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 | 47-3445032 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Page | ||
Part I. Financial Information | ||
Item 1. | Financial Statements | |
Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 | ||
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016 | ||
Consolidated Balance Sheets at March 31, 2017 and December 31, 2016 | ||
Consolidated Statement of Partners' Capital for the three months ended March 31, 2017 | ||
Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 | ||
Notes to the Consolidated Financial Statements | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 4. | ||
Item 6. | ||
• | “Class A Preferred Units” means the convertible preferred units representing limited partner interests in CNX Coal Resources LP. The Partnership issued 3,956,496 Class A Preferred Units to CONSOL Energy on September 30, 2016. Key terms of the Class A Preferred Units include the following: |
▪ | Distributions: Distributions on each outstanding Class A Preferred Unit will be cumulative, and will accumulate at 11% per annum (the “Class A Preferred Unit Distribution Rate”) for each calendar quarter beginning with the quarter ending December 31, 2016 until such time as the Partnership pays the full cumulative Class A Preferred Unit distribution in respect of such Class A Preferred Unit with respect to such calendar quarter or such Class A Preferred Unit is converted in accordance with the Partnership Agreement (as defined herein), whether or not such Class A Preferred distributions have been declared. Subject to certain exceptions, a holder of Class A Preferred Units (currently, CONSOL Energy) will be entitled to receive Class A Preferred distributions out of any assets of the Partnership legally available for the payment of distributions at the Class A Preferred Unit Distribution Rate when, as, and if declared by the Board of Directors of our general partner to be paid by the Partnership in accordance with the Partnership Agreement, will be paid quarterly, in arrears, at the election of the Partnership either in additional Class A Preferred Units or in cash; |
▪ | Voting: Holders of Class A Preferred Units will have such voting rights as if their Class A Preferred Units were converted, on a one-for-one basis, into common units and will vote together with the holders of common units as a single class. Holders of Class A Preferred Units will be entitled to vote as a separate class on any matter that adversely affects the rights, privileges or preferences of the Class A Preferred Units in any material respect or as required by applicable law or regulation; |
▪ | Conversion at the Election of the Holder: Class A Units are convertible, at the election of the holder, into common units on a one-for-one basis (i) at any time after September 30, 2017, (ii) with respect to the Partnership’s dissolution or liquidation and (iii) with respect to certain change of control events as described in the Partnership Agreement; |
▪ | Conversion at the Election of the Partnership: All, but not less than all, of the outstanding Class A Preferred Units are convertible, at the election of the Partnership, into common units on a one-for-one basis, on or after September 30, 2019; provided, that (i) no “Class A Preferred Unit Payment Default,” arising from the Partnership’s failure to pay in full any Class A Preferred Unit distribution, has occurred and is continuing; (ii) the volume-weighted average trading price of the common units over the 15-day trading period ending on the trading day immediately prior to the date of the conversion notice is equal to or greater than 140% of the issue price of the Class A Preferred Units; and (iii) the average trading volume is at least 35,000 common units (subject to customary anti-dilution adjustments) with respect to any 20 trading days within the 30-trading day period ending on the trading day immediately prior to the date of the conversion notice; |
▪ | Restrictions on Transfer: Prior to September 30, 2017, other than transfers to affiliates, CONSOL Energy may not transfer any Class A Preferred Units without the approval of the Partnership; |
• | “CNX Coal Finance” refers to CNX Coal Finance Corporation, a Delaware corporation and a direct, wholly-owned subsidiary of the Partnership; |
• | “CNX Coal Resources LP,” our "Partnership,” “we,” “our,” “us” and similar terms, when used in a historical context, refer to CNX Coal Resources LP, a Delaware limited partnership, and its subsidiaries; |
• | “CNX Operating” refers to CNX Operating LLC, a Delaware limited liability company and a direct, wholly-owned subsidiary of the Partnership; |
• | “CNX Thermal Holdings” refers to CNX Thermal Holdings LLC, a Delaware limited liability company and a direct, wholly-owned subsidiary of CNX Operating; subsequent to the PA Mining Acquisition, CNX Thermal Holdings owns a 25% undivided interest in the assets, liabilities, revenues and expenses comprising the Pennsylvania Mining Complex; |
• | the “common units” refer to the limited partner interests in CNX Coal Resources LP. The holders of common units are entitled to participate in partnership distributions and are entitled to exercise the rights or privileges of limited partners under the Partnership Agreement. The common units are listed on the New York Stock Exchange, under the symbol “CNXC”; |
• | "Concurrent Private Placement” refers to the issuance (concurrent with the IPO) of 5,000,000 common units to Greenlight Capital pursuant to a common unit purchase agreement; |
• | “CONSOL Energy” and our “sponsor” refer to CONSOL Energy Inc., a Delaware corporation and the parent of our general partner, and its subsidiaries other than our general partner, us and our subsidiaries; |
• | “CPCC” refers to CONSOL Pennsylvania Coal Company LLC, a Delaware limited liability company and a wholly-owned subsidiary of CONSOL Energy; |
• | “Conrhein” refers to Conrhein Coal Company, a Pennsylvania general partnership and a wholly-owned subsidiary of CONSOL Energy; |
• | our “general partner” refers to CNX Coal Resources GP LLC, a Delaware limited liability company and our general partner; |
• | “Greenlight Capital” refers to certain funds managed by Greenlight Capital, Inc. and its affiliates; |
• | "IPO" refers to the completion of the Partnership's initial public offering on July 7, 2015; |
• | “omnibus agreement” refers to the Omnibus Agreement dated July 7, 2015, as replaced as the Amended and Restated Agreement of Limited Partnership of the Partnership dated as of September 30, 2016; |
• | "PA Mining Acquisition" refers to a transaction which closed on September 30, 2016, where the Partnership and its wholly owned subsidiary, CNX Thermal, entered into a Contribution Agreement with CONSOL Energy, CPCC and Conrhein, under which CNX Thermal Holdings acquired an undivided 6.25% of the contributing parties’ right, title and interest in and to the Pennsylvania Mining Complex (which represents an aggregate 5% undivided interest in and to the Pennsylvania Mining Complex); |
• | the “Partnership Agreement” refers to the First Amended and Restated Agreement of Limited Partnership of the Partnership, as replaced by the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated as of September 30, 2016; |
• | the “Pennsylvania Mining Complex” refers to the coal mines, coal reserves and related assets and operations, located primarily in southwestern Pennsylvania, owned 80% by CONSOL Energy and 20% by CNX Thermal Holdings, prior to the PA Mining Acquisition; and subsequent to the PA Mining Acquisition, owned 75% by CONSOL Energy, and its subsidiaries and 25% by CNX Thermal Holdings; and |
• | the “preferred units” refer to any limited partnership interests, other than the common units and subordinated units, issued in accordance with the Partnership Agreement that, as determined by our general partner, have special voting rights to which our common units are not entitled. As of the date of this Quarterly Report on Form 10-Q, the only outstanding preferred units are the Class A Preferred Units. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Coal Revenue | $ | 79,112 | $ | 56,541 | |||
Freight Revenue | 3,070 | 3,269 | |||||
Other Income | 1,098 | (12 | ) | ||||
Total Revenue and Other Income | 83,280 | 59,798 | |||||
Operating and Other Costs 1 | 49,883 | 38,490 | |||||
Depreciation, Depletion and Amortization | 10,521 | 10,317 | |||||
Freight Expense | 3,070 | 3,269 | |||||
Selling, General and Administrative Expenses 2 | 3,283 | 1,928 | |||||
Interest Expense | 2,457 | 1,978 | |||||
Total Costs | 69,214 | 55,982 | |||||
Net Income | $ | 14,066 | $ | 3,816 | |||
Less: Net Income Attributable to CONSOL Energy Pre-PA Mining Acquisition | — | 1,317 | |||||
Net Income Attributable to General and Limited Partner Ownership Interest in CNX Coal Resources | $ | 14,066 | $ | 2,499 | |||
Less: General Partner Interest in Net Income | 243 | 51 | |||||
Less: Net Income Allocable to Class A Preferred Units | 1,851 | — | |||||
Net Income Allocable to Limited Partner Units - Basic | 11,972 | 2,448 | |||||
Add: Net Income Allocable to Class A Preferred Units | 1,851 | — | |||||
Net Income Allocable to Limited Partner Units - Diluted | $ | 13,823 | $ | 2,448 | |||
Net Income per Limited Partner Unit - Basic | $ | 0.51 | $ | 0.11 | |||
Net Income per Limited Partner Unit - Diluted | $ | 0.50 | $ | 0.11 | |||
Limited Partner Units Outstanding - Basic | 23,292,099 | 23,222,134 | |||||
Limited Partner Units Outstanding - Diluted | 27,379,800 | 23,223,540 | |||||
Cash Distributions Declared per Unit 3 | |||||||
Common Unit | $ | 0.5125 | $ | 0.5125 | |||
Subordinated Unit | $ | 0.5125 | $ | 0.5125 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net Income | $ | 14,066 | $ | 3,816 | |||
Recognized Net Actuarial Gain | (39 | ) | (25 | ) | |||
Other Comprehensive Loss | (39 | ) | (25 | ) | |||
Comprehensive Income | $ | 14,027 | $ | 3,791 |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash | $ | 6,534 | $ | 9,785 | |||
Trade Receivables | 25,028 | 23,418 | |||||
Other Receivables | 1,267 | 515 | |||||
Inventories | 12,716 | 11,491 | |||||
Prepaid Expenses | 3,517 | 3,512 | |||||
Total Current Assets | 49,062 | 48,721 | |||||
Property, Plant and Equipment: | |||||||
Property, Plant and Equipment | 879,689 | 876,690 | |||||
Less—Accumulated Depreciation, Depletion and Amortization | 452,527 | 442,178 | |||||
Total Property, Plant and Equipment—Net | 427,162 | 434,512 | |||||
Other Assets: | |||||||
Other | 19,341 | 21,063 | |||||
Total Other Assets | 19,341 | 21,063 | |||||
TOTAL ASSETS | $ | 495,565 | $ | 504,296 |
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 15,221 | $ | 18,797 | |||
Accounts Payable—Related Party | 1,764 | 1,666 | |||||
Other Accrued Liabilities | 42,461 | 44,318 | |||||
Total Current Liabilities | 59,446 | 64,781 | |||||
Long-Term Debt: | |||||||
Revolver, Net of Debt Issuance and Financing Fees | 194,068 | 197,843 | |||||
Capital Lease Obligations | 130 | 146 | |||||
Total Long-Term Debt | 194,198 | 197,989 | |||||
Other Liabilities: | |||||||
Pneumoconiosis Benefits | 2,336 | 2,057 | |||||
Workers’ Compensation | 3,036 | 3,090 | |||||
Asset Retirement Obligations | 9,490 | 9,346 | |||||
Other | 453 | 463 | |||||
Total Other Liabilities | 15,315 | 14,956 | |||||
TOTAL LIABILITIES | 268,959 | 277,726 | |||||
Partners' Capital: | |||||||
Class A Preferred Units (3,956,496 Units Outstanding at March 31, 2017 and December 31, 2016) | 69,151 | 69,151 | |||||
Common Units (11,718,635 Units Outstanding at March 31, 2017; 11,618,456 Units Outstanding at December 31, 2016) | 141,035 | 140,967 | |||||
Subordinated Units (11,611,067 Units Outstanding at March 31, 2017 and December 31, 2016) | (7,624 | ) | (7,631 | ) | |||
General Partner Interest | 12,274 | 12,274 | |||||
Accumulated Other Comprehensive Income | 11,770 | 11,809 | |||||
Total Partners' Capital | 226,606 | 226,570 | |||||
TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ | 495,565 | $ | 504,296 |
Limited Partners | |||||||||||||||||||||||
Class A Preferred Units | Common | Subordinated | General Partner | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||
Balance at December 31, 2016 | $ | 69,151 | $ | 140,967 | $ | (7,631 | ) | $ | 12,274 | $ | 11,809 | $ | 226,570 | ||||||||||
Net Income | 1,851 | 6,014 | 5,958 | 243 | — | 14,066 | |||||||||||||||||
Unitholder Distributions | (1,851 | ) | (6,005 | ) | (5,951 | ) | (243 | ) | — | (14,050 | ) | ||||||||||||
Unit Based Compensation | — | 866 | — | — | — | 866 | |||||||||||||||||
Tax Cost from Unit Based Compensation | — | (807 | ) | — | — | — | (807 | ) | |||||||||||||||
Actuarially Determined Long-Term Liability Adjustments | — | — | — | — | (39 | ) | (39 | ) | |||||||||||||||
Balance at March 31, 2017 | $ | 69,151 | $ | 141,035 | $ | (7,624 | ) | $ | 12,274 | $ | 11,770 | $ | 226,606 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Cash Flows from Operating Activities: | |||||||
Net Income | $ | 14,066 | $ | 3,816 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation, Depletion and Amortization | 10,521 | 10,317 | |||||
Loss on Sale of Assets | 3 | 13 | |||||
Unit Based Compensation | 866 | 308 | |||||
Other Adjustments to Net Income | 224 | 220 | |||||
Changes in Operating Assets: | |||||||
Accounts and Notes Receivable | (2,362 | ) | (4,527 | ) | |||
Inventories | (1,225 | ) | (1,388 | ) | |||
Prepaid Expenses | (5 | ) | 563 | ||||
Changes in Other Assets | 268 | (2,428 | ) | ||||
Changes in Operating Liabilities: | |||||||
Accounts Payable | (3,069 | ) | (954 | ) | |||
Accounts Payable—Related Party | 98 | (2,670 | ) | ||||
Other Operating Liabilities | (1,860 | ) | 60 | ||||
Changes in Other Liabilities | 137 | 181 | |||||
Net Cash Provided by Operating Activities | 17,662 | 3,511 | |||||
Cash Flows from Investing Activities: | |||||||
Capital Expenditures | (2,030 | ) | (3,225 | ) | |||
Proceeds from Sales of Assets | — | 20 | |||||
Net Cash Used in Investing Activities | (2,030 | ) | (3,205 | ) | |||
Cash Flows from Financing Activities: | |||||||
Payments on Miscellaneous Borrowings | (26 | ) | (12 | ) | |||
Net (Payments on) Proceeds from Revolver | (4,000 | ) | 15,000 | ||||
Payments for Unitholder Distributions | (14,050 | ) | (12,144 | ) | |||
Tax Cost from Unit-Based Compensation | (807 | ) | — | ||||
Net Change in Parent Advances | — | (550 | ) | ||||
Net Cash (Used in) Provided by Financing Activities | (18,883 | ) | 2,294 | ||||
Net (Decrease) Increase in Cash | (3,251 | ) | 2,600 | ||||
Cash at Beginning of Period | 9,785 | 6,534 | |||||
Cash at End of Period | $ | 6,534 | $ | 9,134 |
• | In March 2016, the FASB updated Topic 606 by issuing ASU 2016-08 "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which clarifies how an entity determines whether it is a principal or an agent for goods or services promised to a customer as well as the nature of the goods or services promised to their customers. |
• | In April 2016, the FASB issued Update 2016-10 - Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which seeks to address implementation issues in the areas of identifying performance obligations and licensing. |
• | In May 2016, the FASB issued Update 2016-12 - Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients. The update, which was issued in response to feedback received by the FASB-IASB joint revenue recognition transition resource group (TRG), seeks to address implementation issues in the areas of collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. |
• | In December 2016, the FASB issued Updated 2016-20 - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. This update applies technical corrections or improvements specific to Update 2014-09. The technical corrections seek to address implementation issues in the areas of loan guarantee fees, contract costs - impairment testing, contract costs - interaction of impairment testing with guidance in other topics, provisions for losses on construction-type and production-type contracts, the scope of Topic 606, disclosure of remaining performance obligations, disclosure of prior-period performance obligations, contract modifications example, contract asset versus receivable, refund liability, advertising costs, fixed-odds wagering contracts in the casino industry, and cost capitalization for advisers to private and public funds. |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net Income | $ | 14,066 | $ | 3,816 | ||||
Less: Net Income Attributable to CONSOL Energy, Pre-PA Mining Acquisition | — | 1,317 | ||||||
Less: General Partner Interest in Net Income | 243 | 51 | ||||||
Less: Net Income Allocable to Class A Preferred Units | 1,851 | — | ||||||
Net Income Allocable to Limited Partner Units - Basic | $ | 11,972 | $ | 2,448 | ||||
Net Income Allocable to Common Units - Basic | $ | 6,014 | $ | 1,224 | ||||
Add: Net Income Allocable to Class A Preferred Units | 1,851 | — | ||||||
Net Income Allocable to Common Units - Diluted | $ | 7,865 | $ | 1,224 | ||||
Net Income Allocable to Subordinated Units - Basic & Diluted | $ | 5,958 | $ | 1,224 | ||||
Weighted Average Limited Partner Units Outstanding - Basic | ||||||||
Common Units | 11,681,032 | 11,611,067 | ||||||
Subordinated Units | 11,611,067 | 11,611,067 | ||||||
Total | 23,292,099 | 23,222,134 | ||||||
Weighted Average Limited Partner Units Outstanding - Diluted | ||||||||
Common Units | 15,768,733 | 11,612,473 | ||||||
Subordinated Units | 11,611,067 | 11,611,067 | ||||||
Total | 27,379,800 | 23,223,540 | ||||||
Net Income Per Limited Partner Unit - Basic | ||||||||
Common Units | $ | 0.51 | $ | 0.11 | ||||
Subordinated Units | $ | 0.51 | $ | 0.11 | ||||
Net Income Per Limited Partner Unit - Basic | $ | 0.51 | $ | 0.11 | ||||
Net Income Per Limited Partner Unit - Diluted | ||||||||
Common Units | $ | 0.50 | $ | 0.11 | ||||
Subordinated Units | $ | 0.51 | $ | 0.11 | ||||
Net Income Per Limited Partner Unit - Diluted | $ | 0.50 | $ | 0.11 |
March 31, 2017 | December 31, 2016 | ||||||
Coal | $ | 3,156 | $ | 1,950 | |||
Supplies | 9,560 | 9,541 | |||||
Total Inventories | $ | 12,716 | $ | 11,491 |
March 31, 2017 | December 31, 2016 | ||||||
Coal and other plant and equipment | $ | 579,577 | $ | 576,917 | |||
Coal properties and surface lands | 121,383 | 121,241 | |||||
Airshafts | 93,164 | 92,938 | |||||
Mine development | 81,538 | 81,538 | |||||
Coal advance mining royalties | 4,027 | 4,056 | |||||
Total property, plant and equipment | 879,689 | 876,690 | |||||
Less: Accumulated depreciation, depletion and amortization | 452,527 | 442,178 | |||||
Total Net Property, Plant and Equipment | $ | 427,162 | $ | 434,512 |
March 31, 2017 | December 31, 2016 | ||||||
Subsidence liability | $ | 27,273 | $ | 26,887 | |||
Accrued payroll and benefits | 3,753 | 4,052 | |||||
Equipment lease rental | 2,495 | 2,442 | |||||
Litigation | 2,257 | 2,507 | |||||
Accrued other taxes | 1,665 | 2,504 | |||||
Other | 2,770 | 3,683 | |||||
Current portion of long-term liabilities: | |||||||
Workers' compensation | 1,391 | 1,380 | |||||
Asset retirement obligations | 591 | 591 | |||||
Long-term disability | 114 | 128 | |||||
Capital leases | 91 | 88 | |||||
Pneumoconiosis benefits | 61 | 56 | |||||
Total Other Accrued Liabilities | $ | 42,461 | $ | 44,318 |
March 31, 2017 | December 31, 2016 | ||||||
Revolver, carrying amount | $ | 197,000 | $ | 201,000 | |||
Less: Debt issuance and financing fees | 2,932 | 3,157 | |||||
Revolver, net | $ | 194,068 | $ | 197,843 |
• | The highest of (i) PNC Bank N.A.’s prime rate, (ii) the federal funds open rate plus 0.50%, and (iii) the one-month LIBOR rate plus 1.0%, in each case, plus a margin ranging from 1.50% to 2.50% depending on the total leverage ratio; or |
• | the LIBOR rate plus a margin ranging from 2.50% to 3.50% depending on the total leverage ratio. |
CWP | Workers' Compensation | ||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 283 | $ | 191 | $ | 320 | $ | 325 | |||||||
Interest cost | 18 | 18 | 33 | 33 | |||||||||||
Amortization of actuarial gain | (34 | ) | (22 | ) | (8 | ) | (5 | ) | |||||||
State administrative fees and insurance bond premiums | — | — | 57 | 34 | |||||||||||
Net periodic benefit cost | $ | 267 | $ | 187 | $ | 402 | $ | 387 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Revolving Credit Facility | $ | 197,000 | $ | 197,000 | $ | 201,000 | $ | 201,000 |
• | all tax liabilities attributable to the assets contributed to the Partnership in connection with the PA Mining Acquisition (the “First Drop Down Assets”) arising prior to the closing of the PA Mining Acquisition or otherwise related to the Contributing Parties’ contribution of the First Drop Down Assets to the Partnership in connection with the PA Mining Acquisition; and |
• | certain operational and title matters related to the First Drop Down Assets, including the failure to have (i) the ability to operate under any governmental license, permit or approval or (ii) such valid title to the First Drop Down Assets, in each case, that is necessary for the Partnership to own or operate the First Drop Down Assets in substantially the same manner as owned or operated by the Contributing Parties prior to the Acquisition. |
• | the use, ownership or operation of the First Drop Down Assets; and |
• | the Partnership’s operation of the First Drop Down Assets under permits and/or bonds, letters of credit, guarantees, deposits and other pre-payments held by CONSOL Energy. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating and Other Costs | $ | 872 | $ | 1,266 | |||
Selling, General and Administrative Expenses | 717 | 1,116 | |||||
Total Service from CONSOL Energy | $ | 1,589 | $ | 2,382 |
Number of Units | Weighted Average Grant Date Fair Value per Unit | |||||
Nonvested at December 31, 2016 | 381,934 | $ | 7.90 | |||
Granted | 383,478 | $ | 18.94 | |||
Vested | (142,421 | ) | $ | 7.96 | ||
Forfeited | (10,389 | ) | $ | 12.13 | ||
Nonvested at March 31, 2017 | 612,602 | $ | 10.18 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Total Costs | $ | 69,214 | $ | 55,982 | |||
Freight Expense | (3,070 | ) | (3,269 | ) | |||
Selling, General and Administrative Expenses | (3,283 | ) | (1,928 | ) | |||
Interest Expense | (2,457 | ) | (1,978 | ) | |||
Other Costs (Non-Production) | (1,493 | ) | (3,632 | ) | |||
Depreciation, Depletion and Amortization (Non-Production) | (550 | ) | (1,558 | ) | |||
Cost of Coal Sold | $ | 58,361 | $ | 43,617 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Total Coal Revenue | $ | 79,112 | $ | 56,541 | |||
Operating and Other Costs | 49,883 | 38,490 | |||||
Depreciation, Depletion and Amortization | 10,521 | 10,317 | |||||
Less: Other Costs (Non-Production) | (1,493 | ) | (3,632 | ) | |||
Less: Depreciation, Depletion and Amortization (Non-Production) | (550 | ) | (1,558 | ) | |||
Total Cost of Coal Sold | $ | 58,361 | $ | 43,617 | |||
Total Tons Sold | 1,690 | 1,315 | |||||
Average Sales Price Per Ton Sold | $ | 46.80 | $ | 42.99 | |||
Average Cost Per Ton Sold | 34.52 | 33.16 | |||||
Average Margin Per Ton Sold | 12.28 | 9.83 | |||||
Add: Total Depreciation, Depletion and Amortization Costs Per Ton Sold | 5.77 | 6.45 | |||||
Average Cash Margin Per Ton Sold | $ | 18.05 | $ | 16.28 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net Income | $ | 14,066 | $ | 3,816 | |||
Plus: | |||||||
Interest Expense | 2,457 | 1,978 | |||||
Depreciation, Depletion and Amortization | 10,521 | 10,317 | |||||
Unit Based Compensation | 866 | 308 | |||||
Adjusted EBITDA | $ | 27,910 | $ | 16,419 | |||
Less: | |||||||
Cash Interest | 2,161 | 1,967 | |||||
PA Mining Acquisition Adjusted EBITDA1 | — | 3,365 | |||||
Distributions to Preferred Units | 1,851 | — | |||||
Estimated Maintenance Capital Expenditures | 8,989 | 6,700 | |||||
Distributable Cash Flow | $ | 14,909 | $ | 4,387 | |||
Net Cash Provided by Operating Activities | $ | 17,662 | $ | 3,511 | |||
Less: | |||||||
Interest Expense | 2,457 | 1,978 | |||||
Other, Including Working Capital | (12,705 | ) | (14,886 | ) | |||
Adjusted EBITDA | $ | 27,910 | $ | 16,419 | |||
Less: | |||||||
Cash Interest | 2,161 | 1,967 | |||||
PA Mining Acquisition Adjusted EBITDA1 | — | 3,365 | |||||
Distributions to Preferred Units | 1,851 | — | |||||
Estimated Maintenance Capital Expenditures | 8,989 | 6,700 | |||||
Distributable Cash Flow | $ | 14,909 | $ | 4,387 |
For the Three Months Ended | |||||||||||
March 31, | |||||||||||
2017 | 2016 | Variance | |||||||||
(in thousands) | |||||||||||
Revenue: | |||||||||||
Coal Revenue | $ | 79,112 | $ | 56,541 | $ | 22,571 | |||||
Freight Revenue | 3,070 | 3,269 | (199 | ) | |||||||
Other Income | 1,098 | (12 | ) | 1,110 | |||||||
Total Revenue and Other Income | 83,280 | 59,798 | 23,482 | ||||||||
Cost of Coal Sold: | |||||||||||
Operating Costs | 48,390 | 34,858 | 13,532 | ||||||||
Depreciation, Depletion and Amortization | 9,971 | 8,759 | 1,212 | ||||||||
Total Cost of Coal Sold | 58,361 | 43,617 | 14,744 | ||||||||
Other Costs: | |||||||||||
Other Costs | 1,493 | 3,632 | (2,139 | ) | |||||||
Depreciation, Depletion and Amortization | 550 | 1,558 | (1,008 | ) | |||||||
Total Other Costs | 2,043 | 5,190 | (3,147 | ) | |||||||
Freight Expense | 3,070 | 3,269 | (199 | ) | |||||||
Selling, General and Administrative Expenses | 3,283 | 1,928 | 1,355 | ||||||||
Interest Expense | 2,457 | 1,978 | 479 | ||||||||
Total Costs | 69,214 | 55,982 | 13,232 | ||||||||
Net Income | $ | 14,066 | $ | 3,816 | $ | 10,250 | |||||
Adjusted EBITDA | $ | 27,910 | $ | 16,419 | $ | 11,491 | |||||
Distributable Cash Flow | $ | 14,909 | $ | 4,387 | $ | 10,522 |
Three Months Ended March 31, | |||||||||
Mine | 2017 | 2016 | Variance | ||||||
Bailey | 774 | 701 | 73 | ||||||
Enlow Fork | 675 | 629 | 46 | ||||||
Harvey | 278 | 28 | 250 | ||||||
Total | 1,727 | 1,358 | 369 |
Three Months Ended March 31, | |||||||||||
2017 | 2016 | Variance | |||||||||
Total Tons Sold (in thousands) | 1,690 | 1,315 | 375 | ||||||||
Average Sales Price Per Ton Sold | $ | 46.80 | $ | 42.99 | $ | 3.81 | |||||
Operating Costs Per Ton Sold (Cash Cost) | $ | 28.75 | $ | 26.71 | $ | 2.04 | |||||
Depreciation, Depletion and Amortization Per Ton Sold (Non-Cash Cost) | 5.77 | 6.45 | (0.68 | ) | |||||||
Total Costs Per Ton Sold | $ | 34.52 | $ | 33.16 | $ | 1.36 | |||||
Average Margin Per Ton Sold | $ | 12.28 | $ | 9.83 | $ | 2.45 | |||||
Add: Depreciation, Depletion and Amortization Costs Per Ton Sold | 5.77 | 6.45 | (0.68 | ) | |||||||
Average Cash Margin Per Ton Sold (1) | $ | 18.05 | $ | 16.28 | $ | 1.77 |
• | The highest of (i) PNC Bank N.A.’s prime rate, (ii) the federal funds open rate plus 0.50%, and (iii) the one-month LIBOR rate plus 1.0%, in each case, plus a margin ranging from 1.50% to 2.50% depending on the total leverage ratio; or |
• | the LIBOR rate plus a margin ranging from 2.50% to 3.50% depending on the total leverage ratio. |
Three Months Ended March 31, | |||||||||||
2017 | 2016 | Variance | |||||||||
(in thousands) | |||||||||||
Cash flows provided by operating activities | $ | 17,662 | $ | 3,511 | $ | 14,151 | |||||
Cash used in investing activities | $ | (2,030 | ) | $ | (3,205 | ) | $ | 1,175 | |||
Cash (used in) provided by financing activities | $ | (18,883 | ) | $ | 2,294 | $ | (21,177 | ) |
Three Months Ended March 31, | |||||||||||
2017 | 2016 | Variance | |||||||||
(in thousands) | |||||||||||
Building and Infrastructure | $ | 1,329 | $ | 1,855 | $ | (526 | ) | ||||
Equipment Purchases and Rebuilds | 389 | 561 | (172 | ) | |||||||
Refuse Storage Area | 71 | 215 | (144 | ) | |||||||
Water Treatment Systems | 37 | 123 | (86 | ) | |||||||
Other | 204 | 471 | (267 | ) | |||||||
Total Capital Expenditures | $ | 2,030 | $ | 3,225 | $ | (1,195 | ) |
Exhibits | Description | Method of Filing |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002 | Filed herewith |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith |
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. | Filed herewith |
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. | Filed herewith |
95 | Mine Safety and Health Administration Safety Data. | Filed herewith |
101 | Interactive Data File (Form 10-Q for the quarterly period ended March 31, 2017, furnished in XBRL). | Filed herewith |
CNX Coal Resources LP | |||
By: | CNX Coal Resources GP LLC, its general partner | ||
By: | /s/ JAMES A. BROCK | ||
James A. Brock | |||
Chief Executive Officer (Duly Authorized Officer and Principal Executive Officer) | |||
By: | CNX Coal Resources GP LLC, its general partner | ||
By: | /s/ LORRAINE L. RITTER | ||
Lorraine L. Ritter | |||
Chief Financial Officer and Chief Accounting Officer (Duly Authorized Officer and Principal Financial Officer and Principal Accounting Officer) |
1. | I have reviewed this report on Form 10-Q of CNX Coal Resources LP.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q of CNX Coal Resources LP.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Received | ||||||||||||||||||||||||||
Notice | ||||||||||||||||||||||||||
Received | of | Legal | ||||||||||||||||||||||||
Total Dollar | Total | Notice of | Potential | Actions | ||||||||||||||||||||||
Section | Value of | Number | Pattern of | to have | Pending | Legal | Legal | |||||||||||||||||||
Section | 104(d) | MSHA | of | Violations | Pattern | as of | Actions | Actions | ||||||||||||||||||
Mine or Operating | 104 | Section | Citations | Section | Section | Assessments | Mining | Under | Under | Last | Initiated | Resolved | ||||||||||||||
Name/MSHA | S&S | 104(b) | and | 110(b)(2) | 107(a) | Proposed | Related | Section | Section | Day of | During | During | ||||||||||||||
Identification Number | Citations | Orders | Orders | Violations | Orders | (In Dollars) | Fatalities | 104(e) | 104(e) | Period (1) | Period | Period | ||||||||||||||
Active Operations | ||||||||||||||||||||||||||
Bailey | 36-07230 | 15 | — | — | — | — | 31,377 | — | No | No | 26 | 3 | 1 | |||||||||||||
Enlow Fork | 36-07416 | 28 | — | — | — | — | 89,683 | — | No | No | 23 | 3 | 1 | |||||||||||||
Harvey | 36-10045 | 7 | — | — | — | — | 21,872 | — | No | No | 13 | 3 | 3 | |||||||||||||
50 | — | — | — | — | 142,932 | — | 62 | 9 | 5 |
Mine or Operating Name/MSHA Identification Number | Contests of Citations, Orders (as of 3.31.17) (a) | Contests of Proposed Penalties (as of 3.31.17) (b) | Complaints for Compensation (as of 3.31.17) (c) | Complaints of Discharge, Discrimination or Interference (as of 3.31.17) (d) | Applications for Temporary Relief (as of 3.31.17) (e) | Appeals of Judges' Decisions or Order (as of 3.31.17) (f) | ||||||||||
Dockets | Citations | |||||||||||||||
Active Operations | ||||||||||||||||
Bailey | 36-07230 | — | 26 | 159 | — | — | — | — | ||||||||
Enlow Fork | 36-07416 | — | 23 | 229 | — | — | — | 1 | ||||||||
Harvey | 36-10045 | — | 13 | 47 | — | — | — | — | ||||||||
— | 62 | 435 | — | — | — | 1 |
Document and Equity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 30, 2017 |
|
Document Information [Line Items] | ||
Entity Registrant Name | CNX Coal Resources LP | |
Entity Central Index Key | 0001637558 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,718,635 | |
Subordinated Units | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,611,067 | |
Preferred Units | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,956,496 |
Consolidated Statements of Operations (Parenthetical) - CONSOL Energy - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Expenses from transactions with related party | $ 1,589 | $ 2,382 |
Operating and Other Costs | ||
Expenses from transactions with related party | 872 | 1,266 |
General And Administrative Expenses | ||
Expenses from transactions with related party | $ 717 | $ 1,116 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 14,066 | $ 3,816 |
Other Comprehensive Income (Loss): | ||
Recognized Net Actuarial Gain | (39) | (25) |
Other Comprehensive Loss | (39) | (25) |
Comprehensive Income | $ 14,027 | $ 3,791 |
Consolidated Balance Sheets - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Current Assets: | ||
Cash | $ 6,534 | $ 9,785 |
Trade Receivables | 25,028 | 23,418 |
Other Receivables | 1,267 | 515 |
Inventories | 12,716 | 11,491 |
Prepaid Expenses | 3,517 | 3,512 |
Total Current Assets | 49,062 | 48,721 |
Property, Plant and Equipment: | ||
Property, Plant and Equipment | 879,689 | 876,690 |
Less—Accumulated Depreciation, Depletion and Amortization | 452,527 | 442,178 |
Total Property, Plant and Equipment—Net | 427,162 | 434,512 |
Other Assets: | ||
Other | 19,341 | 21,063 |
Total Other Assets | 19,341 | 21,063 |
TOTAL ASSETS | 495,565 | 504,296 |
Current Liabilities: | ||
Accounts Payable | 15,221 | 18,797 |
Accounts Payable—Related Party | 1,764 | 1,666 |
Other Accrued Liabilities | 42,461 | 44,318 |
Total Current Liabilities | 59,446 | 64,781 |
Long-Term Debt: | ||
Revolver, Net of Debt Issuance and Financing Fees | 194,068 | 197,843 |
Capital Lease Obligations | 130 | 146 |
Total Long-Term Debt | 194,198 | 197,989 |
Other Liabilities: | ||
Pneumoconiosis Benefits | 2,336 | 2,057 |
Workers’ Compensation | 3,036 | 3,090 |
Asset Retirement Obligations | 9,490 | 9,346 |
Other | 453 | 463 |
Total Other Liabilities | 15,315 | 14,956 |
TOTAL LIABILITIES | 268,959 | 277,726 |
Partners' Capital: | ||
General Partner Interest | 12,274 | 12,274 |
Accumulated Other Comprehensive Income | 11,770 | 11,809 |
Total Partners' Capital | 226,606 | 226,570 |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | 495,565 | 504,296 |
Preferred Units | ||
Partners' Capital: | ||
Limited Partners' Capital Account | 69,151 | 69,151 |
Common Units | ||
Partners' Capital: | ||
Limited Partners' Capital Account | 141,035 | 140,967 |
Subordinated Member Units | ||
Partners' Capital: | ||
Limited Partners' Capital Account | $ (7,624) | $ (7,631) |
Consolidated Balance Sheets (Parenthetical) - shares |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Preferred Units | ||
Limited Partners' Units Outstanding (in shares) | 3,956,496 | 0 |
Common Stock | ||
Limited Partners' Units Outstanding (in shares) | 11,618,456 | 11,611,067 |
Subordinated Member Units | ||
Limited Partners' Units Outstanding (in shares) | 11,611,067 | 11,611,067 |
Consolidated Statement of Partners' Capital - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands |
Total |
Accumulated Other Comprehensive Income |
Preferred Partner |
Limited Partners
Common Stock
|
Limited Partners
Subordinated Member Units
|
General Partner |
---|---|---|---|---|---|---|
Balance at December 31, 2016 at Dec. 31, 2016 | $ 226,570 | $ 11,809 | $ 69,151 | $ 140,967 | $ (7,631) | $ 12,274 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Net Income | 14,066 | 1,851 | 6,014 | 5,958 | 243 | |
Unitholder Distributions | (14,050) | (1,851) | (6,005) | (5,951) | (243) | |
Unit Based Compensation | 866 | |||||
Tax Cost from Unit Based Compensation | (807) | |||||
Actuarially Determined Long-Term Liability Adjustments | (39) | (39) | ||||
Balance at March 31, 2017 at Mar. 31, 2017 | $ 226,606 | $ 11,770 | $ 69,151 | $ 141,035 | $ (7,624) | $ 12,274 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Cash Flows [Abstract] | ||
Net Income | $ 14,066 | $ 3,816 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation, Depletion and Amortization | 10,521 | 10,317 |
Loss on Sale of Assets | 3 | 13 |
Unit Based Compensation | 866 | 308 |
Other Adjustments to Net Income | 224 | 220 |
Changes in Operating Assets: | ||
Accounts and Notes Receivable | (2,362) | (4,527) |
Inventories | (1,225) | (1,388) |
Prepaid Expenses | (5) | 563 |
Changes in Other Assets | 268 | (2,428) |
Changes in Operating Liabilities: | ||
Accounts Payable | (3,069) | (954) |
Accounts Payable—Related Party | 98 | (2,670) |
Other Operating Liabilities | (1,860) | 60 |
Changes in Other Liabilities | 137 | 181 |
Net Cash Provided by Operating Activities | 17,662 | 3,511 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (2,030) | (3,225) |
Proceeds from Sales of Assets | 0 | 20 |
Net Cash Used in Investing Activities | (2,030) | (3,205) |
Cash Flows from Financing Activities: | ||
Payments on Miscellaneous Borrowings | (26) | (12) |
Net (Payments on) Proceeds from Revolver | (4,000) | 15,000 |
Payments for Unitholder Distributions | (14,050) | (12,144) |
Tax Cost from Unit-Based Compensation | (807) | |
Net Change in Parent Advances | 0 | (550) |
Net Cash (Used in) Provided by Financing Activities | (18,883) | 2,294 |
Net (Decrease) Increase in Cash | (3,251) | 2,600 |
Cash at Beginning of Period | 9,785 | 6,534 |
Cash at End of Period | $ 6,534 | $ 9,134 |
Basis of Presentation |
3 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation | BASIS OF PRESENTATION: The accompanying unaudited consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP 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. On September 30, 2016, the Partnership and its wholly owned subsidiary, CNX Thermal, entered into a Contribution Agreement (the “Contribution Agreement”) with CONSOL Energy, CPCC and Conrhein and together with CPCC, (the “Contributing Parties”), under which CNX Thermal acquired an undivided 6.25% of the Contributing Parties’ right, title and interest in and to the Pennsylvania Mining Complex (which represents an aggregate 5% undivided interest in and to the Pennsylvania Mining Complex)("PA Mining Acquisition"). The PA Mining Acquisition was a transaction between entities under common control; therefore, the partnership recorded the assets and liabilities of the acquired 5% of Pennsylvania Mining Complex at their carrying amounts to CONSOL Energy on the date of the transaction. The difference between CONSOL Energy’s net carrying amount and the total consideration paid to CONSOL Energy was recorded as a capital transaction with CONSOL Energy, which resulted in a reduction in partners’ capital. The Partnership recast its historical consolidated financial statements to retrospectively reflect the additional 5% interest in Pennsylvania Mining Complex as if the business was owned for all periods presented; however, the consolidated financial statements are not necessarily indicative of the results of operations that would have occurred if the Partnership had owned it during the periods reported. For the three months ended March 31, 2017 and 2016, the unaudited consolidated financial statements include the accounts of CNX Operating and CNX Thermal Holdings, wholly-owned and controlled subsidiaries. Recent Accounting Pronouncements: In March 2017, the FASB issued Update 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The Update requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the Update requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The amendments are effective for public business entities for interim and annual periods beginning after December 15, 2017. Management is currently evaluating the impact this guidance may have on the Partnership's financial statements. In January 2017, the FASB issued Update 2017-01 - Business Combinations (Topic 805). This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this new guidance will not have a material impact on the Partnership's financial statements. In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The objective of the amendments in this update is to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards ("IFRS"). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and should disclose sufficient information, both qualitative and quantitative, to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The following updates to Topic 606 were made during 2016:
The new standards are effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as annual reporting periods beginning after December 15, 2016. Management continues to evaluate the impacts that these standards will have on the Partnership's financial statements, specifically as it relates to contracts that contain positive electric power price related adjustments. The Partnership anticipates using the modified retrospective approach at adoption as it relates to ASU 2014-09. In August 2016, the FASB issued Update 2016-15 - Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. This update seeks to reduce the existing diversity in practice of the presentation and classification of specific cash flow issues. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Partnership's financial statements. In February 2016, the FASB issued Update 2016-02 - Leases (Topic 842). This update is intended to improve financial reporting about leasing transactions. This update will require lessees to recognize all leases with terms greater than 12 months on their balance sheet as lease liabilities with a corresponding right-of-use asset. This update maintains the dual model for lease accounting, requiring leases to be classified as either operating or finance, with lease classification determined in a manner similar to existing lease guidance. The basic principle is that leases of all types convey the right to direct the use and obtain substantially all the economic benefits of an identified asset, meaning they create an asset and liability for lessees. Lessees will classify leases as either finance leases (comparable to current capital leases) or operating leases (comparable to current operating leases). Costs for a finance lease will be split between amortization and interest expense, with a single lease expense reported for operating leases. This update also will require both qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this update is permitted for all entities. Management is currently evaluating the impact this guidance may have on the Partnership's financial statements. |
Net Income Per Limited Partner and General Partner Interest |
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Net Income Per Limited Partner and General Partner Interest | NET INCOME PER LIMITED PARTNER AND GENERAL PARTNER INTEREST: The Partnership allocates net income among our general partner and limited partners using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, we allocate our net income to our limited partners and our general partner in accordance with the terms of our partnership agreement. We also allocate any earnings in excess of distributions to our limited partners and our general partner in accordance with the terms of our partnership agreement. We allocate any distributions in excess of earnings for the period to our general partner and our limited partners based on their respective proportionate ownership interests in us, after taking into account distributions to be paid with respect to the incentive distribution rights, as set forth in the partnership agreement. Net income attributable to the PA Mining Acquisition for periods prior to September 30, 2016 was not allocated to the limited partners for purposes of calculating net income per limited partner unit. Diluted net income per limited partner unit reflects the potential dilution that could occur if securities or agreements to issue common units, such as awards under the long-term incentive plan, were exercised, settled or converted into common units. When it is determined that potential common units resulting from an award subject to performance or market conditions should be included in the diluted net income per limited partner unit calculation, the impact is reflected by applying the treasury stock method. Diluted net income per limited partner unit also reflects the potential dilution that could occur if the preferred units of the partnership were converted to common units. If certain conditions are met, preferred units can be converted by election of the holder, partnership, or by change in control. The following table illustrates the Partnership's calculation of net income per unit for common and subordinated partner units (in thousands, except for per unit information):
There were 369,210 and 359,149 phantom units excluded from the computation of the diluted earnings per share because their effect would be anti-dilutive for the three months ended March 31, 2017 and 2016, respectively. |
Acquisition |
3 Months Ended |
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Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | ACQUISITION: On September 30, 2016, the Partnership and its wholly owned subsidiary, CNX Thermal Holdings, entered into a Contribution Agreement with CONSOL Energy, CPCC and Conrhein and together with CPCC, under which CNX Thermal Holdings acquired an undivided 6.25% of the Contributing Parties’ right, title and interest in and to the Pennsylvania Mining Complex (which represents an aggregate 5% undivided interest in and to the Pennsylvania Mining Complex), in exchange for (i) cash consideration in the amount of $21,500 and (ii) the Partnership’s issuance of 3,956,496 Class A Preferred Units representing limited partner interests in the Partnership at an issue price of $17.01 per Class A Preferred Unit (the “Class A Preferred Unit Issue Price”), or an aggregate $67,300 in equity consideration. The Class A Preferred Unit Issue Price was calculated as the volume-weighted average trading price of the Partnership’s common units over the trailing 15-day trading period ending on September 29, 2016 (or $14.79), plus a 15% premium. The PA Mining Acquisition was consummated on September 30, 2016. Our general partner elected not to contribute capital to retain their 2% interest. As of March 31, 2017, our general partner's ownership interest was 1.7%. Following the PA Mining Acquisition and including interests it held previously, CNX Thermal holds an aggregate 25% undivided interest in and to the Pennsylvania Mining Complex. The PA Mining Acquisition was a transaction between entities under common control; therefore, the Partnership recorded the assets and liabilities of the acquired 5% undivided interest in the Pennsylvania Mining Complex at their carrying amounts to CONSOL Energy on the date of the transaction. The difference between CONSOL Energy's net carrying amount and the total consideration paid to CONSOL Energy was recorded as a capital transaction with CONSOL Energy, which resulted in a reduction in partners’ capital. The $67,300 in equity consideration was a non-cash transaction that impacted the investing and financing activities of the Partnership by $6,524 of excess consideration paid over the net carrying amount and $60,776 of carrying amount paid from equity consideration in the three and nine months ended September 30, 2016. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES:
Inventories are stated at the lower of cost or net realizable value. The cost of coal inventories is determined by the first-in, first-out (FIFO) method. Coal inventory costs include labor, supplies, equipment costs, operating overhead, depreciation, depletion and amortization, and other related costs. The cost of supplies inventory is determined by the average cost method and includes operating and maintenance supplies to be used in our coal operations. |
Property, Plant and Equipment |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT:
Coal reserves are controlled either through fee ownership or by lease. The duration of the leases vary; however, the lease terms generally are extended automatically to the exhaustion of economically recoverable reserves, as long as active mining continues. Coal interests held by lease provide the same rights as fee ownership for mineral extraction and are legally considered real property interests. As of March 31, 2017 and December 31, 2016, property, plant and equipment includes gross assets under capital lease of $662 and $631, respectively. Accumulated amortization for capital leases was $436 and $398 at March 31, 2017 and December 31, 2016, respectively. Amortization expense for assets under capital leases approximated $24 and $16 for the three months ended March 31, 2017 and 2016, respectively, and is included in Depreciation, Depletion and Amortization in the accompanying Consolidated Statements of Operations. |
Other Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES:
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Revolving Credit Facility |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | REVOLVING CREDIT FACILITY:
Revolving Credit Facility Obligations under our $400,000 senior secured revolving credit facility with certain lenders and PNC Bank N.A, as administrative agent, are guaranteed by our subsidiaries and are secured by substantially all of our and our subsidiaries’ assets pursuant to a security agreement and various mortgages. CONSOL Energy is not a guarantor of our obligations under our revolving credit facility. The unused portion of our revolving credit facility is subject to a commitment fee of 0.50% per annum. Interest on outstanding indebtedness under our revolving credit facility accrues, at our option, at a rate based on either:
As of March 31, 2017, the revolving credit facility had $197,000 of borrowings outstanding, leaving $203,000 of unused capacity. At December 31, 2016, the revolving credit facility had $201,000 of borrowings outstanding, leaving $199,000 unused capacity. Interest on outstanding borrowings under the revolving credit facility as of March 31, 2017 was accrued at 4.14% based on a weighted average LIBOR rate of 0.90%, plus a weighted average margin of 3.24%. Interest on outstanding borrowings under the revolving credit facility at December 31, 2016 was accrued at 3.99% based on a weighted average LIBOR rate of 0.74%, plus a weighted average margin of 3.25%. Our revolving credit facility matures on July 7, 2020 and requires compliance with conditions precedent that must be satisfied prior to any borrowing as well as ongoing compliance with certain affirmative and negative covenants. The revolving credit facility requires that the Partnership maintain a minimum interest coverage ratio of at least 3.00 to 1.00, which is calculated as the ratio of trailing 12 months Adjusted EBITDA, as defined in the credit agreement, to cash interest expense of the Partnership, measured quarterly. The Partnership must also maintain a maximum total leverage ratio not greater than 3.50 to 1.00 (or 4.00 to 1.00 for two fiscal quarters after consummation of a material acquisition), which is calculated as the ratio of total consolidated indebtedness to trailing 12 months Adjusted EBITDA, as defined in the credit agreement, measured quarterly. At March 31, 2017, the interest coverage ratio was 10.32 to 1.00 and the total leverage ratio was 2.15 to 1.00. |
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs | COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS: The Partnership is obligated to CONSOL Energy for medical and disability benefits to certain CPCC employees and their dependents resulting from occurrences of coal workers' pneumoconiosis disease and is also obligated to CONSOL Energy to compensate certain individuals who are entitled benefits under workers' compensation laws.
The Partnership does not expect to contribute to CONSOL Energy's CWP plan in 2017 as it intends to pay benefit claims as they become due. For the three months ended March 31, 2017, $16 of CWP benefit claims have been paid. The Partnership does not expect to contribute to CONSOL Energy's Workers’ Compensation plan in 2017 as it intends to pay benefit claims as they become due. For the three months ended March 31, 2017, $458 of Workers’ Compensation benefits, state administrative fees and surety bond premiums have been paid. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS: The Partnership determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources (including LIBOR-based discount rates), while unobservable inputs reflect the Partnership's own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below. Level One - Quoted prices for identical instruments in active markets. Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs, including LIBOR-based discount rates. Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. The significant unobservable inputs used in the fair value measurement of the Partnership's third party guarantees are the credit risk of the third party and the third party surety bond markets. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: Long-term debt: The fair value of long-term debt is measured using unadjusted quoted market prices or estimated using discounted cash flow analyses. The discounted cash flow analyses are based on current market rates for instruments with similar cash flows. The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
The Partnership’s debt obligations are valued through reference to the applicable underlying benchmark rate and, as a result, constitute Level 2 fair value measurements. |
Commitments and Contingent Liabilities |
3 Months Ended |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES: The Partnership is subject to various lawsuits and claims with respect to such matters as personal injury, wrongful death, damage to property, exposure to hazardous substances, governmental regulations (including environmental remediation), employment and contract disputes and other claims and actions arising out of the normal course of business. We accrue the estimated loss for these lawsuits and claims when the loss is probable and can be estimated. Our current estimated accruals related to these pending claims, individually and in the aggregate, are immaterial to the financial position, results of operations or cash flows of the Partnership. It is possible that the aggregate loss in the future with respect to these lawsuits and claims could ultimately be material to the financial position, results of operations or cash flows of the Partnership; however, such amounts cannot be reasonably estimated. At March 31, 2017, the Partnership is contractually obligated to CONSOL Energy for financial guarantees and letters of credit to certain third parties which were issued by CONSOL Energy on behalf of the Partnership. The maximum potential total of future payments that we could be required to make under these instruments is $71,851. The instruments are comprised of $720 employee-related and other letters of credit expiring in the next year, $61,952 of environmental surety bonds expiring within the next three years, and $9,179 of employee-related and other surety bonds expiring within the next three years. Employee-related financial guarantees have primarily been provided to support various state workers’ compensation and federal black lung self-insurance programs. Environmental financial guarantees have primarily been provided to support various performance bonds related to reclamation and other environmental issues. Other guarantees have been extended to support insurance policies, legal matters, full and timely payments of mining equipment leases, and various other items necessary in the normal course of business. 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. The Partnership’s management believes that these guarantees will expire without being funded, and therefore the commitments will not have a material adverse effect on the financial condition of the Partnership. |
Related Party |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party | RELATED PARTY: CONSOL Energy The Consolidated Statements of Operations include expense allocations for certain corporate functions historically performed by CONSOL Energy prior to the IPO, including allocations of general corporate expenses related to stock-based compensation, legal, treasury, human resources, information technology and other administrative services. Those allocations were based primarily on specific identification, head counts and coal tons produced. Also, centralized cash management activities for CONSOL Energy were utilized for collections and payments related to normal course of business accounts receivable and payments for goods and services. The balance of receivables/payables from CONSOL Energy and other affiliates are presented as contributions/distributions in these consolidated financial statements. Management believes the assumptions underlying the Consolidated Financial Statements, including the assumptions regarding allocating general corporate expenses from CONSOL Energy are reasonable. Nevertheless, these statements may not include all of the actual expenses that would have been incurred by the Partnership and may not reflect our Consolidated Statements of Operations, Balance Sheets and Cash Flows had we been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Partnership had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. In conjunction with the IPO, the Partnership entered into several agreements, including an omnibus agreement, with CONSOL Energy. In connection with PA Mining Acquisition described in Note 3, on September 30, 2016, the General Partner and the Partnership entered into the First Amended and Restated Omnibus Agreement (the “Amended Omnibus Agreement”) with CONSOL Energy and certain of its subsidiaries. Under the Amended Omnibus Agreement, CONSOL Energy will indemnify the Partnership for certain liabilities, including those relating to:
The Partnership will indemnify CONSOL Energy for certain liabilities relating to the First Drop Down Assets, including those relating to:
The Amended Omnibus Agreement also amended the Partnership’s obligations to CONSOL Energy with respect to the payment of an annual administrative support fee and reimbursement for the provision of certain management and operating services provided by CONSOL Energy, in each case to reflect structural changes in how those services are provided to the Partnership by CONSOL Energy. Charges for services from CONSOL Energy include the following:
At March 31, 2017 and December 31, 2016, the Partnership had a net payable to CONSOL Energy in the amount of $1,764 and $1,666, respectively. This payable includes reimbursements for business expenses, executive fees, stock-based compensation and other items under the omnibus agreement. |
Long-Term Incentive Plan |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Incentive Plan | LONG-TERM INCENTIVE PLAN: Under the CNX Coal Resources LP 2015 Long-Term Incentive Plan (the “LTIP”), our general partner may issue long-term equity based awards to directors, officers and employees of our general partner or its affiliates, or to any consultants, affiliates of our general partner or other individuals who perform services for us. These awards are intended to compensate the recipients thereof based on the performance of our common units and their continued service during the vesting period, as well as to align their long-term interests with those of our unitholders. We are responsible for the cost of awards granted under the LTIP and all determinations with respect to awards to be made under the LTIP are made by the board of directors of our general partner or any committee thereof that may be established for such purpose or by any delegate of the board of directors or such committee, subject to applicable law, which we refer to as the plan administrator. The LTIP limits the number of units that may be delivered pursuant to vested awards to 2,300,000 common units, subject to proportionate adjustment in the event of unit splits and similar events. Common units subject to awards that are canceled, forfeited, withheld to satisfy exercise prices or tax withholding obligations or otherwise terminated without delivery of the common units will be available for delivery pursuant to other awards. The Partnership's general partner has granted equity-based phantom units that vest over a period of continued service with the Partnership. The phantom units will be paid in common units upon vesting or an amount of cash equal to the fair market value of a unit based on the vesting date. The awards may accelerate upon change in control of the Partnership. Compensation expense is recognized on a straight-line basis over a requisite service period, which is generally the vesting term. The Partnership recognized $866 and $308 of compensation expense for the three months ended March 31, 2017 and March 31, 2016, respectively, which is included in Selling, General and Administrative Expenses in the Consolidated Statements of Operations. As of March 31, 2017, there is $8,162 of unearned compensation that will vest over a weighted average period of 2.52 years. The following represents the nonvested phantom units and their corresponding weighted average grant date fair value:
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Subsequent Events |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS: On April 26, 2017, the Board of Directors of our general partner declared a cash distribution to the Partnership's unitholders for the first quarter of 2017 of $0.5125 per common and subordinated units and $0.4678 per Class A Preferred Unit. The cash distribution will be paid on May 15, 2017 to the unitholders of record at the close of business on May 8, 2017. |
Basis of Presentation (Policies) |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | The accompanying unaudited consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP 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. On September 30, 2016, the Partnership and its wholly owned subsidiary, CNX Thermal, entered into a Contribution Agreement (the “Contribution Agreement”) with CONSOL Energy, CPCC and Conrhein and together with CPCC, (the “Contributing Parties”), under which CNX Thermal acquired an undivided 6.25% of the Contributing Parties’ right, title and interest in and to the Pennsylvania Mining Complex (which represents an aggregate 5% undivided interest in and to the Pennsylvania Mining Complex)("PA Mining Acquisition"). The PA Mining Acquisition was a transaction between entities under common control; therefore, the partnership recorded the assets and liabilities of the acquired 5% of Pennsylvania Mining Complex at their carrying amounts to CONSOL Energy on the date of the transaction. The difference between CONSOL Energy’s net carrying amount and the total consideration paid to CONSOL Energy was recorded as a capital transaction with CONSOL Energy, which resulted in a reduction in partners’ capital. The Partnership recast its historical consolidated financial statements to retrospectively reflect the additional 5% interest in Pennsylvania Mining Complex as if the business was owned for all periods presented; however, the consolidated financial statements are not necessarily indicative of the results of operations that would have occurred if the Partnership had owned it during the periods reported. For the three months ended March 31, 2017 and 2016, the unaudited consolidated financial statements include the accounts of CNX Operating and CNX Thermal Holdings, wholly-owned and controlled subsidiaries. |
Net Income Per Limited Partner and General Partner Interest (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the Partnership's calculation of net income per unit for common and subordinated partner units (in thousands, except for per unit information):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory |
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
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Other Accrued Liabilities (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities |
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Revolving Credit Facility (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revolving Credit Facility |
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Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Postemployment Benefit Obligations |
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Financial Instruments | The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
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Related Party (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Charges for services from CONSOL Energy include the following:
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Long-Term Incentive Plan (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Phantom units | The following represents the nonvested phantom units and their corresponding weighted average grant date fair value:
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Basis of Presentation (Details) |
Mar. 31, 2017 |
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Pennsylvania Mining Complex | |
Related Party Transaction [Line Items] | |
Percent of right, title and interest acquired | 5.00% |
CNX Thermal | |
Related Party Transaction [Line Items] | |
Percent of right, title and interest acquired | 25.00% |
CNX Thermal | Pennsylvania Mining Complex | |
Related Party Transaction [Line Items] | |
Percentage of contributing partners' interest | 6.25% |
Net Income Per Limited Partner and General Partner Interest (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 15 Months Ended | |
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Sep. 29, 2016 |
|
Limited Partners' Capital Account [Line Items] | ||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 0.00% | 0.00% | ||
Net Income | $ 14,066 | $ 3,816 | ||
Less: Net Income Attributable to CONSOL Energy, Pre-PA Mining Acquisition | 0 | 1,317 | ||
Less: General Partner Interest in Net Income | 243 | 51 | ||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Nonredeemable | 1,851 | 0 | ||
Net Income Allocable to Limited Partner Units - Basic | 11,972 | 2,448 | ||
Net Income (Loss) Allocated to Limited Partners, Diluted | $ 13,823 | $ 2,448 | ||
Weighted Average Limited Partner Units Outstanding - Basic (in shares) | 23,292,099 | 23,222,134 | ||
Weighted Average Limited Partner Units Outstanding - Diluted (in shares) | 27,379,800 | 23,223,540 | ||
Net Income per Limited Partner Unit - Basic | $ 0.51 | $ 0.11 | ||
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.50 | $ 0.11 | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 369,210 | 359,149 | ||
Phantom Share Units (PSUs) | ||||
Limited Partners' Capital Account [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | ||
Common Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Net Income Allocable to Limited Partner Units - Basic | $ 6,014 | $ 1,224 | ||
Net Income (Loss) Allocated to Limited Partners, Diluted | $ 7,865 | |||
Weighted Average Limited Partner Units Outstanding - Basic (in shares) | 11,681,032 | 11,611,067 | ||
Weighted Average Limited Partner Units Outstanding - Diluted (in shares) | 15,768,733 | 11,612,473 | ||
Net Income per Limited Partner Unit - Basic | $ 0.51 | $ 0.11 | ||
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.50 | $ 0.11 | ||
Subordinated Units | ||||
Limited Partners' Capital Account [Line Items] | ||||
Net Income Allocable to Limited Partner Units - Basic | $ 5,958 | $ 1,224 | ||
Weighted Average Limited Partner Units Outstanding - Basic (in shares) | 11,611,067 | 11,611,067 | ||
Weighted Average Limited Partner Units Outstanding - Diluted (in shares) | 11,611,067 | 11,611,067 | ||
Net Income per Limited Partner Unit - Basic | $ 0.51 | $ 0.11 | ||
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.51 | $ 0.11 | ||
General Partner | ||||
Limited Partners' Capital Account [Line Items] | ||||
Net Income | $ 243 | |||
Preferred Units, Class [Domain] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Nonredeemable | $ 1,851 | $ 0 |
Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 15 Months Ended | |
---|---|---|---|---|
Sep. 30, 2016 |
Mar. 31, 2017 |
Mar. 31, 2017 |
Sep. 29, 2016 |
|
Business Acquisition [Line Items] | ||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 0.00% | 0.00% | ||
CNX Thermal | ||||
Business Acquisition [Line Items] | ||||
Percent of right, title and interest acquired | 25.00% | 25.00% | ||
Pennsylvania Mining Complex | ||||
Business Acquisition [Line Items] | ||||
Percent of right, title and interest acquired | 5.00% | 5.00% | ||
Cash consideration for business acquisition | $ 21,500 | |||
Shares issued as consideration (in dollars per share) | $ 17.01 | $ 17.01 | ||
Aggregate equity consideration transferred in acquisition | $ 67,300 | |||
Trading price measurement period (in days) | 15 days | |||
Volume weighted-average trading price (in dollars per share) | $ 14.79 | |||
Volume weighted-average trading price, premium (as a percent) | 15.00% | |||
Consideration in excess of net carrying value of assets acquired | $ 6,524 | |||
Carrying amount of assets acquired | $ 60,776 | |||
Pennsylvania Mining Complex | Preferred Units | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued for acquisition consideration | 3,956,496 | |||
Pennsylvania Mining Complex | CNX Thermal | ||||
Business Acquisition [Line Items] | ||||
Percentage of contributing partners' interest | 6.25% | 6.25% |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Coal | $ 3,156 | $ 1,950 |
Supplies | 9,560 | 9,541 |
Total Inventories | $ 12,716 | $ 11,491 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 879,689 | $ 876,690 | |
Less—Accumulated Depreciation, Depletion and Amortization | 452,527 | 442,178 | |
Total Property, Plant and Equipment—Net | 427,162 | 434,512 | |
Gross assets under capital lease | 662 | 631 | |
Accumulated amortization for capital leases | 436 | 398 | |
Amortization expense for assets under capital lease | 24 | $ 16 | |
Coal and other plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 579,577 | 576,917 | |
Coal properties and surface lands | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 121,383 | 121,241 | |
Airshafts | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 93,164 | 92,938 | |
Mine development | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 81,538 | 81,538 | |
Coal advance mining royalties | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 4,027 | $ 4,056 |
Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Payables and Accruals [Abstract] | ||
Subsidence liability | $ 27,273 | $ 26,887 |
Accrued payroll and benefits | 3,753 | 4,052 |
Equipment lease rental | 2,495 | 2,442 |
Litigation | 2,257 | 2,507 |
Accrued other taxes | 1,665 | 2,504 |
Other | 2,770 | 3,683 |
Current portion of long-term liabilities: | ||
Workers' compensation | 1,391 | 1,380 |
Asset retirement obligations | 591 | 591 |
Long-term disability | 114 | 128 |
Capital leases | 91 | 88 |
Pneumoconiosis benefits | 61 | 56 |
Total Other Accrued Liabilities | $ 42,461 | $ 44,318 |
Revolving Credit Facility (Details) - Secured Debt - Revolving Credit Facility |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2015 |
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | |||
Revolver, carrying amount | $ 197,000,000 | $ 201,000,000 | |
Less: Debt issuance and financing fees | 2,932,000 | 3,157,000 | |
Revolver, net | 194,068,000 | 197,843,000 | |
Maximum borrowing capacity | $ 400,000,000 | ||
Unused borrowing capacity fee (as a percent) | 0.50% | ||
Borrowings outstanding | $ 197,000,000 | 201,000,000 | |
Remaining borrowing capacity | $ 203,000,000 | $ 199,000,000 | |
Weighted average interest rate (as a percent) | 4.14% | 3.99% | |
Interest coverage ratio | 10.32 | ||
Total leverage ratio | 2.15 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Interest coverage ratio | 3.00 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Total leverage ratio | 3.5 | ||
Federal Funds Open Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.50% | ||
London Interbank Offered Rate (LIBOR) Plus 1% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Variable Rate, Premium Percentage | 1.00% | ||
London Interbank Offered Rate (LIBOR) Plus 1% | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.50% | ||
London Interbank Offered Rate (LIBOR) Plus 1% | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.50% | ||
London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.24% | 3.25% | |
Weighted average interest rate (as a percent) | 0.90% | 0.74% | |
London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.50% | ||
London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.50% | ||
Acquisition-related Costs [Member] | Maximum | |||
Debt Instrument [Line Items] | |||
Total leverage ratio | 4.00 |
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Coal Workers Pneumoconiosis | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 283 | $ 191 |
Interest cost | 18 | 18 |
Amortization of actuarial gain | (34) | (22) |
State administrative fees and insurance bond premiums | 0 | 0 |
Net periodic benefit cost | 267 | 187 |
Benefits paid | 16 | |
Workers Compensation | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 320 | 325 |
Interest cost | 33 | 33 |
Amortization of actuarial gain | (8) | (5) |
State administrative fees and insurance bond premiums | 57 | 34 |
Net periodic benefit cost | 402 | $ 387 |
Benefits paid | $ 458 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving Credit Facility | $ 197,000 | $ 201,000 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving Credit Facility | $ 197,000 |
Commitments and Contingent Liabilities (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Guarantor Obligations [Line Items] | |
Maximum potential future payments | $ 71,851 |
Financial Standby Letter of Credit | |
Guarantor Obligations [Line Items] | |
Maximum potential future payments | 720 |
Environment Related Contingency | Surety Bond | |
Guarantor Obligations [Line Items] | |
Maximum potential future payments | $ 61,952 |
Instrument expiration period (in years) | 3 years |
Employee Related Contingency | Surety Bond | |
Guarantor Obligations [Line Items] | |
Maximum potential future payments | $ 9,179 |
Instrument expiration period (in years) | 3 years |
Related Party (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Related Party Transaction [Line Items] | |||
Accounts Payable—Related Party | $ 1,764 | $ 1,666 | |
CONSOL Energy | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 1,589 | $ 2,382 | |
Accounts Payable—Related Party | 1,764 | $ 1,666 | |
CONSOL Energy | Operating and Other Costs | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 872 | 1,266 | |
CONSOL Energy | Selling, General and Administrative Expenses | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 717 | $ 1,116 |
Long-Term Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Phantom Share Units (PSUs) | Long-Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Nonvested at December 31, 2015 (in shares) | 381,934 | |
Granted (in shares) | 383,478 | |
Vested (in shares) | (142,421) | |
Forfeited (in shares) | (10,389) | |
Nonvested at September 30, 2016 (in shares) | 612,602 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested at December 31, 2015 (in dollars per share) | $ 7.90 | |
Granted (in dollars per share) | 18.94 | |
Vested (in dollars per share) | 7.96 | |
Forfeited (in dollars per share) | 12.13 | |
Nonvested at September 30, 2016 (in dollars per share) | $ 10.18 | |
Common Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized under LTIP (in shares) | 2,300,000 | |
Common Units | Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unearned compensation | $ 8,162 | |
Unearned compensation expense amortization period | 2 years 6 months 7 days | |
Common Units | Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amortization expense due to vesting | $ 866 | $ 308 |
Subsequent Events (Details) - USD ($) |
3 Months Ended | |||||
---|---|---|---|---|---|---|
May 15, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
Common Units | ||||||
Subsequent Event [Line Items] | ||||||
Cash Distributions Declared per Unit (in dollars per share) | [1] | $ 0.5125 | $ 0.5125 | |||
Subordinated Units | ||||||
Subsequent Event [Line Items] | ||||||
Cash Distributions Declared per Unit (in dollars per share) | [1] | $ 0.5125 | $ 0.5125 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Declared, Preferred Units | $ 0.4678 | |||||
Subsequent Event | Common Units | ||||||
Subsequent Event [Line Items] | ||||||
Cash Distributions Declared per Unit (in dollars per share) | $ 0.5125 | |||||
Subsequent Event | Subordinated Units | ||||||
Subsequent Event [Line Items] | ||||||
Cash Distributions Declared per Unit (in dollars per share) | $ 0.5125 | |||||
|
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