment	1,500			—			—			—		—			1,500
Interest Expense, net	14,227			262			1,557			—		—			16,046
Total Costs And Expenses	15,727			245,882			75,260			418		—			337,287
Earnings Before Income Tax	41,472			27,464			14,387			18,582		(54,883		)	47,022
Income Tax Benefit	(1,808		)	—			—			—		—			(1,808		)
Net Income	43,280			27,464			14,387			18,582		(54,883		)	48,830
Less: Net Income Attributable to Noncontrolling Interest	—			—			—			—		5,550			5,550
Net Income Attributable to CONSOL Energy Inc. Shareholders	$	43,280		$	27,464		$	14,387		$	18,582	$	(60,433	)	$	43,280

Balance Sheet at June 30, 2019 (unaudited):

	Parent Issuer		Guarantor		CCR Non-Guarantor		Non-Guarantor		Elimination			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	154,815	$	361	$	460	$	36	$	—		$	155,672
Restricted Cash	14,781		—		—		3,915		—			18,696
Accounts and Notes Receivable:
Trade	—		—		—		110,454		—			110,454
Other Receivables	21,026		7,671		599		—		—			29,296
Inventories	—		39,598		11,593		—		—			51,191
Prepaid Expenses and Other Assets	9,154		16,353		5,537		—		—			31,044
Total Current Assets	199,776		63,983		18,189		114,405		—			396,353
Property, Plant and Equipment:
Property, Plant and Equipment	—		3,961,814		965,678		—		—			4,927,492
Less-Accumulated Depreciation, Depletion and Amortization	—		2,275,603		548,745		—		—			2,824,348
Total Property, Plant and Equipment-Net	—		1,686,211		416,933		—		—			2,103,144
Other Assets:
Deferred Income Taxes	91,837		—		—		—		—			91,837
Affiliated Credit Facility	137,550		—		—		—		(137,550		)	—
Investment in Affiliates	807,972		—		—		—		(807,972		)	—
Right of Use Asset - Operating Leases	—		64,111		17,994		—		—			82,105
Other	35,851		42,650		13,531		—		—			92,032
Total Other Assets	1,073,210		106,761		31,525		—		(945,522		)	265,974
Total Assets	$	1,272,986	$	1,856,955	$	466,647	$	114,405	$	(945,522	)	$	2,765,471
Liabilities and Equity:
Current Liabilities:
Accounts Payable	$	77,955	$	18,259	$	24,811	$	7,458	$	2,398		$	130,881
Accounts Payable (Recoverable)-Related Parties	—		—		380		—		(380		)	—
Current Portion of Long-Term Debt	23,185		11,194		3,595		—		—			37,974
Other Accrued Liabilities	80,455		122,495		38,117		350		(2,398		)	239,019
Total Current Liabilities	181,595		151,948		66,903		7,808		(380		)	407,874
Long-Term Debt:	565,083		144,888		140,646		—		(137,550		)	713,067
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions	—		432,495		—		—		—			432,495
Pneumoconiosis Benefits	—		160,184		4,683		—		—			164,867
Asset Retirement Obligations	—		226,873		10,776		—		—			237,649
Workers’ Compensation	—		56,484		3,015		—		—			59,499
Salary Retirement	57,805		—		—		—		—			57,805
Operating Lease Liability	—		53,771		14,695		—		—			68,466
Other	—		12,967		539		—		—			13,506
Total Deferred Credits and Other Liabilities	57,805		942,774		33,708		—		—			1,034,287
Total CONSOL Energy Inc. Stockholders’ Equity	468,503		617,345		225,390		106,597		(949,332		)	468,503
Noncontrolling Interest	—		—		—		—		141,740			141,740
Total Liabilities and Equity	$	1,272,986	$	1,856,955	$	466,647	$	114,405	$	(945,522	)	$	2,765,471

Income Statement for the Three Months Ended June 30, 2018 (unaudited):

	Parent Issuer		Guarantor		CCR Non-Guarantor			Non-Guarantor			Elimination			Consolidated
Revenue and Other Income:
Coal Revenue	$	—	$	278,023	$	92,674		$	—		$	—		$	370,697
Terminal Revenue	—		16,659		—			—			—			16,659
Freight Revenue	—		13,083		4,361			—			—			17,444
Miscellaneous Other Income	70,678		5,583		1,036			—			(66,928		)	10,369
Gain (Loss) on Sale of Assets	8		110		(14		)	—			—			104
Total Revenue and Other Income	70,686		313,458		98,057			—			(66,928		)	415,273
Costs and Expenses:
Operating and Other Costs	—		190,023		57,299			873			—			248,195
Depreciation, Depletion and Amortization	—		43,065		11,896			—			—			54,961
Freight Expense	—		13,083		4,361			—			—			17,444
Selling, General and Administrative Costs	—		12,364		3,341			—			—			15,705
Loss on Debt Extinguishment	1,723		—		—			—			—			1,723
Interest Expense, net	20,769		735		1,784			—			(1,784		)	21,504
Total Costs And Expenses	22,492		259,270		78,681			873			(1,784		)	359,532
Earnings (Loss) Before Income Tax	48,194		54,188		19,376			(873		)	(65,144		)	55,741
Income Tax Expense	3,032		—		—			—			—			3,032
Net Income (Loss)	45,162		54,188		19,376			(873		)	(65,144		)	52,709
Less: Net Income Attributable to Noncontrolling Interest	—		—		—			—			7,547			7,547
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	45,162	$	54,188	$	19,376		$	(873	)	$	(72,691	)	$	45,162

Balance Sheet at December 31, 2018:

	Parent Issuer			Guarantor		CCR Non-Guarantor		Non-Guarantor		Elimination			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	234,536		$	138	$	1,003	$	—	$	—		$	235,677
Restricted Cash	14,557			—		—		14,701		—			29,258
Accounts and Notes Receivable:
Trade	—			—		—		87,589		—			87,589
Other Receivables	24,352			15,935		1,068		—		—			41,355
Inventories	—			37,580		11,066		—		—			48,646
Prepaid Expenses and Other Assets	10,883			15,451		5,096		—		—			31,430
Total Current Assets	284,328			69,104		18,233		102,290		—			473,955
Property, Plant and Equipment:
Property, Plant and Equipment	—			3,891,873		946,298		—		—			4,838,171
Less-Accumulated Depreciation, Depletion and Amortization	—			2,204,896		526,747		—		—			2,731,643
Total Property, Plant and Equipment-Net	—			1,686,977		419,551		—		—			2,106,528
Other Assets:
Deferred Income Taxes	77,545			—		—		—		—			77,545
Affiliated Credit Facility	141,129			—		—		—		(141,129		)	—
Investment in Affiliates	605,981			—		—		—		(605,981		)	—
Other	40,760			47,031		14,908		—		—			102,699
Total Other Assets	865,415			47,031		14,908		—		(747,110		)	180,244
Total Assets	$	1,149,743		$	1,803,112	$	452,692	$	102,290	$	(747,110	)	$	2,760,727
Liabilities and Equity:
Current Liabilities:
Accounts Payable	$	(721	)	$	102,995	$	24,834	$	—	$	3,822		$	130,930
Accounts Payable (Recoverable)-Related Parties	(2,291		)	36,220		3,831		87,593		(125,353		)	—
Current Portion of Long-Term Debt	8,157			11,139		3,503		—		112,013			134,812
Other Accrued Liabilities	92,534			105,806		31,916		—		(3,822		)	226,434
Total Current Liabilities	97,679			256,160		64,084		87,593		(13,340		)	492,176
Long-Term Debt:	577,957			151,202		146,196		—		(141,129		)	734,226
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions	—			441,246		—		—		—			441,246
Pneumoconiosis Benefits	—			160,741		4,260		—		—			165,001
Asset Retirement Obligations	—			226,209		9,775		—		—			235,984
Workers’ Compensation	—			56,623		3,119		—		—			59,742
Salary Retirement	64,172			—		—		—		—			64,172
Other	—			16,051		518		—		—			16,569
Total Deferred Credits and Other Liabilities	64,172			900,870		17,672		—		—			982,714
Total CONSOL Energy Inc. Stockholders’ Equity	409,935			494,880		224,740		14,697		(734,317		)	409,935
Noncontrolling Interest	—			—		—		—		141,676			141,676
Total Liabilities and Equity	$	1,149,743		$	1,803,112	$	452,692	$	102,290	$	(747,110	)	$	2,760,727

Income Statement for the Six Months Ended June 30, 2019 (unaudited):

	Parent Issuer			Guarantor			CCR Non-Guarantor			Non-Guarantor		Elimination			Consolidated
Revenue and Other Income:
Coal Revenue	$	—		$	512,342		$	170,781		$	—	$	—		$	683,123
Terminal Revenue	—			34,526			—			—		—			34,526
Freight Revenue	—			7,887			2,629			—		—			10,516
Miscellaneous Other Income (Loss)	109,700			(6,337		)	2,349			19,000		(99,226		)	25,486
Gain (Loss) on Sale of Assets	1,291			(14		)	(5		)	—		—			1,272
Total Revenue and Other Income	110,991			548,404			175,754			19,000		(99,226		)	754,923
Costs and Expenses:
Operating and Other Costs	—			372,184			110,544			833		—			483,561
Depreciation, Depletion and Amortization	—			74,322			22,553			—		—			96,875
Freight Expense	—			7,887			2,629			—		—			10,516
Selling, General and Administrative Costs	—			30,698			7,513			—		—			38,211
Loss on Debt Extinguishment	24,643			—			—			—		—			24,643
Interest Expense, net	31,291			443			2,908			—		—			34,642
Total Costs And Expenses	55,934			485,534			146,147			833		—			688,448
Earnings Before Income Tax	55,057			62,870			29,607			18,167		(99,226		)	66,475
Income Tax Benefit	(2,658		)	—			—			—		—			(2,658		)
Net Income	57,715			62,870			29,607			18,167		(99,226		)	69,133
Less: Net Income Attributable to Noncontrolling Interest	—			—			—			—		11,418			11,418
Net Income Attributable to CONSOL Energy Inc. Shareholders	$	57,715		$	62,870		$	29,607		$	18,167	$	(110,644	)	$	57,715

Income Statement for the Six Months Ended June 30, 2018 (unaudited):

	Parent Issuer		Guarantor		CCR Non-Guarantor		Non-Guarantor			Elimination			Consolidated
Revenue and Other Income:
Coal Revenue	$	—	$	541,280	$	180,426	$	—		$	—		$	721,706
Terminal Revenue	—		31,880		—		—			—			31,880
Freight Revenue	—		26,498		8,833		—			—			35,331
Miscellaneous Other Income	160,990		16,601		3,237		—			(144,572		)	36,256
Gain on Sale of Assets	—		296		62		—			—			358
Total Revenue and Other Income	160,990		616,555		192,558		—			(144,572		)	825,531
Costs and Expenses:
Operating and Other Costs	—		366,843		109,586		1,568			—			477,997
Depreciation, Depletion and Amortization	—		81,722		22,710		—			—			104,432
Freight Expense	—		26,498		8,833		—			—			35,331
Selling, General and Administrative Costs	—		22,828		6,361		—			—			29,189
Loss on Debt Extinguishment	3,149		—		—		—			—			3,149
Interest Expense, net	41,054		1,495		3,735		—			(3,735		)	42,549
Total Costs And Expenses	44,203		499,386		151,225		1,568			(3,735		)	692,647
Earnings (Loss) Before Income Tax	116,787		117,169		41,333		(1,568		)	(140,837		)	132,884
Income Tax Expense	9,217		—		—		—			—			9,217
Net Income (Loss)	107,570		117,169		41,333		(1,568		)	(140,837		)	123,667
Less: Net Income Attributable to Noncontrolling Interest	—		—		—		—			16,097			16,097
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	107,570	$	117,169	$	41,333	$	(1,568	)	$	(156,934	)	$	107,570

Condensed Statement of Cash Flows for the Six Months Ended June 30, 2019 (unaudited):

	Parent Issuer			Guarantor			CCR Non-Guarantor			Non-Guarantor		Elimination			Consolidated
Net Cash Provided by (Used in) Operating Activities	$	161,749		$	(43,026	)	$	47,078		$	—	$	—		$	165,801
Cash Flows from Investing Activities:
Capital Expenditures	—			(64,908		)	(18,046		)	—		—			(82,954		)
Proceeds from Sales of Assets	—			1,296			4			—		—			1,300
(Investments in), net of Distributions from, Subsidiaries	(86,783		)	95,629			—			—		(8,846		)	—
Net Cash (Used in) Provided by Investing Activities	(86,783		)	32,017			(18,042		)	—		(8,846		)	(81,654		)
Cash Flows from Financing Activities:
Payments on Finance Leases	—			(7,242		)	(1,890		)	—		—			(9,132		)
Net (Payments on) Proceeds from Related Party Long-Term Notes	(2,000		)	—			2,000			—		—			—
Proceeds from Term Loan A	26,250			—			—			—		—			26,250
Payments on Term Loan A	(3,750		)	—			—			—		—			(3,750		)
Payments on Term Loan B	(123,062		)	—			—			—		—			(123,062		)
Buyback of Second Lien Notes	(19,320		)	—			—			—		—			(19,320		)
Distributions to Noncontrolling Interest	—			—			(28,809		)	—		17,690			(11,119		)
Shares/Units Withheld for Taxes	(4,743		)	880			(880		)	—		—			(4,743		)
Repurchases of Common Stock	(9,550		)	—			—			—		—			(9,550		)
Purchases of CCR Units	(119		)	—			—			—		—			(119		)
Debt-Related Financing Fees	(20,169		)	—			—			—		—			(20,169		)
Net Cash (Used in) Provided by Financing Activities	$	(156,463	)	$	(6,362	)	$	(29,579	)	$	—	$	17,690		$	(174,714	)

Condensed Statement of Cash Flows for the Six Months Ended June 30, 2018 (unaudited):

	Parent Issuer			Guarantor			CCR Non-Guarantor			Non-Guarantor		Elimination			Consolidated
Net Cash (Used in) Provided by Operating Activities	$	(1,344	)	$	201,323		$	78,213		$	—	$	—		$	278,192
Cash Flows from Investing Activities:
Capital Expenditures	—			(44,020		)	(12,179		)	—		—			(56,199		)
Proceeds from Sales of Assets	—			1,064			165			—		—			1,229
Distributions from, net of (Investments in), Subsidiaries	21,478			(3,959		)	—			—		(17,519		)	—
Net Cash Provided by (Used in) Investing Activities	21,478			(46,915		)	(12,014		)	—		(17,519		)	(54,970		)
Cash Flows from Financing Activities:
Payments on Finance Leases	—			(5,186		)	(1,411		)	—		—			(6,597		)
Net Proceeds from (Payments on) Related Party Long-Term Notes	36,083			—			(36,083		)	—		—			—
Payments on Term Loan A	(26,250		)	—			—			—		—			(26,250		)
Payments on Term Loan B	(2,000		)	—			—			—		—			(2,000		)
Buyback of Second Lien Notes	(20,524		)	—			—			—		—			(20,524		)
Distributions to Noncontrolling Interest	—			—			(28,693		)	—		17,519			(11,174		)
Shares/Units Withheld for Taxes	—			(1,972		)	(899		)	—		—			(2,871		)
Spin Distribution to CNX Resources	—			(18,234		)	—			—		—			(18,234		)
Repurchases of Common Stock	(3,281		)	—			—			—		—			(3,281		)
Debt-Related Financing Fees	(1,767		)	—			—			—		—			(1,767		)
Net Cash (Used in) Provided by Financing Activities	$	(17,739	)	$	(25,392	)	$	(67,086	)	$	—	$	17,519		$	(92,698	)

Statement of Comprehensive Income for the Three Months Ended June 30, 2019 (unaudited):

	Parent Issuer			Guarantor		CCR Non-Guarantor			Non- Guarantor		Elimination			Consolidated
Net Income	$	43,280		$	27,464	$	14,387		$	18,582	$	(54,883	)	$	48,830
Other Comprehensive Income:
Net Actuarial Gain (Loss)	2,462			—		(3		)	—		—			2,459
Unrecognized Loss on Derivatives	(264		)	—		—			—		—			(264		)
Other Comprehensive Income (Loss)	2,198			—		(3		)	—		—			2,195
Comprehensive Income	45,478			27,464		14,384			18,582		(54,883		)	51,025
Less: Comprehensive Income Attributable to Noncontrolling Interest	—			—		—			—		5,549			5,549
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders	$	45,478		$	27,464	$	14,384		$	18,582	$	(60,432	)	$	45,476

Statement of Comprehensive Income for the Three Months Ended June 30, 2018 (unaudited):

	Parent Issuer		Guarantor		CCR Non-Guarantor			Non- Guarantor			Elimination			Consolidated
Net Income (Loss)	$	45,162	$	54,188	$	19,376		$	(873	)	$	(65,144	)	$	52,709
Other Comprehensive Income (Loss):
Net Actuarial Gain (Loss)	4,184		—		(2		)	—			—			4,182
Other Comprehensive Income (Loss)	4,184		—		(2		)	—			—			4,182
Comprehensive Income (Loss)	49,346		54,188		19,374			(873		)	(65,144		)	56,891
Less: Comprehensive Income Attributable to Noncontrolling Interest	—		—		—			—			7,550			7,550
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	49,346	$	54,188	$	19,374		$	(873	)	$	(72,694	)	$	49,341

Statement of Comprehensive Income for the Six Months Ended June 30, 2019 (unaudited):

	Parent Issuer			Guarantor		CCR Non-Guarantor			Non- Guarantor		Elimination			Consolidated
Net Income	$	57,715		$	62,870	$	29,607		$	18,167	$	(99,226	)	$	69,133
Other Comprehensive Income:
Net Actuarial Gain (Loss)	4,919			—		(6		)	—		6			4,919
Unrecognized Loss on Derivatives	(264		)	—		—			—		—			(264		)
Other Comprehensive Income (Loss)	4,655			—		(6		)	—		6			4,655
Comprehensive Income	62,370			62,870		29,601			18,167		(99,220		)	73,788
Less: Comprehensive Income Attributable to Noncontrolling Interest	—			—		—			—		11,416			11,416
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders	$	62,370		$	62,870	$	29,601		$	18,167	$	(110,636	)	$	62,372

Statement of Comprehensive Income for the Six Months Ended June 30, 2018 (unaudited):

	Parent Issuer		Guarantor		CCR Non-Guarantor			Non- Guarantor			Elimination			Consolidated
Net Income (Loss)	$	107,570	$	117,169	$	41,333		$	(1,568	)	$	(140,837	)	$	123,667
Other Comprehensive Income (Loss):
Net Actuarial Gain (Loss)	8,183				(4		)	—			—			8,179
Other Comprehensive Income (Loss)	8,183		—		(4		)	—			—			8,179
Comprehensive Income (Loss)	115,753		117,169		41,329			(1,568		)	(140,837		)	131,846
Less: Comprehensive Income Attributable to Noncontrolling Interest	—		—		—			—			16,098			16,098
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	115,753	$	117,169	$	41,329		$	(1,568	)	$	(156,935	)	$	115,748