Document and Equity Information
Document and Equity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | CNX Coal Resources LP | |
Entity Central Index Key | 1,637,558 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenues [Abstract] | |||||
Coal Revenue | $ 75,927 | $ 62,640 | $ 155,039 | $ 119,181 | |
Freight Revenue | 4,441 | 2,797 | 7,511 | 6,066 | |
Other Income | 2,104 | 1,780 | 3,202 | 1,768 | |
Total Revenue and Other Income | 82,472 | 67,217 | 165,752 | 127,015 | |
Costs and Expenses [Abstract] | |||||
Operating and Other Costs | [1] | 50,232 | 46,046 | 100,115 | 84,536 |
Depreciation, Depletion and Amortization | 10,277 | 10,422 | 20,798 | 20,739 | |
Freight Expense | 4,441 | 2,797 | 7,511 | 6,066 | |
Selling, General and Administrative Expenses | [2] | 3,652 | 1,969 | 6,935 | 3,897 |
Interest Expense | 2,396 | 2,076 | 4,853 | 4,054 | |
Total Costs | 70,998 | 63,310 | 140,212 | 119,292 | |
Net Income | 11,474 | 3,907 | 25,540 | 7,723 | |
Less: Net Income Attributable to CONSOL Energy Pre-PA Mining Acquisition | 0 | 1,300 | 0 | 2,617 | |
Net Income Attributable to General and Limited Partner Ownership Interest in CNX Coal Resources | 11,474 | 2,607 | 25,540 | 5,106 | |
Less: General Partner Interest in Net Income | 192 | 51 | 435 | 102 | |
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Nonredeemable | 1,851 | 0 | 3,702 | 0 | |
Limited Partner Interest in Net Income | $ 9,431 | $ 2,556 | $ 21,403 | $ 5,004 | |
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic, Net of Tax | $ 0.40 | $ 0.11 | |||
Earnings Per Share [Abstract] | |||||
Net Income per Limited Partner Unit - Basic | 0.40 | 0.11 | $ 0.92 | $ 0.22 | |
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.40 | $ 0.11 | $ 0.91 | $ 0.22 | |
Limited Partner Units Outstanding - Basic (in shares) | 23,329,702 | 23,222,134 | 23,311,004 | 23,222,134 | |
Limited Partner Units Outstanding - Diluted (in shares) | 23,470,050 | 23,301,391 | 23,444,923 | 23,254,115 | |
Common Units | |||||
Costs and Expenses [Abstract] | |||||
Limited Partner Interest in Net Income | $ 4,737 | $ 4,196 | $ 10,751 | $ 5,420 | |
Earnings Per Share [Abstract] | |||||
Net Income per Limited Partner Unit - Basic | $ 0.40 | $ 0.92 | $ 0.36 | $ 0.47 | |
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.40 | $ 0.91 | $ 0.36 | $ 0.47 | |
Limited Partner Units Outstanding - Basic (in shares) | 11,718,635 | 11,699,937 | 11,611,067 | 11,611,067 | |
Limited Partner Units Outstanding - Diluted (in shares) | 11,858,983 | 11,833,856 | 11,690,324 | 11,643,048 | |
Cash Distributions Declared per Unit (in dollars per share) | [3] | $ 0.5125 | $ 0.5125 | $ 1.025 | $ 1.0250 |
Subordinated Units | |||||
Costs and Expenses [Abstract] | |||||
Limited Partner Interest in Net Income | $ 4,694 | $ (1,640) | $ 10,652 | $ (416) | |
Earnings Per Share [Abstract] | |||||
Net Income per Limited Partner Unit - Basic | $ 0.40 | $ 0.92 | $ (0.14) | $ (0.04) | |
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.40 | $ 0.92 | $ (0.14) | $ (0.04) | |
Limited Partner Units Outstanding - Basic (in shares) | 11,611,067 | 11,611,067 | 11,611,067 | 11,611,067 | |
Limited Partner Units Outstanding - Diluted (in shares) | 11,611,067 | 11,611,067 | 11,611,067 | 11,611,067 | |
Cash Distributions Declared per Unit (in dollars per share) | [3] | $ 0.5125 | $ 0 | $ 1.025 | $ 0.5125 |
General Partner | |||||
Costs and Expenses [Abstract] | |||||
Net Income | $ 435 | ||||
Preferred Units, Class [Domain] | |||||
Costs and Expenses [Abstract] | |||||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Nonredeemable | $ 0 | ||||
[1] | Related Party of $867 and $1,270 for the three months ended and $1,739 and $2,536 for the six months ended June 30, 2017 and June 30, 2016, respectively. | ||||
[2] | Related Party of $737 and $1,190 for the three months ended and $1,454 and $2,305 for the six months ended June 30, 2017 and June 30, 2016, respectively. | ||||
[3] | Represents the cash distributions declared related to the period presented. See Note 14 - Subsequent Events. |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Parenthetical) - CONSOL Energy - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Expenses from transactions with related party | $ 1,604 | $ 2,460 | $ 3,193 | $ 4,841 |
Operating and Other Costs | ||||
Expenses from transactions with related party | 867 | 1,270 | 1,739 | 2,536 |
General And Administrative Expenses | ||||
Expenses from transactions with related party | $ 737 | $ 1,190 | $ 1,454 | $ 2,305 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 11,474 | $ 3,907 | $ 25,540 | $ 7,723 |
Other Comprehensive Income (Loss): | ||||
Recognized Net Actuarial Gain | (40) | (22) | (79) | (47) |
Other Comprehensive Loss | (40) | (22) | (79) | (47) |
Comprehensive Income | $ 11,434 | $ 3,885 | $ 25,461 | $ 7,676 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash | $ 6,608 | $ 9,785 |
Trade Receivables | 26,025 | 23,418 |
Other Receivables | 1,152 | 515 |
Inventories | 14,007 | 11,491 |
Prepaid Expenses | 2,680 | 3,512 |
Total Current Assets | 50,472 | 48,721 |
Property, Plant and Equipment: | ||
Property, Plant and Equipment | 883,343 | 876,690 |
Less—Accumulated Depreciation, Depletion and Amortization | 462,587 | 442,178 |
Total Property, Plant and Equipment—Net | 420,756 | 434,512 |
Other Assets: | ||
Other | 19,107 | 21,063 |
Total Other Assets | 19,107 | 21,063 |
TOTAL ASSETS | 490,335 | 504,296 |
Current Liabilities: | ||
Accounts Payable | 16,003 | 18,797 |
Accounts Payable—Related Party | 2,196 | 1,666 |
Other Accrued Liabilities | 44,403 | 44,318 |
Total Current Liabilities | 62,602 | 64,781 |
Long-Term Debt: | ||
Revolver, Net of Debt Issuance and Financing Fees | 187,292 | 197,843 |
Capital Lease Obligations | 109 | 146 |
Total Long-Term Debt | 187,401 | 197,989 |
Other Liabilities: | ||
Pneumoconiosis Benefits | 2,613 | 2,057 |
Workers’ Compensation | 3,131 | 3,090 |
Asset Retirement Obligations | 9,320 | 9,346 |
Other | 437 | 463 |
Total Other Liabilities | 15,501 | 14,956 |
TOTAL LIABILITIES | 265,504 | 277,726 |
Partners' Capital: | ||
General Partner Interest | 12,223 | 12,274 |
Accumulated Other Comprehensive Income | 11,730 | 11,809 |
Total Partners' Capital | 224,831 | 226,570 |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | 490,335 | 504,296 |
Preferred Units | ||
Partners' Capital: | ||
Limited Partners' Capital Account | 69,151 | 69,151 |
Common Units | ||
Partners' Capital: | ||
Limited Partners' Capital Account | 140,607 | 140,967 |
Subordinated Member Units | ||
Partners' Capital: | ||
Limited Partners' Capital Account | $ (8,880) | $ (7,631) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 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 Partn
Consolidated Statement of Partners' Capital - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income | Preferred Partner | Limited PartnersCommon Stock | Limited PartnersSubordinated 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 | 25,540 | 3,702 | 10,751 | 10,652 | 435 | |
Unitholder Distributions | (28,100) | (3,702) | (12,011) | (11,901) | (486) | |
Unit Based Compensation | 1,707 | |||||
Tax Cost from Unit Based Compensation | (807) | |||||
Actuarially Determined Long-Term Liability Adjustments | (79) | (79) | ||||
Balance at June 30, 2017 at Jun. 30, 2017 | $ 224,831 | $ 11,730 | $ 69,151 | $ 140,607 | $ (8,880) | $ 12,223 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net Income | $ 25,540 | $ 7,723 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation, Depletion and Amortization | 20,798 | 20,739 |
(Gain) Loss on Sale of Assets | (1,400) | 12 |
Unit Based Compensation | 1,707 | 615 |
Other Adjustments to Net Income | 449 | 449 |
Changes in Operating Assets: | ||
Accounts and Notes Receivable | (3,244) | (2,931) |
Inventories | (2,516) | 1,122 |
Prepaid Expenses | 832 | 1,764 |
Changes in Other Assets | 326 | (3,884) |
Changes in Operating Liabilities: | ||
Accounts Payable | (2,460) | (2,353) |
Accounts Payable—Related Party | 530 | (3,075) |
Other Operating Liabilities | 84 | 2,959 |
Changes in Other Liabilities | 108 | 1,691 |
Net Cash Provided by Operating Activities | 40,754 | 24,831 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (5,472) | (6,501) |
Proceeds from Sales of Assets | 1,500 | 19 |
Net Cash Used in Investing Activities | (3,972) | (6,482) |
Cash Flows from Financing Activities: | ||
Payments on Miscellaneous Borrowings | (52) | (35) |
Net (Payments on) Proceeds from Revolver | (11,000) | 13,000 |
Payments for Unitholder Distributions | (28,100) | (24,288) |
Tax Cost from Unit-Based Compensation | (807) | |
Net Change in Parent Advances | 0 | (4,597) |
Net Cash Used in Financing Activities | (39,959) | (15,920) |
Net (Decrease) Increase in Cash | (3,177) | 2,429 |
Cash at Beginning of Period | 9,785 | 6,534 |
Cash at End of Period | $ 6,608 | $ 8,963 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2017 and 2016 , the unaudited consolidated financial statements include the accounts of CNX Operating and CNX Thermal Holdings, wholly-owned and controlled subsidiaries. Reclassifications: Certain amounts have been reclassified to conform with the current reporting classifications with no effect on previously reported net income or partners' capital. Recent Accounting Pronouncements: In March 2017, the Financial Accounting Standards Board ("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. Because the Partnership does not present an income from operations subtotal, that requirement is not applicable. Additionally, the Partnership's service cost component is deemed immaterial, and therefore, the other components of net benefit cost will not be presented separately. For public entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year for which financial statements have not been issued. The adoption of this guidance is not expected to have an impact 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: • 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. 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
Net Income Per Limited Partner and General Partner Interest | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
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. 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): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net Income $ 11,474 $ 3,907 $ 25,540 $ 7,723 Less: Net Income Attributable to CONSOL Energy, Pre-PA Mining Acquisition — 1,300 — 2,617 Less: General Partner Interest in Net Income 192 51 435 102 Less: Net Income Allocable to Class A Preferred Units 1,851 — 3,702 — Net Income Allocable to Limited Partner Units $ 9,431 $ 2,556 $ 21,403 $ 5,004 Limited Partner Interest in Net Income - Common Units $ 4,737 $ 1,278 $ 10,751 $ 2,502 Effect of Subordinated Distribution Suspension - Common Units — 2,918 — 2,918 Net Income Allocable to Common Units - Basic & Diluted $ 4,737 $ 4,196 $ 10,751 $ 5,420 Limited Partner Interest in Net Income - Subordinated Units $ 4,694 $ 1,278 $ 10,652 $ 2,502 Effect of Subordinated Distribution Suspension - Subordinated Units — (2,918 ) — (2,918 ) Net Income Allocable to Subordinated Units - Basic & Diluted $ 4,694 $ (1,640 ) $ 10,652 $ (416 ) Weighted Average Limited Partner Units Outstanding - Basic Common Units 11,718,635 11,611,067 11,699,937 11,611,067 Subordinated Units 11,611,067 11,611,067 11,611,067 11,611,067 Total 23,329,702 23,222,134 23,311,004 23,222,134 Weighted Average Limited Partner Units Outstanding - Diluted Common Units 11,858,983 11,690,324 11,833,856 11,643,048 Subordinated Units 11,611,067 11,611,067 11,611,067 11,611,067 Total 23,470,050 23,301,391 23,444,923 23,254,115 Net Income Per Limited Partner Unit - Basic Common Units $ 0.40 $ 0.36 $ 0.92 $ 0.47 Subordinated Units $ 0.40 $ (0.14 ) $ 0.92 $ (0.04 ) Net Income Per Limited Partner Unit - Basic $ 0.40 $ 0.11 $ 0.92 $ 0.22 Net Income Per Limited Partner Unit - Diluted Common Units $ 0.40 $ 0.36 $ 0.91 $ 0.47 Subordinated Units $ 0.40 $ (0.14 ) $ 0.92 $ (0.04 ) Net Income Per Limited Partner Unit - Diluted $ 0.40 $ 0.11 $ 0.91 $ 0.22 Diluted net income per limited partner unit does not reflect the potential dilution that could occur if the preferred units of the partnership were converted to common units because the effect would be anti-dilutive for the three and six months ended June 30, 2017 . If certain conditions are met, preferred units can be converted by election of the holder, partnership, or by change in control. There were 365,131 phantom units excluded from the computation of the diluted earnings per share because their effect would be anti-dilutive for the three and six months ended June 30, 2017 . There were no phantom units excluded from the computation of the diluted earnings per share because their effect would be anti-dilutive for the three and six months ended June 30, 2016 . |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 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 its 2% interest. As of June 30, 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
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES: June 30, December 31, Coal $ 4,292 $ 1,950 Supplies 9,715 9,541 Total Inventories $ 14,007 $ 11,491 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
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT: June 30, December 31, Coal and other plant and equipment $ 582,670 $ 576,917 Coal properties and surface lands 121,336 121,241 Airshafts 93,739 92,938 Mine development 81,538 81,538 Coal advance mining royalties 4,060 4,056 Total property, plant and equipment 883,343 876,690 Less: Accumulated depreciation, depletion and amortization 462,587 442,178 Total Net Property, Plant and Equipment $ 420,756 $ 434,512 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 June 30, 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 $ 460 and $ 398 at June 30, 2017 and December 31, 2016 , respectively. Amortization expense for assets under capital leases approximated $24 and $14 for the three months ended and $48 and $30 for the six months ended June 30, 2017 and 2016 , respectively, and is included in Depreciation, Depletion and Amortization in the accompanying Consolidated Statements of Operations. |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES: June 30, December 31, 2016 Subsidence liability $ 27,839 $ 26,887 Accrued payroll and benefits 4,653 4,052 Equipment lease rental 2,881 2,442 Litigation 2,505 2,507 Accrued other taxes 998 2,504 Other 3,027 3,683 Current portion of long-term liabilities: Workers' compensation 1,358 1,380 Asset retirement obligations 881 591 Long-term disability 105 128 Capital leases 89 88 Pneumoconiosis benefits 67 56 Total Other Accrued Liabilities $ 44,403 $ 44,318 |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | REVOLVING CREDIT FACILITY: June 30, December 31, Revolver, carrying amount $ 190,000 $ 201,000 Less: Debt issuance and financing fees 2,708 3,157 Revolver, net $ 187,292 $ 197,843 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: • 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. As of June 30, 2017 , the revolving credit facility had $190,000 of borrowings outstanding, leaving $210,000 of unused capacity, which is subject to a quarterly maximum total leverage ratio covenant described below. 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 June 30, 2017 was accrued at 4.17% based on a weighted average LIBOR rate of 1.17% , plus a weighted average margin of 3.00% . 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 June 30, 2017 , the interest coverage ratio was 10.91 to 1.00 and the total leverage ratio was 1.89 to 1.00 . |
Components of Coal Workers' Pne
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs | COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS: 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. CWP Workers' Compensation Three Months Ended Six Months Ended Three Months Ended Six Months Ended 2017 2016 2017 2016 2017 2016 2017 2016 Service cost $ 283 $ 204 $ 566 $ 395 $ 320 $ 325 $ 641 $ 650 Interest cost 18 18 36 36 33 33 65 66 Amortization of actuarial gain (34 ) (20 ) (68 ) (42 ) (8 ) (5 ) (17 ) (10 ) State administrative fees and insurance bond premiums — — — — 41 42 98 76 Net periodic benefit cost $ 267 $ 202 $ 534 $ 389 $ 386 $ 395 $ 787 $ 782 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 six months ended June 30, 2017 , $34 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 six months ended June 30, 2017 , $756 of Workers’ Compensation benefits, state administrative fees and surety bond premiums have been paid. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Revolving Credit Facility $ 190,000 $ 190,000 $ 201,000 $ 201,000 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 Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 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 June 30, 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 $72,504 . The instruments are comprised of $720 employee-related and other letters of credit expiring in the next three years, $62,508 of environmental surety bonds expiring within the next three years, and $9,276 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
Related Party | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party | RELATED PARTY: CONSOL Energy 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: • 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 Partnership will indemnify CONSOL Energy for certain liabilities relating to the First Drop Down Assets, including those relating to: • 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. 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: Three Months Ended Six Months Ended 2017 2016 2017 2016 Operating and Other Costs $ 867 $ 1,270 $ 1,739 $ 2,536 Selling, General and Administrative Expenses 737 1,190 1,454 2,305 Total Service from CONSOL Energy $ 1,604 $ 2,460 $ 3,193 $ 4,841 At June 30, 2017 and December 31, 2016 , the Partnership had a net payable to CONSOL Energy in the amount of $2,196 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
Long-Term Incentive Plan | 6 Months Ended |
Jun. 30, 2017 | |
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 $840 and $1,707 of compensation expense for the three and six months ended June 30, 2017 , respectively. The Partnership recognized $308 and $615 of compensation expense for the three and six months ended June 30, 2016 , respectively. Compensation expense is included in Selling, General and Administrative Expenses in the Consolidated Statements of Operations. As of June 30, 2017 , there is $7,226 of unearned compensation that will vest over a weighted average period of 2.29 years. The following represents the nonvested phantom units and their corresponding weighted average grant date fair value: 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 (16,766 ) $ 13.21 Nonvested at June 30, 2017 606,225 $ 10.20 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS: On July 27, 2017, the Board of Directors of our general partner declared a cash distribution to the Partnership's unitholders for the quarter ended June 30, 2017 of $0.5125 per common and subordinated units and $0.4678 per Class A Preferred Unit. The cash distribution will be paid on August 15, 2017 to the unitholders of record at the close of business on August 7, 2017. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 Partne23
Net Income Per Limited Partner and General Partner Interest (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
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): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net Income $ 11,474 $ 3,907 $ 25,540 $ 7,723 Less: Net Income Attributable to CONSOL Energy, Pre-PA Mining Acquisition — 1,300 — 2,617 Less: General Partner Interest in Net Income 192 51 435 102 Less: Net Income Allocable to Class A Preferred Units 1,851 — 3,702 — Net Income Allocable to Limited Partner Units $ 9,431 $ 2,556 $ 21,403 $ 5,004 Limited Partner Interest in Net Income - Common Units $ 4,737 $ 1,278 $ 10,751 $ 2,502 Effect of Subordinated Distribution Suspension - Common Units — 2,918 — 2,918 Net Income Allocable to Common Units - Basic & Diluted $ 4,737 $ 4,196 $ 10,751 $ 5,420 Limited Partner Interest in Net Income - Subordinated Units $ 4,694 $ 1,278 $ 10,652 $ 2,502 Effect of Subordinated Distribution Suspension - Subordinated Units — (2,918 ) — (2,918 ) Net Income Allocable to Subordinated Units - Basic & Diluted $ 4,694 $ (1,640 ) $ 10,652 $ (416 ) Weighted Average Limited Partner Units Outstanding - Basic Common Units 11,718,635 11,611,067 11,699,937 11,611,067 Subordinated Units 11,611,067 11,611,067 11,611,067 11,611,067 Total 23,329,702 23,222,134 23,311,004 23,222,134 Weighted Average Limited Partner Units Outstanding - Diluted Common Units 11,858,983 11,690,324 11,833,856 11,643,048 Subordinated Units 11,611,067 11,611,067 11,611,067 11,611,067 Total 23,470,050 23,301,391 23,444,923 23,254,115 Net Income Per Limited Partner Unit - Basic Common Units $ 0.40 $ 0.36 $ 0.92 $ 0.47 Subordinated Units $ 0.40 $ (0.14 ) $ 0.92 $ (0.04 ) Net Income Per Limited Partner Unit - Basic $ 0.40 $ 0.11 $ 0.92 $ 0.22 Net Income Per Limited Partner Unit - Diluted Common Units $ 0.40 $ 0.36 $ 0.91 $ 0.47 Subordinated Units $ 0.40 $ (0.14 ) $ 0.92 $ (0.04 ) Net Income Per Limited Partner Unit - Diluted $ 0.40 $ 0.11 $ 0.91 $ 0.22 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | June 30, December 31, Coal $ 4,292 $ 1,950 Supplies 9,715 9,541 Total Inventories $ 14,007 $ 11,491 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | June 30, December 31, Coal and other plant and equipment $ 582,670 $ 576,917 Coal properties and surface lands 121,336 121,241 Airshafts 93,739 92,938 Mine development 81,538 81,538 Coal advance mining royalties 4,060 4,056 Total property, plant and equipment 883,343 876,690 Less: Accumulated depreciation, depletion and amortization 462,587 442,178 Total Net Property, Plant and Equipment $ 420,756 $ 434,512 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | June 30, December 31, 2016 Subsidence liability $ 27,839 $ 26,887 Accrued payroll and benefits 4,653 4,052 Equipment lease rental 2,881 2,442 Litigation 2,505 2,507 Accrued other taxes 998 2,504 Other 3,027 3,683 Current portion of long-term liabilities: Workers' compensation 1,358 1,380 Asset retirement obligations 881 591 Long-term disability 105 128 Capital leases 89 88 Pneumoconiosis benefits 67 56 Total Other Accrued Liabilities $ 44,403 $ 44,318 |
Revolving Credit Facility (Tabl
Revolving Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Revolving Credit Facility | June 30, December 31, Revolver, carrying amount $ 190,000 $ 201,000 Less: Debt issuance and financing fees 2,708 3,157 Revolver, net $ 187,292 $ 197,843 |
Components of Coal Workers' P28
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | CWP Workers' Compensation Three Months Ended Six Months Ended Three Months Ended Six Months Ended 2017 2016 2017 2016 2017 2016 2017 2016 Service cost $ 283 $ 204 $ 566 $ 395 $ 320 $ 325 $ 641 $ 650 Interest cost 18 18 36 36 33 33 65 66 Amortization of actuarial gain (34 ) (20 ) (68 ) (42 ) (8 ) (5 ) (17 ) (10 ) State administrative fees and insurance bond premiums — — — — 41 42 98 76 Net periodic benefit cost $ 267 $ 202 $ 534 $ 389 $ 386 $ 395 $ 787 $ 782 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Revolving Credit Facility $ 190,000 $ 190,000 $ 201,000 $ 201,000 |
Related Party (Tables)
Related Party (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Charges for services from CONSOL Energy include the following: Three Months Ended Six Months Ended 2017 2016 2017 2016 Operating and Other Costs $ 867 $ 1,270 $ 1,739 $ 2,536 Selling, General and Administrative Expenses 737 1,190 1,454 2,305 Total Service from CONSOL Energy $ 1,604 $ 2,460 $ 3,193 $ 4,841 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 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: 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 (16,766 ) $ 13.21 Nonvested at June 30, 2017 606,225 $ 10.20 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2017 |
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 Partne33
Net Income Per Limited Partner and General Partner Interest (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | 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 | $ 11,474 | $ 3,907 | $ 25,540 | $ 7,723 | ||
Less: Net Income Attributable to CONSOL Energy, Pre-PA Mining Acquisition | 0 | 1,300 | 0 | 2,617 | ||
Less: General Partner Interest in Net Income | 192 | 51 | 435 | 102 | ||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Nonredeemable | 1,851 | 0 | 3,702 | 0 | ||
Limited Partner Interest in Net Income | $ 9,431 | $ 2,556 | $ 21,403 | $ 5,004 | ||
Weighted Average Limited Partner Units Outstanding - Basic (in shares) | 23,329,702 | 23,222,134 | 23,311,004 | 23,222,134 | ||
Weighted Average Limited Partner Units Outstanding - Diluted (in shares) | 23,470,050 | 23,301,391 | 23,444,923 | 23,254,115 | ||
Net Income per Limited Partner Unit - Basic | $ 0.40 | $ 0.11 | $ 0.92 | $ 0.22 | ||
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.40 | $ 0.11 | $ 0.91 | $ 0.22 | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 365,131 | |||||
Phantom Share Units (PSUs) | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 | ||
Common Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Limited Partner Interest in Net Income | $ 4,737 | $ 4,196 | $ 10,751 | $ 5,420 | ||
Net Income (Loss) Allocated To Limited Partners, Excluding Effect Of Subordinated Distribution Suspension | $ 1,278 | $ 2,502 | ||||
Weighted Average Limited Partner Units Outstanding - Basic (in shares) | 11,718,635 | 11,699,937 | 11,611,067 | 11,611,067 | ||
Weighted Average Limited Partner Units Outstanding - Diluted (in shares) | 11,858,983 | 11,833,856 | 11,690,324 | 11,643,048 | ||
Net Income per Limited Partner Unit - Basic | $ 0.40 | $ 0.92 | $ 0.36 | $ 0.47 | ||
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.40 | $ 0.91 | $ 0.36 | $ 0.47 | ||
Subordinated Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Subordinated Common Stock Distribution Suspension | $ 0 | $ 0 | $ (2,918) | $ (2,918) | ||
Limited Partner Interest in Net Income | 4,694 | (1,640) | 10,652 | (416) | ||
Net Income (Loss) Allocated To Limited Partners, Excluding Effect Of Subordinated Distribution Suspension | $ 4,694 | $ 10,652 | $ 1,278 | $ 2,502 | ||
Weighted Average Limited Partner Units Outstanding - Basic (in shares) | 11,611,067 | 11,611,067 | 11,611,067 | 11,611,067 | ||
Weighted Average Limited Partner Units Outstanding - Diluted (in shares) | 11,611,067 | 11,611,067 | 11,611,067 | 11,611,067 | ||
Net Income per Limited Partner Unit - Basic | $ 0.40 | $ 0.92 | $ (0.14) | $ (0.04) | ||
Net Income Per Limited Partner Unit - Diluted (in dollars per share) | $ 0.40 | $ 0.92 | $ (0.14) | $ (0.04) | ||
General Partner | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Net Income | $ 435 | |||||
Preferred Units, Class [Domain] | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Nonredeemable | $ 0 | |||||
Subordinated Common Stock Distribution Suspension | $ 0 | $ 2,918 | $ 0 | $ 2,918 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 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)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Coal | $ 4,292 | $ 1,950 |
Supplies | 9,715 | 9,541 |
Total Inventories | $ 14,007 | $ 11,491 |
Property, Plant and Equipment36
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | $ 883,343 | $ 883,343 | $ 876,690 | ||
Less—Accumulated Depreciation, Depletion and Amortization | 462,587 | 462,587 | 442,178 | ||
Total Property, Plant and Equipment—Net | 420,756 | 420,756 | 434,512 | ||
Gross assets under capital lease | 662 | 662 | 631 | ||
Accumulated amortization for capital leases | 460 | 460 | 398 | ||
Amortization expense for assets under capital lease | 24 | $ 14 | 48 | $ 30 | |
Coal and other plant and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 582,670 | 582,670 | 576,917 | ||
Coal properties and surface lands | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 121,336 | 121,336 | 121,241 | ||
Airshafts | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 93,739 | 93,739 | 92,938 | ||
Mine development | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | 81,538 | 81,538 | 81,538 | ||
Coal advance mining royalties | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment | $ 4,060 | $ 4,060 | $ 4,056 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Subsidence liability | $ 27,839 | $ 26,887 |
Accrued payroll and benefits | 4,653 | 4,052 |
Equipment lease rental | 2,881 | 2,442 |
Litigation | 2,505 | 2,507 |
Accrued other taxes | 998 | 2,504 |
Other | 3,027 | 3,683 |
Current portion of long-term liabilities: | ||
Workers' compensation | 1,358 | 1,380 |
Asset retirement obligations | 881 | 591 |
Long-term disability | 105 | 128 |
Capital leases | 89 | 88 |
Pneumoconiosis benefits | 67 | 56 |
Total Other Accrued Liabilities | $ 44,403 | $ 44,318 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Secured Debt - Revolving Credit Facility | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Revolver, carrying amount | $ 190,000,000 | $ 201,000,000 |
Less: Debt issuance and financing fees | 2,708,000 | 3,157,000 |
Revolver, net | 187,292,000 | 197,843,000 |
Maximum borrowing capacity | $ 400,000,000 | |
Unused borrowing capacity fee (as a percent) | 0.50% | |
Borrowings outstanding | $ 190,000,000 | 201,000,000 |
Remaining borrowing capacity | $ 210,000,000 | $ 199,000,000 |
Weighted average interest rate (as a percent) | 4.17% | 3.99% |
Interest coverage ratio | 10.91 | |
Total leverage ratio | 1.89 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio | 3 | |
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) | 3.00% | 3.25% |
Weighted average interest rate (as a percent) | 1.17% | 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 |
Components of Coal Workers' P39
Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Workers Compensation | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 756 | |||
Service cost | $ 320 | $ 325 | 641 | $ 650 |
Interest cost | 33 | 33 | 65 | 66 |
Amortization of actuarial gain | (8) | (5) | (17) | (10) |
State administrative fees and insurance bond premiums | 41 | 42 | 98 | 76 |
Net periodic benefit cost | 386 | 395 | 787 | 782 |
Coal Workers Pneumoconiosis | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 34 | |||
Service cost | 283 | 204 | 566 | 395 |
Interest cost | 18 | 18 | 36 | 36 |
Amortization of actuarial gain | (34) | (20) | (68) | (42) |
State administrative fees and insurance bond premiums | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 267 | $ 202 | $ 534 | $ 389 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving Credit Facility | $ 190,000 | $ 201,000 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving Credit Facility | $ 190,000 |
Commitments and Contingent Li41
Commitments and Contingent Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum potential future payments | $ 72,504 |
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 | $ 62,508 |
Instrument expiration period (in years) | 3 years |
Employee Related Contingency | Surety Bond | |
Guarantor Obligations [Line Items] | |
Maximum potential future payments | $ 9,276 |
Instrument expiration period (in years) | 3 years |
Related Party (Details)
Related Party (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Accounts Payable—Related Party | $ 2,196 | $ 2,196 | $ 1,666 | ||
CONSOL Energy | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | 1,604 | $ 2,460 | 3,193 | $ 4,841 | |
Accounts Payable—Related Party | 2,196 | 2,196 | $ 1,666 | ||
CONSOL Energy | Operating and Other Costs | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | 867 | 1,270 | 1,739 | 2,536 | |
CONSOL Energy | Selling, General and Administrative Expenses | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | $ 737 | $ 1,190 | $ 1,454 | $ 2,305 |
Long-Term Incentive Plan (Detai
Long-Term Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 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) | (16,766) | ||
Nonvested at September 30, 2016 (in shares) | 606,225 | 606,225 | |
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) | 13.21 | ||
Nonvested at September 30, 2016 (in dollars per share) | $ 10.20 | $ 10.20 | |
Common Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under LTIP (in shares) | 2,300,000 | 2,300,000 | |
Common Units | Phantom Share Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unearned compensation | $ 7,226 | $ 7,226 | |
Unearned compensation expense amortization period | 2 years 3 months 16 days | ||
Common Units | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization expense due to vesting | $ 840 | $ 1,707 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 15, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common Units | ||||||
Subsequent Event [Line Items] | ||||||
Cash Distributions Declared per Unit (in dollars per share) | [1] | $ 0.5125 | $ 0.5125 | $ 1.025 | $ 1.0250 | |
Subordinated Units | ||||||
Subsequent Event [Line Items] | ||||||
Cash Distributions Declared per Unit (in dollars per share) | [1] | $ 0.5125 | $ 0 | $ 1.025 | $ 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 | |||||
[1] | Represents the cash distributions declared related to the period presented. See Note 14 - Subsequent Events. |