Delaware | 001-14901 | 51-0337383 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
CNX Center 1000 CONSOL Energy Drive Canonsburg, Pennsylvania 15317 (Address of principal executive offices) (Zip code) |
Exhibit 2.1 | Membership Interest and Asset Purchase Agreement dated February 26, 2016 among CONSOL Energy Inc., CONSOL Mining Holding Company LLC, CONSOL Buchanan Mining Company LLC, CONSOL Amonate Mining Company LLC CONSOL Mining Company LLC, CNX Land LLC, CNX Marine Terminals Inc., CNX RCPC LLC, CONSOL Pennsylvania Coal Company LLC and CONSOL Amonate Facility LLC and Coronado IV LLC which is incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on February 29, 2016. Schedules and Exhibits to the Membership Interest and Asset Purchase Agreement identified in the Table of Contents to the Membership Interest and Asset Purchase Agreement are not being filed but will be furnished supplementally to the Securities and Exchange Commission upon request. | |
Exhibit 99.1 | Press Release dated April 1, 2016 regarding closing the transactions contemplated by the Membership Interest and Asset Purchase Agreement with Coronado IV LLC. | |
Exhibit 99.2 | Pro Forma Financial Information. |
Exhibit 2.1 | Membership Interest and Asset Purchase Agreement dated February 26, 2016 among CONSOL Energy Inc., CONSOL Mining Holding Company LLC, CONSOL Buchanan Mining Company LLC, CONSOL Amonate Mining Company LLC CONSOL Mining Company LLC, CNX Land LLC, CNX Marine Terminals Inc., CNX RCPC LLC, CONSOL Pennsylvania Coal Company LLC and CONSOL Amonate Facility LLC and Coronado IV LLC which is incorporated by reference to Exhibit 2.1 to Form 8-K (file no. 001-14901) filed on February 29, 2016. Schedules and Exhibits to the Membership Interest and Asset Purchase Agreement identified in the Table of Contents to the Membership Interest and Asset Purchase Agreement are not being filed but will be furnished supplementally to the Securities and Exchange Commission upon request. |
Exhibit 99.1 | Press Release dated April 1, 2016 regarding closing the transactions contemplated by the Membership Interest and Asset Purchase Agreement with Coronado IV LLC. |
Exhibit 99.2 | Pro Forma Financial Information. |
As Reported | Pro Forma Adjustments | Pro Forma | |||||||||
Revenues and Other Income: | |||||||||||
Natural Gas, NGLs and Oil Sales | $ | 726,921 | $ | 1,538 | (a) | $ | 728,459 | ||||
Gain on Commodity Derivative Instruments | 392,942 | — | 392,942 | ||||||||
Coal Sales | 1,657,865 | (247,546 | ) | (a) | 1,410,319 | ||||||
Other Outside Sales | 30,967 | — | 30,967 | ||||||||
Production Royalty Interests and Purchased Gas Sales | 59,631 | — | 59,631 | ||||||||
Freight-Outside Coal | 25,597 | (1,584 | ) | (a) | 24,013 | ||||||
Miscellaneous Other Income | 145,968 | (29 | ) | (a) | 145,939 | ||||||
Gain on Sale of Assets | 74,510 | (129 | ) | (a) | 74,381 | ||||||
Total Revenue and Other Income | 3,114,401 | (247,750 | ) | 2,866,651 | |||||||
Costs and Expenses: | |||||||||||
Exploration and Production Costs | |||||||||||
Lease Operating Expense | 98,997 | — | 98,997 | ||||||||
Transportation, Gathering and Compression | 355,923 | — | 355,923 | ||||||||
Production, Ad Valorem, and Other Fees | 30,438 | — | 30,438 | ||||||||
Direct Administrative and Selling | 46,192 | — | 46,192 | ||||||||
Depreciation, Depletion and Amortization | 370,374 | — | 370,374 | ||||||||
Exploration and Production Related Other Costs | 10,119 | — | 10,119 | ||||||||
Production Royalty Interests and Purchased Gas Costs | 46,544 | — | 46,544 | ||||||||
Other Corporate Expenses | 90,583 | — | 90,583 | ||||||||
Impairment of Exploration and Production Properties | 828,905 | — | 828,905 | ||||||||
General and Administrative | 54,244 | — | 54,244 | ||||||||
Total Exploration and Production Costs | 1,932,319 | — | 1,932,319 | ||||||||
Coal Costs | |||||||||||
Operating and Other Costs | 863,199 | (155,357 | ) | (a) | 707,842 | ||||||
Royalties and Production Taxes | 78,844 | (13,751 | ) | (a) | 65,093 | ||||||
Direct Administrative and Selling | 33,476 | (4,680 | ) | (a) | 28,796 | ||||||
Depreciation, Depletion and Amortization | 279,209 | (48,995 | ) | (a) | 230,214 | ||||||
Freight Expense | 25,597 | (1,584 | ) | (a) | 24,013 | ||||||
General and Administrative Costs | 29,836 | (4,202 | ) | (a) | 25,634 | ||||||
Other Corporate Expenses | 39,687 | (10,257 | ) | (a) | 29,430 | ||||||
Total Coal Costs | 1,349,848 | (238,826 | ) | 1,111,022 | |||||||
Other Costs | |||||||||||
Miscellaneous Operating Expense | 64,096 | — | 64,096 | ||||||||
General and Administrative Costs | — | — | — | ||||||||
Depreciation, Depletion and Amortization | 18 | — | 18 | ||||||||
Loss on Debt Extinguishment | 67,751 | — | 67,751 | ||||||||
Interest Expense | 199,269 | (8,105 | ) | (c) | 191,164 | ||||||
Total Other Costs | 331,134 | (8,105 | ) | 323,029 | |||||||
Total Costs and Expenses | 3,613,301 | (246,931 | ) | 3,366,370 | |||||||
(Loss) Earnings Before Income Tax | (498,900 | ) | (819 | ) | (499,719 | ) | |||||
Income Tax (Benefit) Expense | (134,425 | ) | 287 | (b) | (134,138 | ) | |||||
Net (Loss) Income | (364,475 | ) | (532 | ) | (365,581 | ) | |||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 10,410 | — | 10,410 | ||||||||
Net (Loss) Income Attributable to CONSOL Energy Shareholders | $ | (374,885 | ) | $ | (532 | ) | $ | (375,417 | ) |
(Dollars in thousands, except per share data) | As Reported | Pro Forma | |||||||
(Loss) Earnings Per Share: | |||||||||
Basic | $ | (1.64 | ) | $ | (1.64 | ) | |||
Dilutive | $ | (1.64 | ) | $ | (1.64 | ) |
As Reported | Pro Forma Adjustments | Pro Forma | |||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and Cash Equivalents | $ | 72,578 | $ | 402,799 | (d) | $ | 475,377 | ||||
(402,799 | ) | (g) | |||||||||
Accounts and Notes Receivable: | |||||||||||
Trade | 200,508 | 200,508 | |||||||||
Other Receivables | 122,095 | (213 | ) | (e) | 121,882 | ||||||
Inventories | 97,438 | (13,764 | ) | (e) | 83,674 | ||||||
Recoverable Income Taxes | 13,887 | — | 13,887 | ||||||||
Prepaid Expenses | 298,257 | (928 | ) | (e) | 297,329 | ||||||
Total Current Assets | 804,763 | (14,905 | ) | 789,858 | |||||||
Property, Plant and Equipment: | |||||||||||
Property, Plant and Equipment | 15,574,946 | (978,994 | ) | (e) | 14,595,952 | ||||||
Less—Accumulated Depreciation, Depletion and Amortization | 5,905,569 | 509,274 | (e) | 6,414,843 | |||||||
Total Property, Plant and Equipment—Net | 9,669,377 | (469,720 | ) | 9,199,657 | |||||||
Other Assets: | |||||||||||
Investment in Affiliates | 237,330 | — | 237,330 | ||||||||
Other | 218,432 | 21,157 | (e)/(d) | 239,589 | |||||||
Total Other Assets | 455,762 | 21,157 | 476,919 | ||||||||
TOTAL ASSETS | $ | 10,929,902 | $ | (463,468 | ) | $ | 10,466,434 |
As Reported | Pro Forma Adjustments | Pro Forma | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Accounts Payable | $ | 271,394 | $ | — | $ | 271,394 | |||||
Current Portion of Long-Term Debt | 6,650 | (76 | ) | (e) | 6,574 | ||||||
Short-Term Notes Payable | 952,000 | (402,799 | ) | (g) | 549,201 | ||||||
Other Accrued Liabilities | 450,893 | (3,840 | ) | (e)/(h) | 447,053 | ||||||
Total Current Liabilities | 1,680,937 | (406,715 | ) | 1,274,222 | |||||||
Long-Term Debt: | |||||||||||
Long-Term Debt | 2,712,911 | — | 2,712,911 | ||||||||
Capital Lease Obligations | 35,294 | (375 | ) | (e) | 34,919 | ||||||
Total Long-Term Debt | 2,748,205 | (375 | ) | 2,747,830 | |||||||
Deferred Credits and Other Liabilities: | |||||||||||
Deferred Income Taxes | 74,629 | — | 74,629 | ||||||||
Postretirement Benefits Other Than Pensions | 630,892 | — | 630,892 | ||||||||
Pneumoconiosis Benefits | 113,032 | — | 113,032 | ||||||||
Mine Closing | 299,280 | (9,485 | ) | (e) | 289,795 | ||||||
Gas Well Closing | 164,634 | (1,385 | ) | (e) | 163,249 | ||||||
Workers’ Compensation | 69,812 | (1,218 | ) | (e) | 68,594 | ||||||
Salary Retirement | 91,596 | — | 91,596 | ||||||||
Reclamation | 34,150 | — | 34,150 | ||||||||
Other | 166,959 | — | 166,959 | ||||||||
Total Deferred Credits and Other Liabilities | 1,644,984 | (12,088 | ) | 1,632,896 | |||||||
TOTAL LIABILITIES | 6,074,126 | (419,178 | ) | 5,654,948 | |||||||
Stockholders’ Equity: | |||||||||||
Common Stock, $0.01 Par Value; 500,000,000 Shares Authorized, 229,054,236 Issued and Outstanding at December 31, 2015; 230,265,463 Issued and Outstanding at December 31, 2014 | 2,294 | — | 2,294 | ||||||||
Capital in Excess of Par Value | 2,435,497 | — | 2,435,497 | ||||||||
Preferred Stock, 15,000,000 Shares Authorized, None Issued and Outstanding | — | — | — | ||||||||
Retained Earnings | 2,579,834 | (44,765 | ) | (f) | 2,535,069 | ||||||
Accumulated Other Comprehensive Loss | (315,598 | ) | 475 | (e) | (315,123 | ) | |||||
Common Stock in Treasury, at Cost—No Shares at December 31, 2015 and 2014 | — | — | — | ||||||||
Total CONSOL Energy Inc. Stockholders’ Equity | 4,702,027 | (44,290 | ) | 4,657,737 | |||||||
Noncontrolling Interest | 153,749 | — | 153,749 | ||||||||
TOTAL EQUITY | 4,855,776 | (44,290 | ) | 4,811,486 | |||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,929,902 | $ | (463,468 | ) | $ | 10,466,434 |
1. | Basis of Presentation |
2. | Proforma Adjustments and Assumptions |
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