x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 51-0337383 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Class | Shares outstanding as of April 22,2013 | |
Common stock, $0.01 par value | 228,629,068 |
TABLE OF CONTENTS | ||
Page | ||
PART I FINANCIAL INFORMATION | ||
ITEM 1. | Condensed Financial Statements | |
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II OTHER INFORMATION | ||
ITEM 1. | ||
ITEM 4. | Mine Safety Disclosures | |
ITEM 6. |
ITEM 1. | CONDENSED FINANCIAL STATEMENTS |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Sales—Outside | $ | 1,226,165 | $ | 1,311,471 | |||
Sales—Gas Royalty Interests | 14,204 | 12,206 | |||||
Sales—Purchased Gas | 1,358 | 839 | |||||
Freight—Outside | 14,061 | 49,293 | |||||
Other Income | 33,852 | 52,961 | |||||
Total Revenue and Other Income | 1,289,640 | 1,426,770 | |||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below) | 932,963 | 904,137 | |||||
Gas Royalty Interests Costs | 11,806 | 10,249 | |||||
Purchased Gas Costs | 959 | 517 | |||||
Freight Expense | 14,061 | 49,293 | |||||
Selling, General and Administrative Expenses | 33,670 | 38,903 | |||||
Depreciation, Depletion and Amortization | 161,315 | 155,347 | |||||
Interest Expense | 53,378 | 58,120 | |||||
Taxes Other Than Income | 82,787 | 91,627 | |||||
Total Costs | 1,290,939 | 1,308,193 | |||||
(Loss) Earnings Before Income Taxes | (1,299 | ) | 118,577 | ||||
Income Taxes | 522 | 21,381 | |||||
Net (Loss) Income | (1,821 | ) | 97,196 | ||||
Add: Net Loss Attributable to Noncontrolling Interest | 257 | — | |||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders | $ | (1,564 | ) | $ | 97,196 | ||
Earnings Per Share: | |||||||
Basic | $ | (0.01 | ) | $ | 0.43 | ||
Dilutive | $ | (0.01 | ) | $ | 0.42 | ||
Weighted Average Number of Common Shares Outstanding: | |||||||
Basic | 228,318,123 | 227,269,269 | |||||
Dilutive | 228,318,123 | 230,124,011 | |||||
Dividends Paid Per Share | $ | — | $ | 0.125 |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Net (Loss) Income | $ | (1,821 | ) | $ | 97,196 | ||
Other Comprehensive Income: | |||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($28,250), ($35,897)) | 45,757 | 59,573 | |||||
Net (Decrease) Increase in the Value of Cash Flow Hedge (Net of tax: $13,966, ($49,008)) | (18,595 | ) | 76,076 | ||||
Reclassification of Cash Flow Hedges from OCI to Earnings (Net of tax: $11,984, $31,380) | (22,713 | ) | (47,941 | ) | |||
Other Comprehensive Income | 4,449 | 87,708 | |||||
Comprehensive Income | 2,628 | 184,904 | |||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest | 257 | — | |||||
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders | $ | 2,885 | $ | 184,904 |
(Unaudited) | |||||||
March 31, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 25,058 | $ | 21,878 | |||
Accounts and Notes Receivable: | |||||||
Trade | 408,350 | 428,328 | |||||
Notes Receivables | 322,406 | 318,387 | |||||
Other Receivables | 153,697 | 131,131 | |||||
Accounts Receivable - Securitized | 30,119 | 37,846 | |||||
Inventories | 217,034 | 247,766 | |||||
Deferred Income Taxes | 160,750 | 148,104 | |||||
Recoverable Income Taxes | 6,602 | — | |||||
Restricted Cash | — | 48,294 | |||||
Prepaid Expenses | 115,156 | 157,360 | |||||
Total Current Assets | 1,439,172 | 1,539,094 | |||||
Property, Plant and Equipment: | |||||||
Property, Plant and Equipment | 15,749,523 | 15,545,204 | |||||
Less—Accumulated Depreciation, Depletion and Amortization | 5,516,319 | 5,354,237 | |||||
Total Property, Plant and Equipment—Net | 10,233,204 | 10,190,967 | |||||
Other Assets: | |||||||
Deferred Income Taxes | 425,079 | 444,585 | |||||
Restricted Cash | 20,383 | 20,379 | |||||
Investment in Affiliates | 248,127 | 222,830 | |||||
Notes Receivable | 25,995 | 25,977 | |||||
Other | 201,234 | 227,077 | |||||
Total Other Assets | 920,818 | 940,848 | |||||
TOTAL ASSETS | $ | 12,593,194 | $ | 12,670,909 |
(Unaudited) | |||||||
March 31, 2013 | December 31, 2012 | ||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 463,886 | $ | 507,982 | |||
Current Portion of Long-Term Debt | 13,353 | 13,485 | |||||
Short-Term Notes Payable | — | 25,073 | |||||
Accrued Income Taxes | — | 34,219 | |||||
Borrowings Under Securitization Facility | 30,119 | 37,846 | |||||
Other Accrued Liabilities | 839,294 | 768,494 | |||||
Total Current Liabilities | 1,346,652 | 1,387,099 | |||||
Long-Term Debt: | |||||||
Long-Term Debt | 3,124,240 | 3,124,473 | |||||
Capital Lease Obligations | 48,299 | 50,113 | |||||
Total Long-Term Debt | 3,172,539 | 3,174,586 | |||||
Deferred Credits and Other Liabilities: | |||||||
Postretirement Benefits Other Than Pensions | 2,825,925 | 2,832,401 | |||||
Pneumoconiosis Benefits | 175,952 | 174,781 | |||||
Mine Closing | 449,891 | 446,727 | |||||
Gas Well Closing | 150,973 | 148,928 | |||||
Workers’ Compensation | 154,573 | 155,648 | |||||
Salary Retirement | 172,306 | 218,004 | |||||
Reclamation | 43,833 | 47,965 | |||||
Other | 128,316 | 131,025 | |||||
Total Deferred Credits and Other Liabilities | 4,101,769 | 4,155,479 | |||||
TOTAL LIABILITIES | 8,620,960 | 8,717,164 | |||||
Stockholders’ Equity: | |||||||
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 228,609,116 Issued and 228,574,361 Outstanding at March 31, 2013; 228,129,467 Issued and 228,094,712 Outstanding at December 31, 2012 | 2,289 | 2,284 | |||||
Capital in Excess of Par Value | 2,320,223 | 2,296,908 | |||||
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding | — | — | |||||
Retained Earnings | 2,393,528 | 2,402,551 | |||||
Accumulated Other Comprehensive Loss | (742,893 | ) | (747,342 | ) | |||
Common Stock in Treasury, at Cost—34,755 Shares at March 31, 2013 and 34,755 Shares at December 31, 2012 | (609 | ) | (609 | ) | |||
Total CONSOL Energy Inc. Stockholders’ Equity | 3,972,538 | 3,953,792 | |||||
Noncontrolling Interest | (304 | ) | (47 | ) | |||
TOTAL EQUITY | 3,972,234 | 3,953,745 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 12,593,194 | $ | 12,670,909 |
Common Stock | Capital in Excess of Par Value | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury | Total CONSOL Energy Inc. Stockholders’ Equity | Non- Controlling Interest | Total Equity | ||||||||||||||||||||||||
December 31, 2012 | $ | 2,284 | $ | 2,296,908 | $ | 2,402,551 | $ | (747,342 | ) | $ | (609 | ) | $ | 3,953,792 | $ | (47 | ) | $ | 3,953,745 | ||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Net Loss | — | — | (1,564 | ) | — | — | (1,564 | ) | (257 | ) | (1,821 | ) | |||||||||||||||||||
Other Comprehensive Income | — | — | — | 4,449 | — | 4,449 | — | 4,449 | |||||||||||||||||||||||
Comprehensive Income (Loss) | — | — | (1,564 | ) | 4,449 | — | 2,885 | (257 | ) | 2,628 | |||||||||||||||||||||
Issuance of Common Stock | 5 | 904 | — | — | — | 909 | — | 909 | |||||||||||||||||||||||
Treasury Stock Activity | — | — | (7,459 | ) | — | — | (7,459 | ) | — | (7,459 | ) | ||||||||||||||||||||
Tax Cost From Stock-Based Compensation | — | (3,658 | ) | — | — | — | (3,658 | ) | — | (3,658 | ) | ||||||||||||||||||||
Amortization of Stock-Based Compensation Awards | — | 26,069 | — | — | — | 26,069 | — | 26,069 | |||||||||||||||||||||||
Balance at March 31, 2013 | $ | 2,289 | $ | 2,320,223 | $ | 2,393,528 | $ | (742,893 | ) | $ | (609 | ) | $ | 3,972,538 | $ | (304 | ) | $ | 3,972,234 |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Operating Activities: | |||||||
Net (Loss) Income | $ | (1,821 | ) | $ | 97,196 | ||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | |||||||
Depreciation, Depletion and Amortization | 161,315 | 155,347 | |||||
Stock-Based Compensation | 26,069 | 16,252 | |||||
Gain on Sale of Assets | (2,176 | ) | (19,713 | ) | |||
Amortization of Mineral Leases | 503 | 1,886 | |||||
Deferred Income Taxes | 305 | (2,265 | ) | ||||
Equity in Earnings of Affiliates | (4,797 | ) | (7,935 | ) | |||
Changes in Operating Assets: | |||||||
Accounts and Notes Receivable | 27,137 | (17,990 | ) | ||||
Inventories | 30,732 | (26,662 | ) | ||||
Prepaid Expenses | 7,944 | 6,231 | |||||
Changes in Other Assets | 6,749 | 10,837 | |||||
Changes in Operating Liabilities: | |||||||
Accounts Payable | (26,474 | ) | (39,312 | ) | |||
Other Operating Liabilities | 19,940 | 62,233 | |||||
Changes in Other Liabilities | 16,652 | (8,928 | ) | ||||
Other | 6,202 | 2,309 | |||||
Net Cash Provided by Operating Activities | 268,280 | 229,486 | |||||
Investing Activities: | |||||||
Capital Expenditures | (405,972 | ) | (306,446 | ) | |||
Change in Restricted Cash | 48,294 | — | |||||
Proceeds from Sales of Assets | 138,636 | 28,611 | |||||
Investments In Equity Affiliates | (12,500 | ) | (10,250 | ) | |||
Net Cash Used in Investing Activities | (231,542 | ) | (288,085 | ) | |||
Financing Activities: | |||||||
Payments on Miscellaneous Borrowings | (27,601 | ) | (2,330 | ) | |||
Payments on Securitization Facility | (7,727 | ) | — | ||||
Tax Benefit from Stock-Based Compensation | 730 | 750 | |||||
Dividends Paid | — | (28,387 | ) | ||||
Issuance of Common Stock | 909 | 54 | |||||
Issuance of Treasury Stock | — | 109 | |||||
Debt Issuance and Financing Fees | 131 | (20 | ) | ||||
Net Cash Used In Financing Activities | (33,558 | ) | (29,824 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 3,180 | (88,423 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 21,878 | 375,736 | |||||
Cash and Cash Equivalents at End of Period | $ | 25,058 | $ | 287,313 |
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Anti-Dilutive Options | 5,011,771 | 1,574,922 | |||||||
Anti-Dilutive Restricted Stock Units | 1,459,228 | 12,203 | |||||||
Anti-Dilutive Performance Share Units | 700,040 | — | |||||||
Anti-Dilutive Performance Share Options | 602,101 | 100,350 | |||||||
Anti-Dilutive CONSOL Share Units | 891,921 | — | |||||||
8,665,061 | 1,687,475 |
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Options | 84,994 | 11,716 | |||||||
Restricted Stock Units | 478,509 | 458,018 | |||||||
Performance Share Units | 159,228 | 229,730 | |||||||
722,731 | 699,464 |
Three Months Ended March 31, | |||||||||||
2013 | 2012 | ||||||||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders | $ | (1,564 | ) | $ | 97,196 | ||||||
Weighted average shares of common stock outstanding: | |||||||||||
Basic | 228,318,123 | 227,269,269 | |||||||||
Effect of stock-based compensation awards | — | 2,854,742 | |||||||||
Dilutive | 228,318,123 | 230,124,011 | |||||||||
Earnings per share: | |||||||||||
Basic | $ | (0.01 | ) | $ | 0.43 | ||||||
Dilutive | $ | (0.01 | ) | $ | 0.42 |
Gains and Losses on Cash Flow Hedges | Postretirement Benefits | Total | |||||||||||||||
Balance at December 31, 2012 | $ | 76,761 | $ | (824,103 | ) | $ | (747,342 | ) | |||||||||
Other comprehensive income before reclassifications | (18,595 | ) | 18,497 | (98 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (22,713 | ) | 27,260 | 4,547 | |||||||||||||
New current period other comprehensive income | (41,308 | ) | 45,757 | 4,449 | |||||||||||||
Balance at March 31, 2013 | $ | 35,453 | $ | (778,346 | ) | $ | (742,893 | ) |
Three Months Ended March 31, | |||||||||||
2013 | 2012 | ||||||||||
Derivative Instruments (Note 12) | |||||||||||
Natural gas price swaps | $ | (34,697 | ) | $ | (79,321 | ) | |||||
Tax benefit | 11,984 | 31,380 | |||||||||
Net of tax | $ | (22,713 | ) | $ | (47,941 | ) | |||||
Actuarially Determined Long-Term Liability Adjustments*(Note 3 and Note 4) | |||||||||||
Amortization of prior service costs | $ | (8,212 | ) | $ | (12,106 | ) | |||||
Recognized net actuarial loss | 25,188 | 27,005 | |||||||||
Settlement loss | 27,115 | — | |||||||||
Total | 44,091 | 14,899 | |||||||||
Tax expense | (16,831 | ) | (5,602 | ) | |||||||
Net of tax | $ | 27,260 | $ | 9,297 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 5,706 | $ | 5,153 | $ | 4,849 | $ | 5,200 | |||||||
Interest cost | 8,843 | 9,378 | 29,619 | 35,527 | |||||||||||
Expected return on plan assets | (12,144 | ) | (11,627 | ) | — | — | |||||||||
Amortization of prior service cost (credits) | (408 | ) | (408 | ) | (7,804 | ) | (11,599 | ) | |||||||
Recognized net actuarial loss | 12,175 | 12,263 | 17,595 | 20,345 | |||||||||||
Settlement loss | 27,115 | — | — | — | |||||||||||
Net periodic benefit cost | $ | 41,287 | $ | 14,759 | $ | 44,259 | $ | 49,473 |
CWP | Workers' Compensation | ||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 2,135 | $ | 1,928 | $ | 3,533 | $ | 3,634 | |||||||
Interest cost | 1,808 | 1,991 | 1,655 | 1,778 | |||||||||||
Amortization of actuarial gain | (4,213 | ) | (4,934 | ) | (699 | ) | (986 | ) | |||||||
State administrative fees and insurance bond premiums | — | — | 1,659 | 1,910 | |||||||||||
Legal and administrative costs | — | — | 591 | 648 | |||||||||||
Net periodic (benefit) cost | $ | (270 | ) | $ | (1,015 | ) | $ | 6,739 | $ | 6,984 |
For the Three Months Ended March 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Statutory U.S. federal income tax rate | $ | (455 | ) | 35.0 | % | $ | 41,502 | 35.0 | % | ||||
Impact of excess tax depletion | 1,428 | (109.9 | ) | (26,514 | ) | (22.4 | ) | ||||||
Net effect of state income taxes | (179 | ) | 13.7 | 3,510 | 3.0 | ||||||||
Other | (272 | ) | 21.0 | 2,883 | 2.4 | ||||||||
Income Tax Expense / Effective Rate | $ | 522 | (40.2 | )% | $ | 21,381 | 18.0 | % |
March 31, 2013 | December 31, 2012 | ||||||
Coal | $ | 51,954 | $ | 78,825 | |||
Merchandise for resale | 35,120 | 35,363 | |||||
Supplies | 129,960 | 133,578 | |||||
Total Inventories | $ | 217,034 | $ | 247,766 |
March 31, 2013 | December 31, 2012 | ||||||
Coal and other plant and equipment | $ | 6,032,128 | $ | 6,030,620 | |||
Intangible drilling cost | 1,623,391 | 1,550,297 | |||||
Proven gas properties | 1,600,532 | 1,596,838 | |||||
Coal properties and surface lands | 1,351,271 | 1,346,151 | |||||
Unproven gas properties | 1,321,108 | 1,266,017 | |||||
Gas gathering equipment | 1,024,952 | 1,006,882 | |||||
Airshafts | 711,586 | 706,388 | |||||
Mine development | 561,288 | 537,939 | |||||
Leased coal lands | 529,741 | 529,758 | |||||
Gas wells and related equipment | 508,768 | 492,367 | |||||
Coal advance mining royalties | 394,438 | 391,501 | |||||
Other gas assets | 82,094 | 82,217 | |||||
Gas advance royalties | 8,226 | 8,229 | |||||
Total Property Plant and Equipment | 15,749,523 | 15,545,204 | |||||
Less: Accumulated DD&A | 5,516,319 | 5,354,237 | |||||
Total Net PP&E | $ | 10,233,204 | $ | 10,190,967 |
Shale Play | Industry Participation Agreement Partner | Industry Participation Agreement Date | Drilling Carries Remaining* | |||||
Marcellus | Noble Energy, Inc. | September 30, 2011 | $ | 2,052,790 | ||||
Utica | Hess Ohio Developments, LLC | October 21, 2011 | $ | 496,723 |
March 31, 2013 | December 31, 2012 | ||||||
Debt: | |||||||
Senior notes due April 2017 at 8.00%, issued at par value | $ | 1,500,000 | $ | 1,500,000 | |||
Senior notes due April 2020 at 8.25%, issued at par value | 1,250,000 | 1,250,000 | |||||
Senior notes due March 2021 at 6.375%, issued at par value | 250,000 | 250,000 | |||||
MEDCO revenue bonds in series due September 2025 at 5.75% | 102,865 | 102,865 | |||||
Advance royalty commitments (7.43% weighted average interest rate for March 31, 2013 and December 31, 2012) | 20,394 | 20,394 | |||||
Other long-term notes maturing at various dates through 2031 (total value of $6,956 less unamortized discount of $1,411 at March 31, 2013) | 5,545 | 5,758 | |||||
3,128,804 | 3,129,017 | ||||||
Less amounts due in one year * | 4,564 | 4,544 | |||||
Long-Term Debt | $ | 3,124,240 | $ | 3,124,473 |
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 | $ | 190,158 | $ | 126,654 | $ | 63,504 | $ | — | $ | — | |||||||||
Environmental | 56,293 | 34,346 | 21,947 | — | — | ||||||||||||||
Other | 83,398 | 46,452 | 36,946 | — | — | ||||||||||||||
Total Letters of Credit | 329,849 | 207,452 | 122,397 | — | — | ||||||||||||||
Surety Bonds: | |||||||||||||||||||
Employee-Related | 204,884 | 204,884 | — | — | — | ||||||||||||||
Environmental | 533,974 | 524,072 | 9,902 | — | — | ||||||||||||||
Other | 29,487 | 29,476 | 11 | — | — | ||||||||||||||
Total Surety Bonds | 768,345 | 758,432 | 9,913 | — | — | ||||||||||||||
Total Commitments | $ | 1,098,194 | $ | 965,884 | $ | 132,310 | $ | — | $ | — |
Obligations Due | Amount | ||
Less than 1 year | $ | 349,513 | |
1 - 3 years | 227,586 | ||
3 - 5 years | 128,338 | ||
More than 5 years | 414,276 | ||
Total Purchase Obligations | $ | 1,119,713 |
Three Months Ended | ||||||||||
March, 31 | ||||||||||
2013 | 2012 | |||||||||
Major equipment purchases | $ | 33,426 | $ | 13,166 | ||||||
Firm transportation expense | 28,525 | 15,045 | ||||||||
Gas drilling obligations | 28,863 | 29,576 | ||||||||
Other | — | 298 | ||||||||
Total costs related to purchase obligations | $ | 90,814 | $ | 58,085 |
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Natural Gas Price Swaps | |||||||||
Beginning Balance – Accumulated OCI | $ | 76,761 | $ | 151,780 | |||||
Gain/(Loss) recognized in Accumulated OCI | $ | (18,595 | ) | $ | 76,076 | ||||
Less: Gain reclassified from Accumulated OCI into Outside Sales | $ | 22,713 | $ | 47,941 | |||||
Ending Balance – Accumulated OCI | $ | 35,453 | $ | 179,915 | |||||
Gain/(Loss) recognized in Outside Sales for ineffectiveness | $ | 1,041 | $ | (835 | ) |
Fair Value Measurements at March 31, 2013 | Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||
Description | Quoted Prices in Active Markets for Identical Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Quoted Prices in Active Markets for Identical Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
Gas Cash Flow Hedges | $ | — | $ | 62,728 | $ | — | $ | — | $ | 128,945 | $ | — |
March 31, 2013 | December 31, 2012 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Cash and Cash Equivalents | $ | 25,058 | $ | 25,058 | $ | 21,878 | $ | 21,878 | |||||||
Restricted Cash | $ | 20,383 | $ | 20,383 | $ | 68,673 | $ | 68,673 | |||||||
Short-Term Notes Payable | $ | — | $ | — | $ | (25,073 | ) | $ | (25,073 | ) | |||||
Borrowings Under Securitization Facility | $ | (30,119 | ) | $ | (30,119 | ) | $ | (37,846 | ) | $ | (37,846 | ) | |||
Long-Term Debt | $ | (3,128,804 | ) | $ | (3,396,271 | ) | $ | (3,129,017 | ) | $ | (3,378,058 | ) |
Thermal | Low Volatile Metallurgical | High Volatile Metallurgical | Other Coal | Total Coal | Coalbed Methane | Marcellus Shale | Shallow Oil and Gas | Other Gas | Total Gas | All Other | Corporate, Adjustments & Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||
Sales—outside | $ | 761,272 | $ | 146,828 | $ | 58,622 | $ | 5,663 | $ | 972,385 | $ | 83,640 | $ | 48,411 | $ | 32,436 | $ | 3,355 | $ | 167,842 | $ | 85,938 | $ | — | $ | 1,226,165 | (A) | |||||||||||||||||||||||||
Sales—purchased gas | — | — | — | — | — | — | — | — | 1,358 | 1,358 | — | — | 1,358 | |||||||||||||||||||||||||||||||||||||||
Sales—gas royalty interests | — | — | — | — | — | — | — | — | 14,204 | 14,204 | — | — | 14,204 | |||||||||||||||||||||||||||||||||||||||
Freight—outside | — | — | — | 14,061 | 14,061 | — | — | — | — | — | — | — | 14,061 | |||||||||||||||||||||||||||||||||||||||
Intersegment transfers | — | — | — | — | — | — | — | — | 836 | 836 | 35,477 | (36,313 | ) | — | ||||||||||||||||||||||||||||||||||||||
Total Sales and Freight | $ | 761,272 | $ | 146,828 | $ | 58,622 | $ | 19,724 | $ | 986,446 | $ | 83,640 | $ | 48,411 | $ | 32,436 | $ | 19,753 | $ | 184,240 | $ | 121,415 | $ | (36,313 | ) | $ | 1,255,788 | |||||||||||||||||||||||||
Earnings (Loss) Before Income Taxes | $ | 128,432 | $ | 54,717 | $ | 13,352 | $ | (102,999 | ) | $ | 93,502 | $ | 21,312 | $ | 13,768 | $ | (4,161 | ) | $ | (31,559 | ) | $ | (640 | ) | $ | (40,552 | ) | $ | (53,609 | ) | $ | (1,299 | ) | (B) | ||||||||||||||||||
Segment assets | $ | 5,698,504 | $ | 5,879,988 | $ | 358,663 | $ | 656,039 | $ | 12,593,194 | (C) | |||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | $ | 102,711 | $ | 52,399 | $ | 6,205 | $ | — | $ | 161,315 | ||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 197,338 | $ | 207,130 | $ | 1,504 | $ | — | $ | 405,972 |
Thermal | Low Volatile Metallurgical | High Volatile Metallurgical | Other Coal | Total Coal | Coalbed Methane | Marcellus Shale | Shallow Oil and Gas | Other Gas | Total Gas | All Other | Corporate, Adjustments & Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||
Sales—outside | $ | 812,053 | $ | 172,740 | $ | 60,568 | $ | 8,955 | $ | 1,054,316 | $ | 99,535 | $ | 23,791 | $ | 34,373 | $ | 2,504 | $ | 160,203 | $ | 96,952 | $ | — | $ | 1,311,471 | (D) | |||||||||||||||||||||||||
Sales—purchased gas | — | — | — | — | — | — | — | — | 839 | 839 | — | — | 839 | |||||||||||||||||||||||||||||||||||||||
Sales—gas royalty interests | — | — | — | — | — | — | — | — | 12,206 | 12,206 | — | — | 12,206 | |||||||||||||||||||||||||||||||||||||||
Freight—outside | — | — | — | 49,293 | 49,293 | — | — | — | — | — | — | — | 49,293 | |||||||||||||||||||||||||||||||||||||||
Intersegment transfers | — | — | — | — | — | — | — | — | 466 | 466 | 37,209 | (37,675 | ) | — | ||||||||||||||||||||||||||||||||||||||
Total Sales and Freight | $ | 812,053 | $ | 172,740 | $ | 60,568 | $ | 58,248 | $ | 1,103,609 | $ | 99,535 | $ | 23,791 | $ | 34,373 | $ | 16,015 | $ | 173,714 | $ | 134,161 | $ | (37,675 | ) | $ | 1,373,809 | |||||||||||||||||||||||||
Earnings (Loss) Before Income Taxes | $ | 128,449 | $ | 79,341 | $ | 15,936 | $ | (61,256 | ) | $ | 162,470 | $ | 36,390 | $ | 3,251 | $ | (3,722 | ) | $ | (23,419 | ) | $ | 12,500 | $ | 4,083 | $ | (60,476 | ) | $ | 118,577 | (E) | |||||||||||||||||||||
Segment assets | $ | 5,360,577 | $ | 6,110,585 | $ | 358,746 | $ | 765,703 | $ | 12,595,611 | (F) | |||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | $ | 100,762 | $ | 48,803 | $ | 5,782 | $ | — | $ | 155,347 | ||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 194,429 | $ | 98,455 | $ | 13,562 | $ | — | $ | 306,446 |
(D) | Included in the Coal segment are sales of $144,155 to First Energy and $138,341 to Xcoal Energy & Resources each comprising over 10% of sales. |
(E) | Includes equity in earnings of unconsolidated affiliates of $4,807, $1,944 and $1,184 for Coal, Gas and All Other, respectively. |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Segment Earnings Before Income Taxes for total reportable business segments | $ | 92,862 | $ | 174,970 | |||
Segment (Loss) Earnings Before Income Taxes for all other businesses | (40,552 | ) | 4,083 | ||||
Interest expense, net and other non-operating activity (G) | (52,660 | ) | (60,042 | ) | |||
Other Corporate Items (G) | (949 | ) | (434 | ) | |||
(Loss) Earnings Before Income Taxes | $ | (1,299 | ) | $ | 118,577 |
Total Assets: | March, 31 | ||||||
2013 | 2012 | ||||||
Segment assets for total reportable business segments | $ | 11,578,492 | $ | 11,471,162 | |||
Segment assets for all other businesses | 358,663 | 358,746 | |||||
Items excluded from segment assets: | |||||||
Cash and other investments (G) | 23,669 | 121,807 | |||||
Recoverable income taxes | 6,602 | — | |||||
Deferred tax assets | 585,829 | 596,657 | |||||
Bond issuance costs | 39,939 | 47,239 | |||||
Total Consolidated Assets | $ | 12,593,194 | $ | 12,595,611 |
Parent Issuer | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Sales—Outside | $ | — | $ | 168,679 | $ | 1,004,157 | $ | 54,053 | $ | (724 | ) | $ | 1,226,165 | ||||||||||
Sales—Gas Royalty Interests | — | 14,204 | — | — | — | 14,204 | |||||||||||||||||
Sales—Purchased Gas | — | 1,358 | — | — | — | 1,358 | |||||||||||||||||
Freight—Outside | — | — | 14,061 | — | — | 14,061 | |||||||||||||||||
Other Income | 77,976 | 13,224 | 15,255 | 5,373 | (77,976 | ) | 33,852 | ||||||||||||||||
Total Revenue and Other Income | 77,976 | 197,465 | 1,033,473 | 59,426 | (78,700 | ) | 1,289,640 | ||||||||||||||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below) | 75,990 | 114,352 | 681,705 | 53,726 | 7,190 | 932,963 | |||||||||||||||||
Gas Royalty Interests Costs | — | 11,817 | — | — | (11 | ) | 11,806 | ||||||||||||||||
Purchased Gas Costs | — | 959 | — | — | — | 959 | |||||||||||||||||
Related Party Activity | (12,556 | ) | — | (7,778 | ) | 404 | 19,930 | — | |||||||||||||||
Freight Expense | — | — | 14,061 | — | — | 14,061 | |||||||||||||||||
Selling, General and Administrative Expenses | — | 10,112 | 23,247 | 311 | — | 33,670 | |||||||||||||||||
Depreciation, Depletion and Amortization | 3,195 | 52,399 | 105,237 | 484 | — | 161,315 | |||||||||||||||||
Interest Expense | 50,169 | 1,661 | 1,644 | 11 | (107 | ) | 53,378 | ||||||||||||||||
Taxes Other Than Income | 177 | 6,698 | 75,006 | 906 | — | 82,787 | |||||||||||||||||
Total Costs | 116,975 | 197,998 | 893,122 | 55,842 | 27,002 | 1,290,939 | |||||||||||||||||
(Loss) Earnings Before Income Taxes | (38,999 | ) | (533 | ) | 140,351 | 3,584 | (105,702 | ) | (1,299 | ) | |||||||||||||
Income Taxes (Benefit) Expense | (37,435 | ) | (208 | ) | 36,809 | 1,356 | — | 522 | |||||||||||||||
Net (Loss) Income | (1,564 | ) | (325 | ) | 103,542 | 2,228 | (105,702 | ) | (1,821 | ) | |||||||||||||
Add: Net Loss Attributable to Noncontrolling Interest | — | 257 | — | — | — | 257 | |||||||||||||||||
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders | $ | (1,564 | ) | $ | (68 | ) | $ | 103,542 | $ | 2,228 | $ | (105,702 | ) | $ | (1,564 | ) |
Parent Issuer | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 22,152 | $ | 2,170 | $ | 171 | $ | 565 | $ | — | $ | 25,058 | |||||||||||
Accounts and Notes Receivable: | |||||||||||||||||||||||
Trade | — | 55,755 | — | 352,595 | — | 408,350 | |||||||||||||||||
Notes Receivable | 194 | 319,756 | 2,456 | — | — | 322,406 | |||||||||||||||||
Other Receivables | 5,081 | 112,802 | 32,024 | 3,790 | — | 153,697 | |||||||||||||||||
Accounts Receivable—Securitized | — | — | — | 30,119 | — | 30,119 | |||||||||||||||||
Inventories | — | 13,979 | 167,935 | 35,120 | — | 217,034 | |||||||||||||||||
Deferred Income Taxes | 169,920 | (9,170 | ) | — | — | — | 160,750 | ||||||||||||||||
Recoverable Income Taxes | 20,580 | (13,978 | ) | — | — | — | 6,602 | ||||||||||||||||
Prepaid Expenses | 20,814 | 52,271 | 40,544 | 1,527 | — | 115,156 | |||||||||||||||||
Total Current Assets | 238,741 | 533,585 | 243,130 | 423,716 | — | 1,439,172 | |||||||||||||||||
Property, Plant and Equipment: | |||||||||||||||||||||||
Property, Plant and Equipment | 218,234 | 6,122,433 | 9,383,357 | 25,499 | — | 15,749,523 | |||||||||||||||||
Less-Accumulated Depreciation, Depletion and Amortization | 130,556 | 1,012,595 | 4,354,755 | 18,413 | — | 5,516,319 | |||||||||||||||||
Total Property, Plant and Equipment-Net | 87,678 | 5,109,838 | 5,028,602 | 7,086 | — | 10,233,204 | |||||||||||||||||
Other Assets: | |||||||||||||||||||||||
Deferred Income Taxes | 855,493 | (430,414 | ) | — | — | — | 425,079 | ||||||||||||||||
Restricted Cash | — | — | 20,383 | — | — | 20,383 | |||||||||||||||||
Investment in Affiliates | 9,992,921 | 167,058 | 798,589 | — | (10,710,441 | ) | 248,127 | ||||||||||||||||
Notes Receivable | 212 | — | 25,783 | — | — | 25,995 | |||||||||||||||||
Other | 115,911 | 46,350 | 28,940 | 10,033 | — | 201,234 | |||||||||||||||||
Total Other Assets | 10,964,537 | (217,006 | ) | 873,695 | 10,033 | (10,710,441 | ) | 920,818 | |||||||||||||||
Total Assets | $ | 11,290,956 | $ | 5,426,417 | $ | 6,145,427 | $ | 440,835 | $ | (10,710,441 | ) | $ | 12,593,194 | ||||||||||
Liabilities and Equity: | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts Payable | $ | 195,092 | $ | 173,468 | $ | 85,104 | $ | 10,222 | $ | — | $ | 463,886 | |||||||||||
Accounts Payable (Recoverable)—Related Parties | 3,687,347 | 24,929 | (3,969,054 | ) | 227,778 | 29,000 | — | ||||||||||||||||
Current Portion Long-Term Debt | 1,568 | 5,939 | 5,084 | 762 | — | 13,353 | |||||||||||||||||
Short-Term Notes Payable | — | 29,000 | — | — | (29,000 | ) | — | ||||||||||||||||
Borrowings Under Securitization Facility | — | — | — | 30,119 | — | 30,119 | |||||||||||||||||
Other Accrued Liabilities | 161,155 | 68,331 | 599,867 | 9,941 | — | 839,294 | |||||||||||||||||
Total Current Liabilities | 4,045,162 | 301,667 | (3,278,999 | ) | 278,822 | — | 1,346,652 | ||||||||||||||||
Long-Term Debt: | 3,005,254 | 44,671 | 121,151 | 1,463 | — | 3,172,539 | |||||||||||||||||
Deferred Credits and Other Liabilities | |||||||||||||||||||||||
Postretirement Benefits Other Than Pensions | — | — | 2,825,925 | — | — | 2,825,925 | |||||||||||||||||
Pneumoconiosis Benefits | — | — | 175,952 | — | — | 175,952 | |||||||||||||||||
Mine Closing | — | — | 449,891 | — | — | 449,891 | |||||||||||||||||
Gas Well Closing | — | 81,296 | 69,677 | — | — | 150,973 | |||||||||||||||||
Workers’ Compensation | — | — | 154,261 | 312 | — | 154,573 | |||||||||||||||||
Salary Retirement | 172,306 | — | — | — | — | 172,306 | |||||||||||||||||
Reclamation | — | — | 43,833 | — | — | 43,833 | |||||||||||||||||
Other | 95,696 | 26,151 | 6,469 | — | — | 128,316 | |||||||||||||||||
Total Deferred Credits and Other Liabilities | 268,002 | 107,447 | 3,726,008 | 312 | — | 4,101,769 | |||||||||||||||||
Total CONSOL Energy Inc. Stockholders’ Equity | 3,972,538 | 4,972,936 | 5,577,267 | 160,238 | (10,710,441 | ) | 3,972,538 | ||||||||||||||||
Noncontrolling Interest | — | (304 | ) | — | — | — | (304 | ) | |||||||||||||||
Total Liabilities and Equity | $ | 11,290,956 | $ | 5,426,417 | $ | 6,145,427 | $ | 440,835 | $ | (10,710,441 | ) | $ | 12,593,194 |
Parent Issuer | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Sales—Outside | $ | — | $ | 160,669 | $ | 1,082,288 | $ | 69,022 | $ | (508 | ) | $ | 1,311,471 | ||||||||||
Sales—Gas Royalty Interests | — | 12,206 | — | — | — | 12,206 | |||||||||||||||||
Sales—Purchased Gas | — | 839 | — | — | — | 839 | |||||||||||||||||
Freight—Outside | — | — | 49,293 | — | — | 49,293 | |||||||||||||||||
Other Income | 167,985 | 16,305 | 29,703 | 5,957 | (166,989 | ) | 52,961 | ||||||||||||||||
Total Revenue and Other Income | 167,985 | 190,019 | 1,161,284 | 74,979 | (167,497 | ) | 1,426,770 | ||||||||||||||||
Cost of Goods Sold and Other Operating Charges (exclusive of depreciation, depletion and amortization shown below) | 49,180 | 98,644 | 682,853 | 66,416 | 7,044 | 904,137 | |||||||||||||||||
Gas Royalty Interests Costs | — | 10,255 | — | — | (6 | ) | 10,249 | ||||||||||||||||
Purchased Gas Costs | — | 517 | — | — | — | 517 | |||||||||||||||||
Related Party Activity | 7,013 | — | 1,258 | 502 | (8,773 | ) | — | ||||||||||||||||
Freight Expense | — | — | 49,293 | — | — | 49,293 | |||||||||||||||||
Selling, General and Administrative Expenses | — | 9,981 | 28,475 | 447 | — | 38,903 | |||||||||||||||||
Depreciation, Depletion and Amortization | 2,921 | 48,803 | 103,100 | 523 | — | 155,347 | |||||||||||||||||
Interest Expense | 54,762 | 1,218 | 2,229 | 11 | (100 | ) | 58,120 | ||||||||||||||||
Taxes Other Than Income | 636 | 8,200 | 81,971 | 820 | — | 91,627 | |||||||||||||||||
Total Costs | 114,512 | 177,618 | 949,179 | 68,719 | (1,835 | ) | 1,308,193 | ||||||||||||||||
Earnings (Loss) Before Income Taxes | 53,473 | 12,401 | 212,105 | 6,260 | (165,662 | ) | 118,577 | ||||||||||||||||
Income Tax Expense (Benefit) | (43,723 | ) | 4,947 | 57,789 | 2,368 | — | 21,381 | ||||||||||||||||
Net Income (Loss) | $ | 97,196 | $ | 7,454 | $ | 154,316 | $ | 3,892 | $ | (165,662 | ) | $ | 97,196 |
Parent Issuer | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 17,491 | $ | 3,352 | $ | 175 | $ | 860 | $ | — | $ | 21,878 | |||||||||||
Accounts and Notes Receivable: | |||||||||||||||||||||||
Trade | — | 58,126 | — | 370,202 | — | 428,328 | |||||||||||||||||
Notes Receivable | 154 | 315,730 | 2,503 | — | — | 318,387 | |||||||||||||||||
Other Receivables | 6,335 | 214,748 | 33,289 | 5,159 | (128,400 | ) | 131,131 | ||||||||||||||||
Accounts Receivable—Securitized | — | — | — | 37,846 | — | 37,846 | |||||||||||||||||
Inventories | — | 14,133 | 198,269 | 35,364 | — | 247,766 | |||||||||||||||||
Deferred Income Taxes | 174,176 | (26,072 | ) | — | — | — | 148,104 | ||||||||||||||||
Restricted Cash | — | — | 48,294 | — | — | 48,294 | |||||||||||||||||
Prepaid Expenses | 29,589 | 86,186 | 40,215 | 1,370 | — | 157,360 | |||||||||||||||||
Total Current Assets | 227,745 | 666,203 | 322,745 | 450,801 | (128,400 | ) | 1,539,094 | ||||||||||||||||
Property, Plant and Equipment: | |||||||||||||||||||||||
Property, Plant and Equipment | 216,448 | 5,956,207 | 9,347,370 | 25,179 | — | 15,545,204 | |||||||||||||||||
Less-Accumulated Depreciation, Depletion and Amortization | 126,048 | 960,613 | 4,249,507 | 18,069 | — | 5,354,237 | |||||||||||||||||
Total Property, Plant and Equipment-Net | 90,400 | 4,995,594 | 5,097,863 | 7,110 | — | 10,190,967 | |||||||||||||||||
Other Assets: | |||||||||||||||||||||||
Deferred Income Taxes | 884,310 | (439,725 | ) | — | — | — | 444,585 | ||||||||||||||||
Restricted Cash | — | — | 20,379 | — | — | 20,379 | |||||||||||||||||
Investment in Affiliates | 9,917,050 | 143,876 | 769,058 | — | (10,607,154 | ) | 222,830 | ||||||||||||||||
Notes Receivable | 239 | — | 25,738 | — | — | 25,977 | |||||||||||||||||
Other | 118,938 | 65,935 | 32,016 | 10,188 | — | 227,077 | |||||||||||||||||
Total Other Assets | 10,920,537 | (229,914 | ) | 847,191 | 10,188 | (10,607,154 | ) | 940,848 | |||||||||||||||
Total Assets | $ | 11,238,682 | $ | 5,431,883 | $ | 6,267,799 | $ | 468,099 | $ | (10,735,554 | ) | $ | 12,670,909 | ||||||||||
Liabilities and Equity: | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts Payable | $ | 177,734 | $ | 166,182 | $ | 154,936 | $ | 9,130 | $ | — | $ | 507,982 | |||||||||||
Accounts Payable (Recoverable)-Related Parties | 3,599,216 | 23,981 | (3,749,584 | ) | 254,787 | (128,400 | ) | — | |||||||||||||||
Current Portion of Long-Term Debt | 1,554 | 5,953 | 5,222 | 756 | — | 13,485 | |||||||||||||||||
Short-Term Notes Payable | 25,073 | — | — | — | — | 25,073 | |||||||||||||||||
Accrued Income Taxes | 20,488 | 13,731 | — | — | — | 34,219 | |||||||||||||||||
Borrowings Under Securitization Facility | — | — | — | 37,846 | — | 37,846 | |||||||||||||||||
Other Accrued Liabilities | 135,407 | 57,074 | 566,485 | 9,528 | — | 768,494 | |||||||||||||||||
Total Current Liabilities | 3,959,472 | 266,921 | (3,022,941 | ) | 312,047 | (128,400 | ) | 1,387,099 | |||||||||||||||
Long-Term Debt: | 3,005,515 | 46,081 | 121,523 | 1,467 | — | 3,174,586 | |||||||||||||||||
Deferred Credits and Other Liabilities: | |||||||||||||||||||||||
Postretirement Benefits Other Than Pensions | — | — | 2,832,401 | — | — | 2,832,401 | |||||||||||||||||
Pneumoconiosis Benefits | — | — | 174,781 | — | — | 174,781 | |||||||||||||||||
Mine Closing | — | — | 446,727 | — | — | 446,727 | |||||||||||||||||
Gas Well Closing | — | 80,097 | 68,831 | — | — | 148,928 | |||||||||||||||||
Workers’ Compensation | — | — | 155,342 | 306 | — | 155,648 | |||||||||||||||||
Salary Retirement | 218,004 | — | — | — | — | 218,004 | |||||||||||||||||
Reclamation | — | — | 47,965 | — | — | 47,965 | |||||||||||||||||
Other | 101,899 | 24,518 | 4,608 | — | — | 131,025 | |||||||||||||||||
Total Deferred Credits and Other Liabilities | 319,903 | 104,615 | 3,730,655 | 306 | — | 4,155,479 | |||||||||||||||||
Total CONSOL Energy Inc. Stockholders’ Equity | 3,953,792 | 5,014,313 | 5,438,562 | 154,279 | (10,607,154 | ) | 3,953,792 | ||||||||||||||||
Noncontrolling Interest | — | (47 | ) | — | — | — | (47 | ) | |||||||||||||||
Total Liabilities and Equity | $ | 11,238,682 | $ | 5,431,883 | $ | 6,267,799 | $ | 468,099 | $ | (10,735,554 | ) | $ | 12,670,909 |
Parent | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 59,082 | $ | 190,004 | $ | 11,589 | $ | 7,605 | $ | — | $ | 268,280 | |||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital Expenditures | $ | (1,504 | ) | $ | (207,129 | ) | $ | (197,339 | ) | $ | — | $ | — | $ | (405,972 | ) | |||||||
Proceeds from Sales of Assets | (75 | ) | 343 | 138,365 | 3 | — | 138,636 | ||||||||||||||||
Investments in Equity Affiliates | — | (12,000 | ) | (500 | ) | — | — | (12,500 | ) | ||||||||||||||
Change in Restricted Cash | — | — | 48,294 | — | — | 48,294 | |||||||||||||||||
Net Cash (Used in) Provided by Investing Activities | $ | (1,579 | ) | $ | (218,786 | ) | $ | (11,180 | ) | $ | 3 | $ | — | $ | (231,542 | ) | |||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Proceeds from (Payments on) Short-Term Borrowings | (29,000 | ) | 29,000 | — | — | — | — | ||||||||||||||||
Payments on Securitization Facility | — | — | — | (7,727 | ) | — | (7,727 | ) | |||||||||||||||
Payments on Miscellaneous Borrowings | (25,612 | ) | — | (1,813 | ) | (176 | ) | — | (27,601 | ) | |||||||||||||
Other Financing Activities | 1,770 | (1,400 | ) | 1,400 | — | 1,770 | |||||||||||||||||
Net Cash (Used in) Provided by Financing Activities | $ | (52,842 | ) | $ | 27,600 | $ | (413 | ) | $ | (7,903 | ) | $ | — | $ | (33,558 | ) |
Parent | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 123,513 | $ | 54,417 | $ | 51,118 | $ | 438 | $ | — | $ | 229,486 | |||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital Expenditures | $ | (13,562 | ) | $ | (98,455 | ) | $ | (194,429 | ) | $ | — | $ | — | $ | (306,446 | ) | |||||||
Proceeds from Sales of Assets | — | 4,359 | 24,250 | 2 | — | 28,611 | |||||||||||||||||
Investments in Equity Affiliates | — | (9,999 | ) | (251 | ) | — | — | (10,250 | ) | ||||||||||||||
Net Cash (Used in) Provided by Investing Activities | $ | (13,562 | ) | $ | (104,095 | ) | $ | (170,430 | ) | $ | 2 | $ | — | $ | (288,085 | ) | |||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Dividends Paid | $ | 91,613 | $ | (120,000 | ) | $ | — | $ | — | $ | — | $ | (28,387 | ) | |||||||||
Payments on Miscellaneous Borrowings | (236 | ) | — | (1,844 | ) | (250 | ) | — | (2,330 | ) | |||||||||||||
Other Financing Activities | 893 | (844 | ) | 844 | — | — | 893 | ||||||||||||||||
Net Cash (Used in) Provided by Financing Activities | $ | 92,270 | $ | (120,844 | ) | $ | (1,000 | ) | $ | (250 | ) | $ | — | $ | (29,824 | ) |
Parent | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Net (Loss) Income | $ | (1,564 | ) | $ | (325 | ) | $ | 103,542 | $ | 2,228 | $ | (105,702 | ) | $ | (1,821 | ) | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Actuarially Determined Long-Term Liability Adjustments | 45,757 | — | 45,757 | — | (45,757 | ) | 45,757 | ||||||||||||||||
Net (Decrease) Increase in the Value of Cash Flow Hedge | (18,595 | ) | (18,595 | ) | — | — | 18,595 | (18,595 | ) | ||||||||||||||
Reclassification of Cash Flow Hedge from OCI to Earnings | (22,713 | ) | (22,713 | ) | — | — | 22,713 | (22,713 | ) | ||||||||||||||
Other Comprehensive (Loss) Income: | 4,449 | (41,308 | ) | 45,757 | — | (4,449 | ) | 4,449 | |||||||||||||||
Comprehensive Income (Loss) | 2,885 | (41,633 | ) | 149,299 | 2,228 | (110,151 | ) | 2,628 | |||||||||||||||
Add: Comprehensive Loss Attributable to Noncontrolling Interest | — | 257 | — | — | — | 257 | |||||||||||||||||
Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders | $ | 2,885 | $ | (41,376 | ) | $ | 149,299 | $ | 2,228 | $ | (110,151 | ) | $ | 2,885 |
Parent | CNX Gas Guarantor | Other Subsidiary Guarantors | Non- Guarantors | Elimination | Consolidated | ||||||||||||||||||
Net Income (Loss) | $ | 97,196 | $ | 7,454 | $ | 154,316 | $ | 3,892 | $ | (165,662 | ) | $ | 97,196 | ||||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Actuarially Determined Long-Term Liability Adjustments | 59,573 | — | 59,573 | — | (59,573 | ) | 59,573 | ||||||||||||||||
Net Increase (Decrease) in the Value of Cash Flow Hedge | 76,076 | 76,076 | — | — | (76,076 | ) | 76,076 | ||||||||||||||||
Reclassification of Cash Flow Hedge from OCI to Earnings | (47,941 | ) | (47,941 | ) | — | — | 47,941 | (47,941 | ) | ||||||||||||||
Other Comprehensive Income (Loss): | 87,708 | 28,135 | 59,573 | — | (87,708 | ) | 87,708 | ||||||||||||||||
Comprehensive Income (Loss) | $ | 184,904 | $ | 35,589 | $ | 213,889 | $ | 3,892 | $ | (253,370 | ) | $ | 184,904 |
March 31, | December 31, | |||||||
2013 | 2012 | Location on Balance Sheet | ||||||
Reimbursement for CONE Expenses | $ | (655 | ) | $ | (1,336 | ) | Accounts Receivable–Other | |
Reimbursement for Services Provided to CONE | (288 | ) | (341 | ) | Accounts Receivable–Other | |||
CONE Gathering Capital Reimbursement | — | (18 | ) | Accounts Receivable–Other | ||||
CONE Gathering Fee Payable | 11,918 | 4,837 | Accounts Payable | |||||
Net Payable due CONE | $ | 10,975 | $ | 3,142 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Q2 2013 | 2013 | 2014 | 2015 | |||||||||||||
Estimated Coal Sales (millions of tons) | 13.25 - 13.75 | 55.5 - 57.5 | 62.6 | 63.9 | ||||||||||||
Est. Low-Vol Met Sales | 0.9 -1.0 | 4.0-4.2 | 5.3 | 5.3 | ||||||||||||
Tonnage: Firm | 0.6 | 2.3 | N/A | N/A | ||||||||||||
Avg. Price: Sold (Firm) | $ | 108.58 | $ | 107.17 | N/A | N/A | ||||||||||
Est. High-Vol Met Sales | 0.5+ | 1.7+ | 4.8 | 6.4 | ||||||||||||
Tonnage: Firm | 0.3 | 1.2 | 0.2 | 0.2 | ||||||||||||
Avg. Price: Sold (Firm) | $ | 62.97 | $ | 65.74 | $ | 75.53 | $ | 74.74 | ||||||||
Est. Thermal Sales | 12.1+ | 49.8+ | 51.9 | 51.5 | ||||||||||||
Tonnage: Firm | 11.8 | 49.4 | 25.5 | 14.5 | ||||||||||||
Avg. Price: Sold (Firm) | $ | 57.99 | $ | 58.8 | $ | 59.94 | $ | 61.12 |
• | CNX Gas Company completed negotiations with the Allegheny County Airport Authority, which operates the Pittsburgh International Airport and the Allegheny County Airport, for the lease of the oil and gas rights on approximately 9.3 thousand acres. A majority of these contiguous acres are in the liquids area of the Marcellus Shale play. CNX Gas Company paid $46.3 million as an up-front bonus payment at closing. Approximately 7.6% percent of the bonus payment was placed into escrow while negotiations continue for a portion of the acres associated with the Allegheny County Airport and other acres that have potentially defective title. CNX Gas Company must spud a well by February 21, 2015 and proceed with due diligence to complete the well or the lease terminates and CNX Gas forgoes the bonus. Our joint venture partner, Noble Energy, has indicated that it intends to acquire 50% of the acreage and accordingly, incur 50% of the associated costs. |
• | Pension settlement accounting required the acceleration of previously unrecognized actuarial losses due to lump sum payments from the Company's salary retirement pension plan exceeding the annual projected service and interest costs of the plan. The pension settlement resulted in $27.1 million pre-tax expense adjustment. Many of the lump sum payments in the three months ended March 31, 2013 were paid to employees who elected to retire under the 2012 Voluntary Severance Incentive program. Also, pension settlement required the pension plan to be remeasured using updated assumptions at March 31, 2013. The updated assumptions include resetting the discount rate used in the actuarial calculation. See Note 3- Components of Pension and Other Postretirement Benefit (OPEB) Plans Net Periodic Benefit Costs, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for additional details of the updated assumptions. |
• | In the three months ended March 31, 2013, an agreement in principle was reached for resolution of the class actions brought by shareholders of CNX Gas challenging the tender offer by CONSOL Energy to acquire all the shares of CNX Gas common stock that CONSOL Energy did not already own for $38.25 per share in May 2010 in principle. The total settlement provides for a payment to the plaintiffs of $42.73 million, of which the company expects to pay $20.20 million. This settlement is subject to court approval and to the execution of final agreements with the parties. See Note 11 - Commitments and Contingencies, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for additional details. |
• | On March 12, 2013, smoke was detected exiting the Orndoff shaft at CONSOL Energy's Blacksville No. 2 Mine near Wayne in Greene County, PA. All day shift underground employees were safely evacuated and no one sustained injuries. The location of the fire was identified and containment and extinguishment procedures were followed. The fire was successfully extinguished. It is unknown when mine operations will resume. This event resulted in pre-tax expense adjustment of $15.2 million in the quarter ended March 31, 2013. |
• | A review of certain titles in the company's Marcellus Shale acreage, continued throughout the three months ended March 31, 2013. As part of the title defect process the company is working through with its joint venture partner, Noble Energy, CONSOL Energy conceded title defects on acreage which had a book value to CONSOL Energy of $6.3 million. |
• | Challenges in the overall environment in which we operate create increased risks that we must continuously monitor and manage. These risks include increased scrutiny of existing safety regulations and the development of new safety regulations and additional environmental restrictions. |
• | Federal and state environmental regulators are reviewing our operations more closely and are more strictly interpreting and enforcing existing environmental laws and regulations, resulting in increased costs and delays. |
• | Federal and state regulators have proposed regulations which, if adopted, would adversely impact our business. These proposed regulations could require significant changes in the manner in which we operate and/or would increase the cost of our operations. For example, the Department of Interior, Office of Surface Mining Reclamation and Enforcement (OSM) is currently preparing an environmental impact statement relating to OSM's consideration of five alternatives for amending its coal mining stream protection rules. All of the alternatives, except the no action alternative, could make it more costly to mine our coal and/or could eliminate the ability to mine some of our coal. OSM has indicated that it will not issue a draft rule or a draft environmental impact statement until sometime in 2014. Other examples are the Mercury and Air Toxic Standards (MATS) (remanded by the court and reproposed by the EPA in November 2012) and the Utility Maximum Achievable Control Technology (Utility MACTS) rules issued by the |
• | In April 2012, the EPA published its proposed New Source Performance Standards (NSPS) for carbon dioxide emissions from coal powered electric generating units. The proposed rules will apply to new power plants and to existing plants that make major modifications. If the rules are adopted as proposed, the only new coal fired power plants that will be able to meet the proposed emission limits will be coal fired plants with carbon dioxide capture and storage (CCS). Commercial scale CCS is not likely to be available in the near future, and if available, it may make coal fired electric generation units uneconomical compared to new gas fired electric generation units. Thus, if finalized the proposed rules could seriously threaten the construction of new coal fired electric generating units. EPA did not meet an April 13, 2013 deadline to publish final rules and, according to EPA, no specific timetable is set to publish the final rules. |
• | CONSOL Energy surface coal mining operations in West Virginia are subject to several citizen suits and several citizen groups' Notices of Intent to Sue relating to alleged violations of water discharge permits from the coal mining operations. In each of these matters, CONSOL Energy investigates the complaints, if necessary develops and implements compliance plans, and defends the citizen suits as appropriate. |
• | In late June 2012, CONSOL Energy received informal notification from the Pennsylvania Department of Environmental Protection of the Department's intent pursuant to a Technical Guidance Document entitled “Surface Water Protection-Underground Bituminous Coal Mining” to require a change in the mine plan of a pending application for a permit for expansion of the Company's Bailey longwall mine. If ultimately required, this change in mine plan could have a material effect on CONSOL Energy's forecasted production for 2015. Although CONSOL Energy does not agree that a modification of its mining plan is necessary to comply with applicable regulatory performance standards, CONSOL Energy is currently reviewing the notification and any modifications that would be required if CONSOL Energy is compelled to modify its application. |
• | Under our joint venture agreements with Noble Energy and Hess, each of them has the right to perform due diligence on the title to the oil and gas interests which we conveyed to them and to assert that title to the acreage is defective. If they establish any title defects which are not resolved in favor of CONSOL Energy or if the subject acreage is reassigned to us at our request, then subject to certain deductibles, Noble's and Hess's respective aggregate carried cost obligation under the joint venture agreements will be reduced by the value the parties previously allocated to the affected acreage in the transaction. If a significant percentage of the oil and gas interests we contributed have title defects, the carried costs could be materially reduced and our aggregate share of the drilling and completion costs for wells in these joint ventures could materially increase. See Note 8 - Property, Plant and Equipment in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for additional details. |
• | Additional pension settlement charges are reasonably possible to occur throughout the remainder of 2013. When lump sum payments from the pension plan exceed the service and interest expense, pension settlement accounting requires unamortized actuarial gains and losses related to the lump sum payouts be amortized immediately. The threshold for pension settlement has been reached as of March 31, 2013 and the corresponding charge has been recognized as discussed above. Additional pension settlement charges throughout the remainder of 2013 could be material to the financial results of CONSOL Energy. |
• | CONSOL Energy continues to explore potential sales of assets. |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Average Sales Price per ton sold | $ | 63.56 | $ | 69.06 | $ | (5.50 | ) | (8.0 | )% | |||||
Average Cost of Goods Sold per ton | 50.69 | 54.60 | (3.91 | ) | (7.2 | )% | ||||||||
Margin per ton sold | $ | 12.87 | $ | 14.46 | $ | (1.59 | ) | (11.0 | )% |
• | Direct operating costs improved primarily as the result of several cost saving initiatives at the Buchanan Mine, such as, slowing the pace of major maintenance projects, right sizing the workforce to fit the recently implemented five-day work schedule, and opening the Horne Mountain portal which allowed employees to enter the mine much closer to the longwall face. |
• | The idle longwalls at the Blacksville Mine and the Buchanan Mine during March 2012 resulted in an decrease in unit costs of approximately $1.89 in the period-to-period comparison. The 2012 unit costs were higher as the 2012 fixed costs were allocated over fewer tons. |
• | Average direct service costs to operations were improved due to reduced subsidence expense related to the timing and nature of properties undermined in the period-to-period comparison. |
• | Average operating supplies and maintenance costs per ton sold decreased due to reduced equipment maintenance, timing of major equipment overhaul costs, reduced fuels and lubricants and use of pumpable cribs for roof support. |
• | The Fola Mining Complex was idled in August 2012 which resulted in lower direct operating costs per ton produced in the period-to-period comparison. The mine, which was idled for market reasons, was a higher cost mining operation which when removed reduced the overall average direct operating costs per ton produced by $0.55 per ton. |
For the Three Months Ended March 31, | ||||||||||
2013 | 2012 | Variance | Percent Change | |||||||
Average Sales Price per thousand cubic feet sold | 4.30 | 4.26 | 0.04 | 0.9% | ||||||
Average Costs per thousand cubic feet sold | 3.53 | 3.37 | 0.16 | 4.7% | ||||||
Margin per thousand cubic feet sold | 0.77 | 0.89 | (0.12 | ) | (13.5)% |
• | Gathering costs increased in the period-to-period comparison due to higher firm transportation costs and increased processing fees associated with natural gas liquids. |
• | Higher units-of-production depreciation, depletion and amortization rates for producing properties. |
• | These were offset, in part by higher volumes in the period-to-period comparison due to the on-going Marcellus drilling program. Fixed costs are allocated over increased volumes, resulting in lower unit costs. |
For the three months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Employee wages and related expenses | $ | 13 | $ | 17 | $ | (4 | ) | (23.5 | )% | |||||
Consulting and professional services | 8 | 6 | 2 | 33.3 | % | |||||||||
Advertising and promotion | 2 | 2 | — | — | % | |||||||||
Contributions | 2 | 2 | — | — | % | |||||||||
Miscellaneous | 7 | 8 | (1 | ) | (12.5 | )% | ||||||||
Total Company General and Administrative Expenses | $ | 32 | $ | 35 | $ | (3 | ) | (8.6 | )% |
• | Employee wages and related expenses decreased $4 million primarily attributable to fewer employees as a result of the 2012 Voluntary Severance Incentive Plan and lower salary OPEB expenses in the period-to-period comparison. The lower OPEB expenses relate to changes in the discount rates and other assumptions, and a modification to the benefit plan for certain salaried employees. |
• | Consulting and professional services increased $2 million in the period-to-period comparison due to various legal proceedings and consulting projects, none of which are individually significant. |
• | Advertising and promotion and contributions remained consistent in the period-to-period comparison. |
• | Miscellaneous general and administrative expenses decreased slightly in the period-to-period comparison due to various transactions, none of which were individually material. |
For the Three Months Ended | Difference to Three Months Ended | ||||||||||||||||||||||||||||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||||||||||||||||||||||||||||
Thermal Coal | High Vol Met Coal | Low Vol Met Coal | Other Coal | Total Coal | Thermal Coal | High Vol Met Coal | Low Vol Met Coal | Other Coal | Total Coal | ||||||||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||||||||||||
Produced Coal | $ | 761 | $ | 59 | $ | 147 | $ | — | $ | 967 | $ | (51 | ) | $ | (2 | ) | $ | (26 | ) | $ | (4 | ) | $ | (83 | ) | ||||||||||||||
Purchased Coal | — | — | — | 5 | 5 | — | — | — | — | — | |||||||||||||||||||||||||||||
Total Outside Sales | 761 | 59 | 147 | 5 | 972 | (51 | ) | (2 | ) | (26 | ) | (4 | ) | (83 | ) | ||||||||||||||||||||||||
Freight Revenue | — | — | — | 14 | 14 | — | — | — | (35 | ) | (35 | ) | |||||||||||||||||||||||||||
Other Income | — | — | — | 14 | 14 | — | — | — | (18 | ) | (18 | ) | |||||||||||||||||||||||||||
Total Revenue and Other Income | 761 | 59 | 147 | 33 | 1,000 | (51 | ) | (2 | ) | (26 | ) | (57 | ) | (136 | ) | ||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||||||||
Beginning inventory costs | 58 | — | 21 | — | 79 | (32 | ) | — | 5 | — | (27 | ) | |||||||||||||||||||||||||||
Total direct operating costs | 391 | 31 | 48 | 45 | 515 | (43 | ) | 1 | (12 | ) | 14 | (40 | ) | ||||||||||||||||||||||||||
Total royalty/production taxes | 53 | — | 7 | — | 60 | (3 | ) | (3 | ) | (2 | ) | (1 | ) | (9 | ) | ||||||||||||||||||||||||
Total direct services to operations | 57 | 6 | 6 | 60 | 129 | (28 | ) | (2 | ) | — | 3 | (27 | ) | ||||||||||||||||||||||||||
Total retirement and disability | 45 | 3 | 7 | 4 | 59 | (3 | ) | — | (1 | ) | — | (4 | ) | ||||||||||||||||||||||||||
Depreciation, depletion and amortization | 73 | 6 | 11 | 13 | 103 | (7 | ) | — | 1 | 9 | 3 | ||||||||||||||||||||||||||||
Ending inventory costs | (44 | ) | — | (8 | ) | — | (52 | ) | 66 | — | 7 | — | 73 | ||||||||||||||||||||||||||
Total Costs and Expenses | 633 | 46 | 92 | 122 | 893 | (50 | ) | (4 | ) | (2 | ) | 25 | (31 | ) | |||||||||||||||||||||||||
Freight Expense | — | — | — | 14 | 14 | — | — | — | (35 | ) | (35 | ) | |||||||||||||||||||||||||||
Total Costs | 633 | 46 | 92 | 136 | 907 | (50 | ) | (4 | ) | (2 | ) | (10 | ) | (66 | ) | ||||||||||||||||||||||||
Earnings (Loss) Before Income Taxes | $ | 128 | $ | 13 | $ | 55 | $ | (103 | ) | $ | 93 | $ | (1 | ) | $ | 2 | $ | (24 | ) | $ | (47 | ) | $ | (70 | ) |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Company Produced Thermal Tons Sold (in millions) | 12.9 | 13.1 | (0.2 | ) | (1.5 | )% | ||||||||
Average Sales Price Per Thermal Ton Sold | $ | 59.01 | $ | 61.83 | $ | (2.82 | ) | (4.6 | )% | |||||
Beginning Inventory Costs Per Thermal Ton | $ | 50.92 | $ | 58.32 | $ | (7.40 | ) | (12.7 | )% | |||||
Total Direct Operating Costs Per Thermal Ton Produced | $ | 31.02 | $ | 31.89 | $ | (0.87 | ) | (2.7 | )% | |||||
Total Royalty/Production Taxes Per Thermal Ton Produced | 4.17 | 4.15 | 0.02 | 0.5 | % | |||||||||
Total Direct Services to Operations Per Thermal Ton Produced | 4.49 | 6.33 | (1.84 | ) | (29.1 | )% | ||||||||
Total Retirement and Disability Per Thermal Ton Produced | 3.58 | 3.54 | 0.04 | 1.1 | % | |||||||||
Total Depreciation, Depletion and Amortization Costs Per Thermal Ton Produced | 5.74 | 5.90 | (0.16 | ) | (2.7 | )% | ||||||||
Total Production Costs Per Thermal Ton Produced | $ | 49.00 | $ | 51.81 | $ | (2.81 | ) | (5.4 | )% | |||||
Ending Inventory Costs Per Thermal Ton | $ | 50.57 | $ | 55.60 | $ | (5.03 | ) | (9.0 | )% | |||||
Total Costs Per Thermal Ton Sold | $ | 49.09 | $ | 52.06 | $ | (2.97 | ) | (5.7 | )% | |||||
Average Margin Per Thermal Ton Sold | $ | 9.92 | $ | 9.77 | $ | 0.15 | 1.5 | % |
• | The Blacksville No. 2 longwall idling in 2012 resulted in lower direct operating costs per ton produced in the period-to-period comparison. The mine continued to run the continuous miners and perform mine maintenance during the month of March 2012 when the longwall was idled for market reasons, which negatively impacted unit costs $0.73 per ton during the idle period when compared to the current period. |
• | The Fola Mining Complex was idled in August 2012 which resulted in lower direct operating costs per ton produced in the period-to-period comparison. The mine, which was idled for market reasons, was a higher cost mining operation which when removed reduced the overall average direct operating costs per ton produced. |
• | Average direct service costs to operations were improved due to a reduction in subsidence expense. The reduction was the result of the timing and nature of properties undermined in the period-to-period comparison. |
• | Permitting and compliance costs decreased due to reduction in stream monitoring expenses |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Company Produced High Vol Met Tons Sold (in millions) | 0.9 | 1.0 | (0.1 | ) | (10.0 | )% | ||||||||
Average Sales Price Per High Vol Met Ton Sold | $ | 66.72 | $ | 62.18 | $ | 4.54 | 7.3 | % | ||||||
Beginning Inventory Costs Per High Vol Met Ton | $ | — | $ | — | $ | — | — | % | ||||||
Total Direct Operating Costs Per High Vol Met Ton Produced | $ | 34.71 | $ | 30.44 | $ | 4.27 | 14.0 | % | ||||||
Total Royalty/Production Taxes Per High Vol Met Ton Produced | (0.05 | ) | 3.36 | (3.41 | ) | (101.5 | )% | |||||||
Total Direct Services to Operations Per High Vol Met Ton Produced | 7.25 | 7.72 | (0.47 | ) | (6.1 | )% | ||||||||
Total Retirement and Disability Per High Vol Met Ton Produced | 3.80 | 3.11 | 0.69 | 22.2 | % | |||||||||
Total Depreciation, Depletion and Amortization Costs Per High Vol Met Ton Produced | 6.25 | 6.01 | 0.24 | 4.0 | % | |||||||||
Total Production Costs Per High Vol Met Ton Produced | $ | 51.96 | $ | 50.64 | $ | 1.32 | 2.6 | % | ||||||
Ending Inventory Costs Per High Vol Met Ton | $ | — | $ | — | $ | — | — | % | ||||||
Total Costs Per High Vol Met Ton Sold | $ | 51.96 | $ | 50.64 | $ | 1.32 | 2.6 | % | ||||||
Margin Per High Vol Met Ton Sold | $ | 14.76 | $ | 11.54 | $ | 3.22 | 27.9 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Company Produced Low Vol Met Tons Sold (in millions) | 1.4 | 1.0 | 0.4 | 40.0 | % | |||||||||
Average Sales Price Per Low Vol Met Ton Sold | $ | 102.69 | $ | 167.87 | $ | (65.18 | ) | (38.8 | )% | |||||
Beginning Inventory Costs Per Low Vol Met Ton | $ | 86.38 | $ | 67.60 | $ | 18.78 | 27.8 | % | ||||||
Total Direct Operating Costs Per Low Vol Met Ton Produced | $ | 37.83 | $ | 58.76 | $ | (20.93 | ) | (35.6 | )% | |||||
Total Royalty/Production Taxes Per Low Vol Met Ton Produced | 5.62 | 9.23 | (3.61 | ) | (39.1 | )% | ||||||||
Total Direct Services to Operations Per Low Vol Met Ton Produced | 4.80 | 6.32 | (1.52 | ) | (24.1 | )% | ||||||||
Total Retirement and Disability Per Low Vol Met Ton Produced | 5.19 | 8.32 | (3.13 | ) | (37.6 | )% | ||||||||
Total Depreciation, Depletion and Amortization Costs Per Low Vol Met Ton Produced | 8.29 | 9.81 | (1.52 | ) | (15.5 | )% | ||||||||
Total Production Costs Per Low Vol Met Ton Produced | $ | 61.73 | $ | 92.44 | $ | (30.71 | ) | (33.2 | )% | |||||
Ending Inventory Costs Per Low Vol Met Ton | $ | 85.60 | $ | 72.97 | $ | 12.63 | 17.3 | % | ||||||
Total Costs Per Low Vol Met Ton Sold | $ | 64.42 | $ | 90.75 | $ | (26.33 | ) | (29.0 | )% | |||||
Margin Per Low Vol Met Ton Sold | $ | 38.27 | $ | 77.12 | $ | (38.85 | ) | (50.4 | )% |
• | Gain on sale of assets attributable to the Other Coal segment were $2 million in the three months ended March 31, 2013 compared to $17 million in the three months ended March 31, 2012. The change was primarily related to 2012 sales of surface lands in Illinois and Pennsylvania that resulted in income of $16 million. See Note 2—Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements for additional detail of these sales. The remaining change was related to various transactions that occurred throughout both periods, none of which were individually material. |
• | Equity in earnings of affiliates decreased $4 million due to lower earnings from our equity affiliates. |
• | In the three months ended March 31, 2013, $3 million in business interruption insurance proceeds was received related to the 2012 Bailey Belt Conveyor accident. There is no assurance that additional proceeds from the incident will be received. |
• | The remaining $2 million decrease in other income is due to various items, none of which are individually significant. |
For the Three Months Ended March 31, | ||||||||||||
2013 | 2012 | Variance | ||||||||||
Blacksville No. 2 Mine Fire | $ | 15 | $ | — | $ | 15 | ||||||
Stock-based compensation | 17 | 10 | 7 | |||||||||
Closed and idle mines | 30 | 22 | 8 | |||||||||
Freight expense | 14 | 49 | (35 | ) | ||||||||
Other | 60 | 65 | (5 | ) | ||||||||
Total Other Coal Segment Costs | $ | 136 | $ | 146 | $ | (10 | ) |
• | On March 12, 2013, smoke was detected exiting the Orndoff shaft at CONSOL Energy's Blacksville No. 2 Mine near Wayne in Greene County, PA. All day shift underground employees were safely evacuated and no one sustained injuries. The location of the fire was identified and containment and extinguishment procedures were developed. The fire has since been extinguished as of March 24, 2013. It is unknown when mine operations will resume. The $15 million pre-tax expense impact reflects the expenses incurred to extinguish the fire. Insurance recovery is uncertain at this time and the impact of any potential recovery has not been reflected in the three months ended March 31, 2013. |
• | Stock-based compensation was higher in the period-to-period comparison primarily due to additional non-cash amortization expense and accelerated non-cash amortization for retiree-eligible employees who received awards under the new CONSOL Share Unit (CSU) program, when compared to the prior year's quarter. The new program replaces several previously provided long-term executive compensation award programs. The compensation expense of the CSU program will not be materially different from the total expense of the previous programs over the three-year performance period. |
• | Closed and idle mine costs increased approximately $8 million for the three months ended March 31, 2013 compared to the three months ended March 31, 2012. The increase was the result of $6 million additional costs related to on-going idling costs incurred at the Fola Complex in the three months ended March 31, 2013 and $3 million in idling costs incurred at the Amonate Complex, which were idled in September 2012. Closed and idle mine costs decreased $1 million due to other changes in the operational status of various other mines, between idled and operating throughout both periods, none of which were individually material. |
• | Freight expense is based on weight of coal shipped, negotiated freight rates and method of transportation (i.e. rail, barge, truck, etc.) used by the customers to which CONSOL Energy contractually provides transportation services. Freight revenue is the amount billed to customers for transportation costs incurred. Freight expense is offset by freight revenue. The decrease in freight expense was due to decreased shipments under contracts which CONSOL Energy contractually provides transportation services. |
• | Other expenses related to the coal segment decreased $5 million due to various transactions that occurred throughout both periods, none of which were individually material. |
For the Three Months Ended | Difference to Three Months Ended | ||||||||||||||||||||||||||||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||||||||||||||||||||||||||||
CBM | Shallow Oil and Gas | Marcellus | Other Gas | Total Gas | CBM | Shallow Oil and Gas | Marcellus | Other Gas | Total Gas | ||||||||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||||||||||||
Produced | $ | 83 | $ | 32 | $ | 49 | $ | 3 | $ | 167 | $ | (16 | ) | $ | (2 | ) | $ | 25 | $ | — | $ | 7 | |||||||||||||||||
Related Party | 1 | — | — | — | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||
Total Outside Sales | 84 | 32 | 49 | 3 | 168 | (16 | ) | (2 | ) | 25 | — | 7 | |||||||||||||||||||||||||||
Gas Royalty Interest | — | — | — | 14 | 14 | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||
Purchased Gas | — | — | — | 1 | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||
Other Income | — | — | — | 14 | 14 | — | — | — | (2 | ) | (2 | ) | |||||||||||||||||||||||||||
Total Revenue and Other Income | 84 | 32 | 49 | 32 | 197 | (16 | ) | (2 | ) | 25 | — | 7 | |||||||||||||||||||||||||||
Lifting | 9 | 7 | 5 | 1 | 22 | — | (3 | ) | 1 | 1 | (1 | ) | |||||||||||||||||||||||||||
Ad Valorem, Severance, and Other Taxes | 1 | 3 | 2 | (1 | ) | 5 | (2 | ) | — | 1 | (1 | ) | (2 | ) | |||||||||||||||||||||||||
Gathering | 28 | 10 | 9 | 1 | 48 | 3 | 4 | 5 | 1 | 13 | |||||||||||||||||||||||||||||
Gas Direct Administrative, Selling & Other | 2 | 2 | 6 | 1 | 11 | (3 | ) | (2 | ) | 3 | — | (2 | ) | ||||||||||||||||||||||||||
Depreciation, Depletion and Amortization | 23 | 14 | 13 | 2 | 52 | 1 | (1 | ) | 4 | (2 | ) | 2 | |||||||||||||||||||||||||||
General & Administration | — | — | — | 10 | 10 | — | — | — | — | — | |||||||||||||||||||||||||||||
Gas Royalty Interest | — | — | — | 12 | 12 | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||
Purchased Gas | — | — | — | 1 | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||
Exploration and Other Costs | — | — | — | 10 | 10 | — | — | — | 5 | 5 | |||||||||||||||||||||||||||||
Other Corporate Expenses | — | — | — | 25 | 25 | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||
Interest Expense | — | — | — | 2 | 2 | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||
Total Cost | 63 | 36 | 35 | 64 | 198 | (1 | ) | (2 | ) | 14 | 9 | 20 | |||||||||||||||||||||||||||
Earnings Before Income Tax | $ | 21 | $ | (4 | ) | $ | 14 | $ | (32 | ) | $ | (1 | ) | $ | (15 | ) | $ | — | $ | 11 | $ | (9 | ) | $ | (13 | ) |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Produced Gas CBM sales volumes (in billion cubic feet) | 20.7 | 22.7 | (2.0 | ) | (8.8 | )% | ||||||||
Average CBM sales price per thousand cubic feet sold | $ | 4.08 | $ | 4.40 | $ | (0.32 | ) | (7.3 | )% | |||||
Average CBM lifting costs per thousand cubic feet sold | 0.45 | 0.41 | 0.04 | 9.8 | % | |||||||||
Average CBM ad valorem, severance, and other taxes per thousand cubic feet sold | 0.06 | 0.12 | (0.06 | ) | (50.0 | )% | ||||||||
Average CBM gathering costs per thousand cubic feet sold | 1.38 | 1.08 | 0.30 | 27.8 | % | |||||||||
Average CBM direct administrative, selling & other costs per thousand cubic feet sold | 0.08 | 0.23 | (0.15 | ) | (65.2 | )% | ||||||||
Average CBM depreciation, depletion and amortization costs per thousand cubic feet sold | 1.08 | 0.96 | 0.12 | 12.5 | % | |||||||||
Total Average CBM costs per thousand cubic feet sold | 3.05 | 2.80 | 0.25 | 8.9 | % | |||||||||
Average Margin for CBM | $ | 1.03 | $ | 1.60 | $ | (0.57 | ) | (35.6 | )% |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Produced Gas Shallow Oil and Gas sales volumes (in billion cubic feet) | 7.1 | 7.6 | (0.5 | ) | (6.6 | )% | ||||||||
Average Shallow Oil and Gas sales price per thousand cubic feet sold | $ | 4.57 | $ | 4.53 | $ | 0.04 | 0.9 | % | ||||||
Average Shallow Oil and Gas lifting costs per thousand cubic feet sold | 1.00 | 1.32 | (0.32 | ) | (24.2 | )% | ||||||||
Average Shallow Oil and Gas ad valorem, severance, and other taxes per thousand cubic feet sold | 0.38 | 0.35 | 0.03 | 8.6 | % | |||||||||
Average Shallow Oil and Gas gathering costs per thousand cubic feet sold | 1.42 | 0.78 | 0.64 | 82.1 | % | |||||||||
Average Shallow Oil and Gas direct administrative, selling & other costs per thousand cubic feet sold | 0.32 | 0.59 | (0.27 | ) | (45.8 | )% | ||||||||
Average Shallow Oil and Gas depreciation, depletion and amortization costs per thousand cubic feet sold | 2.04 | 1.98 | 0.06 | 3.0 | % | |||||||||
Total Average Shallow Oil and Gas costs per thousand cubic feet sold | 5.16 | 5.02 | 0.14 | 2.8 | % | |||||||||
Average Margin for Shallow Oil and Gas | $ | (0.59 | ) | $ | (0.49 | ) | $ | (0.10 | ) | 20.4 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Produced Gas Marcellus sales volumes (in billion cubic feet) | 10.7 | 6.7 | 4.0 | 59.7 | % | |||||||||
Average Marcellus sales price per thousand cubic feet sold | $ | 4.53 | $ | 3.54 | $ | 0.99 | 28.0 | % | ||||||
Average Marcellus lifting costs per thousand cubic feet sold | 0.46 | 0.59 | (0.13 | ) | (22.0 | )% | ||||||||
Average Marcellus ad valorem, severance, and other taxes per thousand cubic feet sold | 0.13 | 0.13 | — | — | % | |||||||||
Average Marcellus gathering costs per thousand cubic feet sold | 0.84 | 0.59 | 0.25 | 42.4 | % | |||||||||
Average Marcellus direct administrative, selling & other costs per thousand cubic feet sold | 0.57 | 0.41 | 0.16 | 39.0 | % | |||||||||
Average Marcellus depreciation, depletion and amortization costs per thousand cubic feet sold | 1.24 | 1.34 | (0.10 | ) | (7.5 | )% | ||||||||
Total Average Marcellus costs per thousand cubic feet sold | 3.24 | 3.06 | 0.18 | 5.9 | % | |||||||||
Average Margin for Marcellus | $ | 1.29 | $ | 0.48 | $ | 0.81 | 168.8 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet) | 3.5 | 4.1 | (0.6 | ) | (14.6 | )% | ||||||||
Average Sales Price Per thousand cubic feet | $ | 4.10 | $ | 2.96 | $ | 1.14 | 38.5 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Purchased Gas Sales Volumes (in billion cubic feet) | 0.4 | 0.3 | 0.1 | 33.3 | % | |||||||||
Average Sales Price Per thousand cubic feet | $ | 3.45 | $ | 3.01 | $ | 0.44 | 14.6 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Gas Royalty Interest Sales Volumes (in billion cubic feet) | 3.5 | 4.1 | (0.6 | ) | (14.6 | )% | ||||||||
Average Cost Per thousand cubic feet sold | $ | 3.41 | $ | 2.49 | $ | 0.92 | 36.9 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Purchased Gas Volumes (in billion cubic feet) | 0.4 | 0.3 | 0.1 | 33.3 | % | |||||||||
Average Cost Per thousand cubic feet sold | $ | 2.44 | $ | 1.62 | $ | 0.82 | 50.6 | % |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Marcellus Title Defects | $ | 6 | $ | — | $ | 6 | — | % | ||||||
Lease Expiration Costs | 1 | 1 | — | — | % | |||||||||
Exploration | 3 | 4 | (1 | ) | (25.0 | )% | ||||||||
Total Exploration and Other Costs | $ | 10 | $ | 5 | $ | 5 | 100.0 | % |
• | As part of the title defect process the company is working through with its joint venture partner, Noble Energy, CONSOL Energy conceded title defects on acreage which had a book value to CONSOL Energy of $6 million. |
• | Lease expiration costs remained consistent in the period-to-period comparison. |
• | Exploration expenses decreased $1 million due to various transactions that occurred throughout both periods, none of which were individually material. |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Unutilized Firm Transportation | $ | 7 | $ | 2 | $ | 5 | 250.0 | % | ||||||
Stock-based compensation | 9 | 6 | 3 | 50.0 | % | |||||||||
Bank Fees | 2 | 2 | — | — | % | |||||||||
Short Term Incentive Compensation | 5 | 7 | (2 | ) | (28.6 | )% | ||||||||
PA Impact Fees | — | 4 | (4 | ) | (100.0 | )% | ||||||||
Other | 2 | 2 | — | 100.0 | % | |||||||||
Total Other Corporate Expenses | $ | 25 | $ | 23 | $ | 2 | 8.7 | % |
• | Unutilized firm transportation costs represent pipeline transportation capacity the gas segment has obtained to enable gas production to flow uninterrupted as sales volumes increase. The $5 million increase is due to increased firm transportation capacity which has not been utilized by active operations. |
• | Stock-based compensation was higher in the period-to-period comparison primarily due to additional non-cash amortization expense and accelerated non-cash amortization for retiree-eligible employees who received awards under the new CONSOL Share Unit (CSU) program, when compared to the prior year's quarter. The new program replaces several previously provided long-term executive compensation award programs. The compensation expense of the CSU program will not be materially different from the total expense of the previous programs over the three-year performance period. |
• | Bank Fees remained consistent in the period-to-period comparison. |
• | The short-term incentive compensation program is designed to increase compensation to eligible employees when CNX Gas reaches predetermined targets for safety, production and unit costs. Short-term incentive compensation expense was lower for the 2013 period compared to the 2012 period due to the projected lower payouts. |
• | PA impact fees are related to legislation in the state of Pennsylvania (Act 13 of 2012, House Bill 1950) which was signed into law during the first quarter of 2012. This legislation permits Pennsylvania counties to impose annual fees on unconventional gas wells located within their borders. As part of the legislation, all unconventional wells which were drilled prior to January 1, 2012 were assessed an initial fee related to periods prior to 2012. The $4 million represents this one-time initial assessment on wells drilled prior to January 1, 2012. On-going PA impact fees which relate to current year wells drilled are included as part of ad valorem, severance and other taxes in the Marcellus gas segment. |
• | Other corporate related expense remained consistent in the period to period comparison. |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Sales—Outside | $ | 86 | $ | 97 | $ | (11 | ) | (11.3 | )% | |||||
Other Income | 6 | 4 | 2 | 50.0 | % | |||||||||
Total Revenue | 92 | 101 | (9 | ) | (8.9 | )% | ||||||||
Cost of Goods Sold and Other Charges | 125 | 90 | 35 | 38.9 | % | |||||||||
Depreciation, Depletion & Amortization | 6 | 6 | — | — | % | |||||||||
Taxes Other Than Income Tax | 3 | 4 | (1 | ) | (25.0 | )% | ||||||||
Interest Expense | 51 | 57 | (6 | ) | (10.5 | )% | ||||||||
Total Costs | 185 | 157 | 28 | 17.8 | % | |||||||||
Loss Before Income Tax | (93 | ) | (56 | ) | (37 | ) | (66.1 | )% | ||||||
Income Tax | 1 | 21 | (20 | ) | (95.2 | )% | ||||||||
Net Loss | $ | (94 | ) | $ | (77 | ) | $ | (17 | ) | 22.1 | % |
For the Three Months Ended March 31, | ||||||||||||
2013 | 2012 | Variance | ||||||||||
CNX Gas shareholder settlement | $ | 20 | $ | — | $ | 20 | ||||||
Pension Settlement | 27 | — | 27 | |||||||||
Bank fees | 3 | 4 | (1 | ) | ||||||||
Interest Expense | 51 | 57 | (6 | ) | ||||||||
Other | 6 | 7 | (1 | ) | ||||||||
$ | 107 | $ | 68 | $ | 39 |
• | The CNX Gas shareholder settlement is the result of an agreement in principle for resolution of the class actions brought by shareholders of CNX Gas challenging the tender offer by CONSOL Energy to acquire all the shares of CNX Gas common stock that CONSOL Energy did not already own for $38.25 per share in May 2010. The total |
• | Pension Settlement adjustment is the result of accounting rules requiring acceleration of unrecognized actuarial losses when lump sum payments from a plan exceed the annual projected service and interest costs of the plan. In the three months ended March 31, 2013, lump sum pension payments exceeded the threshold which required settlement recognition. Many of these lump sums were paid to individuals who elected to retire under the 2012 Voluntary Severance Incentive Program. |
• | Bank Fees decreased $1 million due to various transactions that occurred throughout both periods, none of which were individually material. |
• | Interest expense decreased $6 million primarily due to an increase in capitalized interest due to higher capital expenditures for major construction projects in the current period. |
• | Other corporate items decreased $1 million due to various transactions that occurred throughout both periods, none of which were individually material. |
For the Three Months Ended March 31, | ||||||||||||||
2013 | 2012 | Variance | Percent Change | |||||||||||
Total Company Earnings Before Income Tax | $ | (1 | ) | $ | 119 | $ | (120 | ) | (100.8 | )% | ||||
Income Tax Expense | $ | 1 | $ | 21 | $ | (20 | ) | (95.2 | )% | |||||
Effective Income Tax Rate | (40.2 | )% | 18.0 | % | (58.2 | )% |
For the Three Months Ended March 31, | |||||||||||
2013 | 2012 | Change | |||||||||
Cash flows from operating activities | $ | 268 | $ | 229 | $ | 39 | |||||
Cash used in investing activities | $ | (232 | ) | $ | (288 | ) | $ | 56 | |||
Cash used in financing activities | $ | (34 | ) | $ | (30 | ) | $ | (4 | ) |
• | Operating cash flow decreased $99 million in 2013 due to lower net income in the period-to-period comparison. |
• | Operating cash flows increased $138 million due several non-cash items, such as the pension settlement, the CNX Gas shareholder settlement which was not paid as of March 31, 2013, stock-based compensation accelerated charges, the Noble title defects and other non-cash transactions which were added back to the net loss attributable to CNX Shareholders. Other changes in operating assets, operating liabilities, other assets and other liabilities which occurred throughout both years also contributed to the increase in operating cash flows. |
• | Capital expenditures increased $100 million in the period-to-period comparison due to: |
◦ | Coal segment capital expenditures increased $3 million. The increase was comprised of $28 million in longwall shield projects, offset, in part, by a decrease of $11 million for the Northern West Virginia RO system and $10 million for Ohio Valley overland belt project. Mineral lease expenditures associated with our advance mining royalties and leased coal assets decreased $4 million in 2013; |
◦ | Gas segment capital expenditures increased $109 million. The increase was comprised of $42 million in increased drilling in the Marcellus and Utica plays, $48 million related to CONSOL's agreement to lease oil and gas rights from the Allegheny County Airport Authority and $19 million in various other individually insignificant projects; |
◦ | Other capital expenditures decreased $12 million due to various miscellaneous transactions that occurred throughout both periods, none of which were individually material. |
• | Proceeds from the sale of assets increased $110 million in the period-to-period comparison due to: |
◦ | $71 million received in January 2013 related to the Bailey Mine longwall shield sale-leaseback; |
◦ | $64 million received in March 2013 related to the Shoemaker Mine longwall shield sale-leaseback; |
◦ | $28 million received in the first quarter of 2012 related to the 2012 sales of several non-core assets including previously mined surface properties and rights-of-way; and |
◦ | $3 million increase due to various other transactions that occurred throughout both periods, none of which were individually material. |
◦ | See Note 2 - Acquisitions and Dispositions, in the Notes to the Unaudited Consolidated Financial Statements included in this Form 10-Q for more information. |
• | Distributions from/investments in equity affiliates decreased $2 million due to various miscellaneous transactions that occurred throughout both periods, none of which were individually material. |
• | The release of $48 million of restricted cash associated with the Ram River & Scurry Canadian asset proceeds received during December 2012. |
• | In 2013, CONSOL Energy repaid $25 million of borrowings related to a miscellaneous short term note payable. |
• | In 2013, CONSOL Energy repaid $8 million of borrowing on its Securitization Facility. |
• | The accelerated declaration and payment of the regular quarterly dividend in the fourth quarter of 2012 resulted in no dividends paid in the first quarter of 2013. As compared to $28 million in dividends paid in the first quarter of 2012. |
• | $1 million in additional cash used due to various other transactions that occurred throughout both periods, none of which were individually material. |
Payments due by Year | |||||||||||||||||||
Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | |||||||||||||||
Borrowings Under Securitization Facility | $ | 30,119 | $ | — | $ | — | $ | — | $ | 30,119 | |||||||||
Purchase Order Firm Commitments | 267,454 | 72,599 | — | — | 340,053 | ||||||||||||||
Gas Firm Transportation | 82,059 | 154,987 | 128,338 | 414,276 | 779,660 | ||||||||||||||
Long-Term Debt | 4,564 | 8,441 | 1,505,508 | 1,610,291 | 3,128,804 | ||||||||||||||
Interest on Long-Term Debt | 245,448 | 491,341 | 431,064 | 358,916 | 1,526,769 | ||||||||||||||
Capital (Finance) Lease Obligations | 8,789 | 13,926 | 11,052 | 23,321 | 57,088 | ||||||||||||||
Interest on Capital (Finance) Lease Obligations | 3,798 | 5,918 | 4,260 | 3,249 | 17,225 | ||||||||||||||
Operating Lease Obligations | 112,150 | 208,401 | 147,008 | 154,566 | 622,125 | ||||||||||||||
Long-Term Liabilities—Employee Related (a) | 224,511 | 441,888 | 438,519 | 2,308,925 | 3,413,843 | ||||||||||||||
Other Long-Term Liabilities (b) | 345,345 | 131,848 | 85,746 | 485,891 | 1,048,830 | ||||||||||||||
Total Contractual Obligations (c) | $ | 1,324,237 | $ | 1,529,349 | $ | 2,751,495 | $ | 5,359,435 | $ | 10,964,516 |
(a) | Long-Term Liabilities—Employee Related include other post-employment benefits, work-related injuries and illnesses. Estimated salaried retirement contributions required to meet minimum funding standards under ERISA are excluded from the pay-out table due to the uncertainty regarding amounts to be contributed. Estimated 2013 contributions are expected to approximate $50 million. |
(b) | Other long-term liabilities include mine reclamation and closure and other long-term liability costs. |
(c) | The significant obligation table does not include obligations to taxing authorities due to the uncertainty surrounding the ultimate settlement of amounts and timing of these obligations. |
• | An aggregate principal amount of $1.50 billion of 8.00% senior unsecured notes due in April 2017. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes are guaranteed by most of CONSOL Energy’s subsidiaries. |
• | An aggregate principal amount of $1.25 billion of 8.25% senior unsecured notes due in April 2020. Interest on the notes is payable April 1 and October 1 of each year. Payment of the principal and interest on the notes are guaranteed by most of CONSOL Energy’s subsidiaries. |
• | An aggregate principal amount of $250 million of 6.375% notes due in March 2021. Interest on the notes is payable March 1 and September 1 of each year. Payment of the principal and interest on the notes are guaranteed by most of CONSOL Energy's subsidiaries. |
• | An aggregate principal amount of $103 million of industrial revenue bonds which were issued to finance the Baltimore port facility 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. |
• | Advance royalty commitments of $20 million with an average interest rate of 7.43% per annum. |
• | An aggregate principal amount of $6 million on other various rate notes maturing through June 2031. |
• | An aggregate principal amount of $57 million of capital leases with a weighted average interest rate of 6.37% per annum. |
Declaration Date | Amount Per Share | Record Date | Payment Date | |||||
April 26, 2013 | $ | 0.125 | May 10, 2013 | May 24, 2013 |
• | deterioration in global economic conditions in any of the industries in which our customers operate, or sustained uncertainty in financial markets cause conditions we cannot predict; |
• | an extended decline in demand for or prices we receive for our coal and natural gas affecting our operating results and cash flows; |
• | our customers extending existing contracts or entering into new long-term contracts for coal; |
• | our reliance on major customers; |
• | our inability to collect payments from customers if their creditworthiness declines; |
• | the disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our coal and natural gas to market; |
• | a loss of our competitive position because of the competitive nature of the coal and natural gas industries, or a loss of our competitive position because of overcapacity in these industries impairing our profitability; |
• | our inability to maintain satisfactory labor relations; |
• | coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions; |
• | the impact of potential, as well as any adopted regulations relating to greenhouse gas emissions on the demand for coal and natural gas; |
• | foreign currency fluctuations could adversely affect the competitiveness of our coal abroad; |
• | the risks inherent in coal and natural gas operations being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant construction or repair of equipment, fires, explosions, accidents and weather conditions which could impact financial results; |
• | decreases in the availability of, or increases in, the price of commodities or capital equipment used in our mining operations; |
• | decreases in the availability of, an increase in the prices charged by third party contractors or, failure of third party contractors to provide quality services to us in a timely manner could impact our profitability; |
• | obtaining and renewing governmental permits and approvals for our coal and gas 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 and natural gas operations; |
• | our ability to find adequate water sources for our use in gas drilling, or our ability to dispose of water used or removed from strata in connection with our gas operations at a reasonable cost and within applicable environmental rules; |
• | the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down a mine or natural gas well; |
• | the potential for liabilities arising from environmental contamination or alleged environmental contamination in connection with our past or current coal and gas operations; |
• | the effects of mine closing, reclamation, gas well closing and certain other liabilities; |
• | uncertainties in estimating our economically recoverable coal and gas reserves; |
• | defects may exist in our chain of title and we may incur additional costs associated with perfecting title for coal or gas rights on some of our properties or failing to acquire these additional rights may result in a reduction of our estimated reserves; |
• | the impacts of various asbestos litigation claims; |
• | the outcomes of various legal proceedings, which are more fully described in our reports filed under the Securities Exchange Act of 1934; |
• | increased exposure to employee-related long-term liabilities; |
• | exposure to multi-employer pension plan liabilities; |
• | minimum funding requirements by the Pension Protection Act of 2006 (the Pension Act) coupled with the significant investment and plan asset losses suffered during the recent economic decline has exposed us to making additional required cash contributions to fund the pension benefit plans which we sponsor and the multi-employer pension benefit plans in which we participate; |
• | lump sum payments made to retiring salaried employees pursuant to our defined benefit pension plan exceeding total service and interest cost in a plan year; |
• | acquisitions that we recently have completed or may make in the future including the accuracy of our assessment of the acquired businesses and their risks, achieving any anticipated synergies, integrating the acquisitions and unanticipated changes that could affect assumptions we may have made and divestitures we anticipate may not occur or produce anticipated proceeds; |
• | the terms of our existing joint ventures restrict our flexibility, actions taken by the other party in our gas joint ventures may impact our financial position and various circumstances could cause us not to realize the benefits we anticipate receiving from these joint ventures; |
• | the anti-takeover effects of our rights plan could prevent a change of control; |
• | risks associated with our debt; |
• | replacing our natural gas reserves, which if not replaced, will cause our gas reserves and gas production to decline; |
• | our hedging activities may prevent us from benefiting from price increases and may expose us to other risks; |
• | changes in federal or state income tax laws, particularly in the area of percentage depletion and intangible drilling costs, could cause our financial position and profitability to deteriorate; and |
• | other factors discussed in our 2012 Form 10-K under “Risk Factors,” which is on file at the Securities and Exchange Commission. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
For the Three Months Ended | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total Year | |||||||||||||||
2013 Fixed Price Volumes | |||||||||||||||||||
Hedged Mcf | 16,675,170 | 19,834,675 | 21,531,447 | 21,531,447 | 79,572,739 | ||||||||||||||
Weighted Average Hedge Price/Mcf | $ | 4.77 | $ | 4.69 | $ | 4.67 | $ | 4.67 | $ | 4.69 | |||||||||
2014 Fixed Price Volumes | |||||||||||||||||||
Hedged Mcf | 15,007,908 | 15,174,663 | 15,341,417 | 15,341,417 | 60,865,406 | ||||||||||||||
Weighted Average Hedge Price/Mcf | $ | 4.96 | $ | 4.96 | $ | 4.96 | $ | 4.96 | $ | 4.96 | |||||||||
2015 Fixed Price Volumes | |||||||||||||||||||
Hedged Mcf | 10,597,403 | 10,715,152 | 10,832,900 | 10,832,900 | 42,978,355 | ||||||||||||||
Weighted Average Hedge Price/Mcf | $ | 4.24 | $ | 4.24 | $ | 4.24 | $ | 4.24 | $ | 4.24 | |||||||||
2016 Fixed Price Volumes | |||||||||||||||||||
Hedged Mcf | 866,667 | 866,667 | 876,190 | 876,190 | 3,485,714 | ||||||||||||||
Weighted Average Hedge Price/Mcf | $ | 4.45 | $ | 4.45 | $ | 4.45 | $ | 4.45 | $ | 4.45 |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 6. | EXHIBITS |
10.1 | Amendment No. 2 to Credit Agreement, dated as of March 12, 2013, to the Amended and Restated Credit Agreement, dated as of April 12, 2011, as amended by Amendment No. 1, dated December 14, 2011, by and among CNX Gas Corporation, the lenders and agents party thereto and PNC Bank, National Association, as administrative agent. | ||
10.2 | Form of CONSOL Energy Inc. Stock Unit Award Agreement under the Equity Incentive Plan. | ||
10.3 | Retirement Letter, dated January 29, 2013, by and between CONSOL Energy Inc. and P. Jerome Richey. | ||
10.4 | Retirement and Consulting Agreement, dated February 28, 2013, by and between CONSOL Energy Inc. and William J. Lyons. | ||
10.5 | Retirement and Consulting Agreement, dated February 20, 2013, by and between CONSOL Energy Inc. and Robert F. Pusateri. | ||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
95 | Mine Safety and Health Administration Safety Data. | ||
101 | Interactive Data File (Form 10-Q for the quarterly period ended March 31, 2013 furnished in XBRL). |
CONSOL ENERGY INC. | |||
By: | /S/ J. BRETT HARVEY | ||
J. Brett Harvey | |||
Chairman of the Board and Chief Executive Officer (Duly Authorized Officer and Principal Executive Officer) | |||
By: | /S/ DAVID M. KHANI | ||
David M. Khani | |||
Chief Financial Officer and Executive Vice President (Duly Authorized Officer and Principal Financial Officer) | |||
By: | /S/ LORRAINE L. RITTER | ||
Lorraine L. Ritter | |||
Controller and Vice President (Duly Authorized Officer and Principal Accounting Officer) |
By: | /s/ Adam H. Fey Name: Adam H. Fey Title: Director |
By: | /s/ Yacouba Kane Name: Yacouba Kane Title: Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ Thane Rattew Name: Thane Rattew Title: Managing Director |
a second signatory: | By: Name: Title: |
By: | /s/ Andrew Oram Name: Andrew Oram Title: Managing Director |
By: | /s/ Eric Griffin Name: Eric Griffin Title: Assistant Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ James Giordano Name: James Giordano Title: Vice President |
By: | /s/ Nancy Mak Name: Nancy Mak Title: Senior Vice President |
By: | /s/ Trudy Nelson Name: Trudy Nelson Title: Authorized Signatory |
By: | /s/ John S. Lesikar Name: John S. Lesikar Title: Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ James Neblett Name: James Neblett Title: Vice President |
By: | /s/ Ajay Lele Name: Ajay Lele Title: Associate Vice President, |
a second signatory: | By: Name: Title: |
By: | /s/ Blake Wright Name: Blake Wright Title: Managing Director |
By: | /s/ Martin H. McGinty Name: Martin H. McGinty Title: Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ Jonathan D. Kowalski Name: Jonathan D. Kowalski Title: Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ Michelle Latzoni Name: Michelle Latzoni Title: Authorized Signatory |
a second signatory: | By: Name: Title: |
By: | /s/ Ryan Aman Name: Ryan Aman Title: Authorized Officer |
By: | /s/ Carlos Quinteros Name: Carlos Quinteros Title: Managing Director |
By: | /s/ David Slye Name: David Slye Title: Authorised Signatory |
By: | /s/ Paul J. Oris Name: Paul J. Oris Title: Senior Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ Patrick J. Kerr Name: Patrick J. Kerr Title: Senior Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ Robert D. Lanigan Name: Robert D. Lanigan Title: Senior Vice President |
By: | /s/ Joshua D. Elsea Name: Joshua D. Elsea Title: Vice President, Commercial Banking |
By: | /s/ Marla Willner Name: Marla Willner Title: Senior Vice President |
a second signatory: | By: Name: Title: |
By: | /s/ Bradley Kraus Name: Bradley Kraus Title: IBO |
By: | /s/ Daniel K. Hansen Name: Daniel K. Hansen Title: Vice President |
By: | /s/ Suzanne Ridenhour Name: Suzanne Ridenhour Title: Director |
a second signatory: | By: Name: Title: |
phone: | 724-485-4018 |
fax: | 724-485-4849 |
e-mail: | brettharvey@consolenergy.com |
web: | www.consolenergy.com |
• | Separation payment. The Company is offering to pay you $772,000.00, minus applicable withholdings and deductions. This includes any amounts you would be eligible to receive under the CONSOL Energy Inc. Severance Pay Plan for Salaried Employees and/or under the Employment Letter. Your separation payment will be paid on the first regularly scheduled Company payday after this agreement becomes effective. |
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. |
Date: | May 7, 2013 | |
/s/ J. Brett Harvey | ||
J. Brett Harvey | ||
Chairman of the Board and Chief Executive Officer | ||
(Principal Executive Officer) |
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 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; |
(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. |
Date: | May 7, 2013 | |
/s/ David M. Khani | ||
David M. Khani | ||
Chief Financial Officer and Executive Vice President (Principal Financial Officer) |
(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. |
Date: | May 7, 2013 | |
/s/ J. Brett Harvey | ||
J. Brett Harvey | ||
Chairman of the Board and Chief Executive Officer |
(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. |
Date: | May 7, 2013 | |
/s/ David M. Khani | ||
David M. Khani | ||
Chief Financial Officer and Executive Vice President |
Received | ||||||||||||||||||||||||||
Notice | ||||||||||||||||||||||||||
Received | of | Legal | ||||||||||||||||||||||||
Total | Notice of | Potential | Actions | |||||||||||||||||||||||
Section | Total Dollar | Number | Pattern of | to have | Pending | Legal | Legal | |||||||||||||||||||
Section | 104(d) | Value of | of | Violations | Pattern | as of | Actions | Actions | ||||||||||||||||||
Mine or Operating | 104 | Section | Citations | Section | Section | MSHA | Mining | Under | Under | Last | Initiated | Resolved | ||||||||||||||
Name/MSHA | S&S | 104(b) | and | 110(b)(2) | 107(a) | Assessments | Related | Section | Section | Day of | During | During | ||||||||||||||
Identification Number | Citations | Orders | Orders | Violations | Orders | Proposed | Fatalities | 104(e) | 104(e) | Period (1) | Period | Period | ||||||||||||||
Active Operations | ||||||||||||||||||||||||||
Alma No. 1 Mine | 46-09277 | 1 | — | — | — | — | 1,000 | — | No | No | — | — | — | |||||||||||||
Amonate Plant | 46-05449 | — | — | — | — | — | 100 | — | No | No | — | — | — | |||||||||||||
Bailey | 36-07230 | 22 | — | — | — | — | 24,792 | — | No | No | 8 | 5 | 4 | |||||||||||||
Blacksville 2 | 46-01968 | 46 | — | 1 | — | — | 91,628 | — | No | No | 26 | 5 | 5 | |||||||||||||
Buchanan | 44-04856 | 27 | — | — | — | — | 198,300 | — | No | No | 36 | 6 | 6 | |||||||||||||
Central Repair Shop | 46-03240 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Enlow Fork | 36-07416 | 13 | — | 2 | — | — | 21,560 | — | No | No | 8 | 5 | 9 | |||||||||||||
Ireland Dock Loadout | 46-01438 | 2 | — | — | — | — | 276 | — | No | No | 5 | — | — | |||||||||||||
Keystone Cleaning Plant | 36-08540 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Loveridge | 46-01433 | 78 | — | 9 | — | 1 | 126,408 | 1 | No | No | 26 | 1 | 2 | |||||||||||||
McElroy | 46-01437 | 56 | — | — | — | 1 | 85,479 | — | No | No | 27 | 2 | 2 | |||||||||||||
Miller Creek PP #1 | 46-05890 | 5 | — | — | — | — | 324 | — | No | No | — | — | 2 | |||||||||||||
Minway Surface | 46-06089 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Robinson Run | 46-01318 | 26 | — | — | — | — | 289,893 | — | No | No | 32 | 7 | 1 | |||||||||||||
Shoemaker | 46-01436 | 32 | — | — | — | — | 309,625 | — | No | No | 26 | 8 | 4 | |||||||||||||
Twin Branch Surface | 46-09075 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Wiley Creek (MT-13/500) | 46-09185 | — | — | — | — | — | 243 | — | No | No | 2 | 1 | — | |||||||||||||
Wiley Surface(MT34/Peg Fork) | 46-09035 | 3 | — | — | — | — | 3,424 | — | No | No | 1 | — | — | |||||||||||||
Inactive Operations | ||||||||||||||||||||||||||
Big Branch #1Belt/Spruce Creek | 46-09177 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Big Fork | 44-06859 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Bronzite II (MT-41) | 46-09307 | — | — | — | — | — | 1,111 | — | No | No | 1 | — | 1 | |||||||||||||
Bronzite III (Jacobs) | 46-05978 | — | — | — | — | — | — | — | No | No | — | — | 3 | |||||||||||||
Elk Creek Prep Plant (Sold) | 46-02444 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Emery | 42-00079 | — | — | — | — | — | 200 | — | No | No | 1 | — | — | |||||||||||||
Fola Surface | 46-08377 | — | — | — | — | — | — | — | No | No | 1 | — | — | |||||||||||||
Ike Fork 5 Block | 46-09420 | — | — | — | — | — | 648 | — | No | No | 2 | — | — | |||||||||||||
Impoundment 14-N | 36-08094 | — | — | — | — | — | — | — | No | No | — | — | — |
Jones Fork Prep Plant (Sold) | 15-17021 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Laurel Fork | 46-09084 | — | — | — | — | — | — | — | No | No | — | — | 1 | |||||||||||||
Lick Branch | 46-08676 | — | — | — | — | — | 634 | — | No | No | 1 | — | — | |||||||||||||
Little Eagle Mine #1 | 46-08560 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Meigs #31 Mine | 33-01172 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Miles Branch | 44-03932 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Mine 84 | 36-00958 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
MT-34 UG | 46-09424 | — | — | — | — | — | 9,175 | — | No | No | — | — | — | |||||||||||||
Muskingum | 33-00989 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Peach Orchard Prep Plant | 46-08376 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Powellton/Bridge Fork | 46-08889 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Reclamation #061 | 33-00962 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Rend Lake | 11-00601 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Robena Prep | 36-04175 | — | — | — | — | — | 300 | — | No | No | — | — | 1 | |||||||||||||
Rock Lick | 46-09171 | — | — | — | — | — | — | — | No | No | 2 | — | 6 | |||||||||||||
Squire Jim #2 | 46-09211 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Terry Eagle PP #1 | 46-02295 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Wiley (MT-11) | 46-09138 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Wiley Area 80 | 15-18477 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
Winoc Prep Plant | 46-08172 | — | — | — | — | — | — | — | No | No | — | — | — | |||||||||||||
310 | — | 12 | — | 2 | 1,164,120 | 1 | 205 | 40 | 47 |
Mine or Operating Name/MSHA Identification Number | Contests of Citations, Orders (as of 3.31.13) (a) | Contests of Proposed Penalties (as of 3.31.13) (b) | Complaints for Compensation (as of 3.31.13) (c) | Complaints of Discharge, Discrimination or Interference (as of 3.31.13) (d) | Applications for Temporary Relief (as of 3.31.13) (e) | Appeals of Judges' Decisions or Order (as of 3.31.13) (f) | ||||||||||
Dockets | Citations | |||||||||||||||
Active Operations | ||||||||||||||||
Alma No. 1 Mine | 46-09277 | — | — | — | — | — | — | — | ||||||||
Amonate Plant | 46-05449 | — | — | — | — | — | — | — | ||||||||
Bailey | 36-07230 | — | 8 | 16 | — | 1 | — | — | ||||||||
Blacksville 2 | 46-01968 | — | 26 | 287 | — | — | — | — | ||||||||
Buchanan | 44-04856 | — | 36 | 417 | — | 4 | — | — | ||||||||
Central Repair Shop | 46-03240 | — | — | — | — | — | — | — | ||||||||
Enlow Fork | 36-07416 | — | 8 | 32 | — | — | — | — | ||||||||
Ireland Dock Loadout | 46-01438 | — | 5 | 6 | — | — | — | — | ||||||||
Keystone Cleaning Plant | 36-08540 | — | — | — | — | — | — | — | ||||||||
Loveridge | 46-01433 | — | 26 | 179 | — | — | — | — | ||||||||
McElroy | 46-01437 | — | 27 | 576 | — | — | — | — | ||||||||
Miller Creek PP #1 | 46-05890 | — | — | — | — | — | — | — | ||||||||
Minway Surface | 46-06089 | — | — | — | — | — | — | — | ||||||||
Robinson Run | 46-01318 | — | 32 | 248 | — | — | — | 1 | ||||||||
Shoemaker | 46-01436 | — | 26 | 273 | — | 1 | — | — | ||||||||
Twin Branch Surface | 46-09075 | — | — | — | — | — | — | — | ||||||||
Wiley Creek (MT‑13/500) | 46-09185 | — | 2 | 2 | — | — | — | — | ||||||||
Wiley Surface(MT34/Peg Fork) | 46-09035 | — | 1 | 2 | — | — | — | — | ||||||||
Inactive Operations | ||||||||||||||||
Big Branch #1Belt/Spruce Creek | 46-09177 | — | — | — | — | — | — | — | ||||||||
Big Fork | 44-06859 | — | — | — | — | — | — | — | ||||||||
Bronzite II (MT‑41) | 46-09307 | — | 1 | 1 | — | — | — | — | ||||||||
Bronzite III (Jacobs) | 46-05978 | — | — | — | — | — | — | — | ||||||||
Elk Creek Prep Plant (Sold) | 46-02444 | — | — | — | — | — | — | — | ||||||||
Emery | 42-00079 | — | 1 | 1 | — | — | — | — | ||||||||
Fola Surface | 46-08377 | — | 1 | 3 | — | — | — | — | ||||||||
Ike Fork 5 Block | 46-09420 | — | 2 | 2 | — | — | — | — | ||||||||
Impoundment 14‑N | 36-08094 | — | — | — | — | — | — | — | ||||||||
Jones Fork Prep Plant(Sold) | 15-17021 | — | — | — | — | — | — | — | ||||||||
Laurel Fork | 46-09084 | — | — | — | — | — | — | — | ||||||||
Lick Branch | 46-08676 | — | 1 | 3 | — | — | — | — | ||||||||
Little Eagle Mine #1 | 46-08560 | — | — | — | — | — | — | — | ||||||||
Meigs #31 Mine | 33-01172 | — | — | — | — | — | — | — | ||||||||
Miles Branch | 44-03932 | — | — | — | — | — | — | — | ||||||||
Mine 84 | 36-00958 | — | — | — | — | — | — | — | ||||||||
MT-34 UG | 46-09424 | — | — | — | — | — | — | — | ||||||||
Muskingum | 33-00989 | — | — | — | — | — | — | — | ||||||||
Peach Orchard Prep Plant | 46-08376 | — | — | — | — | — | — | — | ||||||||
Powellton/Bridge Fork | 46-08889 | — | — | — | — | — | — | — | ||||||||
Reclamation #061 | 33-00962 | — | — | — | — | — | — | — | ||||||||
Rend Lake | 11-00601 | — | — | — | — | — | — | — | ||||||||
Robena Prep | 36-04175 | — | — | — | — | — | — | — | ||||||||
Rock Lick | 46-09171 | — | 2 | 18 | — | — | — | — | ||||||||
Squire Jim #2 | 46-09211 | — | — | — | — | — | — | — | ||||||||
Terry Eagle PP #1 | 46-02295 | — | — | — | — | — | — | — | ||||||||
Wiley (MT‑11) | 46-09138 | — | — | — | — | — | — | — | ||||||||
Wiley Area 80 | 15-18477 | — | — | — | — | — | — | — | ||||||||
Winoc Prep Plant | 46-08172 | — | — | — | — | — | — | — | ||||||||
— | 205 | 2,066 | — | 6 | — | 1 |
Property, Plant and Equipment Joint Venture Activity (Details) (USD $)
|
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2013
Noble JV[Member] [Member]
|
Mar. 31, 2013
Hess [Member]
|
Mar. 31, 2013
Noble JV[Member] [Member]
acre
|
Dec. 31, 2011
Noble JV[Member] [Member]
acre
|
Sep. 30, 2011
Noble JV[Member] [Member]
|
Dec. 31, 2011
Hess [Member]
acre
|
|
Drilling commitment carry | $ 2,100,000,000 | $ 534,000,000 | |||||
Maximum Annual Drilling Commitment Carry | 400,000,000 | ||||||
Acres w/ Asserted Title Defects | 93,000 | 38,000 | |||||
Gas and Oil Acreage, Unproved, Net | 628,000 | 200,000 | |||||
Carry Value of Acres w/ Asserted Title Defects | 610,000,000 | 153,000,000 | |||||
drill carry remaining | 2,052,790,000 | 496,723,000 | |||||
Aggregate Value of Conceded Defects in Excess of the Applicable Deductible | 37,000,000 | ||||||
Transaction Value of Asserted Title Defects | $ 6,310,000 |
Income Taxes Income Tax Reconciliation (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Amount | ||
Statutory U.S. Federal Income Tax Rate | $ (455) | $ 41,502 |
Income Tax Reconciliation, Nondeductible Expense, Depletion | 1,428 | (26,514) |
Net Effect of State Income Taxes | (179) | 3,510 |
Other | (272) | 2,883 |
Income Tax Expense / Effective Rate | $ 522 | $ 21,381 |
Percent | ||
Statutory U.S. Federal Income Tax Rate | 35.00% | 35.00% |
Excess Tax Depletion | (109.90%) | (22.40%) |
Net Effect of State Income Taxes | 13.70% | 3.00% |
Other | 21.00% | 2.40% |
Income Tax Expense / Effective Rate | (40.20%) | 18.00% |
Short-Term Notes Payable (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2010
|
Mar. 31, 2013
Senior Secured Credit Facility April122016 Member [Member]
|
Mar. 31, 2013
CNX Gas Senior Secured Credit Facility April122016 Member [Member]
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Mar. 31, 2012
CNX Gas Senior Secured Credit Facility April122016 Member [Member]
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Short-term Debt [Line Items] | |||||
Credit facility, face amount | $ 1,500,000 | $ 1,000,000 | |||
Additional Capacity Available On Credit Lines At Request | 250,000 | 250,000 | |||
Minimum interest coverage ratio | 2.50 | 3.00 | |||
Interest coverage ratio | 4.42 | 42.09 | |||
Maximum leverage ratio | 4.75 | 3.50 | |||
Current maximum leverage ratio | 2.86 | 0.56 | |||
Senior secured leverage ratio, maximum | 2.00 | ||||
Current secured leverage ratio | 0.09 | ||||
Letters of credit outstanding | 100,292 | 70,203 | |||
Borrowings and issuance of letters of credit remaining capacity | 1,399,708 | 929,797 | |||
Debt Instrument, Interest Rate During Period | 1.89% | ||||
Interest Payable, Current | $ 113,586 | $ 63,363 | $ 119 | $ 29 |
Commitments and Contingencies (Tables)
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Mar. 31, 2013
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Long-term Purchase Commitment [Table Text Block] | At March 31, 2013, CONSOL Energy has provided the following financial guarantees, unconditional purchase obligations and letters of credit to certain third parties, as described by major category in the following table. These amounts represent the maximum potential total of future payments that we could be required to make under these instruments. 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 on the financial statements. CONSOL Energy management believes that these guarantees will expire without being funded, and therefore the commitments will not have a material adverse effect on financial condition.
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Unrecorded Unconditional Purchase Obligations Disclosure | CONSOL Energy and CNX Gas enter into long-term unconditional purchase obligations to procure major equipment purchases, natural gas firm transportation, gas drilling services and other operating goods and services. These purchase obligations are not recorded on the Consolidated Balance Sheet. As of March 31, 2013, the purchase obligations for each of the next five years and beyond were as follows:
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Supply Commitment [Table Text Block] | Costs related to these purchase obligations include:
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Subsequent Events Details (Details) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended |
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Apr. 12, 2013
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Subsequent Event [Line Items] | |
Subsequent Event, Amount, Higher Range | $ 36,000 |
Commitments and Contingencies Additional Information (Details) (USD $)
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3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||
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Mar. 31, 2013
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Dec. 31, 2012
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Mar. 31, 2013
Subsidiaries
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Mar. 31, 2013
Commonwealth Park Property
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Mar. 31, 2013
South Carolina Electric Gas Company [Member]
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Mar. 31, 2012
South Carolina Electric Gas Company [Member]
Counterclaim [Member]
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Mar. 31, 2013
PCB Soil Removal Action
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Mar. 31, 2013
American electric corp [Member]
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Dec. 31, 2012
American electric corp [Member]
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Dec. 31, 2007
Earl Kennedy
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Mar. 31, 2013
Cnx Gas Stock Acquisition [Member]
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Dec. 31, 2012
Cnx Gas Stock Acquisition [Member]
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Mar. 31, 2013
Ratliff [Member]
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Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 845,000,000 | ||||||||||||
Claims by plaintiff | The Commonwealth claimed that the Company is liable for dam reconstruction costs, lake restoration costs and natural resource damages totaling $58,000. | 36000 | The complaint, as amended, seeks injunctive relief, including removing CNX Gas Company from the property, and compensatory damages of $20,000. | $4,000 to $8,000 | |||||||||
The current estimated cost of remedial action for the area CONSOL Energy was originally named a PRP, including payment of the EPA's past and future cost, is approximately | 30,000,000 | 65,000,000 | 5,400,000 | 20,200 | |||||||||
Litigation Settlement, Gross | 250 | ||||||||||||
Counterclaim by the company | 9400 | 408 | |||||||||||
Sale of Stock, Price Per Share | $ 38.25 | ||||||||||||
Loss Contingency, Settlement Agreement, Court | 42730 | ||||||||||||
Loss Contingency, Estimate of Possible Loss | 20,000,000 | 11,000,000 | |||||||||||
Loss Contingency, Range of Possible Loss, Minimum | 9,000,000 | 2,000,000 | |||||||||||
CONSOL Energy's portion of probable recoveries from settled claims | 4,393,000 | ||||||||||||
Remaining liability in PCB soil removal action | 839,294,000 | 768,494,000 | 3,167,000 | ||||||||||
Loss Contingency, Damages Sought, Value | $ 384,000 | ||||||||||||
Commitments and Contingent, number of asbestos claims | 6,900 |
Subsequent Events (Notes)
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0 Months Ended |
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Apr. 12, 2013
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Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS: In April 2013, CONSOL Energy and the Commonwealth of Pennsylvania entered into a Settlement Agreement and Release settling all of the Commonwealth's claims regarding the Ryerson Park Dam and the Ryerson Park Lake, discussed further in Note 11 - Commitments and Contingencies. The Settlement provides in part for the payment to the Commonwealth of $36,000 for use to rebuild the dam and restore the lake. As part of the settlement, the Commonwealth will convey to the Company its oil and gas rights within the Park, subject to the Company's agreement to extract oil and gas from surface facilities located outside of the boundaries of the Park. The Settlement also provides in part for the conveyance by the Company to the Commonwealth of eight surface parcels containing approximately 506 acres of land adjoining the park after the parcels are no longer needed for the Company's operations and the conveyance by the Commonwealth to the Company certain coal and mining rights in an area of the Bailey Mine where a mining permit application is currently pending. |
Income Taxes Tax Examinations (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
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Mar. 31, 2013
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Mar. 31, 2012
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Income Tax Examination [Line Items] | ||
Income Tax Reconciliation, Nondeductible Expense, Depletion | $ 1,428 | $ (26,514) |
Internal Revenue Service (IRS) [Member]
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Income Tax Examination [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ (983) |
Guarantor Subsidiaries Financial Information (Tables)
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Mar. 31, 2013
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Mar. 31, 2012
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Dec. 31, 2012
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Guarantor Subsidiaries Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor FInancial Statements [Table Text Block] [Table Text Block] | Income Statement for the Three Months Ended March 31, 2013 (unaudited):
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Income Statement for the Three Months Ended March 31, 2012 (unaudited):
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Guarantor Balance Sheet [Table Text Block] | Balance Sheet at March 31, 2013 (unaudited):
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Balance Sheet at December 31, 2012:
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Guarantor Condensed Cash Flow [Table Text Block] | Cash Flow for the Three Months Ended March 31, 2013 (unaudited):
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Cash Flow for the Three Months Ended March 31, 2012 (unaudited):
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Guarantor Condensed Comprehensive Income [Table Text Block] |
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Statement of Comprehensive Income for the Three Months Ended March 31, 2012 (Unaudited):
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Accounts Receivable Securitization (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2013
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Mar. 31, 2012
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Dec. 31, 2012
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Accounts Receivable - Securitized | $ 30,119 | $ 37,846 | |
Increase (Decrease) in Accounts Receivable from Securitization | 7,727 | ||
AR securitization facility [Member]
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Line of Credit Facility, Maximum Borrowing Capacity | 200,000 | ||
Current borrowing capacity of receivable facility | 199,800 | 200,000 | |
Letters of credit amount outstanding | 159,281 | ||
Costs associated with the receivables facility | 472 | 419 | |
Expiration date of receivables facility | Mar. 30, 2017 | ||
Eligible accounts receivable, a subordinated retained interest | $ 10,400 |
The Effect of Derivative Instruments on the Consolidated Statement of Income (Details) (Price Swaps, Derivative in Cash Flow Hedging Relationship, Natural Gas, USD $)
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Mar. 31, 2013
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Mar. 31, 2012
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Dec. 31, 2012
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Dec. 31, 2011
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 35,453,000 | $ 179,915,000 | $ 76,761,000 | $ 151,780,000 |
Amount of Gain (Loss) Recognized in OCI on Derivative | (18,595,000) | 76,076,000 | ||
Outside Sales
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 22,713,000 | 47,941,000 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 1,041,000 | $ (835,000) |
Basis of Presentation
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Mar. 31, 2013
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BASIS OF PRESENTATION: [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | NOTE 1—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 generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for future periods. The balance sheet at December 31, 2012 has been derived from the Audited Consolidated Financial Statements at that date but does not include all the notes required by generally accepted accounting principles for complete financial statements. For further information, refer to the Consolidated Financial Statements and related notes for the year ended December 31, 2012 included in CONSOL Energy Inc.'s Form 10-K. Certain amounts in prior periods have been reclassified to conform with the report classifications of the year ended December 31, 2012, with no effect on previously reported net income or stockholders' equity. Basic earnings per share are computed by dividing net (loss) income attributable to 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 the assumed exercise of stock options and performance stock options and the assumed vesting of restricted and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and performance share options were exercised, 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. CONSOL Energy Inc. (CONSOL Energy or the Company) includes the impact of pro forma deferred tax assets in determining potential windfalls and shortfalls for purposes of calculating assumed proceeds under the treasury stock method. The table below sets forth the share-based awards that have been excluded from the computation of the diluted earnings per share because their effect would be anti-dilutive:
The table below sets forth the share-based awards that have been exercised or released:
The weighted average exercise price per share of the options exercised during the three months ended March 31, 2013 and 2012 was $10.65 and $13.81, respectively. The computations for basic and dilutive earnings per share are as follows:
Changes in Accumulated Other Comprehensive Income / (Loss) by component, net of tax, were as follows:
The following table shows the reclassification of adjustments out of Accumulated Other Comprehensive Loss:
*Excludes amounts related to the remeasurement of the Actuarially Determined Long-Term Liabilities for the three months ended March 31, 2013 and March 31, 2012. |
Financial Instruments Measured at Fair Value on a Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
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Quoted Prices in Active Markets for Identical Liabilities (Level 1)
|
||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Gas Cash Flow hedges | $ 0 | $ 0 |
Significant Other Observable Inputs (Level 2)
|
||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Gas Cash Flow hedges | 62,728 | 128,945 |
Significant Unobservable Inputs (Level 3)
|
||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Gas Cash Flow hedges | $ 0 | $ 0 |
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